Textron Recalls Aircraft Engines - Oops - You Can't Pull Over To The Side of The Road.PROVIDENCE, R.I.--Aug. 16, 2002--Textron Inc. today said its Lycoming unit, which manufactures piston engines for general aviation aircraft, has recalled approximately 900 engines to replace potentially faulty crankshafts. These parts were provided by a third party supplier.
Textron estimates that the cost to recall and replace the shafts will be $12 million to $15 million and believes that it may have insurance coverage for a substantial portion of the cost. The company does not believe the recall will have a material impact.
Textron Inc. is a $12 billion multi-industry company with more than 51,000 employees in 40 countries. The company leverages its global network of businesses to provide customers with innovative solutions and services in industries such as aircraft, fastening systems, industrial products, industrial components, and finance. We are known around the world for our powerful brands such as Bell Helicopter, Cessna Aircraft, Kautex, Lycoming, E-Z-GO and Greenlee, among others. More information is available at www.textron.com.
Forward-looking Information: Certain statements in this release and other oral and written statements made by Textron from time to time, are forward-looking statements, including those that discuss strategies, goals, outlook or other non-historical matters; or project revenues, income, returns or other financial measures. These forward-looking statements are subject to risks and uncertainties that may cause actual results to differ materially from those contained in the statements, including the following: (a) the extent to which Textron is able to achieve savings from its restructuring plans, (b) changes in worldwide economic and political conditions that impact interest and foreign exchange rates, (c) the occurrence of work stoppages and strikes at key facilities of Textron or Textron's customers or suppliers, (d) government funding and program approvals affecting products being developed or sold under government programs, (e) cost and delivery performance under various program and development contracts, (f) successful implementation of supply chain and other cost-reduction programs, (g) the timing of certifications of new aircraft products, (h) the occurrence of further downturns in customer markets to which Textron products are sold or supplied, (i) Textron's ability to offset, through cost reductions, raw material price increases and pricing pressure brought by OEM customers and (j) Textron Financial's ability to maintain credit quality and control costs.