-- Second quarter 2008 sales of $1,849 million increased 17 percent over second quarter 2007 sales of $1,576 million. -- Second quarter 2008 income per diluted share of $1.46 increased 49 percent over second quarter 2007 income per diluted share of $0.98.
CHARLOTTE, N.C., July 24 /PRNewswire-FirstCall/ -- Goodrich Corporation
(NYSE: GR) announced results today for the second quarter, and increased its
outlook for full year 2008 net income per diluted share.
Commenting on the company's performance, Marshall Larsen, Chairman,
President and Chief Executive Officer said, "Goodrich enjoys the benefit of
having excellent positions on the newer, more fuel-efficient airplanes
currently in service. These positions have enabled our company to continue to
have strong commercial aftermarket sales growth. Even though many airlines
have announced that they will remove some of their older airplanes from their
fleets, we do not expect these removals to have a significant impact on
Goodrich results in 2008. These older airplanes, primarily MD-80s and 737
Classics represent approximately 31 percent of the world's fleet of large
commercial aircraft, but only 8 percent of our large commercial aftermarket
sales, or about 2 percent of our total sales."
"In addition to excellent sales growth for our commercial aftermarket
products and services, we enjoyed continued robust growth in our other major
market channels. These sales led to another great quarter of earnings growth
and solid cash flow. Based on our current forecast, we now expect that
full-year earnings per diluted share will be in the $4.80 - $4.95 range, a
significant increase from our prior outlook of $4.30 - $4.45. Our financial
and operational performance has been excellent," Larsen continued.
Second Quarter 2008 Results
Goodrich reported second quarter 2008 net income of $187 million, or $1.46
per diluted share, on sales of $1,849 million. In the second quarter 2007,
the company reported net income of $125 million, or $0.98 per diluted share,
on sales of $1,576 million. Second quarter 2008 sales increased 17 percent
and net income per diluted share increased 49 percent compared with the second
quarter 2007. The company reported an effective tax rate of 28 percent for
the second quarter of 2008, compared with an effective tax rate of 29 percent
during the second quarter 2007. The effective tax rate for the second quarter
2008 included the benefits from the settlement of a foreign tax audit and
additional state research and development tax credits. The effective tax rate
for the second quarter 2007 included the benefits from the elimination of
certain valuation allowances related to a foreign subsidiary and a benefit
related to U.S. Research and Development credits.
The increased sales for the quarter reflected continued strong growth in
the company's major market channels. For the second quarter 2008 compared
with the second quarter 2007, sales increases by market channel were as
follows:
-- Large commercial airplane original equipment sales increased by about
28 percent,
-- Regional, business and general aviation airplane original equipment
sales increased by about 26 percent,
-- Large commercial, regional, business and general aviation airplane
aftermarket sales increased by about 12 percent, and
-- Defense and space sales of both original equipment and aftermarket
products and services increased by about 11 percent.
Net income in the second quarter 2008, compared with the second quarter
2007, was positively affected by increased sales and improved operational
efficiencies in most business units.
Net cash provided by operating activities during the second quarter 2008
was $169 million, an increase of $105 million from the same period in 2007.
The increase was primarily due to increased pre-tax income and lower pension
contributions, partially offset by higher cash tax payments in the second
quarter 2008 compared to the second quarter 2007. Capital expenditures were
$62 million in the second quarter 2008 compared with capital expenditures of
$59 million in the second quarter 2007.
Year-to-Date Results
For the first six months of 2008, the company reported net income of $345
million, or $2.70 per diluted share, on sales of $3,594 million. During the
first six months of 2007, net income was $225 million, or $1.76 per diluted
share, on sales of $3,123 million. For the first six months of 2008, sales
increased 15 percent and net income per diluted share increased 53 percent
compared with the first six months of 2007. The $471 million increase in
sales is primarily attributable to double-digit percentage growth in all of
the company's major market channels. The effective tax rate for the first six
months of 2008 was 31 percent, a slightly lower rate than the 32 percent
experienced during the first six months of 2007.
Net cash provided by operating activities during the first six months of
2008 was $320 million, an increase of $128 million from the same period in
2007. The increase was primarily due to increased pre-tax income, lower
pension contributions and lower net tax payments, partially offset by
increased working capital requirements. Capital expenditures were $116
million for the first six months of 2008 compared to capital expenditures for
the first six months of 2007 of $95 million.
Business Highlights
-- Goodrich was selected by Pratt & Whitney to be the exclusive provider
of the complete nacelle systems for its new Geared Turbofan engine for both
the Mitsubishi Regional Jet (MRJ) and the Bombardier CSeries aircraft
families. The award is expected to generate more than $5 billion in original
equipment and aftermarket revenue for Goodrich during the 25-year period
following entry into service.
-- On July 1, Standard & Poor's Rating Services raised its corporate
credit rating on Goodrich to 'BBB+' from 'BBB', reflecting improving credit
protection measures resulting from solid demand in key markets, increasing
profitability, and some debt reduction.
-- Goodrich received production contracts from Lockheed Martin and General
Electric Aircraft Engines (GEAE) to supply pylons and nacelle systems for the
U.S. Air Force C-5 Galaxy strategic airlifter Reliability Enhancement and
Re-engining Program (RERP). Goodrich content is expected to generate $600
million in revenue for the 49 aircraft planned to be upgraded in the RERP,
excluding any aftermarket revenue, through the year 2015.
2008 Outlook
The company's current market assumptions, for each of its major market
channels, for the full year 2008 (including sales resulting from recent
acquisitions), compared with the full year 2007, include:
-- Large commercial airplane original equipment sales are expected to
increase by about 20 percent,
-- Regional, business and general aviation airplane original equipment
sales are expected to increase by more than 20 percent,
-- Large commercial, regional, business and general aviation airplane
aftermarket sales are expected to increase by about 8 - 11 percent, and
-- Defense and space sales of both original equipment and aftermarket
products and services are expected to increase by about 13 percent.
The company's full year 2008 sales expectation has been adjusted to
approximately $7.3 billion from the prior outlook of $7.2 - $7.3 billion. The
current outlook for sales represents expected growth of about 14 percent from
2007 results. The outlook for 2008 net income per diluted share has been
increased to a range of $4.80 - $4.95 from the prior outlook of $4.30 - $4.45,
reflecting an expected increase of 27 - 31 percent compared with the company's
net income per diluted share for 2007.
The 2008 outlook assumes, among other factors, a full-year effective tax
rate of approximately 32 percent, which includes a full-year benefit of
approximately 1 percent related to an assumed extension of the U.S. research
tax credit. This compares with an effective tax rate of 31 percent for 2007.
Thus, during the second half of 2008, the company expects an effective tax
rate of about 36 percent before the research tax credit benefit, and an
effective tax rate of about 34 percent including the benefit.
For 2008, Goodrich continues to expect net cash provided by operating
activities, minus capital expenditures, to exceed 75 percent of net income.
This outlook reflects a continuation of working capital investments to support
the Boeing 787 Dreamliner and Airbus A350 XWB programs and capital
expenditures for low-cost country manufacturing and productivity initiatives
that are expected to enhance margins over the near and long term. The company
expects capital expenditures for 2008 to be in a range of $275 - $325 million,
unchanged from the prior outlook.
Goodrich has $346 million remaining under its existing share repurchase
program. The company intends to repurchase shares through open market and
privately negotiated transactions at times and in such amounts as management
deems appropriate.
The current sales, net income and net cash provided by operating
activities outlooks for 2008 do not include the impact of potential
acquisitions or divestitures.
The supplemental discussion and tables that follow provide more detailed
information about the second quarter 2008 segment results.
Goodrich will hold a conference call on July 24, 2008 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
913-981-5539.
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 Mitsubishi Regional Jet (MRJ), the Bombardier CSeries, 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, including delays or cancellations associated with the Boeing
787 Dreamliner, the Airbus A380 and A350 XWB aircraft programs, and
major military programs, including the C-5 Galaxy aircraft;
-- the financial viability of key suppliers and the ability of our
suppliers to perform under existing contracts;
-- 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 possibility of restructuring and consolidation actions;
-- 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 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;
-- the effect of changes in accounting policies or 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, inflation, fuel
prices, 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, 2008 Compared with Quarter Ended June 30, 2007
Quarter Ended June 30,
%% of Sales
20082007Change2008 2007
(Dollars in millions)
NET CUSTOMER SALES
Actuation and Landing Systems$690$58917.0%
Nacelles and Interior Systems$665$53424.6%
Electronic Systems $494$453 9.1%
Total Sales$1,849 $1,57617.3%
SEGMENT OPERATING INCOME
Actuation and Landing Systems $84.5 $59.043.2% 12.3%10.0%
Nacelles and Interior System $160.7 $135.118.9% 24.2%25.3%
Electronic Systems $71.5 $62.414.6% 14.5%13.8%
Segment Operating Income $316.7 $256.523.5% 17.1%16.3%
Actuation and Landing Systems: Actuation and Landing Systems segment sales
of $690 million for the quarter ended June 30, 2008 increased $101 million, or
17 percent, from $589 million for the quarter ended June 30, 2007. The
increase was primarily due to the following:
-- Higher large commercial airplane OE sales of approximately $34 million,
primarily in our landing gear and actuation systems business units;
-- Higher defense and space OE and aftermarket sales of approximately $20
million, primarily in our landing gear, aircraft wheels and brakes and
actuation systems business units;
-- Higher large commercial, regional, business and general aviation
airplane aftermarket sales of approximately $16 million, primarily in our
landing gear and actuation systems business units;
-- Higher regional, business and general aviation airplane OE sales of
approximately $15 million, primarily in our landing gear and actuation systems
business units; and
-- Higher non-aerospace sales of approximately $14 million, primarily in
our engine components business unit.
Actuation and Landing Systems segment operating income of $84.5 million
for the quarter ended June 30, 2008 increased $25.5 million, or 43 percent,
from $59.0 million for the quarter ended June 30, 2007. This increase in
operating income was primarily due to the following:
-- Higher sales volume and favorable product mix across all of our
business units, which resulted in higher income of approximately $26 million;
-- Higher pricing across all of our business units, partially offset by
increased operating costs across most of our business units, which resulted in
higher income of approximately $10 million; partially offset by
-- Unfavorable foreign exchange translation of approximately $5 million;
and
-- Lower income resulting from changes in estimates on certain long-term
contracts of approximately $4 million.
Nacelles and Interior Systems: Nacelles and Interior Systems segment sales
of $665 million in the quarter ended June 30, 2008 increased $131 million, or
25 percent, from $534 million in the quarter ended June 30, 2007. The increase
was primarily due to the following:
-- Higher large commercial airplane OE sales of approximately $70 million,
primarily in our aerostructures business unit;
-- Higher large commercial airplane aftermarket sales, including spare
parts and MRO volume of approximately $31 million, primarily in our
aerostructures business unit;
-- Higher regional, business, and general aviation airplane OE sales of
approximately $16 million, primarily in our aerostructures business unit; and
-- Higher defense and space OE and aftermarket sales of approximately $11
million, primarily in our interiors and aerostructures business units.
Nacelles and Interior Systems segment operating income of $160.7 million
in the quarter ended June 30, 2008 increased $25.6 million, or 19 percent,
from $135.1 million in the quarter ended June 30, 2007. The increased segment
operating income was primarily due to the following:
-- Higher sales volume, primarily in our aerostructures business unit,
which resulted in higher income of approximately $35 million; partially offset
by
-- Lower income resulting from changes in estimates for certain long-term
contracts at our aerostructures business unit of approximately $8 million; and
-- Unfavorable foreign exchange translation of approximately $2 million.
Electronic Systems: Electronic Systems segment sales of $494 million in
the quarter ended June 30, 2008 increased $41 million, or 9 percent, from $453
million in the quarter ended June 30, 2007. The increase was primarily due to
the following:
-- Higher large commercial airplane aftermarket sales of approximately $16
million, primarily in our engine control and electrical power and sensors and
integrated systems business units, including sales associated with the
acquisition of TEAC;
-- Higher defense and space OE and aftermarket sales of approximately $13
million, primarily in our engine control and electrical power business unit
and sensors and integrated systems business units, including sales associated
with the acquisition of TEAC;
-- Higher non-aerospace sales of approximately $5 million, primarily in
our engine control and electrical power business unit;
-- Higher regional, business and general aviation airplane OE sales of
approximately $3 million, primarily in our sensors and integrated systems and
engine control and electrical power business units; and
-- Higher large commercial airplane OE sales of approximately $3 million,
primarily in our sensors and integrated systems business units.
Electronic Systems segment operating income of $71.5 million in the
quarter ended June 30, 2008 increased $9.1 million, or 15 percent, from $62.4
million in the quarter ended June 30, 2007. The increased segment operating
income was primarily due to the following:
-- Higher sales volume partially offset by unfavorable product mix and
pricing, across most of our business units, which resulted in higher income of
approximately $16 million; partially offset by
-- Higher operating costs of approximately $6 million, primarily in our
sensors and integrated systems and engine control and electrical power
business units.
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,
2008 2007 2008 2007
Sales $1,849.3 $1,576.4 $3,594.3 $3,122.7
Operating costs and expenses:
Cost of sales 1,286.9 1,096.6 2,500.3 2,190.5
Selling and administrative costs273.9 260.0 531.0 514.4
1,560.8 1,356.6 3,031.3 2,704.9
Operating Income 288.5 219.8 563.0 417.8
Interest expense (27.7)(30.8)(58.5)(62.4)
Interest income 0.6 1.5 3.7 3.3
Other income (expense) - net (8.3)(17.4)(22.6)(33.0)
Income from continuing operations
before income taxes 253.1 173.1 485.6 325.7
Income tax (expense) benefit (69.5)(49.3) (148.4) (102.7)
Income From Continuing Operations 183.6 123.8 337.2 223.0
Income (loss) from discontinued
operations 3.0 1.0 7.3 1.6
Net Income $186.6$124.8$344.5$224.6
Basic Earnings per Share:
Continuing operations $1.47 $0.99 $2.69 $1.78
Discontinued operations 0.02 0.01 0.06 0.01
Net Income $1.49 $1.00 $2.75 $1.79
Diluted Earnings per Share:
Continuing operations $1.44 $0.97 $2.64 $1.75
Discontinued operations 0.02 0.01 0.06 0.01
Net Income $1.46 $0.98 $2.70 $1.76
Dividends Declared per Common
Share $0.225 $0.20 $0.45 $0.40
Weighted - Average Number of
Shares Outstanding (in millions)
Basic 125.2 125.3 125.1 125.3
Diluted 127.4 127.9 127.5 127.8
PRELIMINARY
GOODRICH CORPORATION
SEGMENT REPORTING (UNAUDITED)
(DOLLARS IN MILLIONS)
Three Months Six Months
Ended Ended
June 30,June 30,
2008 2007 2008 2007
Sales:
Actuation and Landing Systems $689.6$589.3 $1,371.7 $1,156.3
Nacelles and Interior Systems 665.1 533.7 1,285.6 1,080.5
Electronic Systems 494.6 453.4 937.0 885.9
Total Sales$1,849.3 $1,576.4 $3,594.3 $3,122.7
Operating Income:
Actuation and Landing Systems $84.5 $59.0$158.6$108.4
Nacelles and Interior Systems 160.7 135.1 339.5 261.1
Electronic Systems 71.5 62.4 120.5 117.0
Total Segment Operating Income (1)316.7 256.5 618.6 486.5
Corporate General and
Administrative Costs (24.1)(32.7)(46.7)(61.4)
ERP Implementation Costs (4.1) (4.0) (8.9) (7.3)
Total Operating Income $288.5$219.8$563.0$417.8
Segment Operating Income as a
Percent of Sales:
Actuation and Landing Systems 12.3% 10.0% 11.6% 9.4%
Nacelles and Interior Systems 24.2% 25.3% 26.4% 24.2%
Electronic Systems 14.5% 13.8% 12.9% 13.2%
Total Segment Operating Income as
a Percent of Sales17.1% 16.3% 17.2% 15.6%
(1) Segment operating income is total segment revenue reduced by operating
expenses directly identifiable with our business segments, excluding
the indirect costs related to the company-wide ERP implementation.
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,
2008 2007
Current Assets
Cash and cash equivalents $265.5$406.0
Accounts and notes receivable - net1,191.1 1,006.2
Inventories - net 1,918.9 1,775.6
Deferred income taxes181.2 178.2
Prepaid expenses and other assets106.7 108.4
Income Taxes Receivable5.5 74.4
Total Current Assets 3,668.9 3,548.8
Property, plant and equipment - net1,420.3 1,387.4
Prepaid pension 25.8 16.1
Goodwill 1,421.4 1,363.2
Identifiable intangible assets - net 476.6 452.1
Deferred income taxes 23.8 11.1
Other assets 747.5 755.3
Total Assets$7,784.3 $7,534.0
Current Liabilities
Short-term debt $20.5 $21.9
Accounts payable 703.0 586.7
Accrued expenses 869.2 930.8
Income taxes payable 81.5 10.6
Deferred income taxes 31.2 29.7
Current maturities of long-term debt
and capital lease obligations 1.1 162.9
Total Current Liabilities1,706.5 1,742.6
Long-term debt and capital lease
obligations 1,527.5 1,562.9
Pension obligations 457.4 417.8
Postretirement benefits other than
pensions338.0 358.9
Long-term income taxes payable 119.7 146.0
Deferred income taxes171.4 170.2
Other non-current liabilities554.3 556.2
Shareholders' Equity
Common stock - $5 par value
Authorized 200,000,000 shares; issued
143,452,884 shares at June 30, 2008
and 142,372,162 shares at December 31,
2007 (excluding 14,000,000 shares
held by a wholly owned subsidiary) 717.3 711.9
Additional paid-in capital 1,502.6 1,453.1
Income retained in the business1,342.1 1,054.8
Accumulated other comprehensive
income (loss)39.7 14.4
Common stock held in treasury, at
cost (18,347,860 shares at June 30,
2008 and 17,761,696 shares at December
31, 2007) (692.2) (654.8)
Total Shareholders' Equity 2,909.5 2,579.4
Total Liabilities And Shareholders'
Equity $7,784.3 $7,534.0
PRELIMINARY
GOODRICH CORPORATION
CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS (UNAUDITED)
(DOLLARS IN MILLIONS)
Three Months Six Months
Ended Ended
June 30, June 30,
2008 2007 2008 2007
Operating Activities
Net income $186.6 $124.8 $344.5 $224.6
Adjustments to reconcile net income
to net cash provided by operating
activities:
(Income) loss from discontinued
operations (3.0)(1.0)(7.3)(1.6)
Restructuring and consolidation:
Expenses 0.5 0.6 0.6 0.8
Payments (0.5)(1.5)(1.1)(2.1)
Pension and postretirement benefits:
Expenses 25.7 29.2 51.4 60.2
Contributions and benefit payments (19.9) (96.0) (35.2) (114.7)
Depreciation and amortization63.1 61.7127.2121.6
Excess tax benefits related to share-
based payment arrangements (2.8)(5.6)(8.1)(9.6)
Share-based compensation expense 7.9 16.0 15.7 32.1
Deferred income taxes(9.7) (11.3) (10.7) (20.3)
Change in assets and liabilities,
net of effects of acquisitions and
divestitures:
Receivables (61.0) (24.1) (175.1) (113.2)
Inventories, net of pre-
production and excess-over-
average (10.4) (52.5) (70.4) (112.0)
Pre-production and excess-over-
average inventories (26.8) (31.5) (56.5) (64.3)
Other current assets (0.2) 4.7 0.4 8.7
Accounts payable (25.4) (13.5) 105.0 67.7
Accrued expenses5.9 32.8(76.9)39.4
Income taxes payable 23.6 24.8122.4 76.2
Other non-current assets and
liabilities 15.0 6.3 (6.4)(1.4)
Net Cash Provided By (Used In)
Operating Activities 168.6 63.9319.5192.1
Investing Activities
Purchases of property, plant and
equipment (61.9) (58.9) (116.3) (95.0)
Proceeds from sale of property, plant
and equipment2.7 0.6 2.7 0.7
Payments made in connection with
acquisitions, net of cash acquired (84.1) - (93.6) -
Net Cash Used In Investing Activities (143.3) (58.3) (207.2) (94.3)
Financing Activities
Increase (decrease) in short-term
debt, net 10.4 10.0 (1.6)(1.8)
Repayment of long-term debt and
capital lease obligations (197.2)(0.3) (197.7)(0.7)
Proceeds from issuance of common
stock 10.3 31.3 24.0 68.1
Purchases of treasury stock (20.6) (55.5) (37.4) (113.3)
Dividends (28.5) (25.4) (57.0) (50.5)
Excess tax benefits related to share-
based payment arrangements 2.8 5.6 8.1 9.6
Distributions to minority interest
holders (0.8)(0.8)(6.3)(2.5)
Net Cash Used In Financing Activities (223.6) (35.1) (267.9) (91.1)
Net cash (used in) provided by
discontinued operations 0.1 9.9 13.5 3.7
Effect of exchange rate changes on
cash and cash equivalents0.5 1.1 1.6 1.7
Net increase (decrease) in cash and
cash equivalents (197.7) (18.5) (140.5)12.1
Cash and cash equivalents at
beginning of period463.2231.9406.0201.3
Cash and cash equivalents at end of
period$265.5 $213.4 $265.5 $213.4
PRELIMINARY
GOODRICH CORPORATION
SUPPLEMENTARY FINANCIAL INFORMATION (UNAUDITED)
(DOLLARS IN MILLIONS)
Three Months Six Months
Ended Ended
June 30, June 30,
Preliminary Income Statement Data: 2008 2007 2008 2007
Net Interest Expense $(27.1) $(29.3) $(54.8) $(59.1)
Other Income (Expense), Net:$(8.3) $(17.4) $(22.6) $(33.0)
- Divested Business Retiree
Health Care(3.0)(4.4) (10.8)(9.2)
- Income (Expense) related to
previously owned businesses(1.3)(5.6)(3.8) (11.3)
- Minority interest and equity in
affiliated companies (5.1)(7.2)(8.8) (12.9)
- Other Income (Expense) 1.1 (0.2) 0.8 0.4
Preliminary Cash Flow Data:
Dividends $(28.5) $(25.4) $(57.0) $(50.5)
Depreciation and Amortization $63.1$61.7 $127.2 $121.6
- Depreciation 45.2 45.2 90.4 87.9
- Amortization 17.9 16.5 36.8 33.7
June 30, Dec. 31,
Preliminary Balance Sheet Data: 2008 2007
Preproduction and Excess-Over-Average
Inventory $572.0$515.4
Short-term Debt $20.5 $21.9
Current Maturities of Long-term
Debt and Capital Lease Obligations 1.1 162.9
Long-term Debt and Capital Lease
Obligations 1,527.5 1,562.9
Total Debt[1] $1,549.1 $1,747.7
Less: Cash and Cash Equivalents 265.5 406.0
Net Debt[1] $1,283.6 $1,341.7
[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
