Goodrich Corporation (GR) received a contract from Lockheed Martin Corporation (LMT) to supply pylons for a program to improve U.S. Air Force military transport aircraft.
The $300 million contract follows an earlier contract between Goodrich and Lockheed Martin to provide pylons and nacelles for three test aircraft and nine airplanes in the initial phase of the U.S. Air Force C-5 Galaxy strategic airlifter Reliability Enhancement and Re-engining Program.
The 160 pylons — structures that attach the propulsion system to the aircraft’s wing — are to be delivered in early 2011 through the end of 2015 under the new contract. Work will be performed by Goodrich’s Aerostructures teams in Chula Vista, California and Foley, Alabama.
In the recently reported third quarter of 2010, Goodrich’s Nacelles and Interior Systems business segment clocked revenues of $582.7 million versus $561.8 million in the year-ago quarter. The increase in revenues was mainly due to higher large commercial OE, business and general aviation airplane sales recorded in the aerostructures business.
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 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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