E-Z-GO 2011 Annual Report Download - page 39

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Textron Systems Backlog
In 2011, Textron Systems backlog decreased $261 million, 16%, primarily due to deliveries in excess of new orders related to
various military programs.
Industrial
% Change
(Dollars in millions)
2011
2010
2009
2011
2010
Revenues:
Fuel Systems and Functional Components
$ 1,823
$ 1,640
$ 1,287
11%
27%
Other Industrial
962
884
791
9%
12%
Total revenues
2,785
2,524
2,078
10%
21%
Operating expenses
2,583
2,362
2,051
9%
15%
Segment profit
202
162
27
25%
500%
Profit margin
7%
6%
1%
Industrial Revenues and Operating Expenses
Factors contributing to the 2011 year-over-year revenue change are provided below:
(In millions)
2011 versus
2010
Volume and mix
$ 138
Foreign exchange
77
Acquisitions, net of dispositions
18
Other
28
Total change
$ 261
Industrial segment sales increased $261 million, 10%, in 2011 from 2010. Volume increased and mix improved largely due to a
$117 million increase in the Fuel Systems and Functional Components product line, reflecting higher automotive industry demand,
and $21 million in the Other Industrial product lines, largely related to the Powered Tools, Testing and Measurement Equipment
product line reflecting higher sales in North America and Europe. The favorable foreign exchange impact was primarily related to
strengthening of the euro, which mostly impacted the Fuel Systems and Functional Components product line. Higher Other
Industrial revenues of $78 million included a $27 million impact from acquisitions and improved pricing of $20 million, in
addition to the higher volume.
Operating expenses for the Industrial segment increased $221 million, 9%, in 2011, compared with 2010, primarily due to a $115
million increase in direct material costs due to higher sales volume, a $68 million impact from foreign exchange related to
strengthening of the euro, and $40 million in inflation for direct materials related to various commodity and material components
throughout the segment.
Factors contributing to the 2010 year-over-year revenue change are provided below:
(In millions)
2010 versus
2009
Volume
$ 473
Foreign exchange
(34)
Other
7
Total change
$ 446
Industrial segment sales increased $446 million, 21%, in 2010 from 2009. Volume increased largely due to $387 million in the
Fuel Systems and Functional Components product line, reflecting improvements in the automotive industry, and $86 million in the
Other Industrial product lines. The unfavorable foreign exchange impact was primarily related to weakening of the euro.
The Industrial segment’s operating expenses increased $311 million, 15%, in 2010, compared with 2009, primarily due to higher
sales volumes and inflation, partially offset by improved cost performance, largely due to the significant efforts made in 2009 to
reduce costs through workforce reductions and other initiatives.
28
28 Textron Inc. Annual Report • 2011