Textron Fastening Sales Down
Textron Fastening Sales Down
John Wolz
The sale of its automotive trim business gave Textron Inc. a profit in the fourth quarter, despite lower revenue. Sales and profits were down for the year.
The Textron Fastening Systems segment of Textron, reported 2001 fourth quarter revenue decreased $77 million, while profit before restructuring expenses dropped $57 million.
Textron attributed the TFS sales decline to “lower volume and customer price reductions, partially offset by the favorable impact of foreign exchange.” Profit was also was hurt by “operating inefficiencies as a result of production decreases to reduce inventory levels and the impact of smaller production lot sizes.”
The parent company, manufacturer of Cessna airplanes and Bell helicopters, posted a 2001 fourth quarter net income of $257 million, compared with a net loss of $218 million in the same period of 2000.
For the full year of 2001, Textron net income fell 23.8% to $166 million. Revenue was down 5.9% to $12.32 billion.
CEO Lewis Campbell commented that “in the midst of what continues to be a challenging economic environment we were pleased to deliver earnings for the quarter consistent with out plan, while exceeding our goals for cash.” Web: Textron.com �2002 FastenerNews.com
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