|This article relies on references to primary sources. (October 2013)|
|Traded as||NYSE: TXT
S&P 500 Component
|Headquarters||Providence, Rhode Island, USA|
|Key people||Scott C. Donnelly
(Chairman, CEO, President and Member of Management Committee)
|Revenue||US$ 12.237 billion (2012)|
|Operating income||US$ 581 million (2012)|
|Net income||US$ 242 million (2011)|
|Total assets||US$ 10.711 billion (2012)|
|Total equity||US$ 2.991 billion (2012)|
Textron (NYSE: TXT) is an American industrial conglomerate which, unlike many other conglomerates, remains fairly large even after the "glory years" of the 1960s. Textron includes Bell Helicopter, Cessna Aircraft, and other components. It was founded by Royal Little in 1923 as the Special Yarns Company, and is now headquartered in Providence, Rhode Island.
Textron was ranked 225th in the 2013 issue of the Fortune 500.
- 1 History
- 2 Divisions and subsidiaries
- 3 References
- 4 External links
Textron started as a textile company in 1923, when 22-year-old Royal Little founded the Special Yarns Corporation in Boston, Massachusetts. Special Yarns Company made synthetic yarns, a niche product at the time. By the start of World War II the company was known as Atlantic Rayon Corporation, and won major contracts for making parachutes. With the wind-down of war production starting in 1943, the company started making civilian products as well, and renamed the company Textron: “Tex" for "textiles," and "tron" from synthetics such as "Lustron". Textron was listed on the NYSE in 1947.
In 1952 Little decided to diversify and start an acquisitions policy. In 1953 they bought Burkart Manufacturing, which make cushions for cars. Over the next few years they added Homelite, maker of chainsaws, Camcar, who made fasteners like bolts, Cherry Rivet Company, and CWC, maker of automotive accessories such as camshafts. Branching out, in 1960 they bought Bell Aerospace and E-Z-Go.
Little retired later that year, with sales at $383 million. His replacement, G. William Miller, continued his policies, and in 1963 had sold off the last of their textile companies. Over the next few years Textron added Sheaffer pens, Bostitch, Polaris snowmobiles and venture capital firm American Research and Development Corporation. Miller stepped down in 1977 to join Jimmy Carter's administration as Chairman of the Federal Reserve, and later, Secretary of the Treasury. Joseph Collinson replaced him, and retired in 1979.
By this point the acquisitions phase had slowed, and in 1984 the small but cash-flush holding company made a bid to buy all of Textron. The bid failed due to a lack of cash, but the company was "in play" and it was only a matter of time before another, larger, buyer was successful. Textron management decided to take a poison pill, and in November they bought Avco, another conglomerate roughly the same size. Textron was now too large to be easily bought, and was in enough debt to make a takeover unattractive. However it also made the company uncompetitive, and in the late 1980s several of its smaller companies were sold off.
In 1989, James Hardymon became CEO, and bought Cessna in 1992. He also sold off many remaining "non-core" companies, focusing on aviation, avionics and automotive parts. Internal mergers resulted in several larger companies from many smaller ones, including Textron Automotive Company and Textron Fastener Systems.
In 1998, Textron stock shares were valued at over $45 per share (split adjusted price) and the company had a market capitalization of over $12 billion. Starting in 2000, Campbell led a company-wide restructuring program. The share price fell to as low as $13/share in March 2003 after the economic downturn following the collapse of Internet companies and the terrorist attacks on the World Trade Center. Diminished demand for helicopters and airplanes led to layoffs at Cessna and Bell Helicopter.
In 2004, Forbes magazine named Campbell as the fifth worst-performing CEO in the country. Shares in Textron plummeted to as low as $10.09 per share in the aftermath of the 2008 economic downturn, driving its market capitalization down to just $3.17 billion.
Divisions and subsidiaries
Aviation and defense
Textron Systems is an aerospace and defense development and manufacturing firm headquartered in Wilmington, Massachusetts, USA. The company is a business unit of Textron Inc., which reported 2012 annual sales in the Textron Systems segment as $1.7 billion.
Textron Systems has several operating units, including:
- AAI Corporation (Hunt Valley, Maryland)
- Lycoming Engines (Williamsport, Pennsylvania)
- Overwatch Geospatial Solutions (Sterling, Virginia)
- Overwatch Information Solutions (Austin, Texas)
- Textron Defense Systems (Wilmington, Massachusetts): a maker of weapons and of surveillance systems
- Textron Marine & Land Systems (Slidell, Louisiana)
Altogether, Textron Systems employs 5,600 people.
Textron AirLand, LLC is a joint venture between Textron Inc. and AirLand Enterprises, LLC that is currently developing the Textron AirLand Scorpion aircraft as a private venture.
E-Z-Go is a designer and manufacturer of light transportation vehicles for golf courses and for other uses. Products include electric and internal combustion golf carts and multipurpose utility vehicles under the E-Z-Go, Cushman, and Bad Boy Buggy brands.
Greenlee Textron is an industrial and electrical tool company headquartered in Rockford, Illinois, USA. It was founded in 1862 by brothers Robert and Ralph Greenlee to manufacture their invention, a drill surrounded by four chisel blades, used in making the pockets for a mortise and tenon joint, for the furniture industry in Rockford. This device is still used in cabinetmaking. The brothers later diversified into a variety of hand woodworking tools as well as machinery for making wooden barrels. The company was acquired by Textron in 1986. Greenlee today produces various wire and cable installation tools that are used in a variety of fields.
Textron purchased Jacobsen Manufacturing around 1975, and continued to produce Jacobsen garden tractors into the 1990s. Today Jacobsen sells various products used for turf care: maintenance equipment, vehicles, and other products.
Kautex Textron is a supplier to the automotive industry. The company produces plastic fuel systems, selective catalytic reduction systems, windshield and headlamp washer systems, and other products.
- "More On Textron; Profile". Yahoo! Finance. December 31, 2011. Retrieved July 20, 2012.
- "10-K Form FY11". Morningstar. February 23, 2012. Retrieved July 19, 2012.
- Michael Brush, “The Sky’s No Limit for CEO Perks,” MSN Money (moneycentral.msn.com), October 17, 2007, citing Paul Hodgson, Up, Up, and Away: Personal Use of the Corporate Jet, The Corporate Library, September 4, 2007.
- Will, Oscar H. (2009). Garden Tractors: Deere, Cub Cadet, Wheel Horse, and All the Rest, 1930s to Current. Voyageur Press. p. 55. ISBN 978-1-61673-161-8. Retrieved October 27, 2013.