27 Textron Inc. Annual Report • 2013
Factors contributing to the 2012 year-over-year revenue change are provided below:
(Inmillions)
2012 versus
2011
Volume
$
171
Foreign exchange
(80)
Other
24
Total change
$
115
Industrial segment revenues increased $115 million, 4%, in 2012, compared with 2011. Higher volume resulted from a $93
million increase in the Fuel Systems and Functional Components product line, reflecting higher automotive industry demand in
North America, and a $78 million increase in the Other Industrial product lines, largely related to higher market demand in the
Golf, Turf Care and Light TransportationVehicles product line. The unfavorable foreign exchange impact was mostly related to
theweakeningof the euro, which primarily impacted the Fuel Systems andFunctional Components product line.
Operating expenses for the Industrial segment increased $102 million, 4%, in 2012, compared with 2011, largely due to $130
million in higher direct material costs in support of higher sales volume. In 2012, operating expenses were also impacted by cost
inflation of $44 million, primarily due to higher material and overhead costs, partially offset by lower costs due to a favorable
foreign exchange impact of $70million resulting from theweakeningof the euro.
Industrial Segment Profit
Factors contributing to2013 year-over-year segment profit change are providedbelow:
(Inmillions)
2013 versus
2012
Performance
$
39
Volume
9
Inflation, net of pricing
(22)
Other
1
Total change
$
27
Segment profit for the Industrial segment increased $27 million, 13%, in 2013, compared with 2012, primarily due to improved
performance of which $27 million was associated with the Fuel Systems and Functional Components product line. The $22
million unfavorable impact from inflation, net of pricing, was primarily in the Fuel Systems and Functional Components product
line, reflectinghigher compensation andmaterial costs.
Factors contributing to2012 year-over-year segment profit change are providedbelow:
(Inmillions)
2012 versus
2011
Volume
$
31
Inflation, net of pricing
(17)
Other
(1)
Total change
$
13
Segment profit for the Industrial segment increased $13 million, 6%, in 2012, compared with 2011, primarily due to the impact
fromhigher volume as described above, partially offset by cost inflation that exceeded related price increases.
