Goodrich Corporation (GR) announced that it has been chosen by Airbus to design the nacelle and thrust reversers for United Technologies Corporation’s (UTX) Pratt & Whitney PurePower 1100G engine. The engine will be used to power the Airbus A320 Family of single-aisle airplanes. Goodrich will carry out engine build up (EBU) and also include a variable area nozzle (VAN) for the engine.
The upgraded Pratt & Whitney PurePower 1100G engines will offer greater fuel efficiency. The re-engining would result in 15% less fuel consumption than current levels. Goodrich’s VAN is a variable duct that manipulates the flow of fan air from the nacelle and will also result in overall fuel efficiency.
Goodrich’s Aerostructures business will design the nacelle system. Goodrich Actuation Systems and Engine Control and Electrical Power Systems will provide the design for the actuation systems that will be utilized on the nacelle system, thrust reversers, and the variable area nozzle. The EBU will be performed at the company’s facilities in Toulouse, France and Hamburg, Germany, which are located next to Airbus’ A320 final assembly lines.
Goodrich has a geographically-diverse customer mix, diverse presence in both commercial and business jets, resurgence in commercial aftermarket sales, a strong balance sheet, incremental dividend and an ongoing share repurchase program.
Going forward, the company expects a sharp rise in its fortunes with commercial airliners focusing on capacity expansion to cater to rising demand. The company presently retains a short-term Zacks #2 Rank (Buy). We have a long-term Neutral recommendation on the stock. The company mainly competes with Honeywell International Inc. (HON) and United Technologies.
In February 2011, Goodrich announced its fourth quarter and fiscal 2010 results. Its fourth quarter operating earnings were $1.15 per share, ahead of the Zacks Consensus Estimate of $1.05. Goodrich reported fiscal 2010 operating earnings of $4.50 that comfortably beat the Zacks Consensus Estimate of $4.14. The company’s total operating revenue in fourth quarter 2010 was $1,806.2 million compared with the Zacks Consensus Estimate of $1,847 million. In fiscal year 2010, total operating revenue was $6,966.9 million versus the Zacks Consensus Estimate of $7,089 million.
Based in Charlotte, North Carolina, Goodrich supplies components, systems and services to the commercial, regional, business and general aviation markets in the U.S. and in other parts of the world.
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