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<SEC-DOCUMENT>0000217346-04-000072.txt : 20040722
<SEC-HEADER>0000217346-04-000072.hdr.sgml : 20040722
<ACCEPTANCE-DATETIME>20040722081330
ACCESSION NUMBER:		0000217346-04-000072
CONFORMED SUBMISSION TYPE:	8-K
PUBLIC DOCUMENT COUNT:		2
CONFORMED PERIOD OF REPORT:	20040722
ITEM INFORMATION:		
ITEM INFORMATION:		Financial statements and exhibits
FILED AS OF DATE:		20040722

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:		04925508

	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
<TEXT>
<html>

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

<body>

<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>
<u>
<p ALIGN="CENTER">July 22, 2004<br>
</u>
(Date of earliest event reported)
<u>
<br>
<br>
TEXTRON INC.<br>
</u>
(Exact name of Registrant as specified in its charter)</p>
<p ALIGN="CENTER">&nbsp;</p>
<div align="center">
  <center>
<table CELLSPACING="1" CELLPADDING="1" WIDTH="590">
  <tr>
    <td WIDTH="20%" VALIGN="TOP">
      <p ALIGN="CENTER" style="border-bottom-style: solid; border-bottom-width: 1">Delaware</td>
    <td WIDTH="13%" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="38%" VALIGN="TOP">
      <p ALIGN="CENTER" style="border-bottom-style: solid; border-bottom-width: 1">I&#45;5480</td>
    <td WIDTH="6%" 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="20%" VALIGN="TOP">
      <p>(State of<br>
      Incorporation)</td>
    <td WIDTH="13%" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="38%" VALIGN="TOP">
      <p ALIGN="CENTER">(Commission File No.)</td>
    <td WIDTH="6%" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="23%" VALIGN="TOP">
      <p ALIGN="CENTER">(IRS Employer Identification No.)</td>
  </tr>
</table>
  </center>
</div>
<p ALIGN="JUSTIFY">&nbsp;</p>
<div align="center">
  <center>
<table CELLSPACING="1" CELLPADDING="1" WIDTH="590">
  <tr>
    <td WIDTH="16%" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="69%" VALIGN="TOP">
      <p ALIGN="CENTER" style="border-bottom-style: solid; border-bottom-width: 1">40 Westminster Street, Providence, Rhode Island 02903</td>
    <td WIDTH="15%" VALIGN="TOP">&nbsp;</td>
  </tr>
  <tr>
    <td WIDTH="16%" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="69%" VALIGN="TOP">
      <p ALIGN="CENTER">(Address of principal executive offices, including zip
      code)</td>
    <td WIDTH="15%" VALIGN="TOP">&nbsp;</td>
  </tr>
</table>
  </center>
</div>
<p ALIGN="CENTER">&nbsp;</p>
<div align="center">
  <center>
<table CELLSPACING="1" CELLPADDING="1" WIDTH="590">
  <tr>
    <td WIDTH="16%" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="69%" VALIGN="TOP"><u>
      <p ALIGN="CENTER">&#160;&#160;&#160;&#160;&#160;(401)
      421&#45;2800&#160;&#160;&#160;&#160;&#160;</u></td>
    <td WIDTH="14%" VALIGN="TOP">&nbsp;</td>
  </tr>
  <tr>
    <td WIDTH="16%" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="69%" VALIGN="TOP">
      <p ALIGN="CENTER">(Registrant&#39;s telephone number, including area
      code)</td>
    <td WIDTH="14%" VALIGN="TOP">&nbsp;</td>
  </tr>
  <tr>
    <td WIDTH="16%" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="69%" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="14%" VALIGN="TOP">&nbsp;</td>
  </tr>
  <tr>
    <td WIDTH="16%" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="69%" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="14%" VALIGN="TOP">&nbsp;</td>
  </tr>
  <tr>
    <td WIDTH="16%" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="69%" VALIGN="TOP">
      <p ALIGN="CENTER" style="border-bottom-style: solid; border-bottom-width: 1">N/A</td>
    <td WIDTH="14%" VALIGN="TOP">&nbsp;</td>
  </tr>
  <tr>
    <td WIDTH="16%" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="69%" VALIGN="TOP">
      <p ALIGN="CENTER">(Former name or former address, if changed since last
      report)</td>
    <td WIDTH="14%" VALIGN="TOP">&nbsp;</td>
  </tr>
</table>
  </center>
</div>
<p ALIGN="CENTER">&nbsp;</p>
<font SIZE="2">
<p>&nbsp;</p>
<p>&nbsp;</p>
</font>
<table CELLSPACING="0" CELLPADDING="1" WIDTH="585">
  <tr>
    <td WIDTH="15%" VALIGN="TOP"><b>
      <p ALIGN="JUSTIFY">Item 7(c).</b></td>
    <td WIDTH="85%" VALIGN="TOP"><b>
      <p ALIGN="JUSTIFY">Exhibits</b></td>
  </tr>
  <tr>
    <td WIDTH="15%" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="85%" VALIGN="TOP">&nbsp;</td>
  </tr>
  <tr>
    <td WIDTH="15%" VALIGN="TOP">
      <p ALIGN="JUSTIFY">99</td>
    <td WIDTH="85%" VALIGN="TOP">
      <p ALIGN="JUSTIFY">Textron Inc. Press Release dated July 22, 2004</td>
  </tr>
  <tr>
    <td WIDTH="15%" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="85%" VALIGN="TOP">&nbsp;</td>
  </tr>
  <tr>
    <td WIDTH="15%" VALIGN="TOP"><b>
      <p ALIGN="JUSTIFY">Item 12.</b></td>
    <td WIDTH="85%" VALIGN="TOP"><b>
      <p ALIGN="JUSTIFY">Results of Operations and Financial Condition</b></td>
  </tr>
</table>
<p ALIGN="JUSTIFY">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;On
July 22, 2004, Textron Inc. issued a press release announcing its financial
results for the fiscal quarter ended July 3, 2004. This press release is
attached hereto and incorporated herein by reference as Exhibit 99.</p>
<p ALIGN="CENTER">SIGNATURES</p>
<p ALIGN="JUSTIFY">&nbsp;&#160;&#160;&#160;&#160;&#160;&#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>
<table CELLSPACING="1" CELLPADDING="1" WIDTH="590">
  <tr>
    <td WIDTH="33%" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="10%" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="57%" VALIGN="TOP">
      <p ALIGN="JUSTIFY">TEXTRON INC.</td>
  </tr>
  <tr>
    <td WIDTH="33%" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="10%" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="57%" VALIGN="TOP">
      <p ALIGN="JUSTIFY">&#160;&#160;&#160;&#160;&#160;(Registrant)</td>
  </tr>
  <tr>
    <td WIDTH="33%" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="10%" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="57%" VALIGN="TOP">&nbsp;</td>
  </tr>
  <tr>
    <td WIDTH="33%" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="10%" VALIGN="TOP">
      <p ALIGN="JUSTIFY">By:</td>
    <td WIDTH="57%" VALIGN="TOP">
      <p ALIGN="JUSTIFY" style="border-bottom-style: solid; border-bottom-width: 1">s/Michael D. Cahn</td>
  </tr>
  <tr>
    <td WIDTH="33%" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="10%" VALIGN="TOP">
      <p ALIGN="JUSTIFY">Name:</td>
    <td WIDTH="57%" VALIGN="TOP">
      <p ALIGN="JUSTIFY">Michael D. Cahn</td>
  </tr>
  <tr>
    <td WIDTH="33%" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="10%" VALIGN="TOP">
      <p ALIGN="JUSTIFY">Title:</td>
    <td WIDTH="57%" VALIGN="TOP">
      <p>Senior Associate General Counsel&#45;Securities<br>
      &#160;&#160;&#160;&#160;and Assistant Secretary</td>
  </tr>
  <tr>
    <td WIDTH="33%" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="10%" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="57%" VALIGN="TOP">&nbsp;</td>
  </tr>
  <tr>
    <td WIDTH="33%" VALIGN="TOP">
      <p ALIGN="JUSTIFY">Dated: July 22, 2004</td>
    <td WIDTH="10%" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="57%" VALIGN="TOP">&nbsp;</td>
  </tr>
</table>
<p ALIGN="JUSTIFY">&nbsp;</p>
<p ALIGN="CENTER">EXHIBIT INDEX</p>
<p ALIGN="JUSTIFY">&nbsp;</p>
<table CELLSPACING="0" CELLPADDING="1" WIDTH="590">
  <tr>
    <td WIDTH="18%" VALIGN="TOP"><u>
      <p ALIGN="JUSTIFY">Exhibit No</u>.</td>
    <td WIDTH="82%" VALIGN="TOP"><u>
      <p ALIGN="JUSTIFY">Exhibit</u></td>
  </tr>
  <tr>
    <td WIDTH="18%" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="82%" VALIGN="TOP">&nbsp;</td>
  </tr>
  <tr>
    <td WIDTH="18%" VALIGN="TOP">
      <p ALIGN="JUSTIFY">99</td>
    <td WIDTH="82%" VALIGN="TOP">
      <p ALIGN="JUSTIFY">Textron Inc. Press Release dated July 22, 2004.</td>
  </tr>
</table>
<p ALIGN="JUSTIFY">&nbsp;</p>

</body>

</html>

</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-99
<SEQUENCE>2
<FILENAME>press.htm
<TEXT>
<html>

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

<body>

<font SIZE="2">

<b>
<table CELLSPACING="0" BORDER="0" CELLPADDING="8" WIDTH="716">
  <tr>
    <td WIDTH="100%" VALIGN="TOP" HEIGHT="12" colspan="4">
      <p align="right"><font face="Verdana">Exhibit 99</font>

<font SIZE="2">

<b>
      <p></p>
</b>
</font></td>
  </tr>
  <tr>
    <td WIDTH="23%" VALIGN="TOP" HEIGHT="11">

<font SIZE="2">

<b><font FACE="Verdana" SIZE="5" COLOR="#7f7f7f">
      TEXTRON</font></b>
</font></td>
    <td WIDTH="77%" VALIGN="TOP" COLSPAN="3" HEIGHT="11">
    </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" COLSPAN="2"><b><font FACE="Verdana" SIZE="1" COLOR="#7f7f7f">
      <p>Corporate Communications<br>
      Department</font></b></p>
    </td>
    <td WIDTH="34%" VALIGN="TOP"><font FACE="Verdana" SIZE="1" COLOR="#7f7f7f">
      <p>&nbsp;</p>
      <p>&nbsp;</p>
      <p>&nbsp;</p>
      </font><b><font FACE="Verdana" SIZE="6" COLOR="#7f7f7f">
      <p ALIGN="RIGHT">NEWS Release</font></b></td>
  </tr>
  <tr>
    <td WIDTH="46%" VALIGN="TOP" COLSPAN="2"><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</p>
      </font></td>
    <td WIDTH="54%" VALIGN="TOP" COLSPAN="2"><font FACE="Verdana" SIZE="2" COLOR="#7f7f7f">
      <p ALIGN="RIGHT"><br>
      <b>FOR IMMEDIATE RELEASE</b></font></td>
  </tr>
  <tr>
    <td WIDTH="46%" VALIGN="TOP" COLSPAN="2"><b><font FACE="Verdana" SIZE="2">
      <p>Media Contact:</font></b><font FACE="Verdana" SIZE="2"><br>
      Karen Gordon &#45; 401&#45;457&#45;2362</font></td>
    <td WIDTH="54%" VALIGN="TOP" COLSPAN="2"><b><font FACE="Verdana" SIZE="2">
      <p><br>
      </font><font FACE="Verdana" SIZE="5"><br>
      </font></b></td>
  </tr>
  <tr>
    <td VALIGN="TOP" COLSPAN="4" HEIGHT="54"><b><font FACE="Verdana">
      <p ALIGN="CENTER">Textron Reports Second Quarter Results<br>
      </font></b><font FACE="Verdana">Increases Its Full&#45;Year EPS and
      Free Cash Flow Targets</p>
      </font></td>
  </tr>
</table>
<font FACE="Verdana" SIZE="2">
<p>&nbsp;</p>
<p>Providence, Rhode Island &#45; July 22, 2004 &#45; </font></b>
<font FACE="Verdana" SIZE="2">
 Textron Inc.
(NYSE: TXT) today reported second quarter 2004 net income was $100 million or
$0.71 per share, compared with the second quarter 2003 net income of $63 million
or $0.46 per share.</p>
<p>Second quarter 2004 revenues were $2.55 billion, up slightly from $2.53
billion in the second quarter 2003, reflecting the favorable impact of foreign
exchange. Higher volumes in the Fastening Systems and Industrial segments were
more than offset by lower volumes in the aircraft businesses.</p>
<p>Second quarter 2004 earnings included $0.17 per share in after&#45;tax
costs related to restructuring and a $0.01 per share after&#45;tax gain from
the sale of Textron&#39;s interest in a telecommunications joint venture in
Brazil. Second quarter 2003 earnings included $0.30 per share in
after&#45;tax costs related to restructuring.</p>
<p>Excluding these items, second quarter 2004 adjusted earnings per share were
$0.87, compared to $0.76 per share in the second quarter of 2003.</p>
<p>Cash flow from operating activities for the first six months of 2004 was $445
million, compared to $155 million during the same period last year, resulting in
free cash flow before restructuring for the first six months of 2004 of $360
million, compared to $91 million last year.</p>
<p>&quot;The ongoing recovery in our end markets and the benefits of our
enterprise management initiatives are becoming increasingly evident in our
results as we delivered significantly improved net operating profit and cash
flow. We also booked strong orders that will drive our future growth,&quot; said
Lewis B. Campbell, Textron chairman, president and CEO.</p>
<p>&nbsp;<b>Outlook</p>
      </b>
<p>Textron now expects full&#45;year 2004 earnings per share will be between
$3.10 and $3.25, up from $2.79 per share in 2003. The company expects third
quarter earnings per share will be between $0.70 and $0.80. These amounts
exclude restructuring costs and other special items.</p>
<p>Textron now expects its full&#45;year free cash flow before restructuring
will be between $500 and $550 million, with cash flow from operations between
$680 and $730 million.</p>
<p>&quot;We are encouraged by our improving performance and are focused on
delivering superior shareholder value &#45; both this year and beyond
&#45; as our end markets continue to strengthen, we launch new products and
we continue to reduce costs through our enterprise management initiatives,&quot;
Campbell added.<b><br>
<br>
Presentation of Results and Outlook</p>
      </b>
<p>Textron presents adjusted 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, Textron incurred $28 million in pre&#45;tax costs during the
second quarter for its restructuring program. The restructuring program is
expected to be substantially complete 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. These costs are not directly
related to ongoing business results during the quarter and are not expected to
occur with any regularity or predictability.</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 the company&#39;s 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
included below.</p>
      <b>
<p>Segment Analysis</p>
<p>Bell</p>
      </b>
<p>Bell segment revenues decreased $29 million, while profit increased $15
million.</p>
<p>Revenues decreased due to lower sales in the U.S. Government business,
partially offset by higher sales in the commercial business. U.S. Government
revenues decreased primarily due to lower revenue on the V&#45;22 program,
partially offset by higher revenue on the H&#45;1 upgrade program and higher
sales of air&#45;launched weapons. Commercial revenues increased due to
higher helicopter unit volume and higher volume in the aircraft engine business,
partially offset by lower sales of Huey II retrofit kits.</p>
<p>Segment profit increased primarily due to better cost performance. Also,
profit in the U. S. Government business increased due to higher sales of
air&#45;launched weapons and profit in the commercial business increased due
to higher sales of helicopters and the favorable resolution of a warranty issue.</p>
      <p>Backlog at Bell Helicopter of $2.5 billion was up $1.1 billion from the first
quarter 2004.</p>
      <b>
<p>Cessna</p>
<p>Cessna segment revenues and profit decreased $75 million and $22 million,
respectively.</p>
      </b>
<p>Revenues decreased primarily due to lower sales volume of used aircraft,
business jets and single engine aircraft. Profit decreased primarily due to the
lower volume of business jets and inflation, partially offset by higher pricing,
improved cost performance, fair market value adjustments for used aircraft in
2003 and the favorable impact of prior period residual value guarantees.</p>
<p>During the quarter, Cessna acquired an additional 25% ownership position in
its CitationShares joint venture from TAG Aviation. The increase in
Cessna&#39;s ownership was required in order for CitationShares to qualify
for an FAA Part 135 certification to operate a non&#45;equity jet card
program and was effective June 30, 2004. With 75% ownership of the joint
venture, Cessna will consolidate CitationShares&#39; operating results,
prospectively. The consolidation had no material impact on Cessna segment
results for the second quarter, but required that Cessna no longer include
CitationShares&#39; orders in its reported backlog.</p>
<p>Backlog at the end of the second quarter was $4.8 billion, representing
orders from unaffiliated customers. In addition, Cessna had orders from
CitationShares totaling $416 million. Backlog at the end of the first quarter
was $4.8 billion, which consisted of $4.3 billion in unaffiliated backlog and
$426 million in backlog from CitationShares.</p>
      <b>
<p>Fastening Systems</p>
      </b>
<p>Fastening Systems&#39; revenues and profit increased $47 million and $3
million, respectively.</p>
<p>Revenues increased primarily due to the favorable impact of foreign exchange
and higher sales volume. Profit increased due to improved cost performance,
higher sales volume and the favorable impact of foreign exchange. These
increases were partially offset by inflation. Inflation included higher steel
costs, which were only partially offset by pricing actions during the quarter.</p>
      <b>
<p>Industrial</p>
      </b>
<p>Industrial segment revenues and profit increased $79 million and $21 million,
respectively.</p>
<p>Revenues increased primarily due to higher sales volume at Kautex,
E&#45;Z&#45;GO and Greenlee, and the favorable impact of foreign
exchange. Profit increased primarily due to improved cost performance, lower
fair market value adjustments for used golf car inventory, improved credit
performance and higher pricing, partially offset by higher warranty costs at
Kautex.</p>
      <b>
<p>Finance</p>
      </b>
<p>Finance segment revenues decreased $5 million, while profit increased $13
million.</p>
<p>Revenues decreased primarily due to a lower average finance receivable
portfolio as a result of the liquidation of non&#45;core assets. Profit
increased primarily due to a lower provision for loan losses and an improved net
interest margin, partially offset by higher operating expense. The decrease in
the provision for loan losses reflected an improvement in portfolio performance
and lower average receivables.</p>
      <b>
<p>Conference Call Information<br>
      </b>Textron will host a conference call today, July 22, 2004, at 9:00 a.m.
Eastern time to discuss its results and outlook. The call will be available via
webcast at www.textron.com or by direct dial at (888) 428&#45;4478 in the
U.S. or (612) 288&#45;0340 outside of the U.S. (request the Textron Earnings
Conference). The call will be recorded and available for playback beginning at
12:30 p.m. Eastern time today by dialing (320) 365&#45;3844; Access Code:
723572. The recording will be available until midnight on October 20, 2004.</p>
<p>Textron Inc. (NYSE:TXT) is a $10 billion multi&#45;industry company with
more than 43,000 employees in nearly 40 countries. The company leverages its
global network of aircraft, industrial and finance businesses to provide
customers with innovative solutions and services. 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>
<p ALIGN="CENTER">###</p>
<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 speak only as of the date on which they are made, and we undertake no
obligation to update or revise any forward&#45;looking statements. 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) the impact of changes
in tax legislation (including the expiration of &quot;bonus depreciation&quot;
provisions scheduled to end in 2004); (m) Textron&#39;s ability to offset,
through cost reductions, raw material price increases and pricing pressure
brought by original equipment manufacturer customers; (n) the availability and
cost of insurance; (o) pension plan income falling below current forecasts; (p)
Textron Financial&#39;s ability to maintain portfolio credit quality; (q)
Textron Financial&#39;s access to debt financing at competitive rates; and
(r) uncertainty in estimating contingent liabilities and establishing reserves
tailored to address such contingencies.</p>
</font>

<b>
<p ALIGN="CENTER">TEXTRON INC.<br>
Revenues and Income by Business Segment<br>
Three Months Ended July 3, 2004 and June 28, 2003<br>
</b>
</font><font SIZE="2">(Dollars in millions except per share amounts)<br>
(Unaudited)</p>
<p ALIGN="CENTER">&nbsp;</p>
</font>
<div align="center">
  <center>
<table CELLSPACING="1" CELLPADDING="1" WIDTH="742">
  <tr>
    <td WIDTH="220" VALIGN="TOP" HEIGHT="5">
      <p></p>
    </td>
    <td WIDTH="211" VALIGN="TOP" COLSPAN="5" HEIGHT="5" style="border-bottom-style: solid; border-bottom-width: 1"><b><font SIZE="2">
      <p ALIGN="CENTER">July 3, 2004</font></b></td>
    <td WIDTH="25" VALIGN="TOP" HEIGHT="5" style="border-bottom-style: solid; border-bottom-width: 1">
      <p></p>
    </td>
    <td WIDTH="36" VALIGN="TOP" HEIGHT="5" style="border-bottom-style: solid; border-bottom-width: 1">
      <p></p>
    </td>
    <td WIDTH="205" VALIGN="TOP" COLSPAN="5" HEIGHT="5" style="border-bottom-style: solid; border-bottom-width: 1"><b><font SIZE="2">
      <p ALIGN="CENTER">June 28, 2003</font></b></td>
    <td WIDTH="15" VALIGN="TOP" HEIGHT="5">
      <p></p>
    </td>
  </tr>
  <tr>
    <td WIDTH="220" VALIGN="TOP" HEIGHT="5">
      <p></p>
    </td>
    <td WIDTH="84" VALIGN="TOP" COLSPAN="2" HEIGHT="5"><b><font SIZE="2">
      <p ALIGN="CENTER" style="border-bottom-style: solid; border-bottom-width: 1">GAAP</font></b></td>
    <td WIDTH="18" VALIGN="TOP" HEIGHT="5">
      <p></p>
    </td>
    <td WIDTH="95" VALIGN="TOP" COLSPAN="2" HEIGHT="5"><b><font SIZE="2">
      <p ALIGN="CENTER" style="border-bottom-style: solid; border-bottom-width: 1">As Adjusted (a)</font></b></td>
    <td WIDTH="23" VALIGN="TOP" HEIGHT="5">
      <p></p>
    </td>
    <td WIDTH="34" VALIGN="TOP" HEIGHT="5">
      <p></p>
    </td>
    <td WIDTH="83" VALIGN="TOP" COLSPAN="2" HEIGHT="5"><b><font SIZE="2">
      <p ALIGN="CENTER" style="border-bottom-style: solid; border-bottom-width: 1">GAAP</font></b></td>
    <td WIDTH="11" VALIGN="TOP" HEIGHT="5">
      <p></p>
    </td>
    <td WIDTH="97" VALIGN="TOP" COLSPAN="2" HEIGHT="5"><b><font SIZE="2">
      <p ALIGN="CENTER" style="border-bottom-style: solid; border-bottom-width: 1">As Adjusted (a)</font></b></td>
    <td WIDTH="15" VALIGN="TOP" HEIGHT="5">
      <p></p>
    </td>
  </tr>
  <tr>
    <td WIDTH="220" VALIGN="TOP"><b><font SIZE="2">
      <p>REVENUES</font></b></td>
    <td WIDTH="10" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="68" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="18" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="21" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="68" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="23" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="34" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="10" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="67" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="11" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="18" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="73" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="15" VALIGN="TOP">&nbsp;</td>
  </tr>
  <tr>
    <td WIDTH="220" VALIGN="TOP"><font SIZE="2">
      <p>MANUFACTURING:</font></td>
    <td WIDTH="10" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="68" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="18" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="21" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="68" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="23" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="34" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="10" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="67" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="11" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="18" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="73" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="15" VALIGN="TOP">&nbsp;</td>
  </tr>
  <tr>
    <td WIDTH="220" VALIGN="TOP"><font SIZE="2">
      <p>&#160;&#160;&#160;&#160;&#160;Bell</font></td>
    <td WIDTH="10" VALIGN="TOP"><font SIZE="2">
      <p ALIGN="RIGHT">$</font></td>
    <td WIDTH="68" VALIGN="TOP"><font SIZE="2">
      <p style="margin-right: 20" align="right">587</font></td>
    <td WIDTH="18" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="21" VALIGN="TOP"><font SIZE="2">
      <p ALIGN="RIGHT">$</font></td>
    <td WIDTH="68" VALIGN="TOP"><font SIZE="2">
      <p style="margin-right: 20" align="right">587</font></td>
    <td WIDTH="23" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="34" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="10" VALIGN="TOP"><font SIZE="2">
      <p ALIGN="RIGHT">$</font></td>
    <td WIDTH="67" VALIGN="TOP"><font SIZE="2">
      <p style="margin-right: 20" align="right">616</font></td>
    <td WIDTH="11" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="18" VALIGN="TOP"><font SIZE="2">
      <p ALIGN="RIGHT">$</font></td>
    <td WIDTH="73" VALIGN="TOP"><font SIZE="2">
      <p style="margin-right: 20" align="right">616</font></td>
    <td WIDTH="15" VALIGN="TOP">&nbsp;</td>
  </tr>
  <tr>
    <td WIDTH="220" VALIGN="TOP"><font SIZE="2">
      <p>&#160;&#160;&#160;&#160;&#160;Cessna</font></td>
    <td WIDTH="10" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="68" VALIGN="TOP"><font SIZE="2">
      <p style="margin-right: 20" align="right">500</font></td>
    <td WIDTH="18" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="21" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="68" VALIGN="TOP"><font SIZE="2">
      <p style="margin-right: 20" align="right">500</font></td>
    <td WIDTH="23" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="34" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="10" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="67" VALIGN="TOP"><font SIZE="2">
      <p style="margin-right: 20" align="right">575</font></td>
    <td WIDTH="11" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="18" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="73" VALIGN="TOP"><font SIZE="2">
      <p style="margin-right: 20" align="right">575</font></td>
    <td WIDTH="15" VALIGN="TOP">&nbsp;</td>
  </tr>
  <tr>
    <td WIDTH="220" VALIGN="TOP"><font SIZE="2">
      <p>&#160;&#160;&#160;&#160;&#160;Fastening Systems</font></td>
    <td WIDTH="10" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="68" VALIGN="TOP"><font SIZE="2">
      <p style="margin-right: 20" align="right">494</font></td>
    <td WIDTH="18" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="21" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="68" VALIGN="TOP"><font SIZE="2">
      <p style="margin-right: 20" align="right">494</font></td>
    <td WIDTH="23" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="34" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="10" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="67" VALIGN="TOP"><font SIZE="2">
      <p style="margin-right: 20" align="right">447</font></td>
    <td WIDTH="11" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="18" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="73" VALIGN="TOP"><font SIZE="2">
      <p style="margin-right: 20" align="right">447</font></td>
    <td WIDTH="15" VALIGN="TOP">&nbsp;</td>
  </tr>
  <tr>
    <td WIDTH="220" VALIGN="TOP"><font SIZE="2">
      <p>&#160;&#160;&#160;&#160;&#160;Industrial</font></td>
    <td WIDTH="12" VALIGN="TOP" style="border-bottom-style: solid; border-bottom-width: 1">&nbsp;</td>
    <td WIDTH="70" VALIGN="TOP" style="border-bottom-style: solid; border-bottom-width: 1"><font SIZE="2">
      <p style="margin-right: 20" align="right">829</font></td>
    <td WIDTH="18" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="21" VALIGN="TOP" style="border-bottom-style: solid; border-bottom-width: 1">&nbsp;</td>
    <td WIDTH="68" VALIGN="TOP" style="border-bottom-style: solid; border-bottom-width: 1"><font SIZE="2">
      <p style="margin-right: 20" align="right">829</font></td>
    <td WIDTH="23" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="34" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="10" VALIGN="TOP" style="border-bottom-style: solid; border-bottom-width: 1">&nbsp;</td>
    <td WIDTH="67" VALIGN="TOP" style="border-bottom-style: solid; border-bottom-width: 1"><font SIZE="2">
      <p style="margin-right: 20" align="right">750</font></td>
    <td WIDTH="11" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="18" VALIGN="TOP" style="border-bottom-style: solid; border-bottom-width: 1">&nbsp;</td>
    <td WIDTH="73" VALIGN="TOP" style="border-bottom-style: solid; border-bottom-width: 1"><font SIZE="2">
      <p style="margin-right: 20" align="right">750</font></td>
    <td WIDTH="15" VALIGN="TOP">&nbsp;</td>
  </tr>
  <tr>
    <td WIDTH="220" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="10" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="68" VALIGN="TOP"><font SIZE="2">
      <p style="margin-right: 20" align="right">2,410</font></td>
    <td WIDTH="18" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="21" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="68" VALIGN="TOP"><font SIZE="2">
      <p style="margin-right: 20" align="right">2,410</font></td>
    <td WIDTH="23" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="34" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="10" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="67" VALIGN="TOP"><font SIZE="2">
      <p style="margin-right: 20" align="right">2,388</font></td>
    <td WIDTH="11" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="18" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="73" VALIGN="TOP"><font SIZE="2">
      <p style="margin-right: 20" align="right">2,388</font></td>
    <td WIDTH="15" VALIGN="TOP">&nbsp;</td>
  </tr>
  <tr>
    <td WIDTH="220" VALIGN="TOP"><font SIZE="2">
      <p>FINANCE</font></td>
    <td WIDTH="12" VALIGN="TOP" style="border-bottom-style: solid; border-bottom-width: 1">&nbsp;</td>
    <td WIDTH="70" VALIGN="TOP" style="border-bottom-style: solid; border-bottom-width: 1"><font SIZE="2">
      <p style="margin-right: 20" align="right">137</font></td>
    <td WIDTH="18" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="21" VALIGN="TOP" style="border-bottom-style: solid; border-bottom-width: 1">&nbsp;</td>
    <td WIDTH="68" VALIGN="TOP" style="border-bottom-style: solid; border-bottom-width: 1"><font SIZE="2">
      <p style="margin-right: 20" align="right">137</font></td>
    <td WIDTH="23" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="34" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="10" VALIGN="TOP" style="border-bottom-style: solid; border-bottom-width: 1">&nbsp;</td>
    <td WIDTH="67" VALIGN="TOP" style="border-bottom-style: solid; border-bottom-width: 1"><font SIZE="2">
      <p style="margin-right: 20" align="right">142</font></td>
    <td WIDTH="11" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="18" VALIGN="TOP" style="border-bottom-style: solid; border-bottom-width: 1">&nbsp;</td>
    <td WIDTH="73" VALIGN="TOP" style="border-bottom-style: solid; border-bottom-width: 1"><font SIZE="2">
      <p style="margin-right: 20" align="right">142</font></td>
    <td WIDTH="15" VALIGN="TOP">&nbsp;</td>
  </tr>
  <tr>
    <td WIDTH="220" VALIGN="TOP"><b><font SIZE="2">
      <p>&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;Total
      revenues</font></b></td>
    <td WIDTH="12" VALIGN="TOP" style="border-bottom-style: solid"><b><font SIZE="2">
      <p ALIGN="RIGHT">$</font></b></td>
    <td WIDTH="70" VALIGN="TOP" style="border-bottom-style: solid"><b><font SIZE="2">
      <p style="margin-right: 20" align="right">2,547</font></b></td>
    <td WIDTH="18" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="21" VALIGN="TOP" style="border-bottom-style: solid"><b><font SIZE="2">
      <p ALIGN="RIGHT">$</font></b></td>
    <td WIDTH="68" VALIGN="TOP" style="border-bottom-style: solid"><b><font SIZE="2">
      <p style="margin-right: 20" align="right">2,547</font></b></td>
    <td WIDTH="23" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="34" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="10" VALIGN="TOP" style="border-bottom-style: solid"><b><font SIZE="2">
      <p ALIGN="RIGHT">$</font></b></td>
    <td WIDTH="67" VALIGN="TOP" style="border-bottom-style: solid"><b><font SIZE="2">
      <p style="margin-right: 20" align="right">2,530</font></b></td>
    <td WIDTH="11" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="18" VALIGN="TOP" style="border-bottom-style: solid"><b><font SIZE="2">
      <p ALIGN="RIGHT">$</font></b></td>
    <td WIDTH="73" VALIGN="TOP" style="border-bottom-style: solid"><b><font SIZE="2">
      <p style="margin-right: 20" align="right">2,530</font></b></td>
    <td WIDTH="15" VALIGN="TOP">&nbsp;</td>
  </tr>
  <tr>
    <td WIDTH="220" VALIGN="TOP"><b><font SIZE="2">
      <p>PROFIT</font></b></td>
    <td WIDTH="10" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="68" VALIGN="TOP">
      <p style="margin-right: 20" align="right">&nbsp;</p>
    </td>
    <td WIDTH="18" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="21" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="68" VALIGN="TOP">
      <p style="margin-right: 20" align="right">&nbsp;</p>
    </td>
    <td WIDTH="23" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="34" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="10" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="67" VALIGN="TOP">
      <p style="margin-right: 20" align="right">&nbsp;</p>
    </td>
    <td WIDTH="11" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="18" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="73" VALIGN="TOP">
      <p style="margin-right: 20" align="right">&nbsp;</p>
    </td>
    <td WIDTH="15" VALIGN="TOP">&nbsp;</td>
  </tr>
  <tr>
    <td WIDTH="220" VALIGN="TOP"><font SIZE="2">
      <p>MANUFACTURING:</font></td>
    <td WIDTH="10" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="68" VALIGN="TOP">
      <p style="margin-right: 20" align="right">&nbsp;</p>
    </td>
    <td WIDTH="18" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="21" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="68" VALIGN="TOP">
      <p style="margin-right: 20" align="right">&nbsp;</p>
    </td>
    <td WIDTH="23" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="34" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="10" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="67" VALIGN="TOP">
      <p style="margin-right: 20" align="right">&nbsp;</p>
    </td>
    <td WIDTH="11" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="18" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="73" VALIGN="TOP">
      <p style="margin-right: 20" align="right">&nbsp;</p>
    </td>
    <td WIDTH="15" VALIGN="TOP">&nbsp;</td>
  </tr>
  <tr>
    <td WIDTH="220" VALIGN="TOP"><font SIZE="2">
      <p>&#160;&#160;&#160;&#160;&#160;Bell</font></td>
    <td WIDTH="10" VALIGN="TOP"><font SIZE="2">
      <p ALIGN="RIGHT">$</font></td>
    <td WIDTH="68" VALIGN="TOP"><font SIZE="2">
      <p style="margin-right: 20" align="right">71</font></td>
    <td WIDTH="18" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="21" VALIGN="TOP"><font SIZE="2">
      <p ALIGN="RIGHT">$</font></td>
    <td WIDTH="68" VALIGN="TOP"><font SIZE="2">
      <p style="margin-right: 20" align="right">71</font></td>
    <td WIDTH="23" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="34" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="10" VALIGN="TOP"><font SIZE="2">
      <p ALIGN="RIGHT">$</font></td>
    <td WIDTH="67" VALIGN="TOP"><font SIZE="2">
      <p style="margin-right: 20" align="right">56</font></td>
    <td WIDTH="11" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="18" VALIGN="TOP"><font SIZE="2">
      <p ALIGN="RIGHT">$</font></td>
    <td WIDTH="73" VALIGN="TOP"><font SIZE="2">
      <p style="margin-right: 20" align="right">56</font></td>
    <td WIDTH="15" VALIGN="TOP">&nbsp;</td>
  </tr>
  <tr>
    <td WIDTH="220" VALIGN="TOP"><font SIZE="2">
      <p>&#160;&#160;&#160;&#160;&#160;Cessna</font></td>
    <td WIDTH="10" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="68" VALIGN="TOP"><font SIZE="2">
      <p style="margin-right: 20" align="right">44</font></td>
    <td WIDTH="18" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="21" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="68" VALIGN="TOP"><font SIZE="2">
      <p style="margin-right: 20" align="right">44</font></td>
    <td WIDTH="23" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="34" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="10" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="67" VALIGN="TOP"><font SIZE="2">
      <p style="margin-right: 20" align="right">66</font></td>
    <td WIDTH="11" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="18" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="73" VALIGN="TOP"><font SIZE="2">
      <p style="margin-right: 20" align="right">66</font></td>
    <td WIDTH="15" VALIGN="TOP">&nbsp;</td>
  </tr>
  <tr>
    <td WIDTH="220" VALIGN="TOP"><font SIZE="2">
      <p>&#160;&#160;&#160;&#160;&#160;Fastening Systems</font></td>
    <td WIDTH="10" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="68" VALIGN="TOP"><font SIZE="2">
      <p style="margin-right: 20" align="right">24</font></td>
    <td WIDTH="18" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="21" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="68" VALIGN="TOP"><font SIZE="2">
      <p style="margin-right: 20" align="right">24</font></td>
    <td WIDTH="23" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="34" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="10" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="67" VALIGN="TOP"><font SIZE="2">
      <p style="margin-right: 20" align="right">21</font></td>
    <td WIDTH="11" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="18" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="73" VALIGN="TOP"><font SIZE="2">
      <p style="margin-right: 20" align="right">21</font></td>
    <td WIDTH="15" VALIGN="TOP">&nbsp;</td>
  </tr>
  <tr>
    <td WIDTH="220" VALIGN="TOP"><font SIZE="2">
      <p>&#160;&#160;&#160;&#160;&#160;Industrial</font></td>
    <td WIDTH="12" VALIGN="TOP" style="border-bottom-style: solid; border-bottom-width: 1">&nbsp;</td>
    <td WIDTH="70" VALIGN="TOP" style="border-bottom-style: solid; border-bottom-width: 1"><font SIZE="2">
      <p style="margin-right: 20" align="right">61</font></td>
    <td WIDTH="18" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="21" VALIGN="TOP" style="border-bottom-style: solid; border-bottom-width: 1">&nbsp;</td>
    <td WIDTH="68" VALIGN="TOP" style="border-bottom-style: solid; border-bottom-width: 1"><font SIZE="2">
      <p style="margin-right: 20" align="right">61</font></td>
    <td WIDTH="23" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="34" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="10" VALIGN="TOP" style="border-bottom-style: solid; border-bottom-width: 1">&nbsp;</td>
    <td WIDTH="67" VALIGN="TOP" style="border-bottom-style: solid; border-bottom-width: 1"><font SIZE="2">
      <p style="margin-right: 20" align="right">40</font></td>
    <td WIDTH="11" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="18" VALIGN="TOP" style="border-bottom-style: solid; border-bottom-width: 1">&nbsp;</td>
    <td WIDTH="73" VALIGN="TOP" style="border-bottom-style: solid; border-bottom-width: 1"><font SIZE="2">
      <p style="margin-right: 20" align="right">40</font></td>
    <td WIDTH="15" VALIGN="TOP">&nbsp;</td>
  </tr>
  <tr>
    <td WIDTH="220" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="10" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="68" VALIGN="TOP"><font SIZE="2">
      <p style="margin-right: 20" align="right">200</font></td>
    <td WIDTH="18" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="21" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="68" VALIGN="TOP"><font SIZE="2">
      <p style="margin-right: 20" align="right">200</font></td>
    <td WIDTH="23" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="34" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="10" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="67" VALIGN="TOP"><font SIZE="2">
      <p style="margin-right: 20" align="right">183</font></td>
    <td WIDTH="11" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="18" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="73" VALIGN="TOP"><font SIZE="2">
      <p style="margin-right: 20" align="right">183</font></td>
    <td WIDTH="15" VALIGN="TOP">&nbsp;</td>
  </tr>
  <tr>
    <td WIDTH="220" VALIGN="TOP"><font SIZE="2">
      <p>FINANCE</font></td>
    <td WIDTH="12" VALIGN="TOP" style="border-bottom-style: solid; border-bottom-width: 1">&nbsp;</td>
    <td WIDTH="70" VALIGN="TOP" style="border-bottom-style: solid; border-bottom-width: 1"><font SIZE="2">
      <p style="margin-right: 20" align="right">36</font></td>
    <td WIDTH="18" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="21" VALIGN="TOP" style="border-bottom-style: solid; border-bottom-width: 1">&nbsp;</td>
    <td WIDTH="68" VALIGN="TOP" style="border-bottom-style: solid; border-bottom-width: 1"><font SIZE="2">
      <p style="margin-right: 20" align="right">36</font></td>
    <td WIDTH="23" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="34" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="10" VALIGN="TOP" style="border-bottom-style: solid; border-bottom-width: 1">&nbsp;</td>
    <td WIDTH="67" VALIGN="TOP" style="border-bottom-style: solid; border-bottom-width: 1"><font SIZE="2">
      <p style="margin-right: 20" align="right">23</font></td>
    <td WIDTH="11" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="18" VALIGN="TOP" style="border-bottom-style: solid; border-bottom-width: 1">&nbsp;</td>
    <td WIDTH="73" VALIGN="TOP" style="border-bottom-style: solid; border-bottom-width: 1"><font SIZE="2">
      <p style="margin-right: 20" align="right">23</font></td>
    <td WIDTH="15" VALIGN="TOP">&nbsp;</td>
  </tr>
  <tr>
    <td WIDTH="220" VALIGN="TOP"><b><font SIZE="2">
      <p>Segment profit</font></b></td>
    <td WIDTH="10" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="68" VALIGN="TOP"><b><font SIZE="2">
      <p style="margin-right: 20" align="right">236</font></b></td>
    <td WIDTH="18" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="21" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="68" VALIGN="TOP"><b><font SIZE="2">
      <p style="margin-right: 20" align="right">236</font></b></td>
    <td WIDTH="23" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="34" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="10" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="67" VALIGN="TOP"><b><font SIZE="2">
      <p style="margin-right: 20" align="right">206</font></b></td>
    <td WIDTH="11" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="18" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="73" VALIGN="TOP"><b><font SIZE="2">
      <p style="margin-right: 20" align="right">206</font></b></td>
    <td WIDTH="15" VALIGN="TOP">&nbsp;</td>
  </tr>
  <tr>
    <td WIDTH="220" VALIGN="TOP"><font SIZE="2">
      <p>Special charges (b)</font></td>
    <td WIDTH="10" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="68" VALIGN="TOP"><font SIZE="2">
      <p style="margin-right: 20" align="right">(28)</font></td>
    <td WIDTH="18" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="21" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="68" VALIGN="TOP"><font SIZE="2">
      <p style="margin-right: 20" align="right">&#45;</font></td>
    <td WIDTH="23" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="34" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="10" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="67" VALIGN="TOP"><font SIZE="2">
      <p style="margin-right: 20" align="right">(24)</font></td>
    <td WIDTH="11" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="18" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="73" VALIGN="TOP"><font SIZE="2">
      <p style="margin-right: 20" align="right">&#45;</font></td>
    <td WIDTH="15" VALIGN="TOP">&nbsp;</td>
  </tr>
  <tr>
    <td WIDTH="220" VALIGN="TOP"><font SIZE="2">
      <p>Gain on sale of business (c)</font></td>
    <td WIDTH="10" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="68" VALIGN="TOP"><font SIZE="2">
      <p style="margin-right: 20" align="right">7</font></td>
    <td WIDTH="18" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="21" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="68" VALIGN="TOP"><font SIZE="2">
      <p style="margin-right: 20" align="right">&#45;</font></td>
    <td WIDTH="23" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="34" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="10" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="67" VALIGN="TOP"><font SIZE="2">
      <p style="margin-right: 20" align="right">&#45;</font></td>
    <td WIDTH="11" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="18" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="73" VALIGN="TOP"><font SIZE="2">
      <p style="margin-right: 20" align="right">&#45;</font></td>
    <td WIDTH="15" VALIGN="TOP">&nbsp;</td>
  </tr>
  <tr>
    <td WIDTH="220" VALIGN="TOP"><font SIZE="2">
      <p>Corporate expenses and other &#45; net</font></td>
    <td WIDTH="10" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="68" VALIGN="TOP"><font SIZE="2">
      <p style="margin-right: 20" align="right">(36)</font></td>
    <td WIDTH="18" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="21" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="68" VALIGN="TOP"><font SIZE="2">
      <p style="margin-right: 20" align="right">(36)</font></td>
    <td WIDTH="23" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="34" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="10" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="67" VALIGN="TOP"><font SIZE="2">
      <p style="margin-right: 20" align="right">(30)</font></td>
    <td WIDTH="11" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="18" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="73" VALIGN="TOP"><font SIZE="2">
      <p style="margin-right: 20" align="right">(30)</font></td>
    <td WIDTH="15" VALIGN="TOP">&nbsp;</td>
  </tr>
  <tr>
    <td WIDTH="220" VALIGN="TOP"><font SIZE="2">
      <p>Interest expense, net</font></td>
    <td WIDTH="12" VALIGN="TOP" style="border-bottom-style: solid; border-bottom-width: 1">&nbsp;</td>
    <td WIDTH="70" VALIGN="TOP" style="border-bottom-style: solid; border-bottom-width: 1"><font SIZE="2">
      <p style="margin-right: 20" align="right">(25)</font></td>
    <td WIDTH="18" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="21" VALIGN="TOP" style="border-bottom-style: solid; border-bottom-width: 1">&nbsp;</td>
    <td WIDTH="68" VALIGN="TOP" style="border-bottom-style: solid; border-bottom-width: 1"><font SIZE="2">
      <p style="margin-right: 20" align="right">(25)</font></td>
    <td WIDTH="23" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="34" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="10" VALIGN="TOP" style="border-bottom-style: solid; border-bottom-width: 1">&nbsp;</td>
    <td WIDTH="67" VALIGN="TOP" style="border-bottom-style: solid; border-bottom-width: 1"><font SIZE="2">
      <p style="margin-right: 20" align="right">(22)</font></td>
    <td WIDTH="11" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="18" VALIGN="TOP" style="border-bottom-style: solid; border-bottom-width: 1">&nbsp;</td>
    <td WIDTH="73" VALIGN="TOP" style="border-bottom-style: solid; border-bottom-width: 1"><font SIZE="2">
      <p style="margin-right: 20" align="right">(22)</font></td>
    <td WIDTH="15" VALIGN="TOP">&nbsp;</td>
  </tr>
  <tr>
    <td WIDTH="220" VALIGN="TOP"><font SIZE="2">
      <p>Income from continuing operations<br>
      &#160;&#160;&#160;&#160;&#160;before income taxes and
      distributions<br>
      &#160;&#160;&#160;&#160;&#160;on preferred securities
      of subsidiary<br>
      &#160;&#160;&#160;&#160;&#160;trusts</font></td>
    <td WIDTH="10" VALIGN="TOP"><font SIZE="2">
      <p ALIGN="RIGHT"><br>
      <br>
      <br>
      </font></td>
    <td WIDTH="68" VALIGN="TOP"><font SIZE="2">
      <p style="margin-right: 20" align="right"><br>
      <br>
      <br>
      154</font></td>
    <td WIDTH="18" VALIGN="TOP"><font SIZE="2">
      <p ALIGN="RIGHT"><br>
      <br>
      <br>
      </font></td>
    <td WIDTH="21" VALIGN="TOP"><font SIZE="2">
      <p ALIGN="RIGHT"><br>
      <br>
      <br>
      </font></td>
    <td WIDTH="68" VALIGN="TOP"><font SIZE="2">
      <p style="margin-right: 20" align="right"><br>
      <br>
      <br>
      175</font></td>
    <td WIDTH="23" VALIGN="TOP"><font SIZE="2">
      <p ALIGN="RIGHT"><br>
      <br>
      <br>
      </font></td>
    <td WIDTH="34" VALIGN="TOP"><font SIZE="2">
      <p ALIGN="RIGHT"><br>
      <br>
      <br>
      </font></td>
    <td WIDTH="10" VALIGN="TOP"><font SIZE="2">
      <p ALIGN="RIGHT"><br>
      <br>
      <br>
      </font></td>
    <td WIDTH="67" VALIGN="TOP"><font SIZE="2">
      <p style="margin-right: 20" align="right"><br>
      <br>
      <br>
      130</font></td>
    <td WIDTH="11" VALIGN="TOP"><font SIZE="2">
      <p ALIGN="RIGHT"><br>
      <br>
      <br>
      </font></td>
    <td WIDTH="18" VALIGN="TOP"><font SIZE="2">
      <p ALIGN="RIGHT"><br>
      <br>
      <br>
      </font></td>
    <td WIDTH="73" VALIGN="TOP"><font SIZE="2">
      <p style="margin-right: 20" align="right"><br>
      <br>
      <br>
      154</font></td>
    <td WIDTH="15" VALIGN="TOP">&nbsp;</td>
  </tr>
  <tr>
    <td WIDTH="220" VALIGN="TOP"><font SIZE="2">
      <p>Income taxes</font></td>
    <td WIDTH="10" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="68" VALIGN="TOP"><font SIZE="2">
      <p style="margin-right: 20" align="right">(54)</font></td>
    <td WIDTH="18" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="21" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="68" VALIGN="TOP"><font SIZE="2">
      <p style="margin-right: 20" align="right">(53)</font></td>
    <td WIDTH="23" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="34" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="10" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="67" VALIGN="TOP"><font SIZE="2">
      <p style="margin-right: 20" align="right">(38)</font></td>
    <td WIDTH="11" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="18" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="73" VALIGN="TOP"><font SIZE="2">
      <p style="margin-right: 20" align="right">(46)</font></td>
    <td WIDTH="15" VALIGN="TOP">&nbsp;</td>
  </tr>
  <tr>
    <td WIDTH="220" VALIGN="TOP"><font SIZE="2">
      <p>Distributions on preferred securities<br>
      &#160;&#160;&#160;&#160;&#160;of manufacturing
      subsidiary trust,<br>
      &#160;&#160;&#160;&#160;&#160;net of income taxes (d)</font></td>
    <td WIDTH="12" VALIGN="TOP" style="border-bottom-style: solid; border-bottom-width: 1"><font SIZE="2">
      <p ALIGN="RIGHT"><br>
      <br>
      </font></td>
    <td WIDTH="70" VALIGN="TOP" style="border-bottom-style: solid; border-bottom-width: 1"><font SIZE="2">
      <p style="margin-right: 20" align="right"><br>
      <br>
      &#45;</font></td>
    <td WIDTH="18" VALIGN="TOP"><font SIZE="2">
      <p ALIGN="RIGHT"><br>
      <br>
      </font></td>
    <td WIDTH="21" VALIGN="TOP" style="border-bottom-style: solid; border-bottom-width: 1"><font SIZE="2">
      <p ALIGN="RIGHT"><br>
      <br>
      </font></td>
    <td WIDTH="68" VALIGN="TOP" style="border-bottom-style: solid; border-bottom-width: 1"><font SIZE="2">
      <p style="margin-right: 20" align="right"><br>
      <br>
      &#45;</font></td>
    <td WIDTH="23" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="34" VALIGN="TOP"><font SIZE="2">
      <p ALIGN="RIGHT"><br>
      <br>
      </font></td>
    <td WIDTH="10" VALIGN="TOP" style="border-bottom-style: solid; border-bottom-width: 1"><font SIZE="2">
      <p ALIGN="RIGHT"><br>
      <br>
      </font></td>
    <td WIDTH="67" VALIGN="TOP" style="border-bottom-style: solid; border-bottom-width: 1"><font SIZE="2">
      <p style="margin-right: 20" align="right"><br>
      <br>
      (7)</font></td>
    <td WIDTH="11" VALIGN="TOP"><font SIZE="2">
      <p ALIGN="RIGHT"><br>
      <br>
      </font></td>
    <td WIDTH="18" VALIGN="TOP" style="border-bottom-style: solid; border-bottom-width: 1"><font SIZE="2">
      <p ALIGN="RIGHT"><br>
      <br>
      </font></td>
    <td WIDTH="73" VALIGN="TOP" style="border-bottom-style: solid; border-bottom-width: 1"><font SIZE="2">
      <p style="margin-right: 20" align="right"><br>
      <br>
      (7)</font></td>
    <td WIDTH="15" VALIGN="TOP">&nbsp;</td>
  </tr>
  <tr>
    <td WIDTH="220" VALIGN="TOP"><b><font SIZE="2">
      <p>Income from continuing operations</font></b></td>
    <td WIDTH="10" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="68" VALIGN="TOP"><b><font SIZE="2">
      <p style="margin-right: 20" align="right">100</font></b></td>
    <td WIDTH="18" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="21" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="68" VALIGN="TOP"><b><font SIZE="2">
      <p style="margin-right: 20" align="right">122</font></b></td>
    <td WIDTH="23" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="34" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="10" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="67" VALIGN="TOP"><b><font SIZE="2">
      <p style="margin-right: 20" align="right">85</font></b></td>
    <td WIDTH="11" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="18" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="73" VALIGN="TOP"><b><font SIZE="2">
      <p style="margin-right: 20" align="right">101</font></b></td>
    <td WIDTH="15" VALIGN="TOP">&nbsp;</td>
  </tr>
  <tr>
    <td WIDTH="220" VALIGN="TOP"><font SIZE="2">
      <p>&#160;&#160;&#160;&#160;&#160;(Loss) income from
      discontinued<br>
      &#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;operations,
      net of income taxes (e)</font></td>
    <td WIDTH="12" VALIGN="TOP" style="border-bottom-style: solid; border-bottom-width: 1"><font SIZE="2">
      <p ALIGN="RIGHT"><br>
      </font></td>
    <td WIDTH="70" VALIGN="TOP" style="border-bottom-style: solid; border-bottom-width: 1"><font SIZE="2">
      <p style="margin-right: 20" align="right"><br>
      &#45;</font></td>
    <td WIDTH="18" VALIGN="TOP"><font SIZE="2">
      <p ALIGN="RIGHT"><br>
      </font></td>
    <td WIDTH="21" VALIGN="TOP" style="border-bottom-style: solid; border-bottom-width: 1"><font SIZE="2">
      <p ALIGN="RIGHT"><br>
      </font></td>
    <td WIDTH="68" VALIGN="TOP" style="border-bottom-style: solid; border-bottom-width: 1"><font SIZE="2">
      <p style="margin-right: 20" align="right"><br>
      &#45;</font></td>
    <td WIDTH="23" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="34" VALIGN="TOP"><font SIZE="2">
      <p ALIGN="RIGHT"><br>
      </font></td>
    <td WIDTH="10" VALIGN="TOP" style="border-bottom-style: solid; border-bottom-width: 1"><font SIZE="2">
      <p ALIGN="RIGHT"><br>
      </font></td>
    <td WIDTH="67" VALIGN="TOP" style="border-bottom-style: solid; border-bottom-width: 1"><font SIZE="2">
      <p style="margin-right: 20" align="right"><br>
      (22)</font></td>
    <td WIDTH="11" VALIGN="TOP"><font SIZE="2">
      <p ALIGN="RIGHT"><br>
      </font></td>
    <td WIDTH="18" VALIGN="TOP" style="border-bottom-style: solid; border-bottom-width: 1"><font SIZE="2">
      <p ALIGN="RIGHT"><br>
      </font></td>
    <td WIDTH="73" VALIGN="TOP" style="border-bottom-style: solid; border-bottom-width: 1"><font SIZE="2">
      <p style="margin-right: 20" align="right"><br>
      2</font></td>
    <td WIDTH="15" VALIGN="TOP">&nbsp;</td>
  </tr>
  <tr>
    <td WIDTH="220" VALIGN="TOP"><b><font SIZE="2">
      <p>Net income</font></b></td>
    <td WIDTH="12" VALIGN="TOP" style="border-bottom-style: solid"><b><font SIZE="2">
      <p ALIGN="RIGHT">$</font></b></td>
    <td WIDTH="70" VALIGN="TOP" style="border-bottom-style: solid"><b><font SIZE="2">
      <p style="margin-right: 20" align="right">100</font></b></td>
    <td WIDTH="18" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="21" VALIGN="TOP" style="border-bottom-style: solid"><b><font SIZE="2">
      <p ALIGN="RIGHT">$</font></b></td>
    <td WIDTH="68" VALIGN="TOP" style="border-bottom-style: solid"><b><font SIZE="2">
      <p style="margin-right: 20" align="right">122</font></b></td>
    <td WIDTH="23" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="34" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="10" VALIGN="TOP" style="border-bottom-style: solid"><b><font SIZE="2">
      <p ALIGN="RIGHT">$</font></b></td>
    <td WIDTH="67" VALIGN="TOP" style="border-bottom-style: solid"><b><font SIZE="2">
      <p style="margin-right: 20" align="right">63</font></b></td>
    <td WIDTH="11" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="18" VALIGN="TOP" style="border-bottom-style: solid"><b><font SIZE="2">
      <p ALIGN="RIGHT">$</font></b></td>
    <td WIDTH="73" VALIGN="TOP" style="border-bottom-style: solid"><b><font SIZE="2">
      <p style="margin-right: 20" align="right">103</font></b></td>
    <td WIDTH="15" VALIGN="TOP">&nbsp;</td>
  </tr>
  <tr>
    <td WIDTH="220" VALIGN="TOP"><b><font SIZE="2">
      <p>Earnings per share: (f)</font></b></td>
    <td WIDTH="10" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="68" VALIGN="TOP">
      <p style="margin-right: 20" align="right">&nbsp;</p>
    </td>
    <td WIDTH="18" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="21" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="68" VALIGN="TOP">
      <p style="margin-right: 20" align="right">&nbsp;</p>
    </td>
    <td WIDTH="23" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="34" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="10" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="67" VALIGN="TOP">
      <p style="margin-right: 20" align="right">&nbsp;</p>
    </td>
    <td WIDTH="11" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="18" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="73" VALIGN="TOP">
      <p style="margin-right: 20" align="right">&nbsp;</p>
    </td>
    <td WIDTH="15" VALIGN="TOP">&nbsp;</td>
  </tr>
  <tr>
    <td WIDTH="220" VALIGN="TOP"><b><font SIZE="2">
      <p>&#160;&#160;&#160;&#160;&#160;Income from
      continuing operations</font></b></td>
    <td WIDTH="10" VALIGN="TOP"><b><font SIZE="2">
      <p ALIGN="RIGHT">$</font></b></td>
    <td WIDTH="68" VALIGN="TOP"><b><font SIZE="2">
      <p style="margin-right: 20" align="right">0.71</font></b></td>
    <td WIDTH="18" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="21" VALIGN="TOP"><b><font SIZE="2">
      <p ALIGN="RIGHT">$</font></b></td>
    <td WIDTH="68" VALIGN="TOP"><b><font SIZE="2">
      <p style="margin-right: 20" align="right">0.87</font></b></td>
    <td WIDTH="23" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="34" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="10" VALIGN="TOP"><b><font SIZE="2">
      <p ALIGN="RIGHT">$</font></b></td>
    <td WIDTH="67" VALIGN="TOP"><b><font SIZE="2">
      <p style="margin-right: 20" align="right">0.62</font></b></td>
    <td WIDTH="11" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="18" VALIGN="TOP"><b><font SIZE="2">
      <p ALIGN="RIGHT">$</font></b></td>
    <td WIDTH="73" VALIGN="TOP"><b><font SIZE="2">
      <p style="margin-right: 20" align="right">0.74</font></b></td>
    <td WIDTH="15" VALIGN="TOP">&nbsp;</td>
  </tr>
  <tr>
    <td WIDTH="220" VALIGN="TOP"><font SIZE="2">
      <p>&#160;&#160;&#160;&#160;&#160;(Loss) income from
      discontinued<br>
      &#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;operations,
      net of income taxes (e)</font></td>
    <td WIDTH="12" VALIGN="TOP" style="border-bottom-style: solid; border-bottom-width: 1"><b><font SIZE="2">
      <p ALIGN="RIGHT"><br>
      </font></b></td>
    <td WIDTH="70" VALIGN="TOP" style="border-bottom-style: solid; border-bottom-width: 1"><b><font SIZE="2">
      <p style="margin-right: 20" align="right"><br>
      &#45;</font></b></td>
    <td WIDTH="18" VALIGN="TOP"><b><font SIZE="2">
      <p ALIGN="RIGHT"><br>
      </font></b></td>
    <td WIDTH="21" VALIGN="TOP" style="border-bottom-style: solid; border-bottom-width: 1"><b><font SIZE="2">
      <p ALIGN="RIGHT"><br>
      </font></b></td>
    <td WIDTH="68" VALIGN="TOP" style="border-bottom-style: solid; border-bottom-width: 1"><b><font SIZE="2">
      <p style="margin-right: 20" align="right"><br>
      &#45;</font></b></td>
    <td WIDTH="23" VALIGN="TOP"><b><font SIZE="2">
      <p ALIGN="RIGHT"><br>
      </font></b></td>
    <td WIDTH="34" VALIGN="TOP"><b><font SIZE="2">
      <p ALIGN="RIGHT"><br>
      </font></b></td>
    <td WIDTH="10" VALIGN="TOP" style="border-bottom-style: solid; border-bottom-width: 1"><b><font SIZE="2">
      <p ALIGN="RIGHT"><br>
      </font></b></td>
    <td WIDTH="67" VALIGN="TOP" style="border-bottom-style: solid; border-bottom-width: 1"><b><font SIZE="2">
      <p style="margin-right: 20" align="right"><br>
      (0.16)</font></b></td>
    <td WIDTH="11" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="18" VALIGN="TOP" style="border-bottom-style: solid; border-bottom-width: 1"><b><font SIZE="2">
      <p ALIGN="RIGHT"><br>
      </font></b></td>
    <td WIDTH="73" VALIGN="TOP" style="border-bottom-style: solid; border-bottom-width: 1"><b><font SIZE="2">
      <p style="margin-right: 20" align="right"><br>
      0.02</font></b></td>
    <td WIDTH="15" VALIGN="TOP">&nbsp;</td>
  </tr>
  <tr>
    <td WIDTH="220" VALIGN="TOP"><b><font SIZE="2">
      <p>&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;Net
      income</font></b></td>
    <td WIDTH="12" VALIGN="TOP" style="border-bottom-style: solid"><b><font SIZE="2">
      <p ALIGN="RIGHT">$</font></b></td>
    <td WIDTH="70" VALIGN="TOP" style="border-bottom-style: solid"><b><font SIZE="2">
      <p style="margin-right: 20" align="right">0.71</font></b></td>
    <td WIDTH="18" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="21" VALIGN="TOP" style="border-bottom-style: solid"><b><font SIZE="2">
      <p ALIGN="RIGHT">$</font></b></td>
    <td WIDTH="68" VALIGN="TOP" style="border-bottom-style: solid"><b><font SIZE="2">
      <p style="margin-right: 20" align="right">0.87</font></b></td>
    <td WIDTH="23" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="34" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="10" VALIGN="TOP" style="border-bottom-style: solid"><b><font SIZE="2">
      <p ALIGN="RIGHT">$</font></b></td>
    <td WIDTH="67" VALIGN="TOP" style="border-bottom-style: solid"><b><font SIZE="2">
      <p style="margin-right: 20" align="right">0.46</font></b></td>
    <td WIDTH="11" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="18" VALIGN="TOP" style="border-bottom-style: solid"><b><font SIZE="2">
      <p ALIGN="RIGHT">$</font></b></td>
    <td WIDTH="73" VALIGN="TOP" style="border-bottom-style: solid"><b><font SIZE="2">
      <p style="margin-right: 20" align="right">0.76</font></b></td>
    <td WIDTH="15" VALIGN="TOP">&nbsp;</td>
  </tr>
  <tr>
    <td WIDTH="220" VALIGN="TOP"><font SIZE="2">
      <p>Average diluted shares outstanding</font></td>
    <td WIDTH="84" VALIGN="TOP" COLSPAN="2"><font SIZE="2">
      <p style="border-bottom-style: solid">140,287,000</font></td>
    <td WIDTH="18" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="95" VALIGN="TOP" COLSPAN="2" style="border-bottom-style: solid"><font SIZE="2">
      <p>140,287,000</font></td>
    <td WIDTH="23" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="34" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="83" VALIGN="TOP" COLSPAN="2" style="border-bottom-style: solid"><font SIZE="2">
      <p>136,257,000</font></td>
    <td WIDTH="11" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="97" VALIGN="TOP" COLSPAN="2" style="border-bottom-style: solid"><font SIZE="2">
      <p>136,257,000</font></td>
    <td WIDTH="15" VALIGN="TOP">&nbsp;</td>
  </tr>
</table>
      </center>
      </div>
<font SIZE="2">
<p ALIGN="CENTER">&nbsp;</p>
<b>
<p ALIGN="CENTER">TEXTRON INC.<br>
Revenues and Income by Business Segment<br>
Six Months Ended July 3, 2004 and June 28, 2003<br>
</b>(Dollars in millions except per share amounts)<br>
(Unaudited)</p>
<p ALIGN="CENTER">&nbsp;</p>
</font>
      <div align="center">
        <center>
<table CELLSPACING="1" CELLPADDING="1" WIDTH="753">
  <tr>
    <td WIDTH="234" VALIGN="TOP" HEIGHT="5">
      <p></p>
    </td>
    <td WIDTH="211" VALIGN="TOP" COLSPAN="5" HEIGHT="5" style="border-bottom-style: solid; border-bottom-width: 1"><b><font SIZE="2">
      <p ALIGN="CENTER">July 3, 2004</font></b></td>
    <td WIDTH="18" VALIGN="TOP" HEIGHT="5" style="border-bottom-style: solid; border-bottom-width: 1">
      <p></p>
    </td>
    <td WIDTH="43" VALIGN="TOP" HEIGHT="5" style="border-bottom-style: solid; border-bottom-width: 1">
      <p></p>
    </td>
    <td WIDTH="201" VALIGN="TOP" COLSPAN="5" HEIGHT="5" style="border-bottom-style: solid; border-bottom-width: 1"><b><font SIZE="2">
      <p ALIGN="CENTER">June 28, 2003</font></b></td>
    <td WIDTH="15" VALIGN="TOP" HEIGHT="5">
      <p></p>
    </td>
  </tr>
  <tr>
    <td WIDTH="234" VALIGN="TOP" HEIGHT="5">
      <p></p>
    </td>
    <td WIDTH="83" VALIGN="TOP" COLSPAN="2" HEIGHT="5"><b><font SIZE="2">
      <p ALIGN="CENTER" style="border-bottom-style: solid; border-bottom-width: 1">GAAP</font></b></td>
    <td WIDTH="20" VALIGN="TOP" HEIGHT="5">
      <p></p>
    </td>
    <td WIDTH="94" VALIGN="TOP" COLSPAN="2" HEIGHT="5"><b><font SIZE="2">
      <p ALIGN="CENTER" style="border-bottom-style: solid; border-bottom-width: 1">As Adjusted (a)</font></b></td>
    <td WIDTH="16" VALIGN="TOP" HEIGHT="5">
      <p></p>
    </td>
    <td WIDTH="41" VALIGN="TOP" HEIGHT="5">
      <p></p>
    </td>
    <td WIDTH="83" VALIGN="TOP" COLSPAN="2" HEIGHT="5"><b><font SIZE="2">
      <p ALIGN="CENTER" style="border-bottom-style: solid; border-bottom-width: 1">GAAP</font></b></td>
    <td WIDTH="11" VALIGN="TOP" HEIGHT="5">
      <p></p>
    </td>
    <td WIDTH="94" VALIGN="TOP" COLSPAN="2" HEIGHT="5"><b><font SIZE="2">
      <p ALIGN="CENTER" style="border-bottom-style: solid; border-bottom-width: 1">As Adjusted (a)</font></b></td>
    <td WIDTH="15" VALIGN="TOP" HEIGHT="5">
      <p></p>
    </td>
  </tr>
  <tr>
    <td WIDTH="234" VALIGN="TOP"><b><font SIZE="2">
      <p>REVENUES</font></b></td>
    <td WIDTH="9" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="68" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="20" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="20" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="68" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="16" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="41" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="9" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="68" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="11" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="21" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="67" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="15" VALIGN="TOP">&nbsp;</td>
  </tr>
  <tr>
    <td WIDTH="234" VALIGN="TOP"><font SIZE="2">
      <p>MANUFACTURING:</font></td>
    <td WIDTH="9" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="68" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="20" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="20" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="68" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="16" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="41" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="9" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="68" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="11" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="21" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="67" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="15" VALIGN="TOP">&nbsp;</td>
  </tr>
  <tr>
    <td WIDTH="234" VALIGN="TOP"><font SIZE="2">
      <p>&#160;&#160;&#160;&#160;&#160;Bell</font></td>
    <td WIDTH="9" VALIGN="TOP"><font SIZE="2">
      <p ALIGN="RIGHT">$</font></td>
    <td WIDTH="68" VALIGN="TOP"><font SIZE="2">
      <p style="margin-right: 20" align="right">1,094</font></td>
    <td WIDTH="20" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="20" VALIGN="TOP"><font SIZE="2">
      <p ALIGN="RIGHT">$</font></td>
    <td WIDTH="68" VALIGN="TOP"><font SIZE="2">
      <p style="margin-right: 20" align="right">1,094</font></td>
    <td WIDTH="16" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="41" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="9" VALIGN="TOP"><font SIZE="2">
      <p ALIGN="RIGHT">$</font></td>
    <td WIDTH="68" VALIGN="TOP"><font SIZE="2">
      <p style="margin-right: 20" align="right">1,152</font></td>
    <td WIDTH="11" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="21" VALIGN="TOP"><font SIZE="2">
      <p ALIGN="RIGHT">$</font></td>
    <td WIDTH="67" VALIGN="TOP"><font SIZE="2">
      <p style="margin-right: 20" align="right">1,152</font></td>
    <td WIDTH="15" VALIGN="TOP">&nbsp;</td>
  </tr>
  <tr>
    <td WIDTH="234" VALIGN="TOP"><font SIZE="2">
      <p>&#160;&#160;&#160;&#160;&#160;Cessna</font></td>
    <td WIDTH="9" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="68" VALIGN="TOP"><font SIZE="2">
      <p style="margin-right: 20" align="right">918</font></td>
    <td WIDTH="20" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="20" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="68" VALIGN="TOP"><font SIZE="2">
      <p style="margin-right: 20" align="right">918</font></td>
    <td WIDTH="16" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="41" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="9" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="68" VALIGN="TOP"><font SIZE="2">
      <p style="margin-right: 20" align="right">1,163</font></td>
    <td WIDTH="11" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="21" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="67" VALIGN="TOP"><font SIZE="2">
      <p style="margin-right: 20" align="right">1,163</font></td>
    <td WIDTH="15" VALIGN="TOP">&nbsp;</td>
  </tr>
  <tr>
    <td WIDTH="234" VALIGN="TOP"><font SIZE="2">
      <p>&#160;&#160;&#160;&#160;&#160;Fastening Systems</font></td>
    <td WIDTH="9" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="68" VALIGN="TOP"><font SIZE="2">
      <p style="margin-right: 20" align="right">991</font></td>
    <td WIDTH="20" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="20" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="68" VALIGN="TOP"><font SIZE="2">
      <p style="margin-right: 20" align="right">991</font></td>
    <td WIDTH="16" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="41" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="9" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="68" VALIGN="TOP"><font SIZE="2">
      <p style="margin-right: 20" align="right">876</font></td>
    <td WIDTH="11" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="21" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="67" VALIGN="TOP"><font SIZE="2">
      <p style="margin-right: 20" align="right">876</font></td>
    <td WIDTH="15" VALIGN="TOP">&nbsp;</td>
  </tr>
  <tr>
    <td WIDTH="234" VALIGN="TOP"><font SIZE="2">
      <p>&#160;&#160;&#160;&#160;&#160;Industrial</font></td>
    <td WIDTH="9" VALIGN="TOP" style="border-bottom-style: solid; border-bottom-width: 1">&nbsp;</td>
    <td WIDTH="68" VALIGN="TOP" style="border-bottom-style: solid; border-bottom-width: 1"><font SIZE="2">
      <p style="margin-right: 20" align="right">1,627</font></td>
    <td WIDTH="20" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="20" VALIGN="TOP" style="border-bottom-style: solid; border-bottom-width: 1">&nbsp;</td>
    <td WIDTH="68" VALIGN="TOP" style="border-bottom-style: solid; border-bottom-width: 1"><font SIZE="2">
      <p style="margin-right: 20" align="right">1,627</font></td>
    <td WIDTH="16" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="41" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="9" VALIGN="TOP" style="border-bottom-style: solid; border-bottom-width: 1">&nbsp;</td>
    <td WIDTH="68" VALIGN="TOP" style="border-bottom-style: solid; border-bottom-width: 1"><font SIZE="2">
      <p style="margin-right: 20" align="right">1,456</font></td>
    <td WIDTH="11" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="21" VALIGN="TOP" style="border-bottom-style: solid; border-bottom-width: 1">&nbsp;</td>
    <td WIDTH="67" VALIGN="TOP" style="border-bottom-style: solid; border-bottom-width: 1"><font SIZE="2">
      <p style="margin-right: 20" align="right">1,456</font></td>
    <td WIDTH="15" VALIGN="TOP">&nbsp;</td>
  </tr>
  <tr>
    <td WIDTH="234" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="9" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="68" VALIGN="TOP"><font SIZE="2">
      <p style="margin-right: 20" align="right">4,630</font></td>
    <td WIDTH="20" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="20" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="68" VALIGN="TOP"><font SIZE="2">
      <p style="margin-right: 20" align="right">4,630</font></td>
    <td WIDTH="16" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="41" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="9" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="68" VALIGN="TOP"><font SIZE="2">
      <p style="margin-right: 20" align="right">4,647</font></td>
    <td WIDTH="11" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="21" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="67" VALIGN="TOP"><font SIZE="2">
      <p style="margin-right: 20" align="right">4,647</font></td>
    <td WIDTH="15" VALIGN="TOP">&nbsp;</td>
  </tr>
  <tr>
    <td WIDTH="234" VALIGN="TOP"><font SIZE="2">
      <p>FINANCE</font></td>
    <td WIDTH="9" VALIGN="TOP" style="border-bottom-style: solid; border-bottom-width: 1">&nbsp;</td>
    <td WIDTH="68" VALIGN="TOP" style="border-bottom-style: solid; border-bottom-width: 1"><font SIZE="2">
      <p style="margin-right: 20" align="right">271</font></td>
    <td WIDTH="20" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="20" VALIGN="TOP" style="border-bottom-style: solid; border-bottom-width: 1">&nbsp;</td>
    <td WIDTH="68" VALIGN="TOP" style="border-bottom-style: solid; border-bottom-width: 1"><font SIZE="2">
      <p style="margin-right: 20" align="right">271</font></td>
    <td WIDTH="16" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="41" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="9" VALIGN="TOP" style="border-bottom-style: solid; border-bottom-width: 1">&nbsp;</td>
    <td WIDTH="68" VALIGN="TOP" style="border-bottom-style: solid; border-bottom-width: 1"><font SIZE="2">
      <p style="margin-right: 20" align="right">282</font></td>
    <td WIDTH="11" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="21" VALIGN="TOP" style="border-bottom-style: solid; border-bottom-width: 1">&nbsp;</td>
    <td WIDTH="67" VALIGN="TOP" style="border-bottom-style: solid; border-bottom-width: 1"><font SIZE="2">
      <p style="margin-right: 20" align="right">282</font></td>
    <td WIDTH="15" VALIGN="TOP">&nbsp;</td>
  </tr>
  <tr>
    <td WIDTH="234" VALIGN="TOP"><b><font SIZE="2">
      <p>&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;Total
      revenues</font></b></td>
    <td WIDTH="9" VALIGN="TOP" style="border-bottom-style: solid"><b><font SIZE="2">
      <p ALIGN="RIGHT">$</font></b></td>
    <td WIDTH="68" VALIGN="TOP" style="border-bottom-style: solid"><b><font SIZE="2">
      <p style="margin-right: 20" align="right">4,901</font></b></td>
    <td WIDTH="20" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="20" VALIGN="TOP" style="border-bottom-style: solid"><b><font SIZE="2">
      <p ALIGN="RIGHT">$</font></b></td>
    <td WIDTH="68" VALIGN="TOP" style="border-bottom-style: solid"><b><font SIZE="2">
      <p style="margin-right: 20" align="right">4,901</font></b></td>
    <td WIDTH="16" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="41" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="9" VALIGN="TOP" style="border-bottom-style: solid"><b><font SIZE="2">
      <p ALIGN="RIGHT">$</font></b></td>
    <td WIDTH="68" VALIGN="TOP" style="border-bottom-style: solid"><b><font SIZE="2">
      <p style="margin-right: 20" align="right">4,929</font></b></td>
    <td WIDTH="11" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="21" VALIGN="TOP" style="border-bottom-style: solid"><b><font SIZE="2">
      <p ALIGN="RIGHT">$</font></b></td>
    <td WIDTH="67" VALIGN="TOP" style="border-bottom-style: solid"><b><font SIZE="2">
      <p style="margin-right: 20" align="right">4,929</font></b></td>
    <td WIDTH="15" VALIGN="TOP">&nbsp;</td>
  </tr>
  <tr>
    <td WIDTH="234" VALIGN="TOP"><b><font SIZE="2">
      <p>PROFIT</font></b></td>
    <td WIDTH="9" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="68" VALIGN="TOP">
      <p style="margin-right: 20" align="right">&nbsp;</p>
    </td>
    <td WIDTH="20" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="20" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="68" VALIGN="TOP">
      <p style="margin-right: 20" align="right">&nbsp;</p>
    </td>
    <td WIDTH="16" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="41" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="9" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="68" VALIGN="TOP">
      <p style="margin-right: 20" align="right">&nbsp;</p>
    </td>
    <td WIDTH="11" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="21" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="67" VALIGN="TOP">
      <p style="margin-right: 20" align="right">&nbsp;</p>
    </td>
    <td WIDTH="15" VALIGN="TOP">&nbsp;</td>
  </tr>
  <tr>
    <td WIDTH="234" VALIGN="TOP"><font SIZE="2">
      <p>MANUFACTURING:</font></td>
    <td WIDTH="9" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="68" VALIGN="TOP">
      <p style="margin-right: 20" align="right">&nbsp;</p>
    </td>
    <td WIDTH="20" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="20" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="68" VALIGN="TOP">
      <p style="margin-right: 20" align="right">&nbsp;</p>
    </td>
    <td WIDTH="16" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="41" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="9" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="68" VALIGN="TOP">
      <p style="margin-right: 20" align="right">&nbsp;</p>
    </td>
    <td WIDTH="11" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="21" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="67" VALIGN="TOP">
      <p style="margin-right: 20" align="right">&nbsp;</p>
    </td>
    <td WIDTH="15" VALIGN="TOP">&nbsp;</td>
  </tr>
  <tr>
    <td WIDTH="234" VALIGN="TOP"><font SIZE="2">
      <p>&#160;&#160;&#160;&#160;&#160;Bell</font></td>
    <td WIDTH="9" VALIGN="TOP"><font SIZE="2">
      <p ALIGN="RIGHT">$</font></td>
    <td WIDTH="68" VALIGN="TOP"><font SIZE="2">
      <p style="margin-right: 20" align="right">123</font></td>
    <td WIDTH="20" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="20" VALIGN="TOP"><font SIZE="2">
      <p ALIGN="RIGHT">$</font></td>
    <td WIDTH="68" VALIGN="TOP"><font SIZE="2">
      <p style="margin-right: 20" align="right">123</font></td>
    <td WIDTH="16" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="41" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="9" VALIGN="TOP"><font SIZE="2">
      <p ALIGN="RIGHT">$</font></td>
    <td WIDTH="68" VALIGN="TOP"><font SIZE="2">
      <p style="margin-right: 20" align="right">96</font></td>
    <td WIDTH="11" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="21" VALIGN="TOP"><font SIZE="2">
      <p ALIGN="RIGHT">$</font></td>
    <td WIDTH="67" VALIGN="TOP"><font SIZE="2">
      <p style="margin-right: 20" align="right">96</font></td>
    <td WIDTH="15" VALIGN="TOP">&nbsp;</td>
  </tr>
  <tr>
    <td WIDTH="234" VALIGN="TOP"><font SIZE="2">
      <p>&#160;&#160;&#160;&#160;&#160;Cessna</font></td>
    <td WIDTH="9" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="68" VALIGN="TOP"><font SIZE="2">
      <p style="margin-right: 20" align="right">66</font></td>
    <td WIDTH="20" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="20" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="68" VALIGN="TOP"><font SIZE="2">
      <p style="margin-right: 20" align="right">66</font></td>
    <td WIDTH="16" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="41" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="9" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="68" VALIGN="TOP"><font SIZE="2">
      <p style="margin-right: 20" align="right">125</font></td>
    <td WIDTH="11" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="21" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="67" VALIGN="TOP"><font SIZE="2">
      <p style="margin-right: 20" align="right">125</font></td>
    <td WIDTH="15" VALIGN="TOP">&nbsp;</td>
  </tr>
  <tr>
    <td WIDTH="234" VALIGN="TOP"><font SIZE="2">
      <p>&#160;&#160;&#160;&#160;&#160;Fastening Systems</font></td>
    <td WIDTH="9" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="68" VALIGN="TOP"><font SIZE="2">
      <p style="margin-right: 20" align="right">44</font></td>
    <td WIDTH="20" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="20" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="68" VALIGN="TOP"><font SIZE="2">
      <p style="margin-right: 20" align="right">44</font></td>
    <td WIDTH="16" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="41" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="9" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="68" VALIGN="TOP"><font SIZE="2">
      <p style="margin-right: 20" align="right">39</font></td>
    <td WIDTH="11" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="21" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="67" VALIGN="TOP"><font SIZE="2">
      <p style="margin-right: 20" align="right">39</font></td>
    <td WIDTH="15" VALIGN="TOP">&nbsp;</td>
  </tr>
  <tr>
    <td WIDTH="234" VALIGN="TOP"><font SIZE="2">
      <p>&#160;&#160;&#160;&#160;&#160;Industrial</font></td>
    <td WIDTH="9" VALIGN="TOP" style="border-bottom-style: solid; border-bottom-width: 1">&nbsp;</td>
    <td WIDTH="68" VALIGN="TOP" style="border-bottom-style: solid; border-bottom-width: 1"><font SIZE="2">
      <p style="margin-right: 20" align="right">108</font></td>
    <td WIDTH="20" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="20" VALIGN="TOP" style="border-bottom-style: solid; border-bottom-width: 1">&nbsp;</td>
    <td WIDTH="68" VALIGN="TOP" style="border-bottom-style: solid; border-bottom-width: 1"><font SIZE="2">
      <p style="margin-right: 20" align="right">108</font></td>
    <td WIDTH="16" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="41" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="9" VALIGN="TOP" style="border-bottom-style: solid; border-bottom-width: 1">&nbsp;</td>
    <td WIDTH="68" VALIGN="TOP" style="border-bottom-style: solid; border-bottom-width: 1"><font SIZE="2">
      <p style="margin-right: 20" align="right">74</font></td>
    <td WIDTH="11" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="21" VALIGN="TOP" style="border-bottom-style: solid; border-bottom-width: 1">&nbsp;</td>
    <td WIDTH="67" VALIGN="TOP" style="border-bottom-style: solid; border-bottom-width: 1"><font SIZE="2">
      <p style="margin-right: 20" align="right">74</font></td>
    <td WIDTH="15" VALIGN="TOP">&nbsp;</td>
  </tr>
  <tr>
    <td WIDTH="234" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="9" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="68" VALIGN="TOP"><font SIZE="2">
      <p style="margin-right: 20" align="right">341</font></td>
    <td WIDTH="20" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="20" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="68" VALIGN="TOP"><font SIZE="2">
      <p style="margin-right: 20" align="right">341</font></td>
    <td WIDTH="16" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="41" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="9" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="68" VALIGN="TOP"><font SIZE="2">
      <p style="margin-right: 20" align="right">334</font></td>
    <td WIDTH="11" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="21" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="67" VALIGN="TOP"><font SIZE="2">
      <p style="margin-right: 20" align="right">334</font></td>
    <td WIDTH="15" VALIGN="TOP">&nbsp;</td>
  </tr>
  <tr>
    <td WIDTH="234" VALIGN="TOP"><font SIZE="2">
      <p>FINANCE</font></td>
    <td WIDTH="9" VALIGN="TOP" style="border-bottom-style: solid; border-bottom-width: 1">&nbsp;</td>
    <td WIDTH="68" VALIGN="TOP" style="border-bottom-style: solid; border-bottom-width: 1"><font SIZE="2">
      <p style="margin-right: 20" align="right">67</font></td>
    <td WIDTH="20" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="20" VALIGN="TOP" style="border-bottom-style: solid; border-bottom-width: 1">&nbsp;</td>
    <td WIDTH="68" VALIGN="TOP" style="border-bottom-style: solid; border-bottom-width: 1"><font SIZE="2">
      <p style="margin-right: 20" align="right">67</font></td>
    <td WIDTH="16" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="41" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="9" VALIGN="TOP" style="border-bottom-style: solid; border-bottom-width: 1">&nbsp;</td>
    <td WIDTH="68" VALIGN="TOP" style="border-bottom-style: solid; border-bottom-width: 1"><font SIZE="2">
      <p style="margin-right: 20" align="right">46</font></td>
    <td WIDTH="11" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="21" VALIGN="TOP" style="border-bottom-style: solid; border-bottom-width: 1">&nbsp;</td>
    <td WIDTH="67" VALIGN="TOP" style="border-bottom-style: solid; border-bottom-width: 1"><font SIZE="2">
      <p style="margin-right: 20" align="right">46</font></td>
    <td WIDTH="15" VALIGN="TOP">&nbsp;</td>
  </tr>
  <tr>
    <td WIDTH="234" VALIGN="TOP"><b><font SIZE="2">
      <p>Segment profit</font></b></td>
    <td WIDTH="9" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="68" VALIGN="TOP"><b><font SIZE="2">
      <p style="margin-right: 20" align="right">408</font></b></td>
    <td WIDTH="20" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="20" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="68" VALIGN="TOP"><b><font SIZE="2">
      <p style="margin-right: 20" align="right">408</font></b></td>
    <td WIDTH="16" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="41" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="9" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="68" VALIGN="TOP"><b><font SIZE="2">
      <p style="margin-right: 20" align="right">380</font></b></td>
    <td WIDTH="11" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="21" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="67" VALIGN="TOP"><b><font SIZE="2">
      <p style="margin-right: 20" align="right">380</font></b></td>
    <td WIDTH="15" VALIGN="TOP">&nbsp;</td>
  </tr>
  <tr>
    <td WIDTH="234" VALIGN="TOP"><font SIZE="2">
      <p>Special charges (b)</font></td>
    <td WIDTH="9" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="68" VALIGN="TOP"><font SIZE="2">
      <p style="margin-right: 20" align="right">(85)</font></td>
    <td WIDTH="20" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="20" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="68" VALIGN="TOP"><font SIZE="2">
      <p style="margin-right: 20" align="right">&#45;</font></td>
    <td WIDTH="16" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="41" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="9" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="68" VALIGN="TOP"><font SIZE="2">
      <p style="margin-right: 20" align="right">(52)</font></td>
    <td WIDTH="11" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="21" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="67" VALIGN="TOP"><font SIZE="2">
      <p style="margin-right: 20" align="right">&#45;</font></td>
    <td WIDTH="15" VALIGN="TOP">&nbsp;</td>
  </tr>
  <tr>
    <td WIDTH="234" VALIGN="TOP"><font SIZE="2">
      <p>Gain on sale of businesses (c)</font></td>
    <td WIDTH="9" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="68" VALIGN="TOP"><font SIZE="2">
      <p style="margin-right: 20" align="right">7</font></td>
    <td WIDTH="20" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="20" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="68" VALIGN="TOP"><font SIZE="2">
      <p style="margin-right: 20" align="right">&#45;</font></td>
    <td WIDTH="16" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="41" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="9" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="68" VALIGN="TOP"><font SIZE="2">
      <p style="margin-right: 20" align="right">15</font></td>
    <td WIDTH="11" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="21" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="67" VALIGN="TOP"><font SIZE="2">
      <p style="margin-right: 20" align="right">&#45;</font></td>
    <td WIDTH="15" VALIGN="TOP">&nbsp;</td>
  </tr>
  <tr>
    <td WIDTH="234" VALIGN="TOP"><font SIZE="2">
      <p>Corporate expenses and other &#45; net</font></td>
    <td WIDTH="9" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="68" VALIGN="TOP"><font SIZE="2">
      <p style="margin-right: 20" align="right">(71)</font></td>
    <td WIDTH="20" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="20" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="68" VALIGN="TOP"><font SIZE="2">
      <p style="margin-right: 20" align="right">(71)</font></td>
    <td WIDTH="16" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="41" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="9" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="68" VALIGN="TOP"><font SIZE="2">
      <p style="margin-right: 20" align="right">(62)</font></td>
    <td WIDTH="11" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="21" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="67" VALIGN="TOP"><font SIZE="2">
      <p style="margin-right: 20" align="right">(62)</font></td>
    <td WIDTH="15" VALIGN="TOP">&nbsp;</td>
  </tr>
  <tr>
    <td WIDTH="234" VALIGN="TOP"><font SIZE="2">
      <p>Interest expense, net</font></td>
    <td WIDTH="9" VALIGN="TOP" style="border-bottom-style: solid; border-bottom-width: 1">&nbsp;</td>
    <td WIDTH="68" VALIGN="TOP" style="border-bottom-style: solid; border-bottom-width: 1"><font SIZE="2">
      <p style="margin-right: 20" align="right">(50)</font></td>
    <td WIDTH="20" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="20" VALIGN="TOP" style="border-bottom-style: solid; border-bottom-width: 1">&nbsp;</td>
    <td WIDTH="68" VALIGN="TOP" style="border-bottom-style: solid; border-bottom-width: 1"><font SIZE="2">
      <p style="margin-right: 20" align="right">(50)</font></td>
    <td WIDTH="16" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="41" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="9" VALIGN="TOP" style="border-bottom-style: solid; border-bottom-width: 1">&nbsp;</td>
    <td WIDTH="68" VALIGN="TOP" style="border-bottom-style: solid; border-bottom-width: 1"><font SIZE="2">
      <p style="margin-right: 20" align="right">(46)</font></td>
    <td WIDTH="11" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="21" VALIGN="TOP" style="border-bottom-style: solid; border-bottom-width: 1">&nbsp;</td>
    <td WIDTH="67" VALIGN="TOP" style="border-bottom-style: solid; border-bottom-width: 1"><font SIZE="2">
      <p style="margin-right: 20" align="right">(46)</font></td>
    <td WIDTH="15" VALIGN="TOP">&nbsp;</td>
  </tr>
  <tr>
    <td WIDTH="234" VALIGN="TOP"><font SIZE="2">
      <p>Income from continuing operations<br>
      &#160;&#160;&#160;&#160;&#160;before income taxes and
      distributions<br>
      &#160;&#160;&#160;&#160;&#160;on preferred securities
      of subsidiary<br>
      &#160;&#160;&#160;&#160;&#160;trusts</font></td>
    <td WIDTH="9" VALIGN="TOP"><font SIZE="2">
      <p ALIGN="RIGHT"><br>
      <br>
      <br>
      </font></td>
    <td WIDTH="68" VALIGN="TOP"><font SIZE="2">
      <p style="margin-right: 20" align="right"><br>
      <br>
      <br>
      209</font></td>
    <td WIDTH="20" VALIGN="TOP"><font SIZE="2">
      <p ALIGN="RIGHT"><br>
      <br>
      <br>
      </font></td>
    <td WIDTH="20" VALIGN="TOP"><font SIZE="2">
      <p ALIGN="RIGHT"><br>
      <br>
      <br>
      </font></td>
    <td WIDTH="68" VALIGN="TOP"><font SIZE="2">
      <p style="margin-right: 20" align="right"><br>
      <br>
      <br>
      287</font></td>
    <td WIDTH="16" VALIGN="TOP"><font SIZE="2">
      <p ALIGN="RIGHT"><br>
      <br>
      <br>
      </font></td>
    <td WIDTH="41" VALIGN="TOP"><font SIZE="2">
      <p ALIGN="RIGHT"><br>
      <br>
      <br>
      </font></td>
    <td WIDTH="9" VALIGN="TOP"><font SIZE="2">
      <p ALIGN="RIGHT"><br>
      <br>
      <br>
      </font></td>
    <td WIDTH="68" VALIGN="TOP"><font SIZE="2">
      <p style="margin-right: 20" align="right"><br>
      <br>
      <br>
      235</font></td>
    <td WIDTH="11" VALIGN="TOP"><font SIZE="2">
      <p ALIGN="RIGHT"><br>
      <br>
      <br>
      </font></td>
    <td WIDTH="21" VALIGN="TOP"><font SIZE="2">
      <p ALIGN="RIGHT"><br>
      <br>
      <br>
      </font></td>
    <td WIDTH="67" VALIGN="TOP"><font SIZE="2">
      <p style="margin-right: 20" align="right"><br>
      <br>
      <br>
      272</font></td>
    <td WIDTH="15" VALIGN="TOP">&nbsp;</td>
  </tr>
  <tr>
    <td WIDTH="234" VALIGN="TOP"><font SIZE="2">
      <p>Income taxes</font></td>
    <td WIDTH="9" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="68" VALIGN="TOP"><font SIZE="2">
      <p style="margin-right: 20" align="right">(72)</font></td>
    <td WIDTH="20" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="20" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="68" VALIGN="TOP"><font SIZE="2">
      <p style="margin-right: 20" align="right">(86)</font></td>
    <td WIDTH="16" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="41" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="9" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="68" VALIGN="TOP"><font SIZE="2">
      <p style="margin-right: 20" align="right">(71)</font></td>
    <td WIDTH="11" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="21" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="67" VALIGN="TOP"><font SIZE="2">
      <p style="margin-right: 20" align="right">(84)</font></td>
    <td WIDTH="15" VALIGN="TOP">&nbsp;</td>
  </tr>
  <tr>
    <td WIDTH="234" VALIGN="TOP"><font SIZE="2">
      <p>Distributions on preferred securities<br>
      &#160;&#160;&#160;&#160;&#160;of manufacturing
      subsidiary trust,<br>
      &#160;&#160;&#160;&#160;&#160;net of income taxes (d)</font></td>
    <td WIDTH="9" VALIGN="TOP" style="border-bottom-style: solid; border-bottom-width: 1"><font SIZE="2">
      <p ALIGN="RIGHT"><br>
      <br>
      </font></td>
    <td WIDTH="68" VALIGN="TOP" style="border-bottom-style: solid; border-bottom-width: 1"><font SIZE="2">
      <p style="margin-right: 20" align="right"><br>
      <br>
      &#45;</font></td>
    <td WIDTH="20" VALIGN="TOP"><font SIZE="2">
      <p ALIGN="RIGHT"><br>
      <br>
      </font></td>
    <td WIDTH="20" VALIGN="TOP" style="border-bottom-style: solid; border-bottom-width: 1"><font SIZE="2">
      <p ALIGN="RIGHT"><br>
      <br>
      </font></td>
    <td WIDTH="68" VALIGN="TOP" style="border-bottom-style: solid; border-bottom-width: 1"><font SIZE="2">
      <p style="margin-right: 20" align="right"><br>
      <br>
      &#45;</font></td>
    <td WIDTH="16" VALIGN="TOP"><font SIZE="2">
      <p ALIGN="RIGHT"><br>
      <br>
      </font></td>
    <td WIDTH="41" VALIGN="TOP"><font SIZE="2">
      <p ALIGN="RIGHT"><br>
      <br>
      </font></td>
    <td WIDTH="9" VALIGN="TOP" style="border-bottom-style: solid; border-bottom-width: 1"><font SIZE="2">
      <p ALIGN="RIGHT"><br>
      <br>
      </font></td>
    <td WIDTH="68" VALIGN="TOP" style="border-bottom-style: solid; border-bottom-width: 1"><font SIZE="2">
      <p style="margin-right: 20" align="right"><br>
      <br>
      (13)</font></td>
    <td WIDTH="11" VALIGN="TOP"><font SIZE="2">
      <p ALIGN="RIGHT"><br>
      <br>
      </font></td>
    <td WIDTH="21" VALIGN="TOP" style="border-bottom-style: solid; border-bottom-width: 1"><font SIZE="2">
      <p ALIGN="RIGHT"><br>
      <br>
      </font></td>
    <td WIDTH="67" VALIGN="TOP" style="border-bottom-style: solid; border-bottom-width: 1"><font SIZE="2">
      <p style="margin-right: 20" align="right"><br>
      <br>
      (13)</font></td>
    <td WIDTH="15" VALIGN="TOP">&nbsp;</td>
  </tr>
  <tr>
    <td WIDTH="234" VALIGN="TOP"><b><font SIZE="2">
      <p>Income from continuing operations</font></b></td>
    <td WIDTH="9" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="68" VALIGN="TOP"><b><font SIZE="2">
      <p style="margin-right: 20" align="right">137</font></b></td>
    <td WIDTH="20" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="20" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="68" VALIGN="TOP"><b><font SIZE="2">
      <p style="margin-right: 20" align="right">201</font></b></td>
    <td WIDTH="16" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="41" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="9" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="68" VALIGN="TOP"><b><font SIZE="2">
      <p style="margin-right: 20" align="right">151</font></b></td>
    <td WIDTH="11" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="21" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="67" VALIGN="TOP"><b><font SIZE="2">
      <p style="margin-right: 20" align="right">175</font></b></td>
    <td WIDTH="15" VALIGN="TOP">&nbsp;</td>
  </tr>
  <tr>
    <td WIDTH="234" VALIGN="TOP"><font SIZE="2">
      <p>(Loss) income from discontinued<br>
      &#160;&#160;&#160;&#160;&#160;operations, net of
      income taxes (e)</font></td>
    <td WIDTH="9" VALIGN="TOP" style="border-bottom-style: solid; border-bottom-width: 1"><font SIZE="2">
      <p ALIGN="RIGHT"><br>
      </font></td>
    <td WIDTH="68" VALIGN="TOP" style="border-bottom-style: solid; border-bottom-width: 1"><font SIZE="2">
      <p style="margin-right: 20" align="right"><br>
      &#45;</font></td>
    <td WIDTH="20" VALIGN="TOP"><font SIZE="2">
      <p ALIGN="RIGHT"><br>
      </font></td>
    <td WIDTH="20" VALIGN="TOP" style="border-bottom-style: solid; border-bottom-width: 1"><font SIZE="2">
      <p ALIGN="RIGHT"><br>
      </font></td>
    <td WIDTH="68" VALIGN="TOP" style="border-bottom-style: solid; border-bottom-width: 1"><font SIZE="2">
      <p style="margin-right: 20" align="right"><br>
      &#45;</font></td>
    <td WIDTH="16" VALIGN="TOP"><font SIZE="2">
      <p ALIGN="RIGHT"><br>
      </font></td>
    <td WIDTH="41" VALIGN="TOP"><font SIZE="2">
      <p ALIGN="RIGHT"><br>
      </font></td>
    <td WIDTH="9" VALIGN="TOP" style="border-bottom-style: solid; border-bottom-width: 1"><font SIZE="2">
      <p ALIGN="RIGHT"><br>
      </font></td>
    <td WIDTH="68" VALIGN="TOP" style="border-bottom-style: solid; border-bottom-width: 1"><font SIZE="2">
      <p style="margin-right: 20" align="right"><br>
      (22)</font></td>
    <td WIDTH="11" VALIGN="TOP"><font SIZE="2">
      <p ALIGN="RIGHT"><br>
      </font></td>
    <td WIDTH="21" VALIGN="TOP" style="border-bottom-style: solid; border-bottom-width: 1"><font SIZE="2">
      <p ALIGN="RIGHT"><br>
      </font></td>
    <td WIDTH="67" VALIGN="TOP" style="border-bottom-style: solid; border-bottom-width: 1"><font SIZE="2">
      <p style="margin-right: 20" align="right"><br>
      2</font></td>
    <td WIDTH="15" VALIGN="TOP">&nbsp;</td>
  </tr>
  <tr>
    <td WIDTH="234" VALIGN="TOP"><b><font SIZE="2">
      <p>Net income</font></b></td>
    <td WIDTH="9" VALIGN="TOP" style="border-bottom-style: solid"><b><font SIZE="2">
      <p ALIGN="RIGHT">$</font></b></td>
    <td WIDTH="68" VALIGN="TOP" style="border-bottom-style: solid"><b><font SIZE="2">
      <p style="margin-right: 20" align="right">137</font></b></td>
    <td WIDTH="20" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="20" VALIGN="TOP" style="border-bottom-style: solid"><b><font SIZE="2">
      <p ALIGN="RIGHT">$</font></b></td>
    <td WIDTH="68" VALIGN="TOP" style="border-bottom-style: solid"><b><font SIZE="2">
      <p style="margin-right: 20" align="right">201</font></b></td>
    <td WIDTH="16" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="41" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="9" VALIGN="TOP" style="border-bottom-style: solid"><b><font SIZE="2">
      <p ALIGN="RIGHT">$</font></b></td>
    <td WIDTH="68" VALIGN="TOP" style="border-bottom-style: solid"><b><font SIZE="2">
      <p style="margin-right: 20" align="right">129</font></b></td>
    <td WIDTH="11" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="21" VALIGN="TOP" style="border-bottom-style: solid"><b><font SIZE="2">
      <p ALIGN="RIGHT">$</font></b></td>
    <td WIDTH="67" VALIGN="TOP" style="border-bottom-style: solid"><b><font SIZE="2">
      <p style="margin-right: 20" align="right">177</font></b></td>
    <td WIDTH="15" VALIGN="TOP">&nbsp;</td>
  </tr>
  <tr>
    <td WIDTH="234" VALIGN="TOP"><b><font SIZE="2">
      <p>Earnings per share: (f)</font></b></td>
    <td WIDTH="9" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="68" VALIGN="TOP">
      <p style="margin-right: 20" align="right">&nbsp;</p>
    </td>
    <td WIDTH="20" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="20" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="68" VALIGN="TOP">
      <p style="margin-right: 20" align="right">&nbsp;</p>
    </td>
    <td WIDTH="16" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="41" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="9" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="68" VALIGN="TOP">
      <p style="margin-right: 20" align="right">&nbsp;</p>
    </td>
    <td WIDTH="11" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="21" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="67" VALIGN="TOP">
      <p style="margin-right: 20" align="right">&nbsp;</p>
    </td>
    <td WIDTH="15" VALIGN="TOP">&nbsp;</td>
  </tr>
  <tr>
    <td WIDTH="234" VALIGN="TOP"><b><font SIZE="2">
      <p>&#160;&#160;&#160;&#160;&#160;Income from
      continuing operations</font></b></td>
    <td WIDTH="9" VALIGN="TOP"><b><font SIZE="2">
      <p ALIGN="RIGHT">$</font></b></td>
    <td WIDTH="68" VALIGN="TOP"><b><font SIZE="2">
      <p style="margin-right: 20" align="right">0.97</font></b></td>
    <td WIDTH="20" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="20" VALIGN="TOP"><b><font SIZE="2">
      <p ALIGN="RIGHT">$</font></b></td>
    <td WIDTH="68" VALIGN="TOP"><b><font SIZE="2">
      <p style="margin-right: 20" align="right">1.43</font></b></td>
    <td WIDTH="16" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="41" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="9" VALIGN="TOP"><b><font SIZE="2">
      <p ALIGN="RIGHT">$</font></b></td>
    <td WIDTH="68" VALIGN="TOP"><b><font SIZE="2">
      <p style="margin-right: 20" align="right">1.11</font></b></td>
    <td WIDTH="11" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="21" VALIGN="TOP"><b><font SIZE="2">
      <p ALIGN="RIGHT">$</font></b></td>
    <td WIDTH="67" VALIGN="TOP"><b><font SIZE="2">
      <p style="margin-right: 20" align="right">1.28</font></b></td>
    <td WIDTH="15" VALIGN="TOP">&nbsp;</td>
  </tr>
  <tr>
    <td WIDTH="234" VALIGN="TOP"><font SIZE="2">
      <p>&#160;&#160;&#160;&#160;&#160;(Loss) income from
      discontinued<br>
      &#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;operations,
      net of income taxes (e)</font></td>
    <td WIDTH="9" VALIGN="TOP" style="border-bottom-style: solid; border-bottom-width: 1"><font SIZE="2">
      <p ALIGN="RIGHT"><br>
      </font></td>
    <td WIDTH="68" VALIGN="TOP" style="border-bottom-style: solid; border-bottom-width: 1"><font SIZE="2">
      <p style="margin-right: 20" align="right"><br>
      &#45;</font></td>
    <td WIDTH="20" VALIGN="TOP"><font SIZE="2">
      <p ALIGN="RIGHT"><br>
      </font></td>
    <td WIDTH="20" VALIGN="TOP" style="border-bottom-style: solid; border-bottom-width: 1"><font SIZE="2">
      <p ALIGN="RIGHT"><br>
      </font></td>
    <td WIDTH="68" VALIGN="TOP" style="border-bottom-style: solid; border-bottom-width: 1"><font SIZE="2">
      <p style="margin-right: 20" align="right"><br>
      &#45;</font></td>
    <td WIDTH="16" VALIGN="TOP"><font SIZE="2">
      <p ALIGN="RIGHT"><br>
      </font></td>
    <td WIDTH="41" VALIGN="TOP"><font SIZE="2">
      <p ALIGN="RIGHT"><br>
      </font></td>
    <td WIDTH="9" VALIGN="TOP" style="border-bottom-style: solid; border-bottom-width: 1"><font SIZE="2">
      <p ALIGN="RIGHT"><br>
      </font></td>
    <td WIDTH="68" VALIGN="TOP" style="border-bottom-style: solid; border-bottom-width: 1"><font SIZE="2">
      <p style="margin-right: 20" align="right"><br>
      (0.17)</font></td>
    <td WIDTH="11" VALIGN="TOP"><font SIZE="2">
      <p ALIGN="RIGHT"><br>
      </font></td>
    <td WIDTH="21" VALIGN="TOP" style="border-bottom-style: solid; border-bottom-width: 1"><font SIZE="2">
      <p ALIGN="RIGHT"><br>
      </font></td>
    <td WIDTH="67" VALIGN="TOP" style="border-bottom-style: solid; border-bottom-width: 1"><font SIZE="2">
      <p style="margin-right: 20" align="right"><br>
      0.02</font></td>
    <td WIDTH="15" VALIGN="TOP">&nbsp;</td>
  </tr>
  <tr>
    <td WIDTH="234" VALIGN="TOP"><b><font SIZE="2">
      <p>&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;Net
      income</font></b></td>
    <td WIDTH="9" VALIGN="TOP" style="border-bottom-style: solid"><b><font SIZE="2">
      <p ALIGN="RIGHT">$</font></b></td>
    <td WIDTH="68" VALIGN="TOP" style="border-bottom-style: solid"><b><font SIZE="2">
      <p style="margin-right: 20" align="right">0.97</font></b></td>
    <td WIDTH="20" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="20" VALIGN="TOP" style="border-bottom-style: solid"><b><font SIZE="2">
      <p ALIGN="RIGHT">$</font></b></td>
    <td WIDTH="68" VALIGN="TOP" style="border-bottom-style: solid"><b><font SIZE="2">
      <p style="margin-right: 20" align="right">1.43</font></b></td>
    <td WIDTH="16" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="41" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="9" VALIGN="TOP" style="border-bottom-style: solid"><b><font SIZE="2">
      <p ALIGN="RIGHT">$</font></b></td>
    <td WIDTH="68" VALIGN="TOP" style="border-bottom-style: solid"><b><font SIZE="2">
      <p style="margin-right: 20" align="right">0.94</font></b></td>
    <td WIDTH="11" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="21" VALIGN="TOP" style="border-bottom-style: solid"><b><font SIZE="2">
      <p ALIGN="RIGHT">$</font></b></td>
    <td WIDTH="67" VALIGN="TOP" style="border-bottom-style: solid"><b><font SIZE="2">
      <p style="margin-right: 20" align="right">1.30</font></b></td>
    <td WIDTH="15" VALIGN="TOP">&nbsp;</td>
  </tr>
  <tr>
    <td WIDTH="234" VALIGN="TOP"><font SIZE="2">
      <p>Average diluted shares outstanding</font></td>
    <td WIDTH="83" VALIGN="TOP" COLSPAN="2" style="border-bottom-style: solid"><font SIZE="2">
      <p style="margin-right: 20" align="right">140,316,000</font></td>
    <td WIDTH="20" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="94" VALIGN="TOP" COLSPAN="2" style="border-bottom-style: solid"><font SIZE="2">
      <p style="margin-right: 20" align="right">140,316,000</font></td>
    <td WIDTH="16" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="41" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="83" VALIGN="TOP" COLSPAN="2" style="border-bottom-style: solid"><font SIZE="2">
      <p style="margin-right: 20" align="right">136,659,000</font></td>
    <td WIDTH="11" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="94" VALIGN="TOP" COLSPAN="2" style="border-bottom-style: solid"><font SIZE="2">
      <p style="margin-right: 20" align="right">136,659,000</font></td>
    <td WIDTH="15" VALIGN="TOP">&nbsp;</td>
  </tr>
</table>
      </center>
      </div>
<font SIZE="2">
<p ALIGN="CENTER">&nbsp;</p>
<b>
<p ALIGN="CENTER">TEXTRON INC.<br>
Revenues and Income by Business Segment<br>
Three and Six Months Ended July 3, 2004 and June 28, 2003<br>
</b>(Dollars in millions except per share amounts)<br>
(Unaudited)</p>
<p>(a)&#160;&#160;&#160;&#160;&#160;The &quot;As
  Adjusted&quot; column excludes items recorded in special charges and gain on
  sale of businesses. 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 for previous periods or forecasting performance in
  future periods. In addition, Textron uses &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>
<blockquote>
    <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="859">
  <tr>
    <td WIDTH="2%" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="56%" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="19%" VALIGN="TOP" COLSPAN="5"><b><font SIZE="2">
      <p ALIGN="CENTER" style="border-bottom-style: solid; border-bottom-width: 1">Second Quarter</font></b></td>
    <td WIDTH="2%" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="19%" VALIGN="TOP" COLSPAN="5"><b><font SIZE="2">
      <p ALIGN="CENTER" style="border-bottom-style: solid; border-bottom-width: 1">Six Months</font></b></td>
    <td WIDTH="2%" VALIGN="TOP">&nbsp;</td>
  </tr>
  <tr>
    <td WIDTH="2%" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="56%" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="9%" VALIGN="TOP" COLSPAN="2"><b><font SIZE="2">
      <p ALIGN="CENTER" style="border-bottom-style: solid; border-bottom-width: 1">2004</font></b></td>
    <td WIDTH="2%" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="9%" VALIGN="TOP" COLSPAN="2"><b><font SIZE="2">
      <p ALIGN="CENTER" style="border-bottom-style: solid; border-bottom-width: 1">2003</font></b></td>
    <td WIDTH="2%" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="9%" VALIGN="TOP" COLSPAN="2"><b><font SIZE="2">
      <p ALIGN="CENTER" style="border-bottom-style: solid; border-bottom-width: 1">2004</font></b></td>
    <td WIDTH="2%" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="9%" VALIGN="TOP" COLSPAN="2"><b><font SIZE="2">
      <p ALIGN="CENTER" style="border-bottom-style: solid; border-bottom-width: 1">2003</font></b></td>
    <td WIDTH="2%" VALIGN="TOP">&nbsp;</td>
  </tr>
  <tr>
    <td WIDTH="2%" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="56%" VALIGN="TOP"><font SIZE="2">
      <p>GAAP net income</font></td>
    <td WIDTH="2%" VALIGN="TOP"><font SIZE="2">
      <p ALIGN="RIGHT">$</font></td>
    <td WIDTH="6%" VALIGN="TOP"><font SIZE="2">
      <p style="margin-right: 20" align="right">100</font></td>
    <td WIDTH="2%" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="2%" VALIGN="TOP"><font SIZE="2">
      <p ALIGN="RIGHT">$</font></td>
    <td WIDTH="6%" VALIGN="TOP"><font SIZE="2">
      <p style="margin-right: 20" align="right">63</font></td>
    <td WIDTH="2%" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="2%" VALIGN="TOP"><font SIZE="2">
      <p ALIGN="RIGHT">$</font></td>
    <td WIDTH="6%" VALIGN="TOP"><font SIZE="2">
      <p style="margin-right: 20" align="right">137</font></td>
    <td WIDTH="2%" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="2%" VALIGN="TOP"><font SIZE="2">
      <p ALIGN="RIGHT">$</font></td>
    <td WIDTH="6%" VALIGN="TOP"><font SIZE="2">
      <p style="margin-right: 20" align="right">129</font></td>
    <td WIDTH="2%" VALIGN="TOP">&nbsp;</td>
  </tr>
  <tr>
    <td WIDTH="2%" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="56%" VALIGN="TOP"><font SIZE="2">
      <p>Adjustments:</font></td>
    <td WIDTH="2%" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="6%" 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="6%" 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="6%" 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="6%" VALIGN="TOP">
      <p style="margin-right: 20" align="right">&nbsp;</p>
    </td>
    <td WIDTH="2%" VALIGN="TOP">&nbsp;</td>
  </tr>
  <tr>
    <td WIDTH="2%" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="56%" VALIGN="TOP"><font SIZE="2">
      <p>&#160;&#160;&#160;&#160;&#160;Special charges</font></td>
    <td WIDTH="2%" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="6%" VALIGN="TOP"><font SIZE="2">
      <p style="margin-right: 20" align="right">28</font></td>
    <td WIDTH="2%" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="2%" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="6%" VALIGN="TOP"><font SIZE="2">
      <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="6%" VALIGN="TOP"><font SIZE="2">
      <p style="margin-right: 20" align="right">85</font></td>
    <td WIDTH="2%" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="2%" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="6%" VALIGN="TOP"><font SIZE="2">
      <p style="margin-right: 20" align="right">52</font></td>
    <td WIDTH="2%" VALIGN="TOP">&nbsp;</td>
  </tr>
  <tr>
    <td WIDTH="2%" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="56%" VALIGN="TOP"><font SIZE="2">
      <p>&#160;&#160;&#160;&#160;&#160;Gain on sale of
      businesses</font></td>
    <td WIDTH="2%" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="6%" VALIGN="TOP"><font SIZE="2">
      <p style="margin-right: 20" align="right">(7)</font></td>
    <td WIDTH="2%" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="2%" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="6%" VALIGN="TOP"><font SIZE="2">
      <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="6%" VALIGN="TOP"><font SIZE="2">
      <p style="margin-right: 20" align="right">(7)</font></td>
    <td WIDTH="2%" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="2%" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="6%" VALIGN="TOP"><font SIZE="2">
      <p style="margin-right: 20" align="right">(15)</font></td>
    <td WIDTH="2%" VALIGN="TOP">&nbsp;</td>
  </tr>
  <tr>
    <td WIDTH="2%" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="56%" VALIGN="TOP"><font SIZE="2">
      <p>&#160;&#160;&#160;&#160;&#160;Tax impact of
      excluded items</font></td>
    <td WIDTH="2%" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="6%" VALIGN="TOP"><font SIZE="2">
      <p style="margin-right: 20" align="right">1</font></td>
    <td WIDTH="2%" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="2%" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="6%" VALIGN="TOP"><font SIZE="2">
      <p style="margin-right: 20" align="right">(8)</font></td>
    <td WIDTH="2%" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="2%" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="6%" VALIGN="TOP"><font SIZE="2">
      <p style="margin-right: 20" align="right">(14)</font></td>
    <td WIDTH="2%" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="2%" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="6%" VALIGN="TOP"><font SIZE="2">
      <p style="margin-right: 20" align="right">(13)</font></td>
    <td WIDTH="2%" VALIGN="TOP">&nbsp;</td>
  </tr>
  <tr>
    <td WIDTH="2%" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="56%" VALIGN="TOP"><font SIZE="2">
      <p>&#160;&#160;&#160;&#160;&#160;Special charges
      included in discontinued<br>
      &#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;operations,
      net of income taxes</font></td>
    <td WIDTH="2%" VALIGN="TOP" style="border-bottom-style: solid; border-bottom-width: 1"><font SIZE="2">
      <p ALIGN="RIGHT"><br>
      </font></td>
    <td WIDTH="6%" VALIGN="TOP" style="border-bottom-style: solid; border-bottom-width: 1"><font SIZE="2">
      <p style="margin-right: 20" align="right"><br>
      &#45;</font></td>
    <td WIDTH="2%" VALIGN="TOP"><font SIZE="2">
      <p ALIGN="RIGHT"><br>
      </font></td>
    <td WIDTH="2%" VALIGN="TOP" style="border-bottom-style: solid; border-bottom-width: 1"><font SIZE="2">
      <p ALIGN="RIGHT"><br>
      </font></td>
    <td WIDTH="6%" VALIGN="TOP" style="border-bottom-style: solid; border-bottom-width: 1"><font SIZE="2">
      <p style="margin-right: 20" align="right"><br>
      24</font></td>
    <td WIDTH="2%" VALIGN="TOP"><font SIZE="2">
      <p><br>
      </font></td>
    <td WIDTH="2%" VALIGN="TOP" style="border-bottom-style: solid; border-bottom-width: 1"><font SIZE="2">
      <p ALIGN="RIGHT"><br>
      </font></td>
    <td WIDTH="6%" VALIGN="TOP" style="border-bottom-style: solid; border-bottom-width: 1"><font SIZE="2">
      <p style="margin-right: 20" align="right"><br>
      &#45;</font></td>
    <td WIDTH="2%" VALIGN="TOP"><font SIZE="2">
      <p ALIGN="RIGHT"><br>
      </font></td>
    <td WIDTH="2%" VALIGN="TOP" style="border-bottom-style: solid; border-bottom-width: 1"><font SIZE="2">
      <p ALIGN="RIGHT"><br>
      </font></td>
    <td WIDTH="6%" VALIGN="TOP" style="border-bottom-style: solid; border-bottom-width: 1"><font SIZE="2">
      <p style="margin-right: 20" align="right"><br>
      24</font></td>
    <td WIDTH="2%" VALIGN="TOP">&nbsp;</td>
  </tr>
  <tr>
    <td WIDTH="2%" VALIGN="TOP"><b>&nbsp;</b></td>
    <td WIDTH="56%" VALIGN="TOP"><font SIZE="2">
      <p><b>Net income, as adjusted</b></font></td>
    <td WIDTH="2%" VALIGN="TOP" style="border-bottom-style: solid"><font SIZE="2">
      <p ALIGN="RIGHT"><b>$</b></font></td>
    <td WIDTH="6%" VALIGN="TOP" style="border-bottom-style: solid"><font SIZE="2">
      <p style="margin-right: 20" align="right"><b>122</b></font></td>
    <td WIDTH="2%" VALIGN="TOP"><b>&nbsp;</b></td>
    <td WIDTH="2%" VALIGN="TOP" style="border-bottom-style: solid"><font SIZE="2">
      <p ALIGN="RIGHT"><b>$</b></font></td>
    <td WIDTH="6%" VALIGN="TOP" style="border-bottom-style: solid"><font SIZE="2">
      <p style="margin-right: 20" align="right"><b>103</b></font></td>
    <td WIDTH="2%" VALIGN="TOP"><b>&nbsp;</b></td>
    <td WIDTH="2%" VALIGN="TOP" style="border-bottom-style: solid"><font SIZE="2">
      <p ALIGN="RIGHT"><b>$</b></font></td>
    <td WIDTH="6%" VALIGN="TOP" style="border-bottom-style: solid"><font SIZE="2">
      <p style="margin-right: 20" align="right"><b>201</b></font></td>
    <td WIDTH="2%" VALIGN="TOP"><b>&nbsp;</b></td>
    <td WIDTH="2%" VALIGN="TOP" style="border-bottom-style: solid"><font SIZE="2">
      <p ALIGN="RIGHT"><b>$</b></font></td>
    <td WIDTH="6%" VALIGN="TOP" style="border-bottom-style: solid"><font SIZE="2">
      <p style="margin-right: 20" align="right"><b>177</b></font></td>
    <td WIDTH="2%" VALIGN="TOP"><b>&nbsp;</b></td>
  </tr>
</table>
  </center>
</div>
  <font SIZE="2">
  <p>(b)&#160;&#160;&#160;&#160;&#160;Special charges
  include 1) restructuring expenses and fixed asset impairment charges
  associated with reducing overhead and closing, consolidating and downsizing
  manufacturing facilities, headcount reductions, consolidating operations and
  exiting non&#45;core product lines and 2) in 2004, a $12 million pretax
  gain on the sale of the remaining shares of Collins & Aikman common stock.</p>
  <p>(c)&#160;&#160;&#160;&#160;&#160;During the second
  quarter of 2004, Textron recorded a gain on the sale of its interest in two
  Brazilian&#45;based joint ventures to its joint venture partner, Metegal
  Telecom Participacoes Ltda. In the first quarter of 2003, Textron recorded a
  gain on the sale of its interest in an Italian automotive joint venture to
  Collins & Aikman.</p>
  <p>(d)&#160;&#160;&#160;&#160;&#160;Textron Inc. redeemed
  the $500 million Textron Capital I trust preferred securities in July 2003.
  The redemption was mandatory following Textron&#39;s call of its 7.92%
  Junior Subordinated Deferrable Interest Debentures, which were held by the
  trust and also redeemed in July 2003.</p>
  <p>(e)&#160;&#160;&#160;&#160;&#160;During the third
  quarter of 2003, Textron consummated the sale of its remaining OmniQuip
  business to JLG Industries, Inc. and has reclassified the financial results of
  the OmniQuip division, net of income taxes, to discontinued operations. During
  the fourth quarter of 2003, Textron sold its Small Business Direct portfolio
  to MBNA America bank, N.A. and has reclassified the financial results, net of
  income taxes, to discontinued operations.</p>
  <p>(f)&#160;&#160;&#160;&#160;&#160;Reconciliation of GAAP
  EPS to EPS, as adjusted:</p>
</font>
<div align="center">
  <center>
<table CELLSPACING="1" CELLPADDING="1" WIDTH="872">
  <tr>
    <td WIDTH="2%" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="55%" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="21%" VALIGN="TOP" COLSPAN="5"><b><font SIZE="2">
      <p ALIGN="CENTER" style="border-bottom-style: solid; border-bottom-width: 1">Second Quarter</font></b></td>
    <td WIDTH="2%" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="20%" VALIGN="TOP" COLSPAN="5"><b><font SIZE="2">
      <p ALIGN="CENTER" style="border-bottom-style: solid; border-bottom-width: 1">Six Months</font></b></td>
  </tr>
  <tr>
    <td WIDTH="2%" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="55%" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="10%" VALIGN="TOP" COLSPAN="2"><b><font SIZE="2">
      <p ALIGN="CENTER" style="border-bottom-style: solid; border-bottom-width: 1">2004</font></b></td>
    <td WIDTH="2%" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="9%" VALIGN="TOP" COLSPAN="2"><b><font SIZE="2">
      <p ALIGN="CENTER" style="border-bottom-style: solid; border-bottom-width: 1">2003</font></b></td>
    <td WIDTH="2%" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="9%" VALIGN="TOP" COLSPAN="2"><b><font SIZE="2">
      <p ALIGN="CENTER" style="border-bottom-style: solid; border-bottom-width: 1">2004</font></b></td>
    <td WIDTH="2%" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="9%" VALIGN="TOP" COLSPAN="2"><b><font SIZE="2">
      <p ALIGN="CENTER" style="border-bottom-style: solid; border-bottom-width: 1">2003</font></b></td>
  </tr>
  <tr>
    <td WIDTH="2%" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="55%" VALIGN="TOP"><font SIZE="2">
      <p>GAAP EPS</font></td>
    <td WIDTH="2%" VALIGN="TOP"><font SIZE="2">
      <p ALIGN="RIGHT">$</font></td>
    <td WIDTH="7%" VALIGN="TOP"><font SIZE="2">
      <p style="margin-right: 20" align="right">0.71</font></td>
    <td WIDTH="2%" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="2%" VALIGN="TOP"><font SIZE="2">
      <p ALIGN="RIGHT">$</font></td>
    <td WIDTH="7%" VALIGN="TOP"><font SIZE="2">
      <p style="margin-right: 20" align="right">0.46</font></td>
    <td WIDTH="2%" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="2%" VALIGN="TOP"><font SIZE="2">
      <p ALIGN="RIGHT">$</font></td>
    <td WIDTH="7%" VALIGN="TOP"><font SIZE="2">
      <p style="margin-right: 20" align="right">0.97</font></td>
    <td WIDTH="2%" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="2%" VALIGN="TOP"><font SIZE="2">
      <p ALIGN="RIGHT">$</font></td>
    <td WIDTH="7%" VALIGN="TOP"><font SIZE="2">
      <p style="margin-right: 20" align="right">0.94</font></td>
  </tr>
  <tr>
    <td WIDTH="2%" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="55%" VALIGN="TOP"><font SIZE="2">
      <p>Adjustments:</font></td>
    <td WIDTH="2%" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="7%" 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="7%" 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="7%" 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="7%" VALIGN="TOP">
      <p style="margin-right: 20" align="right">&nbsp;</p>
    </td>
  </tr>
  <tr>
    <td WIDTH="2%" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="55%" VALIGN="TOP"><font SIZE="2">
      <p>&#160;&#160;&#160;&#160;&#160;Special charges</font></td>
    <td WIDTH="2%" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="7%" VALIGN="TOP"><font SIZE="2">
      <p style="margin-right: 20" align="right">0.17</font></td>
    <td WIDTH="2%" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="2%" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="7%" VALIGN="TOP"><font SIZE="2">
      <p style="margin-right: 20" align="right">0.12</font></td>
    <td WIDTH="2%" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="2%" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="7%" VALIGN="TOP"><font SIZE="2">
      <p style="margin-right: 20" align="right">0.47</font></td>
    <td WIDTH="2%" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="2%" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="7%" VALIGN="TOP"><font SIZE="2">
      <p style="margin-right: 20" align="right">0.26</font></td>
  </tr>
  <tr>
    <td WIDTH="2%" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="55%" VALIGN="TOP"><font SIZE="2">
      <p>&#160;&#160;&#160;&#160;&#160;Gain on sale of
      businesses</font></td>
    <td WIDTH="2%" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="7%" VALIGN="TOP"><font SIZE="2">
      <p style="margin-right: 20" align="right">(0.01)</font></td>
    <td WIDTH="2%" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="2%" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="7%" VALIGN="TOP"><font SIZE="2">
      <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="7%" VALIGN="TOP"><font SIZE="2">
      <p style="margin-right: 20" align="right">(0.01)</font></td>
    <td WIDTH="2%" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="2%" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="7%" VALIGN="TOP"><font SIZE="2">
      <p style="margin-right: 20" align="right">(0.09)</font></td>
  </tr>
  <tr>
    <td WIDTH="2%" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="55%" VALIGN="TOP"><font SIZE="2">
      <p>&#160;&#160;&#160;&#160;&#160;Special charges
      included in discontinued<br>
      &#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;operations,
      net of income taxes</font></td>
    <td WIDTH="2%" VALIGN="TOP" style="border-bottom-style: solid; border-bottom-width: 1"><font SIZE="2">
      <p ALIGN="RIGHT"><br>
      </font></td>
    <td WIDTH="7%" VALIGN="TOP" style="border-bottom-style: solid; border-bottom-width: 1"><font SIZE="2">
      <p style="margin-right: 20" align="right"><br>
      &#45;</font></td>
    <td WIDTH="2%" VALIGN="TOP"><font SIZE="2">
      <p ALIGN="RIGHT"><br>
      </font></td>
    <td WIDTH="2%" VALIGN="TOP" style="border-bottom-style: solid; border-bottom-width: 1"><font SIZE="2">
      <p ALIGN="RIGHT"><br>
      </font></td>
    <td WIDTH="7%" VALIGN="TOP" style="border-bottom-style: solid; border-bottom-width: 1"><font SIZE="2">
      <p style="margin-right: 20" align="right"><br>
      0.18</font></td>
    <td WIDTH="2%" VALIGN="TOP"><font SIZE="2">
      <p><br>
      </font></td>
    <td WIDTH="2%" VALIGN="TOP" style="border-bottom-style: solid; border-bottom-width: 1"><font SIZE="2">
      <p ALIGN="RIGHT"><br>
      </font></td>
    <td WIDTH="7%" VALIGN="TOP" style="border-bottom-style: solid; border-bottom-width: 1"><font SIZE="2">
      <p style="margin-right: 20" align="right"><br>
      &#45;</font></td>
    <td WIDTH="2%" VALIGN="TOP"><font SIZE="2">
      <p ALIGN="RIGHT"><br>
      </font></td>
    <td WIDTH="2%" VALIGN="TOP" style="border-bottom-style: solid; border-bottom-width: 1"><font SIZE="2">
      <p ALIGN="RIGHT"><br>
      </font></td>
    <td WIDTH="7%" VALIGN="TOP" style="border-bottom-style: solid; border-bottom-width: 1"><font SIZE="2">
      <p style="margin-right: 20" align="right"><br>
      0.19</font></td>
  </tr>
  <tr>
    <td WIDTH="2%" VALIGN="TOP"><b>&nbsp;</b></td>
    <td WIDTH="55%" VALIGN="TOP"><font SIZE="2">
      <p><b>EPS, as adjusted</b></font></td>
    <td WIDTH="2%" VALIGN="TOP" style="border-bottom-style: solid"><font SIZE="2">
      <p ALIGN="RIGHT"><b>$</b></font></td>
    <td WIDTH="7%" VALIGN="TOP" style="border-bottom-style: solid"><font SIZE="2">
      <p style="margin-right: 20" align="right"><b>0.87</b></font></td>
    <td WIDTH="2%" VALIGN="TOP"><b>&nbsp;</b></td>
    <td WIDTH="2%" VALIGN="TOP" style="border-bottom-style: solid"><font SIZE="2">
      <p ALIGN="RIGHT"><b>$</b></font></td>
    <td WIDTH="7%" VALIGN="TOP" style="border-bottom-style: solid"><font SIZE="2">
      <p style="margin-right: 20" align="right"><b>0.76</b></font></td>
    <td WIDTH="2%" VALIGN="TOP"><b>&nbsp;</b></td>
    <td WIDTH="2%" VALIGN="TOP" style="border-bottom-style: solid"><font SIZE="2">
      <p ALIGN="RIGHT"><b>$</b></font></td>
    <td WIDTH="7%" VALIGN="TOP" style="border-bottom-style: solid"><font SIZE="2">
      <p style="margin-right: 20" align="right"><b>1.43</b></font></td>
    <td WIDTH="2%" VALIGN="TOP"><b>&nbsp;</b></td>
    <td WIDTH="2%" VALIGN="TOP" style="border-bottom-style: solid"><font SIZE="2">
      <p ALIGN="RIGHT"><b>$</b></font></td>
    <td WIDTH="7%" VALIGN="TOP" style="border-bottom-style: solid"><font SIZE="2">
      <p style="margin-right: 20" align="right"><b>1.30</b></font></td>
  </tr>
</table>
  </center>
</div>
<b>
<p ALIGN="CENTER"><font size="2">TEXTRON INC.<br>
Condensed Consolidated Balance Sheets<br>
</font></b><font size="2">(In millions)<br>
(Unaudited)</font></p>
<font SIZE="3">
</font>
<div align="center">
  <center>
<table CELLSPACING="1" CELLPADDING="1" WIDTH="679">
  <tr>
    <td WIDTH="64%" VALIGN="TOP"><font size="2">&nbsp;</font></td>
    <td WIDTH="16%" VALIGN="TOP"><b>
      <p ALIGN="CENTER" style="border-bottom-style: solid; border-bottom-width: 1"><font size="2">July 3,<br>
      2004</font></b></td>
    <td WIDTH="3%" VALIGN="TOP"><font size="2">&nbsp;</font></td>
    <td WIDTH="15%" VALIGN="TOP"><b>
      <p ALIGN="CENTER" style="border-bottom-style: solid; border-bottom-width: 1"><font size="2">January 3,<br>
      2004</font></b></td>
    <td WIDTH="3%" VALIGN="TOP"><font size="2">&nbsp;</font></td>
  </tr>
  <tr>
    <td WIDTH="64%" VALIGN="TOP"><b>
      <p><font size="2">Assets</font></b></td>
    <td WIDTH="16%" VALIGN="TOP"><font size="2">&nbsp;</font></td>
    <td WIDTH="3%" VALIGN="TOP"><font size="2">&nbsp;</font></td>
    <td WIDTH="15%" VALIGN="TOP"><font size="2">&nbsp;</font></td>
    <td WIDTH="3%" VALIGN="TOP"><font size="2">&nbsp;</font></td>
  </tr>
  <tr>
    <td WIDTH="64%" VALIGN="TOP">
      <p><font size="2">Cash and cash equivalents</font></td>
    <td WIDTH="16%" VALIGN="TOP">
      <p><font size="2">&#160;&#160;&#160;&#160;$&#160;&#160;&#160;&#160;&#160;&#160;&#160;786</font></td>
    <td WIDTH="3%" VALIGN="TOP"><font size="2">&nbsp;</font></td>
    <td WIDTH="15%" VALIGN="TOP">
      <p><font size="2">&#160;&#160;&#160;&#160;$&#160;&#160;&#160;&#160;&#160;&#160;&#160;486</font></td>
    <td WIDTH="3%" VALIGN="TOP"><font size="2">&nbsp;</font></td>
  </tr>
  <tr>
    <td WIDTH="64%" VALIGN="TOP">
      <p><font size="2">Accounts receivable, net</font></td>
    <td WIDTH="16%" VALIGN="TOP">
      <p><font size="2">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;1,247</font></td>
    <td WIDTH="3%" VALIGN="TOP"><font size="2">&nbsp;</font></td>
    <td WIDTH="15%" VALIGN="TOP">
      <p><font size="2">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;1,135</font></td>
    <td WIDTH="3%" VALIGN="TOP"><font size="2">&nbsp;</font></td>
  </tr>
  <tr>
    <td WIDTH="64%" VALIGN="TOP">
      <p><font size="2">Inventories</font></td>
    <td WIDTH="16%" VALIGN="TOP">
      <p><font size="2">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;1,648</font></td>
    <td WIDTH="3%" VALIGN="TOP"><font size="2">&nbsp;</font></td>
    <td WIDTH="15%" VALIGN="TOP">
      <p><font size="2">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;1,439</font></td>
    <td WIDTH="3%" VALIGN="TOP"><font size="2">&nbsp;</font></td>
  </tr>
  <tr>
    <td WIDTH="64%" VALIGN="TOP">
      <p><font size="2">Other current assets</font></td>
    <td WIDTH="16%" VALIGN="TOP">
      <p><font size="2">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;443</font></td>
    <td WIDTH="3%" VALIGN="TOP"><font size="2">&nbsp;</font></td>
    <td WIDTH="15%" VALIGN="TOP">
      <p><font size="2">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;532</font></td>
    <td WIDTH="3%" VALIGN="TOP"><font size="2">&nbsp;</font></td>
  </tr>
  <tr>
    <td WIDTH="64%" VALIGN="TOP">
      <p><font size="2">Net property</font></td>
    <td WIDTH="16%" VALIGN="TOP">
      <p><font size="2">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;1,875</font></td>
    <td WIDTH="3%" VALIGN="TOP"><font size="2">&nbsp;</font></td>
    <td WIDTH="15%" VALIGN="TOP">
      <p><font size="2">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;1,925</font></td>
    <td WIDTH="3%" VALIGN="TOP"><font size="2">&nbsp;</font></td>
  </tr>
  <tr>
    <td WIDTH="64%" VALIGN="TOP">
      <p><font size="2">Other assets</font></td>
    <td WIDTH="16%" VALIGN="TOP">
      <p><font size="2">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;3,219</font></td>
    <td WIDTH="3%" VALIGN="TOP"><font size="2">&nbsp;</font></td>
    <td WIDTH="15%" VALIGN="TOP">
      <p><font size="2">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;3,240</font></td>
    <td WIDTH="3%" VALIGN="TOP"><font size="2">&nbsp;</font></td>
  </tr>
  <tr>
    <td WIDTH="64%" VALIGN="TOP">
      <p><font size="2">Textron Finance assets</font></td>
    <td WIDTH="16%" VALIGN="TOP" style="border-bottom-style: solid; border-bottom-width: 1">
      <p><font size="2">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;6,217</font></td>
    <td WIDTH="3%" VALIGN="TOP"><font size="2">&nbsp;</font></td>
    <td WIDTH="15%" VALIGN="TOP" style="border-bottom-style: solid; border-bottom-width: 1">
      <p><font size="2">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;6,333</font></td>
    <td WIDTH="3%" VALIGN="TOP"><font size="2">&nbsp;</font></td>
  </tr>
  <tr>
    <td WIDTH="64%" VALIGN="TOP">
      <p><font size="2">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;Total
      Assets</font></td>
    <td WIDTH="16%" VALIGN="TOP" style="border-bottom-style: solid">
      <p><font size="2">&#160;&#160;&#160;$&#160;&#160;&#160;&#160;15,435</font></td>
    <td WIDTH="3%" VALIGN="TOP"><font size="2">&nbsp;</font></td>
    <td WIDTH="15%" VALIGN="TOP" style="border-bottom-style: solid">
      <p><font size="2">&#160;&#160;&#160;$&#160;&#160;&#160;&#160;15,090</font></td>
    <td WIDTH="3%" VALIGN="TOP"><font size="2">&nbsp;</font></td>
  </tr>
  <tr>
    <td WIDTH="64%" VALIGN="TOP"><font size="2">&nbsp;</font></td>
    <td WIDTH="16%" VALIGN="TOP"><font size="2">&nbsp;</font></td>
    <td WIDTH="3%" VALIGN="TOP"><font size="2">&nbsp;</font></td>
    <td WIDTH="15%" VALIGN="TOP"><font size="2">&nbsp;</font></td>
    <td WIDTH="3%" VALIGN="TOP"><font size="2">&nbsp;</font></td>
  </tr>
  <tr>
    <td WIDTH="64%" VALIGN="TOP"><b>
      <p><font size="2">Liabilities and Shareholders&#39; Equity</font></b></td>
    <td WIDTH="16%" VALIGN="TOP"><font size="2">&nbsp;</font></td>
    <td WIDTH="3%" VALIGN="TOP"><font size="2">&nbsp;</font></td>
    <td WIDTH="15%" VALIGN="TOP"><font size="2">&nbsp;</font></td>
    <td WIDTH="3%" VALIGN="TOP"><font size="2">&nbsp;</font></td>
  </tr>
  <tr>
    <td WIDTH="64%" VALIGN="TOP">
      <p><font size="2">Current portion of long&#45;term debt and short&#45;term debt</font></td>
    <td WIDTH="16%" VALIGN="TOP">
      <p><font size="2">&#160;&#160;&#160;&#160;$&#160;&#160;&#160;&#160;&#160;&#160;&#160;688</font></td>
    <td WIDTH="3%" VALIGN="TOP"><font size="2">&nbsp;</font></td>
    <td WIDTH="15%" VALIGN="TOP">
      <p><font size="2">&#160;&#160;&#160;&#160;$&#160;&#160;&#160;&#160;&#160;&#160;&#160;316</font></td>
    <td WIDTH="3%" VALIGN="TOP"><font size="2">&nbsp;</font></td>
  </tr>
  <tr>
    <td WIDTH="64%" VALIGN="TOP">
      <p><font size="2">Other current liabilities</font></td>
    <td WIDTH="16%" VALIGN="TOP">
      <p><font size="2">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;2,290</font></td>
    <td WIDTH="3%" VALIGN="TOP"><font size="2">&nbsp;</font></td>
    <td WIDTH="15%" VALIGN="TOP">
      <p><font size="2">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;1,940</font></td>
    <td WIDTH="3%" VALIGN="TOP"><font size="2">&nbsp;</font></td>
  </tr>
  <tr>
    <td WIDTH="64%" VALIGN="TOP">
      <p><font size="2">Other liabilities</font></td>
    <td WIDTH="16%" VALIGN="TOP">
      <p><font size="2">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;2,133</font></td>
    <td WIDTH="3%" VALIGN="TOP"><font size="2">&nbsp;</font></td>
    <td WIDTH="15%" VALIGN="TOP">
      <p><font size="2">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;2,109</font></td>
    <td WIDTH="3%" VALIGN="TOP"><font size="2">&nbsp;</font></td>
  </tr>
  <tr>
    <td WIDTH="64%" VALIGN="TOP">
      <p><font size="2">Long&#45;term debt</font></td>
    <td WIDTH="16%" VALIGN="TOP">
      <p><font size="2">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;1,335</font></td>
    <td WIDTH="3%" VALIGN="TOP"><font size="2">&nbsp;</font></td>
    <td WIDTH="15%" VALIGN="TOP">
      <p><font size="2">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;1,711</font></td>
    <td WIDTH="3%" VALIGN="TOP"><font size="2">&nbsp;</font></td>
  </tr>
  <tr>
    <td WIDTH="64%" VALIGN="TOP">
      <p><font size="2">Textron Finance liabilities</font></td>
    <td WIDTH="16%" VALIGN="TOP" style="border-bottom-style: solid; border-bottom-width: 1">
      <p><font size="2">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;5,238</font></td>
    <td WIDTH="3%" VALIGN="TOP"><font size="2">&nbsp;</font></td>
    <td WIDTH="15%" VALIGN="TOP" style="border-bottom-style: solid; border-bottom-width: 1">
      <p><font size="2">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;5,324</font></td>
    <td WIDTH="3%" VALIGN="TOP"><font size="2">&nbsp;</font></td>
  </tr>
  <tr>
    <td WIDTH="64%" VALIGN="TOP">
      <p><font size="2">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;Total
      Liabilities</font></td>
    <td WIDTH="16%" VALIGN="TOP">
      <p><font size="2">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;11,684</font></td>
    <td WIDTH="3%" VALIGN="TOP"><font size="2">&nbsp;</font></td>
    <td WIDTH="15%" VALIGN="TOP">
      <p><font size="2">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;11,400</font></td>
    <td WIDTH="3%" VALIGN="TOP"><font size="2">&nbsp;</font></td>
  </tr>
  <tr>
    <td WIDTH="64%" VALIGN="TOP"><font size="2">&nbsp;</font></td>
    <td WIDTH="16%" VALIGN="TOP"><font size="2">&nbsp;</font></td>
    <td WIDTH="3%" VALIGN="TOP"><font size="2">&nbsp;</font></td>
    <td WIDTH="15%" VALIGN="TOP"><font size="2">&nbsp;</font></td>
    <td WIDTH="3%" VALIGN="TOP"><font size="2">&nbsp;</font></td>
  </tr>
  <tr>
    <td WIDTH="64%" VALIGN="TOP">
      <p><font size="2">Total Shareholders&#39; Equity</font></td>
    <td WIDTH="16%" VALIGN="TOP" style="border-bottom-style: solid; border-bottom-width: 1">
      <p><font size="2">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;3,751</font></td>
    <td WIDTH="3%" VALIGN="TOP"><font size="2">&nbsp;</font></td>
    <td WIDTH="15%" VALIGN="TOP" style="border-bottom-style: solid; border-bottom-width: 1">
      <p><font size="2">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;3,690</font></td>
    <td WIDTH="3%" VALIGN="TOP"><font size="2">&nbsp;</font></td>
  </tr>
  <tr>
    <td WIDTH="64%" VALIGN="TOP" HEIGHT="16">
      <p><font size="2">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;Total
      Liabilities and Shareholders&#39; Equity</font></td>
    <td WIDTH="16%" VALIGN="TOP" HEIGHT="16" style="border-bottom-style: solid">
      <p><font size="2">&#160;&#160;&#160;$&#160;&#160;&#160;&#160;15,435</font></td>
    <td WIDTH="3%" VALIGN="TOP" HEIGHT="16">
      <p></p>
    </td>
    <td WIDTH="15%" VALIGN="TOP" HEIGHT="16" style="border-bottom-style: solid">
      <p><font size="2">&#160;&#160;&#160;$&#160;&#160;&#160;&#160;15,090</font></td>
    <td WIDTH="3%" VALIGN="TOP" HEIGHT="16">
      <p></p>
    </td>
  </tr>
</table>
  </center>
</div>
<b>
<p ALIGN="CENTER"><font size="2">Textron Inc.<br>
Reconciliation of GAAP Measures to Non&#45;GAAP Measures<br>
</font>
</b>
<font size="2">(Dollars in millions except per share amounts)</font></p>
<div align="center">
  <center>
<table CELLSPACING="1" CELLPADDING="1" WIDTH="751">
  <tr>
    <td WIDTH="42%" VALIGN="TOP"><font size="2">&nbsp;</font></td>
    <td WIDTH="3%" VALIGN="TOP" style="border-bottom-style: solid; border-bottom-width: 1"><font size="2">&nbsp;</font></td>
    <td WIDTH="27%" VALIGN="TOP" COLSPAN="3" style="border-bottom-style: solid; border-bottom-width: 1"><b>
      <p ALIGN="CENTER"><font size="2">Third Quarter</font></b></td>
    <td WIDTH="3%" VALIGN="TOP" style="border-bottom-style: solid; border-bottom-width: 1"><font size="2">&nbsp;</font></td>
    <td WIDTH="26%" VALIGN="TOP" COLSPAN="4" style="border-bottom-style: solid; border-bottom-width: 1"><b>
      <p ALIGN="CENTER"><font size="2">Full Year</font></b></td>
  </tr>
  <tr>
    <td WIDTH="42%" VALIGN="TOP"><font size="2">&nbsp;</font></td>
    <td WIDTH="3%" VALIGN="TOP"><font size="2">&nbsp;</font></td>
    <td WIDTH="14%" VALIGN="TOP"><b>
      <p ALIGN="CENTER"><font size="2">2004</font></b></td>
    <td WIDTH="3%" VALIGN="TOP"><font size="2">&nbsp;</font></td>
    <td WIDTH="9%" VALIGN="TOP"><b>
      <p ALIGN="CENTER"><font size="2">2003</font></b></td>
    <td WIDTH="3%" VALIGN="TOP" COLSPAN="2"><font size="2">&nbsp;</font></td>
    <td WIDTH="14%" VALIGN="TOP"><b>
      <p ALIGN="CENTER"><font size="2">2004</font></b></td>
    <td WIDTH="3%" VALIGN="TOP"><font size="2">&nbsp;</font></td>
    <td WIDTH="10%" VALIGN="TOP"><b>
      <p ALIGN="CENTER"><font size="2">2003</font></b></td>
  </tr>
  <tr>
    <td WIDTH="42%" VALIGN="TOP" style="border-bottom-style: solid; border-bottom-width: 1"><font size="2">&nbsp;</font></td>
    <td WIDTH="3%" VALIGN="TOP" style="border-bottom-style: solid; border-bottom-width: 1"><font size="2">&nbsp;</font></td>
    <td WIDTH="14%" VALIGN="TOP" style="border-bottom-style: solid; border-bottom-width: 1"><b>
      <p ALIGN="CENTER"><font size="2">Outlook</font></b></td>
    <td WIDTH="3%" VALIGN="TOP" style="border-bottom-style: solid; border-bottom-width: 1"><font size="2">&nbsp;</font></td>
    <td WIDTH="9%" VALIGN="TOP" style="border-bottom-style: solid; border-bottom-width: 1"><b>
      <p ALIGN="CENTER"><font size="2">Actual</font></b></td>
    <td WIDTH="3%" VALIGN="TOP" COLSPAN="2" style="border-bottom-style: solid; border-bottom-width: 1"><font size="2">&nbsp;</font></td>
    <td WIDTH="14%" VALIGN="TOP" style="border-bottom-style: solid; border-bottom-width: 1"><b>
      <p ALIGN="CENTER"><font size="2">Outlook</font></b></td>
    <td WIDTH="3%" VALIGN="TOP" style="border-bottom-style: solid; border-bottom-width: 1"><font size="2">&nbsp;</font></td>
    <td WIDTH="10%" VALIGN="TOP" style="border-bottom-style: solid; border-bottom-width: 1"><b>
      <p ALIGN="CENTER"><font size="2">Actual</font></b></td>
  </tr>
  <tr>
    <td WIDTH="42%" VALIGN="TOP"><b>
      <p><font size="2"><br>
      GAAP EPS</font></b></td>
    <td WIDTH="3%" VALIGN="TOP"><b>
      <p ALIGN="RIGHT"><font size="2"><br>
      $</font></b></td>
    <td WIDTH="14%" VALIGN="TOP"><b>
      <p ALIGN="CENTER"><font size="2"><br>
      .55 &#45; .65</font></b></td>
    <td WIDTH="3%" VALIGN="TOP"><b>
      <p ALIGN="RIGHT"><font size="2"><br>
      $</font></b></td>
    <td WIDTH="9%" VALIGN="TOP"><b>
      <p style="margin-right: 20" align="right"><font size="2"><br>
      .34</font></b></td>
    <td WIDTH="3%" VALIGN="TOP" COLSPAN="2"><b>
      <p ALIGN="RIGHT"><font size="2"><br>
      $</font></b></td>
    <td WIDTH="14%" VALIGN="TOP"><b>
      <p ALIGN="CENTER"><font size="2"><br>
      2.36 &#45; 2.51</font></b></td>
    <td WIDTH="3%" VALIGN="TOP"><b>
      <p ALIGN="RIGHT"><font size="2"><br>
      $</font></b></td>
    <td WIDTH="10%" VALIGN="TOP"><b>
      <p style="margin-right: 20" align="right"><font size="2"><br>
      1.89</font></b></td>
  </tr>
  <tr>
    <td WIDTH="42%" VALIGN="TOP">
      <p><font size="2">Adjustments:</font></td>
    <td WIDTH="3%" VALIGN="TOP"><font size="2">&nbsp;</font></td>
    <td WIDTH="14%" VALIGN="TOP"><font size="2">&nbsp;</font></td>
    <td WIDTH="3%" VALIGN="TOP"><font size="2">&nbsp;</font></td>
    <td WIDTH="9%" VALIGN="TOP">
      <p style="margin-right: 20" align="right"><font size="2">&nbsp;</font></p>
    </td>
    <td WIDTH="3%" VALIGN="TOP" COLSPAN="2"><font size="2">&nbsp;</font></td>
    <td WIDTH="14%" VALIGN="TOP"><font size="2">&nbsp;</font></td>
    <td WIDTH="3%" VALIGN="TOP"><font size="2">&nbsp;</font></td>
    <td WIDTH="10%" VALIGN="TOP">
      <p style="margin-right: 20" align="right"><font size="2">&nbsp;</font></p>
    </td>
  </tr>
  <tr>
    <td WIDTH="42%" VALIGN="TOP">
      <p><font size="2">&#160;&#160;&#160;&#160;&#160;Special charges</font></td>
    <td WIDTH="3%" VALIGN="TOP"><font size="2">&nbsp;</font></td>
    <td WIDTH="14%" VALIGN="TOP">
      <p ALIGN="CENTER"><font size="2">.15</font></td>
    <td WIDTH="3%" VALIGN="TOP"><font size="2">&nbsp;</font></td>
    <td WIDTH="9%" VALIGN="TOP">
      <p style="margin-right: 20" align="right"><font size="2">.25</font></td>
    <td WIDTH="3%" VALIGN="TOP" COLSPAN="2"><font size="2">&nbsp;</font></td>
    <td WIDTH="14%" VALIGN="TOP">
      <p ALIGN="CENTER"><font size="2">.75</font></td>
    <td WIDTH="3%" VALIGN="TOP"><font size="2">&nbsp;</font></td>
    <td WIDTH="10%" VALIGN="TOP">
      <p style="margin-right: 20" align="right"><font size="2">.82</font></td>
  </tr>
  <tr>
    <td WIDTH="42%" VALIGN="TOP">
      <p><font size="2">&#160;&#160;&#160;&#160;&#160;Gain on sale of
      businesses</font></td>
    <td WIDTH="3%" VALIGN="TOP"><font size="2">&nbsp;</font></td>
    <td WIDTH="14%" VALIGN="TOP">
      <p ALIGN="CENTER"><font size="2">&#45;</font></td>
    <td WIDTH="3%" VALIGN="TOP"><font size="2">&nbsp;</font></td>
    <td WIDTH="9%" VALIGN="TOP">
      <p style="margin-right: 20" align="right"><font size="2">&#45;</font></td>
    <td WIDTH="3%" VALIGN="TOP" COLSPAN="2"><font size="2">&nbsp;</font></td>
    <td WIDTH="14%" VALIGN="TOP">
      <p ALIGN="CENTER"><font size="2">(.01)</font></td>
    <td WIDTH="3%" VALIGN="TOP"><font size="2">&nbsp;</font></td>
    <td WIDTH="10%" VALIGN="TOP">
      <p style="margin-right: 20" align="right"><font size="2">(.09)</font></td>
  </tr>
  <tr>
    <td WIDTH="42%" VALIGN="TOP" style="border-bottom-style: solid; border-bottom-width: 1">
      <p><font size="2">&#160;&#160;&#160;&#160;&#160;Special charges
      included in discontinued<br>
      &#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;operations,
      net of income taxes</font></td>
    <td WIDTH="3%" VALIGN="TOP" style="border-bottom-style: solid; border-bottom-width: 1">
      <p><font size="2"><br>
      </font></td>
    <td WIDTH="14%" VALIGN="TOP" style="border-bottom-style: solid; border-bottom-width: 1">
      <p ALIGN="CENTER"><font size="2"><br>
      &#45;</font></td>
    <td WIDTH="3%" VALIGN="TOP" style="border-bottom-style: solid; border-bottom-width: 1">
      <p><font size="2"><br>
      </font></td>
    <td WIDTH="9%" VALIGN="TOP" style="border-bottom-style: solid; border-bottom-width: 1">
      <p style="margin-right: 20" align="right"><font size="2"><br>
      &#45;</font></td>
    <td WIDTH="3%" VALIGN="TOP" COLSPAN="2" style="border-bottom-style: solid; border-bottom-width: 1">
      <p><font size="2"><br>
      </font></td>
    <td WIDTH="14%" VALIGN="TOP" style="border-bottom-style: solid; border-bottom-width: 1">
      <p ALIGN="CENTER"><font size="2"><br>
      &#45;</font></td>
    <td WIDTH="3%" VALIGN="TOP" style="border-bottom-style: solid; border-bottom-width: 1">
      <p><font size="2"><br>
      </font></td>
    <td WIDTH="10%" VALIGN="TOP" style="border-bottom-style: solid; border-bottom-width: 1">
      <p style="margin-right: 20" align="right"><font size="2"><br>
      .17</font></td>
  </tr>
  <tr>
    <td WIDTH="42%" VALIGN="TOP" style="border-bottom-style: solid"><b>
      <p><font size="2"><br>
      EPS as adjusted</font></b></td>
    <td WIDTH="3%" VALIGN="TOP" style="border-bottom-style: solid"><b>
      <p ALIGN="RIGHT"><font size="2"><br>
      $</font></b></td>
    <td WIDTH="14%" VALIGN="TOP" style="border-bottom-style: solid"><b>
      <p ALIGN="CENTER"><font size="2"><br>
      .70 &#45; .80</font></b></td>
    <td WIDTH="3%" VALIGN="TOP" style="border-bottom-style: solid"><b>
      <p ALIGN="RIGHT"><font size="2"><br>
      $</font></b></td>
    <td WIDTH="9%" VALIGN="TOP" style="border-bottom-style: solid">
      <p style="margin-right: 20" align="right"><font size="2"><br>
      <b>
      .59</b></font></td>
    <td WIDTH="3%" VALIGN="TOP" COLSPAN="2" style="border-bottom-style: solid"><b>
      <p ALIGN="RIGHT"><font size="2"><br>
      $</font></b></td>
    <td WIDTH="14%" VALIGN="TOP" style="border-bottom-style: solid"><b>
      <p ALIGN="CENTER"><font size="2"><br>
      3.10 &#45; 3.25</font></b></td>
    <td WIDTH="3%" VALIGN="TOP" style="border-bottom-style: solid"><b>
      <p ALIGN="RIGHT"><font size="2"><br>
      $</font></b></td>
    <td WIDTH="10%" VALIGN="TOP" style="border-bottom-style: solid"><b>
      <p style="margin-right: 20" align="right"><font size="2"><br>
      2.79</font></b></td>
  </tr>
</table>
  </center>
</div>
<p>&nbsp;</p>
<div align="center">
  <center>
<table CELLSPACING="1" CELLPADDING="1" WIDTH="756">
  <tr>
    <td WIDTH="34%" VALIGN="TOP"><font size="2">&nbsp;</font></td>
    <td WIDTH="2%" VALIGN="TOP" style="border-bottom-style: solid; border-bottom-width: 1"><font size="2">&nbsp;</font></td>
    <td WIDTH="19%" VALIGN="TOP" COLSPAN="3" style="border-bottom-style: solid; border-bottom-width: 1"><b>
      <p ALIGN="CENTER"><font size="2">Second Quarter</font></b></td>
    <td WIDTH="3%" VALIGN="TOP" style="border-bottom-style: solid; border-bottom-width: 1"><font size="2">&nbsp;</font></td>
    <td WIDTH="18%" VALIGN="TOP" COLSPAN="3" style="border-bottom-style: solid; border-bottom-width: 1"><b>
      <p ALIGN="CENTER"><font size="2">June Year&#45;to&#45;Date</font></b></td>
    <td WIDTH="2%" VALIGN="TOP" style="border-bottom-style: solid; border-bottom-width: 1"><font size="2">&nbsp;</font></td>
    <td WIDTH="22%" VALIGN="TOP" COLSPAN="3" style="border-bottom-style: solid; border-bottom-width: 1"><b>
      <p ALIGN="CENTER"><font size="2">Full Year</font></b></td>
  </tr>
  <tr>
    <td WIDTH="34%" VALIGN="TOP"><font size="2">&nbsp;</font></td>
    <td WIDTH="2%" VALIGN="TOP"><font size="2">&nbsp;</font></td>
    <td WIDTH="8%" VALIGN="TOP"><b>
      <p ALIGN="CENTER"><font size="2">2004</font></b></td>
    <td WIDTH="2%" VALIGN="TOP"><font size="2">&nbsp;</font></td>
    <td WIDTH="9%" VALIGN="TOP"><b>
      <p ALIGN="CENTER"><font size="2">2003</font></b></td>
    <td WIDTH="3%" VALIGN="TOP"><font size="2">&nbsp;</font></td>
    <td WIDTH="8%" VALIGN="TOP"><b>
      <p ALIGN="CENTER"><font size="2">2004</font></b></td>
    <td WIDTH="2%" VALIGN="TOP"><font size="2">&nbsp;</font></td>
    <td WIDTH="8%" VALIGN="TOP"><b>
      <p ALIGN="CENTER"><font size="2">2003</font></b></td>
    <td WIDTH="2%" VALIGN="TOP"><font size="2">&nbsp;</font></td>
    <td WIDTH="11%" VALIGN="TOP"><b>
      <p ALIGN="CENTER"><font size="2">2004</font></b></td>
    <td WIDTH="2%" VALIGN="TOP"><font size="2">&nbsp;</font></td>
    <td WIDTH="8%" VALIGN="TOP"><b>
      <p ALIGN="CENTER"><font size="2">2003</font></b></td>
  </tr>
  <tr>
    <td WIDTH="34%" VALIGN="TOP" style="border-bottom-style: solid; border-bottom-width: 1"><font size="2">&nbsp;</font></td>
    <td WIDTH="2%" VALIGN="TOP" style="border-bottom-style: solid; border-bottom-width: 1"><font size="2">&nbsp;</font></td>
    <td WIDTH="8%" VALIGN="TOP" style="border-bottom-style: solid; border-bottom-width: 1"><b>
      <p ALIGN="CENTER"><font size="2">Actual</font></b></td>
    <td WIDTH="2%" VALIGN="TOP" style="border-bottom-style: solid; border-bottom-width: 1"><font size="2">&nbsp;</font></td>
    <td WIDTH="9%" VALIGN="TOP" style="border-bottom-style: solid; border-bottom-width: 1"><b>
      <p ALIGN="CENTER"><font size="2">Actual</font></b></td>
    <td WIDTH="3%" VALIGN="TOP" style="border-bottom-style: solid; border-bottom-width: 1"><font size="2">&nbsp;</font></td>
    <td WIDTH="8%" VALIGN="TOP" style="border-bottom-style: solid; border-bottom-width: 1"><b>
      <p ALIGN="CENTER"><font size="2">Actual</font></b></td>
    <td WIDTH="2%" VALIGN="TOP" style="border-bottom-style: solid; border-bottom-width: 1"><font size="2">&nbsp;</font></td>
    <td WIDTH="8%" VALIGN="TOP" style="border-bottom-style: solid; border-bottom-width: 1"><b>
      <p ALIGN="CENTER"><font size="2">Actual</font></b></td>
    <td WIDTH="2%" VALIGN="TOP" style="border-bottom-style: solid; border-bottom-width: 1"><font size="2">&nbsp;</font></td>
    <td WIDTH="11%" VALIGN="TOP" style="border-bottom-style: solid; border-bottom-width: 1"><b>
      <p ALIGN="CENTER"><font size="2">Outlook</font></b></td>
    <td WIDTH="2%" VALIGN="TOP" style="border-bottom-style: solid; border-bottom-width: 1"><font size="2">&nbsp;</font></td>
    <td WIDTH="8%" VALIGN="TOP" style="border-bottom-style: solid; border-bottom-width: 1"><b>
      <p ALIGN="CENTER"><font size="2">Actual</font></b></td>
  </tr>
  <tr>
    <td WIDTH="34%" VALIGN="TOP"><b>
      <p><font size="2"><br>
      Cash flow from operations &#45; GAAP</font></b></td>
    <td WIDTH="2%" VALIGN="TOP"><b>
      <p ALIGN="RIGHT"><font size="2"><br>
      $</font></b></td>
    <td WIDTH="8%" VALIGN="TOP"><b>
      <p style="margin-right: 20" align="right"><font size="2"><br>
      270</font></b></td>
    <td WIDTH="2%" VALIGN="TOP"><b>
      <p ALIGN="RIGHT"><font size="2"><br>
      $</font></b></td>
    <td WIDTH="9%" VALIGN="TOP"><b>
      <p style="margin-right: 20" align="right"><font size="2"><br>
      191</font></b></td>
    <td WIDTH="3%" VALIGN="TOP"><b>
      <p><font size="2"><br>
      $</font></b></td>
    <td WIDTH="8%" VALIGN="TOP"><b>
      <p style="margin-right: 20" align="right"><font size="2"><br>
      445</font></b></td>
    <td WIDTH="2%" VALIGN="TOP"><b>
      <p><font size="2"><br>
      $</font></b></td>
    <td WIDTH="8%" VALIGN="TOP"><b>
      <p style="margin-right: 20" align="right"><font size="2"><br>
      155</font></b></td>
    <td WIDTH="2%" VALIGN="TOP"><b>
      <p ALIGN="RIGHT"><font size="2"><br>
      $</font></b></td>
    <td WIDTH="11%" VALIGN="TOP"><b>
      <p ALIGN="CENTER"><font size="2"><br>
      680 - 730</font></b></td>
    <td WIDTH="2%" VALIGN="TOP"><b>
      <p ALIGN="RIGHT"><font size="2"><br>
      $</font></b></td>
    <td WIDTH="8%" VALIGN="TOP"><b>
      <p style="margin-right: 20" align="right"><font size="2"><br>
      681</font></b></td>
  </tr>
  <tr>
    <td WIDTH="34%" VALIGN="TOP">
      <p><font size="2">&#160;&#160;&#160;&#160;&#160;Capital expenditures
      and lease<br>
      &#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;additions</font></td>
    <td WIDTH="2%" VALIGN="TOP">
      <p ALIGN="RIGHT"><font size="2"><br>
      </font></td>
    <td WIDTH="8%" VALIGN="TOP">
      <p style="margin-right: 20" align="right"><font size="2"><br>
      (73)</font></td>
    <td WIDTH="2%" VALIGN="TOP">
      <p ALIGN="RIGHT"><font size="2"><br>
      </font></td>
    <td WIDTH="9%" VALIGN="TOP">
      <p style="margin-right: 20" align="right"><font size="2"><br>
      (73)</font></td>
    <td WIDTH="3%" VALIGN="TOP">
      <p><font size="2"><br>
      </font></td>
    <td WIDTH="8%" VALIGN="TOP">
      <p style="margin-right: 20" align="right"><font size="2"><br>
      (146)</font></td>
    <td WIDTH="2%" VALIGN="TOP">
      <p><font size="2"><br>
      </font></td>
    <td WIDTH="8%" VALIGN="TOP">
      <p style="margin-right: 20" align="right"><font size="2"><br>
      (118)</font></td>
    <td WIDTH="2%" VALIGN="TOP">
      <p ALIGN="RIGHT"><font size="2"><br>
      </font></td>
    <td WIDTH="11%" VALIGN="TOP">
      <p ALIGN="CENTER"><font size="2"><br>
      (300)</font></td>
    <td WIDTH="2%" VALIGN="TOP">
      <p ALIGN="RIGHT"><font size="2"><br>
      </font></td>
    <td WIDTH="8%" VALIGN="TOP">
      <p style="margin-right: 20" align="right"><font size="2"><br>
      (310)</font></td>
  </tr>
  <tr>
    <td WIDTH="34%" VALIGN="TOP" style="border-bottom-style: solid; border-bottom-width: 1">
      <p><font size="2">&#160;&#160;&#160;&#160;&#160;Proceeds on sale of
      fixed assets</font></td>
    <td WIDTH="2%" VALIGN="TOP" style="border-bottom-style: solid; border-bottom-width: 1"><font size="2">&nbsp;</font></td>
    <td WIDTH="8%" VALIGN="TOP" style="border-bottom-style: solid; border-bottom-width: 1">
      <p style="margin-right: 20" align="right"><font size="2">15</font></td>
    <td WIDTH="2%" VALIGN="TOP" style="border-bottom-style: solid; border-bottom-width: 1"><font size="2">&nbsp;</font></td>
    <td WIDTH="9%" VALIGN="TOP" style="border-bottom-style: solid; border-bottom-width: 1">
      <p style="margin-right: 20" align="right"><font size="2">20</font></td>
    <td WIDTH="3%" VALIGN="TOP" style="border-bottom-style: solid; border-bottom-width: 1"><font size="2">&nbsp;</font></td>
    <td WIDTH="8%" VALIGN="TOP" style="border-bottom-style: solid; border-bottom-width: 1">
      <p style="margin-right: 20" align="right"><font size="2">27</font></td>
    <td WIDTH="2%" VALIGN="TOP" style="border-bottom-style: solid; border-bottom-width: 1"><font size="2">&nbsp;</font></td>
    <td WIDTH="8%" VALIGN="TOP" style="border-bottom-style: solid; border-bottom-width: 1">
      <p style="margin-right: 20" align="right"><font size="2">29</font></td>
    <td WIDTH="2%" VALIGN="TOP" style="border-bottom-style: solid; border-bottom-width: 1"><font size="2">&nbsp;</font></td>
    <td WIDTH="11%" VALIGN="TOP" style="border-bottom-style: solid; border-bottom-width: 1">
      <p ALIGN="CENTER"><font size="2">40</font></td>
    <td WIDTH="2%" VALIGN="TOP" style="border-bottom-style: solid; border-bottom-width: 1"><font size="2">&nbsp;</font></td>
    <td WIDTH="8%" VALIGN="TOP" style="border-bottom-style: solid; border-bottom-width: 1">
      <p style="margin-right: 20" align="right"><font size="2">55</font></td>
  </tr>
  <tr>
    <td WIDTH="34%" VALIGN="TOP">
      <p><font size="2"><br>
      Free cash flow after restructuring</font></td>
    <td WIDTH="2%" VALIGN="TOP">
      <p ALIGN="RIGHT"><font size="2"><br>
      $</font></td>
    <td WIDTH="8%" VALIGN="TOP">
      <p style="margin-right: 20" align="right"><font size="2"><br>
      212</font></td>
    <td WIDTH="2%" VALIGN="TOP">
      <p ALIGN="RIGHT"><font size="2"><br>
      $</font></td>
    <td WIDTH="9%" VALIGN="TOP">
      <p style="margin-right: 20" align="right"><font size="2"><br>
      138</font></td>
    <td WIDTH="3%" VALIGN="TOP">
      <p><font size="2"><br>
      </font></td>
    <td WIDTH="8%" VALIGN="TOP">
      <p style="margin-right: 20" align="right"><font size="2"><br>
      326</font></td>
    <td WIDTH="2%" VALIGN="TOP">
      <p><font size="2"><br>
      </font></td>
    <td WIDTH="8%" VALIGN="TOP">
      <p style="margin-right: 20" align="right"><font size="2"><br>
      66</font></td>
    <td WIDTH="2%" VALIGN="TOP">
      <p ALIGN="RIGHT"><font size="2"><br>
      $</font></td>
    <td WIDTH="11%" VALIGN="TOP">
      <p ALIGN="CENTER"><font size="2"><br>
      420 &#45; 470</font></td>
    <td WIDTH="2%" VALIGN="TOP">
      <p ALIGN="RIGHT"><font size="2"><br>
      </font></td>
    <td WIDTH="8%" VALIGN="TOP">
      <p style="margin-right: 20" align="right"><font size="2"><br>
      426</font></td>
  </tr>
  <tr>
    <td WIDTH="34%" VALIGN="TOP" style="border-bottom-style: solid; border-bottom-width: 1">
      <p><font size="2"><br>
      After&#45;tax cash used for restructuring<br>
      &#160;&#160;&#160;&#160;&#160;activities</font></td>
    <td WIDTH="2%" VALIGN="TOP" style="border-bottom-style: solid; border-bottom-width: 1">
      <p ALIGN="RIGHT"><font size="2"><br>
      <br>
      </font></td>
    <td WIDTH="8%" VALIGN="TOP" style="border-bottom-style: solid; border-bottom-width: 1">
      <p style="margin-right: 20" align="right"><font size="2"><br>
      <br>
      17</font></td>
    <td WIDTH="2%" VALIGN="TOP" style="border-bottom-style: solid; border-bottom-width: 1">
      <p ALIGN="RIGHT"><font size="2"><br>
      <br>
      </font></td>
    <td WIDTH="9%" VALIGN="TOP" style="border-bottom-style: solid; border-bottom-width: 1">
      <p style="margin-right: 20" align="right"><font size="2"><br>
      <br>
      15</font></td>
    <td WIDTH="3%" VALIGN="TOP" style="border-bottom-style: solid; border-bottom-width: 1">
      <p><font size="2"><br>
      <br>
      </font></td>
    <td WIDTH="8%" VALIGN="TOP" style="border-bottom-style: solid; border-bottom-width: 1">
      <p style="margin-right: 20" align="right"><font size="2"><br>
      <br>
      34</font></td>
    <td WIDTH="2%" VALIGN="TOP" style="border-bottom-style: solid; border-bottom-width: 1">
      <p><font size="2"><br>
      <br>
      </font></td>
    <td WIDTH="8%" VALIGN="TOP" style="border-bottom-style: solid; border-bottom-width: 1">
      <p style="margin-right: 20" align="right"><font size="2"><br>
      <br>
      25</font></td>
    <td WIDTH="2%" VALIGN="TOP" style="border-bottom-style: solid; border-bottom-width: 1">
      <p ALIGN="RIGHT"><font size="2"><br>
      <br>
      </font></td>
    <td WIDTH="11%" VALIGN="TOP" style="border-bottom-style: solid; border-bottom-width: 1">
      <p ALIGN="CENTER"><font size="2"><br>
      <br>
      80</font></td>
    <td WIDTH="2%" VALIGN="TOP" style="border-bottom-style: solid; border-bottom-width: 1">
      <p ALIGN="RIGHT"><font size="2"><br>
      <br>
      </font></td>
    <td WIDTH="8%" VALIGN="TOP" style="border-bottom-style: solid; border-bottom-width: 1">
      <p style="margin-right: 20" align="right"><font size="2"><br>
      <br>
      57</font></td>
  </tr>
  <tr>
    <td WIDTH="34%" VALIGN="TOP" style="border-bottom-style: solid"><b>
      <p><font size="2"><br>
      Free cash flow before restructuring<br>
      &#160;&#160;&#160;&#160;&#160;&#45; as adjusted</font></b></td>
    <td WIDTH="2%" VALIGN="TOP" style="border-bottom-style: solid"><b>
      <p ALIGN="RIGHT"><font size="2"><br>
      <br>
      $</font></b></td>
    <td WIDTH="8%" VALIGN="TOP" style="border-bottom-style: solid"><b>
      <p style="margin-right: 20" align="right"><font size="2"><br>
      <br>
      229</font></b></td>
    <td WIDTH="2%" VALIGN="TOP" style="border-bottom-style: solid"><b>
      <p ALIGN="RIGHT"><font size="2"><br>
      <br>
      $</font></b></td>
    <td WIDTH="9%" VALIGN="TOP" style="border-bottom-style: solid"><b>
      <p style="margin-right: 20" align="right"><font size="2"><br>
      <br>
      153</font></b></td>
    <td WIDTH="3%" VALIGN="TOP" style="border-bottom-style: solid"><b>
      <p><font size="2"><br>
      <br>
      $</font></b></td>
    <td WIDTH="8%" VALIGN="TOP" style="border-bottom-style: solid"><b>
      <p style="margin-right: 20" align="right"><font size="2"><br>
      <br>
      360</font></b></td>
    <td WIDTH="2%" VALIGN="TOP" style="border-bottom-style: solid"><b>
      <p><font size="2"><br>
      <br>
      $</font></b></td>
    <td WIDTH="8%" VALIGN="TOP" style="border-bottom-style: solid"><b>
      <p style="margin-right: 20" align="right"><font size="2"><br>
      <br>
      91</font></b></td>
    <td WIDTH="2%" VALIGN="TOP" style="border-bottom-style: solid"><b>
      <p ALIGN="RIGHT"><font size="2"><br>
      <br>
      $</font></b></td>
    <td WIDTH="11%" VALIGN="TOP" style="border-bottom-style: solid"><b>
      <p ALIGN="CENTER"><font size="2"><br>
      <br>
      500 &#45; 550</font></b></td>
    <td WIDTH="2%" VALIGN="TOP" style="border-bottom-style: solid"><b>
      <p ALIGN="RIGHT"><font size="2"><br>
      <br>
      $</font></b></td>
    <td WIDTH="8%" VALIGN="TOP" style="border-bottom-style: solid"><b>
      <p style="margin-right: 20" align="right"><font size="2"><br>
      <br>
      483</font></b></td>
  </tr>
</table>

  </center>
</div>

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