E-Z-GO 2007 Annual Report Download - page 7

E-Z-GO also accelerated its journey to premier in 2007 by besting
previous internal production records. In fact, for the second straight
year, this business captured the top Textron Six Sigma (TSS) award
for leading the enterprise in TSS deployment. E-Z-GO’s Six Sigma
successes have been so impressive that they have served as a
model for other units across the company.
Kautex underscored its product and technology leadership in the
fuel tank business with its innovative next generation fuel system,
which is expected to accelerate revenue growth by the end of the
decade. Also, Kautex is expanding with its automotive customers
into China, India and other developing countries where automotive
production is growing.
Three years of double-digit percentage revenue growth refl ects
strong demand for Greenlee’s innovative professional tools. In
January 2007, Greenlee successfully launched a professional line
of hand tools in the United States and introduced metric versions of
these products in September for the Canadian markets.
The innovation also continued at Jacobsen, whose new Out-Front
Rotary Mower for the municipal market won Turf Professional
magazine’s fi rst place for new products in 2007. Rounding out our
Industrial segment, our Fluid & Power group of businesses contin-
ues to serve the high-growth energy and oil and gas industries. In
addition, in 2007 Maag Pump Systems introduced an innovative
pump for end users in the polymers production market that signifi -
cantly reduces material waste and downtime for cleaning.
Concentration on global expansion should generate positive
results for Cessna in the coming years, complementing a strong
North American base. With many emerging markets increasing in
affl uence, developing their infrastructures and opening up more
airspace, we expect growing demand for private jets to follow. In
fact, 53 percent of 2007 Citation orders came from outside the
United States.
A year-end backlog of $12.6 billion, with very few delivery slots
available until 2010, gives Cessna reason to look to the future
with a great deal of confi dence and optimism. Additionally, the
acquisition of certain assets of Columbia Aircraft Manufacturing
Corporation in December 2007 expands Cessna’s offerings into
the upper end of the piston product line. In January 2008, we
announced that we would move foward on the Citation Columbus,
our new long-range, large-cabin version of the Citation. This
addition to the world’s biggest fl eet of business jets will extend the
fl ight range of the Citation and add more comfort for our customers.
Industrial Businesses Focus on Innovation to Fuel
Profi tability and Top-Line Growth
Revenues of Textron’s industrial businesses reached $3.4 billion.
We’ve spent much of the past fi ve years targeting operational
improvements, and we are now keenly focused on expanding the
top line. Product innovation will lead the way.
In November, E-Z-GO introduced the E-Z-GO RXV, a signifi cant
advancement in golf car technology. Through reduced energy
and maintenance costs, it offers exceptional value to golf course
operators. E-Z-GO plans to apply this new technology to products
marketed directly to consumers as well.
(Dollars in millions, except per share data) 2007 2006
Operating Results
Revenues $ 13,225 $ 11,490
Segment profi t(1) $ 1,640 $ 1,267
Segment profi t margin 12.4% 11.0%
Income from continuing operations $ 915 $ 706
Net cash provided by operating activities of
continuing operations $ 1,186 $ 1,119
Free cash fl ow(2) $ 796 $ 691
ROIC(3) 24.8% 16.8%
Common Share Data *
Diluted EPS from continuing operations $ 3.59 $ 2.71
Dividends per share $ 0.85 $ 0.78
* 2006 Common Share Data are adjusted for the two-for-one stock split in 2007.
Additional footnotes to this table are on page 18.
Financial Highlights
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