UPDATE 2-Textron CEO retiring; replacement named

* CEO Lewis Campbell, 63, retiring Dec. 1

* Company President Scott Donnelly, 47, new CEO
(Adds background)

CHICAGO, Sept 23 (Reuters) - Textron Inc (TXT.N), the
world's largest maker of corporate jets, said on Wednesday that
Chief Executive Lewis Campbell will retire in December.

The diversified manufacturer said it appointed Scott
Donnelly, Textron's 47-year-old president and chief operating
officer, to replace Campbell, who will remain as nonexecutive
chairman of the board.

Campbell, 63, had served as CEO of the maker of Cessna and
Citation jets, Bell helicopters, EZ-Go golf carts and military
vehicles for 11 of his 17 years with the company.

Donnelly, a former General Electric Co (GE.N) executive,
joined Textron in June 2008 and spearheaded the company's
restructuring initiatives as it grappled with a sharp downturn
in demand for its business jets.

Earlier this year, its Cessna unit said it expects to
deliver 290 to 300 planes this year, down from 467 in 2008. It
does not expect a recovery in the market until 2011.

The company has cut about 23 percent of its staff -- some
10,000 people -- over the past year in an aggressive
restructuring campaign. It is also cutting back sharply on its
finance unit, which lost money last year.

In a statement, Campbell said Donnelly had played a key
role in restoring Textron's access to the capital markets after
last year's credit crunch.
(Reporting by James B. Kelleher, editing by Matthew Lewis)