Textron

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Category: Business and Industry

Date Submitted: 02/10/2015 02:31 PM

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Enterprise Risk Management at Textron[1]

1. Overview

Textron is a publicly traded industrial conglomerate operating in the defense and aerospace sectors. Revenue in 2008 approximated $14.5 billion, with Cessna Aircraft and Bell Helicopter divisions accounting for 60% of gross revenue. The other divisions or Textron include Textron Systems, Industrial, and Textron Finance[2]. The individual business units are treated as stand-alone profit centers, each responsible for its own budget, strategy, and operating decisions, with coordination and oversight from a central management committee. With the exception of the Finance group, all business units are manufacturing and service concerns. Textron operates in 28 countries with over 43,000 employees. Textron operates 72 manufacturing plants within the US and another 37 in 19 countries outside the US. Fifty-six manufacturing plants are owned and the balance leased. Year over year revenue growth was 13% in 2008, with sales in the United States accounting for 62% of revenues.

The Bell Helicopter division (20% of Textron revenue and 19% of operating profit in 2008) is the world’s third largest manufacturer of rotary-wing aircraft. Bell manufactures advanced helicopters for the US military, military users outside the US, and commercial helicopters for corporate, police, fire, rescue, medical, and utility customers. Bell Helicopter also has an agreement to work with Boeing, Inc. to manufacture and support the V-22 Osprey tilt-rotor aircraft for US military use, with 98 units delivered as of year-end 2008. Bell Helicopter has an installed base of over 13,000 aircraft and provides parts, services and support to the owners. Manufacturing plants are located in Fort Worth, Amarillo, and Corpus Christi, Texas; Ozark, Alabama; Bristol, Tennessee; and Mirabel, Quebec.

Cessna manufactures private and corporate jets, single engine planes, and after-market parts. Cessna accounts for 40% of sales and 61% of profit for...