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For the third quarter, the Charlotte, North Carolina-based company's net income attributable to Goodrich declined to $145.4 million or $1.14 per share from $168.0 million or $1.32 per share in the year-ago quarter.
Income from continuing operations for the quarter decreased to $144.9 million or $1.12 per share, from $171.8 million or $1.32 per share in the same quarter last year.
Results for the third quarter include $28 million or $0.22 per share, related to worldwide pension plan expense. Results also include $8 million or $0.06 per share, related to the revision of estimates for certain long-term contracts primarily in its aerostructures and aircraft wheels and brakes businesses, and income from discontinued operations of $3 million or $0.02 per share.
On average, 21 analysts polled by Thomson Reuters expected the company to earn $1.03 per share for the quarter. Analysts' estimates typically exclude one-time charges and gains.
In the preceding second quarter, Goodrich reported a net income of $177.1 million or $1.40 per share, down from $186.6 million or $1.45 per share in the same quarter last year. Income from continuing operations for the quarter was $145.9 million or $1.15 per share, lower than $183.6 million or $1.43 per share last year. Analysts expected earnings of $1.11 a share.
Sales for the recent third quarter decreased significantly to $1.65 billion from $1.77 billion in the year-earlier quarter. Analysts expected the company to report revenue of $1.70 billion for the quarter.
The decrease was attributed to sales reductions of nearly $33 million related to foreign currency exchange rate impacts, around $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 preceding second quarter, sales declined 8% to $1.69 billion from $1.85 billion in the year-earlier period.
Segment-wise, Actuation and Landing Systems segment generated third-quarter net customer sales of $629.3 million, down 5% from last year. Segment operating income dropped 25% year-over-year to $59.7 million. Net customer sales at Nacelles and Interior Systems division were $561.8 million, down 6% from the year-earlier quarter, while operating income declined 19% to $130.8 million from last year. Electronic Systems segment's net customer sales and operating income dropped 11% to $456.6 million and $70.4 million, respectively from the previous year period.
Goodrich's total segment operating income margin for the quarter under review contracted to 15.8% from 18.2% in the year-earlier quarter. Operating income dropped to $228.9 million from $296.8 million in the corresoponding period last year.
Marshall Larsen, Chairman, President and Chief Executive Officer Goodrich said, "Our third quarter earnings were characterized by solid performance in our military businesses and continued success on our cost containment efforts."
During the quarter, 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 company expects 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.
For the nine-month period, net income attributable to Goodrich decreased to $492.3 million or $3.88 per share from $512.5 million or $4.01 per share in the same period last year. Income from continuing operations for the period declined to $467.8 million or $3.61 per share from $518.8 million or $3.95 per share in the same period last year.
Sales for nine months decreased to $5.04 billion from $5.37 billion last year.
Amongst others in the industry, Hartford, Connecticut-based United Technologies Corp. (UTX | Quote | Chart | News | PowerRating), on October 20, reported a 17% year-over-year decline in profit for the third quarter, hurt by drop in operating margins at five of its six business segments as well as an 11% decline in quarterly revenues.
For fiscal year 2009, Goodrich now expects sales to be about $6.7 billion, compared to earlier issued forecast of $6.9 billion, representing a decrease of about 5% compared to 2008.
The current expectations include unfavorable sales impacts of around $154 million or 2% of sales, related to foreign currency exchange rate fluctuations and lower sales of about $125 million related to the formation of the Rolls-Royce engine controls joint venture.
The company continues to expect 2009 net earnings to range between $4.60 and $4.75 per share, including restructuring charges totaling about $0.10 - $0.15 per share. Street analysts currently expect the company to report earnings of $4.58 per share on revenues of $6.82 billion for 2009.
In addition, Goodrich now expects capital expenditures for 2009 to be in the range of $190 million - $200 million, compared to prior expectations of $200 million - $220 million. The company anticipates fiscal year 2009 sales for its defense and space products and services to grow by about 11% year-over-year.
Looking forward to full year 2010, Goodrich said it expects income from continuing operations and earnings in the range of $4.15 - $4.40 per share, about flat when compared to its current outlook for income from continuing operations for the full year 2009. Sales expectations are for sales of nearly $7.0 billion, representing growth of about 5% from the current outlook for 2009. Analysts currently expect the company to report earnings of $4.59 per share on revenues of 6.89 billion for the fiscal year 2010.
The company indicated that although airline capacity has yet to turn the corner, it believes 2010 to be a year of modest recovery which should allow growth in it commercial aftermarket sales. The company, however, expects aftermarket sales to continue to be weak for the first few months of 2010, with the recovery beginning towards the middle of the year.
Goodrich also declared a quarterly dividend of $0.27 per share, payable on January 4 to stockholders of record as of the close of business on December 1, 2009. This dividend declaration leads to an 8% increase over the previous quarterly dividend of $0.25 per share.
GR is currently trading at $58.23, up $3.58 or 6.55%, on a volume of 2.20 million shares on the NYSE. In the past 52 weeks, the stock trended in a broad range of $25.11 - $57.98, with a three-month average volume of 1.41 million shares.
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