<PAGE> 1
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934
January 25, 1996
--------------------------------
(Date of earliest event reported)
TEXTRON INC.
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(Exact name of Registrant as specified in its charter)
DELAWARE 1-5480 05-0315468
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(State of (Commission File No.) (IRS Employer
Incorporation) Identification No.)
40 Westminster Street, Providence, Rhode Island 02903
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(Address of principal executive offices, including zip code)
(401) 421-2800
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(Registrant's telephone number, including area code)
N/A
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(Former name or former address, if changed since last report)
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ITEM 5. OTHER EVENTS.
On January 25, 1996, the Company issued a press
release announcing consolidated results for the fourth quar-
ter and fiscal year ended December 30, 1995. The press
release stated that revenues for the quarter were $2.659
billion, as compared with $2.377 billion for the correspond-
ing period in 1994, that net income for the quarter was $127
million, as compared with $112 million for the corresponding
period in 1994, and that earnings per share were $1.45, as
compared with $1.26 per share for the corresponding period
in 1994. The press release further stated that revenues for
fiscal year 1995 were $9.973 billion, as compared with
fiscal 1994 revenues of $9.683 billion, that net income for
fiscal year 1995 was $479 million, as compared with $433
million for fiscal 1994, and that earnings per share were
$5.51, as compared with $4.80 per share for fiscal 1994.
A statement of the Company's consolidated results
for the fourth quarter and fiscal year ended December 30,
1995 and comparative results for the corresponding periods
in 1994, a breakdown of such results by business segment and
a business segment analysis, which were released concurrently
with such press release, are filed herewith as Exhibit 1 and
incorporated herein by reference.
ITEM 7. FINANCIAL STATEMENTS AND EXHIBITS.
(c) Exhibits.
<TABLE>
Exhibit No. Exhibit
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<S> <C>
1 Textron Inc. Fourth Quarter and Year Reve-
nues and Income, Textron Inc. Revenues and
Income By Business Segment Fourth Quarter
and Year and Textron Segment Analysis, as
announced on January 25, 1996
</TABLE>
2
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SIGNATURES
Pursuant to the requirements of the Securities
Exchange Act of 1934, the registrant has duly caused this
report to be signed on its behalf by the undersigned
hereunto duly authorized.
TEXTRON INC.
(Registrant)
By /s/ William P. Janovitz
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William P. Janovitz
Vice President Financial Reporting
Dated: February 1, 1996
3
<PAGE> 4
INDEX TO EXHIBITS
<TABLE>
Exhibit No. Exhibit
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<S> <C>
1 Textron Inc. Fourth Quarter and Year Reve-
nues and Income, Textron Inc. Revenues and
Income By Business Segment Fourth Quarter
and Year and Textron Segment Analysis, as
announced on January 25, 1996
</TABLE>
4
<PAGE> 1
TEXTRON INC.
FOURTH QUARTER AND YEAR
(Dollars in millions except per share amounts)
<TABLE>
<CAPTION>
Fourth Quarter Year
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December 30, December 31, December 30, December 31,
1995 1994 1995 1994
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<S> <C> <C> <C> <C>
Revenues $ 2,659 $ 2,377 $ 9,973 $ 9,683
========== ========== ========== ==========
Income before income taxes $ 215 $ 215 $ 813 $ 754
Income taxes (85) (101) (321) (308)
Elimination of minority interest
in net income of Paul Revere (3) (2) (13) (13)
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Net income $ 127 $ 112 $ 479 $ 433
========== ========== ========== ==========
Income per share $ 1.45 $ 1.26 $ 5.51 $ 4.80
========== ========== ========== ==========
Average shares outstanding 87,345,000 89,120,000 86,894,000 90,119,000
========== ========== ========== ==========
</TABLE>
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TEXTRON INC.
REVENUES AND INCOME BY BUSINESS SEGMENT
FOURTH QUARTER AND YEAR
(In millions)
<TABLE>
<CAPTION>
Fourth Quarter Year
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December 30, December 31, December 30, December 31,
1995 1994 1995 1994
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<S> <C> <C> <C> <C>
REVENUES
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MANUFACTURING:
Aircraft $ 633 $ 597 $2,419 $2,186
Automotive 405 404 1,576 1,557
Industrial 395 318 1,421 1,395
Systems and Components 272 275 1,052 1,540
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1,705 1,594 6,468 6,678
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FINANCIAL SERVICES:
Finance 524 445 1,985 1,672
Paul Revere 430 338 1,520 1,331
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954 783 3,505 3,003
------ ------ ------ ------
Total revenues $2,659 $2,377 $9,973 $9,681
====== ====== ====== ======
INCOME
- ------
MANUFACTURING:
Aircraft $ 66 $ 63 $ 237 $ 194
Automotive 39 38 138 139
Industrial 42 29 162 142
Systems and Components 19 43 85 99
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166 173 622 574
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FINANCIAL SERVICES:
Finance 93 84 365 331
Paul Revere 33 24 123 131
------ ------ ------ ------
126 108 488 462
------ ------ ------ ------
Segment operating income 292 281 1,110 1,036
Corporate expenses and other - net (26) (20) (98) (78)
Interest expense - net (51) (46) (199) (204)
------ ------ ------ ------
Income before income taxes $ 215 $ 215 $ 813 $ 754
====== ====== ====== ======
</TABLE>
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TEXTRON SEGMENT ANALYSIS
AIRCRAFT
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The Aircraft segment's revenues and income for the fourth quarter increased 6%
and 5% respectively. For the year, income increased 22% on an 11% increase in
revenues.
Bell Helicopter's revenues and income increased for both the quarter and the
year due to higher international aircraft sales, including deliveries under a
100-unit order to the Canadian Forces. The year also benefited from higher
revenues under the V-22 engineering and manufacturing development contract.
For the year, these positive factors were partially offset by increased product
development expenses on the new model 407. Backlog decreased to $2.0 billion
from $2.4 billion at the end of 1994, reflecting deliveries under the Canadian
Forces contract and performance under the V-22 contract.
Cessna Aircraft's revenues increased for both the quarter and the year due to
higher sales of aircraft. Income decreased for the quarter reflecting
increased product development expenses related to the Bravo and Excel Citation
aircraft. For the year, however, Cessna's income increased as higher product
development expenses were more than offset by the benefit of higher sales,
lower bid and proposal expenses and lower product support costs. Backlog
increased to $1.5 billion from $1.4 billion at year-end 1994.
AUTOMOTIVE
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Revenues and income for the quarter and year approximated last year's levels.
These results were achieved despite a reduction in North American automotive
production, reflecting higher production of models with Textron content.
Textron's average dollar content per car and light truck built in North America
increased to $116 from $112 in 1994.
INDUSTRIAL
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For the quarter, revenues and income increased 24% and 45% respectively and for
the year they increased 2% and 14% respectively.
The increase in revenues and income for both periods was due to higher sales in
the fastening systems business, reflecting the acquisitions of Elco Industries
and Friedr. Boesner GmbH, higher sales in the contractor tool business and
higher sales and better performance in the turf-care business. In addition,
the year's results included Avdel for the full year in 1995 compared with nine
months in 1994. Excluding the impact of the divestiture of the Homelite
division (in August 1994), revenues and income for the full year increased 18%
and 26% respectively.
<PAGE> 4
SYSTEMS AND COMPONENTS
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For the quarter, revenues were essentially unchanged while income decreased 56%.
Revenues and income decreased 32% and 14% respectively, for the year. Both
periods in 1994 included the Textron Lycoming Engine division, which was sold in
October 1994. The operating margin increased to 8.1% for the year from 6.4% in
1994.
For the year, excluding the impact of that division and the effects of certain
provisions in 1994, revenues and income both decreased 9%. The decrease in
revenues and income on the remaining businesses was primarily due to reduced
shipments on certain commercial aerospace and U.S. government contracts.
FINANCE
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Income for the quarter increased 11% on an 18% increase in revenues. For the
year, revenues and income increased 19% and 10% respectively.
Avco Financial Services' results increased for both periods, reflecting a
higher level of consumer finance receivables and an increase in the
contribution from the insurance operations. These factors were partially
offset by an increase in the cost of funds and an increase in the level of
charge-offs. AFS' charge-off ratio increased to 2.10% for the year from 1.99%
in 1994.
The results for Textron's commercial finance division, Textron Financial
Corporation, increased for both periods due to a higher level of finance
receivables and higher yields on finance receivables, partially offset by an
increase in the cost of funds. Full year results also benefited from a lower
level of charge-offs.
PAUL REVERE
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Revenues increased 27% and 14% for the quarter and full year respectively,
primarily due to increased premiums in individual and group disability
insurance and higher net investment income, including net realized investment
gains. Income decreased 6% for the year while it increased 38% for the
quarter.
Income for the quarter was positively impacted by higher premium revenues and a
lower benefit ratio in the individual disability line. Fourth quarter results
included $60 million of net realized investment gains and losses of $62 million
in the excess-risk reinsurance line, including reserve strengthening, as a
result of a loss recognition study.
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For the quarter, the individual disability insurance benefit ratio, excluding
reserve strengthening in the excess risk reinsurance line was 81.5% compared
with 92.3% in the fourth quarter of 1994, and better than the 83.5% experienced
in the third quarter of 1995. The corresponding ratio for the full year was
85.3% compared with 83.8% in 1994, which was the principal reason for the
decrease in income for the year.
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