Goodrich Corporation (GR) has been selected by Japanese Carrier – Skynet Asia Airways to supply wheels and carbon brakes for its new fleet of 13 737-800 Next Generation aircraft from The Boeing Company (BA). Aircraft deliveries with the Goodrich wheel and carbon brake equipment are expected to begin in June 2011 and continue through 2016.
Goodrich’s 737 Next Generation carbon brake uses proprietary DURACARB carbon heat sink material. The DURACARB carbon provides exceptional brake performance and a 35% brake life advantage over competitive equipment. The Goodrich wheels and carbon brakes provide weight savings of approximately 700 pounds (318kg) per aircraft compared to high capacity steel brakes.
Skynet Asia Airways is based in Miyazaki City, Japan and has been in operation in southwest Japan since 2002. The airline offers domestic passenger services between the 5 major cities in Kyushu (Miyazaki, Kumamoto, Nagasaki, Oita and Kagoshima), Tokyo (Haneda) and Okinawa (Naha).
Based in Charlotte, North Carolina, Goodrich Corporation supplies components, systems and services to the commercial, regional, business and general aviation markets in the U.S. and other parts of the world. Goodrich also supplies aircraft and satellite systems to the global military and space markets. Goodrich’s products and services are principally sold to customers in North America, Europe and Asia.
Goodrich is slated to release its earnings for the first quarter of fiscal 2011 on April 21, 2011. The Zacks Consensus Estimate for the first quarter is $1.25, representing a year-over-year increase of 44.89%. The Zacks Consensus Estimate for fiscal 2011 is $5.47, up 24.14%. Goodrich had a mixed track record with regard to surpassing earnings estimates in the last four quarters with a trailing four-quarter average of 7.69%.
Goodrich is a global supplier of components and systems for communications and avionics. Most of the company’s products are sold to government and commercial customers that will lead to higher volume sales and will create economies of scale thus helping to win cost-sensitive government contracts. The company also provides niche equipment, which has a captive market until the retirement of the specific model.
However, these positives are offset by uncertainty in the large commercial airplane original equipment market, dependence on international sales, high research and development overheads and regulatory risks. Goodrich presently retains a short-term Zacks #2 Rank (Buy). We have a long-term Neutral recommendation on the stock.
BOEING CO (BA): Free Stock Analysis Report
GOODRICH CORP (GR): Free Stock Analysis Report
Zacks Investment Research
