Textron (TXT) - Get Report was down 17.6% in late morning after it warned that the weak economy and the fallout from the Sept. 11 terrorist attacks would hurt its earnings for the rest of the year and force it to again curtail production.

Textron, which makes Bell helicopters and Cessna airplanes, said it would close additional plants and cut 2,500 more jobs. It also announced that Chief Operating Officer John Janitz is leaving the company as part of an executive shake-up.

Textron now expects a loss of 25 cents per share in the third quarter, well below the Thomson Financial/First Call estimate of 71 cents.