EXHIBIT 99.2
Excerpts from Goodrich Corporation written materials dated February 7, 2003 captioned “Fourth Quarter and Full Year 2002 Performance Review”.
New Segment Organization Structure
Expected 2003 Sales – continuing operations only
Airframe Systems | Approx. | $ | 1.8B | |
Engine Systems | Approx. | $ | 1.5B | |
Electronic Systems | Approx. | $ | 1.1B |
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Expectations for Goodrich 2003 Sales
Full Year 2002 | |||||||||
Goodrich | Avg. Expected | ||||||||
Mix | 2003 Growth | ||||||||
Boeing & Airbus OE Production | 25 | % | (15 - 20%) | ||||||
Commercial A/C Aftermarket | 25 | % | Flat, up slightly | ||||||
Regional, Business & GA OE & Aftermarket | 13 | % | Flat | ||||||
Military and Space — OE & Aftermarket | 26 | % | 5 - 10% | ||||||
Heavy Airframe Maintenance | 4 | % | (5%) | ||||||
IGT & Other | 7 | % | (0 – 5%) | ||||||
Expected Organic Growth | Relatively Unchanged | ||||||||
Asset Dispositions | (2 – 4%) | ||||||||
Goodrich Total – 2003 Sales Expectations | $4.4 – 4.5B |
2
2003 EPS Guidance
EPS from Continuing Operations – Excluding Special Items
2002 EPS | $ | 2.31 | |||
Range of Change: | |||||
Segment OI Growth | +$.45 – $.55 | ||||
Pension Expense | ($.25) | ||||
Corp. & Other | ($.10) – ($.15) | ||||
Interest Expense | ($.33) – ($.38) | ||||
Noveon PIK Note Income | ($.02) | ||||
Divested Businesses | ($.05) – ($.10) | ||||
New Equity Issuance | ($.16) – ($.23) | ||||
2003E EPS | $1.70 - $1.85 |
3
Free Cash Flow – 2002 Results and 2003 Expectations
(Dollars in Millions) | |||||||||||||
Forecast | |||||||||||||
4Q 2002 | 2002 | 2003 | |||||||||||
Net Income – excluding special items | $ | 72 | $ | 244 | $ | 200 - 220 | |||||||
Depreciation and amortization | $ | 63 | $ | 184 | $ | 230 - 240 | |||||||
Capital Expenditures | $ | (51 | ) | $ | (107 | ) | $ | (150 – 170 | ) | ||||
All Other | $ | 59 | $ | 166 | $ | (20 – 40 | ) | ||||||
Free Cash Flow | $ | 143 | $ | 487 | $ | 250 - 280 | |||||||
Net Income Conversion | 199 | % | 200 | % | 115% - 130 | % | |||||||
Other Items | |||||||||||||
Special Items (Restructuring Cash) | $ | (11 | ) | $ | (55 | ) | $ | (35 – 45 | ) | ||||
Common Dividends | $ | (20 | ) | $ | (97 | ) | $ | (95 | ) | ||||
Distribution on Trust Preferred Securities | $ | (3 | ) | $ | (11 | ) | $ | (11 | ) |
4
2003 Outlook — Continuing Operations
2001 to | |||||||||||||||||
2002 | |||||||||||||||||
Actual | Actual | % | 2003 | ||||||||||||||
2001 | 2002 | Change | Outlook | ||||||||||||||
Sales | $ | 4.2 | B | $ | 3.9 | B | (7 | %) | Plus 13% to 15% | ||||||||
Segment Operating Margins* | 15.4 | % | 13.6 | % | (12 | %) | Decline Slightly | ||||||||||
Diluted E.P.S. – Continuing operations, excl. special items and goodwill amortization | $ | 3.08 | $ | 2.31 | (25 | %) | $ | 1.70 – $1.85 | |||||||||
Free Cash Flow – excl. special items | $ | 223 | M | $ | 487 | M | +118 | % | $ | 250 – 280M |
* | Results from continuing operations, excluding special items |
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