Goodrich Corporation (GR) has begun work on a new manufacturing plant in Rzeszow, Poland. The company bought the 13-acre site in southeast Poland in 2008. The company will invest $50 million in the operation, which will have 250 employees.
The new plant will support the company’s landing-gear business. Goodrich expects the plant to become operational by the second quarter of 2012.
Goodrich’s new plant would almost double Goodrich’s footprint in Poland. The company already has a manufacturing facility nearby Krosno that produces and assembles landing-gear parts for commercial and military customers.
Goodrich manufactures complete landing gear systems for commercial, general aviation and defense aircrafts. However, the company has to compete with a number of U.S. and foreign companies that are both larger and smaller to it in terms of resources and market share. Its major competitors in this space includes Messier-Dowty subsidiary of French conglomerate SAFRAN; privately owned German company Liebherr-Holding GmbH; GE Aviation, a subsidiary of General Electric (GE) among others.
Based in Charlotte, North Carolina, Goodrich supplies components, systems and services to the commercial and general aviation airplane markets. The company also supplies systems and products to the global defense and space markets. Businesses include manufacturing, service and sales, which are carried out in various locations throughout the world.
Goodrich’s products and services are sold in North America, Europe and Asia. Goodrich operates three business segments – Actuation and Landing Systems, Nacelles and Interior Systems and Electronic Systems.
Goodrich Corporation’s geographically diverse customer mix, strong balance sheet, incremental dividend-paying history, ongoing share repurchase program and a relatively cheap earnings-based valuation support our bullish outlook for the company. In October 2010, the company raised its quarterly dividend by 7% from 27 cents to 29 cents per share.
However, this is offset by the depressed fortunes of the business jet market, high research and development overheads and regulatory risks. We currently have a market Neutral recommendation on the Zacks #3 Rank (Hold) stock.
GOODRICH CORP (GR): Free Stock Analysis Report
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