New CEO Says Focus Has Been Military, But Civilian Business Will Not Be Ignored

The new CEO of Bell Helicopter says while military helicopters and the V-22 Osprey have helped Bell Helicopter ride out the recession, he will not ignore the civilian side of the business, which has been hard-hit by the economic downturn.

John Garrison told Wall Street Business Analysts Tuesday that he wants both the military and civilian segments of the company to grow.

The Fort Worth Star-Telegram reports that Bell's military business was much stronger in 2009, as non-military customers pulled back, cancelled orders, and did not place new ones during the recession. Commercial helicopters accounted for only 24 percent of the company's business last year, while military orders made up 39 percent, with the rest attributed to parts and service.

Speaking at a Textron news conference, Garrison said: "We are executing a balanced business strategy. We're going to grow our commercial business and military business, and we're going to grow our support business." Textron is Bell's parent company.

Bell 429

Bell says it has 300 commitments, if not firm orders, to purchase the new Bell 429 helicopter, and two were delivered last year. "We're confident we'll be able to grow market share with that helicopter," Garrison said.

He also said that, even with the recession, military orders and cost-cutting allowed the company to generate record cash flow. Some manufacturing was moved to Mexico, and 300 jobs were cut at a plant in Canada. The company reports a record backlog of orders for the V-22 Osprey, with production expected to peak at about 40 aircraft in 2013.

FMI: www.bellhelicopter.com