The U.S. Textron Inc. conglomerate, parent of Bell Helicopter Canada and Cessna, says it might expand beyond aerospace and defence work once its loss-making finance unit is wound down and debt is lowered.
"Once we get our debt down, we want to get back to looking at mergers and acquisitions," Scott Donnelly, CEO-elect, told Bloomberg News September 25.
The finance unit is exiting all areas except those that help sales of helicopters, electric golf carts, Cessna aircraft and other products. Any acquisitions would have to include "strong brands that are unique in their markets," said Donnelly, 47, who succeeds the retiring Lewis Campbell December 1.
He said Textron will look at expanding the Bell Helicopter, Cessna and Textron Systems defence units but "there are other industries out there with attractive technology and service segments."
Textron's shares lost 80 per cent of their value late last year as the recession and banking crisis hit demand for its non-defence products. It slashed its dividend to conserve cash.
Donnelly, who joined Textron last summer as COO after running General Electric Co.'s aviation unit, said Cessna may revive the eight-seater Columbus business jet project once the economy recovers - - work was suspended last April. The company has already said Bell Helicopter Canada's medium-twin 429, built at Mirabel, is winning more orders.
Textron's research budget was seven per cent of sales last year and it could rise in certain segments. "It's always been a key to market share ... but the money must go in the right place," he said.
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