Goodrich Corp. (GR) received an unfavorable Canadian court ruling, which directed it to pay $11 million in compensation. The compensation would be paid to 184 passengers of an Air France jet, which had a defective emergency evacuation system. Goodrich’s emergency evacuation system was found to be defective when the plane facing a thunderstorm met with an accident in 2005. The passengers as a result had to jump from the plane suffering injuries.
 
Goodrich’s fortunes in recent times have been down due to lower sales of engine controls, aviation airplane spares, and aviation airplane aftermarket sales. The company mainly competes with Rockwell Collins Inc. (COL) and Alliant Techsystems Inc. (ATK).
 
Based in Charlotte, North Carolina, Goodrich is a supplier of 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. The company’s products and services are sold to customers in North America, Europe and Asia.
 
Goodrich’s geographically diversified customer mix, strong balance sheet, incremental dividend, an ongoing share repurchase program and a relatively cheap earnings-based valuation support our bullish outlook for the company. However, this is offset by the dwindling fortunes of the commercial aerospace market, dependence on international sales, high research and development overhead, and regulatory risks. Thus, we maintain our neutral recommendation on the shares.
Read the full analyst report on “GR”
Read the full analyst report on “COL”
Read the full analyst report on “ATK”
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