Textron CEO-Elect Sees Opportunity In Unpiloted Aircraft
10 October 2009 - 6:31AM
Dow Jones News
Textron Corp. (TXT) is well-positioned to take advantage of
long-term growth of the unpiloted air-vehicle market for defense
and commercial use, Scott Donnelly, president and chief
executive-elect, said in an interview with Dow Jones Newswires
Friday.
"Clearly, we have a couple of very strong platforms with Cessna
and Bell," he said. The two units, which make business jets and
helicopters, offer a strong combination of technology for the
fast-developing UAV market, Donnelly said. Once the businesses are
growing again, they will be top candidates for acquisitions, he
said. Cessna and Bell accounted for 60% of conglomerate Textron's
$12.3 billion of revenue in 2008.
Donnelly is slated to assume the CEO post on Dec. 1, when
long-time chairman and CEO Lewis Campbell becomes nonexecutive
chairman of the board.
Donnelly joined Textron in 2008, after heading General
Electric's (GE) aviation business.
With the onset of the recession and the financial industry
crisis, Donnelly said he spent most of the past year working to
liquidate more than $3 billion of lending assets in Cessna, Bell,
and Textron's golf-equipment unit. The company exited some lending
business to raise cash, and it has also restructured its industrial
businesses to position them for future growth.
Once business picks up, Donnelly said he will pursue
acquisitions of companies with strong brands and leading market
positions. In aerospace, that means focusing on developing
unpiloted air vehicles, or drones, not only for warfare but for
border patrol and other surveillance.
Donnelly spoke by phone from New York Friday, where he was
attending an event for relaunching Cessna's CitationAir
business-jet operator.
-By Ann Keeton, Dow Jones Newswires; 312-750-4120;
ann.keeton@dowjones.com