Electrical component manufacturer Woodward Governor Co. (NASDAQ:WGOV) after markets closed Friday warned weak aerospace markets would cut into its fiscal 2009 guidance, but also moved to grow the sector.
Fort Collins, Colo.-based Woodward said it intends to buy the
hydraulics and control business of Textron Inc. (NYSE:TXT) for $365 million in
cash. The target, HR Textron of Santa Clarita, Calif., had 2008 sales
of about $260 million, and customers including Boeing Co., General
Dynamics Corp., Lockheed Martin Corp. and Raytheon Co.
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The buyer said it believes combining HR Textron with its existing aerospace business "enables Woodward to provide our customers with broader and more valuable systems solutions."
Woodward at the same time said that as the economic downturn has accelerated it has seen declines in orders in several of its businesses, including industrial engines and business jets. The company also said it intends to take some restructuring actions. -
Lou Whiteman
