Goodrich Announces 39 Percent Increase in Earnings per Diluted Share from Continuing Operations for Third Quarter 2007, Increase

CHARLOTTE, N.C., Oct. 25 /PRNewswire-FirstCall/ -- - Third quarter 2007 income per diluted share from continuing operations of $1.10, a 39 percent increase over third quarter 2006 income per diluted share from continuing operations...


CHARLOTTE, N.C., Oct. 25 /PRNewswire-FirstCall/ -- - Third quarter 2007 income per diluted share from continuing operations of $1.10, a 39 percent increase over third quarter 2006 income per diluted share from continuing operations of $0.79. - Third quarter 2007 net income per diluted share of $0.99, including an after-tax loss of $0.11 per diluted share associated with the pending sale of Goodrich Aviation Technical Services, Inc. (ATS). - Third quarter 2007 sales of $1,602 million increased 15 percent over third quarter 2006 sales of $1,395 million. - Total segment operating income margin increased to 17.2 percent, from 14.5 percent in the third quarter 2006. - Full year 2007 outlook for income per diluted share from continuing operations expected to be $3.65 - $3.70, an increase from prior expectations of $3.50 - $3.60. - Full year 2007 outlook for sales adjusted to $6.4 - $6.5 billion, excluding sales associated with ATS. - Full year 2008 sales and earnings per diluted share expected to be $7.1 - $7.2 billion and $4.15 - $4.30 respectively. Net cash provided by operating activities, minus capital expenditures, expected to exceed 75 percent of net income in 2008.

Goodrich Corporation announced results today for the third quarter 2007, updated its full year 2007 outlook ranges and provided its outlook for full year 2008 results.

Commenting on the company's performance, Marshall Larsen , Chairman, President and Chief Executive Officer said, "We had another excellent quarter, marked by strong top line growth, increased margins, and solid execution by our businesses. We achieved double-digit sales growth in all three of our major market channels, which drove growth in income from continuing operations of almost 40 percent. We also announced the expected sale of our airframe heavy maintenance business."

Larsen continued, "As we look ahead to 2008, we expect our double-digit sales growth to continue and our earnings per diluted share from continuing operations to grow by 12 - 16 percent. We expect strong growth in commercial aftermarket sales and even stronger growth in commercial original equipment sales due to increasing production rates at Boeing and Airbus, including the new Airbus A380 and Boeing 787 Dreamliner airplanes. We expect that our defense and space products will continue to experience above market growth rates led by sales to the helicopter market and sales of intelligence, surveillance and reconnaissance systems."

Goodrich reported third quarter 2007 income from continuing operations of $140 million, or $1.10 per diluted share, on sales of $1,602 million. In the third quarter 2006, the company reported income from continuing operations of $100 million, or $0.79 per diluted share, on sales of $1,395 million. Third quarter 2007 net income per diluted share was $0.99. Third quarter 2007 sales increased 15 percent and income per diluted share from continuing operations increased 39 percent compared with the third quarter 2006. The company reported an effective tax rate of 28 percent for the third quarter of 2007, compared with an effective tax rate of 21 percent during the third quarter 2006. Financial results for all periods have been reclassified to reflect the expected sale of ATS, and its treatment as a discontinued operation.

The increased sales for the quarter reflect continued strong growth for commercial airplane original equipment, aftermarket and defense and space sales. For the third quarter 2007 compared with the third quarter 2006, sales changes by market channel were as follows:

Net income in the third quarter 2007, compared with the third quarter 2006, was positively affected by increased sales and improved operational performance in most business units. Several other factors affected net income, including:

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