Textron: Action & Results

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Textron: Action & Results 130124 5/14/03 2:16 PM Page FC1 Textron: Action & Results 2002 Fact Book 130124 5/14/03 2:16 PM Page IFC2 Textron is an $11 billion multi-industry company with approximately 49,000 employees in 40 countries. We leverage our global network of businesses to provide customers with innovative solutions and services in industries such as aircraft, fastening systems, industrial products and components, and finance. Textron is known around the world for its powerful brands, such as Bell Helicopter, Cessna Aircraft, Kautex, Lycoming, E-Z-GO and Greenlee, among others. Stock and Contact Information Stock Exchange Listings General Information Ticker Symbol – TXT This Fact Book is one of several sources of information available to Textron Inc. shareholders and the investment community. To receive Annual Common Stock Reports, 10-K, 10-Q reports and/or press releases, please call (888) TXT- New York, Chicago and Pacific Stock Exchanges LINE or visit our website at www.textron.com Preferred Stock ($2.08 and $1.40) New York Stock Exchange Contacts Investors Mandatorily Redeemable Preferred Securities of Subsidiary Trust (7.92%) Douglas R. Wilburne New York Stock Exchange Vice President, Communications & Investor Relations [email protected] Capital Stock (401) 457-2353 (as of December 28, 2002) (401) 457-3598 (fax) Common stock: par value $0.125; 500,000,000 shares authorized; Marc Kaplan 136,499,608 shares outstanding. Director, Investor Relations $2.08 Cumulative Convertible Preferred stock, Series A: [email protected] 120,515 shares outstanding. (401) 457-2502 (401) 457-3598 (fax) $1.40 Convertible Preferred Dividend stock, Series B: 56,394 shares outstanding. Banks and Rating Agencies Mary F. Lovejoy Transfer Agent and Registrar Vice President and Treasurer [email protected] Wachovia Bank, NA (401) 457-3604 Shareholder Services Group (401) 457-3533 (fax) 1525 West W.T Harris Blvd., 3C3 Charlotte, NC 28288 Media Phone: (800) 829-8432 Susan M. Tardanico Fax: (704) 590-7618 or (704) 590-7614 Director, Corporate Communications [email protected] Dividends (401) 457-2394 Common and Preferred Stock (401) 457-3598 (fax) Record dates: March 15, June 14, September 13 and December 13, 2002. Payable dates: April 1, July 1, October 1, 2002 Susan B. Bishop and January 1, 2003. Manager, Media Relations [email protected] Mandatorily Redeemable Preferred Securities of Subsidiary Trust (7.92%) (401) 457-2362 Record dates: March 28, June 27, September 29 and (401) 457-3598 (fax) December 30, 2002. Payable dates: March 31, June 30, September 30 and December 31, 2002. Share Ownership Stock Splits Record dates: December 17, 1965; August 11, 1967; 6% Foreign Institutions May 11, 1987 and May 9, 1997. 57% Distribution dates: January 1, 1966; September 1, 1967; 15% U.S. Institutions Employee/Directors/ June 1, 1987 and May 30, 1997. Officers 22% Textron is an Equal Opportunity Employer. Individual & Other 130124 5/14/03 2:16 PM Page 1 Fast Facts Textron’s 2002 Annual Report includes consolidated financial statements that have been prepared > www.textron.com in accordance with generally accepted accounting principles. > NYSE: TXT In order to provide a comparative basis for future periods, in this Fact Book certain historical > 2002 Fortune 500 ranking: 164 consolidated financial statement amounts on pages 2-11 and 14-15 have been adjusted as follows: > Number of employees: 49,000 – 30 percent (a) recast amounts exclude the Automotive Trim business that was sold in 2001; (b) segment profit are outside the U.S. has been adjusted to exclude certain costs related to restructuring which are included in segment profit in the consolidated annual report financial statements; and (c) segment profit has been > Number of countries with manufacturing adjusted to exclude goodwill amortization consistent with the implementation of Statement of operations: 24 Financial Accounting Standards (SFAS) No. 142 “Goodwill and Other Intangible Assets.” Key Executives Textron Segments (% of 2002 Revenues) Lewis B. Campbell > Aircraft (46%) Chairman, President and Commercial and military helicopters, tiltrotor aircraft, business jets, single-engine piston Chief Executive Officer aircraft, utility turboprops and engines. > Fastening Systems (16%) Lewis Campbell was named CEO in Threaded fasteners, engineered products, blind fasteners and automation systems for the July 1998 and appointed chairman automotive, telecommunications, aerospace, electronics, construction and transportation markets. in February 1999. Campbell served as > Industrial Products (17%) president and chief operating officer Golf cars and specialty vehicles, turf maintenance equipment, light construction equipment, electrical from January 1994 to July 1998, and and telecommunications tools and testing technologies, and defense systems. reassumed the position of president > Industrial Components (15%) in September 2001. Campbell joined Plastic fuel systems, fluid handling products and power transmission components. Textron in September 1992 as executive > Finance (6%) vice president and chief operating Diversified commercial financing. officer after a 24-year career at General Motors. 2002 2001 Change Operating Results Steve R. Loranger Revenues $10,658 $12,321 (13%) Executive Vice President and International revenues 33% 35% — Segment profit, as adjusted 1,2 $857 $960 (11%) Chief Operating Officer Less: Other costs related to restructuring $(22) $(34) (35%) Steve Loranger joined Textron as Less: Special charges 3 $(128) $(437) (71%) executive vice president and chief Segment operating income $707 $489 45% operating officer in October 2002. Net income 4 $364 $166 119% 5 Previously, Loranger spent 21 years Total debt – Textron Manufacturing $1,711 $1,934 (12%) Shareholders’ equity $3,406 $3,934 (13%) at Honeywell, where he most recently served as president and chief Common Share Data 4,6 executive officer of Honeywell Engines, Diluted EPS, as adjusted $3.01 $2.32 30% Diluted EPS 4 $2.60 $1.16 124% Systems and Services. During Dividends per share $1.30 $1.30 — Loranger’s career with Honeywell, he Diluted average common shares outstanding (000’s) 140,252 142,937 (2%) also held the positions of president and Key Performance Metrics chief executive officer of AlliedSignal Free cash flow 7 $347 $369 (6%) Engines and president of Bendix Truck ROIC 8 9.4% 8.9% — Brake Systems. Debt (net of cash) to total capital - Manufacturing 5 27% 28% — Short-Term Senior Commercial Ted R. French Credit Ratings of Textron Manufacturing (as of 3/29/2003) Long-Term Paper Executive Vice President and S&P A A1 Chief Financial Officer Moody’s A3 P2 Fitch A- F2 Ted French joined Textron as 1 Segment profit represents the measurement used by Textron to evaluate performance for decision making purposes. Segment executive vice president and chief profit does not include interest expense of the manufacturing segments, certain corporate expenses, goodwill amortization, financial officer in December 2000. special charges and gains and losses from the disposition of significant business units. Segment profit, as adjusted also excludes other costs related to restructuring. 2 Textron adopted SFAS No. 142 “Goodwill and Other Intangible Assets” which Prior to joining Textron, French served requires companies to stop amortizing goodwill. For consistency, segment profit for 2001 excludes $98 million of goodwill amortization. 3 Special charges in 2002 include $63 million in restructuring expenses, $27 million in fixed asset impairment as president, financial services, and write-downs and $38 million in investment write-downs. Special charges in 2001 include $319 million in goodwill and intangible write-downs, $81 million in restructuring expenses, $28 million in fixed asset impairment write-downs and $9 million in write- chief financial officer for CNH Global downs and losses on e-business investments. 4 Before cumulative effect of change in accounting principle in 2002. N.V., where he spent 11 years. Earlier 5 Textron Manufacturing includes all entities of Textron Inc. other than its finance subsidiary. 6 Excludes special charges as described in footnote 3, gains and losses on sales of businesses, and other costs related to restructuring. A reconciliation to he held a variety of positions during diluted EPS from operations is provided on pages 12 - 13. 7 A reconciliation of cash flow from operations to free cash flow is his 12-year tenure with Rockwell provided on pages 12 - 13. 8 Textron’s calculation of ROIC is provided on pages 16 - 17. International. Textron Fact Book 1 130124 5/14/03 2:16 PM Page 2 Aircraft-Bell Helicopter A leader in vertical takeoff and landing aircraft for 15.4% Bell’s share of Textron 2002 revenues commercial and military markets, and the pioneer of 46.2% Aircraft’s share of the revolutionary tiltrotor aircraft. Textron 2002 revenues Strategic Steps Forward > Complete the redesign and flight test of the V-22 tiltrotor to ensure > Leverage brand strength and industry-recognized customer the future production of the aircraft for the Marines, Air Force Special commitment to increase market share. Operations Forces and other U.S. Department of Defense and > Implement Textron Six Sigma and supply chain improvements, and international customers. leverage the Textron enterprise to achieve operational > Complete the flight test of the new AH-1Z attack and UH-1Y utility improvements. helicopters. Enter full production for the U.S. Marine Corps and > Refine organizational structure and strengthen business introduce this modern aircraft into
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