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CHARLOTTE, N.C., Feb. 2, 2012 /PRNewswire-FirstCall/ -- Goodrich Corporation (NYSE: GR) announced results today for the fourth quarter and full year 2011.

Commenting on the company's performance and its outlook, Marshall Larsen, Chairman, President and Chief Executive Officer said, "Goodrich's fourth quarter results provided us with an excellent finish to a very eventful 2011.  Thanks to the diligent efforts of all of our employees, we significantly exceeded expectations for earnings and cash flow for the fourth quarter and for the full year of 2011 and reached record levels of sales and profitability.

Our sales growth of 16 percent for the full year 2011 was very broad-based.  Our large commercial airplane original equipment sales grew by 18 percent as we continued to support production rate increases by Airbus and Boeing.  Our commercial aftermarket sales grew by 15 percent, and our defense and space sales grew by 10 percent, which included 6 percent organic growth.

"Propelled by strong sales growth in all of our market channels, we continued to achieve very high levels of segment operating income margin, delivering segment operating income margin of 19.7 percent for the fourth quarter and 18.5 percent for the full year 2011.  This impressive margin performance helped us achieve full year 2011 earnings per diluted share of $6.33, the highest level of EPS in our history.

"Looking forward to 2012, we continue to expect our merger with United Technologies to close in mid-2012.  As noted in our proxy, we continue to make progress on the regulatory filings, and our shareholder vote to approve the merger has been scheduled for March 13, 2012."

Goodrich reported fourth quarter 2011 net income of $238 million, or $1.85 per diluted share, on sales of $2,145 million.  In the fourth quarter 2010, the company reported net income of $148 million, or $1.16 per diluted share, on sales of $1,806 million.  Segment operating income margin for the fourth quarter 2011 was 19.7 percent.  

For the fourth quarter 2011 compared with the fourth quarter 2010, Goodrich sales changes by market channel were as follows:

    -Large commercial airplane original equipment sales increased by about 27 percent,  

    -Regional, business and general aviation airplane original equipment sales increased by about 17 percent, of which about 10 percent was organic growth,

    -Large commercial, regional, business and general aviation airplane aftermarket sales increased by about 20 percent, of which about 18 percent was organic growth, and

    -Defense and space sales of both original equipment and aftermarket products and services increased by about 12 percent.  Organic sales growth for this market channel was about 5 percent.   

The increase in net income is attributable primarily to the impact of sales growth in all of the company's major market channels, strong operational performance, and ongoing success on continuous improvement initiatives.  Other factors impacting performance are noted below:  

    -The fourth quarter 2011 results included lower pre-tax income of $2 million, $1 million after-tax or $0.01 per diluted share, related to the changes in estimates for certain long-term contracts primarily in our aerostructures and aircraft wheels and brakes businesses, compared to the fourth quarter 2010.  Total pre-tax changes in estimates for the fourth quarter 2011 were $25 million.  Changes in both periods were related primarily to favorable cost and operational performance, changes in volume expectations and sales pricing improvements and finalization of contract terms on current and/or follow-on contracts.

    -The fourth quarter 2011 results included higher pre-tax income of $19 million, $12 million after-tax or $0.09 per diluted share, related to lower world-wide pension plan expense, compared to the fourth quarter 2010.

    -The company reported an effective tax rate of 29.3 percent for the fourth quarter 2011, compared to an effective tax rate of 8.5 percent during the fourth quarter 2010.  The fourth quarter 2010 tax rate included a tax benefit related to a settlement with the California Franchise Tax Board concerning issues related to Goodrich and Rohr for all tax years through 2001 and the full year 2010 benefit of the R&D tax credit, which was renewed by the U.S. Congress in late 2010.

    -The fourth quarter 2010 results included pre-tax debt redemption costs of approximately $35 million, $22 million after-tax or $0.17 per diluted share.  There were no similar charges during the fourth quarter 2011. 

Net cash provided by operating activities, minus capital expenditures, for the fourth quarter 2011 was $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, compared to the fourth quarter 2010.  During the fourth quarter 2011, Goodrich contributed $10 million to its worldwide pension plans, compared to contributions of $313 million in the fourth quarter 2010. Capital expenditures were $140 million in the fourth quarter 2011, compared with capital expenditures of $123 million in the fourth quarter 2010.  

For the full year 2011, the company reported net income of $810 million, or $6.33 per diluted share, on sales of $8,075 million, compared to the full year 2010 net income of $579 million, or $4.51 per diluted share, on sales of $6,967 million.  

For the full year 2011 compared with the full year 2010, Goodrich sales changes by market channel were as follows:

    -Large commercial airplane original equipment sales increased by about 18 percent,  

    -Regional, business and general aviation airplane original equipment sales increased by about 42 percent, of which about 20 percent was organic growth,

    -Large commercial, regional, business and general aviation airplane aftermarket sales increased by about 15 percent, of which about 13 percent was organic growth, and

    -Defense and space sales of both original equipment and aftermarket products and services increased by about 10 percent.  Organic sales growth for this market channel was about 6 percent.   

The increase in net income is attributable primarily to the impact of sales growth in all of the company's major market channels, strong operational performance, ongoing success on continuous improvement and cost reduction initiatives, higher favorable changes in estimates for certain long-term contracts and lower pension expense, partially offset by merger-related costs, plant closure costs and acquisition-related costs.  Several of these factors are noted below:  

    -The full year 2011 results included lower pre-tax income of $36 million, $23 million after-tax or $0.18 per diluted share, related to the expected merger with United Technologies.  The pre-tax costs consist of $18 million of transaction-related costs, primarily for third party fees as well as approximately $18 million of increased share-based compensation expenses related to the increased share price.  

    -The full year 2011 results included pre-tax costs of $20 million, $13 million after-tax or $0.10 per diluted share related to a plant closure decision announced in June 2011.    

    -The full year 2011 results included pre-tax and after-tax costs of $9 million, or $0.07 per diluted share, associated with the Microtecnica and Winslow acquisitions.  

    -The full year 2011 results included higher pre-tax income of $10 million, $6 million after-tax or $0.05 per diluted share, related to the revision of estimates for certain long-term contracts primarily in our aerostructures and intelligence, surveillance and reconnaissance (ISR) businesses, compared to the full year 2010.  Total revisions in estimates for the full year 2011 were $108 million, pre-tax.  Revisions in both periods were primarily related to favorable cost and operational performance, changes in volume expectations and sales pricing improvements and finalization of contract terms on current and/or follow-on contracts.

    -The full year 2011 results included higher pre-tax income of $78 million, $49 million after-tax or $0.39 per diluted share, related to lower world-wide pension plan expense, compared to the full year 2010.

    -The company reported an effective tax rate of 29.7 percent for the full year 2011, compared to an effective tax rate of 27.4 percent for the full year 2010.  

    -The full year 2010 results included pre-tax debt redemption costs of approximately $35 million, $22 million after-tax or $0.17 per diluted share.  There were no similar charges during 2011.     

Net cash provided by operating activities, minus capital expenditures, for the full year 2011 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, compared to the full year 2010.  During the full year 2011, Goodrich contributed $91 million to its worldwide pension plans, compared to contributions of $444 million in the full year 2010.  Capital expenditures were $318 million for the full year 2011, compared with capital expenditures of $222 million in the full year 2010.  

The supplemental discussion and tables that follow provide more detailed information about the fourth quarter 2011 segment results.

Goodrich Corporation, a Fortune 500 company, is a global supplier of systems and services to aerospace, defense and homeland security markets.  With one of the most strategically diversified portfolios of products in the industry, Goodrich serves a global customer base with significant worldwide manufacturing and service facilities.  For more information visit http://www.goodrich.com/.