Goodrich Announces Fourth Quarter 2009 Results

CHARLOTTE, N.C., Jan. 28, 2010 /PRNewswire-FirstCall/ --

Goodrich Corporation (NYSE: GR) announced results today for the fourth quarter 2009, reaffirmed its outlook for 2010 net income per diluted share and adjusted its outlook for sales and cash flow for the full year 2010.

Commenting on the company's performance and its 2010 outlook, Marshall Larsen, Chairman, President and Chief Executive Officer said, "Our fourth quarter earnings per share were consistent with the 2009 fourth quarter outlook range of $0.72 - $0.87, that we provided last October, and our cash flow significantly exceeded our previous outlook. During the fourth quarter, we experienced strong growth in sales of large commercial airplane original equipment and defense and space products and services. This growth was more than offset by continued weakness in demand for regional, business and general aviation original equipment and commercial aftermarket products and services."

"While the market environment for commercial aftermarket products and services remains challenging, we continue to believe that 2010 will be a year of modest recovery which should allow us to grow our commercial aftermarket sales. We continue to expect aftermarket sales to be weak for the first few months of 2010, with the recovery beginning towards the middle of the year. In our large commercial original equipment market channel, Boeing and Airbus delivered a record 979 new airplanes in 2009 and both manufacturers are striving to maintain stable production for their narrowbody airplanes through at least 2010."

"Our defense and space sales were very strong throughout 2009, growing by about 11 percent for the fourth quarter and 10 percent for the full year. With the inclusion of sales from the recently completed AIS acquisition, we now expect defense and space sales to grow about 15% in 2010 compared to 2009."

Fourth Quarter 2009 Results

Goodrich reported fourth quarter 2009 net income of $105 million, or $0.82 per diluted share, on sales of $1,642 million. In the fourth quarter 2008, the company reported net income of $169 million, or $1.35 per diluted share, on sales of $1,695 million.

The $53 million decrease in sales includes a reduction of $41 million related to the impact of current economic conditions on the company's sales and approximately $36 million for lower reported sales resulting from the formation of the engine controls joint venture with Rolls-Royce, which were partially offset by favorable foreign currency exchange rate sales impacts of approximately $24 million.

For the fourth quarter 2009 compared with the fourth quarter 2008, Goodrich sales changes by market channel were as follows:

The change in net income per diluted share is primarily attributable to the impact of lower aftermarket sales, which was partially offset by cost containment initiatives, and included several other factors as noted below:

Net cash provided by operating activities, minus capital expenditures, for the fourth quarter 2009 was $176 million, a decrease of $55 million from the same period in 2008. During the fourth quarter 2008, the company received cash totaling $115 million from Rolls-Royce related to the formation of the engine controls joint venture. During the fourth quarter 2009, Goodrich contributed $64 million to its worldwide pension plans, compared to contributions of $126 million in the fourth quarter 2008. Capital expenditures were $54 million in the fourth quarter 2009, compared with capital expenditures of $95 million in the fourth quarter 2008. During the fourth quarter 2009, cash flow provided by operating activities, minus capital expenditures, was 166 percent of income from continuing operations.

Full Year 2009 Results

For the full year 2009, the company reported net income of $597 million, or $4.70 per diluted share, on sales of $6,686 million. During the full year 2008, net income was $681 million, or $5.35 per diluted share, on sales of $7,062 million.

The $376 million decrease in sales is attributable to sales reductions of approximately $148 million related to foreign currency exchange rate impacts, approximately $125 million for lower reported sales resulting from the formation of the engine controls joint venture with Rolls-Royce and the impact of current economic conditions on the company's sales.

For the full year 2009 compared with the full year 2008, Goodrich sales changes by market channel were as follows:

The change in net income per diluted share is primarily attributable to the impact of lower aftermarket sales, which were partially offset by cost containment initiatives, and included several other factors as noted below:

Net cash provided by operating activities, minus capital expenditures, for the full year 2009 was $488 million, a decrease of $14 million from the same period in 2008. During the full year 2008, the company received cash totaling $115 million from Rolls-Royce related to the formation of the engine controls joint venture. This decrease was partially offset by lower net cash taxes paid in 2009 of $73 million compared to 2008. The decrease was also attributable to lower income from continuing operations and higher spending on non-product inventory, partially offset by lower capital expenditures and lower growth in working capital. During the full year of 2009, Goodrich contributed $238 million to its worldwide pension plans, compared to contributions of $227 million during the full year of 2008. Capital expenditures were $169 million for the full year of 2009, compared to capital expenditures of $285 million for the full year of 2008. During the full year of 2009, cash flow provided by operating activities, minus capital expenditures, was 87 percent of income from continuing operations, compared to 73 percent for the full year of 2008.

Business Highlights

2010 Outlook

The company's 2010 sales outlook is based on market assumptions for each of its major market channels. The current market assumptions for the full year 2010, compared with the full year 2009, include:

The company's initial full year 2010 sales expectations are for sales of approximately $7.1 billion, representing growth of about 6 - 7 percent compared to 2009. The outlook for 2010 income from continuing operations and net income per diluted share is for a range of $4.15 - $4.40.

The 2010 outlook for income from continuing operations includes, among other factors:

For 2010, Goodrich now expects net cash provided by operating activities, minus capital expenditures, to exceed 85 percent of net income. This outlook reflects ongoing investments to support the current schedule for the Boeing 787 and Airbus A350 XWB airplane programs, and low-cost country manufacturing and productivity initiatives that are expected to enhance margins over the near and long term. The company expects capital expenditures for 2010 to be in a range of $250 - $275 million and worldwide pension plan contributions are now expected to be $100 - $150 million.

The current sales, net income and net cash provided by operating activities outlooks for 2009 and 2010 do not include the impact of potential acquisitions or divestitures.

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SOURCE Goodrich Corporation

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