E-Z-GO 2011 Annual Report Download - page 35

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Cessna’s segment profit decreased $227 million, 115%, in 2010, compared with 2009, due to the $253 million impact from lower
volume, a nonrecurring $50 million gain on the 2009 sale of CESCOM assets and $19 million of inflation, net of higher pricing,
partially offset by improved performance of $95 million. The improved performance included the following contributing factors:
$57 million in lower engineering, selling and administrative expenses;
$48 million in lower inventory reserves and pre-owned aircraft write-downs; and
$19 million in lower tooling costs; partially offset by
$49 million in lower deposit forfeiture income due to fewer order cancellations in 2010.
Cessna Backlog
Cessna’s backlog decreased $1.0 billion, 35%, in 2011 and $2.0 billion, 40%, in 2010, mainly attributable to deliveries in excess of
new orders and canceled Citation jet orders.
Bell
% Change
(Dollars in millions)
2011
2010
2009
2011
2010
Revenues:
V-22 program
$ 1,380
$ 1,155
$ 925
19%
25%
Other military
919
845
722
9%
17%
Commercial
1,226
1,241
1,195
(1)%
4%
Total revenues
3,525
3,241
2,842
9%
14%
Operating expenses
3,004
2,814
2,538
7%
11%
Segment profit
521
427
304
22%
40%
Profit margin
15%
13%
11%
Backlog
$ 7,346
$ 6,473
$ 6,192
13%
5%
Bell manufactures helicopters, tiltrotor aircraft, and related spare parts and provides services for military and/or commercial
markets. Bell’s major U.S. Government programs at this time are the V-22 tiltrotor aircraft and the H-1 helicopters, which are both
in the production stage and represent a significant portion of Bell’s revenues from the U.S. Government. During 2011, we have
continued to ramp up production and deliveries to meet customer schedule requirements for these programs.
Bell Revenues and Operating Expenses
Factors contributing to the 2011 year-over-year revenue change are provided below:
(In millions)
2011 versus
2010
Volume
$ 258
Other
26
Total change
$ 284
Bell’s revenues increased $284 million, 9%, in 2011, compared with 2010, primarily due to higher volume, which included the
following factors:
$225 million increase in volume related to the V-22 program, primarily reflecting higher deliveries. Bell delivered 34 V-
22 aircraft in 2011, compared with 26 deliveries in 2010;
$74 million increase in other military volume, primarily reflecting higher H-1 deliveries, with 25 H-1 aircraft delivered in
2011, compared with 18 aircraft in 2010; this increase is net of a $55 million decrease in aftermarket volume, largely due
to the completion of several non-recurring programs in 2010; and a
$41 million decrease in commercial volume, primarily reflecting lower deliveries. Bell delivered 125 commercial aircraft
in 2011, compared with 131 aircraft in 2010.
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24 Textron Inc. Annual Report • 2011