By Christopher Hinton
NEW YORK (Dow Jones) -- Aeronautics provider Goodrich Corp.
posted a strong fourth-quarter on Wednesday, but lowered its 2009
outlook on higher pension expenses and concern over the falling
air-traffic demand.
For the recent quarter, the Charlotte, N.C., company (GR)
reported fourth-quarter earnings rose 29% to $168.7 million, or
$1.35 a share, from $131.2 million, or $1.03 a share, in the
year-earlier quarter. Shares outstanding fell 24% to 124.6
million.
The supplier of systems and services for commercial aerospace
and defense said sales reached $1.7 billion from $1.67 billion,
helped by an increase in after-market demand.
A survey of analysts by FactSet Research produced consensus
estimates of $1.01 of profit on sales of $1.72 billion.
For 2009, Goodrich cut its expectations for earnings to a range
of $4.50 to $4.90 a share, compared with its prior estimate of
$5.05 to $5.25 a share. FactSet's survey for 2009 had been looking
for $4.85 a share.
The new view reflects updated estimates of pension costs,
including a pre-tax expense of $110 million, or 55 cents a share,
and a $150 million to $200 million contribution towards the
plan.
Furthermore, seat capacity among the world's airlines are
expected to decline 4% for 2009 as the economy continues to
contract, with the largest reduction occurring in the first
quarter, Chairman and Chief Executive Marshall Larsen on a
post-earnings call.
Much of that reduction, however, will be offset by inclusion of
more fuel-efficient planes in the global fleet, such as the Airbus
A320 and Boeing 777.
"A significant majority of our aftermarket sales are from these
newer airplanes, while a relatively small amount of our aftermarket
sales are from the models most likely to be retired," Larsen
said.
Sales for 2009 should come in at $7.1 billion to $7.2 billion,
up from the $7.06 billion posted last year.
"We continue to expect commercial airplane original equipment
sales growth for Goodrich in 2009, compared to 2008, as Boeing (BA)
and Airbus are expected to deliver more new airplanes in 2009 than
they delivered in 2008," Larsen added.
On Tuesday, rival Rockwell Collins (COL) also lowered its
outlook and said it would cut jobs to offset a severe slump in
business jet demand.
Shares of Goodrich were practically flat at last check at $39.12
each.
Airbus is a unit of the European Aeronautic Defence & Space
Co. (EADSY)(EADSY)
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