Investment in EqualFooting.com is latest alliance to focus on new economy
Company Press Release
July 11, 2000
PROVIDENCE, RI--In an expansion of its e-business strategy, Textron Inc (NYSE:TXT) yesterday announced it has invested
$25 million in EqualFooting.com. EqualFooting.com is a B2B online marketplace offering a wide variety of products
and services, including purchasing, financing and shipping targeting small businesses primarily in the manufacturing
and construction industries. The partnership is the latest in a series of recent Internet-related investments,
alliances and internal initiatives by Textron.
``The Internet is delivering vast improvements on the way we operate our business -- specifically how we work with
our customers to sell and distribute products, how we buy our materials and how we interact within our companies,''
said Textron Chairman and CEO Lewis B. Campbell, who also will join EqualFooting.com's board of directors. ``Our
relationship with EqualFooting.com is one more example of how we are aggressively pursuing and incorporating the
best available web-based services and technologies.''
Textron's e-business initiatives have gained momentum over the past few months through internal efforts and external
alliances. Beginning in earnest in late 1999 with the appointment of Ken Bohlen as chief innovation officer to
lead development and execution of Textron's e-commerce strategy, Textron has quickly implemented strategies to
drive growth and operating improvement across the company. Specific initiatives implemented so far in 2000 include:
A strategic alliance with an investment of $100 million in Safeguard Scientifics. Through the alliance, Textron
has preferred access to Safeguard's network of 250 Internet-related technology companies. Textron is working with
Safeguard partner companies to develop and execute its global e-business strategies.
Creation of an e-Business Council. The council consists of 14 executives who develop specific e-business recommendations,
coordinate efforts across Textron's business units and advance Textron's e-business progress.
Intensive and ongoing e-business education of key Textron employees and Textron's Board of Directors through ``JumpSmart''
training sessions conducted by Cambridge Technology Partners (a Safeguard Company).
Formation of a joint venture between Textron Financial Corporation and Entrade to create a new e-business, AssetControl.com.
AssetControl.com provides an online B2B marketplace specializing in the management and disposition of used industrial
equipment, excess inventory and commercial real estate. AssetControl.com is already profitable after just three
months of operation.
Launch of various division-level websites. Textron companies Bell Helicopter and Cessna Aircraft have both opened
online parts stores and developed web-based interactive training classes for pilots. RIFOCs, a leading manufacturer
of specialized, high-precision fiber optic products, offers customers a Cable Assembly Builder (CAB) on its website
where customers ``drive the CAB'' by selecting the length of cable they need, the connectors, the type of fiber
and the cable mode. The custom cable assembly is built and priced online.
An alliance with EDS CoNext and Ariba 20 to implement e-procurement processes to bring significant cost savings
on the purchase of indirect goods and services across the company's divisions. Over the next three years, Textron
expects its total e-procurement initiatives related to spending on indirect materials and services to reduce costs
by over $150 million.
``For Textron, the Internet is a tool that will complement and support our important distributor networks, while
reducing cost in the supply chain. This collaboration with EqualFooting is another important step in support of
our e-business strategy,'' said Campbell.
Textron will use EqualFooting's technological capabilities and experience to create targeted Internet applications
for buying and selling goods online. Selling opportunities will be explored both through the existing EqualFooting.com
marketplace and by developing Textron-branded sites powered by EqualFooting.com's technology. In addition, EqualFooting
will serve as a supplementary e-procurement tool, complementing the EDS CoNext and Ariba platform for the buying
of indirect goods.
About EqualFooting.com
EqualFooting.com is a B2B online marketplace that places small businesses on ``equal footing'' with large companies
in the areas of purchasing, financing and shipping. The site's innovative business model allows members to buy,
finance, and schedule delivery immediately--or save even more later, using the Request-For-Quote (RFQ) system.
For more information about EqualFooting.com, please visit www.equalfooting.com.
About Textron
Textron Inc. (NYSE:TXT) is an $11.6 billion, global, multi-industry company with market-leading businesses in Aircraft,
Automotive, Industrial and Finance. Textron has a workforce of over 68,000 employees and major manufacturing facilities
in 30 countries. Textron is among Fortune magazine's ``Global Most Admired Companies.'' Additional information
is available at www.textron.com.
Forward-looking Information: Certain statements in this release and elsewhere are forward-looking statements, including
those that discuss strategies, goals, outlook or other non-historical matters; or project revenues, income, returns
or other financial measures. These forward-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
which Textron is able to successfully integrate acquisitions, (b) changes in worldwide economic and political conditions
and associated impact on interest and foreign exchange rates, (c) the occurrence of work stoppages and strikes
at key facilities of Textron or Textron's customers or suppliers, (d) the extent to which the Company is able to
successfully develop, introduce, and launch new products and enter new markets, (e) the level of government funding
for Textron products, and (f) successful implementation of e-procurement strategies. For the Aircraft Segment:
(a) the timing of certifications of new aircraft products and (b) the occurrence of a severe downturn in the U.S.
economy that discourages businesses from purchasing business jets. For the Automotive Segment: (a) the level of
consumer demand for the vehicle models for which Textron supplies parts to automotive original equipment manufacturers
(``OEM's'') and (b) the ability to offset, through cost reductions, pricing pressure brought by automotive OEM
customers. For the Industrial Segment: the ability of Textron Fastening Systems to offset, through cost reductions,
pricing pressure brought by automotive OEM customers. For the Finance Segment: (a) the level of sales of Textron
products for which TFC offers financing and (b) the ability of TFC to maintain credit quality and control costs
when entering new markets
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Contact:
Textron Inc
Media Contact:
Susan Bishop, (401) 457-2362
sbishop@textron.com
or
Investor Contact:
Brian Sullivan, (401) 457-2502
bsullivan@textron.com