Conglomerates are often penalized because analysts like companies they can fit into specific industry groups. And Textron is tough to pigeonhole. It's a broad mix, but all together, the pieces are producing solid results. The aircraft division is flying highest, with revenue up 22 percent and profits up 40 percent in the third quarter. The outlook is quite bright, with order backlogs rising modestl y for both Cessna airplanes and Bell helicopters, and profit margins improving slightly.
Prospects are also attractive for the smallest division, financial services.
The other two divisions have been performing much less impressively because of the developing economic slowdown. Automotive showed only a 1 percent revenue gain in the third quarter. And though the industrial division managed 15 percent revenue growth in the quarter, income actually decreased 2 percent. In addition to the weak economy, a spate of recent acquisitions has temporarily depressed that division's profitability. Textron expects the economy to remain sluggish going into 2001.