E-Z-GO 2009 Annual Report Download - page 3

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1
–$1.2 billion above our original 2009 target – and realized
acash conversion ratio of 94 percent. As a result, we made
real progress toward this segment ultimately becoming one
dedicated to the fi nancing of Textron products.
Also, we executed our strategy to create a capital structure
appropriate for a manufacturing company with a modest
captive fi nance business. We issued $1.2 billion of public
debt and sold $250 million in Textron common stock.
The combination of these actions – together with our
manufacturing free cash fl ow and cash conversion of our
managed fi nance receivable liquidations – enabled us to
reduce our net debt2from $11.9 billion at the end of 2008
to $7.4 billion in 2009.
For our executive team, 2009 was also a year of transition
with a new CEO, a new CFO, and new business leaders at
Bell, Textron Financial, Textron Systems and our Industrial
segment. I would like to thank former CEO, Lewis
Campbell, and the Textron Board of Directors for all of
their insights and efforts toward shaping this company.
In a re
p
ort to Congress,
the
U
.
S
. Defense
Contract Mana
g
ement
A
gency recognized Bell,
ci
t
i
n
g i
ts
E
arne
d V
a
l
ue
M
anagement
S
ystem as
e
xem
p
lary manufacturing
e
fficiency at work.
“
I am extremely proud o
f
the hundreds
of committed Textron Financial
employees who were able to shi
f
t their
f
ocus from
p
ortfolio growth to cash
conversion. The results o
f
their e
ff
orts
f
ar sur
p
assed ex
p
ectations.
”
W
arren
R
.
Ly
ons
,
Textron Financial
C
orporation President and
C
E
O
A S
outhern
C
alifornia
Edison study reported
E-Z-GO’s RXV
g
olf car
i
s up to 39 percent more
e
ner
g
y efficient than
traditional electric
g
olf cars.
C
essna delivered the
275th
C
itation
S
overeign,
the 300th Citation X
and the first
S
k
y
catcher
.
“We deli
v
e
r
ed i
nn
o
v
a
t
i
v
e a
n
d
r
eliable
s
o
l
ut
i
ons t
h
at met our customers
’
requirements and continuously
i
m
p
roved our o
p
erations. All of our
o
perating units were responsive to their
p
art
i
cu
l
ar mar
k
ets an
d
execute
d
we
ll
.
”
F
rederick M. Strader, Textron S
y
stems
P
resident and
C
E
O
A
AI’s
S
hadow
U
nmanned Aircra
f
t
S
ystem
p
assed its
100
,
000th mission
fl
own
an
d h
as more t
h
an
4
70,000
fl
ight hours
–
mos
t
o
f th
e
m in
co
m
ba
t
theaters.
“
Managing through volume declines o
f
a
smuc
h
as 40
p
ercent
i
nsome
i
n
d
ustry
sectors meant
fi
nding sustainable ways
t
odrive out costs, im
p
rove manufacturing
e
ffi
cienc
y
and, at the same time, better
engage t
h
ecustomer.
”
J
. Scott Hall,
I
ndustrial
S
egment and
G
reenlee Presiden
t
HIGHLIGHTS
FROM 2
OO
9
Through the actions we took in 2009, I believe we enter
2010 a stronger company.
In the coming year, I look forward to executing a strategy
that leverages the reputation of our brands; leads to
long-term growth for our shareholders; creates career
opportunities for our employees; and ensures a valued
partner for our customers.
Sincerely,
Scott C. Donnelly
President and Chief Executive Offi cer
1,2 Free cash fl ow and net debt represent non-GAAP measures.
S
ee page 6 for reconciliations to GAAP
.