At the Farnborough Airshow being held in London, Goodrich Corporation’s (GR) UK-based ISR Systems business teamed up with Australia’s SYPAQ to support future intelligence, surveillance and reconnaissance (ISR) systems in Australia.
The teaming makes Melbourne-based SYPAQ the prime contractor for Goodrich’s civil and defense ISR campaigns within Australia. The agreement is expected to enhance capabilities for future Australian defense and civil programs.
SYPAQ’s management believes that Goodrich’s ISR technology is well suited to current Australian ISR requirements in defense as well as civil security and emergency services domains.
With leading-edge ISR capabilities, Goodrich and SYPAQ intend to provide integrated ISR solutions for the Australian Defense Forces.
Under the agreement, Goodrich proposes to focus on a ‘system of systems’ approach for future battlespace challenges, force protection solutions, and civil emergency service applications such as bushfire monitoring.
Charlotte, North Carolina-based Goodrich Corp. is expected to report its second quarter 2010 operating results on July 29, 2010. Goodrich is a global supplier of systems and services to aerospace, defense and homeland security markets.
During the first-quarter earnings call, Goodrich maintained its fiscal-year 2010 total sales expectation of $7.1 billion, which reflects a 6% growth over 2009. Earnings per share for the year are expected to range between $4.15 and $4.40. The Zacks Consensus Estimates for years 2010 and 2011 are $4.36 per share and $5.14 per share, respectively.
The positive factors going for Goodrich Corporation are its geographically-diverse customer mix, divergent presence in both commercial and business jets, AIS acquisition, strong balance sheet, incremental dividend, ongoing share repurchase program and relatively cheap earnings-based valuation.
Despite all this, a dwindling commercial aerospace market, dependence on international sales, high research and development overhead and regulatory risks keep us Neutral on Goodrich.
Read the full analyst report on “GR”
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