E-Z-GO 2008 Annual Report Download - page 15

2
Item 1. Business
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 approximately 90%. 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 an advance purchase jet aircraft charter product called the Vector Jetcard.
Bell Segment
Bell Helicopter is one of the leading suppliers of helicopters, tiltrotor aircraft, and helicopter-related spare parts and services in the world. Bell
manufactures for both military and commercial applications. Revenues for Bell accounted for approximately 20%, 20% and 21% of our total
revenues in 2008, 2007 and 2006, respectively.
Bell supplies advanced military helicopters and support to the U.S. Government and to military customers outside the U.S. Bell is one of the
leading suppliers of helicopters to the U.S. Government and, in association with The Boeing Company, the only supplier of military tiltrotor
aircraft. Bell’s major U.S. Government programs are the V-22 tiltrotor aircraft and the H-1 helicopters.
Bell is teamed with The Boeing Company to develop, produce and support the V-22 Osprey tiltrotor aircraft for the U.S. Department of Defense.
Tiltrotor aircraft are designed to provide the benefits of both helicopters and fixed-wing aircraft. The U.S. Government has issued contracts for 285
production V-22 aircraft through production Lot 16, of which 98 have been delivered as of the end of 2008. The U.S. Government’s program of
record for the V-22 calls for a total of 458 production units.
The U.S. Marine Corps H-1 helicopter program includes a utility model and an advanced attack model, the UH-1Y and the AH-1Z, respectively,
both of which were designed to have 84% parts commonality between them. Through production Lot 5, the U.S. Government has contracted for
the production of 37 UH-1Y aircraft and 12 AH-1Z aircraft. We have delivered a combined total of 22 of these aircraft as of the end of 2008. In
August 2008, the UH-1Y was approved for full-rate production, and the AH-1Z was extended for limited production, pending a Phase III
Operational Evaluation in 2010. The U.S. Government’s program of record for the H-1 program calls for a total of 280 production units, 100 of
which are utility models, and 180 of which are attack models.
Bell also is a leading supplier of commercially certified helicopters and support to corporate, offshore petroleum exploration and development,
utility, and charter, police, fire, rescue and emergency medical helicopter operators. Bell produces a variety of commercial aircraft types, including
light single- and twin-engine helicopters and medium twin-engine helicopters, along with other related products. The commercial helicopters
currently offered by Bell include the 206, 407 and 412; in addition, the 429 is expected to be certified in 2009.
Bell’s Customer Support and Service division provides post-sale service and support to its customers for its installed base of approximately
13,000 helicopters and tiltrotors through a network of four Bell-owned service centers, more than 140 independent service centers and six parts
distribution centers that are located throughout the world. Collectively, these service centers offer logistics support, including parts, support
equipment, technical data, training devices, pilot and maintenance training, component repairs, engine repair and overhaul, aircraft modifications,
post-sale customizing, accessory manufacturing, contractor maintenance, field service and product support engineering.
Bell competes against a number of competitors based in the U.S. and other countries for its helicopter business, and its parts and support
business competes against numerous competitors around the world. Competition is based primarily on price, product quality and reliability,
product support, contract performance and reputation.
Textron Systems Segment
Textron Systems is a primary supplier to the defense, aerospace and general aviation markets, providing approximately 15%, 11% and 10%
of Textron’s revenues in 2008, 2007 and 2006, respectively. This segment’s principal strategy is to address the U.S. Department of Defense’s
emphasis on precision engagement and network-centric warfare by leveraging advances in information technology in the development and
production of networked sensors, weapons and the associated algorithms and software. Textron Systems manufactures unmanned systems,
precision weapons, airborne and ground-based surveillance systems, sophisticated intelligence and situational awareness software, armored
vehicles and turrets, reciprocating piston aircraft engines, and aircraft and missile control actuators, valves and related components. While
this segment sells most of its products to U.S. customers, it also sells certain products to customers outside the U.S. through sales