Bell Rings in 2000 With a Slew of Sales;
Tiltrotors Add to Future Profit Outlook

With a raft of new models in production, more on the way and an order backlog of $2.65 billion, business is booming at Bell Helicopter Textron.

The next few years will be even rosier if Bell Helicopter chairman and CEO Terry Stinson succeeds in his mission to Turkey this week to win an order of up to 100 AH-1W Cobra gunships-a whirlwind trip that is keeping him away from Heli-Expo.

"Unfortunately it is the same time as the show, but not coming to Las Vegas might save me some money," he quipped. Stinson took time out between visits to Mexico-where he just won an order for 24 Bell 206L-4 LongRangers for anti-drug duties-and Turkey to tell Show News of Bell's recent successes and strengthening future.

Bell delivered 276 helicopters last year, of which 71 were for the US military. Most of the remaining 205 were commercial ships, although the tally included some foreign military sales such as AH-1W gunships for Taiwan, and some Huey IIs and TH-67 trainers.

But most notable was a rip-roaring December in which Bell took orders for 42 helicopters -- the company's best month in five years.

"The orders were from North and South America, Europe and the Pacific Rim. You can't jump to conclusions with just one data point, but that certainly is a nice way to begin 2000."

Bell's new models,the 407 light single and the twin-engined 427, are selling extremely well. The company recently delivered the 400th 407 in just three years, despite several months of uncertainty as it worked to fix a tail rotor problem. "We've delivered more to market than any other new model in history," said Stinson, who added the FAA has now lifted all restrictions on the helicopter.

The 427, delayed a year as its tail rotor is similar to that on the 407, is poised to receive FAA certification any day. Orders stand at 80, production is sold out for three years, performance is above specifications, and not one customer was lost in the one-year delay, Stinson noted.

Orders for the intermediate twin Bell 430 "are picking up faster than even we anticipated," Stinson said, with certification for Cat.

A single pilot IFR in December removing the final impediment to sales. Bell delivered 19 last year, and will exceed that in 2000.

Prospects for the new 15-passenger medium twin Agusta/Bell AB 139 are picking up as Bell continues to develop both this and BA 609 in partnership with Agusta. First flight will be late this year, and first deliveries in 2002.

Stinson is most enthusiastic about Bell's fortunes as production of some 350 Bell Boeing V-22 Osprey tiltrotor ramps up dramatically in the new tiltrotor production facility in Amarillo, TX. "Over the next four years our revenues will grow dramatically, so I'm probably more bullish on this industry than most."

206 Follow-On Shelved

The best replacement for the Bell 206 entry-level light turbine helicopter is a Bell 206! "Every time I review what we'd have to sell a new model for, we pull away. There's no money in it," Bell Helicopter chairman and CEO Terry Stinson says. Above all, customers are unwilling to pay $75,000 more for a new model whose main benefit is an extra 7 to 9 kts. in cruise speed. Look instead for a series of updates and cockpit improvements to the 206.

Bell's 427 arrives in Las Vegas, and is counting hours to certification.

Bell Helicopter CEO Terry Stinson.