Textron Inc. is an American industrial
conglomerate
Conglomerate or conglomeration may refer to:
* Conglomerate (company)
* Conglomerate (geology)
* Conglomerate (mathematics)
In popular culture:
* The Conglomerate (American group), a production crew and musical group founded by Busta Rhymes
** Co ...
based in
Providence, Rhode Island
Providence is the capital and most populous city of the U.S. state of Rhode Island. One of the oldest cities in New England, it was founded in 1636 by Roger Williams, a Reformed Baptist theologian and religious exile from the Massachusetts Bay ...
. Textron's subsidiaries include
Arctic Cat
Arctic Cat is an American brand of snowmobiles and all-terrain vehicles manufactured in Thief River Falls, Minnesota. The company was formed in 1960 and is now part of Textron Inc. Arctic Cat designs, engineers, manufactures and markets all-terr ...
,
Bell Textron,
Textron Aviation (which itself includes the
Beechcraft
Beechcraft is an American brand of civil aviation and military aircraft owned by Textron Aviation since 2014, headquartered in Wichita, Kansas. Originally, it was a brand of Beech Aircraft Corporation, an American manufacturer of general aviati ...
, and
Cessna
Cessna () is an American brand of general aviation aircraft owned by Textron Aviation since 2014, headquartered in Wichita, Kansas. Originally, it was a brand of the Cessna Aircraft Company, an American general aviation aircraft manufacturing c ...
brands), and
Lycoming Engines
Lycoming Engines is a major American manufacturer of aircraft engines. With a factory in Williamsport, Pennsylvania, Lycoming produces a line of horizontally opposed, air-cooled, four, six and eight-cylinder engines including the only FAA-certi ...
. It was founded by
Royal Little
Royal Little (March 1, 1896 – January 10, 1989) was the founder and chair of Textron, and is considered to be the father of conglomerates.
Little graduated from Noble & Greenough School in 1915 and from Harvard University in 1919, despite ...
in 1923 as the Special Yarns Company. In 2020, Textron employed over 33,000 people in 25 different countries.
The company ranked 265th on the 2021
''Fortune'' 500 of the largest United States corporations by revenue.
History
Early history
Textron started as a textile company in 1923, when 27-year-old
Royal Little
Royal Little (March 1, 1896 – January 10, 1989) was the founder and chair of Textron, and is considered to be the father of conglomerates.
Little graduated from Noble & Greenough School in 1915 and from Harvard University in 1919, despite ...
founded the Special Yarns Corporation in
Boston, Massachusetts. The company manufactured synthetic
yarn
Yarn is a long continuous length of interlocked fibres, used in sewing, crocheting, knitting, weaving, embroidery, ropemaking, and the production of textiles. Thread is a type of yarn intended for sewing by hand or machine. Modern manufact ...
s, a niche product at the time. By the start of
World War II
World War II or the Second World War, often abbreviated as WWII or WW2, was a world war that lasted from 1939 to 1945. It involved the vast majority of the world's countries—including all of the great powers—forming two opposin ...
, the company was known as Atlantic Rayon Corporation and manufactured
parachute
A parachute is a device used to slow the motion of an object through an atmosphere by creating drag or, in a ram-air parachute, aerodynamic lift. A major application is to support people, for recreation or as a safety device for aviators, who ...
s. As war production wound down, the company started making civilian products as well and was renamed Textron: “Tex" for "textiles" and "tron" from synthetics such as "Lustron". The company was listed on the
NYSE
The New York Stock Exchange (NYSE, nicknamed "The Big Board") is an American stock exchange in the Financial District, Manhattan, Financial District of Lower Manhattan in New York City. It is by far the List of stock exchanges, world's largest s ...
in 1947.
Royal Little began the process of turning Textron into a conglomerate in 1953, with the purchase of Burkart Manufacturing Company (upholstery filling for automotive industry) in September 1953, followed by the purchase of Dalmo-Victor (airborne Radar Antennae) and MB Manufacturing Company in early 1954. The push for diversification would see Textron purchase various other manufacturing companies. In 1960, the company also bought Bell Aerospace and E-Z-Go.
The textile division was sold to
Deering Milliken in 1963.
Later CEOs included
G. William Miller
George William Miller (March 9, 1925 – March 17, 2006) was an American businessman and investment banker who served as the 65th United States secretary of the treasury from 1979 to 1981. A member of the Democratic Party, he also served as the 11 ...
(1968–1977), Joseph Collinson (1977–1979) and Robert P. Straetz (1979–1986). In 1984, Textron took on more debt and bought
Avco, a conglomerate almost as big as itself. Later on, James Hardymon took over as CEO.
Campbell era
James Hardymon brought in
Lewis B. Campbell
Lewis B. Campbell is the former interim CEO of Navistar International Corporation and the former CEO of Textron. He received a BSE from Duke University in 1968. After graduation, he began his career at Inland Manufacturing Division of General Moto ...
, who became CEO in 1998. Starting in 2000, Campbell led a company-wide restructuring program. The share price fell to as low as $13/share in March 2003 after the economic downturn following the collapse of Internet companies and the
terrorist attacks on the World Trade Center. Diminished demand for helicopters and airplanes led to layoffs at
Cessna
Cessna () is an American brand of general aviation aircraft owned by Textron Aviation since 2014, headquartered in Wichita, Kansas. Originally, it was a brand of the Cessna Aircraft Company, an American general aviation aircraft manufacturing c ...
and
Bell Textron. In 2004, ''
Forbes
''Forbes'' () is an American business magazine owned by Integrated Whale Media Investments and the Forbes family. Published eight times a year, it features articles on finance, industry, investing, and marketing topics. ''Forbes'' also re ...
'' magazine named Campbell as the fifth worst-performing CEO in the country.
In 2007, the ''
Wall Street Journal
''The Wall Street Journal'' is an American business-focused, international daily newspaper based in New York City, with international editions also available in Chinese and Japanese. The ''Journal'', along with its Asian editions, is published ...
'' reported that Campbell had received $494,700 in compensation in the form of his use of a corporate jet to travel between his home and office, which made him the most expensive CEO in the country in terms of use of jet travel. Some shareholders have questioned whether it is a good use of shareholder dollars to pay for the personal lifestyle choice of the CEO to live in one state and work in another. Shares in Textron plummeted to as low as $10.09 per share in the aftermath of the
2008 economic downturn
The Great Recession was a period of marked general decline, i.e. a recession, observed in national economies globally that occurred from late 2007 into 2009. The scale and timing of the recession varied from country to country (see map). At t ...
, driving its market capitalization down to just $3.17 billion. While the company lost 75% of its value in the first ten years of Campbell's leadership, he managed to take home over $120 million in compensation. His salary in 2008 was $25 million, making him the highest paid executive of a conglomerate. Campbell managed to sell over $40 million in Textron stock in April and May 2008, at prices over $60 per share.
After Campbell
Scott C. Donnelly
Scott C. Donnelly (born 1961) is the Chief executive officer, CEO of Textron. Before joining Textron, Donnelly was the Chief executive officer, CEO for GE Aviation, General Electric Aviation, a producer of jet engines for Commercial aircraft, co ...
became CEO in December 2009.
Textron acquired Mechtronix in
Montreal, Quebec and OPINICUS in
Tampa, Florida
Tampa () is a city on the Gulf Coast of the United States, Gulf Coast of the U.S. state of Florida. The city's borders include the north shore of Tampa Bay and the east shore of Old Tampa Bay. Tampa is the largest city in the Tampa Bay area and ...
, in 2013. Donnelly combined these flight simulation companies, along with Textron’s AAI Logistics & Technical Services, to form TRU Simulation & Training in 2014.
On December 26, 2013, Textron agreed to purchase
Beechcraft
Beechcraft is an American brand of civil aviation and military aircraft owned by Textron Aviation since 2014, headquartered in Wichita, Kansas. Originally, it was a brand of Beech Aircraft Corporation, an American manufacturer of general aviati ...
, including the discontinued Hawker jet line, for $1.4 billion. The sale closed in March 2014.
The company formed a new company called
Textron Aviation to market the products of Beechcraft,
Cessna
Cessna () is an American brand of general aviation aircraft owned by Textron Aviation since 2014, headquartered in Wichita, Kansas. Originally, it was a brand of the Cessna Aircraft Company, an American general aviation aircraft manufacturing c ...
and Hawker as individual
brand
A brand is a name, term, design, symbol or any other feature that distinguishes one seller's good or service from those of other sellers. Brands are used in business, marketing, and advertising for recognition and, importantly, to create an ...
s.
From 2013 to 2016,
R&D investments were 4.3%, 4.0%, 4.6% and 4.2% of its revenues ($13.78 billion in 2016) and totaled more than $2.2 billion as it develops seven aircraft: the
Bell 525 Relentless,
Bell V-280 Valor tiltrotor,
Cessna Citation Longitude
The Cessna Citation Longitude is a business jet produced by Cessna, part of the Cessna Citation family.
Announced at the May 2012 EBACE, the Model 700 made its first flight on October 8, 2016, with certification obtained in September 2019.
The ...
,
Cessna Citation Hemisphere,
Cessna Denali
The Beechcraft Denali, also known as the Model 220 and previously the Cessna Denali and Textron "Single Engine Turboprop" (SETP), is an American single engine turboprop aircraft under development by Textron Aviation. Announced at EAA AirVent ...
single-engine turboprop, the
Cessna SkyCourier
The Cessna 408 SkyCourier is an American utility aircraft designed and built by Textron Aviation.
It was launched on November 28, 2017 with an order for 50 from FedEx Express.
It made its first flight on May 17, 2020, and was type certified o ...
twin cargo hauler and the
Textron Scorpion
The Textron AirLand Scorpion is an American jet aircraft proposed for sale to perform light attack and Intelligence, surveillance and reconnaissance (ISR) duties. It is being developed by Textron AirLand, a joint venture between Textron and ...
close support jet after the certification of the
Bell 505 Jet Ranger X.
In March 2022, Textron agreed to acquire
Pipistrel
Pipistrel d.o.o Ajdovščina is a Slovenian light aircraft manufacturer established in 1989Or 1989... --> by Ivo Boscarol and based in Ajdovščina. Its facilities are located in Ajdovščina, Slovenia, and near the town of Gorizia, Italy. By Ma ...
, an electrically powered aircraft manufacturer based in Italy and Slovenia.
On April 5, 2022, U.S. authorities announced criminal as well as civil charges in a Manhattan federal court against the former head of a now-defunct London-based company, Xcalibur Aerospace Ltd., for making a fraudulent bid to buy Textron Inc (TXT.N) for $13.8 billion. The Department of Justice and the SEC claimed that Xcalibur Aerospace was never in a position to complete a tender offer for Textron and lacked the finances to do so.
Divisions
Able Aerospace Services
Able Aerospace Services is an international business and $70 million aerospace enterprise that is performing more than 8,000 proprietary
FAA
The Federal Aviation Administration (FAA) is the largest transportation agency of the U.S. government and regulates all aspects of civil aviation in the country as well as over surrounding international waters. Its powers include air traffic m ...
-approved repairs on aircraft and components.
ATAC
Airborne Tactical Advantage Company
Airborne Tactical Advantage Company (ATAC), is a government contractor based in Newport News, Virginia, USA. It operates Dassault Mirage F1, Mk-58 Hawker Hunter, Israeli F-21 Kfir, A-4 Skyhawk, and L-39 Albatros II military aircraft in tactical ...
(ATAC) is a government contractor based in
Newport News,
Virginia
Virginia, officially the Commonwealth of Virginia, is a state in the Mid-Atlantic and Southeastern regions of the United States, between the Atlantic Coast and the Appalachian Mountains. The geography and climate of the Commonwealth ar ...
.
Arctic Cat
On March 6, 2017, Textron bought out
Arctic Cat
Arctic Cat is an American brand of snowmobiles and all-terrain vehicles manufactured in Thief River Falls, Minnesota. The company was formed in 1960 and is now part of Textron Inc. Arctic Cat designs, engineers, manufactures and markets all-terr ...
for US$247M. Arctic Cat is a manufacturer of snowmobiles, all-terrain vehicles and
side-by-sides. Textron operates Arctic Cat as a subsidiary of Textron Specialized Vehicles.
Bell Textron
Bell Textron is an American
helicopter
A helicopter is a type of rotorcraft in which lift and thrust are supplied by horizontally spinning rotors. This allows the helicopter to take off and land vertically, to hover, and to fly forward, backward and laterally. These attributes ...
and
rotorcraft manufacturer headquartered in
Fort Worth, Texas
Fort Worth is the fifth-largest city in the U.S. state of Texas and the 13th-largest city in the United States. It is the county seat of Tarrant County, covering nearly into four other counties: Denton, Johnson, Parker, and Wise. According ...
.
E-Z-GO
Acquired by Textron in 1960, E-Z-GO is a designer and manufacturer of light transportation vehicles for golf courses, planned communities, campuses and other uses. Products include electric and internal combustion golf carts,
low speed vehicles and other multipurpose utility vehicles under the E-Z-Go,
Cushman and Bad Boy Buggy brands.
Greenlee
Greenlee Textron is an industrial and electrical tool company headquartered in
Rockford, Illinois
Rockford is a city in Winnebago County, Illinois, located in the far northern part of the state. Situated on the banks of the Rock River, Rockford is the county seat of Winnebago County (a small portion of the city is located in Ogle County). ...
. It was founded in 1862 by brothers Robert and Ralph Greenlee to manufacture their invention, a drill surrounded by four chisel blades, used in making the pockets for a mortise and tenon joint for the furniture industry in Rockford. This device is still used in cabinetmaking. The brothers later diversified into a variety of hand woodworking tools as well as machinery for making wooden barrels. The company was acquired by Textron in 1986. Greenlee produces various wire and cable installation tools that are used in a variety of fields. On April 18, 2018 Textron announced that it would sell its Greenlee brand to
Emerson Electric.
Jacobsen
Textron purchased
Jacobsen Manufacturing
Jacobsen Manufacturing has produced lawn mowers and light-duty tractors in the United States from the early 1920s until around 2020. They were located in Racine, Wisconsin from 1921 to 2001, when they moved to Charlotte, North Carolina. In 2017, J ...
in June 1978 and continued to produce Jacobsen garden tractors into the 1990s. Today, Jacobsen sells various products used for turf care: maintenance equipment, vehicles and other products.
Kautex Textron
Kautex Textron is a supplier to the
automotive industry
The automotive industry comprises a wide range of company, companies and organizations involved in the design, Business development, development, manufacturing, marketing, and selling of motor vehicles. It is one of the world's largest industry ...
. The company produces plastic
fuel systems, selective catalytic reduction systems, windshield and headlamp washer systems and other products. In August 2019, Textron Inc. was looking to spin off or sell this division to focus on higher margin parts of their business.
Textron AirLand
Textron AirLand, LLC is a joint venture between Textron Inc. and AirLand Enterprises, LLC that is currently developing the
Textron AirLand Scorpion
The Textron AirLand Scorpion is an American jet aircraft proposed for sale to perform light attack and Intelligence, surveillance and reconnaissance (ISR) duties. It is being developed by Textron AirLand, a joint venture between Textron and ...
aircraft as a private venture.
Textron Aviation
Textron Aviation is a new venture formed in March 2014 from Beechcraft and Cessna, retaining the Beechcraft, Cessna and Hawker aircraft type names as brands.
*
Beechcraft Corporation
Beechcraft is an American brand of civil aviation and military aircraft owned by Textron Aviation since 2014, headquartered in Wichita, Kansas. Originally, it was a brand of Beech Aircraft Corporation, an American manufacturer of general aviati ...
is an American manufacturer of
general aviation
General aviation (GA) is defined by the International Civil Aviation Organization (ICAO) as all civil aviation aircraft operations with the exception of commercial air transport or aerial work, which is defined as specialized aviation services ...
and
military aircraft
A military aircraft is any fixed-wing or rotary-wing aircraft that is operated by a legal or insurrectionary armed service of any type. Military aircraft can be either combat or non-combat:
* Combat aircraft are designed to destroy enemy equipm ...
, ranging from light, single-engined aircraft to twin-engined turboprop transports and military trainers.
* The
Cessna Aircraft Company is an American general aviation aircraft manufacturing corporation headquartered in
Wichita, Kansas
Wichita ( ) is the largest city in the U.S. state of Kansas and the county seat of Sedgwick County, Kansas, Sedgwick County. As of the 2020 United States census, 2020 census, the population of the city was 397,532. The Wichita metro area had ...
. It was merged into Textron Aviation in March 2014.
Textron eAviation
In March 2022 Textron entered into an agreement to buy
Slovenia
Slovenia ( ; sl, Slovenija ), officially the Republic of Slovenia (Slovene: , abbr.: ''RS''), is a country in Central Europe. It is bordered by Italy to the west, Austria to the north, Hungary to the northeast, Croatia to the southeast, an ...
n aircraft builder
Pipistrel
Pipistrel d.o.o Ajdovščina is a Slovenian light aircraft manufacturer established in 1989Or 1989... --> by Ivo Boscarol and based in Ajdovščina. Its facilities are located in Ajdovščina, Slovenia, and near the town of Gorizia, Italy. By Ma ...
and form a new division for
electric aircraft
An electric aircraft is an aircraft powered by electricity.
Electric aircraft are seen as a way to reduce the environmental effects of aviation, providing zero emissions and quieter flights.
Electricity may be supplied by a variety of methods, ...
development. Pipistrel will continue as a
brand
A brand is a name, term, design, symbol or any other feature that distinguishes one seller's good or service from those of other sellers. Brands are used in business, marketing, and advertising for recognition and, importantly, to create an ...
and retain its existing headquarters and operations in Slovenia and Italy. Textron will invest in the division to hasten future aircraft development and production. Pipistrel's founder and CEO, Ivo Boscarol, will stay on as a minority shareholder and also as the ''Chairman Emeritus''. The purchase was completed in April 2022, for a price of US$235M.
Textron Systems
![USMC-01522](https://upload.wikimedia.org/wikipedia/commons/b/b8/USMC-01522.jpg)
Textron Systems is an aerospace and defense development and manufacturing firm headquartered in Providence, Rhode Island. The company reported 2012 annual sales in the Textron Systems segment as $1.7 billion.
Its operating units are:
*
Support Solutions, Electronic Solutions, Unmanned Systems (
Hunt Valley, Maryland)
* Advanced Information Solutions (
Austin, Texas
Austin is the capital city of the U.S. state of Texas, as well as the county seat, seat and largest city of Travis County, Texas, Travis County, with portions extending into Hays County, Texas, Hays and Williamson County, Texas, Williamson co ...
)
* Geospatial Solutions (
Sterling, Virginia
Sterling, Virginia, refers most specifically to a census-designated place (CDP) in Loudoun County, Virginia, United States. The population of the CDP as of the 2010 United States Census was 27,822. The CDP boundaries are confined to a relatively s ...
)
*
Lycoming Engines
Lycoming Engines is a major American manufacturer of aircraft engines. With a factory in Williamsport, Pennsylvania, Lycoming produces a line of horizontally opposed, air-cooled, four, six and eight-cylinder engines including the only FAA-certi ...
(
Williamsport, Pennsylvania)
*
Marine & Land Systems (
Slidell, Louisiana)
* TRU Simulation & Training (
Tampa, Florida
Tampa () is a city on the Gulf Coast of the United States, Gulf Coast of the U.S. state of Florida. The city's borders include the north shore of Tampa Bay and the east shore of Old Tampa Bay. Tampa is the largest city in the Tampa Bay area and ...
)
* Weapon & Sensor Systems (
Wilmington, Massachusetts): a maker of weapons such as anti-vehicle mines
and surveillance systems.
Textron bought and acquired
AAI Corporation in 2007, which has now evolved into the Support Solutions, Electronic Systems and Unmanned Systems business units mentioned above. AAI Corporation has developed and fielded products such as the
RQ-7B Shadow UAV and various ground control technologies such as the One System Ground Control Station (OSGCS) and the Universal Ground Control Station (UGCS).
References
External links
*
{{Authority control
1923 establishments in Massachusetts
American companies established in 1923
Automotive companies of the United States
Companies listed on the New York Stock Exchange
Conglomerate companies established in 1923
Conglomerate companies of the United States
Defense companies of the United States
Manufacturing companies based in Providence, Rhode Island
Textile mills in the United States