Textron Reaffirms Confidence in Fourth Quarter, Full-Year and 2000 Earnings Expectations

January 20, 2000

Providence, Rhode Island - January 20, 2000 - In response to recent declines in its stock price, Textron Inc. (NYSE: TXT) today reaffirmed its confidence in meeting market expectations for the fourth quarter, full-year 1999 and 2000.

"Textron is on track to deliver strong fourth quarter and full-year results that are completely in line with analyst expectations," said Textron Chairman and Chief Executive Officer Lewis B. Campbell. "This quarter will represent over ten years of consecutive, quarter-over-year-ago-quarter earnings growth for Textron and will be matched by another quarter and year of record revenue growth," he continued.

For the fourth quarter, Textron will report solid revenue and income improvements, driven by a combination of organic growth and strategic acquisitions across all of its segments. "Our market-leading businesses continue to perform very well in their markets, and we look forward to continued strong performance in 2000," Campbell added.

Referencing Textron's Aircraft segment, Campbell stated, "We are on track to deliver strong, double-digit growth in fourth-quarter Aircraft revenues and income, driven by the on-schedule production and delivery of the Bell-Boeing V-22 Osprey and increased business jet sales and deliveries at Cessna Aircraft. Further, we fully anticipate reporting an all-time record backlog for this segment." Textron's revenue recognition accounting policies fully comply with recent guidelines published by the staff of the Securities and Exchange Commission.

Commenting on the company's acquisition of OmniQuip International, a $520 million maker of light construction equipment, Campbell added, "OmniQuip exceeded their 1999 targets established at the time of acquisition. In addition, OmniQuip is already making significant progress in achieving synergies with other groups in our Industrial segment and Textron Financial Corporation. We anticipate continued strong performance in 2000 as well."

"As we look to the future, our strong, market-leading businesses are positioned to deliver even greater customer and shareholder value through a continued focus on innovation, operational excellence and growth," said Campbell.

Textron Inc. is an $11.5 billion global, multi-industry company with market-leading operations in Aircraft, Automotive, Industrial and Finance. Textron has a workforce of over 65,000 employees and major manufacturing facilities in over 27 countries, and is among Fortune magazine's Global Most Admired companies.

Forward-looking Information: Certain statements in this release 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 are subject to risks and uncertainties that may cause actual results to differ materially from those contained in the statements, including the following: (a) the extent which Textron is able to successfully integrate acquisitions, (b) changes in worldwide economic and political conditions and associated impact on interest and foreign exchange rates, © the occurrence of work stoppages and strikes at key facilities of Textron or Textron's customers or suppliers, (d) the extent to which the Company is able to successfully develop, introduce, and launch new products and enter new markets, (e) the level of government funding for Textron products and (f) Textron's ability to complete Year 2000 conversion without unexpected complications and the ability of its suppliers and customers to successfully modify their own programs. For the Aircraft Segment: (a) the timing of certifications of new aircraft products and (b) the occurrence of a severe downturn in the U.S. economy that discourages businesses from purchasing business jets. For the Automotive Segment: (a) the level of consumer demand for the vehicle models for which Textron supplies parts to automotive original equipment manufacturers ("OEM's") and (b) the ability to offset, through cost reductions, pricing pressure brought by automotive OEM customers. For the Industrial Segment: the ability of Textron Fastening Systems to offset, through cost reductions, pricing pressure brought by automotive OEM customers. For the Finance Segment: (a) the level of sales of Textron products for which TFC offers financing and (b) the ability of TFC to maintain credit quality and control costs when entering new markets.

 

Connect with Textron IR

Eric Salander, Vice President, Investor Relations
(401) 457-2288
Cameron Vollmuth, Manager,
Investor Relations (401) 457-2288

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