Goodrich yesterday recorded a $15.1 million pretax charge on its previously recorded 2003 financial results following Pratt & Whitney's decision to halve an order for PW4000 engine nacelle components.
The revision, which includes a $7 million inventory excess charge and $8.1 million for forward losses, reduces Goodrich's fourth quarter 2003 net income to $23 million on sales of $1.13 billion, and full year 2003 net income to $100 million on $4.38 billion revenue – a reduction of $10 million on previously reported net incomes.
Goodrich says in a statement the order was revised by P&W on 16 February. With the change, Goodrich will now supply 45 shipsets through early 2005, half the 90 shipsets to 2009 originally forecast by the manufacturer. A Goodrich spokeswoman, citing company policy, could not provide any more details.
A P&W spokeswoman says: "We exercised a condition not to order more than a certain amount of units."
Source: Flight Daily News
