BF Goodrich Reports Earnings
16 April 1998
BF Goodrich Reports Significantly Increased Earnings from Continuing Operations
RICHFIELD, Ohio, April 16 -- The BFGoodrich Company
today reported an increase of more than 80 percent in income from
continuing operations for the first quarter of 1998. Income from continuing
operations in the 1998 first quarter was $54.2 million, or 72 cents a diluted
share, compared with $29.8 million, or 40 cents a diluted share, in the first
quarter a year ago.
Sales for the 1998 first quarter were $937.7 million, an increase of
23 percent, from $764.2 million in the 1997 first quarter.
Commenting on the Company's first-quarter performance, BFGoodrich Chairman
and Chief Executive Officer David L. Burner, said: "As we continue to create
value for our shareholders, we are focused on consistently delivering on our
commitments and demonstrating results as an earnings growth company. We are
off to an excellent start in 1998, and we are on target to achieve another
year of strong earnings growth."
For the first quarter of 1998, the Company reported net income of
$52.6 million, or 70 cents a diluted share, compared with $93.9 million, or
$1.27 a diluted share, in the 1997 quarter. Net income in the first quarter
of 1998 included a $1.6 million after-tax charge related to a business
previously divested and reported as a discontinued operation. The 1997 first
quarter included after-tax earnings of $64.1 million, or 87 cents a diluted
share, from discontinued operations.
BFGoodrich Aerospace had operating income of $87.9 million on sales of
$685.3 million in the first quarter of 1998. This compared to operating
income of $55.0 million and sales of $541.5 million in the first quarter of
1997. The Aerospace Segment continued to benefit from the upturn in
commercial aircraft production and from increased sales of replacement parts.
The continuation of various productivity and cost reduction initiatives also
contributed to improved operating margins. All four aerospace businesses had
improved results, with the aerostructures and sensors and integrated systems
businesses achieving substantial increases in operating income. The
maintenance, repair and overhaul business recorded positive results due to
both increased volume and improved productivity.
BFGoodrich Specialty Chemicals had operating income of $36.6 million on
sales of $252.4 million in the first quarters compared with operating income
of $31.1 million and sales of $222.7 million a year ago. The specialty
additives business had a significant improvement in performance due to higher
volumes and lower raw material costs. The specialty plastics business
achieved a substantial operating income gain with strong demand for
thermoplastic polyurethanes more than offsetting volume softness in high-heat-
resistant plastics.
(Part of this release contains forward-looking statements, and actual
results could differ materially from those projected in the forward-looking
statements. Please see 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 1997 Annual Report on Form 10-K filed
with the Securities and Exchange Commission.)
BFGoodrich provides aircraft systems and services and manufactures
specialty chemicals.
The following tables provide more detailed information about BFGoodrich
first quarter results.
THE BFGOODRICH COMPANY
(Dollars in millions except per share amounts)
Three Months Ended
March 31
1998 1997
Sales (from Continuing Operations) $937.7 $764.2
Income from Continuing Operations
before Income Taxes and Trust
Distributions 92.3 51.8
Income Tax Expense (35.5) (19.4)
Distributions on Trust Preferred
Securities (2.6) (2.6)
Income from Continuing Operations 54.2 29.8
Income (Loss) from Discontinued
Operations (1.6) 64.1
Net Income $52.6 $93.9
Income (Loss) Per Share:
Basic
Continuing Operations $.74 $.42
Discontinued Operations (.02) .91
Net Income .72 1.33
Diluted
Continuing Operations .72 .40
Discontinued Operations (.02) .87
Net Income .70 1.27
Weighted - Average Number
of Shares Outstanding
(in millions):
Basic 72.8 70.7
Diluted 75.0 74.2
SEGMENT REPORTING
(Dollars in millions)
Three Months Ended
March 31
1998 1997
Sales:
Aerospace:
Aerostructures $302.6 $209.9
Landing Systems 142.9 115.8
Sensors & Integrated Systems 140.2 126.0
Maintenance, Repair & Overhaul 99.6 89.8
Total 685.3 541.5
Specialty Chemicals:
Specialty Plastics 83.8 76.7
Specialty Additives 168.6 146.0
Total 252.4 222.7
Totals $937.7 $764.2
Segment Operating Income:
Aerospace:
Aerostructures $39.5 $22.5
Landing Systems 15.9 13.3
Sensors & Integrated Systems 28.0 15.5
Maintenance, Repair & Overhaul 4.5 3.7
Total 87.9 55.0
Specialty Chemicals:
Specialty Plastics 11.8 9.8
Specialty Additives 24.8 21.3
Total 36.6 31.1
Totals $124.5 $86.1
SOURCE The BFGoodrich Company