News Underscores Strong Outlook
Providence, RI – January 26, 2006 – Textron Inc. (NYSE: TXT) today announced that its Board of Directors has authorized a $0.15 per share increase in the company's annualized Common Stock dividend, from $1.40 per share to $1.55 per share.
Accordingly, the Board declared a quarterly dividend of $0.3875 per share on the company's Common Stock. The Board also declared a quarterly dividend of $0.52 per share on Textron's $2.08 Cumulative Convertible Preferred Stock, Series A, and $0.35 per share on the company's $1.40 Convertible Preferred Dividend Stock, Series B. All dividends will be paid on April 1, 2006 to holders of record at the close of business on March 10, 2006.
In addition, the Textron Board of Directors also authorized a new, 12 million share repurchase program. This program replaces the company's previous 12 million share program authorized October 20, 2004, which has been fully exercised.
"The decision to increase our dividend and establish a new share repurchase program underscores the Board's confidence in the company's outlook and provides a vehicle for sound redeployment of cash from the expected sale of our Fastening Systems business," said Textron Chairman, President and CEO, Lewis B. Campbell.
About Textron
Textron Inc. is a $10 billion multi-industry company with 46,000 employees operating in 36 countries. The company leverages its global network of aircraft, industrial and finance businesses to provide customers with innovative solutions and services. Textron is known around the world for its powerful brands such as Bell Helicopter, Cessna Aircraft, Jacobsen, Kautex, Lycoming, E-Z-GO and Greenlee, among others. More information is available at www.textron.com.
Forward-looking Information: Certain statements in this report and other oral and written statements made by Textron from time to time are forward-looking statements, including those that discuss strategies, goals, outlook or other non-historical matters; or project revenues, income, returns or other financial measures. These forward-looking statements speak only as of the date on which they are made, and we undertake no obligation to update or revise any forward-looking statements. These forward-looking statements are subject to risks and uncertainties that may cause actual results to differ materially from those contained in the statements, including the following: [a] changes in worldwide economic and political conditions that impact interest and foreign exchange rates; [b] the interruption of production at Textron facilities or Textron's customers or suppliers; [c] Textron's ability to perform as anticipated and to control costs under contracts with the U.S. Government; [d] the U.S. Government's ability to unilaterally modify or terminate its contracts with Textron for the Government's convenience or for Textron's failure to perform, to change applicable procurement and accounting policies, and, under certain circumstances, to suspend or debar Textron as a contractor eligible to receive future contract awards; [e] changes in national or international funding priorities and government policies on the export and import of military and commercial products; [f] the adequacy of cost estimates for various customer care programs including servicing warranties; [g] the ability to control costs and successful implementation of various cost reduction programs; [h] the timing of certifications of new aircraft products; [i] the occurrence of slowdowns or downturns in customer markets in which Textron products are sold or supplied or where Textron Financial offers financing; [j] changes in aircraft delivery schedules or cancellation of orders; [k] the impact of changes in tax legislation; [l] the extent to which Textron is able to pass raw material price increases through to customers or offset such price increases by reducing other costs; [m]Textron's ability to offset, through cost reductions, pricing pressure brought by original equipment manufacturer customers; [n] Textron's ability to realize full value of receivables and investments in securities; [o] the availability and cost of insurance; [p] increases in pension expenses related to lower than expected asset performance or changes in discount rates; [q] Textron Financial's ability to maintain portfolio credit quality; [r] Textron Financial's access to debt financing at competitive rates; [s] uncertainty in estimating contingent liabilities and establishing reserves to address such contingencies; [t] performance of acquisitions; [u] the efficacy of research and development investments to develop new products; [v] bankruptcy or other financial problems at major suppliers or customers that could cause disruptions in Textron's supply chain or difficulty in collecting amounts owed by such customers; and [w] Textron's ability to execute planned dispositions.