Aerospace components and services provider Goodrich Corp. (GR) said Thursday that its fourth quarter profit dropped by about 38% over last year, hurt by lower aftermarket sales, which was partially offset by cost containment initiatives. Quarterly earnings, as well as sales also failed to meet the analysts' expectations. Looking ahead, the company reaffirmed its earnings outlook for fiscal 2010.
Net income attributable to the company was $105 million or $0.82 per share for the fourth quarter, down from $169 million or $1.35 per share in the prior year quarter. On average, 24 analysts polled by Thomson Reuters expected the company to report earnings of $0.90 per share for the fourth quarter. Analysts' estimates typically exclude special items.
The Charlotte, North Carolina-based company's fourth quarter sales decreased 3% to $1.642 billion from $1.695 billion in the same quarter last year, hurt by lower sales resulting from the formation of the engine controls joint venture with Rolls-Royce, and the impact of current economic conditions, which were partially offset by favorable foreign currency exchange rate. Nineteen analysts had a consensus revenue estimate of $1.65 billion for the fourth quarter.
Large commercial airplane original equipment sales grew by 22%, Regional, business and general aviation airplane original equipment sales decreased by 44%, and Large commercial, regional, business and general aviation airplane aftermarket sales dropped 20% from a year ago.
Defense and space sales of both original equipment and aftermarket products and services increased 11% from last year.
Actuation and Landing Systems segment sales rose 11% to $645 million for the quarter. However, sales from Nacelles and Interior Systems segment fell 12% to $533 million, and sales from Electronic Systems segment slipped 10% year-over-year to $464 million.
Capital expenditures declined in the fourth quarter to $54 million from $95 million in the prior year quarter.
Last December, Goodrich completed the acquisition of AIS Global Holdings LLC for about $375 million. AIS, known as Atlantic Inertial Systems, is a provider of mission-critical guidance, stabilization and navigation products and systems for the military and defense market. The acquisition is expected to be slightly accretive to earnings in 2010, including the impact of purchase accounting adjustments.
For the full year 2009, Goodrich reported net income of $597 million or $4.70 per share, compared to $681 million or $5.35 per share in the previous year. Annual sales declined to $6.686 billion from $7.062 billion in the prior year.
Analysts expected the company to report earnings of $4.52 per share on sales of $6.71 billion for the year 2009.
For the full year 2010, Goodrich still expects income from continuing operations and earnings in the range of $4.15 to $4.40 per share.
Sales are currently expected to be about $7.1 billion, representing growth of about 6% - 7% over last year. The sales outlook includes sales from the recently completed Atlantic Inertial Systems acquisition. Earlier, the company estimated sales of about $7.0 billion for the year.
The Street now expects earnings of $4.41 per share on revenue of $6.96 billion for the year 2010.
Among others in the industry, United Technologies Corp. (UTX) reported a 7% decline in profit for the fourth quarter, hurt by dwindling demand for commercial construction equipment and military aircraft. The company also reaffirmed its earnings outlook for the full-year 2010.
Goodrich is currently trading at $61.08, down $1.15 or 1.85% on a volume of 0.86 million shares. The stock has been moving in a range of $29.95 - $67.18 for the past 52 weeks, with an average daily volume of about 1.20 million shares for the past three months.
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