E-Z-GO 2007 Annual Report Download - page 36

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15
Item 7. Management’s Discussion and Analysis of Financial Condition and
Results of Operations
Business Overview
2007 was an exceptional year in many respects. We experienced strong sales and organic growth, particularly in our aerospace and defense
businesses. Cessna set a new record with 773 jet orders, while demand for commercial helicopters remained strong with Bell Helicopter
recording 268 orders. Our aircraft and defense backlog increased to $18.8 billion, up 45% from a year ago.
We strategically acquired businesses to complement our core growth areas, the most signifi cant of which was the acquisition of United Industrial
Corporation (“UIC”). UIC, operating through its wholly owned subsidiary, AAI Corporation (“AAI”), is a leading provider of intelligent aerospace
and defense systems, including unmanned aircraft and ground control stations, aircraft and satellite test equipment, training systems and
countersniper devices. In addition to AAI, we acquired certain assets of CAV-Air LLC, a helicopter maintenance and service center; Columbia
Aircraft Manufacturing Corporation, which produces high-performance, single engine aircraft; and Paladin Tools, a provider of tools and
accessories for the telecommunications industry. We paid approximately $1.1 billion in cash for these four acquisitions.
We also made considerable investments in innovation, new product development and capacity expansion across our businesses, including the
continued development of our commercial aircraft product offerings, with the Bell Model 429 and the Cessna CJ4.
In our Finance segment, we generated signifi cant growth in our managed fi nance receivables, while portfolio quality statistics remained relatively stable.
In July, our Board of Directors approved a two-for-one stock split of our common stock and increased our annual dividend by 19% to $0.92 per
share. We have continued to repurchase our common stock, spending $295 million in 2007 to acquire approximately 6 million shares. With a
30% increase in income from continuing operations during 2007 and these share repurchases, our diluted earnings per share from continuing
operations increased 32% to $3.59 per share.
Textron Inc.
$14.0 $2,000
$10.5 $1,500
$07.0
$03.5 $ 500
$1,000
Revenues Segment
Profit
$10.0
$11.5
$13.2
2005 2006 2007
$1,146
$1,267
$1,640
2005 2006 2007
$4.00
$3.00
$1.00
$2.00
Earnings
per Share*
$1.89
$2.71
$3.59
2005 2006 2007
(In billions) (In millions)
* Diluted earnings per share are for continuing operations only.