E-Z-GO 2014 Annual Report Download - page 25

Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations
Overview and Consolidated Results of Operations
Our revenues increased 15% in 2014 reflecting the success of our strategy of investing in new products and complementary
acquisitions. Several highlights of the year include the following:
x Invested $694 million in research and development activities demonstrating our continued commitment to expand our
current product lines across our businesses.
x Invested $1.6 billion in strategic acquisitions along with $429 million in capital expenditures.
x Delivered strong cash flow performance as manufacturing operating cash flows from continuing operations increased
67% to $1.1 billion.
x Grew segment profit by 26% to $1.2 billion.
x Raised diluted earnings per share from continuing operations by 23%.
On March 14, 2014, we completed the acquisition of Beech Holdings, LLC, which included Beechcraft Corporation and other
subsidiaries, (collectively “Beechcraft”); this business and the legacy Cessna segment were combined to form a new segment
named Textron Aviation. We also made seven acquisitions in the Industrial and Textron Systems segments, which complemented
our products and services. The results of these acquisitions are included in Textron’s consolidated financial statements only for the
period subsequent to the completion of each acquisition and do not reflect a full year of operations.
An analysis of our consolidated operating results is set forth below. A more detailed analysis of our segments’ operating results is
provided in the Segment Analysis section on pages 21 to 28.
Revenues
(Dollars in millions)
2014
2013
2012
Revenues
$ 13,878
$ 12,104
$ 12,237
% change compared with prior period
15%
(1)%
Revenues increased $1.8 billion, 15%, in 2014, compared with 2013, as increases in the Textron Aviation and Industrial segments
were partially offset by lower revenues in the Bell, Textron Systems and Finance segments. The net revenue increase included the
following factors:
x Higher Textron Aviation revenues of $1.8 billion, primarily due to a $1.5 billion impact from the Beechcraft acquisition
and a $263 million increase in volume, largely related to Citation jets.
x Higher Industrial segment revenues of $326 million, primarily due to $181 million in higher volume, largely in the Fuel
Systems and Functional Components product line, and a $142 million impact from acquisitions.
x Lower Bell revenues of $266 million, largely due to a $183 million decrease in commercial revenues reflecting lower
sales activity across the commercial helicopter market, and $99 million in lower other military volume, largely related to
the H-1 program reflecting lower aircraft deliveries and production support.
x Lower Textron Systems revenues of $41 million, primarily due to lower volume of $233 million in the Marine and Land
Systems product line, reflecting lower vehicle deliveries, partially offset by higher volume of $130 million in the
Unmanned Systems product line and a $62 million impact from acquisitions.
x Lower Finance revenues of $29 million, primarily attributable to gains on the disposition of finance receivables held for
sale during 2013.
Revenues decreased $133 million, 1%, in 2013, compared with 2012, as decreases in the Textron Aviation, Finance and Textron
Systems segments were partially offset by higher revenues in the Bell and Industrial segments. The net revenue decrease included
the following factors:
x Lower Textron Aviation revenues of $327 million, primarily due to lower Citation jet volume of $384 million and
CitationAir volume of $114 million, partially offset by higher aftermarket volume of $65 million and higher pre-owned
aircraft volume of $53 million.
19 Textron Inc. Annual Report • 2014