Oct. 22, 2009 (PR Newswire) -- CHARLOTTE, N.C., Oct. 22, 2009 /PRNewswire-FirstCall/ --

--  Third quarter 2009 net income per diluted share of $1.14 decreased 14
percent compared to third quarter 2008 net income per diluted share of
$1.32.
--  Third quarter 2009 sales of $1,648 million decreased 7 percent compared
to third quarter 2008 sales of $1,772 million.
--  Third quarter 2009 total segment operating income margin was 15.8
percent, compared to 18.2 percent in the third quarter 2008.
--  Full year 2009 net income per diluted share expectations are unchanged
at $4.60 - $4.75.
--  Full year 2009 sales are expected to be approximately $6.7 billion,
compared to previous expectations of approximately $6.9 billion.  Full
year 2009 expectations for net cash provided by operating activities,
minus capital expenditures, are unchanged at greater than 75 percent of
2009 net income from continuing operations.

--  Full year 2010 outlook for sales of approximately $7.0 billion and net
income per diluted share in the $4.15 - $4.40 range, including higher
pension expense of $0.14 per diluted share.  Net cash provided by
operating activities, minus capital expenditures, is expected to be
approximately 85 percent of net income in 2010.

Goodrich Corporation (NYSE: GR) announced results today for the third quarter 2009, adjusted its outlook for the full year 2009 and announced its outlook 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 third quarter earnings were characterized by solid performance in our military businesses and continued success on our cost containment efforts. The environment for commercial aerospace, however, remains challenging. While advance bookings for aftermarket products and services remain weak, there are some hopeful signs of recovery in the airline system. Freight traffic continues to improve from levels seen earlier this year and airline ridership and load factors are improving. Although airline capacity has yet to turn the corner, we believe that 2010 will be a year of modest recovery which should allow us to grow our commercial aftermarket sales. We expect aftermarket sales to continue to be weak for the first few months of 2010, with the recovery beginning towards the middle of the year.

"In our original equipment market channel, Boeing and Airbus appear to be on track to deliver a total of about 960 airplanes in 2009. While both manufacturers are striving to maintain stable production for their narrowbody airplanes through at least 2010, it is still unclear whether or not they will be successful. Our outlook for 2010 assumes they will successfully maintain current narrowbody production rates, but we are prepared to take quick action should either manufacturer announce a reduction in production rates.

"Our defense and space sales growth has been robust during the first nine months of 2009, and we expect 2009 sales for our defense and space products and services to grow by about 11 percent, compared to 2008. We expect continued growth, although at slightly lower levels, in 2010, compared to 2009."

Third Quarter 2009 Results

Goodrich reported third quarter 2009 net income of $145 million, or $1.14 per diluted share, on sales of $1,648 million. In the third quarter 2008, the company reported net income of $168 million, or $1.32 per diluted share, on sales of $1,772 million.

The change in net income per diluted share is primarily attributable to the impact on income of the lower sales, which were partially offset by successful cost containment initiatives, and several other factors as noted below:

--  The third quarter 2009 results included pre-tax expense of $45 million,
$28 million after-tax or $0.22 per diluted share, related to worldwide
pension plan expense, compared to pre-tax pension expense of $19
million, $12 million after-tax or $0.09 per diluted share, recorded
during the third quarter 2008.
--  The third quarter 2009 results included pre-tax income of $13 million,
$8 million after-tax or $0.06 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
pre-tax income of $39 million, $24 million after-tax or $0.19 per
diluted share, recorded during the third quarter 2008.  These revisions
were primarily related to favorable cost and operational performance,
changes in volume expectations and to some extent, sales pricing
improvements on follow-on contracts.
--  The company reported an effective tax rate of 24 percent for the third
quarter of 2009, compared to an effective tax rate of 35 percent during
the third quarter 2008.

--  The third quarter 2009 results included after-tax income from
discontinued operations totaling $3 million, or $0.02 per diluted share.

The $124 million decrease in sales is attributable to sales reductions of approximately $33 million related to foreign currency exchange rate impacts, approximately $34 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 major market channels.

For the third quarter 2009 compared with the third quarter 2008, Goodrich sales changes by market channel were as follows:

--  Large commercial airplane original equipment sales increased by 9
percent,
--  Regional, business and general aviation airplane original equipment
sales decreased by 45 percent,
--  Large commercial, regional, business and general aviation airplane
aftermarket sales decreased by 19 percent, and

--  Defense and space sales of both original equipment and aftermarket
products and services increased by 9 percent.

Net cash provided by operating activities during the third quarter 2009 was $253 million, an increase of $111 million from the same period in 2008. The increase was primarily attributable to reduced pension contributions and higher cash received in advance of future services, partially offset by lower income from continuing operations, in the third quarter 2009, compared to the third quarter 2008. Capital expenditures were $42 million in the third quarter 2009 compared with capital expenditures of $73 million in the third quarter 2008. During the third quarter 2009, cash flow provided by operating activities, minus capital expenditures, was 150 percent of income from continuing operations.

Year-to-date 2009 Results

For the first nine months of 2009, the company reported net income of $492 million, or $3.88 per diluted share, on sales of $5,043 million. During the first nine months of 2008, net income was $513 million, or $4.01 per diluted share, on sales of $5,367 million.

The $324 million decrease in sales is attributable to sales reductions of approximately $172 million related to foreign currency exchange rate impacts, approximately $90 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 major market channels.

The change in net income per diluted share is primarily attributable to the impact on income of the lower sales, which were partially offset by successful cost containment initiatives, and several other factors as noted below:

--  The first nine months of 2009 results included pre-tax expense of $133
million, $83 million after-tax or $0.66 per diluted share, related to
worldwide pension plan expense, compared to pre-tax pension expense of
$57 million, $36 million after-tax or $0.28 per diluted share, recorded
during the first nine months of 2008.
--  The first nine months of 2009 results included after-tax income from
discontinued operations totaling $35 million, or $0.27 per diluted
share, primarily associated with resolution of a past environmental
claim.
--  The first nine months of 2009 results included pre-tax income of $26
million, $16 million after-tax or $0.13 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 pre-tax income of $87 million, $54 million after-tax or $0.42 per
diluted share, recorded during the first nine months of 2008.  These
revisions were primarily related to favorable cost and operational
performance, changes in volume expectations and to some extent, sales
pricing improvements on follow-on contracts.

--  The company reported an effective tax rate of 26 percent for the first
nine months of 2009, compared with an effective tax rate of 32 percent
during the first nine months of 2008.

Net cash provided by operating activities during the first nine months of 2009 was $427 million, a decrease of $34 million from the same period in 2008. The decrease was primarily attributable to an increase in worldwide pension plan contributions, partially offset by a decrease in net tax payments, during the first nine months of 2009, compared to the first nine months of 2008. Capital expenditures were $115 million for the first nine months of 2009 compared to capital expenditures for the first nine months of 2008 of $190 million.

Business Highlights

--  On October 13, 2009 the Goodrich Board of Directors declared an
increased quarterly dividend of $0.27 per share of common stock, payable
January 4, 2010 to shareholders of record on December 1, 2009.  This
dividend declaration represents an 8 percent increase over the previous
quarterly dividend of $0.25 per share of common stock.
--  On August 31, 2009 Goodrich was awarded a contract by the Defense
Logistics Agency - Ogden to provide new carbon brakes and boltless
wheels for the U.S. Air Force's fleet of C-130 transport aircraft. The
selection is expected to generate up to $400 million in revenue over the
life of the program, including original equipment and aftermarket sales
for U.S. and international customers.
--  On August 12, 2009 Goodrich and Xi'an Aircraft International Corporation
(XAIC) announced that they have signed agreements to form two joint
venture companies to support landing gear and engine nacelle components
manufacturing focused on the fast-growing Chinese aerospace market. The
new companies are expected to compete for market positions on the COMAC
C919 single aisle Chinese commercial aircraft currently under
development, and also manufacture various landing gear and nacelle
components and subassemblies for other aircraft.

--  On July 29, 2009 the U.S. Air Force authorized continued development of
the Operationally Responsive Space (ORS) program that features
Goodrich's satellite. This build authorization follows a successful
critical design review that Goodrich completed eight months from the
beginning of the contract.  Satellite delivery and launch are on
schedule to occur in late 2010.

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 slightly,
--  Regional, business and general aviation airplane original equipment
sales are expected to decrease by almost 30 percent.  Regional airplane
original equipment sales are expected to decrease by about 20 percent,
and business and general aviation original equipment sales are expected
to decrease by more than 40 percent,
--  Large commercial, regional, business and general aviation airplane
aftermarket sales are expected to decrease by 13 - 15 percent, and

--  Defense and space sales of both original equipment and aftermarket
products and services are expected to increase by about 11 - 12 percent.

The company expects full year 2009 sales to be about $6.7 billion, compared to the prior outlook of $6.9 billion, representing a sales decrease of about 5 percent compared to 2008. The 2009 sales expectations, compared to 2008, include unfavorable sales impacts of approximately $154 million, or 2 percent of sales, related to foreign currency exchange rate fluctuations and lower sales of approximately $125 million related to the formation of the Rolls-Royce engine controls joint venture.

The company continues to expect that 2009 net income per diluted share will be in a range of $4.60 - $4.75. The 2009 outlook includes, among other factors:

--  Higher pre-tax pension expense of $102 million, or $0.51 per diluted
share, compared to 2008,
--  After-tax income from discontinued operations totaling $35 million, or
$0.27 per diluted share, primarily associated with resolution of a past
environmental claim,
--  Restructuring charges totaling about $0.10 - $0.15 per diluted share.
About $0.08 per diluted share of the expected charges were incurred
during the first nine months of 2009, and

--  A full year 2009 effective tax rate of 26 - 27 percent.

For 2009, Goodrich continues to expect net cash provided by operating activities, minus capital expenditures, to exceed 75 percent of net income from continuing operations. 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 now expects capital expenditures for 2009 to be in a range of $190 - $200 million, compared to the prior expectations of $200 - $220 million.

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 outlook, include:

--  Large commercial airplane original equipment sales are expected to
increase by about 8 - 10 percent.  This outlook assumes that current
narrowbody production rates are maintained 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 is not expected to have any
impact on 2010 sales,
--  Regional, business and general aviation airplane original equipment
sales are expected to decrease by approximately 8 - 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.