E-Z-GO 2007 Annual Report Download - page 24

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Textron Inc.
The Cessna Caravan is the world’s best selling utility turboprop. Caravans are offered in four models: the Grand Caravan, the Super Cargomaster,
the Caravan 675 and the Caravan Amphibian. Caravans are used in the U.S. primarily for overnight express package shipments and for personal
transportation. International uses of Caravans include humanitarian fl ights, tourism and freight transport.
Cessna offers 10 models in its single engine piston product line, which include the four-place Skyhawk, Skyhawk SP, Skyhawk TD, Skylane,
Turbo Skylane, Cessna 350, Cessna 400, six-place Stationair, Turbo Stationair, and the recently announced two-place Light Sport Aircraft, the
Model 162 SkyCatcher. First customer deliveries of the SkyCatcher are scheduled to commence in late 2009. In December 2007, Cessna
purchased certain assets of Columbia Aircraft Manufacturing Corporation, a producer of high-performance single engine aircraft, including two
low-wing, composite four-place aircraft, which now are branded as the Cessna 350 and Cessna 400. Cessna also recently announced its plan to
develop the Citation Columbus, a wide-body, eight-passenger business jet designed for intercontinental travel. Cessna is targeting Federal
Aviation Administration certifi cation by the end of 2013, with deliveries beginning in 2014.
The Citation family of aircraft currently is supported by 10 Citation Service Centers owned or operated by Cessna, along with authorized
independent service stations and centers located in more than 18 countries throughout the world. The Wichita Citation Service Center is the
world’s largest general aviation maintenance facility. Cessna-owned Service Centers provide customers with 24-hour service and maintenance.
Cessna also provides around-the-clock parts support for Citation aircraft. Cessna Caravan and single engine piston customers receive product
support through independently owned service stations and around-the-clock parts support through Cessna.
Cessna markets its products worldwide primarily through its own sales force, as well as through a network of authorized independent sales
representatives, depending upon the product line. Cessna has several competitors in various market segments. Cessna’s aircraft compete with
other aircraft that vary in size, speed, range, capacity, handling characteristics and price. Cessna operates a business jet fractional ownership
business through a joint venture called CitationShares. Cessna’s current ownership interest in CitationShares is 88%. This business offers
shares of Citation aircraft for operation throughout the contiguous U.S. and in Canada, Mexico, Central America, the Caribbean and Bermuda.
CitationShares also has a limited advance purchase jet aircraft charter product called the Vector Jetcard.
Industrial Segment
The Industrial segment includes our Kautex, Fluid & Power, Greenlee, E-Z-GO and Jacobsen businesses.
Kautex, headquartered in Bonn, Germany, is a leading global designer and manufacturer of blow-molded fuel systems and other blow-molded
parts for automobile original equipment manufacturers and, to a lesser extent, other industrial customers. Revenues of Kautex accounted for
approximately 13%, 13% and 15% of our total revenues in 2007, 2006 and 2005, respectively. Kautex operates plants near its major customers
all around the world. Kautex also is a leading supplier of windshield and headlamp washer systems in the original equipment automobile market.
In North America, Kautex produces metal fuel fi llers and engine camshafts for the automotive market. In Europe, Kautex produces bottles and
plastic containers for food, household, laboratory and industrial uses. Kautex also manufactures blow-molded fuel systems for the all-terrain
vehicle and watercraft markets and tanks for selective catalytic reduction systems used to reduce emissions from diesel engines. In 2007, Kautex
announced that it has received the fi rst production order for fuel systems using its new next generation fuel system manufacturing process, which
is designed to reduce emissions from fuel systems and lower manufacturing costs. Kautex has a number of competitors worldwide, some of
whom are owned by the automotive original equipment manufacturers that comprise Kautex’s targeted customer base. Competition typically is
based on a number of factors, including price, product quality and reliability, prior experience and available manufacturing capacity.
Fluid & Power designs and manufactures four product lines: Gear Technologies, Industrial Pumps, Polymer Systems and Hydraulics. Gear
Technologies includes industrial gears, mechanical transmission systems, worm gear speed reducers, screwjacks, gear motors and gear sets
under the David Brown, Benzlers, Cone Drive and Radicon brand names, primarily for the defense, industrial and mining industries. Industrial
Pumps includes centrifugal and reciprocating pumps for the oil, gas, petrochemical, nuclear and desalinization industries under the Union
brands. Polymer Systems includes industrial pumps, extrusion equipment and screen changers for the polymer industry under the Maag brand
name. Hydraulics includes hydraulic pumps, valves, pilot controls and power takeoffs under the David Brown, Hydreco and Powauto brands.
These products are sold to a variety of customers, including original equipment manufacturers, engineering contractors, governments,
distributors and end users. Fluid & Power faces competition from other manufacturers based primarily on price, product quality and reliability,
and product support.