E-Z-GO 2009 Annual Report Download - page 2

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2009 was a challenging year for Textron. With the global
recession impacting market demand and our production
volumes – particularly at Cessna and our industrial
businesses – the focus has been to increase operational
effi ciency, improve working capital and generate cash. On
the defense side of our business, the focus was to expand
our capacity to meet increasing customer demand. In
our Finance segment, we began exiting our non-captive
fi nance business. Additionally, we took signifi cant steps to
improve our capital structure and liquidity position.
In response to the reductions in demand, we were faced
with some very diffi cult, but necessary actions. These
actions resulted in a workforce reduction of approximately
10,400 employees and the closing of 23 facilities.
Also throughout our manufacturing businesses, we
instituted working capital improvement programs aimed
at increasing operational effi ciencies and generating
cash. These programs helped to reduce our inventory by
$820 million in 2009. I am confi dent these operational
effi ciencies and the cost structure we’ve put into place will
improve our competitiveness and ability to capitalize on
a recovery in our markets.
Demonstrating the value of our balanced portfolio,
Textron’s defense businesses remained strong. Our ability
to ramp up and deliver high-quality, advanced-technology
products on or ahead of schedule for this sector provided
a solid foundation for the year – with our defense revenues
increasing by $149 million over 2008.
Wrapping up our manufacturing performance for the
year, despite total revenues for this group being down 24
percent from 2008, we ended 2009 with a segment profi t
for the group of $769 million. We also exceeded our 2009
manufacturing free cash fl ow1 target of $300 million to
$400 million – ending the year at $424 million.
In our Finance segment, we achieved the orderly
liquidation of $3.8 billion of managed fi nance receivables
more than 500 aircraft to fewer than 300
planes shipped in 2009 forced us to
take a close look at all aspects of how
we think, how we operate, how we
move forward.”
Jack J. Pelton,
Cessna Chairman, President and CEO
“ With signifi cant operational improve-
executing product ramp-ups and
growing our balanced business of
military and commercial aircraft
sales and support.”
John L. Garrison Jr.,
Bell Helicopter President and CEO
O
Pictured below:
Scott C. Donnelly
assumed the role of
Textron President and
Chief Executive Offi cer
in December of 2009.
Pictured left to right on page 1:
John D. Butler, Executive
Vice President Administration
and Chief Human Resources
Offi cer; Frank T. Connor,
Executive Vice President
and Chief Financial Offi cer;
Terrence O’Donnell, Executive
Vice President, General
Counsel, Corporate Secretary
and Chief Compliance Offi cer.
Textron 2009:
ur Fellow Shareholders, Employees and Customers: