Goodrich announced results for the fourth quarter and full year 2004. The company also reiterated its prior outlook for 2005.
Commenting on the company’s performance, Marshall Larsen, Chairman, President and CEO said, “The fourth quarter 2004 included several positive developments for Goodrich, including the continuation of strong sales growth in all of our segments and market channels. Total sales grew 12 percent compared to the fourth quarter 2003.
Sales of original equipment products to Boeing and Airbus grew by more than 12 percent, total military and space sales grew almost 14 percent and commercial aftermarket sales continued to grow with an increase of almost 7 percent during the quarter. We were awarded important new program positions that should fuel consistent long-term growth. During the quarter, we negotiated a $99 million partial settlement with Northrop Grumman relating to our acquisition of TRW Aeronautical Systems, and used the proceeds to increase the funding of our pension plan and to retire additional long-term debt. We anticipate a strong year for Goodrich in 2005, and expect both our top-line and bottom-line to benefit from the continued recovery in our commercial aerospace business.”
For the full year 2004, the company reported net income of $172 million, or $1.43 per diluted share, on sales of $4,725 million. For the full year 2003, net income was $100 million, or $0.85 per diluted share, on sales of $4,383 million.
Sales increased $342 million, or 8 percent, as the company experienced growth in all market channels and for all reportable segments. Approximately $84 million of the sales increase resulted from foreign currency translation. The full year 2004 earnings results include after tax charges for the partial settlement with Northrop Grumman, early conclusion of Boeing 717 production, premiums and associated costs related to the early retirement of long-term debt, asset impairment, and facility closure and headcount reductions as detailed in the following table. For the full year 2004, Goodrich reported a lower than expected effective income tax rate of 22 percent, reflecting favorable state and foreign tax settlements, adjustments related to state income taxes and to the finalization of its 2003 federal tax return, offset in part by additional reserves for certain income tax issues.
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