Goodrich Rides Past Estimates - Analyst Blog
February 02 2012 - 10:00AM
Zacks
Before the markets opened, Goodrich Corporation
(GR) announced its fourth quarter and fiscal 2011 results. Its
fourth quarter earnings were $1.85 per share handsomely surpassing
both the Zacks Consensus Estimate of $1.57 and the year-ago number
of $1.16 per share. The results were driven by sales growth in the
company’s all the major market channels, and strong operational
performance.
Goodrich reported fiscal 2011 earnings per share of $6.33 versus
$4.51 in the year-ago quarter and the Zacks Consensus Estimate of
$5.99. The year-over-year increase reflects higher sales growth in
all of the company's major market channels, strong operational
performance, cost reduction initiatives, higher favorable changes
in estimates for certain long-term contracts and lower pension
expense.
Revenue
Goodrich's total operating revenue in fourth quarter 2011 was
$2,145.0 million, up 19% from $1,806.2 million in the year-ago
quarter. The results of the company were also higher than the Zacks
Consensus Estimate of $2,126 million.
In fiscal year 2011, total operating revenue was $8,074.9
million versus $6,966.9 million in fiscal year 2010 and the Zacks
Consensus Estimate of $8,069.0 million.
Segmental Revenue
Actuation and Landing
Systems: In fourth quarter 2011,
revenues from this division rose 24% to $791.3 million from $639.2
million in the year-ago quarter. The segment’s operating income of
$113.3 million increased 78% from $63.7 million in the fourth
quarter 2010. Operating margin rose to 14.3% from 10.0% in the
year-ago quarter.
Nacelles and Interior
Systems: In fourth quarter 2011,
revenues from this division rose 20% to $746.4 million from $623.6
million in the year-ago quarter. Segmental operating income shot up
36% to $203.1 million from $148.9 million in the year-ago quarter.
Operating margin also rose to 27.2% from 23.9% in the year-ago
quarter.
Electronic Systems: In fourth quarter
2011, revenues from this division rose 12% to $607.3 million from
$543.4 million in the year-ago quarter. Segmental operating income
climbed 45% to $105.3 million from $72.7 million in the year-ago
quarter. Operating margin increased to 17.3% from 13.4% in the
year-ago quarter.
Financial Update
Goodrich ended fiscal 2011 with cash and cash equivalents of
$987.0 million versus $798.9 million at fiscal-end 2010. Long-term
debt and capital lease obligations at fiscal-end 2011 was $2,374.4
million versus $2,352.8 million at fiscal-end 2010.
In fourth quarter 2011, Goodrich reported net cash from
operating activities of $455 million, an increase of $568 million
from the same period in 2010. The increase was due primarily
to lower pension contributions, higher income from continuing
operations and favorable changes in working capital. During
the fourth quarter 2011, Goodrich contributed $10 million to its
worldwide pension plans, compared with contributions of $313
million in the fourth quarter 2010. Capital expenditures were $140
million in the reported quarter compared with capital expenditures
of $123 million in the fourth quarter 2010.
In fiscal year 2011 net cash from operating activities was $863
million, an increase of $571 million from the same period in
2010. The increase was due primarily to lower pension
contributions and higher income from continuing operations.
During fiscal year 2011, Goodrich contributed $91 million to its
worldwide pension plans, compared with contributions of $444
million in fiscal year 2010. Capital expenditures were $318
million during fiscal year 2011, compared with capital expenditures
of $222 million during fiscal year 2010.
Outlook
Earlier in September 2011, United Technologies
Inc. (UTX) had announced that it would acquire Goodrich
for $18.4 billion. The deal is expected to close by the first half
of 2012, subject to regulatory approvals and shareholder vote for
merger approval scheduled for March 13, 2012.
Goodrich currently retains a Zacks #3 Rank (Hold rating), which
is supported by our longer-term Neutral recommendation.
GOODRICH CORP (GR): Free Stock Analysis Report
UTD TECHS CORP (UTX): Free Stock Analysis Report
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