Textron (TXT) 10-Q 2002 Q3 Quarterly report

EXHIBIT 12.1

TEXTRON MANUFACTURING

COMPUTATION OF RATIO OF INCOME TO
COMBINED FIXED CHARGES AND PREFERRED SECURITIES DIVIDENDS

(unaudited)

(In millions except ratio)

	Nine Months Ended September 29, 2001
Fixed charges:
Interest expense	$	135
Distributions on preferred securities of manufacturing subsidiary trust		19
Estimated interest portion of rents		24
Total fixed charges	$	178
Income:
Loss before income taxes and distributions on preferred           securities of subsidiary trusts	$	(3)
Eliminate equity in undistributed pre-tax income of Textron Finance		(98)
Fixed charges *		159
Adjusted income	$	58
Ratio of income to fixed charges		.33

For the nine months ended September 29, 2001, earnings are insufficient to cover fixed charges as evidenced by a less than one-to-one coverage ratio as shown above. Additional earnings of $120 million were necessary to provide a one-to-one coverage ratio. If the special charges and restructuring-related expenses, including a write-down of goodwill and intangibles related to its OmniQuip business, of $415 million were excluded from this calculation, the ratio would be 2.66.

*     Adjusted to exclude distributions on preferred securities of manufacturing subsidiary trust.