Textron Inc. Annual Report • 2013 26
Factors contributing to2012 year-over-year segment profit change are providedbelow:
(Inmillions)
2012 versus
2011
Volume andmix
$
(57)
Impairment charge in2011
41
Performance
4
Other
3
Total change
$
(9)
Segment profit at Textron Systems decreased $9million, 6%, in 2012, comparedwith 2011, reflecting the impact of lower volume
described above and deliveries on lower margin contracts during the current period. The favorable performance reflects a charge
in 2011 of $19million primarily in severance costs related toworkforce reductions, $9million in lower amortization expense on
intangible assets and $8million in lower net research and development costs, partially offset by the $37million in charges related
to theUAS fee-for-service programdescribed above.
TextronSystemsBacklog
In 2013, TextronSystems backlog decreased $116million, 4%, largely due to deliveries in excess of new orders. In 2012, Textron
Systems backlog increased $1.6 billion, 118%, largely due to additional orders in the UAS and Marine & Land product lines,
including theCanadianTAPV contract for $693million.
Industrial
%Change
(Dollars inmillions)
2013
2012
2011
2013
2012
Revenues:
Fuel Systems andFunctional Components
$ 1,853 $ 1,842 $ 1,823
1% 1%
Other Industrial
1,159 1,058
962
10% 10%
Total revenues
3,012 2,900 2,785
4% 4%
Operating expenses
2,770 2,685 2,583
3% 4%
Segment profit
242
215
202
13% 6%
Profitmargin
8%
7%
7%
IndustrialRevenues andOperatingExpenses
Factors contributing to the 2013 year-over-year revenue change are provided below:
(Inmillions)
2013 versus
2012
Volume
$
58
Acquisitions
46
Other
8
Total change
$
112
Industrial segment revenues increased $112 million, 4%, in 2013, compared with 2012, largely due to higher volume of $58
million and the impact from newly acquired companies of $46 million within our Powered Tools, Testing and Measurement
Equipment product line. Higher volume resulted from a $32million increase in the Other Industrial product lines, mostly due to
highermarket demand in theGolf, Turf Care andLight TransportationVehicle product line, and a $26million increase in the Fuel
Systems andFunctional Components line, reflectinghigher automotive industry demand inNorthAmerica.
Operating expenses for the Industrial segment increased $85 million, 3%, in 2013, compared with 2012, largely due to higher
volume and a $43 million impact from newly acquired companies. Operating expenses were also impacted by improved
performance of $27million associatedwith the Fuel Systems and Functional Components product line, whichwas partially offset
by $16millionof inflation in this product line, reflecting higher compensation andmaterial costs.
