Textron confirms Columbus cancellation
Textron informed the Securities and Exchange Commission on July 9 that it will write off $43 million in expenses on Cessna’s large Citation Columbus development program. Overall, Textron has invested $50 million in tooling and facility costs related to the Columbus program.
Much of the tooling was specialized and has no alternative use, while the manufacturing facility was partially completed. Textron decided to suspend the development of the Citation Columbus wide-body jet due to prevailing market conditions. Additional analysis of the business jet market resulted in a formal cancellation of further development of the Citation Columbus.
Textron determined the $43 million in assets, meaning the specialized tooling and the partially completed building, were unrecoverable. The Columbus has been removed from the Cessna Web site, but a video is posted on YouTube.
July 10, 2009