Textron Inc. is a multi-industry company that leverages its global network of aircraft, defense, industrial and finance businesses to
provide customers with innovative products and services around the world. Textron has approximately 34,000 employees worldwide. The company
was founded in 1923 and reincorporated in Delaware on July 31, 1967. Textron is headquartered in Providence, Rhode Island.
On March 14, 2014, Textron completed the acquisition of Beech Holdings, LLC, which included Beechcraft Corporation and other subsidiaries. Textron combined Beechcraft with its legacy Cessna segment to form the Textron Aviation segment.
Textron conducts its business through five principal business segments:
The following table highlights Textron's sales from 2011 to 2013 by segment:
A description of the business of each of the company's segments is set forth below.
Textron Aviation is a leader in general aviation. Textron Aviation manufactures, sells and services Beechcraft and Cessna aircraft,
and services the Hawker brand of business jets. The segment has two principal product lines: aircraft sales and aftermarket.
Aircraft sales include business jets, turboprop aircraft, piston aircraft, and military trainer and defense aircraft.
Aftermarket includes parts sales, and maintenance, inspection and repair services.
The family of jets currently produced by Textron Aviation includes the Mustang, Citation M2, Citation CJ3+, Citation CJ4, Citation XLS+, Citation Sovereign+ and the recently certified Citation X+, the fastest civilian jet in the world. In addition, Textron Aviation is developing the Citation Latitude, a midsize business jet expected to enter into service in 2015, as well as the larger Citation Longitude expected to enter into service in 2017.
Textron Aviation's turboprop aircraft include the best-selling business turboprop family in the world, the King Air, which offers the King Air C90GTx, with recently announced performance enhancements, the King Air 250, available with a new payload upgrade and the King Air 350. The world’s best-selling utility turboprop, the Cessna Caravan, is used in the United States primarily for overnight express package shipments and for personal transportation. International uses of Caravans include air taxi service, humanitarian flights, tourism and freight transport.
Textron Aviation's single-engine piston aircraft include the Baron, Bonanza, Skyhawk SP, Turbo Stationair and the high performance TTx. The Turbo Skylane JT-A, Textron Aviation's first Jet-A fueled piston aircraft is expected to be certified and begin delivering in 2015.
Textron Aviation also offers the T-6 trainer and AT-6 light attack military aircraft. During 2014, Textron Aviation received new orders from the U.S. Government, Mexico and New Zealand for T-6 aircraft. More than 25 countries now operate the T-6 aircraft as a part of their military training fleet.
The Textron Aviation family of aircraft is supported by a global network of 21 service centers operated by Textron Aviation, two of which are co-located with Bell Helicopter, along with 401 authorized independent service centers located in 49 countries throughout the world. Textron Aviation-owned service centers provide customers with 24-hour service and maintenance. Textron
Aviation provides its customers with around-the-clock parts support and also offers ServiceDirect for Citation, King Air and Hawker aircraft. ServiceDirect delivers service capabilities directly to customer locations with a mobile service unit fleet in the United States, Canada and Europe.
Textron Aviation markets its products worldwide through its own sales force, as well as through a network of authorized independent sales representatives. Textron Aviation has several competitors domestically and internationally in various market segments. Textron Aviation's aircraft compete with other aircraft that vary in size, speed, range, capacity and handling characteristics on the basis of price, product quality and reliability, direct operating costs, product support and reputation. Revenues in the Textron Aviation segment accounted for approximately 33%, 23% and 25% of total revenues in 2014, 2013 and 2012, respectively.
Financial results for Cessna were as follows:
Textron Aviation's revenues increased by $1.8 billion, 64%, in 2014, compared with 2013, primarily due to the impact of the Beechcraft acquisition of $1.5 billion and higher volume of $263 million. The increase in volume was primarily the result of higher Citation jet volume of $344 million, partially offset by lower CitationAir volume of $78 million related to exiting the fractional share business.
Textron Aviation delivered 159 Citation jets and 113 King Air turboprops in 2014, compared with 139 Citation jets in 2013 and 181, 183 and 179 jets in 2012, 2011 and 2010, respectively.
During 2014, the portion of the segment’s revenues derived from aftermarket sales and services represented 30% of its total revenues, compared with 33% in 2013.
Bell Helicopter is one of the leading suppliers of military and commercial helicopters, tiltrotor aircraft,
and related spare parts and services in the world.
Bell supplies advanced military helicopters and support to the U.S. Government and to military customers outside the United States. Bell's primary U.S. Government programs are the V-22 Osprey tiltrotor aircraft and the H-1 helicopters. Bell is one of the leading suppliers of helicopters to the U.S. Government and, in association with Boeing, the only supplier of military tiltrotor aircraft. Tiltrotor aircraft are designed to provide the benefits of both helicopters and fixed-wing aircraft. Through its strategic alliance with Boeing, Bell produces and supports the V-22 tiltrotor aircraft for the U.S. Department of Defense (DoD). The U.S. Marine Corps H-1 helicopter program includes a utility model and an advanced attack model, the UH-1Y Venom and the AH-1Z Viper, respectively, which have 84% parts commonality between them. Bell also continues to support the U.S. Army's OH-58D Kiowa Warrior armed scout helicopter. During 2013, the Bell Boeing V-22 program was awarded a five-year contract for the production and delivery of an additional 99 V-22 tiltrotor aircraft from 2014 through 2019.
Through its commercial business, Bell is a leading supplier of commercially certified helicopters and support to corporate, offshore petroleum exploration and development, utility, charter, police, fire, rescue, emergency medical helicopter operators and foreign governments. Bell produces a variety of commercial aircraft types, including light single- and twin-engine helicopters and medium twin-engine helicopters, along with other related products. The helicopters currently offered by Bell for commercial applications include the 206L-4, 407, 407GX, 412EP/EPI, 429 and Huey II. The new 505 Jet Ranger X, a short-light single helicopter, achieved its first flight in late 2014. In addition, Bell continues to develop the 525 Relentless, its first super medium commercial helicopter, and first flight is expected in 2015.
For both its military programs and its commercial products, Bell provides post-sale support and service for its installed base of approximately 13,000 helicopters through a network of eight Bell-operated service centers, four supply centers and over 100 independent service centers located in 34 countries. Collectively, these service sites offer a complete range of logistics support, including parts, support equipment, technical data, training devices, pilot and maintenance training, component repair and overhaul, engine repair and overhaul, aircraft modifications, aircraft customizing, accessory manufacturing, contractor maintenance, field service and product support engineering.
Bell competes against a number of competitors based in the U.S. and other countries for its helicopter business, and its parts and support business competes against numerous competitors around the world. Competition is based primarily on price, product quality and reliability, product support, performance and reputation.
Revenues for Bell accounted for approximately 31%, 37% and 35% of total revenues in 2014, 2013 and 2012, respectively.
Financial results for Bell Helicopter were as follows:
Bell's revenues decreased $266 million (-6%) in 2014, compared with 2013, primarily due to (i) a $183 million decrease in commercial revenues, largely related to lower volume reflecting lower sales activity across the commercial helicopter market. Bell delivered 178 commercial aircraft in 2014, compared with 213 commercial aircraft in 2013 and 188, 125 and 131 aircraft in 2012, 2011 and 2010, respectively; (ii) $99 million decrease in other military volume, primarily related to the H-1 program, largely reflecting lower aircraft deliveries and production support. Lower volume was partially offset by $41 million recorded in the second quarter of 2014, related to the settlement of the SDD phase of the ARH program, which was terminated in October 2008. Bell delivered 24 H-1 aircraft in 2014, compared with 25 aircraft in 2013 and 24, 25 and 18 H-1 aircraft in 2012, 2011 and 2010, respectively; (iii) $16 million increase in V-22 program revenues, reflecting higher product support volume of $115 million. This increase was largely offset by lower aircraft deliveries, as Bell delivered 37 V-22 aircraft in 2014 compared to 41 V-22 aircraft in 2013 and 39, 34 and 26 aircraft in 2012, 2011 and 2010, repectively.
Textron Systems' product lines consist of unmanned aircraft systems (AAI), marine and land systems, weapons and sensors, simulation, training and other defense and aviation mission support products and services. Textron Systems is a supplier to the defense, aerospace, homeland security and general aviation markets. While this segment sells most of its products to U.S. government customers, it also sells products to customers outside the U.S. through foreign military sales sponsored by the U.S. Government and directly through commercial sales channels. Textron Systems competes on the basis of technology, contract performance, price, product quality and reliability, product support and reputation.
Unmanned Aircraft Systems (UAS) consists of the AAI UAS and AAI Logistics & Technical Services businesses. AAI UAS has designed, manufactured and fielded combat-proven unmanned aircraft systems for more than 25 years, including the U.S. Army's RQ-7 Shadow, which includes the One System Ground Control Station — the U.S. Army's standard for interoperability of manned and unmanned airborne assets. AAI-Logistics & Technical Services provides logistical support related to the operation of various unmanned aircraft systems including field operational and maintenance service support, as well as engineering and supply chain services to government and commercial customers worldwide.
The Marine and Land Systems business is a world leader in the design, production and support of armored vehicles, turrets and related subsystems as well as advanced marine craft. It produces a family of extremely mobile, highly protective vehicles for the U.S. Army and international allies, and is developing the U.S. Navy's next generation air cushion vehicle, the Ship-to-Shore Connector (SSC).
The Weapons and Sensors business consists of state-of-the-art smart weapons; airborne and ground-based sensors and surveillance systems; and protection systems for the defense and aerospace industries. It primarily sells its products to international allies through foreign military sales.
Simulation, Training and Other includes five businesses:
(1) TRU Simulation + Training, (2) Lycoming, (3) Electronic Systems,
and (4) Advanced Information Solutions and Geospatial Solutions.
TRU Simulation + Training designs, develops, manufactures, installs, and provides maintenance of advanced flight training courseware and devices, including full flight simulators, for both rotary- and fixed-wing aircraft for commercial airlines, aircraft original equipment manufacturers (OEMs), flight training centers and training organizations worldwide. Through its training centers, TRU Simulation + Training provides initial type-rating and recurrency training for pilots.
Lycoming specializes in the engineering, manufacture, service and support of piston aircraft engines for the general aviation and remotely piloted aircraft markets.
Electronic Systems provides high technology test equipment and electronic warfare test and training solutions.
Advanced Information Solutions and Geospatial Solutions provide intelligence software solutions for U.S. and international defense, intelligence and law enforcement communities.
Textron Systems is a supplier to the defense, aerospace and general aviation markets, and represents approximately 12%, 14% and 14% of Textron's revenues in 2014, 2013 and 2012, respectively.
Financial results for Textron Systems were as follows:
Revenues at Textron Systems decreased $41 million (-2%) in 2014, compared with 2013, primarily due to lower volume in the Marine and Land Systems product line of $233 million, reflecting fewer vehicle deliveries, partially offset by higher volume in the Unmanned Systems product line of $130 million and a $62 million impact largely related to the acquisition of two flight simulation and training businesses in December 2013.
The company's Industrial segment designs and manufactures a variety of products under three principal product lines.
The company's fuel systems and functional components product line is operated by the company's Kautex division, which is headquartered
in Bonn, Germany. Kautex is a leading developer and manufacturer of blow-molded plastic fuel systems for cars, light trucks, all-terrain
vehicles, windshield and headlamp washer systems, and selective catalytic reduction systems used to reduce emissions from diesel engines.
Kautex produces engine camshafts in North America, and serves the automobile market worldwide, with operating facilities near its major
customers around the world. In addition, from facilities in Germany and Poland, Kautex develops and produces plastic bottles and containers
for food, household, laboratory and industrial uses. Revenues of Kautex accounted for approximately 14%, 15% and 15% of total revenues
in 2014, 2013 and 2012, respectively.
The company's automotive products have several major competitors worldwide, some of which are affiliated with the OEMs that comprise Textron's targeted customer base. Competition typically is based on a number of factors including price, technology, environmental performance, product quality and reliability, prior experience and available manufacturing capacity.
Textron's Specialized Vehicles and Equipment product line includes the products designed, manufactured and sold
by the Textron Specialized Vehicles and Jacobsen businesses.
Textron Specialized Vehicles, which includes E-Z-GO, Bad Boy Buggies and Cushman, and the recently-acquired TUG Technologies and Douglas Equipment businesses, designs, manufactures and sells golf cars, off-road utility vehicles, light transportation vehicles and aviation ground support equipment. Although Textron Specialized Vehicles is best known for its electric-vehicle technology, it also manufactures and sells models powered by internal combustion engines. Textron Specialized Vehicles’ diversified customer base includes golf courses and resorts, government agencies and municipalities, consumers, and commercial and industrial users such as factories, warehouses, airports, planned communities, hunting preserves and educational and corporate campuses. Sales are made through a combination of factory direct resources and a network of independent distributors and dealers worldwide. Textron Specialized Vehicles has two major competitors for golf cars and several other competitors for off-road and light transportation vehicles and for aviation ground support equipment. Competition is based primarily on price, product quality and reliability, product support and reputation.
Jacobsen designs, manufactures and sells professional turf-maintenance equipment, as well as specialized turf-care vehicles. Brand names include Ransomes, Jacobsen, Cushman and Dixie Chopper, which was acquired in 2014. Jacobsen's customers include golf courses, resort communities, sporting venues, municipalities and landscaping professionals. Products are sold primarily through a worldwide network of distributors and dealers, as well as factory direct. Jacobsen has two major competitors for professional turf-maintenance equipment and several other major competitors for specialized turf-care products. Competition is based primarily on price, product features, product quality and reliability and product support.
The Tools and Test Equipment product line includes products sold by businesses that design and manufacture powered equipment,
electrical test and measurement instruments, mechanical and hydraulic tools, cable connectors, fiber optic assemblies,
underground and aerial transmission and distribution products and power utility products. These businesses also encompass the Greenlee,
Greenlee Communications, Greenlee Utility, HD Electric, Klauke, Sherman & Reilly, Rothenberger and Endura brand names,
and their products are used principally in the construction, maintenance, telecommunications, data communications, electrical,
utility and plumbing industries. Their products are distributed through a global network of sales representatives and distributors
and are also sold directly to home improvement retailers and OEMs. The businesses operate 13 plants across four countries
with almost 50% of their combined revenue coming from outside the United States. These businesses face competition from numerous
manufacturers based primarily on price, delivery lead time, product quality and reliability.
Financial results for the Industrial segment were as follows:
Industrial segment revenues increased $326 million (+11%) in 2014, compared with 2013, primarily due to higher volume of $181 million and the impact from acquisitions of $142 million, primarily within the Specialized Vehicles and Equipment product line. Higher volume resulted from a $142 million increase in the Fuel Systems and Functional Components product line, principally reflecting automotive industry demand in North America and Europe, and a $39 million increase in the Other Industrial product lines.
The company's Finance segment, or the Finance group, is a commercial finance business that consists of Textron Financial Corporation (TFC)
and its consolidated subsidiaries. The Finance segment provides financing primarily to purchasers of new and pre-owned Textron Aviation aircraft
and Bell helicopters. The majority of new finance receivables are cross-border transactions for aircraft sold outside of the U.S.
New originations in the U.S. are primarily for purchasers who had difficulty in accessing other sources of financing
for the purchase of Textron-manufactured products.
In 2014, 2013, 2012, 2011 and 2010, the Finance group paid Textron's manufacturing businesses $215 million $248 million, $309 million, $284 million and $416 million, respectively, related to the sale of Textron-manufactured products to third parties that were financed by the Finance group.
The commercial finance business traditionally is extremely competitive. Textron's Finance segment is subject to competition from various types of financing institutions, including banks, leasing companies, commercial finance companies and finance operations of equipment vendors. Competition within the commercial finance industry primarily is focused on price, term, structure and service.
Financial results for the Finance segment were as follows:
Finance segment revenues decreased $29 million in 2014, compared with 2013, primarily attributable to a $31 million impact from gains on the disposition of finance receivables held for sale during 2013. These gains resulted from the payoff of loans in amounts, and sale of loans at prices, in excess of the values established in previous periods.
Revenues ('14): $13,898M +14.7%
R&D ('14): $694M +6.6%
Net Profit ('14): $600M +20.5%
CAPEX ('14): $429M -3.4%
General aviation aircraft/business jets; Aircraft Aftermarket Services; Military helicopters; Commercial helicopters; Tiltrotor aircraft; Rotorcraft spare parts and services; Unmanned Aircraft Systems (UAS); UAS support services; Armored Security Vehicles (ASV); Turrets and related subsystems; Advanced marine craft; Advanced flight training courseware and devices, including full flight simulators; Piston aircraft engines for the general aviation and remotely piloted aircraft markets (Lycoming); High technology test equipment and electronic warfare test and training solutions; Intelligence software solutions; Geospatial analysis solutions; Aircraft and equipment financing.
Textron's Major DoD Defense Programs:
Textron's Commercial Programs:
| Bell Helicopter: 206L-4, 407, 407GX, 412EP/EPI, 429, Huey II, 505 Jet Ranger X |
|Sales 2010-2014||Net Income 2010-2014||R&D Spending 2010-2014||# Employees 2010-2014|