E-Z-GO 2011 Annual Report Download - page 30

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Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations
(Dollars in millions, except per share amounts)
2011
2010
2009
Revenues
$ 11,275
$ 10,525
$ 10,500
Operating expenses:
Manufacturing cost of sales
9,308
8,605
8,468
Selling and administrative expenses
1,183
1,231
1,338
Net cash provided by operating activities of continuing operations for Manufacturing
group
761
730
738
Diluted earnings per share (EPS) from continuing operations
0.79
0.30
(0.28)
2011 was a solid year for Textron with revenue and segment profit growth of 7% and an increase in diluted EPS from continuing
operations of 163%. Volume increased in most of our businesses, led by higher revenues at Cessna and military sales at Bell.
During 2011, we continued to emphasize product development to position our businesses for future growth, which was evident
from a 30% increase in our company-funded research and development expenditures. An analysis of our consolidated operating
results is provided below and a more detailed analysis of our segments’ operating results is provided in the Segment Analysis
section on pages 22 to 31.
Revenues
(Dollars in millions)
2011
2010
2009
Revenues
$ 11,275
$ 10,525
$ 10,500
% change compared with prior period
7%
— %
Revenues increased $750 million, 7%, in 2011, compared with 2010, primarily due to an 8% increase in Manufacturing revenues
with increases in the Cessna, Bell, and Industrial segments that were partially offset by lower revenues in the Textron Systems
segment. The net revenue increase included the following factors:
Higher Cessna revenues of $427 million, primarily due to higher volume, largely due to the impact of higher Citation jet
volume and the mix of light- and mid-size jets sold during the period;
Higher Bell revenues of $284 million, largely due to higher volume in our military programs, which included more
deliveries of V-22 and H-1 aircraft; and
Increased Industrial segment revenues of $261 million, primarily due to higher volume of $138 million, mostly reflecting
higher automotive industry demand, and a favorable foreign exchange impact of $77 million, largely related to
strengthening of the euro; partially offset by
Lower revenues at the Finance segment of $115 million, primarily attributable to the lower average finance receivable
portfolio balance resulting from continued liquidation; and
Lower Textron Systems revenues of $107 million, primarily due to $140 million in lower volume in the UAS and Mission
Support and Other product lines, partially offset by higher volume in the Land & Marine and Weapons and Sensors
product lines of $28 million.
Revenues increased $25 million in 2010, compared with 2009. This increase was due to significant revenue increases in the
Industrial, Bell and Textron Systems segments that were largely offset by lower revenues in the Cessna and Finance segments.
The net revenue increase included the following factors:
Higher revenues of $446 million in the Industrial segment, largely due to higher volume reflecting improvements in the
automotive industry;
Higher Bell revenues of $399 million, primarily due to higher V-22 and H-1 volume and improved pricing in its
commercial business; and
Increased Textron Systems’ revenues of $80 million, primarily due to higher UAS volume; partially offset by
Lower revenues at Cessna of $757 million, primarily due to lower Citation jet volume; and
Reduced Finance segment revenues of $143 million, largely due to lower average finance receivables resulting from the
continued liquidation.
19
Textron Inc. Annual Report • 2011 19