Textron Inc.: A Diversified Industrial Conglomerate

As an industrial conglomerate, Textron Inc. has a very rich history. From its humble beginnings as a textile business, the company started its diversification to keep the entire venture afloat. It was through the innovation and resourcefulness of its founder Royal Little that the company was able to survive the decline of demand for their textile products.

It was in 1923 that the business was founded as Special Yarns Corporation. World War II was a monumental era for the company as it was during this time that the demand for their textile increased through the production of parachutes. From its $75,000 revenue during its first year of operation, the company’s profit started soaring. When the war was over, Little was quick to think of other businesses to enter. From the production of parachutes, he ventured into creating lingerie, bed linens, blouses, and other consumer goods. He named the company Textron which was derived from the word textile and synthetics like lustron.

By 1947, the company got listed on the New York Stock Exchange and by then was already generating millions in revenue. Faced with the decline of textiles in 1952, Little started diversifying the business with the acquisition of Burkart Manufacturing Co. The business is a supplier of cushioning materials to the automotive market. This acquisition opened the company’s doors to acquire non-textile related businesses further. The value of their diversification was tested during the time of recession in 1958 wherein their sales dipped but their profit rose and remained strong.

In 1960, Textron purchased Bell Aerospace. This company which included the Bell Helicopter increased the company’s business with the government. This was followed by the acquisition of E-Z-GO, a golf car manufacturer.

Today, Textron Inc. owns the following businesses: Cessna Aircraft, Greenlee, Bell Helicopter, E-Z-GO, Jacobsen, Textron Systems, and Kautex. From its $75,000 starting revenue, the company is now capable of generating up to $12.237 billion. It has presence in 25 countries and is ranked as the 225th largest company in the United States based on the listing released by Fortune 500.