Textron
Inc., the maker of Cessna airplanes, will write down its Collins &
Aikman Corp. stake by $23 million in the fourth quarter after an
80 percent drop in that company’s shares this year.
Collins & Aikman, an automotive-parts maker, paid
$1.28 billion for Textron’s parts unit in December 2001, including
18 million shares. A reverse stock split then reduced the holding
to 7.2 million shares, Textron said in a statement.
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Collin’s & Aikman shares fell 49 percent on Aug. 5 after the
Troy, Michigan-based company reported a $20.3 million second-
quarter loss, mainly because of costs from repurchasing preferred
stock from Textron.
Textron is expected to earn $1.01 a share in the fourth
quarter, the average estimate of eight analysts surveyed by
Thomson First Call. The company had net income of $257 million, or
$1.81 a share, in the same quarter in 2001.
Shares of Providence, Rhode Island-based Textron have risen 2.8 percent this year.
Heartland Industrial Partners LP, a New York-based buyout
firm, owns about 33 percent of Collins & Aikman’s 84 million
shares outstanding.
Bloomberg News
