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EXHIBIT 99.4
UNAUDITED PRO FORMA CONDENSED COMBINED FINANCIAL STATEMENTS
The unaudited pro forma condensed combined statements of income for the six
month periods ended June 30, 1999 and 1998 and the unaudited pro forma condensed
combined balance sheet at June 30, 1999 give effect to the merger of The
B.F.Goodrich Company and Coltec Industries Inc as though Coltec had always been
a part of BFGoodrich.
The unaudited pro forma combined financial data is presented for informational
purposes only. They are not necessarily indicative of the results of operations
or of the financial position which would have occurred had the merger been
completed during the periods or as of the date for which the pro forma data are
presented. They are also not necessarily indicative of the Company's future
results of operations or financial position. In particular, BFGoodrich expects
to realize significant operating cost savings as a result of the merger. No
adjustment has been included in the pro forma combined financial data for these
anticipated operating cost savings nor for the one-time merger and
consolidation costs expected to be incurred upon consummation of the merger.
BFGoodrich is still in the process of reviewing the respective accounting
policies of the two companies to determine if they are consistent or if they
need to be conformed. As a result of this review, the historical financial
statements may need to be restated to conform to those accounting policies that
are most appropriate. No restatements of prior periods have been included in
the unaudited pro forma combined financial data.
Pro forma per share amounts for the combined company are based on the exchange
ratio of 0.56 of a share of BFGoodrich common stock for each share of Coltec
common stock.
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UNAUDITED PRO FORMA CONDENSED COMBINED BALANCE SHEET
June 30, 1999
(In millions of dollars)
The
BFGoodrich Coltec Pro Forma Pro Forma
Company Industries Adjustments Combined
------------ ----------- ----------- -----------
ASSETS
Current Assets
Cash and cash equivalents $ 96.9 $ 28.8 $ $ 125.7
Short-term investments --
Accounts and notes receivable, net 678.4 211.1 889.5
Inventories 739.7 242.3 982.0
Deferred income taxes 151.4 24.3 175.7
Prepaid expenses and other assets 36.5 81.3 117.8
----------- ----------- ----------- -----------
Total Current Assets 1,702.9 587.8 -- 2,290.7
----------- ----------- ----------- -----------
Property, plant, and equipment, net 1,264.4 301.6 1,566.0
Deferred Income Taxes 13.6 -- 13.6
Prepaid Pension 138.5 -- 51.5 190.0
Goodwill 797.6 211.9 1,009.5
Identifiable Intangible Assets 110.8 -- 110.8
Other Assets 266.1 106.9 373.0
----------- ----------- ----------- -----------
$ 4,293.9 1,208.2 51.5 5,553.6
=========== =========== =========== ===========
LIABILITIES AND SHAREHOLDERS' EQUITY
Current Liabilities
Short-term bank debt $ 39.3 $ -- $ $ 39.3
Accounts payable 330.2 96.2 426.4
Accrued expenses 422.1 286.5 708.6
Income taxes payable 55.3 -- 55.3
Current maturities of long-term debt --
and capital lease obligations 1.8 5.8 7.6
----------- ----------- ----------- -----------
Total Current Liabilities 848.7 388.5 -- 1,237.2
----------- ----------- ----------- -----------
Long-term Debt and Capital Lease Obligations 1,189.9 540.6 1,730.5
Pension Obligations 44.3 -- 32.7 77.0
Postretirement Benefits Other Than Pensions 333.7 -- 333.7
Other Non-current Liabilities 94.6 220.0 18.8 333.4
Deferred Income Taxes -- 148.1 148.1
Mandatorily Redeemable Preferred Securities of Trust 123.8 146.3 270.1
Shareholders' Equity
Common stock 382.2 0.7 176.6 559.5
Additional capital 548.4 647.1 (303.4) 892.1
Income retained in the business 806.7 (733.1) 73.6
Accumulated other comprehensive income (12.5) (22.0) (34.5)
Common stock held in treasury, at cost (65.9) (126.8) 126.8 (65.9)
Unearned compensation -- (1.2) (1.2)
----------- ----------- ----------- -----------
Total Shareholders' Equity 1,658.9 (235.3) -- 1,423.6
----------- ----------- ----------- -----------
$ 4,293.9 $ 1,208.2 $ 51.5 $ 5,553.6
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UNAUDITED PRO FORMA CONDENSED COMBINED STATEMENTS OF INCOME
For the Six Months Ended June 30, 1999
(In millions of dollars, except per share amounts)
Historical
Historical Coltec Pro Forma Pro Forma
BFGoodrich Industries Adjustments Combined
----------- ----------- ----------- -----------
Sales $ 2,117.3 $ 757.9 $ $ 2,875.2
Operating costs and expenses:
Cost of sales 1,517.3 530.0 2,047.3
Selling and administrative costs 331.3 109.5 440.8
Merger-related and consolidation costs 36.3 -- 36.3
----------- ----------- ----------- -----------
1,884.9 639.5 -- 2,524.4
----------- ----------- ----------- -----------
Operating income 232.4 118.4 -- 350.8
Interest expense (42.6) (25.2) (67.8)
Interest income 1.9 0.4 2.3
Gain on issuance of subsidiary stock -- 6.2 6.2
Other income (expense) - net (7.7) -- (7.7)
Interest expense and other, net -- -- --
----------- ----------- ----------- -----------
Income from continuing operations before income
taxes, Trust distributions, and extraordinary items 184.0 99.8 -- 283.8
Income tax expense (67.9) (33.9) (101.8)
Distributions on Trust preferred securities (5.2) (2.6) (7.8)
----------- ----------- ----------- -----------
Income from continuing operations 110.9 63.3 -- 174.2
Income from discontinued operations - net of taxes -- -- --
----------- ----------- ----------- -----------
Income before extraordinary items 110.9 63.3 -- 174.2
Extraordinary item - net of tax -- -- --
----------- ----------- ----------- -----------
Net income $ 110.9 $ 63.3 $ -- $ 174.2
=========== =========== =========== ===========
Basic earnings per share:
Continuing operations $ 1.49 $ 1.00 $ 1.59
Discontinued operations -- -- --
Extraordinary item -- -- --
----------- ----------- -----------
Net income $ 1.49 $ 1.00 $ 1.59
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Diluted earnings per share:
Continuing operations $ 1.48 $ 0.96 $ 1.56
Discontinued operations -- -- --
Extraordinary item -- -- --
----------- ----------- -----------
Net income $ 1.48 $ 0.96 $ 1.56
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Weighted average number of common and common
equivalent shares outstanding - in millions
Basic 74.5 63.1 109.8
Diluted 75.0 68.9 113.6
Dividends paid per common share $ 0.55 $ --
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UNAUDITED PRO FORMA CONDENSED COMBINED STATEMENTS OF INCOME
For the Six Months Ended June 30, 1998
(In millions of dollars, except per share amounts)
Historical
Historical Coltec Pro Forma Pro Forma
BFGoodrich Industries Adjustments Combined
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Sales $ 1,948.7 $ 769.2 $ $ 2,717.9
Operating costs and expenses:
Cost of sales 1,416.4 572.0 1,988.4
Selling and administrative costs 304.2 125.1 429.3
Merger-related and consolidation costs -- -- --
----------- ----------- ----------- -----------
1,720.6 697.1 -- 2,417.7
----------- ----------- ----------- -----------
Operating income 228.1 72.1 -- 300.2
Interest expense (37.1) (28.3) (65.4)
Interest income 3.8 -- 3.8
Gain on issuance of subsidiary stock -- 56.2 56.2
Other income (expense) - net (7.2) -- (7.2)
Interest expense and other, net -- -- --
----------- ----------- ----------- -----------
Income from continuing operations before income
taxes, Trust distributions, and extraordinary items 187.6 100.0 -- 287.6
Income tax expense (72.3) (34.0) (106.3)
Distributions on Trust preferred securities (5.2) (1.1) (6.3)
----------- ----------- ----------- -----------
Income from continuing operations 110.1 64.9 -- 175.0
Income from discontinued operations - net of taxes (1.6) -- (1.6)
----------- ----------- ----------- -----------
Income before extraordinary items 108.5 64.9 -- 173.4
Extraordinary item - net of tax -- (4.3) (4.3)
----------- ----------- ----------- -----------
Net income $ 108.5 $ 60.6 $ -- $ 169.1
=========== =========== =========== ===========
Basic earnings per share:
Continuing operations $ 1.50 $ 0.98 $ 1.59
Discontinued operations (0.02) -- (0.01)
Extraordinary item -- (0.06) (0.04)
----------- ----------- -----------
Net income $ 1.48 $ 0.92 $ 1.54
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Diluted earnings per share:
Continuing operations $ 1.46 $ 0.95 $ 1.55
Discontinued operations (0.02) -- (0.01)
Extraordinary item -- (0.06) (0.04)
----------- ----------- -----------
Net income $ 1.44 $ 0.89 $ 1.50
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Weighted average number of common and common
equivalent shares outstanding - in millions
Basic 73.1 65.9 110.0
Diluted 75.1 69.2 113.9
Dividends paid per common share $ 0.55 $ --