BFGoodrich plans to change its name to Goodrich, to underline the completion of its transformation from a tyre company to a major player in the aerospace and industrial sectors.
The new name and logo is intended to distance the company from the tyre business, which it exited in 1986 but which continues to use the BFGoodrich brand. The change is also intended to reflect a corporate transformation which has seen aerospace increase from 7% of sales in 1985 to 84% today.
Goodrich chairman and chief executive David Burner says the transformation is "essentially complete" with the 28 February sale of the company's Performance Materials business to an investor group for around $1.4 billion. Excluding Performance Materials, the company's sales last year were $4.3 billion - $3.7 billion from aerospace and the rest from engineered industrial products.
Aerospace sales have grown from less than $300 million in 1985 as a result of an aggressive programme of acquisitions, culminating in 1999 with the Coltec merger which saw the company move its headquarters from Akron, Ohio, to Charlotte, North Carolina.
"The big transformation for the company is essentially complete," says Burner. "The aerospace and industrial segments provide a solid base for growth." Proceeds from the Performance Materials sale, including $1 billion in cash, will be used to reduce debt, but the company remains on the acquisition trail in both the aerospace and industrial sectors.
Burner says the Goodrich name was chosen because of the strength of its reputation in aerospace. "We want to extend that reputation to the industrial sector," he says. Other candidate names included BFG and Inrich. BFG did not distance the company enough from the tyre business, insiders says, while Inrich - intended to suggest innovation - was given the thumbs down by customers.
Source: Flight International
