Textron CEO-Elect Sees Opportunity In Unpiloted Aircraft

Textron Corp. (TXT) is well-positioned to take advantage of long-term growth of the unpiloted air-vehicle market for defense and commercial use, Scott Donnelly, president and chief executive-elect, said in an interview with Dow Jones Newswires Friday.

"Clearly, we have a couple of very strong platforms with Cessna and Bell," he said. The two units, which make business jets and helicopters, offer a strong combination of technology for the fast-developing UAV market, Donnelly said. Once the businesses are growing again, they will be top candidates for acquisitions, he said. Cessna and Bell accounted for 60% of conglomerate Textron's $12.3 billion of revenue in 2008.

Donnelly is slated to assume the CEO post on Dec. 1, when long-time chairman and CEO Lewis Campbell becomes nonexecutive chairman of the board.

Donnelly joined Textron in 2008, after heading General Electric's (GE) aviation business.

With the onset of the recession and the financial industry crisis, Donnelly said he spent most of the past year working to liquidate more than $3 billion of lending assets in Cessna, Bell, and Textron's golf-equipment unit. The company exited some lending business to raise cash, and it has also restructured its industrial businesses to position them for future growth.

Once business picks up, Donnelly said he will pursue acquisitions of companies with strong brands and leading market positions. In aerospace, that means focusing on developing unpiloted air vehicles, or drones, not only for warfare but for border patrol and other surveillance.

Donnelly spoke by phone from New York Friday, where he was attending an event for relaunching Cessna's CitationAir business-jet operator.

-By Ann Keeton, Dow Jones Newswires; 312-750-4120; [e-mail]