Goodrich Corp. (GR) reported a 35% year-over-year decline in first-quarter earnings from continuing operations to $110 million. Earnings per share from continuing operations came in at 86 cents, below the Zacks Consensus Estimate of 89 cents.
The company, which supplies aerospace components, reported quarterly sales of $1.7 billion, flat year-over-year. With a 9% sequential increase in commercial airplane aftermarket sales, Goodrich hinted that sales will be trending upward throughout this year. It also anticipates a 4–7% growth in sales for full year 2010 than 2009.
In terms of segments, Actuation and Landing Systems segment sales were essentially flat year-over-year at $613 million. However, the growth was more than offset by a 12% decline in Nacelles and Interior Systems segment sales to $556 million. Electronic Systems revenue rose 17% year over year to $526 million.
Goodrich’s total operating income was down 11% from the year-earlier level to $259 million. Operating income for Actuation and Landing Systems segment fell 9% to $69.4 million, while for Nacelles and Interior Systems segment it was down 20% to $118.8 million.
Goodrich reaffirmed its fiscal 2010 EPS outlook to be in the range of $4.15 to $4.40, with sales expected to reach $7.1 billion. The Zacks Consensus Estimate of $4.34 per share (derived from 16 covering analysts) is well within the guidance range.
As of Mar 31, 2010, the company’s cash balance was $778 million. Long-term debt stood at $2 billion, representing a debt-to-capitalization ratio of 40%.
We currently have a “Neutral” recommendation on Goodrich shares.
Read the full analyst report on “GR”
Zacks Investment Research
