Goodrich Sees 2011 Growth Even With Possible 787 Delay
Goodrich Corp., an aerospace-parts maker, expects recovery in all its commercial and defense markets next year, even with a possible seventh delay to Boeing Co.’s 787 Dreamliner.
Goodrich is seeing “very solid, organic growth in every one of our market segments,” Chief Executive Officer Marshall Larsen said today at the Credit Suisse Aerospace & Defense Conference in New York. Larsen said he’s working to improve profit margins through more efficient production as well as manufacturing in lower-cost countries.
Earnings next year will reach as much as $5.20 per share, he said, matching the Charlotte, North Carolina-based company’s October forecast.
A possible seventh delay to the 787 Dreamliner, after a fire last month hampered flight testing, will have no effect on Goodrich’s 2011 profit because margins in the early stages of a plane program are very low, Larsen said after his presentation.
Goodrich should find out in the near future whether its bid for more work on Airbus SAS’s single-aisle A320, which is offering new engines, was accepted, Larsen said. Research and development costs for any work Goodrich wins have been built into the forecast, he said.
Goodrich climbed 74 cents to $86.64 at 4:15 p.m. in New York Stock Exchange composite trading. The shares have gained 35 percent this year.
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