E-Z-GO 2009 Annual Report Download - page 11

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Item 1. Business
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 286
production V-22 aircraft through production Lot 16, of which 116 have been delivered as of the end of 2009. 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 6, the U.S. Government has contracted for
the production of 52 UH-1Y aircraft and 17 AH-1Z aircraft. We have delivered a combined total of 31 of these aircraft as of the end of 2009. 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 349 production units, 123 of
which are utility models and 226 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, 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, 412 and 429.
Bell’s Customer Support and Service division provides post-sale service and support for its installed base of approximately 13,000 helicopters
through a network of five Bell-owned service centers, more than 125 independent service centers and six supply centers that are located
worldwide. Collectively, these service centers offer a complete range of logistics support, including parts, support equipment, technical data,
training devices, pilot and maintenance training, component repair and overhaul, engine repair and overhaul, aircraft modifications, aircraft
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 18%, 13% and 9% of
Textron’s revenues in 2009, 2008 and 2007, respectively. This segment’s principal focus is to address the U.S. Department of Defense’s current
and emerging needs for force protection; situational awareness, including Intelligence, Surveillance, Reconnaissance (ISR); precision weapons;
and related services and support. While this segment sells most of its products to U.S. customers, it also increasingly sells products to customers
outside the U.S. through foreign military sales sponsored by the U.S. government and directly through commercial sales channels. Textron
Systems competes on the basis of technology, contract performance, price, product quality and reliability, product support and reputation. The
Textron Systems segment is comprised of five operating units: AAI, Textron Marine & Land Systems (TMLS), Textron Defense Systems, Lycoming
and Overwatch.
AAI is the prime system integrator for the U.S. Army’s premier tactical Unmanned Aircraft System (UAS), the Shadow®, which includes the One
System® Ground Control Station — the U.S. Army’s standard for interoperability of manned and unmanned airborne assets. AAI also provides
training and simulation systems, automated aircraft test and maintenance equipment, armament systems, countersniper detection systems, and
logistical, engineering and supply chain services.
TMLS is a world leader in the design, production and support of advanced marine craft, armored combat vehicles, turrets and related subsystems.
The business currently produces the Armored Security Vehicle and variants for the U.S. Army and international allies. In the marine market, TMLS
has designed and produced the U.S. Navy’s Landing Craft, Air Cushion and the U.S. Coast Guard’s Motor Life Boat (MLB) and now is delivering
MLBs to the Mexican Navy.