Textron Financial Sells $402 Million Small Business Direct Portfolio To MBNA America Bank, N.A.
PROVIDENCE, R.I.--(BUSINESS WIRE)--Jan. 7, 2004
Delivering on its strategy to divest and dispose of non-core assets, Textron Financial, a unit of Textron Inc. (NYSE:TXT) today announced that it has sold substantially all of its Small Business Direct portfolio to MBNA America Bank, N.A. (NYSE:KRB). Terms of the transaction were not disclosed.
Textron Financial's Small Business Direct division provides small businesses with unsecured revolving lines of credit up to $50,000.
"This sale represents continued progress with our strategy to focus on core businesses within our portfolio in order to increase profitability and maximize value," said Jay Carter, Textron Financial president and chief operating officer. "In fact, with this transaction we've completed the disposition of roughly two-thirds of our non-core loans, all without sustaining a loss. This is a tremendous accomplishment for our team."
Textron Financial is a diversified commercial finance company with more than $9 billion in managed and serviced finance receivables. It has core businesses in Aircraft Finance, Asset-Based Lending, Distribution Finance, Golf Finance, Resort Finance, and Structured Capital. Textron Financial also provides financing programs for products manufactured by its parent company, Textron Inc. Additional information about the company is available at www.textronfinancial.com.
MBNA Corporation, a bank holding company and parent of MBNA America Bank, N.A., a national bank, is the largest independent credit card lender in the world. MBNA also provides retail deposit, consumer loan, and insurance products. MBNA.com (http://MBNA.com) provides credit card, consumer loan, retail deposit, travel and shopping services.
Textron Inc. is a $10 billion multi-industry company with 44,000 employees in 40 countries. The company leverages its global network of businesses to provide customers with innovative solutions and services in industries such as aircraft, fastening systems, industrial products and components and finance. Textron is known around the world for its powerful brands such as Bell Helicopter, Cessna Aircraft, Kautex, Lycoming, E-Z-GO and Greenlee, among others. More information is available at www.textron.com.
Forward-looking Information: Certain statements in this release and other oral and written statements made by Textron from time to time 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 to which Textron is able to achieve savings from its restructuring plans; (b) uncertainty in estimating the amount and timing of restructuring charges and related costs; (c) changes in worldwide economic and political conditions that impact interest and foreign exchange rates; (d) the occurrence of work stoppages and strikes at key facilities of Textron or Textron's customers or suppliers; (e) government funding and program approvals affecting products being developed or sold under government programs; (f) cost and delivery performance under various program and development contracts; (g) the adequacy of cost estimates for various customer care programs including servicing warranties; (h) the ability to control costs and successful implementation of various cost reduction programs; (i) the timing of certifications of new aircraft products; (j) the occurrence of further downturns in customer markets to which Textron products are sold or supplied or where Textron Financial offers financing; (k) changes in aircraft delivery schedules or cancellation of orders; (l) Textron's ability to offset, through cost reductions, raw material price increases and pricing pressure brought by original equipment manufacturer customers; (m) the availability and cost of insurance; (n) pension plan income falling below current forecasts; (o) Textron Financial's ability to maintain portfolio credit quality; (p) Textron Financial's access to debt financing at competitive rates; and (q) uncertainty in estimating contingent liabilities and establishing reserves tailored to address such contingencies.
|Printer friendly Cite/link Email Feedback|
|Date:||Jan 7, 2004|
|Previous Article:||FNB Southeast to Sell Loans and Deposits of Richlands Office.|
|Next Article:||Strategy Analytics: First in Phones and Now Cameras - Is the Enterprise Next for Nokia?|