Textron

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Image:Textron logo.png Textron, Inc. Template:Nyse, headquartered in Providence, Rhode Island, is a U.S.-based conglomerate which, unlike many other conglomerates, remains fairly large even after the "glory years" in the 1960s. Today Textron is a $10 billion multi-industry company with 46,000 employees operating in 36 countries. The company is comprised of a wide variety of brands, mainly in the aviation, defense, and golf industries.

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Organization Template:Ref

Bell division
Cessna division
- Cessna Aircraft Company
Textron Fastening Systems
Textron Financial Corporation
Industrial division
- E-Z-GO (golf cars and utility vehicles)
- Greenlee (wire and cable installation tools)
- Jacobsen (lawn care products)
- Kautex (plastic fuel systems)
- Fluid & Power Group

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History

Textron started as a textile company in 1923, when 22-year-old Royal Little founded the Special Yarns Corporation in Boston, Massachusetts. 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. On December 22, 1947, Textron was listed on the New York Stock Exchange.

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. Little's successor, banker Rupert Thompson, 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. 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.

In 1979, Collinson retired, and he was succeeded by Robert P. Straetz as chairman and CEO. Beverly F. Dolan, founder and former president of E-Z-GO, was president. By the end of 1979, revenues had risen to $3.3 billion.

In December of 1985, Textron acquired Avco Corporation of Connecticut, a conglomerate of almost equal size with pre-acquisition revenue of $2.9 billion. With the addition of this subsidiary, Textron nearly doubled in size.

In 1989, James Hardymon became CEO, and bought Cessna in 1992. He also sold off several companies, focusing on aviation, avionics and automotive parts. In order to increase corporate oversight of operations, Hardymon brought in Lewis B. Campbell from General Motors as executive vice president and chief operating officer in 1992. In 1994, Campbell was also elected president.

From 1989 to the end of 1997, Textron decreased its holdings in military contracting, insurance and consumer products, divesting businesses with $2.8 billion in revenue while acquiring other businesses totaling $3.9 billion in revenue. In 1989, approximately 20 percent of Textron's revenue came from non-US operations. By the end of 1997, this figure had almost doubled.

In 1994, following the acquisition of the plastics operations of Chrysler's Acustar Division, Textron's six automotive businesses were combined into one company, Textron Automotive Company. Similarly, in 1995, Textron Fastening Systems Inc. (TFS) was formed by merging five Textron fastening companies to form a global fastener group, making TFS the largest producer of engineered fastening products and solutions in the world.

In May of 1997, Textron common stock split for the fourth time in its history. In addition, Hardymon's focus on achieving a consistent and strong financial performance resulted in 45 quarters of continuous year-over-previous-year quarterly earnings growth. During his tenure as CEO, the stock price increased from $19.81 per share on January 1, 1992 to $71.69 per share on June 30, 1998, reflecting the market's strong correlation between earnings growth and stock price appreciation.

Lewis B. Campbell was appointed chief executive officer on July 1, 1998. He assumed the additional responsibility of chairman on February 1, 1999, shortly after Hardymon's retirement.

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