Textron Systems Awarded Contract for Production of 724 Additional Armored Security Vehicles for Operation Iraqi Freedom

July 05, 2005

Wilmington, MA - July 5, 2005 - Textron Marine & Land of New Orleans, Louisiana, an operating unit of Textron Systems, today announced that it has been awarded an undefinitized contract action by the U.S. Army Tank-Automotive & Armaments Command to manufacture 724 additional Armored Security Vehicles (ASV). All 724 vehicles have been designated for use by the U.S. Army. Fifty percent funding has been awarded and when the contract is fully definitized is worth potentially $500 million subject to final contract terms.

There are currently 130 ASVs deployed in support of Operation Iraqi Freedom.

Richard Millman, president of Textron Systems, said "We've been working closely with the Army to expedite getting these important vehicles to our soldiers. We are proud to be building these high quality and highly protected armored vehicles that have proved so successful in Iraq. We've significantly increased our production rate and, with this order, will proceed to achieve a rate of 48 vehicles a month."

Textron Marine & Land, based in New Orleans, has also been modifying its production line, expanding its manufacturing space and hiring the necessary workforce. "The company has been building and expanding facilities to meet our customers' needs," said B. Clay Moise, Textron Marine & Land's vice president of marine and combat vehicles. "We've hired more than 700 new employees to get the production lines ready for this contract, and we anticipate hiring up to 400 more employees by March of next year.

"We are very pleased and honored to receive this significant order from the U.S. Army. It is a continued vote of confidence in a vehicle that was specifically designed for a threat-rich, urban environment such as what we continue to face in Operation Iraqi Freedom," added Moise.

This latest sole source contract award brings the total number of production vehicles awarded to Textron to 1118. Work for this contract award will begin immediately, with the first deliveries expected by February, 2006 and full delivery to be completed by June, 2007. All work will be completed at Textron's facilities in Louisiana.

About the ASV

The ASV is a 4X4 wheeled armored vehicle that offers exceptional crew protection through the employment of multiple layers of armor that provides defense against medium caliber armor-piercing machine gun fire, large artillery projectile fragments, and land mines. This advanced armor is exceedingly lightweight and allows the vehicle to be able to "roll-on/roll-off" C-130 military transport aircraft. The ASV possesses superior mobility, agility, handling, and ride quality through the utilization of a four-wheel independent suspension system. Textron Cadillac Gage has equipped the U.S. Army Military Police version with a specially designed dual-weapon station that, unlike many other vehicles, enables the crew to load, reload and clear gun jams under full armor protection. Since the introduction of the ASV, Textron Systems has received numerous inquiries from other U.S. military entities, as well as many NATO countries. In response to this demand, Textron has performed studies to determine the ASV's suitability for a variety of missions. With minor modifications and appropriate outfitting, ASV variants include operation as a scout vehicle, armored personnel carrier, reconnaissance, command and recovery vehicle.

About Textron Systems

Textron Systems Corporation provides innovative technology solutions to meet the needs of the global aerospace and defense industries. The company supports military precision engagement and dominant maneuver with strike weapons, mobility and surveillance systems. The Textron name is well known in the areas of advanced weapons, surveillance systems, aircraft control components, specialty marine craft and armored vehicles. Textron Systems Corporation is a subsidiary of Avco Corporation, a subsidiary of Textron Inc.

About Textron Inc.

Textron Inc. (NYSE: TXT) is a $10 billion multi-industry company with 44,000 employees in 40 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.

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] the extent to which Textron is able to achieve savings from its restructuring plans; [b] uncertainty in estimating the amount and timing of restructuring charges and related costs; [c] changes in worldwide economic and political conditions that impact interest and foreign exchange rates; [d] the occurrence of work stoppages and strikes at key facilities of Textron or Textron's customers or suppliers; [e] Textron's ability to perform as anticipated and to control costs under contracts with the U.S. Government; [f] 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; [g] changes in national or international funding priorities and government policies on the export and import of military and commercial products; [h] the adequacy of cost estimates for various customer care programs including servicing warranties; [i] the ability to control costs and successful implementation of various cost reduction programs; [j] the timing of certifications of new aircraft products; [k] the occurrence of slowdowns or downturns in customer markets in which Textron products are sold or supplied or where Textron Financial offers financing; [l] changes in aircraft delivery schedules or cancellation of orders; [m] the impact of changes in tax legislation; [n] 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; [o] Textron's ability to offset, through cost reductions, pricing pressure brought by original equipment manufacturer customers; [p] Textron's ability to realize full value of receivables and investments in securities; [q] the availability and cost of insurance; [r] increases in pension expenses related to lower than expected asset performance or changes in discount rates; [s] Textron Financial's ability to maintain portfolio credit quality; [t] Textron Financial's access to debt financing at competitive rates; [u] uncertainty in estimating contingent liabilities and establishing reserves to address such contingencies; [v] performance of acquisitions; and [w] the efficacy of research and development investments to develop new products.

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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