PROVIDENCE, R.I.–(BUSINESS WIRE)– Textron Inc. (NYSE: TXT) today announced that it is reviewing strategic alternatives for its Kautex business unit, which produces fuel systems and other functional components. Textron plans to consider a range of options, including a sale, tax-free spin-off or other transaction. Kautex operates over 30 plants in 14 countries and generated over $2.3 billion in revenue in 2018.
Kautex, headquartered in Bonn, Germany, is a leading developer and manufacturer of blow-molded plastic fuel systems and advanced fuel systems for cars and light trucks, including pressurized fuel tanks for hybrid applications. The unit also develops and manufactures camera/sensor cleaning solutions for automobiles, selective catalytic reduction systems used to reduce emissions from diesel engines as well as produces cast iron engine camshafts, crankshafts and other engine components.
“Kautex is a leading Tier One supplier to global OEMs. It has a long history of product innovation, world-class operations and strong financial performance,” said Scott C. Donnelly, Textron Chairman and Chief Executive Officer. “We are exploring strategic alternatives to see how we can position Kautex to best serve its customers for ongoing success while simultaneously unlocking potential value for our shareholders.”
No decision has been made and there can be no assurance that the process will result in any transaction being announced or completed in the future. The Company has not set a definitive timetable for completion of its review of strategic alternatives and does not intend to make any further announcements related to its review unless and until its Board of Directors has approved a specific transaction or the Company otherwise determines that further disclosure is appropriate.
Textron has retained Goldman Sachs & Co. LLC as financial advisor to assist in its review.
About Textron Inc.
Textron Inc. is a multi-industry company that leverages its global network of aircraft, defense, industrial and finance businesses to provide customers with innovative solutions and services. Textron is known around the world for its powerful brands such as Bell, Cessna, Beechcraft, Hawker, Jacobsen, Kautex, Lycoming, E-Z-GO, Arctic Cat, Textron Systems, and TRU Simulation + Training. For more information visit: www.textron.com
The Boeing Co. is looking at south metro Atlanta for a warehouse and distribution center that could approach 1 million square feet — the latest mega project for the region’s booming logistics sector. The aerospace giant (NYSE: BA) is working with third-party logistics provider XPO Logistics Inc. (NYSE: XPO), which has been touring south metro industrial properties this year and may be focused on Clayton and Henry counties. Industrial real estate developers with projects along the Interstate 75 corridor south of Atlanta have competed for the Boeing facility, which could range from 800,000 square feet initially to eventually more than 1 million square feet. Developers have seen a request for proposals for the project, according to real estate sources familiar with the process.
TOULOUSE,
France (Reuters) – Loved by passengers, feared by accountants, the
world’s largest airliner has run out of runway after Airbus decided to
close A380 production after 12 years in service due to weak sales.
The
decision to halt production of the A380 superjumbo is the final act in
one of Europe’s greatest industrial adventures and reflects a dearth of
orders by airline bosses unwilling to back Airbus’s vision of huge jets
to combat airport congestion.
Air
traffic is growing at a near-record pace but this has mainly generated
demand for twin-engined jets nimble enough to fly directly to where
people want to travel, rather than bulky four-engined jets forcing
passengers to change at hub airports.
And
while loyal supporters like top customer Emirates say the popular
544-seat jet makes money when full, each unsold seat potentially burns a
hole in airline finances because of the fuel needed to keep the huge
double-decker structure aloft.
“It’s
an aircraft that frightens airline CFOs; the risk of failing to sell so
many seats is just too high,” said a senior aerospace industry source
familiar with the program.
Once
hailed as the industrial counterpart to Europe’s single currency, the
demise of a globally recognized European symbol coincides with growing
political strains between Britain, France, Germany and Spain where the
plane is built.
That’s
in stark contrast to the display of European unity and optimism when
the engineering behemoth was unveiled in front of European leaders under
a spectacular light show in 2005.
British
Prime Minister Tony Blair called the A380 a “symbol of economic
strength” while Spanish premier Jose Luis Rodriguez Zapatero called the
rollout “the realization of a dream”.
Passengers
marveled at the European giant with room for 70 cars on its wings,
looking rather like the hump-backed Boeing 747 but with the top section
stretching all the way to the back.
Airlines had initially rushed to place orders, expecting it to lower operating costs and boost profits as the industry crawled out of a slowdown in tourism since September 2001.
Airbus boasted it would sell 700-750 A380s, which nowadays cost $446 million at list prices, and render the 747 obsolete.
In
fact, A380 orders barely crossed the 300 threshold and the 747 has
outlived its rival, after reaching the age of 50 this week.
FALL FROM GRACE
The seeds of the A380’s fall from grace were already present behind the scenes of the 2005 launch party, insiders say.
Despite
public talk of unity, the huge task was about to expose fractures in
Franco-German co-operation that sparked an industrial meltdown. When the
delayed jet finally reached the market in 2007, the global financial
crisis was starting to bite. Scale and opulence were no longer wanted.
Sales slowed.
At
the same time, engine makers who had promised Airbus a decade of
unbeatable efficiencies with their new superjumbo engines were
fine-tuning even more efficient designs for the next generation of
dual-engined planes, competing with the A380.
Finally,
a restless Airbus board started demanding a return and stronger prices
just when the plane desperately needed an aggressive relaunch and fresh
investment, insiders said.
“It was a triple whammy,” said a person close to the debate.
As demand see-sawed, so did the plane’s marketing: starting with luxuries including showers, then vaunting its green credentials with the messianic slogan ‘Saving The Planet One A380 at a Time” before joining the race to squeeze in more people and cut costs.
Yet
despite its own deep industrial problems, Boeing was winning the
argument with its newest jet, the 787 Dreamliner. It was designed to
bypass hubs served by the A380 and open routes between secondary cities:
a strategy known as “point to point”.
Airbus fought back, arguing that travel between megacities would nonetheless dominate air transport.
But
economic growth would splinter in ways Airbus did not predict.
Intermediary cities are growing almost twice as fast as megacities,
according to a 2018 paper posted by the Organisation for Economic
Co-Operation and Development.https://bit.ly/2P28F3h
That’s a boon for twinjets like the Boeing 787 and 777 or Airbus’s own A350, which has outsold the A380 three to one.
Airbus
Chief Executive Tom Enders, who was rarely seen as an enthusiastic
backer of the A380, toyed with ending the project about two years ago
but was persuaded to give it a last chance.
But with Emirates unable to hammer out an engine deal needed to confirm its most recent A380 order, time had finally run out.
“Airbus
tends to think of it as a flagship; Enders looks at it and sees a lack
of orders,” said a person close to the German-born CEO, who steps down
in April.
Some insiders worry that Airbus will lose a valuable symbol of pride and commercial audacity when production ends in 2021.
Now,
airline bosses are seeking assurances that Airbus will support the A380
with spare parts for years to come. Many invested in the A380 as their
flagship while airports also spent heavily on new facilities.
Some customers like Air France and Lufthansa may not shed too many tears, analysts say.
They
too invested in the A380 but may also be relieved to see a potent
weapon removed from Gulf rivals like Emirates, whom they accuse of
flooding the market.
Emirates insists it plays fairly and has called the A380 a “passenger magnet,” misunderstood and badly marketed by rivals.
Its
chairman said on Thursday he was disappointed in the A380’s demise, but
added “we accept that this is the reality of the situation”.
(Reuters) – Boeing Co (BA.N) delivered a record 806 aircraft in 2018 as it overcame supplier woes, retaining the title of the world’s biggest planemaker for the seventh straight year.
The company’s shares rose as much as 3.9 percent to $340.90 and were the biggest percentage gainer on the Dow Jones Industrial Average (.DJI).
European rival Airbus SE (AIR.PA), which will report its numbers on Wednesday and lags behind Boeing due to engine delays, said it achieved its 800-jet target pending final audit.
“Overall, Boeing is taking market share from its main competitor Airbus and is well positioned with strong commercial and military demand,” said CFRA Research analyst Jim Corridore, who upgraded the stock to “strong buy” from “buy”.
Investors and analysts closely watch the number of planes Boeing turns over to airlines and leasing firms for hints on the company’s cashflow and revenue.
The latest numbers indicate that fuselage and engine delays at suppliers in 2018 are largely behind Boeing as it gears up to meet surging demand for airplanes in 2019 amid booming air travel.
“In addition to the ongoing demand for the 737 MAX, we saw strong sales for every one of our twin-aisle airplanes,” said Ihssane Mounir, senior vice president of commercial sales and marketing.
To mitigate supply chain snarls, Boeing helped expand production capacity at suppliers who have hired workers, including retirees this year.
In October, its biggest supplier Spirit AeroSystems Holdings Inc (SPR.N) said it was back on track to meet the surging demand for its aircraft parts.
CFM International, co-owned by France’s Safran (SAF.PA) and General Electric Co (GE.N), also affirmed in the same month its commitment to deliver 1,100 to 1,200 units despite being roughly four weeks behind schedule.
ORDER BOOM
Boeing also looked set to beat Airbus for aircraft orders on a like-for-like basis in 2018 after booking 893 net orders, excluding cancellations in the year.
Meanwhile, Airbus ended November with 380 net orders, to which it has since added confirmed deals for another 220 aircraft.
According to industry sources, it won another 150 from Asian-backed leasing companies that are yet to be announced, with Boeing also getting a lift from Chinese demand.
The Airbus tally, however, included 120 of the former Bombardier CSeries, a Canadian plane programme which it bought last year.
Orders for Boeing and Airbus are seen down compared to 2017 as airlines fret over trade tensions and the slowing global economic growth. But deliveries at both rose on the back of an earlier order boom.
“69 December 737 deliveries suggest (supplier) bottlenecks easing. Solid December book-to-bill closes year at 1.1x and helps mitigate cycle concerns,” Credit Suisse analyst Robert Spingarn said in a client note.
(Reporting by Ankit Ajmera in Bengaluru and Tim Hepher in Paris; Editing by Saumyadeb Chakrabarty and Arun Koyyur)
OMAHA, Neb., Sept. 17, 2018 /PRNewswire/ — Union Pacific today announced its Unified Plan 2020, a new operating plan that implements Precision Scheduled Railroading principles. Unified Plan 2020 will launch Oct. 1 and will be rolled out in phases across the entire Union Pacific rail network.
The plan is an important part of Union Pacific’s objective of operating a safe, reliable and efficient railroad. Resulting benefits are expected to help Union Pacific achieve its 60 percent operating ratio goal by 2020, on the way to achieving a 55 percent operating ratio.