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Wednesday, 01/30/2002

TXT - E.I. DuPont

Company Description

Bell Helicopter Textron is the world's leader in commercial helicopter production and is the pioneer of tiltrotor aircraft development. With Bell helicopters flying in over 120 countries, Bell has earned a worldwide reputation for reliability, service and value.

Cessna Aircraft Company is the leading worldwide manufacturer of light and mid-size business jets. Every 20 seconds, a Cessna Citation takes off or lands somewhere in the world. Cessna is also the leading manufacturer of single-engine piston aircraft.

Textron Automotive Company is a leading global independent supplier of instrument panels and plastic fuel tanks, and a major supplier of plastic interior/exterior trim and functional components for cars and light trucks made in North America. Textron Automotive Company has manufacturing facilities in 15 countries.

Textron Golf, Turf & Specialty Products comprises E-Z-GO Textron, the golf-car industry leader; Jacobsen Textron, the choice of top turf-care professionals around the world; and Ransomes Textron, a leader in turf-care and utility vehicles.

Textron Systems provides and manufactures advanced systems for defense and aerospace applications, sensor-based, autonomous, real-time control systems, and specialty marine and land vehicles. Textron Systems products are also designed for select commercial applications in telecommunications, agriculture and industrial markets.

Textron Fastening Systems is the global leader in fastening systems plastic injection molding solutions markets, with sales, manufacturing and engineering facilities on four continents and customers in over 40 countries.

Textron Financial , with nearly $8 billion in managed receivables, is a diversified commercial finance company supporting the sale of Textron and third-party products, and providing an array of third-party financial services. Textron Financial has achieved 22 consecutive years of net income improvement.

(Source: Textron)

Reasons To Invest

Reading the company's business description, it should be easy to discern that Textron is diversified. Its breadth makes Textron levered to the broader economy.

The company announced a broad restructuring last fall, which included the shuffling of upper-management. With the turnaround in place, the company could sail into 2002 on the back of the strengthening economy.

Textron has committed to growing its businesses over the long-term. The company's aim is to focus on its market leading businesses and brands, through which it will leverage and grow earnings.

Even through the difficulty of last year, Textron was able to generate more than $12 billion in sales. With that number, the stock trades about 0.50 times sales. Its book value is a chunky $27 per share.

In a strong economy, Textron should be able to leverage its brands for big earnings. The company has the potential to earn $5 per share next year if the economy rebounds at a healthy rate. Its attractive valuation and earnings potential is underscored by the company's $1.30 annual dividend.

DRIP Information:
Shares to Qualify = 1           Accept Foreign Accounts: Yes
Auto-reinvestment = Yes         Temper Enrollment Serv:  Yes

Min/Max Investment = $25 to $12,000/year

Reinvestment Fees -

Div : 0
Cash: 0
Auto: $1

Transfer Agent:

First Chicago Trust

1-800-519-3111

Industry Group:      Diversified  52-week high=$60.47
Annual Dividend Per Share=  1.30  52-week low =$31.29
Last earnings 01/20   est = 0.44  actual = 0.47
Next earnings 04-23   est = 0.47  versus = 1.00
                                     P/E =   38
Analyst Ratings:
Strong Buy    = 2
Moderate Buy  = 3
Hold          = 6
Moderate Sell = 0
Strong Sell   = 0

 
 

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