Textron 2Q17 Earnings Call Notes

Scott Donnelly

Auto is flattish

“So I think if you look at the constituent parts obviously automotive right now is more flattish, so there is a little bit of difference regionally, North American auto is down a bit. so I think getting any kind of significant growth on the topics side right now was probably unlikely just given the nature of what’s going in the automotive segment. The business is still performing well”

We are increasing price that we are realizing

“as we have talked about we are increasing our price that we are realizing out there in the marketplace. We continue to do that and we continue to do that in the second quarter, so we are seeing improved pricing versus where we were last year when we said sort of said hey guys enough is enough, we need to start getting some price back into the market. For sure there was some mix out there of customers that are waiting to see some movement on the government side, from a tax standpoint which I think largely people feel would help to stimulate the economy and drive some GDP and improve their business outlook, which would give them more confidence to do capital expenditures on things across the whole business including business jets. So I think there is are still little bit of reservation around that, obviously it’s a relatively flattish market. So I think we are being successful on the price front. We are certainly willing to do that at the expense of some volume and there are certainly some customers who are holding out and that’s fine we are not going to give back on the pricing front, I think it’s moving in the right direction.”