 Source: Goodrich |
CHARLOTTE, N.C. - Goodrich reported second quarter 2010 sales of $1,718 million compared to second quarter 2009 sales of $1,700 million. Net income for the quarter fell to $159 million from $177.1 million in the same period a year ago.
"For the first time in several quarters, our results are showing year-over-year growth in sales," Marshall Larsen, Chairman, President and Chief Executive Officer said. "This growth, combined with our continuing cost containment efforts, allowed us to report increased income per diluted share from continuing operations and the highest segment operating income margin we have reported since the third quarter 2008. Our commercial airplane aftermarket sales rose by about 3 percent sequentially, compared to the first quarter 2010, although they were about 3 percent lower than the second quarter 2009. We still expect sequential commercial aftermarket sales growth in each quarter of 2010, although we now expect full-year commercial aftermarket growth to be somewhat lower than our prior outlook. We continue to see positive trends in Goodrich aftermarket sales, as well as customer quote and order activity, which should provide momentum for the second half of 2010 and into 2011."
INDUSTRY SEGMENTS
Actuation and Landing Systems
Actuation and Landing Systems segment sales for the second quarter 2010 decreased 5 percent to $608.1million from $637.2 million the second quarter 2009 primarily due to the following:
Lower large commercial airplane OE sales of approximately $15 million, primarily in the landing gear and actuation systems businesses; lower regional, business and general aviation airplane OE sales across most businesses of approximately $12 million; lower other aerospace and non-aerospace sales across most businesses of approximately $13 million; partially offset by higher defense and space OE and aftermarket sales primarily in our landing gear and engine components businesses of approximately $6 million; and higher large commercial, regional, business and general aviation airplane aftermarket sales of approximately $5 million, primarily in the wheels and brakes business.
Actuation and Landing Systems segment operating income for the second quarter 2010 decreased to $60.5 million from $62.8 million in the second quarter 2009 primarily as a result of the following:
Lower income of approximately $11 million due to higher operating costs, primarily in the landing gear and actuation systems businesses; partially offset by favorable product mix partially offset by lower sales volume primarily in the landing gear business, which resulted in higher income of approximately $6 million; and favorable foreign exchange, including remeasurement of monetary assets/liabilities, of approximately $4 million.
Nacelles and Interior Systems
Nacelles and Interior Systems segment sales for the second quarter 2010 decreased 3 percent to $577.4 million from $595.4 million the second quarter 2009 primarily due to the following:
Lower large commercial, regional, business and general aviation airplane aftermarket sales of approximately $18 million, primarily in the aerostructures business; and lower defense and space OE and aftermarket sales of approximately $13 million, primarily in the interiors business; partially offset by higher large commercial airplane OE sales of approximately $12 million, across all businesses.
Nacelles and Interior Systems segment operating income for the second quarter 2010 increased 12 percent to $151.4 million from $135.2 million in the second quarter 2009 primarily due to the following:
Higher income of approximately $28 million related to revisions in estimates for certain long-term contracts, which were primarily related to favorable cost and operational performance, changes in volume expectations and sales pricing improvements and finalization of contract terms on current and/or follow-on contracts; and reduced operating costs partially offset by unfavorable pricing across most businesses, which resulted in higher income of approximately $7 million; partially offset by lower sales volume partially offset by favorable product mix, primarily in our aerostructures business, which resulted in lower income of approximately $18 million.
Electronic Systems
Electronic Systems segment sales for the second quarter 2010 increased 14 percent to $532 million from $467.3 million in the second quarter 2009 primarily due to the following:
Higher defense and space OE and aftermarket sales of approximately $62 million, across most businesses, including sales associated with the acquisition of AIS which occurred in December 2009; and higher other aerospace and non-aerospace sales of approximately $6 million primarily in the sensors and integrated systems and engine controls and electrical power systems businesses.
Electronic Systems segment operating income for the second quarter 2010 increased 29 percent to $95.1 million from $73.9 million in the second quarter 2009 primarily due to the following:
Higher sales volume partially offset by unfavorable product mix across most businesses, which resulted in higher income of approximately $14 million; and favorable foreign exchange, including remeasurement of monetary assets/liabilities, of approximately $8 million; partially offset by higher operating costs across all businesses, including incremental costs associated with our recent acquisitions, offset by favorable pricing primarily in our sensors and integrated systems and engine controls and electrical power systems businesses.
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