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<SEC-DOCUMENT>0000217346-03-000005.txt : 20030416
<SEC-HEADER>0000217346-03-000005.hdr.sgml : 20030416
<ACCEPTANCE-DATETIME>20030416081009
ACCESSION NUMBER:		0000217346-03-000005
CONFORMED SUBMISSION TYPE:	8-K
PUBLIC DOCUMENT COUNT:		2
CONFORMED PERIOD OF REPORT:	20030329
ITEM INFORMATION:		Regulation FD Disclosure
FILED AS OF DATE:		20030416

FILER:

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			TEXTRON INC
		CENTRAL INDEX KEY:			0000217346
		STANDARD INDUSTRIAL CLASSIFICATION:	AIRCRAFT & PARTS [3720]
		IRS NUMBER:				050315468
		STATE OF INCORPORATION:			DE
		FISCAL YEAR END:			1231

	FILING VALUES:
		FORM TYPE:		8-K
		SEC ACT:		1934 Act
		SEC FILE NUMBER:	001-05480
		FILM NUMBER:		03651647

	BUSINESS ADDRESS:	
		STREET 1:		40 WESTMINSTER ST
		CITY:			PROVIDENCE
		STATE:			RI
		ZIP:			02903
		BUSINESS PHONE:		4014212800

	MAIL ADDRESS:	
		STREET 1:		40 WESTMINSTER ST
		CITY:			PROVIDENCE
		STATE:			RI
		ZIP:			02903

	FORMER COMPANY:	
		FORMER CONFORMED NAME:	AMERICAN TEXTRON INC
		DATE OF NAME CHANGE:	19710510
</SEC-HEADER>
<DOCUMENT>
<TYPE>8-K
<SEQUENCE>1
<FILENAME>eightk.htm
<DESCRIPTION>CURRENT REPORT
<TEXT>
<html>

<head>
<title>UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON</title>
</head>

<body>

<p ALIGN="CENTER">&nbsp;</p>
<p ALIGN="CENTER">&nbsp;</p>
<p ALIGN="CENTER">UNITED STATES SECURITIES AND EXCHANGE COMMISSION<br>
WASHINGTON, D.C. 20549<br>
</p>
<p ALIGN="CENTER">FORM 8&#45;K<br>
CURRENT REPORT<br>
</p>
<p ALIGN="CENTER">Pursuant to Section 13 or 15(d) of the<br>
Securities Exchange Act of 1934<br>
</p>
<p ALIGN="CENTER">&nbsp;</p>
<u>
<p ALIGN="CENTER">April 16, 2003<br>
(Date of earliest event reported)<br>
</p>
<p ALIGN="CENTER">TEXTRON INC.<br>
</u>(Exact name of Registrant as specified in its charter)<br>
</p>
<div align="center">
  <center>
<table CELLSPACING="1" CELLPADDING="1" WIDTH="631">
  <tr>
    <td WIDTH="28%" VALIGN="TOP">
      <p ALIGN="CENTER" style="border-bottom-style: solid; border-bottom-width: 1">Delaware</td>
    <td WIDTH="7%" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="40%" VALIGN="TOP">
      <p ALIGN="CENTER" style="border-bottom-style: solid; border-bottom-width: 1">I&#45;5480</td>
    <td WIDTH="3%" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="23%" VALIGN="TOP">
      <p ALIGN="CENTER" style="border-bottom-style: solid; border-bottom-width: 1">05&#45;0315468</td>
  </tr>
  <tr>
    <td WIDTH="28%" VALIGN="TOP">
      <p ALIGN="CENTER">(State of<br>
      Incorporation)</td>
    <td WIDTH="7%" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="40%" VALIGN="TOP">
      <p ALIGN="CENTER">(Commission File No.)</td>
    <td WIDTH="3%" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="23%" VALIGN="TOP">
      <p ALIGN="CENTER">(IRS Employer<br>
      Identification No.)</td>
  </tr>
</table>
  </center>
</div>
<p ALIGN="JUSTIFY">&nbsp;</p>
<p ALIGN="JUSTIFY">&nbsp;</p>
<u>
<p ALIGN="CENTER">&#160;&#160;&#160;40 Westminster Street,
Providence, Rhode Island 02903&#160;&#160;&#160;</p>
</u>
<p ALIGN="CENTER">(Address of principal executive offices, including zip code)</p>
<p ALIGN="CENTER">&nbsp;</p>
<div align="center">
  <center>
<table CELLSPACING="1" CELLPADDING="1" WIDTH="631">
  <tr>
    <td WIDTH="24%" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="57%" VALIGN="TOP">
      <p ALIGN="CENTER" style="border-bottom-style: solid; border-bottom-width: 1">(401) 421&#45;2800</td>
    <td WIDTH="19%" VALIGN="TOP">&nbsp;</td>
  </tr>
  <tr>
    <td WIDTH="24%" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="57%" VALIGN="TOP">
      <p ALIGN="CENTER">(Registrant&#39;s telephone number, including area
      code)</td>
    <td WIDTH="19%" VALIGN="TOP">&nbsp;</td>
  </tr>
</table>
  </center>
</div>
<p ALIGN="CENTER"><br>
<br>
</p>
<div align="center">
  <center>
<table CELLSPACING="1" CELLPADDING="1" WIDTH="631">
  <tr>
    <td WIDTH="19%" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="70%" VALIGN="TOP">
      <p ALIGN="CENTER" style="border-bottom-style: solid; border-bottom-width: 1">N/A</td>
    <td WIDTH="10%" VALIGN="TOP">&nbsp;</td>
  </tr>
  <tr>
    <td WIDTH="19%" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="70%" VALIGN="TOP">
      <p ALIGN="CENTER">(Former name or former address, if changed since last
      report)</td>
    <td WIDTH="10%" VALIGN="TOP">&nbsp;</td>
  </tr>
</table>
  </center>
</div>
<font SIZE="2">
<p>&nbsp;</p>
<p>&nbsp;</p>
</font><b>
<p>Item 9. Regulation FD Disclosure</p>
</b>
<p ALIGN="JUSTIFY">&#160;&#160;&#160;&#160;&#160;The
following information is furnished pursuant to Item 9, &quot;Regulation FD
Disclosure&quot; and Item 12, &quot;Results of Operations and Financial
Condition.&quot;</p>
<p ALIGN="JUSTIFY">&#160;&#160;&#160;&#160;&#160;Attached
and incorporated herein by reference as Exhibit 99 is Textron&#39;s press
release dated April&#160;16, 2003.</p>
<p ALIGN="JUSTIFY">&nbsp;</p>
<p ALIGN="CENTER">SIGNATURES</p>
<p ALIGN="JUSTIFY">&#160;&#160;&#160;&#160;&#160;Pursuant to
the requirements of the Securities Exchange Act of 1934, the registrant has duly
caused this report to be signed on its behalf by the undersigned hereunto duly
authorized.</p>
<p ALIGN="JUSTIFY">&nbsp;</p>
<div align="center">
  <center>
<table CELLSPACING="0" CELLPADDING="1" WIDTH="619">
  <tr>
    <td WIDTH="39%" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="9%" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="52%" VALIGN="TOP">
      <p ALIGN="JUSTIFY">TEXTRON INC.</td>
  </tr>
  <tr>
    <td WIDTH="39%" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="9%" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="52%" VALIGN="TOP">
      <p ALIGN="JUSTIFY">&#160;&#160;&#160;&#160;(Registrant)</td>
  </tr>
  <tr>
    <td WIDTH="39%" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="9%" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="52%" VALIGN="TOP">&nbsp;</td>
  </tr>
  <tr>
    <td WIDTH="39%" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="9%" VALIGN="TOP">
      <p ALIGN="JUSTIFY">By:</td>
    <td WIDTH="52%" VALIGN="TOP"><u>
      <p ALIGN="JUSTIFY">s/Michael D. Cahn</u></td>
  </tr>
  <tr>
    <td WIDTH="39%" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="9%" VALIGN="TOP">
      <p ALIGN="JUSTIFY">Name:</td>
    <td WIDTH="52%" VALIGN="TOP">
      <p ALIGN="JUSTIFY">Michael D. Cahn</td>
  </tr>
  <tr>
    <td WIDTH="39%" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="9%" VALIGN="TOP">
      <p ALIGN="JUSTIFY">Title:</td>
    <td WIDTH="52%" VALIGN="TOP">
      <p>Senior Associate General Counsel&#45;Securities<br>
      and Assistant Secretary</td>
  </tr>
  <tr>
    <td WIDTH="39%" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="9%" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="52%" VALIGN="TOP">&nbsp;</td>
  </tr>
  <tr>
    <td WIDTH="39%" VALIGN="TOP">
      <p ALIGN="JUSTIFY">Dated: April 16, 2003</td>
    <td WIDTH="9%" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="52%" VALIGN="TOP">&nbsp;</td>
  </tr>
</table>
  </center>
</div>
<p ALIGN="JUSTIFY">&nbsp;</p>
<font SIZE="2">
<p ALIGN="CENTER">&nbsp;</p>
</font>
<p ALIGN="CENTER">INDEX TO EXHIBITS</p>
<p ALIGN="JUSTIFY">&nbsp;</p>
<p ALIGN="CENTER"><center
<table CELLSPACING="0" CELLPADDING="1" WIDTH="625">
  <u>
      <p ALIGN="JUSTIFY">Exhibit No</u>.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
  <u>Exhibit</u>
      <p ALIGN="JUSTIFY">99&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
      Press release dated April 16, 2003.
</center>
<p ALIGN="JUSTIFY">&nbsp;</p>
<font SIZE="2">
<p>&nbsp;</p>
</font>

</body>

</html>

</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-99
<SEQUENCE>3
<FILENAME>ex.htm
<DESCRIPTION>PRESS RELEASE
<TEXT>
<html>

<head>
<title>TEXTRON INC</title>
</head>

<body>

<b>
<font FACE="Verdana" SIZE="2">
<p>&nbsp;</p>
</font></b>

<b>

<p ALIGN="right"><font face="Verdana" size="2">Exhibit 99</font>
</p>
<div align="center">
  <center>
<table CELLSPACING="0" BORDER="0" CELLPADDING="8" WIDTH="716">
  <tr>
    <td WIDTH="23%" VALIGN="TOP" HEIGHT="23">
      <p><font face="Verdana" size="6" color="#7f7f7f">TEXTRON</font></td>
    <font FACE="Verdana" SIZE="1">

    <td WIDTH="77%" VALIGN="TOP" COLSPAN="2" HEIGHT="23">
      <p></p>
    </td>
  </tr>
  <tr>
    <td WIDTH="23%" VALIGN="TOP"><font FACE="Verdana" SIZE="1" COLOR="#7f7f7f">
      <p>&nbsp;</p>
      <p>&nbsp;</p>
      <p>&nbsp;</p>
      <p>&nbsp;</p>
      <p>&nbsp;</p>
      <p>&nbsp;</p>
      <p>&nbsp;</p>
      <p>&nbsp;</font></td>
    <td WIDTH="44%" VALIGN="TOP"><b><font FACE="Verdana" SIZE="1" COLOR="#7f7f7f">
      <p>Corporate Communications<br>
      Department</font></b></td>
    <td WIDTH="34%" VALIGN="TOP"><font FACE="Verdana" SIZE="1" COLOR="#7f7f7f">
      <p ALIGN="RIGHT"><br>
      <br>
      <br>
      <br>
      <br>
      </font><b><font FACE="Verdana" SIZE="6" COLOR="#7f7f7f">NEWS Release</font></b></td>
  </tr>
  <tr>
    <td WIDTH="23%" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="44%" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="34%" VALIGN="TOP">&nbsp;</td>
  </tr>
</table>
  </center>
  </div>
<font FACE="Verdana" SIZE="1" COLOR="#7f7f7f">
<p>&nbsp;</p>
</font>
<p>&nbsp;</p>
  <div align="center">
    <center>
<table CELLSPACING="0" BORDER="0" CELLPADDING="8" WIDTH="686">
  <tr>
    <td WIDTH="48%" VALIGN="TOP"><b><font FACE="Verdana" SIZE="2">
      <p>Investor Contacts:<br>
      </font></b><font FACE="Verdana" SIZE="2">Doug Wilburne &#45;
      401&#45;457&#45;2353<br>
      Marc Kaplan &#45; 401&#45;457&#45;2502<br>
      </p>
      </font></td>
    <td WIDTH="52%" VALIGN="TOP"><font FACE="Verdana" SIZE="2" COLOR="#7f7f7f">
      <p ALIGN="RIGHT"><br>
      <b>FOR IMMEDIATE RELEASE</b></font></td>
  </tr>
  <tr>
    <td WIDTH="48%" VALIGN="TOP"><b><font FACE="Verdana" SIZE="2">
      <p>Media Contact:</font></b><font FACE="Verdana" SIZE="2"><br>
      Susan Bishop &#45; 401&#45;457&#45;2362<br>
      </font></td>
    <td WIDTH="52%" VALIGN="TOP"><font FACE="Verdana" SIZE="2">
      <p><br>
      <br>
      </font></td>
  </tr>
  <tr>
    <td VALIGN="TOP" COLSPAN="2" HEIGHT="54"><b><font FACE="Verdana">
      <p ALIGN="CENTER">Textron Reports First Quarter Results</p>
      </font></b></td>
  </tr>
</table>
    </center>
  </div>
<font FACE="Verdana" SIZE="2">
<p>&nbsp;</p>
<p>Providence, Rhode Island &#45; April 16, 2003</font><font FACE="Verdana" SIZE="1">
&#45; </font>
</b>
  <font FACE="Verdana" SIZE="2">Textron Inc. (NYSE: TXT) today
reported that first quarter 2003 diluted earnings per share were $0.48 and net
income was $66 million, compared to a first quarter 2002 diluted loss per share
of $3.04 and a net loss of $431 million.</p>
<p>First quarter 2003 revenues were $2.46 billion, up from $2.42 billion in
2002, as higher revenues in Industrial Components, Fastening Systems and Finance
offset lower revenues in Aircraft and Industrial Products.</p>
<p>First quarter 2003 earnings included $0.15 per share in after&#45;tax
costs related to restructuring and a $0.09 per share after&#45;tax gain from
the sale of Textron&#39;s interest in an Italian automotive joint venture.
First quarter 2002 results included $0.07 per share in after&#45;tax costs
related to restructuring and $3.44 per share in charges due to the cumulative
effect of a change in accounting principle.</p>
<p>Excluding these items, first quarter 2003 adjusted diluted earnings per share
were $0.54, compared to $0.47 per share in the first quarter of 2002.</p>
<p>Textron recorded a use of cash before restructuring of $66 million during the
quarter, compared to a use of cash of $209 million a year ago.</p>
<p>&quot;Our results this quarter again demonstrate that we are making clear and
steady progress in reducing our cost structure,&quot; said Lewis B. Campbell,
Textron chairman, president and CEO. &quot;Given the deterioration in the
outlook for many of our end markets during the quarter, we accelerated and
expanded our cost reduction efforts. These actions will not only offset a
portion of the impact of the expected softness in revenues, but will also help
position the company for accelerated performance when end markets improve.&quot;</p>

<b>
<p>Presentation of Results and Outlook<br>
</b>
Textron presents its results and outlook before restructuring costs and other
special items, because such items are outside normal business operations, as
well as difficult to forecast accurately for specific periods. Such items are
either isolated or temporary in nature. Therefore, it is helpful to understand
results without these items, especially when comparing results to previous
periods or forecasting performance in future periods.</p>
<p>For example, in the first quarter of 2003, Textron recognized a $15 million
pre&#45;tax gain on the sale of a joint venture interest. This gain was not
directly related to ongoing business results during the quarter, and a gain such
as this cannot be expected to occur again with any regularity or predictability.</p>
<p>Similarly, Textron incurred $28 million in pre&#45;tax costs during the
first quarter for its restructuring program. The restructuring program, which is
designed to reduce overhead costs and rationalize manufacturing facilities, is
part of a major change in company strategy and will be completed in 2004. During
the execution of the restructuring program, the company is incurring costs that
are supplementary to the ongoing operating costs of the business.</p>
<p>Results before restructuring costs and other special items are also the basis
for measuring operating performance for management compensation purposes.
However, analysis of results and outlook before restructuring costs and other
special items should be used only in conjunction with data presented in
accordance with Generally Accepted Accounting Principles (GAAP). Reconciliations
of the company&#39;s results and outlook to GAAP are attached.</p>

<b>
<p>Outlook<br>
</b>
Textron expects full-year 2003 diluted earnings per share will be between $2.40
and $2.60, with second quarter 2003 diluted earnings per share between $0.65 and
$0.75. These estimates exclude restructuring costs and other special items. The
company expects full-year 2003 free cash flow before
restructuring will be between $300 million and $400 million.</p>

<b>
<p>First Quarter Segment Analysis</p>
<p>Aircraft</p>
</b>
<p>Aircraft segment revenues and profit decreased $49 million and $4 million,
respectively.</p>
<p>Cessna&#39;s revenues decreased $89 million, primarily due to lower
volume of Citation business jets and used aircraft. These decreases were
partially offset by higher pricing. Profit decreased $20 million, primarily due
to the lower sales volume, partially offset by the higher pricing. Backlog at
Cessna decreased to $4.4 billion at the end of the quarter.</p>
<p>Bell Helicopter&#39;s revenues increased $40 million due to higher
commercial revenues, partially offset by lower revenues from the U. S.
Government. Commercial revenues increased primarily due to higher foreign
military sales and higher commercial aircraft sales, partially offset by lower
commercial spares and service sales. U. S. Government revenues decreased, as
higher revenues from the V&#45;22 were more than offset by lower revenues
from other U.S. Government programs. Bell&#39;s profit increased $16
million, primarily due to lower charges for international receivables and
improved profitability on the V&#45;22. Backlog at Bell increased to $1.4
billion at the end of the quarter.</p>

<b>
<p>Fastening Systems</p>
</b>
<p>Fastening Systems&#39; revenues and profit increased $33 million and $8
million, respectively.</p>
<p>Revenues increased primarily due to the favorable impact of foreign exchange
and higher sales volume. Profit increased primarily due to improved cost
performance and foreign exchange, partially offset by an unfavorable sales mix.</p>

<b>
<p>Industrial Products</p>
</b>
<p>Industrial Products&#39; revenues and profit decreased $38 million and $7
million, respectively.</p>
<p>Revenues decreased primarily due to lower sales volume, primarily in the golf
car and turf care businesses, from depressed markets, partially offset by higher
revenues in the aerospace and defense business and higher pricing. Profit
decreased primarily due to the lower sales volume and an unfavorable mix,
partially offset by higher pricing and improved cost performance.</p>

<b>
<p>Industrial Components</p>
</b>
<p>Industrial Components&#39; revenues and profit increased $87 million and
$10 million, respectively.</p>
<p>Revenues increased due to higher sales volume at Kautex and the Fluid and
Power businesses, and the favorable impact of foreign exchange, partially offset
by price reductions. Profit increased primarily due to the higher volume and
improved cost performance, partially offset by price reductions.</p>

<b>
<p>Finance</p>
</b>
<p>Finance segment revenues and profit increased by $6 million and $1 million,
respectively.</p>
<p>Revenues increased primarily due to higher average receivables. Profit
increased primarily due to higher interest margin, as a result of the higher
average receivables, higher pricing and lower borrowing cost, partially offset
by higher legal and collection expenses.</p>

<b>
<u>
<p>Conference Call Information<br>
</u>
</b>
Textron will host a conference call today, April 16, at 9:00 a.m. Eastern
time to discuss the company&#39;s results and outlook. The call will be
available via webcast at www.textron.com or by direct dial at (877)
260&#45;8900 in the U.S. or (651) 291&#45;0561 outside of the U.S.
(request the Textron Earnings Conference). The call will be available for
playback beginning at 12:30 p.m. Eastern time on April 16, by dialing (320)
365&#45;3844 &#45; Access Code: 671440. The recording will be available
until midnight on July 1, 2003.</p>
<p>Textron Inc. is an $11 billion multi&#45;industry company with 49,000
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 and
components and finance. Textron is known around the world for its powerful
brands such as Bell Helicopter, Cessna Aircraft, Kautex, Lycoming,
E&#45;Z&#45;GO and Greenlee, among others. More information is available
at </font><font FACE="Verdana">www.textron.com</font><font FACE="Verdana" SIZE="2">.</p>

<b>
<p ALIGN="CENTER">###</p>
</b>
<i>
<p>Forward&#45;looking Information: Certain statements in this release and
other oral and written statements made by Textron from time to time are
forward&#45;looking statements, including those that discuss strategies,
goals, outlook or other non&#45;historical matters; or project revenues,
income, returns or other financial measures. These forward&#45;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) uncertainty in estimating the amount and timing of
restructuring charges and related costs; (c) changes in worldwide economic and
political conditions that impact interest and foreign exchange rates; (d) the
occurrence of work stoppages and strikes at key facilities of Textron or
Textron&#39;s customers or suppliers; (e) government funding and program
approvals affecting products being developed or sold under government programs;
(f) cost and delivery performance under various program and development
contracts; (g) the adequacy of cost estimates for various customer care programs
including servicing warranties; (h) the ability to control costs and successful
implementation of various cost reduction programs; (i) the timing of
certifications of new aircraft products; (j) the occurrence of further downturns
in customer markets to which Textron products are sold or supplied or where
Textron Financial offers financing; (k) changes in aircraft delivery schedules
or cancellation of orders (l) Textron&#39;s ability to offset, through cost
reductions, raw material price increases and pricing pressure brought by
original equipment manufacturer customers; (m) the availability and cost of
insurance; (n) pension plan income falling below current forecasts; (o) Textron
Financial&#39;s ability to maintain portfolio credit quality; (p) Textron
Financial&#39;s access to debt financing at competitive rates; and (q)
uncertainty in estimating contingent liabilities and establishing reserves
tailored to address such contingencies.</p>
</i></font>

<b>
<p ALIGN="CENTER">&nbsp;
</p>
<p ALIGN="CENTER">TEXTRON INC.<br>
REVENUES AND INCOME BY BUSINESS SEGMENT<br>
THREE MONTHS ENDED MARCH 29, 2003 AND MARCH 30, 2002<br>
</b>
</font><font FACE="Verdana" SIZE="1">(In millions except per share amounts)<br>
(Unaudited)<br>
</p>
</font>
<div align="center">
  <center>
<table CELLSPACING="1" CELLPADDING="1" WIDTH="754">
  <tr>
    <td WIDTH="33%" VALIGN="TOP" HEIGHT="5">
      <p></p>
    </td>
    <td WIDTH="30%" VALIGN="TOP" COLSPAN="5" HEIGHT="5"><b><font FACE="Verdana" SIZE="1">
      <p ALIGN="CENTER">March 29, 2003</font></b></td>
    <td WIDTH="2%" VALIGN="TOP" HEIGHT="5">
      <p>&nbsp;</p>
    </td>
    <td WIDTH="2%" VALIGN="TOP" HEIGHT="5">
      <p>&nbsp;</p>
    </td>
    <td WIDTH="31%" VALIGN="TOP" COLSPAN="5" HEIGHT="5"><b><font FACE="Verdana" SIZE="1">
      <p ALIGN="CENTER">March 30, 2002</font></b></td>
    <td WIDTH="2%" VALIGN="TOP" HEIGHT="5">
      <p></p>
    </td>
  </tr>
  <tr>
    <td WIDTH="33%" VALIGN="TOP" HEIGHT="5" style="border-top-style: solid; border-top-width: 1; border-bottom-style: solid; border-bottom-width: 1">
      <p>&nbsp;</p>
    </td>
    <td WIDTH="14%" VALIGN="TOP" COLSPAN="2" HEIGHT="5" style="border-top-style: solid; border-top-width: 1; border-bottom-style: solid; border-bottom-width: 1"><b><font FACE="Verdana" SIZE="1">
      <p ALIGN="CENTER"><br>
      GAAP</font></b></td>
    <td WIDTH="3%" VALIGN="TOP" HEIGHT="5" style="border-top-style: solid; border-top-width: 1; border-bottom-style: solid; border-bottom-width: 1">
      <p>&nbsp;</p>
    </td>
    <td WIDTH="13%" VALIGN="TOP" COLSPAN="2" HEIGHT="5" style="border-top-style: solid; border-top-width: 1; border-bottom-style: solid; border-bottom-width: 1"><b><font FACE="Verdana" SIZE="1">
      <p ALIGN="CENTER">As<br>
      Adjusted (a)</font></b></td>
    <td WIDTH="2%" VALIGN="TOP" HEIGHT="5" style="border-top-style: solid; border-top-width: 1; border-bottom-style: solid; border-bottom-width: 1">
      <p>&nbsp;</p>
    </td>
    <td WIDTH="2%" VALIGN="TOP" HEIGHT="5" style="border-top-style: solid; border-top-width: 1; border-bottom-style: solid; border-bottom-width: 1">
      <p>&nbsp;</p>
    </td>
    <td WIDTH="15%" VALIGN="TOP" COLSPAN="2" HEIGHT="5" style="border-top-style: solid; border-top-width: 1; border-bottom-style: solid; border-bottom-width: 1"><b><font FACE="Verdana" SIZE="1">
      <p ALIGN="CENTER"><br>
      GAAP</font></b></td>
    <td WIDTH="2%" VALIGN="TOP" HEIGHT="5" style="border-top-style: solid; border-top-width: 1; border-bottom-style: solid; border-bottom-width: 1">
      <p>&nbsp;</p>
    </td>
    <td WIDTH="14%" VALIGN="TOP" COLSPAN="2" HEIGHT="5" style="border-top-style: solid; border-top-width: 1; border-bottom-style: solid; border-bottom-width: 1"><b><font FACE="Verdana" SIZE="1">
      <p ALIGN="CENTER">As<br>
      Adjusted (a)</font></b></td>
    <td WIDTH="2%" VALIGN="TOP" HEIGHT="5" style="border-top-style: solid; border-top-width: 1; border-bottom-style: solid; border-bottom-width: 1">
      <p></p>
    </td>
  </tr>
  <tr>
    <td WIDTH="33%" VALIGN="TOP"><b><font FACE="Verdana" SIZE="1">
      <p>REVENUES</font></b></td>
    <td WIDTH="4%" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="10%" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="3%" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="3%" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="10%" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="2%" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="2%" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="2%" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="12%" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="2%" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="3%" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="11%" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="2%" VALIGN="TOP">&nbsp;</td>
  </tr>
  <tr>
    <td WIDTH="33%" VALIGN="TOP"><font FACE="Verdana" SIZE="1">
      <p>MANUFACTURING:</font></td>
    <td WIDTH="4%" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="10%" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="3%" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="3%" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="10%" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="2%" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="2%" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="2%" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="12%" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="2%" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="3%" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="11%" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="2%" VALIGN="TOP">&nbsp;</td>
  </tr>
  <tr>
    <td WIDTH="33%" VALIGN="TOP"><font FACE="Verdana" SIZE="1">
      <p>&#160;&#160;&#160;&#160;&#160;Aircraft</font></td>
    <td WIDTH="4%" VALIGN="TOP"><font FACE="Verdana" SIZE="1">
      <p ALIGN="RIGHT">$</font></td>
    <td WIDTH="10%" VALIGN="TOP" align="right"><font FACE="Verdana" SIZE="1">
      <p style="margin-right: 20">998</font></td>
    <td WIDTH="3%" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="3%" VALIGN="TOP"><font FACE="Verdana" SIZE="1">
      <p ALIGN="RIGHT">$</font></td>
    <td WIDTH="10%" VALIGN="TOP"><font FACE="Verdana" SIZE="1">
      <p style="margin-right: 20" align="right">998</font></td>
    <td WIDTH="2%" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="2%" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="2%" VALIGN="TOP"><font FACE="Verdana" SIZE="1">
      <p ALIGN="RIGHT">$</font></td>
    <td WIDTH="12%" VALIGN="TOP" align="right"><font FACE="Verdana" SIZE="1">
      <p style="margin-right: 20">1,047</font></td>
    <td WIDTH="2%" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="3%" VALIGN="TOP"><font FACE="Verdana" SIZE="1">
      <p ALIGN="RIGHT">$</font></td>
    <td WIDTH="11%" VALIGN="TOP"><font FACE="Verdana" SIZE="1">
      <p style="margin-right: 20" align="right">1,047</font></td>
    <td WIDTH="2%" VALIGN="TOP">&nbsp;</td>
  </tr>
  <tr>
    <td WIDTH="33%" VALIGN="TOP"><font FACE="Verdana" SIZE="1">
      <p>&#160;&#160;&#160;&#160;&#160;Fastening Systems</font></td>
    <td WIDTH="4%" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="10%" VALIGN="TOP" align="right"><font FACE="Verdana" SIZE="1">
      <p style="margin-right: 20">429</font></td>
    <td WIDTH="3%" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="3%" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="10%" VALIGN="TOP"><font FACE="Verdana" SIZE="1">
      <p style="margin-right: 20" align="right">429</font></td>
    <td WIDTH="2%" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="2%" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="2%" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="12%" VALIGN="TOP" align="right"><font FACE="Verdana" SIZE="1">
      <p style="margin-right: 20">396</font></td>
    <td WIDTH="2%" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="3%" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="11%" VALIGN="TOP"><font FACE="Verdana" SIZE="1">
      <p style="margin-right: 20" align="right">396</font></td>
    <td WIDTH="2%" VALIGN="TOP">&nbsp;</td>
  </tr>
  <tr>
    <td WIDTH="33%" VALIGN="TOP"><font FACE="Verdana" SIZE="1">
      <p>&#160;&#160;&#160;&#160;&#160;Industrial Products</font></td>
    <td WIDTH="4%" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="10%" VALIGN="TOP" align="right"><font FACE="Verdana" SIZE="1">
      <p style="margin-right: 20">430</font></td>
    <td WIDTH="3%" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="3%" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="10%" VALIGN="TOP"><font FACE="Verdana" SIZE="1">
      <p style="margin-right: 20" align="right">430</font></td>
    <td WIDTH="2%" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="2%" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="2%" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="12%" VALIGN="TOP" align="right"><font FACE="Verdana" SIZE="1">
      <p style="margin-right: 20">468</font></td>
    <td WIDTH="2%" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="3%" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="11%" VALIGN="TOP"><font FACE="Verdana" SIZE="1">
      <p style="margin-right: 20" align="right">468</font></td>
    <td WIDTH="2%" VALIGN="TOP">&nbsp;</td>
  </tr>
  <tr>
    <td WIDTH="33%" VALIGN="TOP" style="border-bottom-style: solid; border-bottom-width: 1"><font FACE="Verdana" SIZE="1">
      <p>&#160;&#160;&#160;&#160;&#160;Industrial Components</font></td>
    <td WIDTH="4%" VALIGN="TOP" style="border-bottom-style: solid; border-bottom-width: 1">&nbsp;</td>
    <td WIDTH="10%" VALIGN="TOP" style="border-bottom-style: solid; border-bottom-width: 1" align="right"><font FACE="Verdana" SIZE="1">
      <p style="margin-right: 20">449</font></td>
    <td WIDTH="3%" VALIGN="TOP" style="border-bottom-style: solid; border-bottom-width: 1">&nbsp;</td>
    <td WIDTH="3%" VALIGN="TOP" style="border-bottom-style: solid; border-bottom-width: 1">&nbsp;</td>
    <td WIDTH="10%" VALIGN="TOP" style="border-bottom-style: solid; border-bottom-width: 1"><font FACE="Verdana" SIZE="1">
      <p style="margin-right: 20" align="right">449</font></td>
    <td WIDTH="2%" VALIGN="TOP" style="border-bottom-style: solid; border-bottom-width: 1">&nbsp;</td>
    <td WIDTH="2%" VALIGN="TOP" style="border-bottom-style: solid; border-bottom-width: 1">&nbsp;</td>
    <td WIDTH="2%" VALIGN="TOP" style="border-bottom-style: solid; border-bottom-width: 1">&nbsp;</td>
    <td WIDTH="12%" VALIGN="TOP" style="border-bottom-style: solid; border-bottom-width: 1" align="right"><font FACE="Verdana" SIZE="1">
      <p style="margin-right: 20">362</font></td>
    <td WIDTH="2%" VALIGN="TOP" style="border-bottom-style: solid; border-bottom-width: 1">&nbsp;</td>
    <td WIDTH="3%" VALIGN="TOP" style="border-bottom-style: solid; border-bottom-width: 1">&nbsp;</td>
    <td WIDTH="11%" VALIGN="TOP" style="border-bottom-style: solid; border-bottom-width: 1"><font FACE="Verdana" SIZE="1">
      <p style="margin-right: 20" align="right">362</font></td>
    <td WIDTH="2%" VALIGN="TOP" style="border-bottom-style: solid; border-bottom-width: 1">&nbsp;</td>
  </tr>
  <tr>
    <td WIDTH="33%" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="4%" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="10%" VALIGN="TOP" align="right"><font FACE="Verdana" SIZE="1">
      <p style="margin-right: 20">2,306</font></td>
    <td WIDTH="3%" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="3%" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="10%" VALIGN="TOP"><font FACE="Verdana" SIZE="1">
      <p style="margin-right: 20" align="right">2,306</font></td>
    <td WIDTH="2%" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="2%" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="2%" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="12%" VALIGN="TOP" align="right"><font FACE="Verdana" SIZE="1">
      <p style="margin-right: 20">2,273</font></td>
    <td WIDTH="2%" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="3%" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="11%" VALIGN="TOP"><font FACE="Verdana" SIZE="1">
      <p style="margin-right: 20" align="right">2,273</font></td>
    <td WIDTH="2%" VALIGN="TOP">&nbsp;</td>
  </tr>
  <tr>
    <td WIDTH="33%" VALIGN="TOP" style="border-bottom-style: solid; border-bottom-width: 1"><font FACE="Verdana" SIZE="1">
      <p>FINANCE</font></td>
    <td WIDTH="4%" VALIGN="TOP" style="border-bottom-style: solid; border-bottom-width: 1">&nbsp;</td>
    <td WIDTH="10%" VALIGN="TOP" style="border-bottom-style: solid; border-bottom-width: 1" align="right"><font FACE="Verdana" SIZE="1">
      <p style="margin-right: 20">151</font></td>
    <td WIDTH="3%" VALIGN="TOP" style="border-bottom-style: solid; border-bottom-width: 1">&nbsp;</td>
    <td WIDTH="3%" VALIGN="TOP" style="border-bottom-style: solid; border-bottom-width: 1">&nbsp;</td>
    <td WIDTH="10%" VALIGN="TOP" style="border-bottom-style: solid; border-bottom-width: 1"><font FACE="Verdana" SIZE="1">
      <p style="margin-right: 20" align="right">151</font></td>
    <td WIDTH="2%" VALIGN="TOP" style="border-bottom-style: solid; border-bottom-width: 1">&nbsp;</td>
    <td WIDTH="2%" VALIGN="TOP" style="border-bottom-style: solid; border-bottom-width: 1">&nbsp;</td>
    <td WIDTH="2%" VALIGN="TOP" style="border-bottom-style: solid; border-bottom-width: 1">&nbsp;</td>
    <td WIDTH="12%" VALIGN="TOP" style="border-bottom-style: solid; border-bottom-width: 1" align="right"><font FACE="Verdana" SIZE="1">
      <p style="margin-right: 20">145</font></td>
    <td WIDTH="2%" VALIGN="TOP" style="border-bottom-style: solid; border-bottom-width: 1">&nbsp;</td>
    <td WIDTH="3%" VALIGN="TOP" style="border-bottom-style: solid; border-bottom-width: 1">&nbsp;</td>
    <td WIDTH="11%" VALIGN="TOP" style="border-bottom-style: solid; border-bottom-width: 1"><font FACE="Verdana" SIZE="1">
      <p style="margin-right: 20" align="right">145</font></td>
    <td WIDTH="2%" VALIGN="TOP" style="border-bottom-style: solid; border-bottom-width: 1">&nbsp;</td>
  </tr>
  <tr>
    <td WIDTH="33%" VALIGN="TOP" style="border-bottom-style: solid"><b><font FACE="Verdana" SIZE="1">
      <p>&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;Total
      revenues</font></b></td>
    <td WIDTH="4%" VALIGN="TOP" style="border-bottom-style: solid"><b><font FACE="Verdana" SIZE="1">
      <p ALIGN="RIGHT">$</font></b></td>
    <td WIDTH="10%" VALIGN="TOP" style="border-bottom-style: solid" align="right"><b><font FACE="Verdana" SIZE="1">
      <p style="margin-right: 20">2,457</font></b></td>
    <td WIDTH="3%" VALIGN="TOP" style="border-bottom-style: solid">&nbsp;</td>
    <td WIDTH="3%" VALIGN="TOP" style="border-bottom-style: solid"><b><font FACE="Verdana" SIZE="1">
      <p ALIGN="RIGHT">$</font></b></td>
    <td WIDTH="10%" VALIGN="TOP" style="border-bottom-style: solid"><font FACE="Verdana" SIZE="1">
      <p style="margin-right: 20" align="right">2,457</font></td>
    <td WIDTH="2%" VALIGN="TOP" style="border-bottom-style: solid">&nbsp;</td>
    <td WIDTH="2%" VALIGN="TOP" style="border-bottom-style: solid">&nbsp;</td>
    <td WIDTH="2%" VALIGN="TOP" style="border-bottom-style: solid"><b><font FACE="Verdana" SIZE="1">
      <p ALIGN="RIGHT">$</font></b></td>
    <td WIDTH="12%" VALIGN="TOP" style="border-bottom-style: solid" align="right"><b><font FACE="Verdana" SIZE="1">
      <p style="margin-right: 20">2,418</font></b></td>
    <td WIDTH="2%" VALIGN="TOP" style="border-bottom-style: solid">&nbsp;</td>
    <td WIDTH="3%" VALIGN="TOP" style="border-bottom-style: solid"><b><font FACE="Verdana" SIZE="1">
      <p ALIGN="RIGHT">$</font></b></td>
    <td WIDTH="11%" VALIGN="TOP" style="border-bottom-style: solid"><b><font FACE="Verdana" SIZE="1">
      <p style="margin-right: 20" align="right">2,418</font></b></td>
    <td WIDTH="2%" VALIGN="TOP" style="border-bottom-style: solid">&nbsp;</td>
  </tr>
  <tr>
    <td WIDTH="33%" VALIGN="TOP"><b><font FACE="Verdana" SIZE="1">
      <p>PROFIT</font></b></td>
    <td WIDTH="4%" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="10%" VALIGN="TOP" align="right">
      <p style="margin-right: 20">&nbsp;</p>
    </td>
    <td WIDTH="3%" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="3%" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="10%" VALIGN="TOP">
      <p style="margin-right: 20" align="right">&nbsp;</p>
    </td>
    <td WIDTH="2%" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="2%" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="2%" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="12%" VALIGN="TOP" align="right">
      <p style="margin-right: 20">&nbsp;</p>
    </td>
    <td WIDTH="2%" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="3%" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="11%" VALIGN="TOP">
      <p style="margin-right: 20" align="right">&nbsp;</p>
    </td>
    <td WIDTH="2%" VALIGN="TOP">&nbsp;</td>
  </tr>
  <tr>
    <td WIDTH="33%" VALIGN="TOP"><font FACE="Verdana" SIZE="1">
      <p>MANUFACTURING: (b)</font></td>
    <td WIDTH="4%" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="10%" VALIGN="TOP" align="right">
      <p style="margin-right: 20">&nbsp;</p>
    </td>
    <td WIDTH="3%" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="3%" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="10%" VALIGN="TOP">
      <p style="margin-right: 20" align="right">&nbsp;</p>
    </td>
    <td WIDTH="2%" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="2%" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="2%" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="12%" VALIGN="TOP" align="right">
      <p style="margin-right: 20">&nbsp;</p>
    </td>
    <td WIDTH="2%" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="3%" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="11%" VALIGN="TOP">
      <p style="margin-right: 20" align="right">&nbsp;</p>
    </td>
    <td WIDTH="2%" VALIGN="TOP">&nbsp;</td>
  </tr>
  <tr>
    <td WIDTH="33%" VALIGN="TOP"><font FACE="Verdana" SIZE="1">
      <p>&#160;&#160;&#160;&#160;&#160;Aircraft</font></td>
    <td WIDTH="4%" VALIGN="TOP"><font FACE="Verdana" SIZE="1">
      <p ALIGN="RIGHT">$</font></td>
    <td WIDTH="10%" VALIGN="TOP" align="right"><font FACE="Verdana" SIZE="1">
      <p style="margin-right: 20">75</font></td>
    <td WIDTH="3%" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="3%" VALIGN="TOP"><font FACE="Verdana" SIZE="1">
      <p ALIGN="RIGHT">$</font></td>
    <td WIDTH="10%" VALIGN="TOP"><font FACE="Verdana" SIZE="1">
      <p style="margin-right: 20" align="right">75</font></td>
    <td WIDTH="2%" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="2%" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="2%" VALIGN="TOP"><font FACE="Verdana" SIZE="1">
      <p ALIGN="RIGHT">$</font></td>
    <td WIDTH="12%" VALIGN="TOP" align="right"><font FACE="Verdana" SIZE="1">
      <p style="margin-right: 20">79</font></td>
    <td WIDTH="2%" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="3%" VALIGN="TOP"><font FACE="Verdana" SIZE="1">
      <p ALIGN="RIGHT">$</font></td>
    <td WIDTH="11%" VALIGN="TOP"><font FACE="Verdana" SIZE="1">
      <p style="margin-right: 20" align="right">79</font></td>
    <td WIDTH="2%" VALIGN="TOP">&nbsp;</td>
  </tr>
  <tr>
    <td WIDTH="33%" VALIGN="TOP"><font FACE="Verdana" SIZE="1">
      <p>&#160;&#160;&#160;&#160;&#160;Fastening Systems</font></td>
    <td WIDTH="4%" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="10%" VALIGN="TOP" align="right"><font FACE="Verdana" SIZE="1">
      <p style="margin-right: 20">18</font></td>
    <td WIDTH="3%" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="3%" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="10%" VALIGN="TOP"><font FACE="Verdana" SIZE="1">
      <p style="margin-right: 20" align="right">18</font></td>
    <td WIDTH="2%" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="2%" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="2%" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="12%" VALIGN="TOP" align="right"><font FACE="Verdana" SIZE="1">
      <p style="margin-right: 20">10</font></td>
    <td WIDTH="2%" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="3%" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="11%" VALIGN="TOP"><font FACE="Verdana" SIZE="1">
      <p style="margin-right: 20" align="right">10</font></td>
    <td WIDTH="2%" VALIGN="TOP">&nbsp;</td>
  </tr>
  <tr>
    <td WIDTH="33%" VALIGN="TOP"><font FACE="Verdana" SIZE="1">
      <p>&#160;&#160;&#160;&#160;&#160;Industrial Products</font></td>
    <td WIDTH="4%" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="10%" VALIGN="TOP" align="right"><font FACE="Verdana" SIZE="1">
      <p style="margin-right: 20">24</font></td>
    <td WIDTH="3%" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="3%" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="10%" VALIGN="TOP"><font FACE="Verdana" SIZE="1">
      <p style="margin-right: 20" align="right">24</font></td>
    <td WIDTH="2%" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="2%" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="2%" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="12%" VALIGN="TOP" align="right"><font FACE="Verdana" SIZE="1">
      <p style="margin-right: 20">31</font></td>
    <td WIDTH="2%" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="3%" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="11%" VALIGN="TOP"><font FACE="Verdana" SIZE="1">
      <p style="margin-right: 20" align="right">31</font></td>
    <td WIDTH="2%" VALIGN="TOP">&nbsp;</td>
  </tr>
  <tr>
    <td WIDTH="33%" VALIGN="TOP" style="border-bottom-style: solid; border-bottom-width: 1"><font FACE="Verdana" SIZE="1">
      <p>&#160;&#160;&#160;&#160;&#160;Industrial Components</font></td>
    <td WIDTH="4%" VALIGN="TOP" style="border-bottom-style: solid; border-bottom-width: 1">&nbsp;</td>
    <td WIDTH="10%" VALIGN="TOP" align="right" style="border-bottom-style: solid; border-bottom-width: 1"><font FACE="Verdana" SIZE="1">
      <p style="margin-right: 20">33</font></td>
    <td WIDTH="3%" VALIGN="TOP" style="border-bottom-style: solid; border-bottom-width: 1">&nbsp;</td>
    <td WIDTH="3%" VALIGN="TOP" style="border-bottom-style: solid; border-bottom-width: 1">&nbsp;</td>
    <td WIDTH="10%" VALIGN="TOP" style="border-bottom-style: solid; border-bottom-width: 1"><font FACE="Verdana" SIZE="1">
      <p style="margin-right: 20" align="right">33</font></td>
    <td WIDTH="2%" VALIGN="TOP" style="border-bottom-style: solid; border-bottom-width: 1">&nbsp;</td>
    <td WIDTH="2%" VALIGN="TOP" style="border-bottom-style: solid; border-bottom-width: 1">&nbsp;</td>
    <td WIDTH="2%" VALIGN="TOP" style="border-bottom-style: solid; border-bottom-width: 1">&nbsp;</td>
    <td WIDTH="12%" VALIGN="TOP" align="right" style="border-bottom-style: solid; border-bottom-width: 1"><font FACE="Verdana" SIZE="1">
      <p style="margin-right: 20">23</font></td>
    <td WIDTH="2%" VALIGN="TOP" style="border-bottom-style: solid; border-bottom-width: 1">&nbsp;</td>
    <td WIDTH="3%" VALIGN="TOP" style="border-bottom-style: solid; border-bottom-width: 1">&nbsp;</td>
    <td WIDTH="11%" VALIGN="TOP" style="border-bottom-style: solid; border-bottom-width: 1"><font FACE="Verdana" SIZE="1">
      <p style="margin-right: 20" align="right">23</font></td>
    <td WIDTH="2%" VALIGN="TOP" style="border-bottom-style: solid; border-bottom-width: 1">&nbsp;</td>
  </tr>
  <tr>
    <td WIDTH="33%" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="4%" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="10%" VALIGN="TOP" align="right"><font FACE="Verdana" SIZE="1">
      <p style="margin-right: 20">150</font></td>
    <td WIDTH="3%" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="3%" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="10%" VALIGN="TOP"><font FACE="Verdana" SIZE="1">
      <p style="margin-right: 20" align="right">150</font></td>
    <td WIDTH="2%" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="2%" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="2%" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="12%" VALIGN="TOP" align="right"><font FACE="Verdana" SIZE="1">
      <p style="margin-right: 20">143</font></td>
    <td WIDTH="2%" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="3%" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="11%" VALIGN="TOP"><font FACE="Verdana" SIZE="1">
      <p style="margin-right: 20" align="right">143</font></td>
    <td WIDTH="2%" VALIGN="TOP">&nbsp;</td>
  </tr>
  <tr>
    <td WIDTH="33%" VALIGN="TOP" style="border-bottom-style: solid; border-bottom-width: 1"><font FACE="Verdana" SIZE="1">
      <p>FINANCE</font></td>
    <td WIDTH="4%" VALIGN="TOP" style="border-bottom-style: solid; border-bottom-width: 1">&nbsp;</td>
    <td WIDTH="10%" VALIGN="TOP" align="right" style="border-bottom-style: solid; border-bottom-width: 1"><font FACE="Verdana" SIZE="1">
      <p style="margin-right: 20">23</font></td>
    <td WIDTH="3%" VALIGN="TOP" style="border-bottom-style: solid; border-bottom-width: 1">&nbsp;</td>
    <td WIDTH="3%" VALIGN="TOP" style="border-bottom-style: solid; border-bottom-width: 1">&nbsp;</td>
    <td WIDTH="10%" VALIGN="TOP" style="border-bottom-style: solid; border-bottom-width: 1"><font FACE="Verdana" SIZE="1">
      <p style="margin-right: 20" align="right">23</font></td>
    <td WIDTH="2%" VALIGN="TOP" style="border-bottom-style: solid; border-bottom-width: 1">&nbsp;</td>
    <td WIDTH="2%" VALIGN="TOP" style="border-bottom-style: solid; border-bottom-width: 1">&nbsp;</td>
    <td WIDTH="2%" VALIGN="TOP" style="border-bottom-style: solid; border-bottom-width: 1">&nbsp;</td>
    <td WIDTH="12%" VALIGN="TOP" align="right" style="border-bottom-style: solid; border-bottom-width: 1"><font FACE="Verdana" SIZE="1">
      <p style="margin-right: 20">22</font></td>
    <td WIDTH="2%" VALIGN="TOP" style="border-bottom-style: solid; border-bottom-width: 1">&nbsp;</td>
    <td WIDTH="3%" VALIGN="TOP" style="border-bottom-style: solid; border-bottom-width: 1">&nbsp;</td>
    <td WIDTH="11%" VALIGN="TOP" style="border-bottom-style: solid; border-bottom-width: 1"><font FACE="Verdana" SIZE="1">
      <p style="margin-right: 20" align="right">22</font></td>
    <td WIDTH="2%" VALIGN="TOP" style="border-bottom-style: solid; border-bottom-width: 1">&nbsp;</td>
  </tr>
  <tr>
    <td WIDTH="33%" VALIGN="TOP"><b><font FACE="Verdana" SIZE="1">
      <p>Segment profit</font></b></td>
    <td WIDTH="4%" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="10%" VALIGN="TOP" align="right"><b><font FACE="Verdana" SIZE="1">
      <p style="margin-right: 20">173</font></b></td>
    <td WIDTH="3%" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="3%" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="10%" VALIGN="TOP"><b><font FACE="Verdana" SIZE="1">
      <p style="margin-right: 20" align="right">173</font></b></td>
    <td WIDTH="2%" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="2%" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="2%" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="12%" VALIGN="TOP" align="right"><b><font FACE="Verdana" SIZE="1">
      <p style="margin-right: 20">165</font></b></td>
    <td WIDTH="2%" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="3%" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="11%" VALIGN="TOP"><b><font FACE="Verdana" SIZE="1">
      <p style="margin-right: 20" align="right">165</font></b></td>
    <td WIDTH="2%" VALIGN="TOP">&nbsp;</td>
  </tr>
  <tr>
    <td WIDTH="33%" VALIGN="TOP"><font FACE="Verdana" SIZE="1">
      <p>Special charges (b) (c)</font></td>
    <td WIDTH="4%" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="10%" VALIGN="TOP" align="right"><font FACE="Verdana" SIZE="1">
      <p style="margin-right: 20">(28)</font></td>
    <td WIDTH="3%" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="3%" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="10%" VALIGN="TOP"><font FACE="Verdana" SIZE="1">
      <p style="margin-right: 20" align="right">&#45;</font></td>
    <td WIDTH="2%" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="2%" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="2%" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="12%" VALIGN="TOP" align="right"><font FACE="Verdana" SIZE="1">
      <p style="margin-right: 20">(14)</font></td>
    <td WIDTH="2%" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="3%" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="11%" VALIGN="TOP"><font FACE="Verdana" SIZE="1">
      <p style="margin-right: 20" align="right">&#45;</font></td>
    <td WIDTH="2%" VALIGN="TOP">&nbsp;</td>
  </tr>
  <tr>
    <td WIDTH="33%" VALIGN="TOP"><font FACE="Verdana" SIZE="1">
      <p>Gain on sale of business</font></td>
    <td WIDTH="4%" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="10%" VALIGN="TOP" align="right"><font FACE="Verdana" SIZE="1">
      <p style="margin-right: 20">15</font></td>
    <td WIDTH="3%" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="3%" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="10%" VALIGN="TOP"><font FACE="Verdana" SIZE="1">
      <p style="margin-right: 20" align="right">&#45;</font></td>
    <td WIDTH="2%" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="2%" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="2%" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="12%" VALIGN="TOP" align="right"><font FACE="Verdana" SIZE="1">
      <p style="margin-right: 20">&#45;</font></td>
    <td WIDTH="2%" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="3%" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="11%" VALIGN="TOP"><font FACE="Verdana" SIZE="1">
      <p style="margin-right: 20" align="right">&#45;</font></td>
    <td WIDTH="2%" VALIGN="TOP">&nbsp;</td>
  </tr>
  <tr>
    <td WIDTH="33%" VALIGN="TOP"><font FACE="Verdana" SIZE="1">
      <p>Corporate expenses and other, net</font></td>
    <td WIDTH="4%" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="10%" VALIGN="TOP" align="right"><font FACE="Verdana" SIZE="1">
      <p style="margin-right: 20">(32)</font></td>
    <td WIDTH="3%" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="3%" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="10%" VALIGN="TOP"><font FACE="Verdana" SIZE="1">
      <p style="margin-right: 20" align="right">(32)</font></td>
    <td WIDTH="2%" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="2%" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="2%" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="12%" VALIGN="TOP" align="right"><font FACE="Verdana" SIZE="1">
      <p style="margin-right: 20">(29)</font></td>
    <td WIDTH="2%" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="3%" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="11%" VALIGN="TOP"><font FACE="Verdana" SIZE="1">
      <p style="margin-right: 20" align="right">(29)</font></td>
    <td WIDTH="2%" VALIGN="TOP">&nbsp;</td>
  </tr>
  <tr>
    <td WIDTH="33%" VALIGN="TOP" style="border-bottom-style: solid; border-bottom-width: 1"><font FACE="Verdana" SIZE="1">
      <p>Interest expense, net</font></td>
    <td WIDTH="4%" VALIGN="TOP" style="border-bottom-style: solid; border-bottom-width: 1">&nbsp;</td>
    <td WIDTH="10%" VALIGN="TOP" align="right" style="border-bottom-style: solid; border-bottom-width: 1"><font FACE="Verdana" SIZE="1">
      <p style="margin-right: 20">(24)</font></td>
    <td WIDTH="3%" VALIGN="TOP" style="border-bottom-style: solid; border-bottom-width: 1">&nbsp;</td>
    <td WIDTH="3%" VALIGN="TOP" style="border-bottom-style: solid; border-bottom-width: 1">&nbsp;</td>
    <td WIDTH="10%" VALIGN="TOP" style="border-bottom-style: solid; border-bottom-width: 1"><font FACE="Verdana" SIZE="1">
      <p style="margin-right: 20" align="right">(24)</font></td>
    <td WIDTH="2%" VALIGN="TOP" style="border-bottom-style: solid; border-bottom-width: 1">&nbsp;</td>
    <td WIDTH="2%" VALIGN="TOP" style="border-bottom-style: solid; border-bottom-width: 1">&nbsp;</td>
    <td WIDTH="2%" VALIGN="TOP" style="border-bottom-style: solid; border-bottom-width: 1">&nbsp;</td>
    <td WIDTH="12%" VALIGN="TOP" align="right" style="border-bottom-style: solid; border-bottom-width: 1"><font FACE="Verdana" SIZE="1">
      <p style="margin-right: 20">(30)</font></td>
    <td WIDTH="2%" VALIGN="TOP" style="border-bottom-style: solid; border-bottom-width: 1">&nbsp;</td>
    <td WIDTH="3%" VALIGN="TOP" style="border-bottom-style: solid; border-bottom-width: 1">&nbsp;</td>
    <td WIDTH="11%" VALIGN="TOP" style="border-bottom-style: solid; border-bottom-width: 1"><font FACE="Verdana" SIZE="1">
      <p style="margin-right: 20" align="right">(30)</font></td>
    <td WIDTH="2%" VALIGN="TOP" style="border-bottom-style: solid; border-bottom-width: 1">&nbsp;</td>
  </tr>
  <tr>
    <td WIDTH="33%" VALIGN="TOP"><font FACE="Verdana" SIZE="1">
      <p>Income from operations before<br>
      &#160;&#160;&#160;&#160;&#160;income taxes and
      distribution<br>
      &#160;&#160;&#160;&#160;&#160;on preferred securities</font></td>
    <td WIDTH="4%" VALIGN="TOP"><font FACE="Verdana" SIZE="1">
      <p ALIGN="RIGHT"><br>
      <br>
      </font></td>
    <td WIDTH="10%" VALIGN="TOP" align="right"><font FACE="Verdana" SIZE="1">
      <p style="margin-right: 20"><br>
      <br>
      104</font></td>
    <td WIDTH="3%" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="3%" VALIGN="TOP"><font FACE="Verdana" SIZE="1">
      <p ALIGN="RIGHT"><br>
      <br>
      </font></td>
    <td WIDTH="10%" VALIGN="TOP"><font FACE="Verdana" SIZE="1">
      <p style="margin-right: 20" align="right"><br>
      <br>
      117</font></td>
    <td WIDTH="2%" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="2%" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="2%" VALIGN="TOP"><font FACE="Verdana" SIZE="1">
      <p ALIGN="RIGHT"><br>
      <br>
      </font></td>
    <td WIDTH="12%" VALIGN="TOP" align="right"><font FACE="Verdana" SIZE="1">
      <p style="margin-right: 20"><br>
      <br>
      92</font></td>
    <td WIDTH="2%" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="3%" VALIGN="TOP"><font FACE="Verdana" SIZE="1">
      <p ALIGN="RIGHT"><br>
      <br>
      </font></td>
    <td WIDTH="11%" VALIGN="TOP"><font FACE="Verdana" SIZE="1">
      <p style="margin-right: 20" align="right"><br>
      <br>
      106</font></td>
    <td WIDTH="2%" VALIGN="TOP">&nbsp;</td>
  </tr>
  <tr>
    <td WIDTH="33%" VALIGN="TOP"><font FACE="Verdana" SIZE="1">
      <p>Income taxes</font></td>
    <td WIDTH="4%" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="10%" VALIGN="TOP" align="right"><font FACE="Verdana" SIZE="1">
      <p style="margin-right: 20">(32)</font></td>
    <td WIDTH="3%" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="3%" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="10%" VALIGN="TOP"><font FACE="Verdana" SIZE="1">
      <p style="margin-right: 20" align="right">(37)</font></td>
    <td WIDTH="2%" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="2%" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="2%" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="12%" VALIGN="TOP" align="right"><font FACE="Verdana" SIZE="1">
      <p style="margin-right: 20">(29)</font></td>
    <td WIDTH="2%" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="3%" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="11%" VALIGN="TOP"><font FACE="Verdana" SIZE="1">
      <p style="margin-right: 20" align="right">(34)</font></td>
    <td WIDTH="2%" VALIGN="TOP">&nbsp;</td>
  </tr>
  <tr>
    <td WIDTH="33%" VALIGN="TOP" style="border-bottom-style: solid; border-bottom-width: 1"><font FACE="Verdana" SIZE="1">
      <p>Distribution on preferred securities<br>
      &#160;&#160;&#160;&#160;&#160;of manufacturing
      subsidiary<br>
      &#160;&#160;&#160;&#160;&#160;trust, net of income
      taxes</font></td>
    <td WIDTH="4%" VALIGN="TOP" style="border-bottom-style: solid; border-bottom-width: 1"><font FACE="Verdana" SIZE="1">
      <p ALIGN="RIGHT"><br>
      <br>
      </font></td>
    <td WIDTH="10%" VALIGN="TOP" align="right" style="border-bottom-style: solid; border-bottom-width: 1"><font FACE="Verdana" SIZE="1">
      <p style="margin-right: 20"><br>
      <br>
      (6)</font></td>
    <td WIDTH="3%" VALIGN="TOP" style="border-bottom-style: solid; border-bottom-width: 1">&nbsp;</td>
    <td WIDTH="3%" VALIGN="TOP" style="border-bottom-style: solid; border-bottom-width: 1"><font FACE="Verdana" SIZE="1">
      <p ALIGN="RIGHT"><br>
      <br>
      </font></td>
    <td WIDTH="10%" VALIGN="TOP" style="border-bottom-style: solid; border-bottom-width: 1"><font FACE="Verdana" SIZE="1">
      <p style="margin-right: 20" align="right"><br>
      <br>
      (6)</font></td>
    <td WIDTH="2%" VALIGN="TOP" style="border-bottom-style: solid; border-bottom-width: 1">&nbsp;</td>
    <td WIDTH="2%" VALIGN="TOP" style="border-bottom-style: solid; border-bottom-width: 1">&nbsp;</td>
    <td WIDTH="2%" VALIGN="TOP" style="border-bottom-style: solid; border-bottom-width: 1"><font FACE="Verdana" SIZE="1">
      <p ALIGN="RIGHT"><br>
      <br>
      </font></td>
    <td WIDTH="12%" VALIGN="TOP" align="right" style="border-bottom-style: solid; border-bottom-width: 1"><font FACE="Verdana" SIZE="1">
      <p style="margin-right: 20"><br>
      <br>
      (6)</font></td>
    <td WIDTH="2%" VALIGN="TOP" style="border-bottom-style: solid; border-bottom-width: 1">&nbsp;</td>
    <td WIDTH="3%" VALIGN="TOP" style="border-bottom-style: solid; border-bottom-width: 1"><font FACE="Verdana" SIZE="1">
      <p ALIGN="RIGHT"><br>
      <br>
      </font></td>
    <td WIDTH="11%" VALIGN="TOP" style="border-bottom-style: solid; border-bottom-width: 1"><font FACE="Verdana" SIZE="1">
      <p style="margin-right: 20" align="right"><br>
      <br>
      (6)</font></td>
    <td WIDTH="2%" VALIGN="TOP" style="border-bottom-style: solid; border-bottom-width: 1">&nbsp;</td>
  </tr>
  <tr>
    <td WIDTH="33%" VALIGN="TOP"><b><font FACE="Verdana" SIZE="1">
      <p>Income before cumulative effect<br>
      &#160;&#160;&#160;&#160;&#160;of change in accounting<br>
      &#160;&#160;&#160;&#160;&#160;principle</font></b></td>
    <td WIDTH="4%" VALIGN="TOP"><b><font FACE="Verdana" SIZE="1">
      <p ALIGN="RIGHT"><br>
      </font></b></td>
    <td WIDTH="10%" VALIGN="TOP" align="right"><b><font FACE="Verdana" SIZE="1">
      <p style="margin-right: 20"><br>
      <br>
      66</font></b></td>
    <td WIDTH="3%" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="3%" VALIGN="TOP"><b><font FACE="Verdana" SIZE="1">
      <p ALIGN="RIGHT"><br>
      <br>
      </font></b></td>
    <td WIDTH="10%" VALIGN="TOP"><b><font FACE="Verdana" SIZE="1">
      <p style="margin-right: 20" align="right"><br>
      <br>
      74</font></b></td>
    <td WIDTH="2%" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="2%" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="2%" VALIGN="TOP"><b><font FACE="Verdana" SIZE="1">
      <p ALIGN="RIGHT"><br>
      </font></b></td>
    <td WIDTH="12%" VALIGN="TOP" align="right"><b><font FACE="Verdana" SIZE="1">
      <p style="margin-right: 20"><br>
      <br>
      57</font></b></td>
    <td WIDTH="2%" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="3%" VALIGN="TOP"><b><font FACE="Verdana" SIZE="1">
      <p ALIGN="RIGHT"><br>
      <br>
      </font></b></td>
    <td WIDTH="11%" VALIGN="TOP"><b><font FACE="Verdana" SIZE="1">
      <p style="margin-right: 20" align="right"><br>
      <br>
      66</font></b></td>
    <td WIDTH="2%" VALIGN="TOP">&nbsp;</td>
  </tr>
  <tr>
    <td WIDTH="33%" VALIGN="TOP" style="border-bottom-style: solid; border-bottom-width: 1"><font FACE="Verdana" SIZE="1">
      <p>Cumulative effect of change in<br>
      &#160;&#160;&#160;&#160;&#160;accounting principle,
      net of<br>
      &#160;&#160;&#160;&#160;&#160;income taxes (d)</font></td>
    <td WIDTH="4%" VALIGN="TOP" style="border-bottom-style: solid; border-bottom-width: 1"><font FACE="Verdana" SIZE="1">
      <p ALIGN="RIGHT"><br>
      <br>
      </font></td>
    <td WIDTH="10%" VALIGN="TOP" align="right" style="border-bottom-style: solid; border-bottom-width: 1"><font FACE="Verdana" SIZE="1">
      <p style="margin-right: 20"><br>
      <br>
      &#45;</font></td>
    <td WIDTH="3%" VALIGN="TOP" style="border-bottom-style: solid; border-bottom-width: 1">&nbsp;</td>
    <td WIDTH="3%" VALIGN="TOP" style="border-bottom-style: solid; border-bottom-width: 1"><font FACE="Verdana" SIZE="1">
      <p ALIGN="RIGHT"><br>
      <br>
      </font></td>
    <td WIDTH="10%" VALIGN="TOP" style="border-bottom-style: solid; border-bottom-width: 1"><font FACE="Verdana" SIZE="1">
      <p style="margin-right: 20" align="right"><br>
      <br>
      &#45;</font></td>
    <td WIDTH="2%" VALIGN="TOP" style="border-bottom-style: solid; border-bottom-width: 1">&nbsp;</td>
    <td WIDTH="2%" VALIGN="TOP" style="border-bottom-style: solid; border-bottom-width: 1">&nbsp;</td>
    <td WIDTH="2%" VALIGN="TOP" style="border-bottom-style: solid; border-bottom-width: 1"><font FACE="Verdana" SIZE="1">
      <p ALIGN="RIGHT"><br>
      <br>
      </font></td>
    <td WIDTH="12%" VALIGN="TOP" align="right" style="border-bottom-style: solid; border-bottom-width: 1"><font FACE="Verdana" SIZE="1">
      <p style="margin-right: 20"><br>
      <br>
      (488)</font></td>
    <td WIDTH="2%" VALIGN="TOP" style="border-bottom-style: solid; border-bottom-width: 1">&nbsp;</td>
    <td WIDTH="3%" VALIGN="TOP" style="border-bottom-style: solid; border-bottom-width: 1"><font FACE="Verdana" SIZE="1">
      <p ALIGN="RIGHT"><br>
      <br>
      </font></td>
    <td WIDTH="11%" VALIGN="TOP" style="border-bottom-style: solid; border-bottom-width: 1"><font FACE="Verdana" SIZE="1">
      <p style="margin-right: 20" align="right"><br>
      <br>
      &#45;</font></td>
    <td WIDTH="2%" VALIGN="TOP" style="border-bottom-style: solid; border-bottom-width: 1">&nbsp;</td>
  </tr>
  <tr>
    <td WIDTH="33%" VALIGN="TOP" style="border-bottom-style: solid"><b><font FACE="Verdana" SIZE="1">
      <p>Net income (loss)</font></b></td>
    <td WIDTH="4%" VALIGN="TOP" style="border-bottom-style: solid"><b><font FACE="Verdana" SIZE="1">
      <p ALIGN="RIGHT">$</font></b></td>
    <td WIDTH="10%" VALIGN="TOP" align="right" style="border-bottom-style: solid"><b><font FACE="Verdana" SIZE="1">
      <p style="margin-right: 20">66</font></b></td>
    <td WIDTH="3%" VALIGN="TOP" style="border-bottom-style: solid">&nbsp;</td>
    <td WIDTH="3%" VALIGN="TOP" style="border-bottom-style: solid"><b><font FACE="Verdana" SIZE="1">
      <p ALIGN="RIGHT">$</font></b></td>
    <td WIDTH="10%" VALIGN="TOP" style="border-bottom-style: solid"><b><font FACE="Verdana" SIZE="1">
      <p style="margin-right: 20" align="right">74</font></b></td>
    <td WIDTH="2%" VALIGN="TOP" style="border-bottom-style: solid">&nbsp;</td>
    <td WIDTH="2%" VALIGN="TOP" style="border-bottom-style: solid">&nbsp;</td>
    <td WIDTH="2%" VALIGN="TOP" style="border-bottom-style: solid"><b><font FACE="Verdana" SIZE="1">
      <p ALIGN="RIGHT">$</font></b></td>
    <td WIDTH="12%" VALIGN="TOP" align="right" style="border-bottom-style: solid"><b><font FACE="Verdana" SIZE="1">
      <p style="margin-right: 20">(431)</font></b></td>
    <td WIDTH="2%" VALIGN="TOP" style="border-bottom-style: solid">&nbsp;</td>
    <td WIDTH="3%" VALIGN="TOP" style="border-bottom-style: solid"><b><font FACE="Verdana" SIZE="1">
      <p ALIGN="RIGHT">$</font></b></td>
    <td WIDTH="11%" VALIGN="TOP" style="border-bottom-style: solid"><b><font FACE="Verdana" SIZE="1">
      <p style="margin-right: 20" align="right">66</font></b></td>
    <td WIDTH="2%" VALIGN="TOP" style="border-bottom-style: solid">&nbsp;</td>
  </tr>
  <tr>
    <td WIDTH="33%" VALIGN="TOP"><b><font FACE="Verdana" SIZE="1">
      <p>Earnings per share: (e)</font></b></td>
    <td WIDTH="4%" VALIGN="TOP"><font size="1">&nbsp;</font></td>
    <td WIDTH="10%" VALIGN="TOP" align="right">
      <p style="margin-right: 20"><font size="1">&nbsp;</font></p>
    </td>
    <td WIDTH="3%" VALIGN="TOP"><font size="1">&nbsp;</font></td>
    <td WIDTH="3%" VALIGN="TOP"><font size="1">&nbsp;</font></td>
    <td WIDTH="10%" VALIGN="TOP">
      <p style="margin-right: 20" align="right"><font size="1">&nbsp;</font></p>
    </td>
    <td WIDTH="2%" VALIGN="TOP"><font size="1">&nbsp;</font></td>
    <td WIDTH="2%" VALIGN="TOP"><font size="1">&nbsp;</font></td>
    <td WIDTH="2%" VALIGN="TOP"><font size="1">&nbsp;</font></td>
    <td WIDTH="12%" VALIGN="TOP" align="right">
      <p style="margin-right: 20"><font size="1">&nbsp;</font></p>
    </td>
    <td WIDTH="2%" VALIGN="TOP"><font size="1">&nbsp;</font></td>
    <td WIDTH="3%" VALIGN="TOP"><font size="1">&nbsp;</font></td>
    <td WIDTH="11%" VALIGN="TOP">
      <p style="margin-right: 20" align="right"><font size="1">&nbsp;</font></p>
    </td>
    <td WIDTH="2%" VALIGN="TOP"><font size="1">&nbsp;</font></td>
  </tr>
  <tr>
    <td WIDTH="33%" VALIGN="TOP"><b><font FACE="Verdana" SIZE="1">
      <p>Income before cumulative effect<br>
      &#160;&#160;&#160;&#160;&#160;of change in accounting<br>
      &#160;&#160;&#160;&#160;&#160;principle</font></b></td>
    <td WIDTH="4%" VALIGN="TOP"><b><font FACE="Verdana" SIZE="1">
      <p ALIGN="RIGHT"><br>
      <br>
      $</font></b></td>
    <td WIDTH="10%" VALIGN="TOP" align="right"><b><font FACE="Verdana" SIZE="1">
      <p style="margin-right: 20"><br>
      <br>
      .48</font></b></td>
    <td WIDTH="3%" VALIGN="TOP"><b><font FACE="Verdana" SIZE="1">
      <p ALIGN="RIGHT"><br>
      <br>
      </font></b></td>
    <td WIDTH="3%" VALIGN="TOP"><b><font FACE="Verdana" SIZE="1">
      <p ALIGN="RIGHT"><br>
      <br>
      $</font></b></td>
    <td WIDTH="10%" VALIGN="TOP"><b><font FACE="Verdana" SIZE="1">
      <p style="margin-right: 20" align="right"><br>
      <br>
      .54</font></b></td>
    <td WIDTH="2%" VALIGN="TOP"><b><font FACE="Verdana" SIZE="1">
      <p ALIGN="CENTER"><br>
      <br>
      </font></b></td>
    <td WIDTH="2%" VALIGN="TOP"><b><font FACE="Verdana" SIZE="1">
      <p ALIGN="CENTER"><br>
      <br>
      </font></b></td>
    <td WIDTH="2%" VALIGN="TOP"><b><font FACE="Verdana" SIZE="1">
      <p ALIGN="RIGHT"><br>
      <br>
      $</font></b></td>
    <td WIDTH="12%" VALIGN="TOP" align="right"><b><font FACE="Verdana" SIZE="1">
      <p style="margin-right: 20"><br>
      <br>
      .40</font></b></td>
    <td WIDTH="2%" VALIGN="TOP"><b><font FACE="Verdana" SIZE="1">
      <p ALIGN="RIGHT"><br>
      <br>
      </font></b></td>
    <td WIDTH="3%" VALIGN="TOP"><b><font FACE="Verdana" SIZE="1">
      <p ALIGN="RIGHT"><br>
      <br>
      $</font></b></td>
    <td WIDTH="11%" VALIGN="TOP"><b><font FACE="Verdana" SIZE="1">
      <p style="margin-right: 20" align="right"><br>
      <br>
      .47</font></b></td>
    <td WIDTH="2%" VALIGN="TOP">&nbsp;</td>
  </tr>
  <tr>
    <td WIDTH="33%" VALIGN="TOP" style="border-bottom-style: solid; border-bottom-width: 1"><font FACE="Verdana" SIZE="1">
      <p>Cumulative effect of change in<br>
      &#160;&#160;&#160;&#160;&#160;accounting principle,
      net of<br>
      &#160;&#160;&#160;&#160;&#160;income taxes (d)</font></td>
    <td WIDTH="4%" VALIGN="TOP" style="border-bottom-style: solid; border-bottom-width: 1"><font FACE="Verdana" SIZE="1">
      <p ALIGN="RIGHT"><br>
      <br>
      </font></td>
    <td WIDTH="10%" VALIGN="TOP" align="right" style="border-bottom-style: solid; border-bottom-width: 1"><font FACE="Verdana" SIZE="1">
      <p style="margin-right: 20"><br>
      <br>
      &#45;</font></td>
    <td WIDTH="3%" VALIGN="TOP" style="border-bottom-style: solid; border-bottom-width: 1">&nbsp;</td>
    <td WIDTH="3%" VALIGN="TOP" style="border-bottom-style: solid; border-bottom-width: 1"><font FACE="Verdana" SIZE="1">
      <p ALIGN="RIGHT"><br>
      <br>
      </font></td>
    <td WIDTH="10%" VALIGN="TOP" style="border-bottom-style: solid; border-bottom-width: 1"><font FACE="Verdana" SIZE="1">
      <p style="margin-right: 20" align="right"><br>
      <br>
      &#45;</font></td>
    <td WIDTH="2%" VALIGN="TOP" style="border-bottom-style: solid; border-bottom-width: 1">&nbsp;</td>
    <td WIDTH="2%" VALIGN="TOP" style="border-bottom-style: solid; border-bottom-width: 1">&nbsp;</td>
    <td WIDTH="2%" VALIGN="TOP" style="border-bottom-style: solid; border-bottom-width: 1"><font FACE="Verdana" SIZE="1">
      <p ALIGN="RIGHT"><br>
      <br>
      </font></td>
    <td WIDTH="12%" VALIGN="TOP" align="right" style="border-bottom-style: solid; border-bottom-width: 1"><font FACE="Verdana" SIZE="1">
      <p style="margin-right: 20"><br>
      <br>
      (3.44)</font></td>
    <td WIDTH="2%" VALIGN="TOP" style="border-bottom-style: solid; border-bottom-width: 1">&nbsp;</td>
    <td WIDTH="3%" VALIGN="TOP" style="border-bottom-style: solid; border-bottom-width: 1"><font FACE="Verdana" SIZE="1">
      <p ALIGN="RIGHT"><br>
      <br>
      </font></td>
    <td WIDTH="11%" VALIGN="TOP" style="border-bottom-style: solid; border-bottom-width: 1"><font FACE="Verdana" SIZE="1">
      <p style="margin-right: 20" align="right"><br>
      <br>
      &#45;</font></td>
    <td WIDTH="2%" VALIGN="TOP" style="border-bottom-style: solid; border-bottom-width: 1">&nbsp;</td>
  </tr>
  <tr>
    <td WIDTH="33%" VALIGN="TOP" style="border-bottom-style: solid"><b><font FACE="Verdana" SIZE="1">
      <p>Net income (loss)</font></b></td>
    <td WIDTH="4%" VALIGN="TOP" style="border-bottom-style: solid"><b><font FACE="Verdana" SIZE="1">
      <p ALIGN="RIGHT">$</font></b></td>
    <td WIDTH="10%" VALIGN="TOP" align="right" style="border-bottom-style: solid"><b><font FACE="Verdana" SIZE="1">
      <p style="margin-right: 20">.48</font></b></td>
    <td WIDTH="3%" VALIGN="TOP" style="border-bottom-style: solid">&nbsp;</td>
    <td WIDTH="3%" VALIGN="TOP" style="border-bottom-style: solid"><b><font FACE="Verdana" SIZE="1">
      <p ALIGN="RIGHT">$</font></b></td>
    <td WIDTH="10%" VALIGN="TOP" style="border-bottom-style: solid"><b><font FACE="Verdana" SIZE="1">
      <p style="margin-right: 20" align="right">.54</font></b></td>
    <td WIDTH="2%" VALIGN="TOP" style="border-bottom-style: solid">&nbsp;</td>
    <td WIDTH="2%" VALIGN="TOP" style="border-bottom-style: solid">&nbsp;</td>
    <td WIDTH="2%" VALIGN="TOP" style="border-bottom-style: solid"><b><font FACE="Verdana" SIZE="1">
      <p ALIGN="RIGHT">$</font></b></td>
    <td WIDTH="12%" VALIGN="TOP" align="right" style="border-bottom-style: solid"><b><font FACE="Verdana" SIZE="1">
      <p style="margin-right: 20">(3.04)</font></b></td>
    <td WIDTH="2%" VALIGN="TOP" style="border-bottom-style: solid">&nbsp;</td>
    <td WIDTH="3%" VALIGN="TOP" style="border-bottom-style: solid"><b><font FACE="Verdana" SIZE="1">
      <p ALIGN="RIGHT">$</font></b></td>
    <td WIDTH="11%" VALIGN="TOP" style="border-bottom-style: solid"><b><font FACE="Verdana" SIZE="1">
      <p style="margin-right: 20" align="right">.47</font></b></td>
    <td WIDTH="2%" VALIGN="TOP" style="border-bottom-style: solid">&nbsp;</td>
  </tr>
  <tr>
    <td WIDTH="33%" VALIGN="TOP" style="border-bottom-style: solid"><font FACE="Verdana" SIZE="1">
      <p>Average diluted shares outstanding</font></td>
    <td WIDTH="14%" VALIGN="TOP" COLSPAN="2" style="border-bottom-style: solid"><font FACE="Verdana" SIZE="1">
      <p style="margin-right: 20" align="right">137,059,000</font></td>
    <td WIDTH="3%" VALIGN="TOP" style="border-bottom-style: solid">
      <p style="margin-right: 20" align="right">&nbsp;</p>
      </td>
    <td WIDTH="13%" VALIGN="TOP" COLSPAN="2" style="border-bottom-style: solid"><font FACE="Verdana" SIZE="1">
      <p style="margin-right: 20" align="right">137,059,000</font></td>
    <td WIDTH="2%" VALIGN="TOP" style="border-bottom-style: solid">
      <p style="margin-right: 20" align="right">&nbsp;</p>
      </td>
    <td WIDTH="2%" VALIGN="TOP" style="border-bottom-style: solid">
      <p style="margin-right: 20" align="right">&nbsp;</p>
      </td>
    <td WIDTH="15%" VALIGN="TOP" COLSPAN="2" style="border-bottom-style: solid"><font FACE="Verdana" SIZE="1">
      <p style="margin-right: 20" align="right">141,961,000</font></td>
    <td WIDTH="2%" VALIGN="TOP" style="border-bottom-style: solid">
      <p style="margin-right: 20" align="right">&nbsp;</p>
      </td>
    <td WIDTH="14%" VALIGN="TOP" COLSPAN="2" style="border-bottom-style: solid"><font FACE="Verdana" SIZE="1">
      <p style="margin-right: 20" align="right">141,961,000</font></td>
    <td WIDTH="2%" VALIGN="TOP" style="border-bottom-style: solid">&nbsp;</td>
  </tr>
</table>
      </center>
      </div>
<font FACE="Verdana" SIZE="1">
<p ALIGN="CENTER">&nbsp;</p>
<b>
<p ALIGN="CENTER">TEXTRON INC.<br>
REVENUES AND INCOME BY BUSINESS SEGMENT<br>
THREE MONTHS ENDED MARCH 29, 2003 AND MARCH 30, 2002<br>
</b>(In millions except per share amounts)<br>
(Unaudited)</p>
<blockquote>
  <p>(a)&#160;&#160;&#160;&#160;&#160;The &quot;As
  Adjusted&quot; column excludes items recorded in special charges, the gain on
  sale of business and the cumulative effect of change in accounting principle.
  Textron presents its results &quot;as adjusted&quot;, before restructuring and
  other special items, because such items are outside normal business
  operations, as well as difficult to forecast accurately for specific periods.
  Such items are either isolated or temporary in nature; therefore, it
  is helpful to understand results without these items, especially when
  comparing results to previous periods or forecasting performance in future
  periods. In addition, Textron utilizes &quot;as adjusted&quot; results to
  measure operating performance for management compensation purposes. Any
  analysis of results before restructuring costs and other special items should
  be used only in conjunction with data presented in accordance with Generally
  Accepted Accounting Principles (GAAP).</p>
  <p>A reconciliation of net income as reported under (GAAP) to net income as
  adjusted is as follows:</p>
</blockquote>
</font>
      <div align="center">
        <center>
<table CELLSPACING="1" CELLPADDING="1" WIDTH="566">
  <tr>
    <td WIDTH="15" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="316" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="191" VALIGN="TOP" COLSPAN="5">&nbsp;</td>
    <td WIDTH="18" VALIGN="TOP">&nbsp;</td>
  </tr>
  <tr>
    <td WIDTH="15" VALIGN="TOP"><font FACE="Verdana" SIZE="1">
      <p></font></td>
    <td WIDTH="316" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="191" VALIGN="TOP" COLSPAN="5"><b><font FACE="Verdana" SIZE="1">
      <p ALIGN="CENTER">First Quarter</font></b></td>
    <td WIDTH="18" VALIGN="TOP">&nbsp;</td>
  </tr>
  <tr>
    <td WIDTH="17" VALIGN="TOP" style="border-top-style: solid; border-top-width: 1; border-bottom-style: solid; border-bottom-width: 1">&nbsp;</td>
    <td WIDTH="318" VALIGN="TOP" style="border-top-style: solid; border-top-width: 1; border-bottom-style: solid; border-bottom-width: 1">&nbsp;</td>
    <td WIDTH="80" VALIGN="TOP" COLSPAN="2" style="border-top-style: solid; border-top-width: 1; border-bottom-style: solid; border-bottom-width: 1"><b><font FACE="Verdana" SIZE="1">
      <p ALIGN="CENTER">2003</font></b></td>
    <td WIDTH="10" VALIGN="TOP" style="border-top-style: solid; border-top-width: 1; border-bottom-style: solid; border-bottom-width: 1">&nbsp;</td>
    <td WIDTH="95" VALIGN="TOP" COLSPAN="2" style="border-top-style: solid; border-top-width: 1; border-bottom-style: solid; border-bottom-width: 1"><b><font FACE="Verdana" SIZE="1">
      <p ALIGN="CENTER">2002</font></b></td>
    <td WIDTH="18" VALIGN="TOP">&nbsp;</td>
  </tr>
  <tr>
    <td WIDTH="15" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="316" VALIGN="TOP"><font FACE="Verdana" SIZE="1">
      <p>GAAP net income (loss)</font></td>
    <td WIDTH="17" VALIGN="TOP"><font FACE="Verdana" SIZE="1">
      <p ALIGN="RIGHT">$</font></td>
    <td WIDTH="55" VALIGN="TOP" align="right"><font FACE="Verdana" SIZE="1">
      <p style="margin-right: 20">66</font></td>
    <td WIDTH="8" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="17" VALIGN="TOP"><font FACE="Verdana" SIZE="1">
      <p ALIGN="RIGHT">$</font></td>
    <td WIDTH="70" VALIGN="TOP"><font FACE="Verdana" SIZE="1">
      <p style="margin-right: 20" align="right">(431)</font></td>
    <td WIDTH="18" VALIGN="TOP">&nbsp;</td>
  </tr>
  <tr>
    <td WIDTH="15" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="316" VALIGN="TOP"><font FACE="Verdana" SIZE="1">
      <p>Adjustments:</font></td>
    <td WIDTH="17" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="55" VALIGN="TOP" align="right">
      <p style="margin-right: 20">&nbsp;</p>
    </td>
    <td WIDTH="8" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="17" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="70" VALIGN="TOP">
      <p style="margin-right: 20" align="right">&nbsp;</p>
    </td>
    <td WIDTH="18" VALIGN="TOP">&nbsp;</td>
  </tr>
  <tr>
    <td WIDTH="15" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="316" VALIGN="TOP"><font FACE="Verdana" SIZE="1">
      <p>&#160;&#160;&#160;&#160;&#160;Gain on sale of
      business</font></td>
    <td WIDTH="17" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="55" VALIGN="TOP" align="right"><font FACE="Verdana" SIZE="1">
      <p style="margin-right: 20">(15)</font></td>
    <td WIDTH="8" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="17" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="70" VALIGN="TOP"><font FACE="Verdana" SIZE="1">
      <p style="margin-right: 20" align="right">&#45;</font></td>
    <td WIDTH="18" VALIGN="TOP">&nbsp;</td>
  </tr>
  <tr>
    <td WIDTH="15" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="316" VALIGN="TOP"><font FACE="Verdana" SIZE="1">
      <p>&#160;&#160;&#160;&#160;&#160;Special charges</font></td>
    <td WIDTH="17" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="55" VALIGN="TOP" align="right"><font FACE="Verdana" SIZE="1">
      <p style="margin-right: 20">28</font></td>
    <td WIDTH="8" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="17" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="70" VALIGN="TOP"><font FACE="Verdana" SIZE="1">
      <p style="margin-right: 20" align="right">14</font></td>
    <td WIDTH="18" VALIGN="TOP">&nbsp;</td>
  </tr>
  <tr>
    <td WIDTH="15" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="316" VALIGN="TOP"><font FACE="Verdana" SIZE="1">
      <p>&#160;&#160;&#160;&#160;&#160;Tax impact of
      excluded items</font></td>
    <td WIDTH="17" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="55" VALIGN="TOP" align="right"><font FACE="Verdana" SIZE="1">
      <p style="margin-right: 20">(5)</font></td>
    <td WIDTH="8" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="17" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="70" VALIGN="TOP"><font FACE="Verdana" SIZE="1">
      <p style="margin-right: 20" align="right">(5)</font></td>
    <td WIDTH="18" VALIGN="TOP">&nbsp;</td>
  </tr>
  <tr>
    <td WIDTH="15" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="316" VALIGN="TOP"><font FACE="Verdana" SIZE="1">
      <p>&#160;&#160;&#160;&#160;&#160;Cumulative effect of
      change in accounting<br>
      &#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;principle,
      net of taxes</font></td>
    <td WIDTH="17" VALIGN="TOP"><font FACE="Verdana" SIZE="1">
      <p ALIGN="RIGHT"><br>
      </font></td>
    <td WIDTH="55" VALIGN="TOP" align="right"><font FACE="Verdana" SIZE="1">
      <p style="margin-right: 20"><br>
      &#45;</font></td>
    <td WIDTH="8" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="17" VALIGN="TOP"><font FACE="Verdana" SIZE="1">
      <p ALIGN="RIGHT"><br>
      </font></td>
    <td WIDTH="70" VALIGN="TOP"><font FACE="Verdana" SIZE="1">
      <p style="margin-right: 20" align="right"><br>
      488</font></td>
    <td WIDTH="18" VALIGN="TOP">&nbsp;</td>
  </tr>
  <tr>
    <td WIDTH="17" VALIGN="TOP" style="border-top-style: solid; border-top-width: 1; border-bottom-style: solid">&nbsp;</td>
    <td WIDTH="318" VALIGN="TOP" style="border-top-style: solid; border-top-width: 1; border-bottom-style: solid"><font FACE="Verdana" SIZE="1">
      <p>Net income, as adjusted</font></td>
    <td WIDTH="19" VALIGN="TOP" style="border-top-style: solid; border-top-width: 1; border-bottom-style: solid"><font FACE="Verdana" SIZE="1">
      <p ALIGN="RIGHT">$</font></td>
    <td WIDTH="57" VALIGN="TOP" style="border-top-style: solid; border-top-width: 1; border-bottom-style: solid" align="right"><font FACE="Verdana" SIZE="1">
      <p style="margin-right: 20">74</font></td>
    <td WIDTH="10" VALIGN="TOP" style="border-top-style: solid; border-top-width: 1; border-bottom-style: solid">&nbsp;</td>
    <td WIDTH="19" VALIGN="TOP" style="border-top-style: solid; border-top-width: 1; border-bottom-style: solid"><font FACE="Verdana" SIZE="1">
      <p ALIGN="RIGHT">$</font></td>
    <td WIDTH="72" VALIGN="TOP" style="border-top-style: solid; border-top-width: 1; border-bottom-style: solid"><font FACE="Verdana" SIZE="1">
      <p style="margin-right: 20" align="right">66</font></td>
    <td WIDTH="18" VALIGN="TOP">&nbsp;</td>
  </tr>
</table>
    </center>
      </div>
<blockquote>
  <font FACE="Verdana" SIZE="1">
  <p>(b)&#160;&#160;&#160;&#160;&#160;Textron adopted
  Statement of Financial Accounting Standard (SFAS) No. 146, &quot;Accounting
  for Costs Associated with Exit or Disposal Activities&quot;, effective
  December 29, 2002. Upon adoption, costs related to restructuring that were
  previously recorded in segment profit are now included with severance costs,
  contract termination costs, and asset impairment write&#45;downs in
  special charges. Costs related to restructuring that were recorded in segment
  profit and prior periods have been reclassified to special charges to conform
  to this presentation.</p>
  <p>(c)&#160;&#160;&#160;&#160;&#160;Special charges
  include restructuring expenses and fixed asset impairment write&#45;downs
  associated with reducing overhead and closing, consolidating and downsizing
  manufacturing facilities, reducing corporate and segment personnel,
  consolidating operations and exiting non&#45;core product lines.</p>
  <p>(d)&#160;&#160;&#160;&#160;&#160;With the
  implementation of SFAS No. 142, Textron recorded a $488 million
  after&#45;tax transitional goodwill impairment charge comprised of $274
  million in the Industrial Products segment, $111 million in the Industrial
  Components segment, $88 million in the Fastening Systems segment and $15
  million in the Finance segment.</p>
  <p>(e)&#160;&#160;&#160;&#160;&#160;Reconciliation of GAAP
  EPS to EPS, as adjusted:</p>
  </blockquote>
</font>
      <div align="center">
        <center>
<table CELLSPACING="1" CELLPADDING="1" WIDTH="770">
  <tr>
    <td WIDTH="2%" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="71%" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="12%" VALIGN="TOP" COLSPAN="2">&nbsp;</td>
    <td WIDTH="2%" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="11%" VALIGN="TOP" COLSPAN="2">&nbsp;</td>
    <td WIDTH="2%" VALIGN="TOP">&nbsp;</td>
  </tr>
  <tr>
    <td WIDTH="2%" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="71%" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="25%" VALIGN="TOP" COLSPAN="5"><b><font FACE="Verdana" SIZE="1">
      <p ALIGN="CENTER">First Quarter</font></b></td>
    <td WIDTH="2%" VALIGN="TOP">&nbsp;</td>
  </tr>
  <tr>
    <td WIDTH="2%" VALIGN="TOP" style="border-top-style: solid; border-top-width: 1; border-bottom-style: solid; border-bottom-width: 1">&nbsp;</td>
    <td WIDTH="71%" VALIGN="TOP" style="border-top-style: solid; border-top-width: 1; border-bottom-style: solid; border-bottom-width: 1">&nbsp;</td>
    <td WIDTH="12%" VALIGN="TOP" COLSPAN="2" style="border-top-style: solid; border-top-width: 1; border-bottom-style: solid; border-bottom-width: 1"><b><font FACE="Verdana" SIZE="1">
      <p ALIGN="CENTER">2003</font></b></td>
    <td WIDTH="2%" VALIGN="TOP" style="border-top-style: solid; border-top-width: 1; border-bottom-style: solid; border-bottom-width: 1">&nbsp;</td>
    <td WIDTH="11%" VALIGN="TOP" COLSPAN="2" style="border-top-style: solid; border-top-width: 1; border-bottom-style: solid; border-bottom-width: 1"><b><font FACE="Verdana" SIZE="1">
      <p ALIGN="CENTER">2002</font></b></td>
    <td WIDTH="2%" VALIGN="TOP" style="border-top-style: solid; border-top-width: 1; border-bottom-style: solid; border-bottom-width: 1">&nbsp;</td>
  </tr>
  <tr>
    <td WIDTH="2%" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="71%" VALIGN="TOP"><font FACE="Verdana" SIZE="1">
      <p>GAAP EPS</font></td>
    <td WIDTH="3%" VALIGN="TOP"><font FACE="Verdana" SIZE="1">
      <p ALIGN="RIGHT">$</font></td>
    <td WIDTH="9%" VALIGN="TOP"><font FACE="Verdana" SIZE="1">
      <p style="margin-right: 20" align="right">.48</font></td>
    <td WIDTH="2%" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="3%" VALIGN="TOP"><font FACE="Verdana" SIZE="1">
      <p ALIGN="RIGHT">$</font></td>
    <td WIDTH="8%" VALIGN="TOP"><font FACE="Verdana" SIZE="1">
      <p style="margin-right: 10" align="right">(3.04)</font></td>
    <td WIDTH="2%" VALIGN="TOP">&nbsp;</td>
  </tr>
  <tr>
    <td WIDTH="2%" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="71%" VALIGN="TOP"><font FACE="Verdana" SIZE="1">
      <p>Adjustments:</font></td>
    <td WIDTH="3%" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="9%" VALIGN="TOP">
      <p style="margin-right: 20" align="right">&nbsp;</p>
    </td>
    <td WIDTH="2%" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="3%" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="8%" VALIGN="TOP">
      <p style="margin-right: 10" align="right">&nbsp;</p>
    </td>
    <td WIDTH="2%" VALIGN="TOP">&nbsp;</td>
  </tr>
  <tr>
    <td WIDTH="2%" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="71%" VALIGN="TOP"><font FACE="Verdana" SIZE="1">
      <p>&#160;&#160;&#160;&#160;&#160;Gain on sale of
      business</font></td>
    <td WIDTH="3%" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="9%" VALIGN="TOP"><font FACE="Verdana" SIZE="1">
      <p style="margin-right: 20" align="right">(.09)</font></td>
    <td WIDTH="2%" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="3%" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="8%" VALIGN="TOP"><font FACE="Verdana" SIZE="1">
      <p style="margin-right: 10" align="right">&#45;</font></td>
    <td WIDTH="2%" VALIGN="TOP">&nbsp;</td>
  </tr>
  <tr>
    <td WIDTH="2%" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="71%" VALIGN="TOP"><font FACE="Verdana" SIZE="1">
      <p>&#160;&#160;&#160;&#160;&#160;Special charges</font></td>
    <td WIDTH="3%" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="9%" VALIGN="TOP"><font FACE="Verdana" SIZE="1">
      <p style="margin-right: 20" align="right">.15</font></td>
    <td WIDTH="2%" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="3%" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="8%" VALIGN="TOP"><font FACE="Verdana" SIZE="1">
      <p style="margin-right: 10" align="right">.07</font></td>
    <td WIDTH="2%" VALIGN="TOP">&nbsp;</td>
  </tr>
  <tr>
    <td WIDTH="2%" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="71%" VALIGN="TOP"><font FACE="Verdana" SIZE="1">
      <p>&#160;&#160;&#160;&#160;&#160;Cumulative effect of
      change in<br>
      &#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;accounting
      principle, net of taxes</font></td>
    <td WIDTH="3%" VALIGN="TOP"><font FACE="Verdana" SIZE="1">
      <p ALIGN="RIGHT"><br>
      </font></td>
    <td WIDTH="9%" VALIGN="TOP"><font FACE="Verdana" SIZE="1">
      <p style="margin-right: 20" align="right"><br>
      &#45;</font></td>
    <td WIDTH="2%" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="3%" VALIGN="TOP"><font FACE="Verdana" SIZE="1">
      <p ALIGN="RIGHT"><br>
      </font></td>
    <td WIDTH="8%" VALIGN="TOP"><font FACE="Verdana" SIZE="1">
      <p style="margin-right: 10" align="right"><br>
      3.44</font></td>
    <td WIDTH="2%" VALIGN="TOP"><font FACE="Verdana" SIZE="1">
      <p><br>
      </font></td>
  </tr>
  <tr>
    <td WIDTH="2%" VALIGN="TOP" style="border-top-style: solid; border-top-width: 1; border-bottom-style: solid">&nbsp;</td>
    <td WIDTH="71%" VALIGN="TOP" style="border-top-style: solid; border-top-width: 1; border-bottom-style: solid"><font FACE="Verdana" SIZE="1">
      <p>EPS, as adjusted</font></td>
    <td WIDTH="3%" VALIGN="TOP" style="border-top-style: solid; border-top-width: 1; border-bottom-style: solid"><font FACE="Verdana" SIZE="1">
      <p ALIGN="RIGHT">$</font></td>
    <td WIDTH="9%" VALIGN="TOP" style="border-top-style: solid; border-top-width: 1; border-bottom-style: solid"><font FACE="Verdana" SIZE="1">
      <p style="margin-right: 20" align="right">.54</font></td>
    <td WIDTH="2%" VALIGN="TOP" style="border-top-style: solid; border-top-width: 1; border-bottom-style: solid">&nbsp;</td>
    <td WIDTH="3%" VALIGN="TOP" style="border-top-style: solid; border-top-width: 1; border-bottom-style: solid"><font FACE="Verdana" SIZE="1">
      <p ALIGN="RIGHT">$</font></td>
    <td WIDTH="8%" VALIGN="TOP" style="border-top-style: solid; border-top-width: 1; border-bottom-style: solid"><font FACE="Verdana" SIZE="1">
      <p style="margin-right: 10" align="right">.47</font></td>
    <td WIDTH="2%" VALIGN="TOP" style="border-top-style: solid; border-top-width: 1; border-bottom-style: solid">&nbsp;</td>
  </tr>
</table>
    </center>
      </div>
<b><font FACE="Verdana" SIZE="1">
<p ALIGN="CENTER">TEXTRON INC.<br>
Condensed Consolidated Balance Sheets<br>
</font></b><font FACE="Verdana" SIZE="1">(In millions)<br>
(Unaudited)<br>
</p>
</font>
      <div align="center">
        <center>
<table CELLSPACING="1" CELLPADDING="1" WIDTH="703" height="561">
  <tr>
    <td WIDTH="62%" VALIGN="TOP" style="border-top-style: solid; border-top-width: 1; border-bottom-style: solid; border-bottom-width: 1" height="28">&nbsp;</td>
    <td WIDTH="15%" VALIGN="TOP" COLSPAN="2" style="border-top-style: solid; border-top-width: 1; border-bottom-style: solid; border-bottom-width: 1" height="28"><b><font FACE="Verdana" SIZE="1">
      <p ALIGN="CENTER">March 29,<br>
      2003</font></b></td>
    <td WIDTH="3%" VALIGN="TOP" style="border-top-style: solid; border-top-width: 1; border-bottom-style: solid; border-bottom-width: 1" height="28">&nbsp;</td>
    <td WIDTH="17%" VALIGN="TOP" COLSPAN="2" style="border-top-style: solid; border-top-width: 1; border-bottom-style: solid; border-bottom-width: 1" height="28"><b><font FACE="Verdana" SIZE="1">
      <p ALIGN="CENTER">December 28,<br>
      2002</font></b></td>
    <td WIDTH="3%" VALIGN="TOP" style="border-top-style: solid; border-top-width: 1; border-bottom-style: solid; border-bottom-width: 1" height="28">&nbsp;</td>
  </tr>
  <tr>
    <td WIDTH="62%" VALIGN="TOP" height="21"><b><font FACE="Verdana" SIZE="1">
      <p>Assets</font></b></td>
    <td WIDTH="3%" VALIGN="TOP" height="21">&nbsp;</td>
    <td WIDTH="12%" VALIGN="TOP" height="21">&nbsp;</td>
    <td WIDTH="3%" VALIGN="TOP" height="21">&nbsp;</td>
    <td WIDTH="4%" VALIGN="TOP" height="21">&nbsp;</td>
    <td WIDTH="13%" VALIGN="TOP" height="21">&nbsp;</td>
    <td WIDTH="3%" VALIGN="TOP" height="21">&nbsp;</td>
  </tr>
  <tr>
    <td WIDTH="62%" VALIGN="TOP" height="21"><font FACE="Verdana" SIZE="1">
      <p>Cash and cash equivalents</font></td>
    <td WIDTH="3%" VALIGN="TOP" height="21"><font FACE="Verdana" SIZE="1">
      <p ALIGN="RIGHT">$</font></td>
    <td WIDTH="12%" VALIGN="TOP" height="21"><font FACE="Verdana" SIZE="1">
      <p style="margin-right: 20" align="right">452</font></td>
    <td WIDTH="3%" VALIGN="TOP" height="21">&nbsp;</td>
    <td WIDTH="4%" VALIGN="TOP" height="21"><font FACE="Verdana" SIZE="1">
      <p ALIGN="RIGHT">$</font></td>
    <td WIDTH="13%" VALIGN="TOP" height="21"><font FACE="Verdana" SIZE="1">
      <p style="margin-right: 20" align="right">286</font></td>
    <td WIDTH="3%" VALIGN="TOP" height="21">&nbsp;</td>
  </tr>
  <tr>
    <td WIDTH="62%" VALIGN="TOP" height="21"><font FACE="Verdana" SIZE="1">
      <p>Accounts receivable, net</font></td>
    <td WIDTH="3%" VALIGN="TOP" height="21">&nbsp;</td>
    <td WIDTH="12%" VALIGN="TOP" height="21"><font FACE="Verdana" SIZE="1">
      <p style="margin-right: 20" align="right">1,323</font></td>
    <td WIDTH="3%" VALIGN="TOP" height="21">&nbsp;</td>
    <td WIDTH="4%" VALIGN="TOP" height="21">&nbsp;</td>
    <td WIDTH="13%" VALIGN="TOP" height="21"><font FACE="Verdana" SIZE="1">
      <p style="margin-right: 20" align="right">1,180</font></td>
    <td WIDTH="3%" VALIGN="TOP" height="21">&nbsp;</td>
  </tr>
  <tr>
    <td WIDTH="62%" VALIGN="TOP" height="21"><font FACE="Verdana" SIZE="1">
      <p>Inventories</font></td>
    <td WIDTH="3%" VALIGN="TOP" height="21">&nbsp;</td>
    <td WIDTH="12%" VALIGN="TOP" height="21"><font FACE="Verdana" SIZE="1">
      <p style="margin-right: 20" align="right">1,755</font></td>
    <td WIDTH="3%" VALIGN="TOP" height="21">&nbsp;</td>
    <td WIDTH="4%" VALIGN="TOP" height="21">&nbsp;</td>
    <td WIDTH="13%" VALIGN="TOP" height="21"><font FACE="Verdana" SIZE="1">
      <p style="margin-right: 20" align="right">1,611</font></td>
    <td WIDTH="3%" VALIGN="TOP" height="21">&nbsp;</td>
  </tr>
  <tr>
    <td WIDTH="62%" VALIGN="TOP" height="21"><font FACE="Verdana" SIZE="1">
      <p>Other current assets</font></td>
    <td WIDTH="3%" VALIGN="TOP" height="21">&nbsp;</td>
    <td WIDTH="12%" VALIGN="TOP" height="21"><font FACE="Verdana" SIZE="1">
      <p style="margin-right: 20" align="right">555</font></td>
    <td WIDTH="3%" VALIGN="TOP" height="21">&nbsp;</td>
    <td WIDTH="4%" VALIGN="TOP" height="21">&nbsp;</td>
    <td WIDTH="13%" VALIGN="TOP" height="21"><font FACE="Verdana" SIZE="1">
      <p style="margin-right: 20" align="right">810</font></td>
    <td WIDTH="3%" VALIGN="TOP" height="21">&nbsp;</td>
  </tr>
  <tr>
    <td WIDTH="62%" VALIGN="TOP" height="21"><font FACE="Verdana" SIZE="1">
      <p>Net property</font></td>
    <td WIDTH="3%" VALIGN="TOP" height="21">&nbsp;</td>
    <td WIDTH="12%" VALIGN="TOP" height="21"><font FACE="Verdana" SIZE="1">
      <p style="margin-right: 20" align="right">1,937</font></td>
    <td WIDTH="3%" VALIGN="TOP" height="21">&nbsp;</td>
    <td WIDTH="4%" VALIGN="TOP" height="21">&nbsp;</td>
    <td WIDTH="13%" VALIGN="TOP" height="21"><font FACE="Verdana" SIZE="1">
      <p style="margin-right: 20" align="right">1,981</font></td>
    <td WIDTH="3%" VALIGN="TOP" height="21">&nbsp;</td>
  </tr>
  <tr>
    <td WIDTH="62%" VALIGN="TOP" height="21"><font FACE="Verdana" SIZE="1">
      <p>Other assets</font></td>
    <td WIDTH="3%" VALIGN="TOP" height="21">&nbsp;</td>
    <td WIDTH="12%" VALIGN="TOP" height="21"><font FACE="Verdana" SIZE="1">
      <p style="margin-right: 20" align="right">2,981</font></td>
    <td WIDTH="3%" VALIGN="TOP" height="21">&nbsp;</td>
    <td WIDTH="4%" VALIGN="TOP" height="21">&nbsp;</td>
    <td WIDTH="13%" VALIGN="TOP" height="21"><font FACE="Verdana" SIZE="1">
      <p style="margin-right: 20" align="right">2,983</font></td>
    <td WIDTH="3%" VALIGN="TOP" height="21">&nbsp;</td>
  </tr>
  <tr>
    <td WIDTH="62%" VALIGN="TOP" height="21"><font FACE="Verdana" SIZE="1">
      <p>Textron Finance assets</font></td>
    <td WIDTH="3%" VALIGN="TOP" height="21">&nbsp;</td>
    <td WIDTH="12%" VALIGN="TOP" height="21"><font FACE="Verdana" SIZE="1">
      <p style="margin-right: 20" align="right">7,276</font></td>
    <td WIDTH="3%" VALIGN="TOP" height="21">&nbsp;</td>
    <td WIDTH="4%" VALIGN="TOP" height="21">&nbsp;</td>
    <td WIDTH="13%" VALIGN="TOP" height="21"><font FACE="Verdana" SIZE="1">
      <p style="margin-right: 20" align="right">6,654</font></td>
    <td WIDTH="3%" VALIGN="TOP" height="21">&nbsp;</td>
  </tr>
  <tr>
    <td WIDTH="62%" VALIGN="TOP" style="border-top-style: solid; border-top-width: 1; border-bottom-style: solid" height="24"><font FACE="Verdana" SIZE="1">
      <p>&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;Total
      Assets</font></td>
    <td WIDTH="3%" VALIGN="TOP" style="border-top-style: solid; border-top-width: 1; border-bottom-style: solid" height="24"><font FACE="Verdana" SIZE="1">
      <p ALIGN="RIGHT">$</font></td>
    <td WIDTH="12%" VALIGN="TOP" style="border-top-style: solid; border-top-width: 1; border-bottom-style: solid" height="24"><font FACE="Verdana" SIZE="1">
      <p style="margin-right: 20" align="right">16,279</font></td>
    <td WIDTH="3%" VALIGN="TOP" style="border-top-style: solid; border-top-width: 1; border-bottom-style: solid" height="24">&nbsp;</td>
    <td WIDTH="4%" VALIGN="TOP" style="border-top-style: solid; border-top-width: 1; border-bottom-style: solid" height="24"><font FACE="Verdana" SIZE="1">
      <p ALIGN="RIGHT">$</font></td>
    <td WIDTH="13%" VALIGN="TOP" style="border-top-style: solid; border-top-width: 1; border-bottom-style: solid" height="24"><font FACE="Verdana" SIZE="1">
      <p style="margin-right: 20" align="right">15,505</font></td>
    <td WIDTH="3%" VALIGN="TOP" style="border-top-style: solid; border-top-width: 1; border-bottom-style: solid" height="24">&nbsp;</td>
  </tr>
  <tr>
    <td WIDTH="62%" VALIGN="TOP" height="21">&nbsp;</td>
    <td WIDTH="3%" VALIGN="TOP" height="21">&nbsp;</td>
    <td WIDTH="12%" VALIGN="TOP" height="21">
      <p style="margin-right: 20" align="right">&nbsp;</p>
    </td>
    <td WIDTH="3%" VALIGN="TOP" height="21">&nbsp;</td>
    <td WIDTH="4%" VALIGN="TOP" height="21">&nbsp;</td>
    <td WIDTH="13%" VALIGN="TOP" height="21">
      <p style="margin-right: 20" align="right">&nbsp;</p>
    </td>
    <td WIDTH="3%" VALIGN="TOP" height="21">&nbsp;</td>
  </tr>
  <tr>
    <td WIDTH="62%" VALIGN="TOP" height="21"><b><font FACE="Verdana" SIZE="1">
      <p>Liabilities and Shareholders&#39; Equity</font></b></td>
    <td WIDTH="3%" VALIGN="TOP" height="21">&nbsp;</td>
    <td WIDTH="12%" VALIGN="TOP" height="21">
      <p style="margin-right: 20" align="right">&nbsp;</p>
    </td>
    <td WIDTH="3%" VALIGN="TOP" height="21">&nbsp;</td>
    <td WIDTH="4%" VALIGN="TOP" height="21">&nbsp;</td>
    <td WIDTH="13%" VALIGN="TOP" height="21">
      <p style="margin-right: 20" align="right">&nbsp;</p>
    </td>
    <td WIDTH="3%" VALIGN="TOP" height="21">&nbsp;</td>
  </tr>
  <tr>
    <td WIDTH="62%" VALIGN="TOP" height="21"><font FACE="Verdana" SIZE="1">
      <p>Current portion of long&#45;term debt and short&#45;term debt</font></td>
    <td WIDTH="3%" VALIGN="TOP" height="21"><font FACE="Verdana" SIZE="1">
      <p ALIGN="RIGHT">$</font></td>
    <td WIDTH="12%" VALIGN="TOP" height="21"><font FACE="Verdana" SIZE="1">
      <p style="margin-right: 20" align="right">230</font></td>
    <td WIDTH="3%" VALIGN="TOP" height="21">&nbsp;</td>
    <td WIDTH="4%" VALIGN="TOP" height="21"><font FACE="Verdana" SIZE="1">
      <p ALIGN="RIGHT">$</font></td>
    <td WIDTH="13%" VALIGN="TOP" height="21"><font FACE="Verdana" SIZE="1">
      <p style="margin-right: 20" align="right">25</font></td>
    <td WIDTH="3%" VALIGN="TOP" height="21">&nbsp;</td>
  </tr>
  <tr>
    <td WIDTH="62%" VALIGN="TOP" height="21"><font FACE="Verdana" SIZE="1">
      <p>Other current liabilities</font></td>
    <td WIDTH="3%" VALIGN="TOP" height="21">&nbsp;</td>
    <td WIDTH="12%" VALIGN="TOP" height="21"><font FACE="Verdana" SIZE="1">
      <p style="margin-right: 20" align="right">2,229</font></td>
    <td WIDTH="3%" VALIGN="TOP" height="21">&nbsp;</td>
    <td WIDTH="4%" VALIGN="TOP" height="21">&nbsp;</td>
    <td WIDTH="13%" VALIGN="TOP" height="21"><font FACE="Verdana" SIZE="1">
      <p style="margin-right: 20" align="right">2,214</font></td>
    <td WIDTH="3%" VALIGN="TOP" height="21">&nbsp;</td>
  </tr>
  <tr>
    <td WIDTH="62%" VALIGN="TOP" height="21"><font FACE="Verdana" SIZE="1">
      <p>Other liabilities</font></td>
    <td WIDTH="3%" VALIGN="TOP" height="21">&nbsp;</td>
    <td WIDTH="12%" VALIGN="TOP" height="21"><font FACE="Verdana" SIZE="1">
      <p style="margin-right: 20" align="right">1,964</font></td>
    <td WIDTH="3%" VALIGN="TOP" height="21">&nbsp;</td>
    <td WIDTH="4%" VALIGN="TOP" height="21">&nbsp;</td>
    <td WIDTH="13%" VALIGN="TOP" height="21"><font FACE="Verdana" SIZE="1">
      <p style="margin-right: 20" align="right">2,055</font></td>
    <td WIDTH="3%" VALIGN="TOP" height="21">&nbsp;</td>
  </tr>
  <tr>
    <td WIDTH="62%" VALIGN="TOP" height="21"><font FACE="Verdana" SIZE="1">
      <p>Long&#45;term debt</font></td>
    <td WIDTH="3%" VALIGN="TOP" height="21">&nbsp;</td>
    <td WIDTH="12%" VALIGN="TOP" height="21"><font FACE="Verdana" SIZE="1">
      <p style="margin-right: 20" align="right">1,688</font></td>
    <td WIDTH="3%" VALIGN="TOP" height="21">&nbsp;</td>
    <td WIDTH="4%" VALIGN="TOP" height="21">&nbsp;</td>
    <td WIDTH="13%" VALIGN="TOP" height="21"><font FACE="Verdana" SIZE="1">
      <p style="margin-right: 20" align="right">1,686</font></td>
    <td WIDTH="3%" VALIGN="TOP" height="21">&nbsp;</td>
  </tr>
  <tr>
    <td WIDTH="62%" VALIGN="TOP" style="border-bottom-style: solid; border-bottom-width: 1" height="20"><font FACE="Verdana" SIZE="1">
      <p>Textron Finance liabilities</font></td>
    <td WIDTH="3%" VALIGN="TOP" style="border-bottom-style: solid; border-bottom-width: 1" height="20">&nbsp;</td>
    <td WIDTH="12%" VALIGN="TOP" style="border-bottom-style: solid; border-bottom-width: 1" height="20"><font FACE="Verdana" SIZE="1">
      <p style="margin-right: 20" align="right">6,243</font></td>
    <td WIDTH="3%" VALIGN="TOP" style="border-bottom-style: solid; border-bottom-width: 1" height="20">&nbsp;</td>
    <td WIDTH="4%" VALIGN="TOP" style="border-bottom-style: solid; border-bottom-width: 1" height="20">&nbsp;</td>
    <td WIDTH="13%" VALIGN="TOP" style="border-bottom-style: solid; border-bottom-width: 1" height="20"><font FACE="Verdana" SIZE="1">
      <p style="margin-right: 20" align="right">5,607</font></td>
    <td WIDTH="3%" VALIGN="TOP" style="border-bottom-style: solid; border-bottom-width: 1" height="20">&nbsp;</td>
  </tr>
  <tr>
    <td WIDTH="62%" VALIGN="TOP" height="21"><font FACE="Verdana" SIZE="1">
      <p>&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;Total
      Liabilities</font></td>
    <td WIDTH="3%" VALIGN="TOP" height="21">&nbsp;</td>
    <td WIDTH="12%" VALIGN="TOP" height="21"><font FACE="Verdana" SIZE="1">
      <p style="margin-right: 20" align="right">12,354</font></td>
    <td WIDTH="3%" VALIGN="TOP" height="21">&nbsp;</td>
    <td WIDTH="4%" VALIGN="TOP" height="21">&nbsp;</td>
    <td WIDTH="13%" VALIGN="TOP" height="21"><font FACE="Verdana" SIZE="1">
      <p style="margin-right: 20" align="right">11,587</font></td>
    <td WIDTH="3%" VALIGN="TOP" height="21">&nbsp;</td>
  </tr>
  <tr>
    <td WIDTH="62%" VALIGN="TOP" height="21">&nbsp;</td>
    <td WIDTH="3%" VALIGN="TOP" height="21">&nbsp;</td>
    <td WIDTH="12%" VALIGN="TOP" height="21">
      <p style="margin-right: 20" align="right">&nbsp;</p>
    </td>
    <td WIDTH="3%" VALIGN="TOP" height="21">&nbsp;</td>
    <td WIDTH="4%" VALIGN="TOP" height="21">&nbsp;</td>
    <td WIDTH="13%" VALIGN="TOP" height="21">
      <p style="margin-right: 20" align="right">&nbsp;</p>
    </td>
    <td WIDTH="3%" VALIGN="TOP" height="21">&nbsp;</td>
  </tr>
  <tr>
    <td WIDTH="62%" VALIGN="TOP" height="21">
        <font face="Verdana" size="1">
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Obligated mandatorily redeemable preferred securities
      </font></td>
    <td WIDTH="3%" VALIGN="TOP" height="21"></td>
    <td WIDTH="12%" VALIGN="TOP" height="21"><font face="Verdana" size="1">
      &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 512</font></td>
    <td WIDTH="3%" VALIGN="TOP" height="21"></td>
    <td WIDTH="4%" VALIGN="TOP" height="21"></td>
    <td WIDTH="13%" VALIGN="TOP" height="21"><font face="Verdana" size="1">
      &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 512</font></td>
    <td WIDTH="3%" VALIGN="TOP" height="21"></td>
  </tr>
  <tr>
    <td WIDTH="62%" VALIGN="TOP" height="21"><font FACE="Verdana" SIZE="1">
      <p>Total Shareholders&#39; Equity</font></td>
    <td WIDTH="3%" VALIGN="TOP" height="21">&nbsp;</td>
    <td WIDTH="12%" VALIGN="TOP" height="21"><font FACE="Verdana" SIZE="1">
      <p style="margin-right: 20" align="right">3,413</font></td>
    <td WIDTH="3%" VALIGN="TOP" height="21">&nbsp;</td>
    <td WIDTH="4%" VALIGN="TOP" height="21">&nbsp;</td>
    <td WIDTH="13%" VALIGN="TOP" height="21"><font FACE="Verdana" SIZE="1">
      <p style="margin-right: 20" align="right">3,406</font></td>
    <td WIDTH="3%" VALIGN="TOP" height="21">&nbsp;</td>
  </tr>
  <tr>
    <td WIDTH="62%" VALIGN="TOP" HEIGHT="24" style="border-top-style: solid; border-top-width: 1; border-bottom-style: solid"><font FACE="Verdana" SIZE="1">
      <p>&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;Total
      Liabilities and Shareholders&#39; Equity</font></td>
    <td WIDTH="3%" VALIGN="TOP" HEIGHT="24" style="border-top-style: solid; border-top-width: 1; border-bottom-style: solid"><font FACE="Verdana" SIZE="1">
      <p ALIGN="RIGHT">$</font></td>
    <td WIDTH="12%" VALIGN="TOP" HEIGHT="24" style="border-top-style: solid; border-top-width: 1; border-bottom-style: solid"><font FACE="Verdana" SIZE="1">
      <p style="margin-right: 20" align="right">16,279</font></td>
    <td WIDTH="3%" VALIGN="TOP" HEIGHT="24" style="border-top-style: solid; border-top-width: 1; border-bottom-style: solid">
      <p>&nbsp;</p>
    </td>
    <td WIDTH="4%" VALIGN="TOP" HEIGHT="24" style="border-top-style: solid; border-top-width: 1; border-bottom-style: solid"><font FACE="Verdana" SIZE="1">
      <p ALIGN="RIGHT">$</font></td>
    <td WIDTH="13%" VALIGN="TOP" HEIGHT="24" style="border-top-style: solid; border-top-width: 1; border-bottom-style: solid"><font FACE="Verdana" SIZE="1">
      <p style="margin-right: 20" align="right">15,505</font></td>
    <td WIDTH="3%" VALIGN="TOP" HEIGHT="24" style="border-top-style: solid; border-top-width: 1; border-bottom-style: solid">
      <p></p>
    </td>
  </tr>
</table>
      </center>
    </div>
<b><font FACE="Verdana" SIZE="3">
<p ALIGN="CENTER">Textron Inc.</p>
<p ALIGN="CENTER">Reconciliation of GAAP Measures to Non&#45;GAAP Measures</p>
<p ALIGN="CENTER">(In millions except per share amounts)</p>
</font></b>
    <div align="center">
      <center>
<table CELLSPACING="1" CELLPADDING="1" WIDTH="751">
  <tr>
    <td WIDTH="42%" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="3%" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="16%" VALIGN="TOP" COLSPAN="3">&nbsp;</td>
    <td WIDTH="3%" VALIGN="TOP" COLSPAN="3">&nbsp;</td>
    <td WIDTH="8%" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="3%" VALIGN="TOP" COLSPAN="2">&nbsp;</td>
    <td WIDTH="14%" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="3%" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="10%" VALIGN="TOP">&nbsp;</td>
  </tr>
  <tr>
    <td WIDTH="42%" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="3%" VALIGN="TOP" style="border-bottom-style: solid; border-bottom-width: 1">&nbsp;</td>
    <td WIDTH="27%" VALIGN="TOP" COLSPAN="7" style="border-bottom-style: solid; border-bottom-width: 1"><b><font FACE="Verdana" SIZE="1">
      <p ALIGN="CENTER">Second Quarter</font></b></td>
    <td WIDTH="3%" VALIGN="TOP" style="border-bottom-style: solid; border-bottom-width: 1">&nbsp;</td>
    <td WIDTH="26%" VALIGN="TOP" COLSPAN="4" style="border-bottom-style: solid; border-bottom-width: 1"><b><font FACE="Verdana" SIZE="1">
      <p ALIGN="CENTER">Full Year</font></b></td>
  </tr>
  <tr>
    <td WIDTH="42%" VALIGN="TOP" style="border-bottom-style: solid; border-bottom-width: 1">&nbsp;</td>
    <td WIDTH="3%" VALIGN="TOP" style="border-bottom-style: solid; border-bottom-width: 1">&nbsp;</td>
    <td WIDTH="14%" VALIGN="TOP" COLSPAN="2" style="border-bottom-style: solid; border-bottom-width: 1"><b><font FACE="Verdana" SIZE="1">
      <p ALIGN="CENTER">2003<br>
      Outlook</font></b></td>
    <td WIDTH="3%" VALIGN="TOP" COLSPAN="3" style="border-bottom-style: solid; border-bottom-width: 1">&nbsp;</td>
    <td WIDTH="9%" VALIGN="TOP" COLSPAN="2" style="border-bottom-style: solid; border-bottom-width: 1"><b><font FACE="Verdana" SIZE="1">
      <p ALIGN="CENTER">2002<br>
      Actual</font></b></td>
    <td WIDTH="3%" VALIGN="TOP" COLSPAN="2" style="border-bottom-style: solid; border-bottom-width: 1">&nbsp;</td>
    <td WIDTH="14%" VALIGN="TOP" style="border-bottom-style: solid; border-bottom-width: 1"><b><font FACE="Verdana" SIZE="1">
      <p ALIGN="CENTER">2003<br>
      Outlook</font></b></td>
    <td WIDTH="3%" VALIGN="TOP" style="border-bottom-style: solid; border-bottom-width: 1">&nbsp;</td>
    <td WIDTH="10%" VALIGN="TOP" style="border-bottom-style: solid; border-bottom-width: 1"><b><font FACE="Verdana" SIZE="1">
      <p ALIGN="CENTER">2002<br>
      Actual</font></b></td>
  </tr>
  <tr>
    <td WIDTH="42%" VALIGN="TOP"><b><font FACE="Verdana" SIZE="1">
      <p>GAAP EPS</font></b></td>
    <td WIDTH="3%" VALIGN="TOP"><b><font FACE="Verdana" SIZE="1">
      <p ALIGN="RIGHT">$</font></b></td>
    <td WIDTH="14%" VALIGN="TOP" COLSPAN="2"><b><font FACE="Verdana" SIZE="1">
      <p ALIGN="CENTER">.38 &#45; .48</font></b></td>
    <td WIDTH="3%" VALIGN="TOP" COLSPAN="3"><b><font FACE="Verdana" SIZE="1">
      <p ALIGN="RIGHT">$</font></b></td>
    <td WIDTH="9%" VALIGN="TOP" COLSPAN="2"><b><font FACE="Verdana" SIZE="1">
      <p style="margin-right: 10" align="right">.74</font></b></td>
    <td WIDTH="3%" VALIGN="TOP" COLSPAN="2"><b><font FACE="Verdana" SIZE="1">
      <p ALIGN="RIGHT">$</font></b></td>
    <td WIDTH="14%" VALIGN="TOP"><b><font FACE="Verdana" SIZE="1">
      <p ALIGN="CENTER">1.79 &#45; 1.99</font></b></td>
    <td WIDTH="3%" VALIGN="TOP"><b><font FACE="Verdana" SIZE="1">
      <p ALIGN="RIGHT">$</font></b></td>
    <td WIDTH="10%" VALIGN="TOP">
      <p style="margin-right: 20" align="right"><b><font face="Verdana" size="1">(.88)</font></b></td>
  </tr>
  <tr>
    <td WIDTH="42%" VALIGN="TOP"><font size="1" face="Verdana">Adjustments:</font></td>
    <td WIDTH="3%" VALIGN="TOP"></td>
    <td WIDTH="14%" VALIGN="TOP" COLSPAN="2"></td>
    <td WIDTH="3%" VALIGN="TOP" COLSPAN="3"></td>
    <td WIDTH="9%" VALIGN="TOP" COLSPAN="2"></td>
    <td WIDTH="3%" VALIGN="TOP" COLSPAN="2"></td>
    <td WIDTH="14%" VALIGN="TOP"></td>
    <td WIDTH="3%" VALIGN="TOP"></td>
    <td WIDTH="10%" VALIGN="TOP"></td>
  </tr>
  <tr>
    <td WIDTH="42%" VALIGN="TOP"><font FACE="Verdana" SIZE="1">
      <p>
      &#160;&#160;&#160;&#160;&#160;Gain on sale of
      businesses</font></td>
    <td WIDTH="3%" VALIGN="TOP"><font size="1" face="Verdana">&nbsp;</font></td>
    <td WIDTH="14%" VALIGN="TOP" COLSPAN="2">
      <p ALIGN="CENTER"><font face="Verdana" SIZE="1">
      &#45;</font></td>
    <td WIDTH="3%" VALIGN="TOP" COLSPAN="3"><font size="1" face="Verdana">&nbsp;</font></td>
      </center>
    <td WIDTH="9%" VALIGN="TOP" COLSPAN="2">
      <p style="margin-right: 10" align="right"><font size="1" face="Verdana">
      (.06)</font></td>
      <center>
    <td WIDTH="3%" VALIGN="TOP" COLSPAN="2"><font size="1" face="Verdana">&nbsp;</font></td>
    <td WIDTH="14%" VALIGN="TOP" align="center">
      <p><font size="1" face="Verdana">
      (.09)</font></td>
    <td WIDTH="3%" VALIGN="TOP"><font size="1" face="Verdana">&nbsp;</font></td>
      </center>
    <td WIDTH="10%" VALIGN="TOP">
      <p style="margin-right: 20" align="right"><font size="1" face="Verdana">(.31)</font></td>
  </tr>
      <center>
  <tr>
    <td WIDTH="42%" VALIGN="TOP"><font FACE="Verdana" SIZE="1">
      <p>&#160;&#160;&#160;&#160;&#160;Special charges</font></td>
    <td WIDTH="3%" VALIGN="TOP"><font size="1" face="Verdana">&nbsp;</font></td>
    <td WIDTH="14%" VALIGN="TOP" COLSPAN="2">
      <p align="center"><font size="1" face="Verdana">&nbsp;.27</font></p>
    </td>
    <td WIDTH="3%" VALIGN="TOP" COLSPAN="3"><font size="1" face="Verdana">&nbsp;</font></td>
    <td WIDTH="9%" VALIGN="TOP" COLSPAN="2">
      <p style="margin-right: 10" align="right"><font size="1" face="Verdana">&nbsp;.14</font></p>
    </td>
    <td WIDTH="3%" VALIGN="TOP" COLSPAN="2"><font size="1" face="Verdana">&nbsp;</font></td>
    <td WIDTH="14%" VALIGN="TOP" align="center"><font size="1" face="Verdana">&nbsp;.70</font></td>
    <td WIDTH="3%" VALIGN="TOP"><font size="1" face="Verdana">&nbsp;</font></td>
    <td WIDTH="10%" VALIGN="TOP">
      <p style="margin-right: 20" align="right"><font size="1" face="Verdana">&nbsp;.72</font></p>
    </td>
  </tr>
  <tr>
    <td WIDTH="42%" VALIGN="TOP"><font FACE="Verdana" SIZE="1">
      &#160;&#160;&#160;&#160;&#160;Cumulative
      effect of change in accounting<br>
      &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; principle, net of taxes</font></td>
    <td WIDTH="3%" VALIGN="TOP"></td>
    <td WIDTH="14%" VALIGN="TOP" COLSPAN="2">
      <p align="center"><font face="Verdana" size="1"><br>
      &#45;</font></td>
    <td WIDTH="3%" VALIGN="TOP" COLSPAN="3"></td>
      </center>
    <td WIDTH="9%" VALIGN="TOP" COLSPAN="2">
      <p align="right" style="margin-right: 10"><font face="Verdana" size="1"><br>
      &#45;</font></p>
  </td>
      <center>
    <td WIDTH="3%" VALIGN="TOP" COLSPAN="2"></td>
    <td WIDTH="14%" VALIGN="TOP">
      <p align="center"><font face="Verdana" size="1">&nbsp;<br>
      &#45;</font></p>
</td>
    <td WIDTH="3%" VALIGN="TOP"></td>
    <td WIDTH="10%" VALIGN="TOP">
      <p style="margin-right: 20" align="right"><font face="Verdana" size="1"><br>
      3.48</font></p>
</td>
  </tr>
  <tr>
    <td WIDTH="42%" VALIGN="TOP" style="border-top-style: solid; border-top-width: 1; border-bottom-style: solid"><b><font FACE="Verdana" SIZE="1">
      <p>EPS, as adjusted</font></b></td>
    <td WIDTH="3%" VALIGN="TOP" style="border-top-style: solid; border-top-width: 1; border-bottom-style: solid"><b><font FACE="Verdana" SIZE="1">
      <p ALIGN="RIGHT">$</font></b></td>
    <td WIDTH="14%" VALIGN="TOP" COLSPAN="2" style="border-top-style: solid; border-top-width: 1; border-bottom-style: solid"><b><font FACE="Verdana" SIZE="1">
      <p ALIGN="CENTER">.65 &#45; .75</font></b></td>
    <td WIDTH="3%" VALIGN="TOP" COLSPAN="3" style="border-top-style: solid; border-top-width: 1; border-bottom-style: solid"><b><font FACE="Verdana" SIZE="1">
      <p ALIGN="RIGHT">$</font></b></td>
    <td WIDTH="9%" VALIGN="TOP" COLSPAN="2" style="border-top-style: solid; border-top-width: 1; border-bottom-style: solid"><b><font FACE="Verdana" SIZE="1">
      <p style="margin-right: 10" align="right">.82</font></b></td>
    <td WIDTH="3%" VALIGN="TOP" COLSPAN="2" style="border-top-style: solid; border-top-width: 1; border-bottom-style: solid"><b><font FACE="Verdana" SIZE="1">
      <p ALIGN="RIGHT">$</font></b></td>
    <td WIDTH="14%" VALIGN="TOP" style="border-top-style: solid; border-top-width: 1; border-bottom-style: solid"><b><font FACE="Verdana" SIZE="1">
      <p ALIGN="CENTER">2.40 &#45; 2.60</font></b></td>
    <td WIDTH="3%" VALIGN="TOP" style="border-top-style: solid; border-top-width: 1; border-bottom-style: solid"><b><font FACE="Verdana" SIZE="1">
      <p ALIGN="RIGHT">$</font></b></td>
    <td WIDTH="10%" VALIGN="TOP" style="border-top-style: solid; border-top-width: 1; border-bottom-style: solid"><b><font FACE="Verdana" SIZE="1">
      <p style="margin-right: 20" align="right">3.01</font></b></td>
  </tr>
  <tr>
    <td WIDTH="42%" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="3%" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="14%" VALIGN="TOP" COLSPAN="2">&nbsp;</td>
    <td WIDTH="3%" VALIGN="TOP" COLSPAN="3">&nbsp;</td>
    <td WIDTH="9%" VALIGN="TOP" COLSPAN="2">&nbsp;</td>
    <td WIDTH="3%" VALIGN="TOP" COLSPAN="2">&nbsp;</td>
    <td WIDTH="14%" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="3%" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="10%" VALIGN="TOP">&nbsp;</td>
  </tr>
  <tr>
    <td WIDTH="42%" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="3%" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="27%" VALIGN="TOP" COLSPAN="7" style="border-bottom-style: solid; border-bottom-width: 1"><b><font FACE="Verdana" SIZE="1">
      <p ALIGN="CENTER">First Quarter</font></b></td>
    <td WIDTH="3%" VALIGN="TOP" style="border-bottom-style: solid; border-bottom-width: 1">&nbsp;</td>
    <td WIDTH="26%" VALIGN="TOP" COLSPAN="4" style="border-bottom-style: solid; border-bottom-width: 1"><b><font FACE="Verdana" SIZE="1">
      <p ALIGN="CENTER">Full Year</font></b></td>
  </tr>
  <tr>
    <td WIDTH="42%" VALIGN="TOP" style="border-bottom-style: solid; border-bottom-width: 1">&nbsp;</td>
    <td WIDTH="3%" VALIGN="TOP" style="border-bottom-style: solid; border-bottom-width: 1">&nbsp;</td>
    <td WIDTH="14%" VALIGN="TOP" style="border-bottom-style: solid; border-bottom-width: 1"><b><font FACE="Verdana" SIZE="1">
      <p ALIGN="CENTER">2003<br>
      Actual</font></b></td>
    <td WIDTH="3%" VALIGN="TOP" COLSPAN="3" style="border-bottom-style: solid; border-bottom-width: 1">&nbsp;</td>
    <td WIDTH="10%" VALIGN="TOP" COLSPAN="3" style="border-bottom-style: solid; border-bottom-width: 1"><b><font FACE="Verdana" SIZE="1">
      <p ALIGN="CENTER">2002<br>
      Actual</font></b></td>
    <td WIDTH="3%" VALIGN="TOP" COLSPAN="2" style="border-bottom-style: solid; border-bottom-width: 1">&nbsp;</td>
    <td WIDTH="14%" VALIGN="TOP" style="border-bottom-style: solid; border-bottom-width: 1"><b><font FACE="Verdana" SIZE="1">
      <p ALIGN="CENTER">2003<br>
      Outlook</font></b></td>
    <td WIDTH="3%" VALIGN="TOP" style="border-bottom-style: solid; border-bottom-width: 1">&nbsp;</td>
    <td WIDTH="10%" VALIGN="TOP" style="border-bottom-style: solid; border-bottom-width: 1"><b><font FACE="Verdana" SIZE="1">
      <p ALIGN="CENTER">2002<br>
      Actual</font></b></td>
  </tr>
  <tr>
    <td WIDTH="42%" VALIGN="TOP"><b><font FACE="Verdana" SIZE="1">
      <p>Cash flow from operations &#45; GAAP</font></b></td>
    <td WIDTH="3%" VALIGN="TOP"><b><font FACE="Verdana" SIZE="1">
      <p ALIGN="RIGHT">$</font></b></td>
    <td WIDTH="14%" VALIGN="TOP" align="right"><b><font FACE="Verdana" SIZE="1">
      <p style="margin-right: 20">(41)</font></b></td>
    <td WIDTH="3%" VALIGN="TOP" COLSPAN="3"><b><font FACE="Verdana" SIZE="1">
      <p ALIGN="RIGHT">$</font></b></td>
    <td WIDTH="10%" VALIGN="TOP" COLSPAN="3" align="right"><b><font FACE="Verdana" SIZE="1">
      <p style="margin-right: 20">(183)</font></b></td>
    <td WIDTH="3%" VALIGN="TOP" COLSPAN="2"><b><font FACE="Verdana" SIZE="1">
      <p ALIGN="RIGHT">$</font></b></td>
    <td WIDTH="14%" VALIGN="TOP"><b><font FACE="Verdana" SIZE="1">
      <p ALIGN="CENTER">518 &#45; 618</font></b></td>
    <td WIDTH="3%" VALIGN="TOP"><b><font FACE="Verdana" SIZE="1">
      <p ALIGN="RIGHT">$</font></b></td>
    <td WIDTH="10%" VALIGN="TOP" align="right"><b><font FACE="Verdana" SIZE="1">
      <p style="margin-right: 20">522</font></b></td>
  </tr>
  <tr>
    <td WIDTH="42%" VALIGN="TOP"><font FACE="Verdana" SIZE="1">
      <p>&#160;&#160;&#160;&#160;&#160;Capital expenditures</font></td>
    <td WIDTH="3%" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="14%" VALIGN="TOP" align="right"><font FACE="Verdana" SIZE="1">
      <p style="margin-right: 20">(44)</font></td>
    <td WIDTH="3%" VALIGN="TOP" COLSPAN="3">&nbsp;</td>
    <td WIDTH="10%" VALIGN="TOP" COLSPAN="3" align="right"><font FACE="Verdana" SIZE="1">
      <p style="margin-right: 20">(61)</font></td>
    <td WIDTH="3%" VALIGN="TOP" COLSPAN="2">&nbsp;</td>
    <td WIDTH="14%" VALIGN="TOP"><font FACE="Verdana" SIZE="1">
      <p ALIGN="CENTER">(274)</font></td>
    <td WIDTH="3%" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="10%" VALIGN="TOP" align="right"><font FACE="Verdana" SIZE="1">
      <p style="margin-right: 20">(279)</font></td>
  </tr>
  <tr>
    <td WIDTH="42%" VALIGN="TOP"><font FACE="Verdana" SIZE="1">
      <p>&#160;&#160;&#160;&#160;&#160;Capital lease
      additions</font></td>
    <td WIDTH="3%" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="14%" VALIGN="TOP" align="right"><font FACE="Verdana" SIZE="1">
      <p style="margin-right: 20">(1)</font></td>
    <td WIDTH="3%" VALIGN="TOP" COLSPAN="3">&nbsp;</td>
    <td WIDTH="10%" VALIGN="TOP" COLSPAN="3" align="right"><font FACE="Verdana" SIZE="1">
      <p style="margin-right: 20">&#45;</font></td>
    <td WIDTH="3%" VALIGN="TOP" COLSPAN="2">&nbsp;</td>
    <td WIDTH="14%" VALIGN="TOP"><font FACE="Verdana" SIZE="1">
      <p ALIGN="CENTER">(54)</font></td>
    <td WIDTH="3%" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="10%" VALIGN="TOP" align="right"><font FACE="Verdana" SIZE="1">
      <p style="margin-right: 20">(23)</font></td>
  </tr>
  <tr>
    <td WIDTH="42%" VALIGN="TOP"><font FACE="Verdana" SIZE="1">
      <p>&#160;&#160;&#160;&#160;&#160;Proceeds on sale of
      fixed assets</font></td>
    <td WIDTH="3%" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="14%" VALIGN="TOP" align="right"><font FACE="Verdana" SIZE="1">
      <p style="margin-right: 20">9</font></td>
    <td WIDTH="3%" VALIGN="TOP" COLSPAN="3">&nbsp;</td>
    <td WIDTH="10%" VALIGN="TOP" COLSPAN="3" align="right"><font FACE="Verdana" SIZE="1">
      <p style="margin-right: 20">24</font></td>
    <td WIDTH="3%" VALIGN="TOP" COLSPAN="2">&nbsp;</td>
    <td WIDTH="14%" VALIGN="TOP"><font FACE="Verdana" SIZE="1">
      <p ALIGN="CENTER">27</font></td>
    <td WIDTH="3%" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="10%" VALIGN="TOP" align="right"><font FACE="Verdana" SIZE="1">
      <p style="margin-right: 20">67</font></td>
  </tr>
  <tr>
    <td WIDTH="42%" VALIGN="TOP" style="border-top-style: solid; border-top-width: 1"><font FACE="Verdana" SIZE="1">
      <p>Free cash flow after restructuring</font></td>
    <td WIDTH="3%" VALIGN="TOP" style="border-top-style: solid; border-top-width: 1"><font FACE="Verdana" SIZE="1">
      <p ALIGN="RIGHT">$</font></td>
    <td WIDTH="14%" VALIGN="TOP" style="border-top-style: solid; border-top-width: 1" align="right"><font FACE="Verdana" SIZE="1">
      <p style="margin-right: 20">(77)</font></td>
    <td WIDTH="3%" VALIGN="TOP" COLSPAN="3" style="border-top-style: solid; border-top-width: 1"><font FACE="Verdana" SIZE="1">
      <p ALIGN="RIGHT">$</font></td>
    <td WIDTH="10%" VALIGN="TOP" COLSPAN="3" align="right" style="border-top-style: solid; border-top-width: 1"><font FACE="Verdana" SIZE="1">
      <p style="margin-right: 20">(220)</font></td>
    <td WIDTH="3%" VALIGN="TOP" COLSPAN="2" style="border-top-style: solid; border-top-width: 1"><font FACE="Verdana" SIZE="1">
      <p ALIGN="RIGHT">$</font></td>
    <td WIDTH="14%" VALIGN="TOP" style="border-top-style: solid; border-top-width: 1"><font FACE="Verdana" SIZE="1">
      <p ALIGN="CENTER">217 &#45; 317</font></td>
    <td WIDTH="3%" VALIGN="TOP" style="border-top-style: solid; border-top-width: 1"><font FACE="Verdana" SIZE="1">
      <p ALIGN="RIGHT">$</font></td>
    <td WIDTH="10%" VALIGN="TOP" align="right" style="border-top-style: solid; border-top-width: 1"><font FACE="Verdana" SIZE="1">
      <p style="margin-right: 20">287</font></td>
  </tr>
  <tr>
    <td WIDTH="42%" VALIGN="TOP"><font FACE="Verdana" SIZE="1">
      <p>After&#45;tax cash used for restructuring activities</font></td>
    <td WIDTH="3%" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="14%" VALIGN="TOP" align="right"><font FACE="Verdana" SIZE="1">
      <p style="margin-right: 20">11</font></td>
    <td WIDTH="3%" VALIGN="TOP" COLSPAN="3">&nbsp;</td>
    <td WIDTH="10%" VALIGN="TOP" COLSPAN="3" align="right"><font FACE="Verdana" SIZE="1">
      <p style="margin-right: 20">11</font></td>
    <td WIDTH="3%" VALIGN="TOP" COLSPAN="2">&nbsp;</td>
    <td WIDTH="14%" VALIGN="TOP"><font FACE="Verdana" SIZE="1">
      <p ALIGN="CENTER">83</font></td>
    <td WIDTH="3%" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="10%" VALIGN="TOP" align="right"><font FACE="Verdana" SIZE="1">
      <p style="margin-right: 20">60</font></td>
  </tr>
  <tr>
    <td WIDTH="42%" VALIGN="TOP" style="border-top-style: solid; border-top-width: 1; border-bottom-style: solid"><b><font FACE="Verdana" SIZE="1">
      <p>Free cash flow before restructuring &#45; as<br>
      &#160;&#160;&#160;&#160;&#160;adjusted</font></b></td>
    <td WIDTH="3%" VALIGN="TOP" style="border-top-style: solid; border-top-width: 1; border-bottom-style: solid"><b><font FACE="Verdana" SIZE="1">
      <p ALIGN="RIGHT"><br>
      $</font></b></td>
    <td WIDTH="14%" VALIGN="TOP" style="border-top-style: solid; border-top-width: 1; border-bottom-style: solid" align="right"><b><font FACE="Verdana" SIZE="1">
      <p style="margin-right: 20"><br>
      (66)</font></b></td>
    <td WIDTH="3%" VALIGN="TOP" COLSPAN="3" style="border-top-style: solid; border-top-width: 1; border-bottom-style: solid"><b><font FACE="Verdana" SIZE="1">
      <p ALIGN="RIGHT"><br>
      $</font></b></td>
    <td WIDTH="10%" VALIGN="TOP" COLSPAN="3" align="right" style="border-top-style: solid; border-top-width: 1; border-bottom-style: solid"><b><font FACE="Verdana" SIZE="1">
      <p style="margin-right: 20"><br>
      (209)</font></b></td>
    <td WIDTH="3%" VALIGN="TOP" COLSPAN="2" style="border-top-style: solid; border-top-width: 1; border-bottom-style: solid"><b><font FACE="Verdana" SIZE="1">
      <p ALIGN="RIGHT"><br>
      $</font></b></td>
    <td WIDTH="14%" VALIGN="TOP" style="border-top-style: solid; border-top-width: 1; border-bottom-style: solid"><b><font FACE="Verdana" SIZE="1">
      <p ALIGN="CENTER"><br>
      300 &#45; 400</font></b></td>
    <td WIDTH="3%" VALIGN="TOP" style="border-top-style: solid; border-top-width: 1; border-bottom-style: solid"><b><font FACE="Verdana" SIZE="1">
      <p ALIGN="RIGHT"><br>
      $</font></b></td>
    <td WIDTH="10%" VALIGN="TOP" align="right" style="border-top-style: solid; border-top-width: 1; border-bottom-style: solid"><b><font FACE="Verdana" SIZE="1">
      <p style="margin-right: 20"><br>
      347</font></b></td>
  </tr>
</table>
      </center>
    </div>
<blockquote>
  <font FACE="Verdana" SIZE="1">
  </blockquote>
</font>

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