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
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:
Net cash provided by operating activities during the third quarter 2007
For the first nine months of 2007, the company reported income from
continuing operations of
Net cash provided by operating activities during the first nine months of
The company's 2007 sales outlook is based on market assumptions for each of its major market channels. The current market assumptions for the full year 2007, compared with the full year 2006, include:
Full year 2007 sales expectations have been adjusted to
The 2007 outlook assumes a full year effective tax rate of approximately 31 - 32 percent. The effective tax rate for the first nine months was 30 percent and the company expects an effective tax rate in the fourth quarter of 2007 of 34 - 36 percent.
Goodrich continues to expect net cash provided by operating activities,
minus capital expenditures, to be in the range of 60 - 75 percent of net
income in 2007. This outlook reflects a continuation of cash expenditures for
investments in the Boeing 787 Dreamliner and the Airbus A350 XWB and capital
expenditures for facility expansions to support increased aftermarket demand,
low cost country manufacturing and productivity initiatives that are expected
to enhance margins over the near and long term. The company continues to
expect capital expenditures for 2007 to be in a range of
The current sales, net income and net cash provided by operating activities outlooks for 2007 do not include the impact of acquisitions or divestitures, other than the completion of the recently announced sale of ATS, or resolution of an A380 claim against Northrop Grumman.
The company's 2008 sales outlook is based on market assumptions for each of its major market channels. The current market assumptions for the full year 2008, compared with the full year 2007 outlook, include:
The company's initial full year 2008 sales expectations are for sales of
The 2008 outlook assumes, among other factors, a full-year effective tax rate of 33 - 35 percent, which includes the benefit of extension of the U.S. research tax credit. This compares with an expected effective tax rate of approximately 31 - 32 percent for 2007.
For 2008, Goodrich expects net cash provided by operating activities,
minus capital expenditures, to exceed 75 percent of net income. This outlook
reflects a continuation of working capital investments to support the Boeing
787 Dreamliner and Airbus A380 programs, cash expenditures for investments in
the Airbus A350 XWB and capital expenditures for 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 2008 to be in a range of
The current sales, net income and net cash provided by operating activities outlooks for 2008 do not include the impact of acquisitions or divestitures, other than the completion of the previously announced sale of ATS, or resolution of an A380 claim against Northrop Grumman.
The supplemental discussion and tables that follow provide more detailed information about the third quarter 2007 segment results.
Goodrich will hold a conference call on October 25, 2007 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 913-981-5592.
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:
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.
Actuation and Landing Systems: Actuation and Landing Systems segment sales
Actuation and Landing Systems segment operating income of
Nacelles and Interior Systems: Nacelles and Interior Systems segment sales
Nacelles and Interior Systems segment operating income of
Electronic Systems: Electronic Systems segment sales of
Electronic Systems segment operating income of
SOURCE Goodrich Corporation