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 2008 sales of $1,695 million increased 2 percent over
fourth quarter 2007 sales of $1,668 million, including 4 percent growth in
commercial aftermarket sales.
-- Total segment operating income margin increased to 16.3 percent, from
15.8 percent in the fourth quarter 2007.
-- Full year 2008 sales of $7.1 billion, an increase of 10 percent over
full year 2007 sales of $6.4 billion.
-- Full year 2008 income per diluted share from continuing operations of
$5.33 and net income per diluted share of $5.39, an increase of 37 percent and
43 percent, respectively, compared to 2007 results.
-- Full year 2009 sales expectations reduced to $7.1 - $7.2 billion. Net
income per diluted share expectations have been lowered to $4.50 - $4.90, from
$5.05 - $5.25 previously, to incorporate updated expectations for 2009 pension
expense and to take into account the uncertainty of the global economic
environment. Net cash provided by operating activities, minus capital
expenditures, is expected to exceed 75 percent of net income in 2009.
Goodrich Corporation (NYSE: GR) announced results today for the fourth
quarter and full year 2008 and lowered its outlook for 2009 sales and net
income per diluted share, after incorporating updated expectations for 2009
pension expense and to take into account the uncertainty of the global
economic environment.
Commenting on the company's performance and its outlook, Marshall Larsen,
Chairman, President and Chief Executive Officer said, "Clearly, we are
operating in an extremely challenging macroeconomic environment. Goodrich has
performed very well in this environment, and we expect to continue our strong
performance relative to market trends during 2009. Even though global airline
capacity is expected to contract slightly in 2009, we have excellent product
positions on the newer, more fuel-efficient airplanes that are least likely to
be removed from service. We believe that this positioning will allow us to
continue to report 2009 commercial aftermarket sales performance above market
trends. We continue to expect commercial airplane original equipment sales
growth for Goodrich in 2009, compared to 2008, as Boeing and Airbus are
expected to deliver more new airplanes in 2009 than they delivered in 2008.
Additionally, we are developing products for the right planes of tomorrow,
including significant products for the Boeing 787 Dreamliner, the Airbus A350
XWB, the Bombardier CSeries and the Mitsubishi Regional Jet. These new
programs are expected to generate significant new revenues for Goodrich for
many years to come, and will help Goodrich sustain its position as an industry
leader in its commercial aerospace markets. During 2009, we expect our
diversified portfolio of defense and space products to continue to grow,
especially in key product areas such as intelligence, surveillance and
reconnaissance (ISR) and our helicopter products."
"All of us at Goodrich are actively engaged in efforts to reduce our
discretionary spending and control our headcount during these uncertain
economic times. We are prepared to act swiftly as economic conditions change
to minimize the impact of potential reductions in new aircraft production or
further decreases in airline capacity. With our strong balance sheet,
excellent cash flow and motivated workforce, we believe we can continue our
track record of strong financial performance during 2009 and beyond," Larsen
continued.
Fourth Quarter 2008 Results
Goodrich reported fourth quarter 2008 net income of $169 million, or $1.35
per diluted share, on sales of $1,695 million. In the fourth quarter 2007,
the company reported net income of $131 million, or $1.03 per diluted share,
on sales of $1,668 million. Fourth quarter 2008 sales increased 2 percent and
net income per diluted share increased 31 percent compared with the fourth
quarter 2007.
Net income in the fourth quarter 2008, compared with the fourth quarter
2007, was affected by the overall increase in sales and improved operational
efficiencies in most business units. Three other factors affected fourth
quarter net income, compared to the fourth quarter 2007, including:
-- The fourth quarter 2008 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.
-- The company reported an effective tax rate of 23 percent for the fourth
quarter of 2008, compared with an effective tax rate of 33 percent during the
fourth quarter 2007. The effective tax rate for the fourth quarter 2008
included the full year 2008 benefit of the extension of the U.S. Research and
Development tax credit, which became law in October 2008. The company also
benefited from lower than expected effective state tax rates and a low
effective rate on the gain associated with the formation of the Rolls-Royce
joint venture noted above.
-- The fourth quarter 2007 results included pre-tax income of $18.5
million, $11.6 million after-tax or $0.09 per diluted share, related to the
resolution of an A380 claim against Northrop Grumman. There were no similar
gains during the fourth quarter 2008.
The increased overall sales for the quarter reflected continued growth in
most of the company's major market channels. For the fourth quarter 2008
compared with the fourth quarter 2007, sales changes by market channel were as
follows:
-- Large commercial airplane original equipment sales decreased by 11
percent. Sales to Airbus grew by about 9 percent, but sales to Boeing
declined by about 40 percent primarily due to the machinists' strike which
resulted in fewer deliveries of components for Boeing airplanes,
-- Regional, business and general aviation airplane original equipment
sales increased by 15 percent,
-- Large commercial, regional, business and general aviation airplane
aftermarket sales increased by 4 percent, and
-- Defense and space sales of both original equipment and aftermarket
products and services increased by 7 percent.
Sales during the fourth quarter 2008, compared to the fourth quarter 2007,
were negatively affected by $69 million due to foreign currency exchange rate
impacts.
Net cash provided by operating activities during the fourth quarter 2008
was $326 million, an increase of $138 million from the same period in 2007.
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. Also in the fourth quarter the company contributed $126 million to
its worldwide pension plans, compared with $22 million during the fourth
quarter 2007. Capital expenditures were $95 million in the fourth quarter
2008 compared with capital expenditures of $122 million in the fourth quarter
2007.
Full Year 2008 Results
For the full year 2008, the company reported income from continuing
operations of $674 million or $5.33 per diluted share, on sales of $7,062
million. The effective tax rate for 2008 was approximately 30 percent,
compared with an effective tax rate of 31 percent for 2007. During the full
year 2007, income from continuing operations was $496 million, or $3.88 per
diluted share, on sales of $6,392 million.
Net income for the full year 2008 was $681 million, or $5.39 per diluted
share, including an after-tax gain from discontinued operations of $8 million,
or $0.06 per diluted share. During the full year 2007, net income was $483
million, or $3.78 per diluted share, on sales of $6,392 million, including an
after-tax loss from discontinued operations of $13 million, or $0.10 per
diluted share, primarily associated with the sale of the company's Aviation
Technical Services business.
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.
The company's full year 2009 sales expectations are for sales of $7.1 -
$7.2 billion, representing expected growth of about 1 - 2 percent compared to
2008. The 2009 sales expectations, compared to 2008, include unfavorable
sales impacts of approximately $180 million, or 2 percent of sales, related to
foreign currency exchange rate fluctuations and lower sales of approximately
$150 million related to the formation of the Rolls-Royce engine controls joint
venture.
The outlook for 2009 income from continuing operations and net income per
diluted share is for a range of $4.50 - $4.90. Excluding the gain related to
formation of the joint venture in 2008, referenced above, and increased
pension expenses discussed below, Goodrich's outlook for income from
continuing operations per diluted share would have been slightly up for 2009,
compared to 2008.
The 2009 outlook includes, among other factors:
-- Compared to 2008, higher pre-tax pension expense of $110 million, or
$0.55 per diluted share. The higher pension expense incorporates the
company's negative return on U.S. plan assets of approximately 19 percent in
2008. It includes a 2009 U.S. discount rate of approximately 6.5 percent,
compared to a rate of 6.3 percent for 2008,
-- A full-year effective tax rate of 31 - 32 percent for 2009, and
-- Favorable foreign exchange translation costs for 2009 that are
approximately $5 million lower than those experienced in 2008.
For 2009, Goodrich expects net cash provided by operating activities,
minus capital expenditures, to exceed 75 percent of net income, including the
impact of announced delays in the Boeing 787 Dreamliner and the Airbus A380
airplane programs. This outlook reflects a continuation of investments to
support these programs, the Airbus A350 XWB and low-cost country manufacturing
and productivity initiatives that are expected to enhance margins over the
near and long term. The company now expects capital expenditures for 2009 to
be in a range of $230 - $270 million, compared to the prior outlook of $275 -
$300 million.
The current sales, net income and net cash provided by operating
activities outlooks for 2009 do not include the impact of acquisitions or
divestitures.
The supplemental discussion and tables that follow provide more detailed
information about the fourth quarter 2008 segment results.
Goodrich will hold a conference call on February 4, 2009 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
and the Lockheed Martin F-35 Lightning II and F-22 Raptor;
-- 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;
-- the financial viability of key suppliers and the ability of our
suppliers to perform under existing contracts;
-- 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 expenses relating to employee and retiree medical
and pension benefits change;
-- 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, 2008 Compared with Quarter Ended December 31,
2007
Quarter Ended December 31,
% % of Sales
2008 2007 Change 2008 2007
(Dollars in millions)
NET CUSTOMER SALES
Actuation and Landing
Systems $579 $637 (9%)
Nacelles and Interior
Systems $603 $543 11%
Electronic Systems $513 $488 5%
Total Sales $1,695 $1,668 2%
SEGMENT OPERATING INCOME
Actuation and Landing
Systems $61 $66 (8%) 10.6% 10.3%
Nacelles and Interior
Systems $146 $126 15% 24.1% 23.3%
Electronic Systems $69 $72 (4%) 13.5% 14.8%
Segment Operating
Income $276 $264 4% 16.3% 15.8%
Actuation and Landing Systems: Actuation and Landing Systems segment sales
of $579 million for the quarter ended December 31, 2008 decreased $58 million,
or 9 percent, from $637 million for the quarter ended December 31, 2007. The
decrease was primarily due to the following:
-- Lower large commercial airplane OE sales of approximately $52 million,
primarily in our landing gear business unit. The sales decrease was primarily
associated with the Boeing strike, which ended in November 2008; and
-- Lower defense and space OE and aftermarket sales of approximately $7
million, primarily in our actuation systems and aircraft wheels and brakes
business units; partially offset by
-- Higher non-aerospace sales of approximately $4 million in our engine
components business unit.
Actuation and Landing Systems segment operating income of $61 million for
the quarter ended December 31, 2008 decreased $5 million, or 8 percent, from
$66 million for the quarter ended December 31, 2007. This decrease in
operating income was primarily due to the following:
-- Settlement of an A380 claim with Northrop Grumman in the fourth quarter
of 2007 that did not recur in 2008, which resulted in lower income of
approximately $16 million; partially offset by
-- Favorable product mix across most business units, which resulted in
higher income of approximately $4 million; and
-- Higher pricing net of increased operating costs across all business
units, which resulted in higher income of approximately $9 million.
Nacelles and Interior Systems: Nacelles and Interior Systems segment sales
of $603 million in the quarter ended December 31, 2008 increased $60 million,
or 11 percent, from $543 million in the quarter ended December 31, 2007. The
increase was primarily due to the following:
-- Higher large commercial airplane aftermarket sales, including spare
parts and MRO volume of approximately $16 million, primarily in our
aerostructures and interiors business units;
-- Higher defense and space OE and aftermarket sales of approximately $20
million, primarily in our aerostructures and interiors business units;
-- Higher regional, business, and general aviation airplane OE sales of
approximately $13 million, primarily in our aerostructures and interiors
business units; and
-- Higher large commercial airplane OE sales of approximately $12 million,
primarily in our interiors business unit. In our aerostructures business
unit, increased sales to Airbus were offset by decreased sales to Boeing, due
primarily to the machinists' strike.
Nacelles and Interior Systems segment operating income of $146 million in
the quarter ended December 31, 2008 increased $20 million, or 15 percent, from
$126 million in the quarter ended December 31, 2007. The increased segment
operating income was primarily due to the following:
-- Higher sales volume, primarily in our aerostructures and interiors
business units, which resulted in higher income of approximately $22 million;
partially offset by
-- Higher operating costs of approximately $3 million across all business
units.
Electronic Systems: Electronic Systems segment sales of $513 million in
the quarter ended December 31, 2008 increased $25 million, or 5 percent, from
$488 million in the quarter ended December 31, 2007. The increase was
primarily due to the following:
-- Higher defense and space OE and aftermarket sales of approximately $18
million, primarily in our intelligence, surveillance and reconnaissance and
sensors and integrated systems business units, including sales associated with
the acquisition of TEAC and ROI of approximately $16 million;
-- Higher large commercial, regional, business and general aviation
airplane aftermarket sales of approximately $9 million, primarily in our
sensors and integrated systems and engine control and electrical power systems
business units, including sales associated with the acquisition of TEAC of
approximately $3 million;
-- Higher regional, business and general aviation airplane OE sales of
approximately $7 million, primarily in our sensors and integrated systems
business unit; partially offset by
-- Lower large commercial airplane OE sales of approximately $7 million,
primarily in our engine control and electrical power systems and sensors and
integrated systems business units.
Electronic Systems segment operating income of $69 million in the quarter
ended December 31, 2008 decreased $3 million, or 4 percent, from $72 million
in the quarter ended December 31, 2007. The decreased segment operating
income was primarily due to the following:
-- Higher costs of approximately $13 million, primarily due to higher
research and development expenses on new programs in our sensors and
integrated systems and engine control and electrical power systems business
units; partially offset by
-- Higher sales volume offset by unfavorable pricing and product mix,
primarily in our sensors and integrated systems and engine control and
electrical power systems business units, which resulted in higher income of
approximately $12 million.
PRELIMINARY
GOODRICH CORPORATION
CONSOLIDATED STATEMENT OF INCOME (UNAUDITED)
(DOLLARS IN MILLIONS EXCEPT PER SHARE AMOUNTS)
Three Months Year
Ended Ended
December 31, December 31,
2008 2007 2008 2007
Sales $1,695.1 $1,667.8 $7,061.7 $6,392.2
Operating costs and expenses:
Cost of sales 1,191.0 1,189.9 4,906.2 4,483.3
Selling and administrative costs 263.0 250.6 1,054.6 1,027.6
1,454.0 1,440.5 5,960.8 5,510.9
Operating Income 241.1 227.3 1,100.9 881.3
Interest expense (27.2) (31.1) (112.4) (124.9)
Interest income 0.6 3.7 5.7 9.2
Other income (expense) - net 4.6 (3.1) (27.6) (48.7)
Income from continuing operations
before income taxes 219.1 196.8 966.6 716.9
Income tax expense (50.5) (64.0) (293.0) (220.9)
Income From Continuing Operations 168.6 132.8 673.6 496.0
Income (loss) from discontinued
operations 0.1 (1.6) 7.6 (13.4)
Net Income $168.7 $131.2 $681.2 $482.6
Basic Earnings per Share:
Continuing operations $1.37 $1.06 $5.41 $3.96
Discontinued operations - (0.01) 0.06 (0.10)
Net Income $1.37 $1.05 $5.47 $3.86
Diluted Earnings per Share:
Continuing operations $1.35 $1.04 $5.33 $3.88
Discontinued operations - (0.01) 0.06 (0.10)
Net Income $1.35 $1.03 $5.39 $3.78
Dividends Declared per Common
Share $0.25 $0.225 $0.925 $0.825
Weighted - Average Number of
Shares Outstanding (in millions)
Basic 123.1 124.8 124.4 125.1
Diluted 124.6 127.7 126.5 127.8
PRELIMINARY
GOODRICH CORPORATION
SEGMENT REPORTING (UNAUDITED)
(DOLLARS IN MILLIONS)
Three Months Year
Ended Ended
December 31, December 31,
2008 2007 2008 2007
Sales:
Actuation and Landing Systems $579.0 $636.5 $2,614.9 $2,400.6
Nacelles and Interior Systems 603.5 543.2 2,485.6 2,169.0
Electronic Systems 512.6 488.1 1,961.2 1,822.6
Total Sales $1,695.1 $1,667.8 $7,061.7 $6,392.2
Operating Income:
Actuation and Landing Systems $61.4 $65.8 $300.0 $247.8
Nacelles and Interior Systems 145.6 126.3 647.5 531.0
Electronic Systems 69.0 72.1 268.8 247.8
Total Segment Operating Income (1) 276.0 264.2 1,216.3 1,026.6
Corporate General and
Administrative Costs (28.3) (33.2) (96.1) (129.1)
ERP Implementation Costs (6.6) (3.7) (19.3) (16.2)
Total Operating Income $241.1 $227.3 $1,100.9 $881.3
Segment Operating Income as a
Percent of Sales:
Actuation and Landing Systems 10.6% 10.3% 11.5% 10.3%
Nacelles and Interior Systems 24.1% 23.3% 26.1% 24.5%
Electronic Systems 13.5% 14.8% 13.7% 13.6%
Total Segment Operating Income as
a Percent of Sales 16.3% 15.8% 17.2% 16.1%
(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.
PRELIMINARY
GOODRICH CORPORATION
CONSOLIDATED BALANCE SHEET (UNAUDITED)
(DOLLARS IN MILLIONS EXCEPT SHARE AMOUNTS)
December 31, December 31,
2008 2007
Current Assets
Cash and cash equivalents $370.3 $406.0
Accounts and notes receivable - net 1,048.9 1,006.2
Inventories - net 1,974.7 1,775.6
Deferred income taxes 153.5 178.2
Prepaid expenses and other assets 47.2 108.4
Income taxes receivable 73.7 74.4
Total Current Assets 3,668.3 3,548.8
Property, plant and equipment - net 1,391.4 1,387.4
Prepaid pension 0.6 16.1
Goodwill 1,390.2 1,363.2
Identifiable intangible assets - net 402.8 452.1
Deferred income taxes 92.0 11.1
Other assets 537.6 755.3
Total Assets $7,482.9 $7,534.0
Current Liabilities
Short-term debt $37.7 $21.9
Accounts payable 646.4 586.7
Accrued expenses 1,005.3 930.8
Income taxes payable 5.6 10.6
Deferred income taxes 25.0 29.7
Current maturities of long-term debt
and capital lease obligations 121.3 162.9
Total Current Liabilities 1,841.3 1,742.6
Long-term debt and capital lease
obligations 1,410.4 1,562.9
Pension obligations 973.9 417.8
Postretirement benefits other than
pensions 309.4 358.9
Long-term income taxes payable 172.3 146.0
Deferred income taxes 62.3 170.2
Other non-current liabilities 622.0 556.2
Shareholders' Equity
Common stock - $5 par value
Authorized 200,000,000 shares; issued
143,611,254 shares at December 31,
2008 and 142,372,162 shares at December
31, 2007 (excluding 14,000,000 shares
held by a wholly owned subsidiary) 718.1 711.9
Additional paid-in capital 1,525.3 1,453.1
Income retained in the business 1,619.2 1,054.8
Accumulated other comprehensive
income (loss) (978.1) 14.4
Common stock held in treasury, at cost
(20,410,556 shares at December 31,
2008 and 17,761,696 shares at December
31, 2007) (793.2) (654.8)
Total Shareholders' Equity 2,091.3 2,579.4
Total Liabilities And Shareholders'
Equity $7,482.9 $7,534.0
PRELIMINARY
GOODRICH CORPORATION
CONSOLIDATED STATEMENT OF CASH FLOWS (UNAUDITED)
(DOLLARS IN MILLIONS)
Three Months Year
Ended Ended
December 31, December 31,
2008 2007 2008 2007
Operating Activities
Net income $168.7 $131.2 $681.2 $482.6
Adjustments to reconcile net income
to net cash provided by operating
activities:
(Income) loss from discontinued
operations (0.1) 1.6 (7.6) 13.4
Pension and postretirement benefits:
Expenses 20.8 20.7 97.7 116.3
Contributions and benefit payments (130.5) (26.3) (254.7) (163.7)
Depreciation and amortization 65.2 61.6 257.2 250.2
Excess tax benefits related to share-
based payment arrangements 0.3 (4.9) (8.1) (16.6)
Share-based compensation expense 10.9 14.7 36.4 70.0
Deferred income taxes 152.4 149.7 143.4 137.8
Change in assets and liabilities, net
of effects of acquisitions and
divestitures:
Receivables 23.4 12.1 (125.7) (81.4)
Inventories, net of pre-
production and excess-over-average (45.4) 30.8 (189.8) (89.2)
Pre-production and excess-over-
average inventories (37.3) (29.6) (120.6) (116.3)
Other current assets (5.8) (2.1) (8.6) 5.7
Accounts payable 29.9 (22.3) 137.8 (10.5)
Accrued expenses 98.9 18.2 43.4 95.0
Income taxes payable/receivable (114.7) (152.8) 36.5 (84.5)
Other non-current assets and
liabilities 89.1 (15.0) 68.1 (15.1)
Net Cash Provided By Operating
Activities 325.8 187.6 786.6 593.7
Investing Activities
Purchases of property, plant and
equipment (95.1) (122.0) (284.7) (282.6)
Proceeds from sale of property, plant
and equipment 3.7 2.5 6.5 3.3
Acquisitions, net of acquired cash - - (131.8) -
Net Cash Used In Investing Activities (91.4) (119.5) (410.0) (279.3)
Financing Activities
Increase (decrease) in short-term
debt, net (74.7) 9.5 15.9 9.2
Repayment of long-term debt and
capital lease obligations (2.9) (0.3) (201.0) (1.4)
Proceeds from issuance of common
stock 0.5 17.0 24.7 95.9
Purchases of treasury stock (0.1) (62.1) (138.4) (214.6)
Dividends paid (28.4) (25.3) (114.1) (101.2)
Excess tax benefits related to share-
based payment arrangements (0.3) 4.9 8.1 16.6
Distributions to minority interest
holders (2.8) (3.8) (9.6) (7.0)
Net Cash Used In Financing Activities (108.7) (60.1) (414.4) (202.5)
Discontinued Operations
Net cash (used in) provided by
operating activities - (5.3) (2.6) 1.3
Net cash provided by investing
activities - 90.2 15.7 88.8
Net cash provided by financing
activities - - - -
Net cash provided by discontinued
operations - 84.9 13.1 90.1
Effect of exchange rate changes on
cash and cash equivalents (2.3) (1.2) (11.0) 2.7
Net increase (decrease) in cash and
cash equivalents 123.4 91.7 (35.7) 204.7
Cash and cash equivalents at
beginning of period 246.9 314.3 406.0 201.3
Cash and cash equivalents at end of
period $370.3 $406.0 $370.3 $406.0
PRELIMINARY
GOODRICH CORPORATION
SUPPLEMENTARY FINANCIAL INFORMATION (UNAUDITED)
(DOLLARS IN MILLIONS)
Three Months Year
Ended Ended
December 31, December 31,
2008 2007 2008 2007
Preliminary Income Statement
Data:
Net Interest Expense $(26.6) $(27.4) $(106.7) $(115.7)
Other Income (Expense),
Net: $4.6 $(3.1) $(27.6) $(48.7)
- Divested business
retiree health care (2.4) (4.6) (17.0) (18.4)
- Income (expense) related
to previously owned
businesses (3.1) 8.4 (9.0) (7.7)
- Minority interest and
equity in affiliated
companies (3.0) (6.7) (15.3) (24.3)
- Income (expense) related
to the formation of a
joint venture 16.0 - 12.8 -
- Other Income (expense) (2.9) (0.2) 0.9 1.7
Preliminary Cash Flow
Data:
Dividends $(28.4) $(25.3) $(114.1) $(101.2)
Depreciation and
Amortization $65.2 $61.6 $257.2 $250.2
- Depreciation 47.5 44.2 183.4 179.4
- Amortization 17.7 17.4 73.8 70.8
December 31, December 31,
2008 2007
Preliminary Balance Sheet
Data:
Preproduction and Excess-
Over-Average Inventory $633.1 $515.4
Short-term Debt $37.7 $21.9
Current Maturities of
Long-term Debt and
Capital Lease
Obligations 121.3 162.9
Long-term Debt and
Capital Lease
Obligations 1,410.4 1,562.9
Total Debt[1] $1,569.4 $1,747.7
Cash and Cash
Equivalents 370.3 406.0
Net Debt[1] $1,199.1 $1,341.7
[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.
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