E-Z-GO 2006 Annual Report Download - page 5

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3
We all have reason to be optimistic
about our prospects for 2007 and beyond.
tion to select acquisitions that complement our core businesses
and generate profi table growth.
At the outset of this letter, I highlighted the strong cash fl ow we
generated in 2006. It has allowed us to invest in ventures that
build Textron’s competitive position through customer-oriented
products, advanced technology and global expansion. Enterprise-
wide initiatives such as Textron Six Sigma, Talent Development
and Integrated Supply Chain continued to be critical in support-
ing Textron in these ventures.
In 2006, we trained more than 1,390 Textron Six Sigma (TSS)
Green Belts and 190 Black Belts, bringing the number of certi-
fi ed employees to 2,900 as of year end. TSS Lean is helping us
increase productivity while sharpening our businesses’ focus on
customer needs.
Talent Development is vital to maintaining a highly capable
workforce that anticipates and responds to customer needs.
Textron University helped us meet this high standard last year.
Over 4,800 employees participated in over 150,000 hours of
instructor-led classes, while nearly 25,000 people logged more
than 129,000 hours of online training hours during 2006. This
training offered employees critical skills and knowledge to help
us win in fi ercely competitive global markets.
Our Integrated Supply Chain teams were equally valuable in
helping us manage material costs and product availability more
effi ciently. We’re learning to leverage resources and expertise
while building and growing important customer relationships.
Today’s Achievements Built on Performance,
Tomorrow’s Growth Energized by Innovation
Bell Segment
In 2006, Bell delivered 16 V-22s, with sales from this program
anticipated to reach $1 billion annually by 2010. Bell Helicopter
saw continued strong demand for their products, with a year-end
$2.4 billion U.S. Government backlog. Demand for commercial
products also remains high with backlog growing to 260 units
worth over $600 million at the end of 2006.
To Our Shareholders, Employees and Customers:
2006 was a milestone year on Textron’s “journey to premier.” As I
refl ect on our many accomplishments, I’m proud of and humbled
by the tremendous efforts that have made our progress possible.
Since 2001, we’ve focused on transforming Textron into a net-
worked enterprise that shares talent and best practices among our
powerful brands. By doing so, we’ve been learning and evolving
at an accelerated pace. As we’ve transformed our business model
and culture, we’ve simultaneously made strategic divestitures and
complementary acquisitions to strengthen our portfolio.
Last year, our commitment to building and growing Textron
helped generate strong earnings per share from continuing
operations, which rose 44 percent to $5.43 based on 15 percent
organic revenue growth. Return on invested capital reached an
outstanding 16.8 percent. Meanwhile, manufacturing cash fl ows
from continuing operations reached $1.1 billion, with free cash
fl ow of $691 million.
Numerous factors contributed to our 2006 success, led by solid
performance at several key businesses. Cessna delivered over 300
jets for the third time in its history, indicative of the company’s
superior products and strong demand. Bell Helicopter delivered
160 commercial units in 2006, an increase of 30 percent over
2005. Textron Systems delivered over 470 Armored Security
Vehicles this year in a remarkable achievement after the devasta-
tion caused by Hurricane Katrina. Textron Financial Corporation
ended the year with a record $10 billion in managed fi nance
receivables. Greenlee also performed well, with more than a 12
percent increase in sales over 2005.
Transforming Textron: Building and Growing toward Premier
Since 2001, we have divested non-core manufacturing businesses
representing more than $4.5 billion in annual revenues. The sale
of Fastening Systems in August 2006 was a signifi cant step for-
ward with our value-enhancing strategy. Portfolio management
will remain a focus as we strive to ensure that our assets generate
the greatest possible long-term value for shareholders. Our 2006
purchase of two exciting companies – Overwatch Systems and
Innovative Survivability Technologies – demonstrates our inten-