E-Z-GO 2011 Annual Report Download - page 4

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SCOTT C. DONNELLY
Chairman and Chief Executive Officer
3
1,2 Manufacturing cash flow before pension contributions and net debt are non-GAAP measures.
See page 10 for reconciliation to GAAP.
Our Captive Finance business reached a key performance milestone in 2011, posting its best results since 2008. During
the year, Captive Finance supported the sale of over $330 million of Textron manufactured products. This proved to be
a powerful competitive advantage for both Bell and Cessna, especially in international markets. More than 70 percent
of Captive Finance’s aviation loan originations were for customers outside the U.S. At the same time, we made great
strides in downsizing our Non-Captive Finance business—achieving $1.3 billion of liquidations in 2011. This brings the
Non-Captive portfolio to $950 million—an 87 percent decline since liquidations began in late 2008. This and other
debt-reduction actions had a positive impact on Textron’s consolidated net debt2 which dropped to $3.5 billion, a
decrease of $1.5 billion for the year.
INVESTING IN INNOVATION AND GLOBAL SERVICE CAPABILITIES
Bringing new products to market and getting our teams closer to the customer were priorities for our businesses
throughout the year. Innovation has always been one of Textron’s differentiating strengths, even when faced
with a difficult economic climate. In 2011, this inventiveness came to life with new business jets, helicopters,
unmanned vehicles, and a spectrum of new utility vehicles, turf-care equipment, tools and services. Every Textron
business segment invested in the future and launched new products. Many additional concepts entered our
research and development cycle in 2011—in fact, our total R&D investment grew by 30 percent for
the year, reflecting confidence in our future growth prospects.
We also took steps to further our reach across the globe in 2011. For example, Bell and Cessna aggressively grew
their in-country sales teams and invested in new service centers in locations like the Czech Republic, Singapore
and Spain. In addition, those businesses added sales and distribution partners in China—essential tactics to
thrive in what may evolve into a vast market for general aviation. Likewise, our Greenlee tools business acquired
a majority interest in a Chinese tool company that is already surpassing our sales expectations. To meet growing
global demand for its automotive fuel systems, Kautex announced plans to build new plants in Asia, Europe and
North America. Our defense businesses also saw increased foreign military sales, as U.S. allies reinforced their
programs with specialized vehicles, aircraft and surveillance technologies.
BUILDING UPON OUR CORE STRENGTHS
Textron’s results for 2011 demonstrate solid execution of our business strategies—and we have tremendous
strength to build upon in 2012. Our progress would not be possible without the support of our customers,
shareholders and employees. We thank you for your loyalty and confidence. As we look ahead, we see excellent
prospects to grow the business and we look forward to reporting on our shared success.
Sincerely,