E-Z-GO 2006 Annual Report Download - page 7

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(Dollars in millions, except per share data) 2006 2005
Operating Results
Revenues $ 11,490 $ 10,043
Segment profi t(1) $ 1,267 $ 1,146
Segment profit margin 11% 11%
Income from continuing operations $ 706 $ 516
Free cash fl ow(2) $ 691 $ 546
ROIC(3) 16.8% 13.2%
Common Share Data
Diluted EPS from continuing operations $ 5.43 $ 3.78
Dividends per share $ 1.55 $ 1.40
Footnotes to this table can be found on page 18.
Financial Highlights
5
in customer-focused aviation research and development. Going
forward, Cessna will continue to expand the fl eet, starting with
the Citation Mustang now and the CJ4 in 2010. In addition,
we’re evaluating other aircraft that will welcome an ever-wider
audience to the Cessna family.
Industrial Segment
Our diverse industrial segment made notable progress in 2006,
from products to opportunities to business relationships. This
year, Greenlee used Textron Six Sigma to increase revenues in
existing lines and develop more than 30 new products to be
introduced in 2007. E-Z-GO excelled at custom-fi tting specialty
products to unique customer needs and launched a factory
showroom with full sales and service capacity. Jacobsen estab-
lished a 10-year exclusive relationship as offi cial turf equipment
supplier to The PGA of America, and a similar agreement with
the PGA in Europe.
Industry-leading engineering provided meaningful competi-
tive advantage in fuel system evolution at Kautex, while strong
business relationships yielded signifi cant production contracts for
several plants in the United States and Brazil. Fluid & Power’s
fi nancial performance in 2006 refl ected their integration of TSS
processes at global facilities and an enthusiastic commitment to
growth through R&D.
In coming years, we will continue to expand our global manu-
facturing footprint. Jacobsen and E-Z-GO have long operated
international facilities, and in 2006, other businesses in this
segment also expanded signifi cantly outside North America.
Kautex established a third plant in China, a state-of-the-art facil-
ity in Guangzhou to handle regional demand, while its plant in
Brazil will manufacture fuel tanks for Toyota beginning in 2008.
Fluid & Power will expand the scope of their facility in China
to support sales in the U.S. and Europe in the future. Greenlee,
building on 2006’s success, expects to nearly double product
introductions by applying TSS to European operations and by
developing international sourcing partners.
Finance Segment
At year-end 2006, Textron Financial’s managed assets exceeded $10
billion. Segment profi t reached a record level – $210 million. This
growth was built upon thoughtful expansion and superior fi nancial
management, including relevant fi nance portfolio acquisitions and
exclusive dealer fi nance contracts. Our acquisition strategy at
Textron Financial echoed the enterprise portfolio strategy – we
acquired the assets of companies such as Electrolux Financial
Corporation’s inventory fi nance business, which share our quality
and service commitment while providing a channel to enter related,
profi table industries. We also selected well-run partners in viable
industries and built mutually benefi cial relationships with them.
Using effi cient TSS methods, Textron Financial will continue
to tap into complementary markets and adjacent geographies to
ensure growing value.
40,000 Reasons for Optimism
Refl ecting on the enthusiastic reception to our products and valu-
able contracts won during 2006, I believe we all have reason to be
optimistic about our prospects for 2007 and beyond.
That said, ours is a journey that will never truly end. The world
and our customers will continue to change rapidly – and will
require us to make a stronger, more integrated effort than ever
before. Textron’s ability to anticipate and manage these changes
will demonstrate the true power of our networked enterprise to
create enduring value.
An exceptionally well-informed and active Board of Directors, a
deeply committed management team, industry-leading custom-
ers and truly dedicated employees around the globe have helped
to transform Textron over these past six years. I thank each of
you for your contributions.
It’s been said that a journey of a thousand miles begins with a
single step. In our case, the passion, enthusiasm and sheer talent
of our 40,000 employees has already enabled signifi cant strides
on a journey that knows no bounds.
Thank you for your continued support.
Sincerely,
Lewis B. Campbell
Chairman, President and Chief Executive Offi cer
Certifi ed Six Sigma Green Belt