Goodrich Announces Fourth Quarter 2009 Results, Reaffirms Outlook for 2010 Net Income per Diluted Share

Jan 28, 2010, 07:35 ET from Goodrich Corporation

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

  • Fourth quarter 2009 net income per diluted share of $0.82 compared to fourth quarter 2008 net income per diluted share of $1.35.  
  • Fourth quarter 2009 sales of $1,642 million compared to fourth quarter 2008 sales of $1,695 million.
  • Full year 2009 sales of $6.7 billion, net income per diluted share of $4.70 and earnings per share from continuing operations of $4.43.  Full year 2009 net cash provided by operating activities, minus capital expenditures, was 87 percent of 2009 net income from continuing operations, and included voluntary pension plan contributions that were $50 million higher than our prior outlook.
  • Full year 2010 outlook for sales of approximately $7.1 billion, including sales from the recently completed Atlantic Inertial Systems (AIS) acquisition.  Expectations for net income per diluted share are unchanged at $4.15 - $4.40 and net cash provided by operating activities, minus capital expenditures, is now expected to exceed 85 percent of income from continuing operations.  

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:

  • Large commercial airplane original equipment sales increased by 22 percent.  During the fourth quarter 2008, large commercial original equipment sales were adversely affected by the Boeing machinists' strike.  There was no similar impact during the fourth quarter 2009,  
  • Regional, business and general aviation airplane original equipment sales decreased by 44 percent,
  • Large commercial, regional, business and general aviation airplane aftermarket sales decreased by 20 percent, and
  • Defense and space sales of both original equipment and aftermarket products and services increased by 11 percent.  

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:  

  • The fourth quarter 2009 results included higher pre-tax expense totaling $10 million, $6 million after-tax or $0.05 per diluted share, related to restructuring charges, acquisition and JV formation-related costs and increased environmental reserves, compared to the fourth quarter 2008.
  • The fourth quarter 2009 results included higher pre-tax expense of $11 million, $7 million after-tax or $0.05 per diluted share, related to share-based compensation, compared to the fourth quarter 2008.
  • The fourth quarter 2009 results included higher pre-tax expense of $26 million, $16 million after-tax or $0.13 per diluted share, related to worldwide pension plan expense, compared to the fourth quarter 2008.
  • The fourth quarter 2009 results included lower pre-tax income of $6 million, $3 million after-tax or $0.03 per diluted share, related to the revision of estimates for certain long-term contracts primarily in our aerostructures and aircraft wheels and brakes businesses, compared to the fourth quarter 2008.  
  • The company reported an effective tax rate of 29 percent for the fourth quarter 2009, compared to an effective tax rate of 23 percent during the fourth quarter 2008, which resulted in lower net income of approximately $0.08 per diluted share, compared to the fourth quarter 2008.
  • The prior year's fourth quarter results included pre-tax income of approximately $16 million, $15 million after-tax or $0.12 per diluted share, related to the Rolls-Royce engine controls joint venture, which was completed on December 31, 2008.  There was no similar impact during the fourth quarter 2009.

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:

  • Large commercial airplane original equipment sales increased by 3 percent,  
  • Regional, business and general aviation airplane original equipment sales decreased by 31 percent,
  • Large commercial, regional, business and general aviation airplane aftermarket sales decreased by 16 percent, and
  • Defense and space sales of both original equipment and aftermarket products and services increased by 10 percent

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:  

  • The full year 2009 results included higher pre-tax expense of $102 million, $64 million after-tax or $0.51 per diluted share, related to worldwide pension plan expense, compared to the full year 2008.
  • The full year 2009 results included higher pre-tax expense of $30 million, $19 million after-tax or $0.16 per diluted share, related to share based compensation, compared to the full year 2008.
  • The full year 2009 results included after-tax income from discontinued operations totaling $34 million, or $0.27 per diluted share, primarily associated with resolution of a past environmental claim, compared to after-tax income of $8 million, or $0.06 per diluted share for the full year 2008.
  • The full year 2009 results included lower pre-tax income of $67 million, $42 million after-tax or $0.33 per diluted share, related to the revision of estimates for certain long-term contracts primarily in our aerostructures and aircraft wheels and brakes businesses, compared to the full year 2008.  
  • The company reported an effective tax rate of 27 percent for the full year 2009, compared with an effective tax rate of 30 percent during the full year 2008, which resulted in higher net income of approximately $0.20 per diluted share, compared to the full year 2008.
  • The full year 2009 results included higher pre-tax expense of $20 million, $12 million after-tax or $0.10 per diluted share, related to restructuring charges, compared to the full year 2008.
  • The prior year's results included pre-tax income of approximately $13 million, $13 million after-tax or $0.10 per diluted share, related to the Rolls-Royce engine controls joint venture, which was completed on December 31, 2008.  There was no similar impact during 2009.

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

  • Goodrich completed the acquisition of AIS in late December 2009. AIS is a leading provider of mission-critical guidance, stabilization and navigation products and systems for the military and defense market. The acquisition is expected to be slightly accretive to earnings in 2010, including the impact of purchase accounting adjustments.
  • The first flight of the Boeing 787 Dreamliner featured a significant number of Goodrich products.  Goodrich systems and components on the 787 include the company's nacelle and thrust reverser system, electric braking system, air data sensors, ice detectors, engine data concentrators, fuel management software and the fuel quantity indicating system. In addition, Goodrich provides the aircraft's proximity sensing system, the integrated fuel system for the auxiliary power unit, the cargo operating system, cabin attendant seating, exterior and flight deck lighting systems, integrated heated composite floor panels, and a unique flight deck entry video surveillance system designed to interface with the aircraft's electronic flight bag system.
  • Goodrich's Aircraft Wheels and Brakes business was selected by flydubai to supply wheels and carbon brakes for its new fleet of 54 Boeing Next-Generation 737-800 aircraft.  Aircraft deliveries with the Goodrich wheel and brake equipment are expected to begin in March 2010 and continue through 2013. The wheels and carbon brakes will use Goodrich's proprietary DURACARB® carbon material, which will provide a weight savings of approximately 700 pounds per airplane compared to high capacity steel brakes, and 550 pounds compared to standard capacity steel brakes.
  • Goodrich unveiled its new maintenance, repair and overhaul (MRO) facility located in Sao Carlos, Brazil in the TAM Technological Condominium.  The facility initially will focus on repairing International Aero Engine (IAE) V2500-A5 engine inlets, fan cowls and thrust reversers for customers in Latin America and the Caribbean.  Capabilities will be expanded in the near future to service other nacelle platforms currently operating in the region.  The current 10,000 square foot site serves as an interim location.  In 2010 Goodrich will begin renovations on a 40,000 square foot permanent facility adjacent to TAM's heavy maintenance facility in Sao Carlos.

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:

  • Large commercial airplane original equipment sales are expected to increase by about 5 percent.  This outlook assumes that current narrowbody production rates are maintained at least through early 2011, and that 787 deliveries begin in late 2010.  Additionally, part of the expected growth in sales is related to the 2008 Boeing strike, which adversely impacted first quarter 2009 sales, but will not impact 2010 sales,    
  • Regional, business and general aviation airplane original equipment sales are expected to decrease by more than 10 percent,
  • Large commercial, regional, business and general aviation airplane aftermarket sales are expected to increase by about 4 - 7 percent.  This outlook assumes that worldwide available seat miles (ASMs) increase in the range of 1 – 3 percent in 2010.  Goodrich expects year-over-year sales growth beginning towards the middle of 2010, and
  • Defense and space sales of both original equipment and aftermarket products and services are expected to increase by about 15 percent, including sales generated by the AIS acquisition.  

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:

  • A full-year effective tax rate of 29 - 30 percent for 2010, reducing income per diluted share by about $0.19, compared to 2009.  The 2010 effective tax rate includes a full-year benefit of approximately 1.5 percent related to an assumed extension of the U.S. research tax credit.
  • Pension expense is expected to be about the same as pension expense recorded in 2009.  During 2009 Goodrich achieved a return on U.S. plan assets of about 11 percent.  The company will use a discount rate of about 5.9 percent for its U.S. plans in 2010.

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.  

----------------------

The supplemental discussion and tables that follow provide more detailed information about the fourth quarter 2009 segment results.

----------------------

Goodrich will hold a conference call on January 28, 2010 at 10:00 AM U.S. Eastern Time to discuss this announcement.  Interested parties can listen to a live webcast of the conference call, and view the related presentation materials, at www.goodrich.com, or listen via telephone by dialing 913-312-1235.

----------------------

Goodrich Corporation, a Fortune 500 company, is a global supplier of systems and services to aerospace, defense and homeland security markets.  With one of the most strategically diversified portfolios of products in the industry, Goodrich serves a global customer base with significant worldwide manufacturing and service facilities.  For more information visit http://www.goodrich.com.

----------------------

FORWARD-LOOKING INFORMATION IS SUBJECT TO RISK AND UNCERTAINTY

Certain statements made in this document are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 regarding our future plans, objectives and expected performance. Specifically, statements that are not historical facts, including statements accompanied by words such as "believe," "expect," "anticipate," "intend," "should," "estimate," or "plan," are intended to identify forward-looking statements and convey the uncertainty of future events or outcomes. We caution readers that any such forward-looking statements are based on assumptions that we believe are reasonable, but are subject to a wide range of risks, and actual results may differ materially.

Important factors that could cause actual results to differ from expected performance include, but are not limited to:

  • demand for and market acceptance of new and existing products, such as the Airbus A350 XWB and A380, the Boeing 787 Dreamliner, the EMBRAER 190, the Mitsubishi Regional Jet (MRJ), the Bombardier CSeries, the Dassault Falcon 7X, the Lockheed Martin F-35 Lightning II and the Northrop Grumman Joint STARS re-engining program;
  • our ability to extend our commercial OE contracts beyond the initial contract periods;
  • cancellation or delays of orders or contracts by customers or with suppliers, including delays or cancellations associated with the Boeing 787 Dreamliner, the Airbus A380 and A350 XWB aircraft programs, and major military programs;
  • our ability to obtain price adjustments pursuant to certain of our long-term contracts;
  • the financial viability of key suppliers and the ability of our suppliers to perform under existing contracts;
  • the extent to which we are successful in integrating and achieving expected operating synergies for AIS and other potential acquisitions;
  • successful development of products and advanced technologies;
  • the health of the commercial aerospace industry, including the impact of bankruptcies and/or consolidations in the airline industry;
  • global demand for aircraft spare parts and aftermarket services;
  • changing priorities or reductions in the defense budgets in the U.S. and other countries, U.S. foreign policy and the level of activity in military flight operations;
  • the possibility of restructuring and consolidation actions;
  • threats and events associated with and efforts to combat terrorism;
  • the extent to which changes in regulation and/or assumptions result in changes to expenses relating to employee and retiree medical and pension benefits;
  • competitive product and pricing pressures;
  • our ability to recover under contractual rights of indemnification for environmental and other claims arising out of the divestiture of our tire, vinyl and other businesses;
  • possible assertion of claims against us on the theory that we, as the former corporate parent of Coltec Industries Inc, bear some responsibility for the asbestos-related liabilities of Coltec and its subsidiaries;
  • the effect of changes in accounting policies or tax legislation;
  • cumulative catch-up adjustments or loss contract reserves on long-term contracts accounted for under the percentage of completion method of accounting;
  • domestic and foreign government spending, budgetary and trade policies;
  • economic and political changes in international markets where we compete, such as changes in currency exchange rates, inflation, fuel prices, deflation, recession and other external factors over which we have no control;
  • the outcome of contingencies including completion of acquisitions, divestitures, tax audits, litigation and environmental remediation efforts; and
  • the impact of labor difficulties or work stoppages at our, a customer's or a supplier's facilities

We caution you not to place undue reliance on the forward-looking statements contained in this document, which speak only as of the date on which such statements are made. We undertake no obligation to release publicly any revisions to these forward-looking statements to reflect events or circumstances after the date on which such statements were made or to reflect the occurrence of unanticipated events.

Supplemental Data

Segment Review

    
    
     Quarter Ended December 31, 2009 Compared with Quarter Ended December 31,
                                     2008
    
                                      Quarter Ended December 31,
                           ------------------------------------------------
                                                               % of Sales
                                                      %      --------------
                           2009          2008       Change   2009      2008
                           ----          ----       ------   ----      ----
                          (Dollars in millions)
    NET CUSTOMER SALES
    Actuation and
     Landing Systems         $645         $579          11%
    Nacelles and
     Interior Systems        $533         $603        (12%)
    Electronic Systems       $464         $513        (10%)
                             ----         ----
    Total Sales            $1,642       $1,695         (3%)
    
    SEGMENT OPERATING INCOME
    Actuation and
     Landing Systems        $68.3        $61.4          11%   10.6%     10.6%
    Nacelles and
     Interior Systems      $100.6       $145.6         (31%)  18.9%     24.1%
    Electronic Systems      $65.0        $69.0          (6%)  14.0%     13.5%
                            -----        -----
    Segment Operating
     Income                $233.9       $276.0         (15%)  14.2%     16.3%

Actuation and Landing Systems:  Actuation and Landing Systems segment sales for the fourth quarter 2009 increased from the fourth quarter 2008 primarily due to the following:

  • Higher large commercial airplane OE sales of approximately $67 million, primarily in our landing gear business; and
  • Higher defense and space OE and aftermarket sales, across all businesses, of approximately $35 million; partially offset by
  • Lower large commercial, regional, business and general aviation airplane aftermarket sales, across most businesses, of approximately $15 million;
  • Lower regional, business and general aviation airplane OE sales, across most businesses, of approximately $12 million; and
  • Lower other non-aerospace OE and aftermarket sales of approximately $9 million, primarily in our engine components business.

Actuation and Landing Systems segment operating income for the fourth quarter 2009 increased from the fourth quarter 2008 primarily as a result of the following:

  • Favorable pricing and reduced operating costs across most businesses, which resulted in higher income of approximately $23 million; and
  • Higher sales volume, primarily in our landing gear and actuation systems businesses, resulting in higher income of $5 million; partially offset by
  • Higher pension and restructuring costs across most businesses, which resulted in lower income of approximately $11 million;
  • Unfavorable product mix, primarily in our landing gear and wheels and brakes businesses, resulting in lower income of $7 million; and
  • Unfavorable foreign exchange of approximately $2 million.

Nacelles and Interior Systems:  Nacelles and Interior Systems segment sales for the fourth quarter 2009 decreased from the fourth quarter 2008 primarily due to the following:

  • Lower large commercial, regional, business and general aviation airplane aftermarket sales of approximately $74 million, primarily in our aerostructures and interiors businesses; and
  • Lower regional, business, and general aviation airplane OE sales of approximately $23 million, primarily in our aerostructures business; partially offset by
  • Higher large commercial airplane OE sales of approximately $27 million, primarily in our aerostructures and interiors businesses.

Nacelles and Interior Systems segment operating income for the fourth quarter 2009 decreased from the fourth quarter 2008 primarily due to the following:

  • Lower sales volume partially offset by favorable product mix, primarily in our aerostructures business, which resulted in lower income of approximately $59 million;
  • Higher pension and restructuring costs across most businesses, which resulted in lower income of approximately $15 million;
  • Lower income of approximately $7 million related to changes in estimates for certain long-term contracts in our aerostructures business that were more favorable in 2008; and
  • Unfavorable foreign exchange of approximately $2 million; partially offset by
  • Favorable pricing and reduced operating costs across most businesses, which resulted in higher income of approximately $38 million.

Electronic Systems:  Electronic Systems segment sales for the fourth quarter 2009 decreased from the fourth quarter 2008 primarily due to the following:

  • Lower engine controls sales of approximately $36 million which are no longer being reported by us. Sales in 2009 are recorded by the JV that was completed in the fourth quarter 2008;
  • Lower regional, business and general aviation airplane OE sales primarily in our sensors and integrated systems and engine controls and electrical power businesses of approximately $25 million; and
  • Lower large commercial, regional, business and general aviation airplane aftermarket sales primarily in our sensors and integrated systems and engine controls and electrical power businesses of approximately $23 million; partially offset by
  • Higher defense and space sales across all businesses of approximately $26 million, including sales of approximately $9 million associated with the acquisitions of Cloud Cap Technology and Atlantic Inertial Systems, both of which occurred subsequent to the fourth quarter 2008; and
  • Higher large commercial OE sales primarily in our sensors and integrated systems and intelligence, surveillance and reconnaissance businesses of approximately $6 million.

Electronic Systems segment operating income for the fourth quarter 2009 decreased from the fourth quarter 2008 primarily due to the following:

  • Lower sales volume, primarily in our sensors and integrated systems and engine controls and electrical power businesses, partially offset by favorable product mix, primarily in our intelligence, surveillance and reconnaissance business, which resulted in lower income of approximately $19 million; and
  • Higher pension and restructuring costs across most businesses, which resulted in lower income of approximately $6 million; partially offset by
  • Favorable pricing and reduced operating costs primarily in our sensors and integrated systems and engine controls and electrical power businesses, which resulted in higher income of approximately $13 million;
  • Favorable foreign exchange of approximately $5 million; and
  • The favorable effect of the JV on the segment's operating income of approximately $2 million. We recorded our portion of the JV's 2009 operating results in other income (expense) — net.
    
    
                                     PRELIMINARY
                                 GOODRICH CORPORATION
                     CONSOLIDATED STATEMENT OF INCOME (UNAUDITED)
                    (DOLLARS IN MILLIONS EXCEPT PER SHARE AMOUNTS)
    
    
                                 Three Months               Year
                                    Ended                   Ended
                                 December 31,            December 31,
                                 ------------            ------------
                              2009          2008      2009          2008
                              ----          ----      ----          ----
    Sales                   $1,642.3      $1,695.1  $6,685.6      $7,061.7
    Operating costs and
     expenses:
      Cost of sales          1,170.9       1,191.0   4,724.1       4,906.2
      Selling and
       administrative costs    280.3         263.0   1,032.3       1,054.6
                               -----         -----   -------       -------
                             1,451.2       1,454.0   5,756.4       5,960.8
                             -------       -------   -------       -------
    Operating Income           191.1         241.1     929.2       1,100.9
    Interest expense           (30.8)        (27.2)   (121.0)       (112.4)
    Interest income              0.1           0.6       1.1           5.7
    Other income
     (expense) – net            (6.5)          8.8     (25.2)         (9.6)
                                ----           ---     -----          ----
    Income from
     continuing
     operations before
     income taxes              153.9         223.3     784.1         984.6
    Income tax expense         (45.4)        (50.5)   (207.8)       (293.0)
                               -----         -----    ------        ------
    Income From
     Continuing
     Operations                108.5         172.8     576.3         691.6
    Income (loss) from
     discontinued
     operations -net of
     income taxes               (0.5)          0.1      34.5           7.6
                                ----           ---      ----           ---
    Consolidated Net
     Income                    108.0         172.9     610.8         699.2
    Net income
     attributable to
     noncontrolling
     interests                  (3.0)         (4.2)    (13.5)        (18.0)
                                ----          ----     -----         -----
    Net Income
     Attributable to
     Goodrich                 $105.0        $168.7    $597.3        $681.2
                              ======        ======    ======        ======
    
    Amounts attributable
     to Goodrich:
    Income from
     continuing
     operations               $105.5        $168.6    $562.8        $673.6
    Income (loss) from
     discontinued
     operations -net of
     income taxes               (0.5)          0.1      34.5           7.6
                                ----           ---      ----           ---
    Net Income
     Attributable to
     Goodrich                 $105.0        $168.7    $597.3        $681.2
                              ======        ======    ======        ======
    
    Earnings per common
     share attributable
     to Goodrich:
    
    Basic Earnings per
     Share:
      Continuing operations    $0.84         $1.35     $4.47         $5.34
      Discontinued
       operations              (0.01)            -      0.28          0.06
                               -----           ---      ----          ----
        Net Income
         Attributable to
         Goodrich              $0.83         $1.35     $4.75         $5.40
                               =====         =====     =====         =====
    Diluted Earnings per
     Share:
      Continuing operations    $0.83         $1.35     $4.43         $5.29
      Discontinued
       operations              (0.01)            -      0.27          0.06
                               -----           ---      ----          ----
        Net Income
         Attributable to
         Goodrich              $0.82         $1.35     $4.70         $5.35
                               =====         =====     =====         =====
    
    Dividends Declared
     per Common Share          $0.27         $0.25     $1.02        $0.925
                               =====         =====     =====        ======
    
    
                                       PRELIMINARY
                                  GOODRICH CORPORATION
                              SEGMENT REPORTING (UNAUDITED)
                     (DOLLARS IN MILLIONS EXCEPT PER SHARE AMOUNTS)
    
                                  Three Months              Year
                                     Ended                  Ended
                                  December 31,           December 31,
                                  ------------           ------------
                               2009          2008     2009          2008
                               ----          ----     ----          ----
    Sales:
      Actuation and Landing
       Systems                $645.1        $579.0  $2,524.3      $2,614.9
      Nacelles and Interior
       Systems                 533.4         603.5   2,322.6       2,485.6
      Electronic Systems       463.8         512.6   1,838.7       1,961.2
                               -----         -----   -------       -------
    
    Total Sales             $1,642.3      $1,695.1  $6,685.6      $7,061.7
                            ========      ========  ========      ========
    
    Operating Income:
      Actuation and Landing
       Systems                 $68.3         $61.4    $266.9        $300.0
      Nacelles and Interior
       Systems                 100.6         145.6     515.3         647.5
      Electronic Systems        65.0          69.0     276.4         268.8
                                ----          ----     -----         -----
    
    Total Segment
     Operating Income (1)      233.9         276.0   1,058.6       1,216.3
    
    Corporate General and
     Administrative Costs      (36.0)        (28.3)   (111.2)        (96.1)
    ERP Implementation
     Costs                      (6.8)         (6.6)    (18.2)        (19.3)
                                ----          ----     -----         -----
    
    Total Operating Income    $191.1        $241.1    $929.2      $1,100.9
                              ======        ======    ======      ========
    
    Segment Operating
     Income as a Percent
     of Sales:
      Actuation and Landing
       Systems                  10.6%         10.6%     10.6%         11.5%
      Nacelles and Interior
       Systems                  18.9%         24.1%     22.2%         26.1%
      Electronic Systems        14.0%         13.5%     15.0%         13.7%
    
    Total Segment
     Operating Income as
     a Percent of Sales         14.2%         16.3%     15.8%         17.2%
    
    
    (1) Segment operating income is total segment revenue reduced by
    operating expenses directly identifiable with our business segments
    except for certain enterprise ERP implementation expenses which were
    not allocated to the segments.  Segment operating income is used by
    management to assess the operating performance of the segments. See
    reconciliation of total segment operating income to total operating
    income above.
    
    
                                       Three Months              Year
                                          Ended                  Ended
                                       December 31,          December 31,
                                       ------------          ------------
                                    2009          2008    2009          2008
                                    ----          ----    ----          ----
     Numerator
     Income from continuing
      operations attributable to
      Goodrich                     $105.5        $168.6  $562.8        $673.6
     Percentage allocated to
      common shareholders            98.6%         98.6%   98.6%         98.6%
                                     ----          ----    ----          ----
                                   $104.2        $166.3  $555.0        $664.3
                                   ======        ======  ======        ======
    
     Denominator
     Weighted-average shares        124.5         123.1   124.1         124.4
     Effect of dilutive securities    1.4           0.5     1.1           1.1
                                      ---           ---     ---           ---
     Adjusted weighted-average
      shares and assumed
      conversion                    125.9         123.6   125.2         125.5
                                    =====         =====   =====         =====
     Per share income from
      continuing operations
     Basic                          $0.84         $1.35   $4.47         $5.34
                                    =====         =====   =====         =====
     Diluted                        $0.83         $1.35   $4.43         $5.29
                                    =====         =====   =====         =====
    
    
    
                                     PRELIMINARY
                                 GOODRICH CORPORATION
                        CONSOLIDATED BALANCE SHEET (UNAUDITED)
                      (DOLLARS IN MILLIONS EXCEPT SHARE AMOUNTS)
    
                                                    December 31,  December 31,
                                                        2009          2008
                                                        ----          ----
    Current Assets
    Cash and cash equivalents                           $811.0         $370.3
    Accounts and notes receivable -  net               1,073.2        1,048.9
    Inventories - net                                  2,290.4        1,974.7
    Deferred income taxes                                165.2          153.5
    Prepaid expenses and other assets                     59.6           47.2
    Income taxes receivable                               15.0           73.7
                                                          ----           ----
      Total Current Assets                             4,414.4        3,668.3
                                                       -------        -------
    Property, plant and equipment - net                1,451.2        1,391.4
    Prepaid pension                                        0.8            0.6
    Goodwill                                           1,587.0        1,390.2
    Identifiable intangible assets - net                 633.2          402.8
    Deferred income taxes                                 16.7           92.0
    Other assets                                         638.1          537.6
                                                         -----          -----
      Total Assets                                    $8,741.4       $7,482.9
                                                      ========       ========
    Current Liabilities
    Short-term debt                                       $3.1          $37.7
    Accounts payable                                     547.8          646.4
    Accrued expenses                                   1,037.4        1,005.3
    Income taxes payable                                   0.5            5.6
    Deferred income taxes                                 23.8           25.0
    Current maturities of long-term debt
     and capital lease obligations                         0.5          121.3
                                                           ---          -----
      Total Current Liabilities                        1,613.1        1,841.3
                                                       -------        -------
    Long-term debt and capital lease
     obligations                                       2,008.1        1,410.4
    Pension obligations                                  908.7          973.9
    Postretirement benefits other than
     pensions                                            301.1          309.4
    Long-term income taxes payable                       171.1          172.3
    Deferred income taxes                                257.2           62.3
    Other non-current liabilities                        514.5          561.1
    Shareholders’ Equity
    Common stock - $5 par value
    Authorized 200,000,000 shares; issued
     145,241,995 shares at
      December 31, 2009 and 143,611,254
       shares at December 31, 2008
      (excluding 14,000,000 shares held by
       a wholly owned subsidiary)                        726.2          718.1
    Additional paid-in capital                         1,597.0        1,525.3
    Income retained in the business                    2,088.0        1,619.2
    Accumulated other comprehensive
     income (loss)                                      (673.2)        (978.1)
    Common stock held in treasury, at
     cost (20,854,137 shares at
       December 31, 2009 and 20,410,556
        shares at December 31, 2008)                    (817.0)        (793.2)
                                                        ------         ------
      Total Shareholders’ Equity                       2,921.0        2,091.3
    Noncontrolling interests                              46.6           60.9
                                                          ----           ----
      Total Equity                                     2,967.6        2,152.2
                                                       -------        -------
      Total Liabilities And Equity                    $8,741.4       $7,482.9
                                                      ========       ========
    
    
                                          PRELIMINARY
                                      GOODRICH CORPORATION
                          CONSOLIDATED STATEMENT OF CASH FLOWS (UNAUDITED)
                                    (DOLLARS IN MILLIONS)
    
                                         Three Months             Year
                                             Ended                Ended
                                         December 31,          December 31,
                                         ------------          ------------
                                      2009          2008     2009        2008
                                      ----          ----     ----        ----
    Operating Activities
    Consolidated net income          $108.0        $172.9   $610.8     $699.2
    Adjustments to reconcile
     consolidated net income to net
     cash provided by operating 
     activities:
    Loss (income) from discontinued
     operations                         0.5          (0.1)   (34.5)      (7.6)
    Restructuring and consolidation:
       Expenses                         6.0           0.8     21.6        2.1
       Payments                        (3.5)         (0.8)   (13.6)      (2.5)
    Pension and postretirement
     benefits:
       Expenses                        50.4          20.8    199.5       97.7
       Contributions and benefit
        payments                      (69.3)       (130.5)  (271.8)    (254.7)
    Depreciation and amortization      64.2          65.2    249.3      257.2
    Excess tax benefits related to
     share-based payment
     arrangements                      (1.7)          0.3     (5.0)      (8.1)
    Share-based compensation expense   21.6          10.9     66.7       36.4
    Deferred income taxes             127.3         152.4    139.4      143.4
    Change in assets and liabilities,
     net of effects of acquisitions
     and divestitures:
       Receivables                     88.9          23.4     44.8     (125.7)
       Inventories, excluding pre-
        production and excess-over-
        average                       (14.3)        (45.4)   (42.3)    (189.8)
       Pre-production and excess-over-
        average inventories           (55.3)        (37.3)  (180.2)    (120.6)
       Other current assets             4.5          (5.8)     5.5       (8.6)
       Accounts payable               (42.9)         29.9   (142.7)     137.8
       Accrued expenses                56.4          98.9      2.5       43.4
       Income taxes
        payable/receivable            (84.5)       (114.7)    51.2       36.5
       Other non-current assets and
        liabilities                   (26.8)         84.9    (44.7)      50.5
                                      -----          ----    -----       ----
    Net Cash Provided By Operating
     Activities                       229.5         325.8    656.5      786.6
                                      -----         -----    -----      -----
    Investing Activities
    Purchases of property, plant and
     equipment                        (54.0)        (95.1)  (169.0)    (284.7)
    Proceeds from sale of property,
     plant and equipment                  -           3.7      1.3        6.5
    Payments made for acquisitions,
     net of cash acquired            (362.2)            -   (392.1)    (131.8)
    Investments in and advances to
     equity investees                  (0.5)            -     (2.0)         -
                                       ----           ---     ----        ---
    Net Cash Used In Investing
     Activities                      (416.7)        (91.4)  (561.8)    (410.0)
                                     ------         -----   ------     ------
    Financing Activities
    (Decrease) increase in short-
     term debt, net                   (33.5)        (74.7)   (35.0)      15.9
    Proceeds (repayments) of long-
     term debt and capital lease
     obligations                      299.1          (2.9)   476.5     (201.0)
    Proceeds from issuance of common
     stock                              8.9           0.5     35.3       24.7
    Purchases of treasury stock       (16.0)         (0.1)   (23.8)    (138.4)
    Dividends paid                    (31.5)        (28.4)  (125.6)    (114.1)
    Excess tax benefits related to
     share-based payment
     arrangements                       1.7          (0.3)     5.0        8.1
    Distributions to noncontrolling
     interests                        (20.0)         (2.8)   (27.8)      (9.6)
                                      -----          ----    -----       ----
    Net Cash Provided By (Used In)
     Financing Activities             208.7        (108.7)   304.6     (414.4)
                                      -----        ------    -----     ------
    Discontinued Operations
       Net cash provided by (used in)
        operating activities           (0.1)            -     34.1       (2.6)
       Net cash provided by (used in)
        investing activities              -             -        -       15.7
       Net cash provided by (used in)
        financing activities              -             -        -          -
                                        ---           ---      ---        ---
    Net cash provided by discontinued
     operations                        (0.1)            -     34.1       13.1
    Effect of exchange rate changes
     on cash and cash equivalents         -          (2.3)     7.3      (11.0)
                                        ---          ----      ---      -----
    Net increase (decrease) in cash
     and cash equivalents              21.4         123.4    440.7      (35.7)
    Cash and cash equivalents at
     beginning of period              789.6         246.9    370.3      406.0
                                      -----         -----    -----      -----
    Cash and cash equivalents at end
     of period                       $811.0        $370.3   $811.0     $370.3
                                     ======        ======   ======     ======
    
    
    
                                       PRELIMINARY
                                   GOODRICH CORPORATION
                     SUPPLEMENTARY FINANCIAL INFORMATION (UNAUDITED)
                                  (DOLLARS IN MILLIONS)
    
    
                                 Three Months                Year
                                    Ended                    Ended
                                 December 31,             December 31,
                                 ------------             ------------
    Preliminary
     Income Statement Data:   2009           2008     2009           2008
                              ----           ----     ----           ----
    
    Net Interest Expense    $(30.7)        $(26.6)  $(119.9)       $(106.7)
    
    Other Income
     (Expense), Net:         $(6.5)          $8.8    $(25.2)         $(9.6)
                             -----           ----    ------          -----
      - Divested business
        retiree health care   (3.2)          (2.4)    (12.3)         (17.0)
      - Income (expense)
        related to
        previously owned
        businesses            (5.7)          (3.1)     (9.1)          (9.0)
      - Equity in
        affiliated companies   2.8            1.2      (3.5)           2.7
      - Net gain recognized
        in the formation of
        a joint venture          -           16.0         -           12.8
      - Other Income 
        (expense)             (0.4)          (2.9)     (0.3)           0.9
    
    
    Preliminary Cash
     Flow Data:
    Dividends               $(31.5)        $(28.4)  $(125.6)       $(114.1)
    
    Depreciation and
     Amortization            $64.2          $65.2    $249.3         $257.2
                             -----          -----    ------         ------
      - Depreciation          45.4           47.5     179.2          183.4
      - Amortization          18.8           17.7      70.1           73.8
    
    
    
                                                                
                                                     December 31, December 31,
    Preliminary Balance Sheet Data:                      2009        2008
                                                         ----        ----
    
    
    Preproduction and Excess-Over-Average
     Inventory                                           $827.7      $633.1
    
      Short-term Debt                                      $3.1       $37.7
      Current Maturities of Long-term Debt and
       Capital Lease Obligations                            0.5       121.3
      Long-term Debt and Capital Lease Obligations      2,008.1     1,410.4
                                                        -------     -------
    
    Total Debt(1)                                      $2,011.7    $1,569.4
      Cash and Cash Equivalents                           811.0       370.3
                                                          -----       -----
    
    Net Debt(1)                                        $1,200.7    $1,199.1
                                                       ========    ========
    
    
    (1)  Total Debt (defined as short-term debt plus current maturities
    of long-term debt and capital lease obligations plus long-term debt
    and capital lease obligations) and Net Debt (defined as Total Debt minus
    cash and cash equivalents) are non-GAAP financial measures that the 
    Company believes are useful to rating agencies and investors in
    understanding the Company’s capital structure and leverage. Because all 
    companies do not calculate these measures in the same manner, the 
    Company's presentation may not be comparable to other similarly titled 
    measures reported by other companies.

SOURCE Goodrich Corporation



RELATED LINKS

http://www.goodrich.com