1
EXHIBIT 99.2
Excerpts from presentation materials to be delivered on May 15, 2001 at the
Credit Suisse First Boston/Aviation Week Aerospace Finance Conference by David
L. Burner, Chairman and Chief Executive 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.
2
FINANCIAL SUMMARY AND 2001 OUTLOOK
3
2001 OUTLOOK - CONTINUED OPERATIONS
Actual 2000 Outlook 2001 % Change
----------- ------------ --------
SALES ($M)
Aerospace $3.7 $4.2 +14%
Engineered Industrial 0.7 0.7 Relatively Flat
--- --- ---------------
Total $4.4 $4.9 +12 to 13%
SEGMENT OPERATING MARGINS 16.4% Around 15%
CORPORATE OPERATING MARGINS 14.6% Around 14%
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 assumes 860 - 880 unit commercial transport production, 5% RPM
growth
- - EIP assumes modest economic recovery; second half stronger than first
- - Slightly lower margins (Aerospace acquisitions, higher OE mix, new program/R&D
investments)
- - 34% effective tax rate for 2001
4
AEROSPACE
SEGMENT
5
AEROSPACE GROWTH FROM COMPLEMENTARY ACQUISITIONS
2000 - 2001 complementary acquisitions:
- ---------------------------------------
- - Humphrey, Inc.
- - Raytheon Optical Systems
- - Autoliv OEA Aerospace unit
- - Corning OCA
- - Engineered Products Co. (EPCO)
- - Advanced Creations, Inc. (ACI)
- - IBP Aerospace
- - Barnes Engineering
Sales from recent complementary acquisitions:
- ---------------------------------------------
1999 $ 0
2000 $ 18 million
2001 est. $ 197 million
Acquisitions since January 2000 should add 4% to 2001 growth rate
6
EXPECTED BFGOODRICH AEROSPACE GROWTH
1Q2001
Goodrich Avg. Expected
Mix 2000-02 Growth
--------------- ---------------
Boeing OE 18% 4%
Airbus OE 14% 11%
Regional & Business & GA OE 8% 15%
Military Aircraft OE 10% 5%
Space Payloads 3% 5%
Aftermarket 43% 5%
Other 4% 10%
--------------- ---------------
Expected Organic Growth 7%
New Products/Complementary Acq. 3 - 5%
--------
BFGoodrich Aerospace Total 10 - 12%
7
2001 AEROSPACE EXPECTATIONS
- - Goodrich Aerospace sales will increase significantly
- Commercial transport deliveries expected to increase this year and in
2002
- Aftermarket remains strong
- Recent acquisitions provide top and bottom-line growth
- - Complementary acquisitions will continue
- - Operating income margins decline slightly in 2001
- Investments will result in future profitable growth
- - Regional, Business, Military, General Aviation and Space markets
growing
Strong financial performance is expected to continue
8
GOODRICH - VALUE CREATION ROADMAP
[Presentation materials contains a slide showing the following information]
GOAL - 15% Annual EPS Growth. Factors:
- - SALES GROWTH: 10 - 12% Annually. Factors:
- ORGANIC GROWTH: 6 - 7% Annually
- COMPLEMENTARY ACQUISITIONS: 4 - 5% Annually
- - SEGMENT OPERATING MARGINS: 15 - 16% of Sales. Factors:
- COMPLEMENTARY ACQUISITIONS: Synergies
- PRODUCTIVITY IMPROVEMENT: 3 - 4% Annually
- R&D INVESTMENT: 4 - 5% of Sales
- - FREE CASH FLOW: Greater than 80% of Net Income.
- - CAPITAL STRUCTURE ENHANCEMENTS: Debt/Equity Mix.
OBJECTIVE: SUSTAINABLE VALUE CREATION