Textron To Cut 3,600 Jobs

Tuesday, January 23rd 2001, 12:00 am

By: News On 6

PROVIDENCE, R.I. (AP) â€” Textron Inc. announced plans Tuesday to cut more than 3,600 jobs, or 5 percent of its global work force, as it restructures its automotive, fastening and industrial divisions.

The company said in October that it planned to close or consolidate about 20 manufacturing sites worldwide due to declining sales in some businesses. But Textron did not release details of layoffs until Tuesday.

The $13 billion holding company has four main divisions: aircraft, automotive, industrial and finance. Products include Cessna airplanes, Bell helicopters, automotive dashboards and golf carts.

Textron has 70,000 employees in 30 countries. The company predicts the job cuts and other changes will save between $100 million and $120 million annually starting in 2002.

The layoffs were announced as Textron reported a loss of $218 million, or $1.53 per share, in the fourth quarter, compared to a profit of $201 million, or $1.33 per share, in the same period last year.

Before restructuring charges, the company reported a 14 percent rise in fourth-quarter earnings, to $185 million, or $1.28 per share, compared to $170 million, or $1.12 per share, the previous year.

That matched the $1.28 a share that analysts surveyed by First Call/Thomson Financial had expected.

In morning trading on the New York Stock Exchange, Textron shares were unchanged at $45.94.

Revenues for the October-December quarter fell to $3.3 billion from $3.4 billion the previous year.

The company said it was hurt in the fourth-quarter by a rapid decline in automotive production and general weakness in the economy. However, Textron also saw a 24 percent increase in Cessna orders to 415 for the year, and a $100 million increase in orders for commercial helicopters.

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On the Web:

Textron site: http://www.textron.com