EXHIBIT 99.1
[GOODRICH LOGO]
NEWS RELEASE
MEDIA CONTACT: PATTY MEINECKE
PHONE: 704 423 7060 GOODRICH CORPORATION
Four Coliseum Centre
2730 West Tyvola Road
Charlotte, NC 28217-4578
Tel: 704 423 7000
INVESTOR CONTACT: PAUL GIFFORD Fax: 704 423 7127
PHONE: 704 423 5517 www.goodrich.com
GOODRICH EXPECTS IMPROVED 2001 RESULTS AND 2002 OUTLOOK
- - 2001 earnings per share from continuing operations expected to exceed
$2.80, excluding special items; expectations for 2002 earnings per share
from continuing operations increased to $2.45 - $2.55, excluding special
items.
- - Strong growth in free cash flow expected for 2002.
- - Significant progress made on spin-off of Engineered Industrial Products
business.
CHARLOTTE, NC, December 13, 2001 - Goodrich Corporation announced today that it
expects improved 2001 and 2002 results and that the company has made significant
progress on the spin-off of its Engineered Industrial Products (EIP) business.
Full-year 2001 earnings per share from continuing operations, excluding special
items, are expected to exceed $2.80, well above the company's prior guidance of
$2.65 - $2.75. Continuing operations excludes the company's EIP business as well
as the former Performance Materials segment. Special items include
merger-related and consolidation costs, gains or losses on sold businesses,
asset impairment charges and other restructuring costs.
This improved outlook is a result of higher than previously expected revenues,
primarily related to global sales of aircraft spare parts and aftermarket
services, and to aggressive cost control at all levels of the company. Sales
from continuing operations for 2001 are expected to be approximately $4.15
billion. Including the earnings contribution from EIP and excluding special
items, Goodrich expects that its diluted earnings per share for 2001 will exceed
$3.10, also above the company's prior guidance of $3.00 to $3.10.
An improved outlook for sales of the company's products is contributing to
higher expectations for 2002. Based on current forecasts, Goodrich expects 2002
earnings per share from continuing operations, excluding special items, to be in
the range of $2.45 - $2.55.
Based on these forecasts and an increasing emphasis on improving cash flow,
Goodrich expects free cash flow (operating cash flow from continuing operations
adjusted for cash payments related to special items, less capital expenditures)
in 2002 to be higher than net income, in the range of $275 - $300 million for
continuing operations. This improved expectation for cash flow is the result of
a continued aggressive focus on working capital management and reduced capital
expenditures. Free cash flow expectations for 2001 are unchanged at $175 - $200
million, including EIP. Free cash flow for 2001 excluding EIP is expected to be
slightly higher.
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The 2002 outlook also includes the expected benefit from the company's
restructuring activities, which were announced in late October. The intent of
the restructuring actions is to align capacity with current customer demand. The
pretax restructuring charges are now expected to be in the range of $210 - $230
million, including a charge associated with a reduced outlook for the Boeing 717
program. These charges exceed the prior forecast of $110 - $130 million for 2001
- - 2002 because the company plans additional facility closings and greater
non-cash asset impairment charges. As previously announced, these restructuring
activities should be essentially completed by mid-2002. Non-cash charges are
expected to represent approximately 70% of the total amount.
Goodrich also announced that it has made significant progress in the spin-off of
its EIP business. The initial SEC filings are now expected in January. The
senior management team and the board of directors are being finalized and will
be announced in the next few weeks. Significant progress has also been made in
establishing stand-alone financing for the new company, whose stock is expected
to be traded on the NYSE. The spin-off is expected to be completed early in the
second quarter 2002. The new industrial company will include substantially all
the assets and liabilities of the EIP segment, including the associated asbestos
liabilities and related insurance.
Goodrich will host a conference call to discuss its 2001 and 2002 outlook and
the EIP spin-off on Friday, December 14, 2001, at 11:00 a.m. EST. The conference
call will be webcast and accessible via the Goodrich web site at
www.goodrich.com.
Goodrich Corporation (NYSE: GR) is a leading worldwide supplier of aerospace
components, systems and services. The company plans to spin off its Engineered
Industrial Products business to shareholders in 2002. Goodrich is ranked by
Fortune magazine as one of the "Most Admired" aerospace companies and is
included on Forbes magazine's "Platinum List" of America's best big companies.
Headquartered in Charlotte, North Carolina, the company currently employs 23,000
people worldwide. For more information, please visit www.goodrich.com.
(Part of this announcement contains forward-looking statements that involve
risks and uncertainties, and actual results could differ materially from those
projected in the forward-looking statements. The risks and uncertainties are
detailed from time to time in reports filed with the Securities and Exchange
Commission, including but not limited to the last section of the Management's
Discussion and Analysis entitled "Forward-Looking Information is Subject to Risk
and Uncertainty" contained in the company's Annual Report on Form 10-K filed on
February 23, 2001 and its Quarterly Report on Form 10-Q for the quarter ended
September 30, 2001.)
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