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EXHIBIT 99.2
Excerpts from presentation given on January 30, 2001 at the Bear Stearns 8th
Annual Commercial Aerospace Conference by Marshall O. Larsen, Executive Vice
President and Chief Operating Officer, Aerospace, and Ulrich Schmidt, Senior
Vice President and Chief Financial Officer, of The B.F.Goodrich Company.
Part of this presentation 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 and in
other filings.
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AEROSPACE
SEGMENT
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AEROSPACE SALES
1995 $2.3 billion
1996 $2.5 billion
1997 $3.0 billion
1998 $3.5 billion
1999 $3.6 billion
2000 $3.7 billion
2001 est. Approx. $4.2 billion
Top Line Growth Continues
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GROWTH FROM COMPLEMENTARY ACQUISITIONS
Recent complementary acquisitions:
- ----------------------------------
- - Raytheon Optical Systems
- - Autoliv OEA Aerospace unit
- - Corning OCA
- - Engineered Products Co. (EPCO)
- - Advanced Creations, Inc. (ACI)
- - IBP Aerospace
- - Barnes Engineering
- - Ithaco Space Systems
- - Boeing ACES II
- - Rohr Aero-services Asia (RASA)
- - Robotic Vision Systems, Inc. (RVSI)
- - Advanced MicroMachines (AMMI)
- - Universal Propulsion Co. (UPCO)
Sales from recent complementary acquisitions:
- ---------------------------------------------
1999 $ 61 million
2000 $ 104 million
2001 est. $ 330 million
2001 sales substantially increased due to Raytheon & OEA
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EXPECTED BFGOODRICH AEROSPACE GROWTH
BFGoodrich Avg. Expected
Mix 2000-02 Growth
---------- --------------
Boeing OE 19% 4%
Airbus OE 13% 11%
Regional & Business OE 6% 15%
Military Aircraft OE 8% 5%
Space Payloads 3% 5%
Aftermarket 47% 5%
Other 4% 10%
---------- --------------
Expected Organic Growth 7%
New Products/Complementary Acq. 1 - 3%
--------------
BFGoodrich Aerospace Total 8 - 10%
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AEROSPACE SEGMENT
FOCUS ON CONTINUED GROWTH
- - Segment continues to grow despite downturns in cycle
- - Productivity improvements more than offset pricing pressure.
- - Expect 12 - 13% revenue growth in 2001
- - Continued progress on new technologies and products
- Boeing Aces II, HUMS, Satellite Systems, Inflatabelt
- - Meaningful growth from complementary acquisitions
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FINANCIAL SUMMARY AND 2001 OUTLOOK
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FULL YEAR 2000 REVENUE AND
OPERATING INCOME
(DOLLARS IN MILLIONS)
Full Year 2000 Revenues - $4,364 *
Aerospace - 84%
Engineered Industrial - 16%
Full Year 2000 Operating Income - $714 *
Aerospace - 83%
Engineered Industrial - 17%
BFG is a leading Aerospace & Industrial Products Company
* Excludes special items
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FULL YEAR 2000 - FINANCIAL RESULTS
1999 2000 Change
Actual Actual
------ ------ -------
Sales $4,320M $4,364M $ 44M
Segment Ops Income $ 677 $ 714 $ 37
OI % of Sales 15.7% 16.4% N/M
- -----------------------------------------------------------------------------------------------
Net Income - as reported $ 170M $ 326M $ 156M
Net Income - Continuing
Operations,ex. special items $ 306M $ 318M $ 12M
- -----------------------------------------------------------------------------------------------
EPS - Diluted
Reported $ 1.53 $ 3.04 $ 1.51
Cont. Ops,
Excl. Special Items $ 2.75 $ 2.97 $ 0.22
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FULL YEAR 2000 - SEGMENT RESULTS
CONTINUING OPERATIONS
1999 2000 Change
Sales Actual Actual %
------ --------- ------
Aerospace $3,617M $ 3,674M 2%
Eng. Industrial $ 702 $ 690 (2%)
- --------------------------------------------------------------------------------
Total Sales $4,320M $ 4,364M 1%
- --------------------------------------------------------------------------------
Operating Income
Aerospace $ 559M $ 592M 6%
Eng. Industrial $ 118 $ 122 3%
- --------------------------------------------------------------------------------
Total Operating Income $ 677M $ 714M 5%
- --------------------------------------------------------------------------------
Operating Income Margins
Aerospace 15.4% 16.1% 5%
Eng. Industrial 16.8% 17.7% 5%
- --------------------------------------------------------------------------------
OI Margins - % 15.7% 16.4% 5%
- --------------------------------------------------------------------------------
Excludes special items
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2001 OUTLOOK - P.M. AS DISCONTINUED
Actual 2000 Outlook 2001 % Change
----------- ------------ --------
SALES ($M)
Aerospace $3.7 $4.2 +12 to 13%
Engineered Industrial 0.7 0.7 +2 to 3 %
---- ---- ----------
Total $4.4 $4.9 +10 to 12%
OPERATING MARGINS 14.6% 14.0-14.5%
DILUTED E.P.S.
- Book $2.97 $3.40-3.50 +13 to 17%
- Cash (Exclud. Goodwill) $3.13 $3.60-3.70 +13 to 17%
Assumptions:
- ------------
- - Aerospace includes Raytheon and OEA acquisitions, 860 - 880 unit commercial
transport production, 5% RPM growth
- - Modest EIP growth; second half stronger than first
- - Flatish margins (Aerospace acquisitions, higher OE mix, new program/R&D
investments)
- - P.M. proceeds (1Q closing): debt retirement + modest share repurchase
- - 34% effective tax rate (2000 and 2001)
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SUMMARY
- - Expect strong financial performance to continue
- - Strong Aerospace presence, franchise
- Excellent products, market positions and margins
- Multiple opportunities for top-line growth and margin
expansion
- Improving OE cycle, new proprietary products,
accretive acquisitions
- - Repositioned Engineered Industrial segment
- Strategic focus on top-line growth
- New product introductions
- Geographic expansion
- Targeted acquisitions
- Complete reorganization, consolidation initiatives