Goodrich Announces 31 Percent Increase in Net Income per Diluted Share and 2 Percent Increase in Sales for Fourth Quarter 2008, Adjusts Outlook for 2009

CHARLOTTE, N.C. , Feb. 4 /PRNewswire-FirstCall/ -- -- Fourth quarter 2008 income per diluted share of $1.35 , a 31 percent increase over fourth quarter 2007 income per diluted share of $1.03 . -- Fourth quarter...


The 10 percent increase in overall sales is primarily attributable to continued sales growth in the company's major market channels, which experienced full year 2008 growth as follows:

-- Large commercial airplane original equipment sales increased by 7 percent,

-- Regional, business and general aviation airplane original equipment sales increased by 23 percent,

-- Large commercial, regional, business and general aviation airplane aftermarket sales increased by 9 percent, and

-- Defense and space sales of both original equipment and aftermarket products and services increased by 11 percent.

Sales during the full year 2008, compared to the full year 2007, were negatively affected by $47 million due to foreign currency exchange rate impacts.

Net cash provided by operating activities during the full year 2008 was $787 million, an increase of $193 million over 2007. The increase was primarily due to higher 2008 net income of $199 million. 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. Also, during 2008 the company contributed $227 million to its worldwide pension plans, compared with $133 million during 2007. Capital expenditures were $285 million for the full year 2008 compared with capital expenditures for the full year 2007 of $283 million.

Business Highlights

-- On December 31, 2008 , Goodrich and Rolls-Royce completed the formation of a joint venture company to develop and supply engine controls for Rolls-Royce aero engines. The joint venture company will operate as Aero Engine Controls. Each of the contributing companies owns 50 percent of Aero Engine Controls. Goodrich will retain the aftermarket products and services business associated with the joint venture's products.

-- On December 9, 2008 , Goodrich was selected by Airbus to supply wheels and carbon brakes for all variants of the A350 XWB family of aircraft. The selection significantly increases Goodrich's content on the program.

-- On November 25, 2008 , Goodrich received a contract from the U.S. Department of Defense (DOD) for the first operational satellite system in support of Operationally Responsive Space (ORS). The satellite, designated ORS Sat-1, is to be manufactured and integrated by Goodrich's ISR Systems team in Danbury, Connecticut . ORS is focused on the ability to quickly and affordably implement space capabilities that benefit the warfighter.

-- On October 2, 2008 , Goodrich officially opened a 350,000 sq. ft. campus in Mexicali, Mexico focusing primarily on metal treatment processing and fabrication. In December 2008 , Goodrich's Board of Directors approved a plan to develop a 165,000 sq. ft. campus in Tianjin, China to accommodate maintenance, repair and overhaul, original equipment support, enterprise supply chain and shared services activities for the region.

2009 Outlook

The company's 2009 sales outlook is based on market assumptions for each of its major market channels. The current market assumptions for the full year 2009, compared with the full year 2008 outlook, include:

-- Large commercial airplane original equipment sales are expected to increase by about 3 - 5 percent,

-- Regional, business and general aviation airplane original equipment sales are expected to decrease by approximately 10 percent,

-- Large commercial, regional, business and general aviation airplane aftermarket sales are expected to be approximately flat, with large commercial aftermarket sales up slightly while regional, business and general aviation aftermarket sales are expected to be somewhat lower, compared to 2008. This outlook assumes that worldwide available seat miles (ASMs) decrease by approximately 4 percent in 2009 compared to 2008, and

-- Defense and space sales of both original equipment and aftermarket products and services are expected to increase by about 5 percent.

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