Herald Staff and
ASSOCIATED PRESS
RALEIGH, N.C. — Goodrich Corp. said Tuesday it lost $54 million, or 53 cents a share, during a fourth quarter due to the slump in airline orders.
The aerospace parts maker, which has an aircraft maintenance facility in Everett, also warned that its earnings and revenue for 2002 would fall short of expectations.
With airlines cutting their fleets and Boeing and Airbus announcing that fewer new airliners will be built this year, Goodrich expects a 10 percent drop in parts and service sales, the company said. Revenues will be about 5 percent to 10 percent lower than 2001, the company said.
Goodrich’s fourth-quarter loss compared with a $78.2 million profit, or 75 cents a share, for the same period of 2000.
The loss includes an after-tax charge of $124 million for restructuring the Charlotte-based company’s aerospace businesses and a $3 million loss from discontinued operations. Goodrich announced during the quarter that it would close 16 plants and cut 2,500 jobs as the commercial aviation market struggles.
Excluding one-time items, earnings from ongoing operations were $73 million, or 69 cents a share. That was a penny ahead of the expectations of analysts surveyed by Thomson Financial/First Call, who had forecast profits of 68 cents a share.
Chairman and chief executive David Burner said parts and service sales to airlines were down in the just-completed quarter, but stronger than expected and offset by recently acquired businesses and strong military sales.
Goodrich is supplying the landing gear, ejection seats, titanium engine bay doors, sensors and fuel delivery technology to defense contractor Lockheed Martin for the F-22 Raptor fighter jet, which is in early production.
The Charlotte-based company also announced during the fourth quarter that it will supply the landing gear and lead the landing system integration effort for the Pentagon’s Joint Strike Fighter, also being developed by Lockheed Martin.
For all of 2001, net income was $289 million, or $2.76 a share, on $4.18 billion in revenue. In 2000, Goodrich earned $325.9 million, or $3.04 a share, on $3.70 billion in revenue.
Goodrich said it expects its earnings from continuing operations to be in the range of $2.45 to $2.55 a share for the year. Analysts surveyed by Thomson Financial/First Call had pegged 2002 earnings at $2.70 per share and revenues at $4.05 billion.
The company said in early September it would focus on aerospace products and spin off its engineered industrial products division — which makes industrial sealing systems, air compressors and large diesel engines and employs 5,000 — into a new company.
The spinoff to shareholders, expected to be completed by midyear, will assume all the division’s assets and liabilities, including asbestos-related liabilities and related insurance costs. The new company also will take with it about $190 million in debt now on Goodrich’s books.
The new company will be called EnPro Industries Inc., Goodrich said.
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