Comment on The Motley Fool: Shaking up the Dow Jones industrial average

The Motley Fool: Shaking up the Dow Jones industrial average

In 2004, AIG, Pfizer and Verizon Communications replaced Eastman Kodak, International Paper and an old formation of AT&T. In 1999, Microsoft, Intel, SBC Communications and Home Depot replaced Chevron, Goodyear Tire and Rubber, Union Carbide and Sears. The aviation and defense industries aren't typically fast-growing ones, especially since they're often vulnerable to cuts in government spending. TXT, a manufacturer of business jets and single-jet Cessnas, military helicopters and protection systems, and an array of auto parts. Textron's latest quarterly results featured revenue rising 16.8 percent to $4.1 billion over the prior-year quarter and earnings per share jumping 26.7 percent. Management tempered near-term expectations, but some see it merely being cautious, as it has been restructuring its Bell military products and helicopter division. [...] Bell Helicopter recently received an order for 200 upgraded emergency medical services helicopters. Another boon for Textron is our current low-interest-rate environment, as it makes financing a single-engine Cessna a reasonable proposition.

 

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