Textron Might Sell ‘Core Assets’ To Increase Liquidity

AINonline
February 12, 2009, 10:05 AM

Textron has plans to boost liquidity by at least $1 billion in the first half of this year and if successful, said chairman and CEO Lewis Campbell on Tuesday, “We probably won’t have to think about selling any of our core assets.” The Providence, R.I.-based company has already divested itself of a lesser, unidentified asset and is in the process of exiting its finance business. Discussing Cessna in specifics, Campbell said the Wichita-based aircraft manufacturer has experienced “unparalleled order cancellations and deferrals,” and as a result has had to curtail some of its capital and development spending to protect cash flow. Describing Bell Helicopter as “a success story by any measure,” Campbell said there is no “for-sale sign on the front door.” On the other hand, he added that it would be no surprise if Textron got some inquiries from potential buyers for the Fort Worth, Texas-based OEM. Bell, he said, might be one of two big Textron assets up for sale next year if the current strategy to stem losses is unsuccessful.

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