Media Contact:
Lisa Bottle +1 704 423 7060

Investor Relations:
Paul Gifford +1 704 423 5517

For Immediate Release

First quarter 2011 net income per diluted share of $1.52 increased 75 percent compared to first quarter 2010 net income per diluted share of $0.87.

First quarter 2011 sales grew 12 percent to $1,896 million, compared to first quarter 2010 sales of $1,695 million.

First quarter 2011 commercial aftermarket sales grew 12 percent, compared to first quarter 2010.

Full year 2011 outlook for net income per diluted share increased to $5.40 — $5.55, compared to the prior outlook of $5.30 — $5.45. Sales are now expected to be about $7.8 billion, compared to the prior outlook of $7.7 — $7.8 billion. The outlook for net cash provided by operating activities, minus capital expenditures, is unchanged and is expected to exceed 85 percent of net income.

Large commercial airplane original equipment sales increased by 6 percent,

Regional, business and general aviation airplane original equipment sales increased by 55 percent, including sales associated with the recent acquisition of DeCrane’s cabin management assets,

Large commercial, regional, business and general aviation airplane aftermarket sales increased by 12 percent. Sequentially, commercial aftermarket sales were 9 percent higher than the fourth quarter 2010, and

Defense and space sales of both original equipment and aftermarket products and services increased by 10 percent.

The Company reported an effective tax rate of 24.4 percent for the first quarter 2011, compared to an effective tax rate of 37.9 percent during the first quarter 2010. The first quarter 2011 tax rate includes a previously announced benefit of approximately $21 million, or $0.17 per diluted share related to a tax settlement. There was no similar benefit during the first quarter 2010. The first quarter 2010 results included additional tax expense of $10 million, or $0.08 per diluted share for the U.S. health care reform legislation. There were no similar expenses in the first quarter 2011.

The first quarter 2011 results included pre-tax expense of $22 million, $14 million after-tax or $0.11 per diluted share, related to world-wide pension plan expense, compared to pre-tax pension expense of $43 million, $27 million after-tax or $0.21 per diluted share, recorded during the first quarter 2010.

The first quarter 2011 results included higher pre-tax income of $5 million, $3 million after-tax or $0.02 per diluted share, related to the changes in estimates for certain long-term contracts primarily in our aerostructures and aircraft wheels and brakes businesses, compared to the first quarter 2010. Total pre-tax changes in estimates for the first quarter 2011 were $21 million. Changes in both periods were primarily related to favorable cost and operational performance, changes in volume expectations and sales pricing improvements and finalization of contract terms on current and/or follow-on contracts.

On April 1, 2011, Goodrich announced that it had signed an agreement to acquire Microtecnica, a leading provider of flight control actuation systems for helicopter, regional and business aircraft, missile actuation, and aircraft thermal and environmental control systems. The transaction is expected to close during the second quarter of 2011. The acquisition complements the existing flight control actuation business and strengthens Goodrich’s position in the helicopter market. The acquisition is expected to be slightly accretive in 2011 and solidly accretive thereafter. Because the acquisition has not been completed, the current sales outlook for 2011 does not yet include the expected impact of this acquisition.

On March 29, 2011, Goodrich announced that it was awarded a contract to deliver two upgraded Senior Year Electro-Optical Reconnaissance Sensors (SYERS) to the United States Air Force for use on the U-2 platform. These upgrades, known as SYERS-2A, will enhance the U-2 functionality by adding extra multi-spectral imaging capability to the platform, providing significantly more utility in discerning imagery.

On March 9, 2011, Goodrich announced that it was selected by Airbus to provide the nacelle system for the Pratt & Whitney PurePower^® 1100G engine, one of the engine options on the Airbus A320neo (new engine option) airplane. Under the agreement, Goodrich will design the nacelle and thrust reversers and will perform engine build up for the PurePower propulsion system. The new Pratt & Whitney PurePower 1100G engine is expected to provide greater fuel efficiency, burning about 15 percent less fuel than current engines. In addition, the Goodrich nacelle will include a variable area nozzle (VAN) for the PurePower engine. Goodrich’s VAN is a variable duct that manipulates the flow of fan air from the nacelle and will contribute to overall improvements in fuel efficiency.

On March 3, 2011, Goodrich announced that it had completed the certification process for the Boeing 787 electric braking system. The achievement followed a comprehensive development and qualification program involving multiple Goodrich business units and close collaboration with Boeing. The braking system incorporates the latest iteration of Goodrich’s proprietary DURACARB^® carbon heat sink material which provides exceptional brake performance and up to 35% better brake life than competing carbon friction materials.

On February 7, 2011, Goodrich announced that it received a follow-on contract from Defense Logistics Agency Aviation to supply over 1,600 carbon brakes and over 1,400 boltless wheels for the U.S. Air Force C-130 aircraft fleet. Deliveries are expected to begin in October 2011. Goodrich’s C-130 wheel and brake retrofit features DURACARB carbon brakes which provide lighter weight, longer life, higher performance and lower cost of ownership compared to steel braking systems.

Large commercial airplane original equipment sales are expected to increase by about 15 percent. This outlook assumes all announced production rate increases are implemented, and Boeing 787 and 747-8 deliveries are consistent with the latest schedule announced by Boeing,

Regional, business and general aviation airplane original equipment sales are expected to grow by about 30 — 35 percent, including incremental sales associated with the DeCrane acquisition,

Large commercial, regional, business and general aviation airplane aftermarket sales are expected to increase by about 7 — 9 percent, and

Defense and space sales of both original equipment and aftermarket products and services are expected to increase by about 8 — 10 percent.

Lower worldwide pre-tax pension expense of approximately $74 million, $46 million after-tax or $0.37 per diluted share. For 2011, the company expects total worldwide pre-tax pension expense of approximately $88 million, compared to $162 million in 2010.

A full-year effective tax rate of approximately 30 percent for 2011, which is unchanged from our previous outlook. On average, Goodrich expects an effective tax rate of approximately 32 percent for the remaining three quarters of 2011.

demand for and market acceptance of new and existing products, such as the Airbus A350 XWB, A320neo and A380, the Boeing 787, the EMBRAER 190, the Mitsubishi Regional Jet (MRJ), the Bombardier CSeries, the Dassault Falcon 7X and the Lockheed Martin F-35 Lightning II and the Northrop Grumman Joint STARS re-engining program;

our ability to maintain profitability on the aerostructures 787 OE contract with Boeing;

our ability to extend our commercial OE contracts beyond the initial contract periods;

cancellation or delays of orders or contracts by customers or with suppliers, including delays or cancellations associated with the Boeing 787, the Airbus A380 and A350 XWB aircraft programs, and major military programs, including the Northrop Grumman Joint STARS re-engining program and the Lockheed Martin F-35 Lightning II;

our ability to obtain price adjustments pursuant to certain of our long-term contracts;

the financial viability of key suppliers and the ability of our suppliers to perform under existing contracts;

the extent to which we are successful in integrating and achieving expected operating synergies for recent and future acquisitions;

successful development of products and advanced technologies;

the impact of bankruptcies and/or consolidations in the airline industry;

the health of the commercial aerospace industry, including the large commercial, regional, business and general aviation aircraft manufacturers;

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 possibility of restructuring and consolidation actions;

threats and events associated with and efforts to combat terrorism;

the extent to which changes in regulations and/or assumptions result in changes to expenses relating to employee and retiree medical and pension benefits;

competitive product and pricing pressures;

our ability to recover under contractual rights of indemnification for environmental, asbestos and other claims arising out of the divestiture of our tire, vinyl, engineered industrial products and other businesses;

the effect of changes in accounting policies or legislation, including tax legislation;

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, interest rates, inflation, fuel prices, deflation, recession and other external factors over which we have no control;

the outcome of contingencies including completion of acquisitions, joint ventures, divestitures, tax audits, litigation and environmental remediation efforts; and

the impact of labor difficulties or work stoppages at our, a customer’s or a supplier’s facilities.

Actuation and Landing Systems

Nacelles and Interior Systems

Electronic Systems

 

Total Sales

 

Actuation and Landing Systems

Nacelles and Interior Systems

Electronic Systems

 

Segment Operating Income

Higher defense and space OE and aftermarket sales of approximately $30 million, primarily in our aircraft wheels and brakes, landing gear and engine components businesses;

Higher large commercial airplane OE sales of approximately $15 million, primarily in our landing gear and actuation systems businesses;

Higher large commercial, regional, business and general aviation airplane aftermarket sales of approximately $11 million, primarily in our aircraft wheels and brakes business;

Higher regional, business and general aviation airplane OE sales of approximately $10 million, primarily in our landing gear, actuation systems and engine components businesses; and

Higher non-aerospace sales of approximately $7 million, primarily in our actuation systems and engine components businesses.

Higher sales volume and favorable product mix across most businesses resulting in higher income of approximately $23 million; partially offset by

Higher operating costs across most businesses partially offset by favorable pricing, which resulted in lower income of approximately $4 million; and

Unfavorable foreign exchange of approximately $2 million.

Higher regional, business and general aviation airplane OE sales of approximately $43 million, primarily in our aerostructures and interiors businesses, including sales associated with the acquisition of DeCrane’s cabin management assets;

Higher large commercial, regional, business, and general aviation airplane aftermarket sales of approximately $34 million, primarily in our aerostructures and interiors businesses;

Higher defense and space OE and aftermarket sales of approximately $13 million, primarily in our aerostructures business; and

Higher large commercial airplane OE sales of approximately $9 million, primarily in our aerostructures business.

Higher sales volume and favorable product mix which resulted in higher income of approximately $39 million, primarily in our aerostructures business; and

Favorable pricing partially offset by higher operating costs, primarily in our aerostructures business, which resulted in higher income of approximately $2 million.

Higher large commercial, regional, business and general aviation airplane aftermarket sales primarily in our sensors and integrated systems and engine controls and electrical power businesses of approximately $17 million;

Higher defense and space OE and aftermarket sales across most businesses of approximately $11 million; and

Higher large commercial airplane OE sales of approximately $4 million, primarily in our sensors and integrated systems and engine controls and electrical power businesses; partially offset by

Lower regional, business, and general aviation airplane OE sales of approximately $2 million, primarily in our engine controls and electrical power business.

Higher sales volume and favorable product mix across all businesses, which resulted in higher income of approximately $13 million;

Higher income of approximately $6 million related to changes in estimates for certain long-term contracts in our ISR business, consisting of favorable changes in estimates of approximately $2 million in the first quarter of 2011 compared to a charge of approximately $4 million in the first quarter of 2010; and

Favorable foreign exchange of approximately $3 million.

Operating costs and expenses:

Cost of sales

Selling and administrative costs

 

 

 

Interest expense

Interest income

Other income (expense) — net

 

Income from continuing operations before income taxes

Income tax expense

 

Income from discontinued operations — net of income taxes

 

Net income attributable to noncontrolling interests

 

 

 

Income from continuing operations

Income from discontinued operations — net of income taxes

 

 

 

Continuing operations

Discontinued operations

 

 

Continuing operations

Discontinued operations

 

 

 

 

Sales:

Actuation and Landing Systems

Nacelles and Interior Systems

Electronic Systems

 

 

Total Sales

 

 

Operating Income:

Actuation and Landing Systems

Nacelles and Interior Systems

Electronic Systems

 

 

Total Segment Operating Income (1)

 

Corporate General and Administrative Expenses

ERP Costs

 

 

Total Operating Income

 

 

Segment Operating Income as a Percent of Sales:

Actuation and Landing Systems

Nacelles and Interior Systems

Electronic Systems

 

Total Segment Operating Income as a Percent of Sales

Income from continuing operations attributable to Goodrich

Percentage allocated to common shareholders

 

 

 

 

Weighted-average shares

Effect of dilutive securities

 

Adjusted weighted-average shares and assumed conversion

 

Basic

 

Diluted

 

Cash and cash equivalents

Accounts and notes receivable — net

Inventories — net

Deferred income taxes

Prepaid expenses and other assets

Income taxes receivable

 

 

Property, plant and equipment — net

Goodwill

Identifiable intangible assets — net

Deferred income taxes

Other assets

 

 

Short-term debt

Accounts payable

Accrued expenses

Income taxes payable

Deferred income taxes

Current maturities of long-term debt and capital lease obligations

 

 

Long-term debt and capital lease obligations

Pension obligations

Postretirement benefits other than pensions

Long-term income taxes payable

Deferred income taxes

Other non-current liabilities

Common stock — $5 par value

Authorized 200,000,000 shares; issued 149,233,822 shares at March 31, 2011 and 148,213,331 shares at December 31, 2010 (excluding 14,000,000 shares held by a wholly owned subsidiary)

Additional paid-in capital

Income retained in the business

Accumulated other comprehensive income (loss)

Common stock held in treasury, at cost (24,363,299 shares at March 31, 2011 and 23,259,865 shares at December 31, 2010)

 

Noncontrolling interests

 

 

 

Consolidated net income

Adjustments to reconcile consolidated net income to net cash provided by operating activities:

(Income) loss from discontinued operations

Pension and postretirement benefits:

Expenses

Contributions and benefit payments

Depreciation and amortization

Excess tax benefits related to share-based payment arrangements

Share-based compensation expense

Deferred income taxes

Change in assets and liabilities, net of effects of acquisitions and divestitures:

Receivables

Inventories, net of pre-production and excess-over-average

Pre-production and excess-over-average inventories

Other current assets

Accounts payable

Accrued expenses

Income taxes payable/receivable

Other assets and liabilities

 

 

Purchases of property, plant and equipment

Proceeds from sale of property, plant and equipment

Payments received (made) in connection with acquisitions, net of cash acquired

Investments in and advances to equity investees

 

 

Increase (decrease) in short-term debt, net

Proceeds (repayments) of long-term debt and capital lease obligations

Proceeds from issuance of common stock

Purchases of treasury stock

Dividends paid

Excess tax benefits related to share-based payment arrangements

Distributions to noncontrolling interests

 

 

Net cash provided by (used in) operating activities

Net cash provided by (used in) investing activities

Net cash provided by (used in) financing activities

 

Net cash provided by (used in) discontinued operations

Effect of exchange rate changes on cash and cash equivalents

 

Net increase (decrease) in cash and cash equivalents

Cash and cash equivalents at beginning of period

 

Cash and cash equivalents at end of period

 

 

Net Interest Expense

 

Other Income (Expense), Net:

 

- Retiree health care expenses related to previously owned business

- Expenses related to previously owned businesses

- Equity in affiliated companies

- Other — net

 

Dividends paid

 

Depreciation and Amortization

 

- Depreciation

- Amortization

 

Net Cash Provided By Operating Activities

Purchases of Property, Plant and Equipment (Capital Expenditures)

 

Net Cash Provided By Operating Activities minus Capital Expenditures (Free Cash Flow^[1])

 

 

Preproduction and Excess-Over-Average Inventory

 

Short-term Debt

Current Maturities of Long-term Debt and Capital Lease Obligations

Long-term Debt and Capital Lease Obligations

 

 

Total Debt^[2]

Cash and Cash Equivalents

 

 

Net Debt^[2]