Goodrich has entered the final stage of its transformation from a multi-industry company to a pure aerospace supplier with the announcement it will spin off its Engineered Industrial Products business to shareholders. After the sale of its Performance Materials business this year, the divestment will leave Goodrich as a leading supplier of aerospace products and services with forecast revenues of $4.2 billion this year.
Goodrich acquired the Engineered Industrial Products segment in 1999 with the Coltec Industries merger. The yet-to-be named independent company, which will supply bearings, sealing products and compressor systems, will employ 5,000 people worldwide and is expected to have revenues of $800 million in 2002. The tax-free spin-off is scheduled to be completed early next year.
Goodrich chairman and chief executive David Burner says that establishing two independent companies will allow investors "to evaluate the merits of our aerospace and industrial businesses in the light of their respective performance and opportunities versus peer companies". Despite the economic slowdown, Burner has reconfirmed forecasts for growth in Goodrich's aerospace business this year. Only 30% of sales are to the large commercial aircraft manufacturers hardest hit by the downturn, while over 40% are in the aftermarket, which is continuing to perform well, he says.
Burner says that Goodrich will continue to look for acquisitions in aerospace and for expansion into adjacent markets.
Source: Flight International
