Aircraft and industrial titan
is evaluating the available options for its fastening systems business and may sell all or most of the operation.
The Providence, R.I., elephantine maker of engines and Cessna airplanes said as a result of the review, it will record a pretax charge of $300 million to $500 million in the third quarter, mainly related to the impairment of goodwill.
"Over the past several years we have successfully implemented a number of initiatives to strengthen our operations, streamline processes and enhance profitability across our business segments," the company said in a press release. "Strong progress, with commensurate growth opportunities, is being realized across Textron."
However, the added capital and other resources required to meet its goals for the fastening systems segment led to the decision that alternatives for the operation should be considered.
Shares of Textron rose 19 cents to $71.72 Tuesday.