Goodrich Corporation (ticker: GR, exchange: New York Stock Exchange (.N))
News Release -
26-Jul-2007
Goodrich Announces 53 Percent Earnings per Diluted Share Growth for Second Quarter 2007 and Increases Outlook for 2007 Sales and Net Income per Diluted Share
- Second quarter 2007 net income per diluted share of $0.98, a 53 percent
increase over second quarter 2006 net income per diluted share of $0.64.
- Second quarter 2007 sales of $1,622 million increased 9 percent over
second quarter 2006 sales of $1,483 million.
- Total segment operating income margin increased to 16.0%, from 14.0% in
the second quarter 2006.
- Full year 2007 outlook for net income increased to $3.50 - $3.60 per
diluted share, from $3.20 - $3.35 per diluted share.
- Full year 2007 outlook for sales increased to $6.5 - $6.6 billion, from
the previous range of $6.3 - $6.5 billion.
CHARLOTTE, N.C., July 26 /PRNewswire-FirstCall/ -- Goodrich Corporation
announced results today for the second quarter 2007, and updated its full year
2007 outlook ranges.
Commenting on the company's performance, Marshall Larsen, Chairman,
President and Chief Executive Officer said, "The second quarter 2007 was a
very solid quarter for Goodrich and our industry. The roll-out of the Boeing
787 Dreamliner was a significant event for the aerospace industry, and we are
proud of all the innovative Goodrich products that are on the airplane. We
had continued strong sales growth at 9 percent for the quarter, and our
segment operating income margins increased to 16 percent. Excellent top line
growth and operational execution has allowed us to raise our outlook for full
year 2007 sales and earnings per diluted share. We now expect sales to be in
the $6.5 - $6.6 billion range, an increase of about $100 million compared to
our prior outlook, and we expect earnings per diluted share to be in the range
of $3.50 - $3.60, an increase of $0.25 - $0.30 per diluted share compared to
our prior outlook. Segment operating income margins are now expected to be
about 15 percent for the full year 2007. We expect net cash provided by
operating activities minus capital expenditures to be between 60 - 75 percent
of net income, and we expect this metric to improve in 2008 and beyond."
"We are pleased that we signed another long-term landing gear supply
agreement with Boeing, solidifying the partnership between our companies that
has grown over many years. This agreement is a win-win for Goodrich and
Boeing, and encourages us to work together in ways that are expected to
benefit both companies," Larsen continued.
Goodrich reported second quarter 2007 net income of $125 million, or $0.98
per diluted share, on sales of $1,622 million. In the second quarter 2006,
the company reported net income of $81 million, or $0.64 per diluted share, on
sales of $1,483 million. Second quarter 2007 sales increased 9 percent and
net income per diluted share increased 53 percent when compared to the similar
results for the second quarter 2006.
The increased sales for the quarter reflect continued strong growth for
commercial airplane aftermarket and defense and space sales. Large commercial
airplane original equipment sales declined slightly in the second quarter 2007
compared to the second quarter 2006 due primarily to reduced Airbus A380
shipments in several businesses and the second quarter 2006 completion of the
Boeing 717 and the PW4000 nacelle contracts. Each of the company's three
segments experienced growth in sales for the second quarter 2007 compared to
the second quarter 2006. For the second quarter 2007 compared to the second
quarter 2006, sales changes by market channel were as follows:
- Large commercial airplane original equipment sales decreased by about
1 percent;
- Regional, business and general aviation airplane original equipment
sales increased 26 percent;
- Large commercial, regional and general aviation airplane aftermarket
sales increased by 14 percent, and;
- Defense and space sales of both original equipment and aftermarket
products and services increased by about 8 percent.
Net income in the second quarter 2007, compared to the second quarter
2006, was positively affected by the strong sales, favorable sales mix and
improved operational performance in most business units. During the second
quarter 2006, the company incurred $11 million in pre-tax expense related to a
pension curtailment and $5 million pre-tax expense related to transaction
costs for a long term debt exchange program. There were no similar expenses
during the second quarter 2007. For the second quarter 2007, the company
reported an effective tax rate of 29 percent, which brought the 2007 year-to-
date tax rate to 32 percent.
Net cash provided by operating activities during the second quarter 2007
was $75 million, an increase of $85 million from the same period in 2006. The
increase was primarily due to increased pre-tax income of $58 million and the
impact in the second quarter 2006 of the unwinding of the company's $97
million accounts receivable securitization program. The increase was
partially offset by higher second quarter 2007 pension contributions of $80
million. Capital expenditures were $59 million in the second quarter 2007
compared to capital expenditures in the second quarter 2006 of $52 million.
For the first six months of 2007, the company reported net income of $225
million, or $1.76 per diluted share, on sales of $3,211 million. During the
first six months of 2006, net income was $283 million, or $2.24 per diluted
share, on sales of $2,907 million. Included in the net income results for the
first six months of 2006 was $132 million, or $1.05 per diluted share, related
to tax settlements that were completed during the first quarter 2006. The
$304 million increase in sales is primarily attributable to double-digit
percentage growth in commercial aircraft aftermarket sales and continued
strong sales growth in the commercial aircraft original equipment and defense
and space market channels. The effective tax rate for the first six months of
2007 was 32 percent, which is consistent with the company's outlook of 31 - 33
percent for the full year 2007.
Net cash provided by operating activities during the first six months of
2007 was $198 million, an increase of $143 million from the same period in
2006. The increase was primarily due to increased pre-tax income of $111
million and the impact of the unwinding of the company's $97 million accounts
receivable securitization program in 2006. The increase was partially offset
by higher first half 2007 pension contributions of $83 million. Capital
expenditures were $96 million for the first six months of 2007 compared to
capital expenditures for the first six months of 2006 of $95 million.
Business Highlights
- Goodrich has signed a new long term agreement with the Boeing Company
under which Goodrich will continue as the exclusive supplier of
original equipment and aftermarket landing gear for the 737, 747, 767
and 777 Commercial Airplanes programs. The agreement extends supply
arrangements through 2012.
- Singapore Airlines chose Goodrich to provide asset management services,
including component and system maintenance and technical support, for
the airline's fleet of 19 A380 aircraft. The long-term agreement,
customized to meet Singapore Airlines' operational requirements, covers
Goodrich-produced technology ranging from primary and secondary flight
controls to sensors and evacuation systems. This is the first
selection of Goodrich's team for A380 support services.
- Greece's Hellenic Air Force selected Goodrich's DB-110 airborne
reconnaissance system for use on F-16 fighters. In the initial FMS
contract, Goodrich will provide two F-16 reconnaissance pods, a ground
exploitation system and aircraft integration.
2007 Outlook
The company's sales outlook is based on market assumptions for each of its
major market channels, which are included in the supplemental data portion of
this press release.
The company continues to expect that 2007 will be another year of strong
sales growth with improving segment operating income margins. Full year 2007
sales expectations have been increased to $6.5 - $6.6 billion, compared with
prior expectations of $6.3 - $6.5 billion. The outlook for 2007 net income
per diluted share has been increased to $3.50 - $3.60, compared with prior
expectations of $3.20 - $3.35, reflecting sales growth in all major market
channels and margin expansion driven by sales growth, favorable mix and
improved operating efficiencies.
The 2007 outlook assumes, among other factors, a full-year effective tax
rate of 31 - 33 percent, which may vary from quarter-to-quarter depending on
many factors, including settlements with state, federal and international tax
authorities.
To provide the most meaningful comparison between 2006 results and the
outlook for 2007 net income per diluted share, Goodrich believes that the 2006
net income per diluted share of $3.81 should be adjusted for the impact of the
$1.15 per diluted share related to tax settlements that were completed during
2006. Excluding these tax settlements, net income per diluted share for 2006
was $2.66, compared to expected results of $3.50 - $3.60 for 2007.
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 $270 - $290 million.
Of these capital expenditures, approximately 40 percent are expected to be
associated with investments in low cost country manufacturing, previously
announced MRO facility expansions and new facilities to support aftermarket
sales growth, and expenditures related to the company-wide implementation of a
new Enterprise Resource Planning (ERP) system.
The current sales, net income and net cash provided by operating
activities outlooks for 2007 do not include the impact of acquisitions or
divestitures or resolution of an A380 claim against Northrop Grumman.
----------------------
The supplemental discussion and tables that follow provide more detailed
information about the second quarter 2007 segment results and assumptions
underlying the 2007 outlook.
----------------------
Goodrich will hold a conference call on July 26, 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.
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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
Dassault Falcon 7X and the Lockheed Martin F-35 Lightning II and F-22 Raptor;
-- our ability to extend our commercial original equipment contracts
beyond the initial contract periods;
-- cancellation or delays of orders or contracts by customers or with
suppliers;
-- 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 resolution of contractual disputes with Northrop Grumman related to
the purchase of aeronautical systems;
-- the possibility of restructuring and consolidation actions beyond those
previously announced by us;
-- 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 from third parties 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, or that
Coltec's dividend of its aerospace business to us prior to the EnPro spin-off
was made at a time when Coltec was insolvent or caused Coltec to become
insolvent;
-- the effect of changes in accounting policies;
-- 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, deflation,
recession and other external factors over which we have no control; and
-- the outcome of contingencies including completion of acquisitions,
divestitures, tax audits, litigation and environmental remediation efforts.
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 June 30, 2007 Compared with Quarter Ended June 30, 2006
Quarter Ended June 30,
% % of Sales
2007 2006 Change 2007 2006
(Dollars in millions)
NET CUSTOMER SALES
Actuation and Landing Systems $ 635.3 $ 561.9 13%
Nacelles and Interior Systems $ 533.6 $ 514.9 4%
Electronic Systems $ 453.5 $ 406.4 12%
Total Sales $1,622.4 $1,483.2 9%
SEGMENT OPERATING INCOME
Actuation and Landing Systems $61.0 $39.3 55% 9.6% 7.0%
Nacelles and Interior Systems $135.3 $114.8 18% 25.4% 22.3%
Electronic Systems $62.6 $54.1 16% 13.8% 13.3%
Segment Operating Income $258.9 $208.2 24% 16.0% 14.0%
Actuation and Landing Systems: Actuation and Landing Systems segment sales
of $635 million for the quarter ended June 30, 2007 increased $73 million, or
13 percent, from $562 million for the quarter ended June 30, 2006. The
increase was primarily due to the following:
-- Higher large commercial airplane aftermarket sales of approximately
$22 million, primarily in our landing gear, aircraft wheels and brakes and
actuation business units;
-- Higher large commercial airplane OE sales of approximately $21 million,
primarily in our landing gear business unit;
-- Higher regional and business OE and aftermarket sales of approximately
$10 million, primarily in our aircraft wheels and brakes and landing gear
business units;
-- Higher military OE and aftermarket sales of approximately $6 million,
primarily in our actuation and aircraft wheels and brakes business units; and
-- Higher airframe heavy maintenance sales of approximately $5 million.
Actuation and Landing Systems segment operating income of $61 million for
the quarter ended June 30, 2007 increased $22 million, or 55 percent, from $39
million for the quarter ended June 30, 2006. This increase in operating income
was primarily due to the following:
-- Higher sales volume and favorable product mix across all business
units, which resulted in higher income of approximately $25 million;
-- Improved brake-life performance in the aircraft wheels and brakes
business unit and higher pricing in our landing gear, aircraft wheels and
brakes and actuation business units, offset by increased operating costs,
primarily in our landing gear business unit; and
-- Unfavorable foreign exchange translation impact of approximately
$7 million.
Nacelles and Interior Systems: Nacelles and Interior Systems segment sales
of $534 million in the quarter ended June 30, 2007 increased $19 million, or 4
percent, from $515 million in the quarter ended June 30, 2006. The increase
was primarily due to the following:
-- Higher large commercial airplane aftermarket sales, including spare
parts and MRO volume of approximately $39 million, primarily in our
aerostructures and interiors business units; and
-- Higher regional, business, and general aviation aircraft OE sales
primarily from our aerostructures business unit of approximately $11 million.
Partially offsetting these higher sales were lower commercial OE sales of
approximately $37 million, related to the completion of certain customer
contracts in 2006.
Nacelles and Interior Systems segment operating income of $135 million in
the quarter ended June 30, 2007 increased $20 million, or 18 percent, from
$115 million in the quarter ended June 30, 2006. The increased segment
operating income was due to higher sales volume, primarily in our
aerostructures and interiors business units, which resulted in higher income
of approximately $27 million. Favorable changes in estimates for certain
long-term contracts at our aerostructures business unit during the second
quarter 2007 resulted in an increase to segment operating income of
approximately $10 million. These increases in segment operating income were
partially offset by higher research and development and administrative costs,
primarily in our aerostructures business unit.
Electronic Systems: Electronic Systems segment sales of $453 million in
the quarter ended June 30, 2007 increased $47 million, or 12 percent, from
$406 million in the quarter ended June 30, 2006. The increase was primarily
due to:
-- Higher defense and space OE and aftermarket sales of approximately $20
million across all of our business units;
-- Higher regional and general aviation airplane OE and aftermarket sales
of approximately $15 million in our sensor and integrated systems and engine
control and electrical power business units;
-- Higher commercial OE and aftermarket sales of approximately $7 million
in our sensors and integrated systems business unit; and
-- Higher sales of products to the helicopter market of approximately $5
million in our sensors and integrated systems and engine controls and
electrical power business units.
Electronic Systems segment operating income of $63 million in the quarter
ended June 30, 2007 increased $9 million, or 16 percent, from $54 million in
the quarter ended June 30, 2006. The increased segment operating income was
primarily a result of higher sales volume, which resulted in operating income
of approximately $19 million. This increase in segment operating income was
offset by higher costs of approximately $8 million, primarily in our sensors
and integrated systems and engine control and electrical power business units
and unfavorable foreign currency translation of approximately $4 million in
our engine controls and electrical power business.
2007 Outlook - Market Channel Assumptions
Goodrich's 2007 outlook is based on certain market assumptions, including
the following:
-- Goodrich expects deliveries of Airbus and Boeing large commercial
aircraft to increase by about 8 - 10 percent in 2007 compared to 2006.
Goodrich sales of large commercial aircraft original equipment products are
projected to grow by about 10 percent in 2007 compared to 2006.
-- Capacity in the global airline system, as measured by available seat
miles (ASMs), is expected to grow at about 4 - 5 percent in 2007. Goodrich
sales to airlines and package carriers for large commercial and regional
aircraft aftermarket parts and services are expected to grow by 13 - 15
percent in 2007 compared to 2006.
-- Total regional and business aircraft production is expected to increase
slightly in 2007 compared to 2006. Deliveries to Embraer in support of its
EMBRAER 190 aircraft, which includes significant Goodrich content, are
expected to enable Goodrich to increase sales in this market channel by about
15 percent in 2007 compared to 2006.
-- Goodrich defense and space sales (original equipment and aftermarket)
are expected to grow by about 10 percent in 2007 compared to 2006. Growth is
expected in all three segments.
PRELIMINARY
GOODRICH CORPORATION
CONDENSED CONSOLIDATED STATEMENT OF INCOME (UNAUDITED)
(DOLLARS IN MILLIONS EXCEPT PER SHARE AMOUNTS)
Three Months Six Months
Ended Ended
June 30, June 30,
2007 2006 2007 2006
Sales $1,622.4 $1,483.2 $3,210.9 $2,907.0
Operating costs and expenses:
Cost of sales 1,139.1 1,088.0 2,272.8 2,131.9
Selling and administrative costs 261.1 227.3 516.9 464.5
1,400.2 1,315.3 2,789.7 2,596.4
Operating Income 222.2 167.9 421.2 310.6
Interest expense (30.8) (31.3) (62.4) (63.3)
Interest income 1.5 1.1 3.3 2.2
Other income (expense) - net (17.7) (20.9) (33.3) (31.5)
Income from continuing operations
before income taxes 175.2 116.8 328.8 218.0
Income tax (expense) benefit (50.1) (35.7) (103.9) 63.4
Income From Continuing Operations 125.1 81.1 224.9 281.4
Income (loss) from discontinued
operations (0.3) (0.1) (0.3) 0.5
Cumulative effect of change in
accounting - - - 0.6
Net Income $124.8 $81.0 $224.6 $282.5
Basic Earnings per Share:
Continuing operations $1.00 $0.65 $1.79 $2.27
Discontinued operations - - - -
Cumulative effect of change in
accounting - - - 0.01
Net Income $1.00 $0.65 $1.79 $2.28
Diluted Earnings per Share:
Continuing operations $0.98 $0.64 $1.76 $2.23
Discontinued operations - - - -
Cumulative effect of change in
accounting - - - 0.01
Net Income $0.98 $0.64 $1.76 $2.24
Dividends Declared per Common
Share $0.20 $0.20 $0.40 $0.40
Weighted - Average Number of
Shares Outstanding (in millions)
Basic 125.3 124.5 125.3 124.0
Diluted 127.9 126.4 127.8 126.0
PRELIMINARY
GOODRICH CORPORATION
SEGMENT REPORTING (UNAUDITED)
(DOLLARS IN MILLIONS)
Three Months Six Months
Ended Ended
June 30, June 30,
2007 2006 2007 2006
Sales:
Actuation and Landing Systems $635.3 $561.9 $1,244.5 $1,100.3
Nacelles and Interior Systems 533.6 514.9 1,080.5 1,008.7
Electronic Systems 453.5 406.4 885.9 798.0
Total Sales $1,622.4 $1,483.2 $3,210.9 $2,907.0
Operating Income:
Actuation and Landing Systems $61.0 $39.3 $110.9 $62.6
Nacelles and Interior Systems 135.3 114.8 261.6 219.6
Electronic Systems 62.6 54.1 117.4 97.0
Total Segment Operating Income (1) 258.9 208.2 489.9 379.2
Corporate General and
Administrative Costs (32.7) (23.9) (61.4) (51.1)
ERP Implementation Costs (4.0) (5.5) (7.3) (6.6)
Pension Curtailment Expenses - (10.9) - (10.9)
Total Operating Income $222.2 $167.9 $421.2 $310.6
Segment Operating Income as a
Percent of Sales:
Actuation and Landing Systems 9.6% 7.0% 8.9% 5.7%
Nacelles and Interior Systems 25.4% 22.3% 24.2% 21.8%
Electronic Systems 13.8% 13.3% 13.3% 12.2%
Total Segment Operating Income as
a Percent of Sales 16.0% 14.0% 15.3% 13.0%
(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 and pension curtailment
expenses in 2006, 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
CONDENSED CONSOLIDATED BALANCE SHEET (UNAUDITED)
(DOLLARS IN MILLIONS EXCEPT SHARE AMOUNTS)
June 30, December 31,
2007 2006
Current Assets
Cash and cash equivalents $213.4 $201.3
Accounts and notes receivable - net 1,039.9 912.4
Inventories - net 1,749.6 1,551.8
Deferred income taxes 232.8 250.3
Prepaid expenses and other assets 83.0 91.7
Total Current Assets 3,318.7 3,007.5
Property, plant and equipment - net 1,351.5 1,327.7
Prepaid pension 2.6 2.3
Goodwill 1,350.7 1,341.3
Identifiable intangible assets - net 466.9 472.0
Deferred income taxes 43.4 35.5
Other assets 736.8 714.9
Total Assets $7,270.6 $6,901.2
Current Liabilities
Short-term debt $10.4 $11.8
Accounts payable 661.1 584.6
Accrued expenses 867.6 819.0
Income taxes payable 102.6 212.5
Deferred income taxes 3.3 3.3
Current maturities of long-term debt
and capital lease obligations 1.1 1.4
Total Current Liabilities 1,646.1 1,632.6
Long-term debt and capital lease
obligations 1,720.5 1,721.7
Pension obligations 535.0 612.1
Postretirement benefits other than
pensions 371.2 379.1
Long-term income taxes payable 148.5 -
Deferred income taxes 60.5 57.2
Other non-current liabilities 533.0 521.8
Commitments and contingent
liabilities - -
Shareholders' Equity
Common stock - $5 par value
Authorized 200,000,000 shares; issued
141,455,931 shares at June 30, 2007
and 139,041,884 shares at December 31, 2006
(excluding 14,000,000 shares held by
a wholly owned subsidiary) 707.3 695.2
Additional paid-in capital 1,401.6 1,313.3
Income retained in the business 850.6 666.5
Accumulated other comprehensive
income (loss) (151.8) (260.8)
Common stock held in treasury, at
cost (16,211,703 shares at
June 30, 2007 and 14,090,913 shares
at December 31, 2006) (551.9) (437.5)
Total Shareholders' Equity 2,255.8 1,976.7
Total Liabilities And Shareholders'
Equity $7,270.6 $6,901.2
PRELIMINARY
GOODRICH CORPORATION
CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS (UNAUDITED)
(DOLLARS IN MILLIONS)
Three Months Six Months
Ended Ended
June 30, June 30,
2007 2006 2007 2006
Operating Activities
Net income $124.8 $81.0 $224.6 $282.5
Adjustments to reconcile net income
to net cash provided by operating
activities:
(Income) loss from discontinued
operations 0.3 0.1 0.3 (0.5)
Cumulative effect of change in
accounting - - - (0.6)
Restructuring and consolidation:
Expenses 0.6 2.1 0.8 3.6
Payments (1.5) (1.8) (2.1) (3.6)
Pension and postretirement benefits:
Expenses 29.7 40.3 61.3 73.9
Contributions and benefit payments (96.0) (17.0) (114.7) (32.3)
Asset impairments - - - 0.9
Depreciation and amortization 63.2 61.3 124.6 117.6
Excess tax benefits related to share-
based payment arrangements (5.6) (2.8) (9.6) (4.0)
Share-based compensation expense 16.0 6.7 32.2 28.6
Loss on exchange or extinguishment
of debt - 1.0 - 1.0
Deferred income taxes (11.3) (15.2) (20.3) (19.4)
Change in assets and liabilities,
net of effects of acquisitions and
divestitures:
Receivables (19.5) (37.7) (113.0) (134.3)
Change in receivables sold, net - (97.1) - (97.1)
Inventories, net of pre-production
and excess-over-average (46.9) (46.1) (104.5) (100.3)
Pre-production and excess-over-
average inventories (31.5) (24.1) (64.3) (52.5)
Other current assets 4.9 2.8 9.1 11.9
Accounts payable (15.6) 1.9 66.2 64.7
Accrued expenses 31.7 (3.4) 32.0 (21.1)
Income taxes payable 24.8 49.4 76.2 (38.3)
Other non-current assets and
liabilities 6.5 (12.1) (1.1) (25.8)
Net Cash Provided By (Used In)
Operating Activities 74.6 (10.7) 197.7 54.9
Investing Activities
Purchases of property, plant and
equipment (59.3) (51.9) (96.2) (95.1)
Proceeds from sale of property, plant
and equipment 0.6 1.3 0.7 1.4
Net Cash Used In Investing Activities (58.7) (50.6) (95.5) (93.7)
Financing Activities
Increase (decrease) in short-term
debt, net 10.0 1.9 (1.8) 8.0
Loss on exchange or extinguishment of
debt - (3.5) - (3.5)
Proceeds from issuance of long-term
debt - 512.8 - 512.8
Repayment of long-term debt and
capital lease obligations (0.3) (533.6) (0.7) (534.0)
Proceeds from issuance of common
stock 31.3 27.6 68.1 46.1
Purchases of treasury stock (55.5) (1.5) (113.3) (1.9)
Dividends (25.4) (25.2) (50.5) (49.8)
Excess tax benefits related to share-
based payment arrangements 5.6 2.8 9.6 4.0
Distributions to minority interest
holders (0.8) (0.9) (2.5) (1.9)
Net Cash Used In Financing Activities (35.1) (19.6) (91.1) (20.2)
Net cash (used in) provided by
discontinued operations (0.4) 2.1 (0.7) 11.2
Effect of exchange rate changes on
cash and cash equivalents 1.1 4.2 1.7 4.9
Net increase in cash and cash
equivalents (18.5) (74.6) 12.1 (42.9)
Cash and cash equivalents at
beginning of period 231.9 283.0 201.3 251.3
Cash and cash equivalents at end of
period $213.4 $208.4 $213.4 $208.4
PRELIMINARY
GOODRICH CORPORATION
SUPPLEMENTARY FINANCIAL INFORMATION (UNAUDITED)
(DOLLARS IN MILLIONS)
Three Months Six Months
Ended Ended
June 30, June 30,
Preliminary Income Statement Data: 2007 2006 2007 2006
Net Interest Expense $(29.3) $(30.2) $(59.1) $(61.1)
Other Income (Expense), Net: $(17.7) $(20.9) $(33.3) $(31.5)
- Divested Business Retiree
Health Care (4.4) (4.2) (9.2) (9.0)
- Loss on Extinguishment or
Exchange of Debt - (4.8) - (4.8)
- Income (Expense) related to
previously owned businesses (5.6) (6.6) (11.3) (8.0)
- Minority interest and equity in
affiliated companies (7.2) (3.6) (12.8) (7.4)
- Other Income (Expense) (0.5) (1.7) - (2.3)
Preliminary Cash Flow Data:
Dividends $(25.4) $(25.2) $(50.5) $(49.8)
Depreciation and Amortization $63.2 $61.3 $124.6 $117.6
- Depreciation 46.6 42.3 90.7 82.1
- Amortization 16.6 19.0 33.9 35.5
June 30, December 31,
Preliminary Balance Sheet Data: 2007 2006
Preproduction and Excess-Over-Average
Inventory $463.5 $399.0
Short-term Debt $10.4 $11.8
Current Maturities of Long-term
Debt and Capital Lease Obligations 1.1 1.4
Long-term Debt and Capital Lease
Obligations 1,720.5 1,721.7
Total Debt[1] $1,732.0 $1,734.9
Cash and Cash Equivalents 213.4 201.3
Net Debt[1] $1,518.6 $1,533.6
[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.
SOURCE Goodrich Corporation
CONTACT: Media, Gail Warner, +1-704-423-7048, or Lisa Bottle,
+1-704-423-7060, or Investor Relations, Paul Gifford, +1-704-423-5517
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Goodrich Corporation
