Goodrich Profits Fall 48 Percent
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CHARLOTTE, N.C. (AP) _ Aerospace parts maker Goodrich Corp. said Monday that its third-quarter profit fell 47.7 percent from a year ago, hurt by the slump in the commercial aerospace market and falling far short of Wall Street expectations.
Its shares fell as the company said earnings for the full year and next year may also come in below expectations.
Goodrich earned $46 million, or 45 cents per share, in the July-September period, down from $88 million, or 83 cents a share, in the same period last year. Sales fell to $882 million in the quarter from $1.05 billion a year ago.
Excluding special items, Goodrich earned $51 million, or 50 cents per share, in the third quarter. Analysts surveyed by the research firm Thomson First Call were expecting the company to earn 64 cents per share.
In morning trading on the New York Stock Exchange, Goodrich shares were down 4.8 percent, or 79 cents a share, to $15.70.
``Goodrich, as well as the entire industry, continues to experience weak market conditions in commercial aerospace that have negatively impacted our customers and demand for our products,″ said chairman and chief executive David Burner.
For the first nine months of the year, Goodrich earned $106.2 million, or $1.04 a share, down from $343.6 million, or $3.24 a share, a year ago. Revenue fell to $2.7 billion from $3.1 billion.
Goodrich said it expected to take a charge in the fourth quarter because weak financial markets have cause its pension plan to be underfunded. The charge could be as much as $285 million, the company said.
Goodrich forecast 2002 earnings per share of $2.30 on sales of $3.90 billion and $3.95 billion. In 2003, sales were expected to grow to $4.3 billion to $4.4 billion after the purchase of TRW Inc.’s aeronautical systems unit.
However, Goodrich said earnings per share could fall another 5 percent to 10 percent in 2003.
Thomson First Call’s survey indicated analysts had expected Goodrich to earn $2.47 a share in 2002 and $2.50 in 2003.