Helicopters

In a surprise move, Textron yesterday removed Bell Helicopter president and chief executive Michael “Red” Redenbaugh.

In a letter to employees, Textron chairman, president and chief executive Lewis Campbell wrote that he and “Red agreed that a different set of leadership skills were required to lead Bell in the next phase of growth.” The official press release stated that Redenbaugh resigned.

Redenbaugh’s replacement is Richard Millman, who most recently served as president of Textron Systems, a $1 billion business unit that produces specialty watercraft, armored vehicles, aircraft engines and other products.

Bell Helicopter generates about $2 billion a year in revenue. Textron’s latest quarterly report hinted at problems. Filed in early November, the report states that “higher costs to support future growth at Bell had contributed to a decline in profit” despite increased military volume and higher commercial deliveries. “We expect revenues at Bell for the full year (2006) to increase over 2005, while profit is expected to decrease,” the report continued.
 
Redenbaugh was named to the position in May 2003. Before that he spent 21 years at Honeywell.