August 5, 2019 / 12:21 PM / 7 months ago

Textron exploring options for fuel tanks unit

(Reuters) - Cessna business jets maker Textron Inc (TXT.N) said on Monday it will explore options for its unit that manufactures fuel tanks for vehicles, including a sale or a spinoff, as it focuses on its higher margin businesses.

The company’s shares rose 3.13% to $48.50 before the bell.

The unit, Kautex, is part of Textron’s industrial business, which reported a profit margin of 6.6% in the first six months of 2019, the lowest among the company’s four units.

Textron’s total profit margin was about 10% for the same period.

Bonn, Germany-based Kautex makes pressurized fuel tanks for cars, light trucks and all-terrain vehicles, and reported more than $2.3 billion in revenue in 2018.

Kautex also makes selective catalytic reduction systems used to reduce emissions from diesel engines.

Goldman Sachs & Co LLC is Textron’s financial adviser for the review.

Reporting by Ankit Ajmera and Sanjana Shivdas in Bengaluru; Editing by Sriraj Kalluvila

0 : 0
  • narrow-browser-and-phone
  • medium-browser-and-portrait-tablet
  • landscape-tablet
  • medium-wide-browser
  • wide-browser-and-larger
  • medium-browser-and-landscape-tablet
  • medium-wide-browser-and-larger
  • above-phone
  • portrait-tablet-and-above
  • above-portrait-tablet
  • landscape-tablet-and-above
  • landscape-tablet-and-medium-wide-browser
  • portrait-tablet-and-below
  • landscape-tablet-and-below