E-Z-GO 2008 Annual Report Download - page 7

to apply the latest modifi cations. The U.S. Army also is explor-
ing future uses for the ASV beyond its current role for military
police, and allied forces have shown interest as well. Current
U.S. government funding levels for both the Shadow and the
ASV are expected to carry their production well into 2010.
With a new U.S. president and changes in the U.S. Congress,
no one can fully predict the long-term direction of defense
spending. But we are confi dent that our platforms and systems
are the right ones for the current global security climate, as
they are designed to protect soldiers, increase their mobility
and advance the gathering of critical intelligence. We continue
to keep an eye on the future to ensure we have the most
innovative systems and solutions for the defense, homeland
security and aerospace communities.
In addition, our products are beginning to attract business from
foreign military sources. In fact, we expect to generate more
than $1 billion in foreign military orders for a variety of prod-
ucts during the year, which is fi ve times what we generated in
2008. This should contribute to growth in 2010 and beyond.
Industrial:
Posting double-digit revenue gains at E-Z-GO amidst
overall slowdown in the industrial segment
During 2008, we closed on the sale of Textron Fluid & Power,
further aligning our portfolio of businesses to best support
Textron’s approach to long-term value growth. The deteriorat-
ing economic climate in the second half of the year posed
challenges across our remaining industrial companies.
On the positive side, E-Z-GO enjoyed nearly 14 percent revenue
growth in 2008, thanks largely to the popularity of the RXV
golf car. The RXV clearly demonstrates the importance of new
product development. E-Z-GO also received recognition from
IndustryWeek magazine in 2008 for operating one of the top 20
plants in North America.
The down economy negatively impacted Jacobsen revenues in
2008, and while Greenlee full-year revenues were up, it grappled
with a steep global slowdown in commercial construction. As
worldwide automotive sales declined, Kautex began reducing its
footprint and costs while continuing to focus on critical product
development. Of particular note, in 2009, two global auto manu-
facturers are scheduled to launch car models using Kautex’s next
generation fuel system technology.
Looking ahead
2008 was an unprecedented year in so many ways, culminat-
ing in a worldwide fi nancial crisis that will certainly make
the history books. But shareholders, employees and other
Textron stakeholders can feel confi dent that we are tak-
ing the right steps to optimize our cash fl ow and earnings
through this down cycle even as we lay the foundation for
long-term growth. I want to thank Textron’s employees and
Board of Directors for the dedication they’ve shown during this
tumultuous time. With their talent, focus and determination, I
am confi dent we will emerge from this crisis lean, strong and
well-positioned in each of our markets. In turn, it is my hope
and expectation that our investors will again recognize the full
value and potential of Textron.
Lewis B. Campbell
Chairman and Chief Executive Offi cer
5
Right: In Iraq
and elsewhere,
the Bell-Boeing
V-22 Osprey has
exceeded military
pilot expectations
for versatility and
performance.
Left: The E-Z-GO
RXV set a new
standard in the
golf industry
for reliability,
customer
experience and
value.
OUR BUSINESSES ARE KNOWN FOR
INNOVATIVE PRODUCTS THAT
EXCEED CUSTOMER EXPECTATIONS.