E-Z-GO 2008 Annual Report Download - page 3

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Lewis B. Campbell,
Chairman and
Chief Executive
Offi cer
1
We posted strong revenues in 2008, bolstered by record jet
deliveries at Cessna and strong execution at Bell Helicopter
and Textron Systems. Unfortunately, the worldwide fi nancial
upheaval that hit late in the year altered the global economic
landscape and eclipsed these successes. Businesses of every
size and scope, across all industries, have felt the immense
impact of the economic crisis, and Textron is no exception.
While 2008 Textron revenues rose 13 percent over 2007 to
$14.2 billion, orders at Cessna and our Industrial businesses
dropped signifi cantly in the fi nal quarter. Further, Textron
Financial Corporation (TFC) experienced a signifi cant loss for
the year as a result of the disruption and volatility in the
capital markets. Our Bell Helicopter and Textron Systems
businesses provided some shelter from the storm, however, as
we booked new or renewed military contracts totaling $5.8
billion during the year.
Within the context of this challenging economic environment,
our stock price declined dramatically in 2008, refl ecting the
impact of a recessionary market on our commercial manufac-
turing businesses and investor concern about our signifi cant
exposure to the credit markets through TFC.
Addressing challenges head-on
Navigating this unprecedented turmoil, we have taken decisive
action to address the new global economic reality with
swiftness and intensity, bringing to bear the resources of the
enterprise, the strength of our diverse business base and our
commitment to take a hard line in streamlining operations.
Our approach is squarely focused on two important goals:
maximize cash fl ow and operating performance in our manu-
facturing businesses and aggressively convert our fi nance
receivables to cash.
To attack the fi rst goal, we’re reducing capital spending and
overall working capital. Aligning with expected lower com-
mercial demand, we have dramatically reduced our production
plans at Cessna and Industrial and, to a lesser extent, in Bell’s
commercial business. We are scrutinizing all discretionary
spending, focusing on those critical activities that will support
our customers now and contribute to future competitiveness
and revenue growth when markets recover. We’ve also
introduced an enterprise-wide productivity improvement
plan, building on our existing Textron Six Sigma and Lean
manufacturing methodologies to optimize our performance
through this down cycle.
TO OUR SHAREHOLDERS, EMPLOYEES
AND CUSTOMERS: