PROVIDENCE (BUSINESS WIRE) — Providence-based Textron is eliminating 5 percent of its worldwide workforce. The company today reported a quarterly net loss of $218 million, and said it intends to restructure its automotive, fastening systems and industrial products segments, resulting in the elimination of 3,600 jobs, or 5 percent of its workforce.
The company said it expects the restructuring will save it $100 to $120 million annually beginning in 2002, with $50 to $70 million realized in 2001. All planned actions will take place by the end of 2001, the company said.
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Textron reported quarterly earnings per share from continuing operations before special charges of $1.28, an increase of 14 percent from $1.12 for the same period last year. After special charges, the company lost $1.53 per share for the quarter, compared to a $1.33 gain during the same period last year.
The company’s fourth quarter income from continuing operations before special charges was $185 million, compared to $170 million for the same period last year. After special charges, Textron lost $218 million in the fourth quarter, compared to a $201 million gain during the corresponding quarter of 1999.
For the year, earnings per share from continuing operations before special charges rose 15 percent to $4.65 per share from $4.05 last year. After special charges, earnings per share were $1.49, compared to $14.48 per share for last year.
Income from continuing operations before special charges was $680 million versus $623 million last year. After special charges, the company’s net income was $218 million for the year, compared to $2.226 billion for 1999.
The special charges include $366 million in charges related to the restructuring program and $117 million in write-downs of e-business investments. The charges resulted in the company’s net loss for the quarter, Textron said.
