E-Z-GO 2008 Annual Report Download - page 4

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Moving to the second goal, we plan to exit the majority of
our Textron Financial business with the exception of those
businesses that provide fi nancing for customers of Textron’s
manufactured products. Announced in late 2008, this move
should signifi cantly improve our long-term liquidity position.
Supporting a strong future growth picture
While we can’t control short-term demand in today’s economic
environment, we have a strong outlook for our core businesses.
We expect that, combined, Cessna, Bell and Textron Systems
will generate about 80 percent of our revenues at double-digit
margins with strong cash fl ow in 2009 – even in the midst of
this challenging economy. In addition, our defense business,
which accounted for 24 percent of total revenues in 2008,
should continue to drive near- and long-term performance
since it is less susceptible to the current economic volatility.
And after the world economies recover, this growth will be
augmented by expansion at Cessna, as well as in the remain-
der of our other commercial businesses.
As we focus on maximizing cash fl ow in our operations, we
intend to preserve investment in the development of critical
products and key talent to support growth when the economy
recovers. We know the future depends on providing our cus-
tomers with the products they need and want. This long-term
strategy served us well during the last economic downturn,
and we emerged with a strong competitive edge.
On the talent development front, I’m pleased to report that
Bersin & Associates, a leading research and advisory fi rm,
recognized our efforts in this area, presenting Textron with two
top Learning Leaders awards in 2008 for our Growth Leader-
ship and Operational Material Excellence programs. We know
outstanding leadership and talent are crucial to future success,
and we remain true to that commitment.
Also during 2008, we welcomed an exceptional leader, Scott
Donnelly, who joined Textron as executive vice president and
chief operating offi cer. Scott is a 19-year veteran of GE, where
he most recently served as president and CEO of GE Aviation
as well as a member of the Board of GE Capital. He has moved
confi dently to begin strengthening the underlying performance
of our manufacturing operations, and he brings vast multi-
industry expertise to our engineering, Six Sigma, global
sourcing, fi nance and information technology functions. Scott’s
promotion to president and chief operating offi cer in January
of 2009 is testimony to the positive impact he already is
making at our company.
2
(Dollars in millions, except per share data) 2008 2007
Operating results
Revenues $ 14,246 $ 12,615
Segment profi t(1) $ 1,479 $ 1,595
Segment profi t margin 10.4% 12.6%
Income from continuing operations $ 344 $ 879
Net cash provided by operating
activities of continuing operations
for Manufacturing group $ 416 $ 1,154
Free cash fl ow(2) $ (117) $ 785
ROIC(3) 17.7% 24.8%
Common share data
Diluted earnings per share from
continuing operations $ 1.38 $ 3.45
Dividends per share $ 0.92 $ 0.85
Footnotes to this table are on page 10.
Financial Highlights
WE KNOW OUTSTANDING
LEADERSHIP AND TALENT ARE
CRUCIAL TO FUTURE SUCCESS.
The addition of
Scott Donnelly
augments Textron’s
strong leadership
team and exemplifi es
Textron’s commitment
to top talent.