In an interview yesterday Textron CEO Lewis Campbell failed to dispel clearly the questions surrounding Textron's future and in particular, its rumored sale to a consortium of UAE investors.
Campbell at one point said it was "highly unlikely" they'd need to sell either Bell or Cessna:
Given the success we have had with the Textron Financial liquidation so far, and given the recent sale of two high-value assets and other cash-production opportunities, I feel now that it’s highly, highly improbable and unlikely that we’ll ever have to divest any more assets.
But have these 'cash production opportunities' (read: desperate sell-offs) really produced enough cash? "It sold its Fluid & Power unit in November and HR Textron in March, generating about $615 million after taxes." Sounds good, but Textron has over $6B in debt coming due over the next 2 years. Good luck refinancing that while you are divesting your cash-flow positive assets in the meantime.