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

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,