New York | 1-892 | 34-0252680 | ||
(State or other jurisdiction of incorporation) |
(Commission File Number) | (IRS Employer Identification No.) |
Four Coliseum Centre 2730 West Tyvola Road Charlotte, North Carolina |
28217 |
|
(Address of principal executive offices) | (Zip Code) |
o | Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) | |
o | Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) | |
o | Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) | |
o | Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
2
GOODRICH CORPORATION (Registrant) |
||||
Date: July 21, 2011 | By: | /s/ Scott E. Kuechle | ||
Scott E. Kuechle | ||||
Executive Vice President and Chief Financial Officer |
3
4
News Release | ||
Media Contact:
|
Goodrich Corporation | |
Lisa Bottle +1 704 423 7060
|
Four Coliseum Centre | |
Andrew Martin +1 704 423 7048
|
2730 West Tyvola Road | |
Charlotte, NC 28217-4578 | ||
Investor Relations:
|
Tel: 704 423 7000 | |
Paul Gifford +1 704 423 5517
|
Fax: 704 423 7002 | |
For Immediate Release |
www.goodrich.com |
| Second quarter 2011 sales grew 17 percent to $2,001 million, compared to second quarter
2010 sales of $1,718 million. |
| Second quarter 2011 commercial aftermarket sales grew 16 percent, compared to second
quarter 2010. |
| Second quarter 2011 net income per diluted share of $1.38, including landing gear plant
closure and Microtecnica acquisition-related costs totaling $0.14 per share, increased 11
percent compared to second quarter 2010 net income per diluted share of $1.24. |
| Full year 2011 outlook for
net income per diluted share increased to $5.85 $6.00,
including costs of $0.16 per diluted share associated with plant closure and Microtecnica
acquisition-related costs. The prior outlook was for net income per diluted share of $5.40
$5.55, which did not include the costs noted above. Excluding these costs, earnings
guidance for 2011 has increased by more than ten percent. |
| Sales are now expected to be about $8.1 billion, compared to the prior outlook of $7.8
billion. The outlook for net cash provided by operating activities, minus capital
expenditures, is unchanged and is expected to exceed 85 percent of net income. |
Page 2
| Large commercial airplane original equipment sales increased by 17 percent, |
| Regional, business and general aviation airplane original equipment sales increased by
58 percent, of which about 23 percent was organic growth, |
| Large commercial, regional, business and general aviation airplane aftermarket sales
increased by 16 percent, of which about 14 percent was organic growth. Sequentially,
commercial aftermarket sales were 6 percent higher than the first quarter 2011, and |
| Defense and space sales of both original equipment and aftermarket products and services
increased by 10 percent, including sales associated with the recent Microtecnica
acquisition. Organic sales growth for this market channel was 6 percent. |
| As previously announced, the company recorded pre-tax costs, related to a plant closure
decision, of $16 million, $10 million after-tax or $0.08 per diluted share, during the
second quarter 2011. The landing gear costs are included in the segment operating income
for Actuation and Landing Systems. |
| The second quarter 2011 results included pre-tax and after-tax costs of $7 million, or
$0.06 per diluted share, associated with the Microtecnica acquisition. These costs are
included in the segment operating income for Actuation and Landing Systems. |
| The second quarter 2011 results included lower pre-tax income of $12 million, $8 million
after-tax or $0.06 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 second quarter 2010. Total pre-tax changes in estimates for
the second quarter 2011 were $21 million. Changes 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 second quarter 2011 results included pre-tax expense of $19 million, $12 million
after-tax or $0.09 per diluted share, related to world-wide pension plan expense, compared
to pre-tax pension expense of $38 million, $24 million after-tax or $0.19 per diluted
share, recorded during the second quarter 2010. |
| The company reported an effective tax rate of 32.6 percent for the second quarter 2011,
compared to an effective tax rate of 32.1 percent during the second quarter 2010. |
| The second quarter 2011 results included higher pre-tax expenses of $14 million, $9
million after-tax, or $0.07 per diluted share, related to share-based compensation,
compared to the second quarter 2010. |
Page 3
| The first half 2011 results included pre-tax costs related to a plant closure decision,
of $16 million, $10 million after-tax or $0.08 per diluted share. The landing gear costs
are included in the segment operating income for Actuation and Landing Systems. |
| The first half 2011 results included pre-tax and after-tax costs of $8 million, or $0.06
per diluted share, associated with the Microtecnica acquisition. These costs are included
in the segment operating income for Actuation and Landing Systems. |
| The first half 2011 results included lower pre-tax income of $8 million, $5 million
after-tax or $0.04 per diluted share, related to the revision of estimates for certain
long-term contracts primarily in our aerostructures and aircraft wheels and brakes
businesses, compared to the first half of 2010. Total revisions in estimates for the first
half of 2011 were $41 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 first half 2011 results included pre-tax pension expense of $41 million, $26 million
after-tax or $0.20 per diluted share, compared to pre-tax pension expense of $81 million,
$51 million after-tax or $0.40 per diluted share, recorded during the first half 2010. |
| The company reported an effective tax rate of 28.5 percent for the first half of 2011,
compared to an effective tax rate of 34.6 percent for the first half of 2010. Compared to
the first half of 2010, first half 2011 results included a benefit of $21 million, or $0.17
per diluted share related to a tax settlement and the benefit of the U.S. R&D tax credit,
which had not been renewed in the first half of 2010. |
| The first half 2011 results included higher pre-tax expenses of $13 million, $8 million
after-tax, or $0.07 per diluted share, related to share-based compensation, compared to the
first half 2010. |
Page 4
| Goodrich announced that the ORS-1 satellite, built under contract to the U.S. Air Force,
was successfully launched. ORS-1 is the first satellite in the Operationally Responsive
Space program designed to support combatant command operations and will provide a
battlespace awareness capability supporting U.S. Central Commands mission needs. Goodrich
is the prime contractor for the ORS-1 satellite. |
| Goodrich announced that it completed the acquisition of Microtecnica, a leading provider
of flight control actuation systems for helicopter, regional and business aircraft, missile
actuation, and aircraft thermal and environmental control systems. Microtecnica employs
approximately 700 people at facilities in Italy and the UK. Major customers include
AgustaWestland, Alenia, Hamilton Sundstrand, Avio, Bombardier and Eurocopter. Microtecnica
is part of Goodrichs Actuation Systems business, within its Actuation and Landing Systems
segment. |
| Goodrich announced that it will close its Marble Avenue landing gear facility in
Cleveland, Ohio by the end of 2012, and will record pre-tax charges totaling approximately
$37 million of which 40 percent are non-cash. Approximately $20 million ($0.10 per diluted
share) is expected to be recorded in 2011 and approximately $15 million ($0.07 per diluted
share) is expected to be recorded in 2012. |
| Large commercial airplane original equipment sales are expected to increase about 15
percent. This outlook assumes all announced production rate increases are implemented, and
Boeing 787 and 747-8 deliveries are consistent with the latest schedule announced by
Boeing, |
| Regional, business and general aviation airplane original equipment sales are expected
to grow by about 40 percent, of which about 16 percent is organic growth, |
| Large commercial, regional, business and general aviation airplane aftermarket sales are
expected to increase by about 13 percent, of which about 12 percent is organic growth, and |
| Defense and space sales of both original equipment and aftermarket products and services
are expected to increase by about 15 percent, including sales associated with the
Microtecnica acquisition. Organic growth is expected to be about 10 percent. |
Page 5
| Pre-tax costs, related to the previously announced plant closure decision, of
approximately $20 million, $13 million after-tax or $0.10 per diluted share. The landing
gear costs are included in the segment operating income for Actuation and Landing Systems. |
| Pre-tax and after-tax costs of approximately $8 million, or $0.06 per diluted share,
associated with the Microtecnica acquisition. These costs are included in the segment
operating income for Actuation and Landing Systems. |
| Lower worldwide pre-tax pension expense of approximately $78 million, $49 million
after-tax or $0.39 per diluted share. For 2011, the company expects total worldwide
pre-tax pension expense of approximately $84 million, compared to $162 million in 2010. |
| A full-year effective tax rate of approximately 30 percent for 2011, which is unchanged
from our previous outlook. On average, Goodrich expects an effective tax rate of
approximately 32 percent for the remaining two quarters of 2011. |
Page 6
Page 7
| demand for and market acceptance of new and existing products, such as the Airbus A350
XWB, A320neo and A380, the Boeing 787, the EMBRAER 190, the Mitsubishi Regional Jet (MRJ),
the Bombardier CSeries, the Dassault Falcon 7X and the Lockheed Martin F-35 Lightning II
and the Northrop Grumman Joint STARS re-engining program; |
| our ability to maintain profitability on the aerostructures 787 OE contract with Boeing; |
| our ability to extend our commercial OE contracts beyond the initial contract periods; |
| cancellation or delays of orders or contracts by customers or with suppliers, including
delays or cancellations associated with the Boeing 787, the Airbus A380 and A350 XWB
aircraft programs, and major military programs, including the Northrop Grumman Joint STARS
re-engining program and the Lockheed Martin F-35 Lightning II; |
| our ability to obtain price adjustments pursuant to certain of our long-term contracts; |
| the financial viability of key suppliers and the ability of our suppliers to perform
under existing contracts; |
| the extent to which we are successful in integrating and achieving expected operating
synergies for recent and future acquisitions; |
| successful development of products and advanced technologies; |
| the impact of bankruptcies and/or consolidations in the airline industry; |
| the health of the commercial aerospace industry, including the large commercial,
regional, business and general aviation aircraft manufacturers; |
| global demand for aircraft spare parts and aftermarket services; |
Page 8
| changing priorities or reductions in the defense budgets in the U.S. and other
countries, U.S. foreign policy and the level of activity in military flight operations; |
| the possibility of restructuring and consolidation actions and the successful
implementation of any announced actions; |
| threats and events associated with and efforts to combat terrorism; |
| the extent to which changes in regulations and/or assumptions result in changes to
expenses relating to employee and retiree medical and pension benefits; |
| competitive product and pricing pressures; |
| our ability to recover under contractual rights of indemnification for environmental,
asbestos and other claims arising out of the divestiture of our tire, vinyl, engineered
industrial products and other businesses; |
| the effect of changes in accounting policies or legislation, including tax legislation; |
| cumulative catch-up adjustments or loss contract reserves on long-term contracts
accounted for under the percentage of completion method of accounting; |
| domestic and foreign government spending, budgetary and trade policies; |
| economic and political changes in international markets where we compete, such as
changes in currency exchange rates, interest rates, inflation, fuel prices, deflation,
recession and other external factors over which we have no control; |
| the outcome of contingencies including completion of acquisitions, joint ventures,
divestitures, tax audits, litigation and environmental remediation efforts; and |
| the impact of labor difficulties or work stoppages at our, a customers or a suppliers
facilities. |
Page 9
Quarter Ended June 30, | ||||||||||||||||||||
% | % of Sales | |||||||||||||||||||
2011 | 2010 | Change | 2011 | 2010 | ||||||||||||||||
(Dollars in millions) | ||||||||||||||||||||
NET CUSTOMER SALES |
||||||||||||||||||||
Actuation and Landing Systems |
$ | 736.7 | $ | 608.1 | 21 | % | ||||||||||||||
Nacelles and Interior Systems |
688.8 | 577.4 | 19 | % | ||||||||||||||||
Electronic Systems |
575.9 | 532.0 | 8 | % | ||||||||||||||||
Total Sales |
$ | 2,001.4 | $ | 1,717.5 | 17 | % | ||||||||||||||
SEGMENT OPERATING INCOME |
||||||||||||||||||||
Actuation and Landing Systems |
$ | 76.5 | $ | 60.5 | 26 | % | 10.4 | % | 9.9 | % | ||||||||||
Nacelles and Interior Systems |
178.2 | 151.4 | 18 | % | 25.9 | % | 26.2 | % | ||||||||||||
Electronic Systems |
89.8 | 95.1 | (6 | %) | 15.6 | % | 17.9 | % | ||||||||||||
Segment Operating Income |
$ | 344.5 | $ | 307.0 | 12 | % | 17.2 | % | 17.9 | % |
| Higher large commercial airplane OE sales of approximately $40 million, primarily in our
landing gear and actuation systems businesses; |
| Higher large commercial, regional, business and general aviation airplane aftermarket
sales of approximately $38 million, primarily in our aircraft wheels and brakes business; |
| Higher defense and space OE and aftermarket sales of approximately $20 million,
primarily in our aircraft wheels and brakes and actuation systems businesses, including
incremental sales associated with the Microtecnica acquisition in May 2011; |
| Higher other aerospace and non-aerospace sales of approximately $20 million, primarily
in our actuation systems and engine components businesses; and |
| Higher regional, business and general aviation airplane OE sales of approximately $11
million, primarily in our actuation systems business, including incremental sales
associated with the Microtecnica acquisition. |
Page 10
| Higher sales volume and favorable product mix across most businesses resulting in higher
income of approximately $39 million; and |
| Favorable pricing partially offset by higher operating costs across most businesses,
which resulted in higher income of approximately $2 million; partially offset by |
| Costs of approximately $16 million associated with the decision to close a facility in
our landing gear business; |
| Costs related to the acquisition of Microtecnica of approximately $7 million; and |
| Unfavorable foreign exchange, including remeasurement of monetary assets/liabilities, of
approximately $2 million. |
| Higher regional, business and general aviation airplane OE sales of approximately $40
million, primarily in our interiors and aerostructures businesses, including sales
associated with the acquisition of DeCranes cabin management assets in September 2010; |
| Higher large commercial, regional, business, and general aviation airplane aftermarket
sales of approximately $30 million, primarily in our interiors and aerostructures
businesses; |
| Higher large commercial airplane OE sales of approximately $29 million, primarily in our
aerostructures business; and |
| Higher defense and space OE and aftermarket sales of approximately $13 million,
primarily in our aerostructures business. |
| Higher sales volume and favorable product mix which resulted in higher income of
approximately $36 million, primarily in our aerostructures business; and |
| Favorable pricing, primarily in our aerostructures business, and lower operating costs,
primarily in our interiors business, which resulted in higher income of approximately $7
million; partially offset by |
Page 11
| Lower income of approximately $14 million related to revisions in estimates for certain
long-term contracts in our aerostructures business that were more favorable in 2010; and |
| Unfavorable foreign exchange, including remeasurement of monetary assets/liabilities, of
approximately $2 million. |
| Higher defense and space OE and aftermarket sales across all businesses of approximately
$22 million; |
| Higher large commercial, regional, business and general aviation airplane aftermarket
sales of approximately $16 million, primarily in our engine control and electrical power
systems and sensors and integrated systems businesses; |
| Higher large commercial airplane OE sales of approximately $7 million, primarily in our
sensors and integrated systems and engine control and electrical power systems businesses;
and |
| Higher regional, business, and general aviation airplane OE sales of approximately $6
million, primarily in our sensors and integrated systems and engine control and electrical
power systems businesses; partially offset by |
| Lower other aerospace and non-aerospace sales of approximately $7 million, primarily in
our sensors and integrated systems and engine control and electrical power systems
businesses. |
| Higher operating costs partially offset by favorable pricing, across all businesses,
which resulted in lower income of approximately $9 million; and |
| Unfavorable foreign exchange, including remeasurement of monetary assets/liabilities, of
approximately $5 million; partially offset by |
| Higher sales volume across most businesses, which resulted in higher income of
approximately $9 million. |
Page 12
Three Months | Six Months | |||||||||||||||
Ended | Ended | |||||||||||||||
June 30, | June 30, | |||||||||||||||
2011 | 2010 | 2011 | 2010 | |||||||||||||
Sales |
$ | 2,001.4 | $ | 1,717.5 | $ | 3,897.3 | $ | 3,412.7 | ||||||||
Operating costs and expenses: |
||||||||||||||||
Cost of sales |
1,384.2 | 1,172.9 | 2,694.7 | 2,377.2 | ||||||||||||
Selling and administrative costs |
314.3 | 269.3 | 599.4 | 539.2 | ||||||||||||
1,698.5 | 1,442.2 | 3,294.1 | 2,916.4 | |||||||||||||
Operating Income |
302.9 | 275.3 | 603.2 | 496.3 | ||||||||||||
Interest expense |
(34.5 | ) | (33.6 | ) | (69.1 | ) | (67.1 | ) | ||||||||
Interest income |
0.3 | 0.3 | 0.6 | 0.4 | ||||||||||||
Other income (expense) net |
(4.2 | ) | (4.4 | ) | (10.0 | ) | (10.8 | ) | ||||||||
Income from continuing operations before income taxes |
264.5 | 237.6 | 524.7 | 418.8 | ||||||||||||
Income tax expense |
(86.2 | ) | (76.3 | ) | (149.8 | ) | (144.9 | ) | ||||||||
Income From Continuing Operations |
178.3 | 161.3 | 374.9 | 273.9 | ||||||||||||
Income from discontinued operations net of income taxes |
| 0.1 | | 1.3 | ||||||||||||
Consolidated Net Income |
178.3 | 161.4 | 374.9 | 275.2 | ||||||||||||
Net income attributable to noncontrolling interests |
(1.7 | ) | (2.4 | ) | (3.5 | ) | (5.0 | ) | ||||||||
Net Income Attributable to Goodrich |
$ | 176.6 | $ | 159.0 | $ | 371.4 | $ | 270.2 | ||||||||
Amounts Attributable to Goodrich: |
||||||||||||||||
Income from continuing operations |
$ | 176.6 | $ | 158.9 | $ | 371.4 | $ | 268.9 | ||||||||
Income from discontinued operations net of income taxes |
| 0.1 | | 1.3 | ||||||||||||
Net Income Attributable to Goodrich |
$ | 176.6 | $ | 159.0 | $ | 371.4 | $ | 270.2 | ||||||||
Earnings per common share attributable to Goodrich: |
||||||||||||||||
Basic Earnings Per Share: |
||||||||||||||||
Continuing operations |
$ | 1.39 | $ | 1.25 | $ | 2.93 | $ | 2.12 | ||||||||
Discontinued operations |
| | | 0.01 | ||||||||||||
Net Income Attributable to Goodrich |
$ | 1.39 | $ | 1.25 | $ | 2.93 | $ | 2.13 | ||||||||
Diluted Earnings Per Share: |
||||||||||||||||
Continuing operations |
$ | 1.38 | $ | 1.24 | $ | 2.90 | $ | 2.10 | ||||||||
Discontinued operations |
| | | 0.01 | ||||||||||||
Net Income Attributable to Goodrich |
$ | 1.38 | $ | 1.24 | $ | 2.90 | $ | 2.11 | ||||||||
Dividends Declared Per Common Share |
$ | 0.29 | $ | 0.27 | $ | 0.58 | $ | 0.54 | ||||||||
Page 13
Three Months | Six Months | |||||||||||||||
Ended | Ended | |||||||||||||||
June 30, | June 30, | |||||||||||||||
2011 | 2010 | 2011 | 2010 | |||||||||||||
Sales: |
||||||||||||||||
Actuation and Landing Systems |
$ | 736.7 | $ | 608.1 | $ | 1,421.0 | $ | 1,221.2 | ||||||||
Nacelles and Interior Systems |
688.8 | 577.4 | 1,345.2 | 1,133.2 | ||||||||||||
Electronic Systems |
575.9 | 532.0 | 1,131.1 | 1,058.3 | ||||||||||||
Total Sales |
$ | 2,001.4 | $ | 1,717.5 | $ | 3,897.3 | $ | 3,412.7 | ||||||||
Operating Income: |
||||||||||||||||
Actuation and Landing Systems |
$ | 76.5 | $ | 60.5 | $ | 163.0 | $ | 129.9 | ||||||||
Nacelles and Interior Systems |
178.2 | 151.4 | 335.5 | 270.2 | ||||||||||||
Electronic Systems |
89.8 | 95.1 | 180.8 | 165.9 | ||||||||||||
Total Segment Operating Income (1) |
344.5 | 307.0 | 679.3 | 566.0 | ||||||||||||
Corporate General and Administrative Expenses |
(36.7 | ) | (27.7 | ) | (67.6 | ) | (61.6 | ) | ||||||||
ERP Costs |
(4.9 | ) | (4.0 | ) | (8.5 | ) | (8.1 | ) | ||||||||
Total Operating Income |
$ | 302.9 | $ | 275.3 | $ | 603.2 | $ | 496.3 | ||||||||
Segment Operating Income as a Percent of Sales: |
||||||||||||||||
Actuation and Landing Systems |
10.4 | % | 9.9 | % | 11.5 | % | 10.6 | % | ||||||||
Nacelles and Interior Systems |
25.9 | % | 26.2 | % | 24.9 | % | 23.8 | % | ||||||||
Electronic Systems |
15.6 | % | 17.9 | % | 16.0 | % | 15.7 | % | ||||||||
Total Segment Operating Income as a Percent of Sales |
17.2 | % | 17.9 | % | 17.4 | % | 16.6 | % |
(1) | Segment operating income is total segment revenue reduced by operating expenses directly
identifiable with our business segments except for certain enterprise ERP expenses which were not
allocated to the segments. Segment operating income is used by management to assess the operating
performance of the segments. See reconciliation of total segment operating income to total
operating income above. |
Three Months | Six Months | |||||||||||||||
Ended | Ended | |||||||||||||||
June 30, | June 30, | |||||||||||||||
2011 | 2010 | 2011 | 2010 | |||||||||||||
Numerator |
||||||||||||||||
Income from continuing operations attributable to Goodrich |
$ | 176.6 | $ | 158.9 | $ | 371.4 | $ | 268.9 | ||||||||
Percentage allocated to common shareholders |
98.6 | % | 98.6 | % | 98.6 | % | 98.6 | % | ||||||||
$ | 174.1 | $ | 156.8 | $ | 366.2 | $ | 265.2 | |||||||||
Denominator |
||||||||||||||||
Weighted-average shares |
124.9 | 125.4 | 125.1 | 125.2 | ||||||||||||
Effect of dilutive securities |
1.0 | 1.1 | 1.0 | 1.2 | ||||||||||||
Adjusted weighted-average shares and assumed conversion |
125.9 | 126.5 | 126.1 | 126.4 | ||||||||||||
Per share income from continuing operations |
||||||||||||||||
Basic |
$ | 1.39 | $ | 1.25 | $ | 2.93 | $ | 2.12 | ||||||||
Diluted |
$ | 1.38 | $ | 1.24 | $ | 2.90 | $ | 2.10 | ||||||||
Page 14
June 30, | December 31, | |||||||
2011 | 2010 | |||||||
Current Assets |
||||||||
Cash and cash equivalents |
$ | 518.0 | $ | 798.9 | ||||
Accounts and notes receivable net |
1,468.5 | 1,102.7 | ||||||
Inventories net |
2,687.3 | 2,449.4 | ||||||
Deferred income taxes |
168.3 | 158.3 | ||||||
Prepaid expenses and other assets |
88.3 | 68.1 | ||||||
Income taxes receivable |
3.0 | 93.7 | ||||||
Total Current Assets |
4,933.4 | 4,671.1 | ||||||
Property, plant and equipment net |
1,547.4 | 1,521.5 | ||||||
Goodwill |
1,993.7 | 1,762.2 | ||||||
Identifiable intangible assets net |
976.4 | 675.8 | ||||||
Deferred income taxes |
17.3 | 16.4 | ||||||
Other assets |
788.1 | 624.6 | ||||||
Total Assets |
$ | 10,256.3 | $ | 9,271.6 | ||||
Current Liabilities |
||||||||
Short-term debt |
$ | 36.1 | $ | 4.1 | ||||
Accounts payable |
710.6 | 514.0 | ||||||
Accrued expenses |
1,101.2 | 1,041.8 | ||||||
Income taxes payable |
69.5 | 2.9 | ||||||
Deferred income taxes |
31.0 | 28.1 | ||||||
Current maturities of long-term debt and capital lease obligations |
1.4 | 1.5 | ||||||
Total Current Liabilities |
1,949.8 | 1,592.4 | ||||||
Long-term debt and capital lease obligations |
2,384.6 | 2,352.8 | ||||||
Pension obligations |
516.6 | 556.7 | ||||||
Postretirement benefits other than pensions |
276.4 | 296.9 | ||||||
Long-term income taxes payable |
135.9 | 150.7 | ||||||
Deferred income taxes |
597.8 | 431.2 | ||||||
Other non-current liabilities |
546.9 | 503.1 | ||||||
Shareholders Equity |
||||||||
Common stock $5 par value |
||||||||
Authorized 200,000,000 shares; issued 149,418,717 shares at
June 30, 2011 and 148,213,331 shares at December 31, 2010
(excluding 14,000,000 shares held by a wholly owned subsidiary) |
747.1 | 741.1 | ||||||
Additional paid-in capital |
1,822.3 | 1,751.2 | ||||||
Income retained in the business |
2,824.9 | 2,527.2 | ||||||
Accumulated other comprehensive income (loss) |
(485.0 | ) | (676.1 | ) | ||||
Common stock
held in treasury, at cost (24,413,486 shares at June 30, 2011 and 23,259,865 shares at December 31, 2010) |
(1,097.3 | ) | (996.5 | ) | ||||
Total Shareholders Equity |
3,812.0 | 3,346.9 | ||||||
Noncontrolling interests |
36.3 | 40.9 | ||||||
Total Equity |
3,848.3 | 3,387.8 | ||||||
Total Liabilities And Equity |
$ | 10,256.3 | $ | 9,271.6 | ||||
Page 15
Three Months | Six Months | |||||||||||||||
Ended | Ended | |||||||||||||||
June 30, | June 30, | |||||||||||||||
2011 | 2010 | 2011 | 2010 | |||||||||||||
Operating Activities |
||||||||||||||||
Consolidated net income |
$ | 178.3 | $ | 161.4 | $ | 374.9 | $ | 275.2 | ||||||||
Adjustments to reconcile consolidated net income to net cash provided by operating activities: |
||||||||||||||||
(Income) loss from discontinued operations |
| (0.1 | ) | | (1.3 | ) | ||||||||||
Restructuring and consolidation: |
||||||||||||||||
Expenses |
17.6 | | 20.5 | | ||||||||||||
Payments |
(3.0 | ) | (0.7 | ) | (3.9 | ) | (4.2 | ) | ||||||||
Pension and postretirement benefits: |
||||||||||||||||
Expenses |
22.6 | 42.5 | 49.2 | 90.1 | ||||||||||||
Contributions and benefit payments |
(13.4 | ) | (17.1 | ) | (88.8 | ) | (129.8 | ) | ||||||||
Depreciation and amortization |
77.5 | 67.8 | 149.9 | 134.9 | ||||||||||||
Excess tax benefits related to share-based payment arrangements |
(1.8 | ) | (4.9 | ) | (10.4 | ) | (12.9 | ) | ||||||||
Share-based compensation expense |
28.6 | 15.0 | 46.5 | 33.2 | ||||||||||||
Deferred income taxes |
3.2 | 2.0 | (2.0 | ) | 7.8 | |||||||||||
Change in assets and liabilities, net of effects of acquisitions and divestitures: |
||||||||||||||||
Receivables |
(134.1 | ) | 10.4 | (291.4 | ) | (90.1 | ) | |||||||||
Inventories, net of pre-production and excess-over-average |
(37.9 | ) | 7.8 | (78.9 | ) | 0.4 | ||||||||||
Pre-production and excess-over-average inventories |
(12.1 | ) | (80.2 | ) | (67.9 | ) | (130.5 | ) | ||||||||
Other current assets |
5.8 | 4.7 | 7.6 | 2.4 | ||||||||||||
Accounts payable |
21.5 | (24.0 | ) | 112.0 | 44.0 | |||||||||||
Accrued expenses |
69.0 | 33.5 | 0.7 | 12.8 | ||||||||||||
Income taxes payable/receivable |
34.7 | 28.9 | 140.5 | 66.4 | ||||||||||||
Other assets and liabilities |
(15.3 | ) | (23.5 | ) | (20.9 | ) | (45.4 | ) | ||||||||
Net Cash Provided By Operating Activities |
241.2 | 223.5 | 337.6 | 253.0 | ||||||||||||
Investing Activities |
||||||||||||||||
Purchases of property, plant and equipment |
(62.4 | ) | (30.7 | ) | (98.0 | ) | (51.6 | ) | ||||||||
Proceeds from sale of property, plant and equipment |
0.1 | | 0.2 | 0.1 | ||||||||||||
Net payments made for acquisitions, net of cash acquired |
(457.1 | ) | (61.6 | ) | (448.8 | ) | (61.6 | ) | ||||||||
Investments in and advances to equity investees |
(0.5 | ) | (0.5 | ) | (1.0 | ) | (1.0 | ) | ||||||||
Net Cash Used In Investing Activities |
(519.9 | ) | (92.8 | ) | (547.6 | ) | (114.1 | ) | ||||||||
Financing Activities |
||||||||||||||||
Increase (decrease) in short-term debt, net |
(6.1 | ) | 16.7 | (5.3 | ) | 17.8 | ||||||||||
Proceeds (repayments) of long-term debt and capital lease obligations |
31.6 | (0.1 | ) | 31.1 | (0.1 | ) | ||||||||||
Proceeds from issuance of common stock |
5.5 | 17.8 | 32.6 | 53.0 | ||||||||||||
Purchases of treasury stock |
(4.3 | ) | (29.8 | ) | (100.9 | ) | (72.6 | ) | ||||||||
Dividends paid |
(36.9 | ) | (34.2 | ) | (37.4 | ) | (68.3 | ) | ||||||||
Excess tax benefits related to share-based payment arrangements |
1.8 | 4.9 | 10.4 | 12.9 | ||||||||||||
Distributions to noncontrolling interests |
(7.4 | ) | (10.7 | ) | (8.1 | ) | (11.3 | ) | ||||||||
Net Cash Provided By (Used In) Financing Activities |
(15.8 | ) | (35.4 | ) | (77.6 | ) | (68.6 | ) | ||||||||
Discontinued Operations |
||||||||||||||||
Net cash provided by (used in) operating activities |
(0.1 | ) | (0.2 | ) | (0.2 | ) | (0.4 | ) | ||||||||
Net cash provided by (used in) investing activities |
| | | | ||||||||||||
Net cash provided by (used in) financing activities |
| | | | ||||||||||||
Net cash provided by (used in) discontinued operations |
(0.1 | ) | (0.2 | ) | (0.2 | ) | (0.4 | ) | ||||||||
Effect of exchange rate changes on cash and cash equivalents |
1.5 | (7.1 | ) | 6.9 | (14.5 | ) | ||||||||||
Net increase (decrease) in cash and cash equivalents |
(293.1 | ) | 88.0 | (280.9 | ) | 55.4 | ||||||||||
Cash and cash equivalents at beginning of period |
811.1 | 778.4 | 798.9 | 811.0 | ||||||||||||
Cash and cash equivalents at end of period |
$ | 518.0 | $ | 866.4 | $ | 518.0 | $ | 866.4 | ||||||||
Page 16
Three Months | Six Months | |||||||||||||||
Ended | Ended | |||||||||||||||
June 30, | June 30, | |||||||||||||||
2011 | 2010 | 2011 | 2010 | |||||||||||||
Preliminary Income Statement Data: |
||||||||||||||||
Net Interest Expense |
$ | (34.2 | ) | $ | (33.3 | ) | $ | (68.5 | ) | $ | (66.7 | ) | ||||
Other Income (Expense), Net: |
$ | (4.2 | ) | $ | (4.4 | ) | $ | (10.0 | ) | $ | (10.8 | ) | ||||
- Retiree health care expenses related to previously owned business |
(2.1 | ) | (2.6 | ) | (4.7 | ) | (5.3 | ) | ||||||||
- Expenses related to previously owned businesses |
(2.9 | ) | (3.1 | ) | (4.5 | ) | (4.3 | ) | ||||||||
- Equity in affiliated companies |
0.8 | 1.1 | (0.1 | ) | (0.8 | ) | ||||||||||
- Other net |
| 0.2 | (0.7 | ) | (0.4 | ) | ||||||||||
Preliminary Cash Flow Data: |
||||||||||||||||
Dividends paid |
$ | (36.9 | ) | $ | (34.2 | ) | $ | (37.4 | ) | $ | (68.3 | ) | ||||
Depreciation and Amortization |
$ | 77.5 | $ | 67.8 | $ | 149.9 | $ | 134.9 | ||||||||
- Depreciation |
50.8 | 46.3 | 99.4 | 93.3 | ||||||||||||
- Amortization |
26.7 | 21.5 | 50.5 | 41.6 | ||||||||||||
Net Cash Provided By Operating Activities |
$ | 241.2 | $ | 223.5 | $ | 337.6 | $ | 253.0 | ||||||||
Purchases of Property, Plant and Equipment (Capital Expenditures) |
(62.4 | ) | (30.7 | ) | (98.0 | ) | (51.6 | ) | ||||||||
Net Cash Provided By Operating Activities minus Capital Expenditures
(Free Cash Flow[1]) |
$ | 178.8 | $ | 192.8 | $ | 239.6 | $ | 201.4 | ||||||||
June 30, | December 31, | |||||||
2011 | 2010 | |||||||
Preliminary Balance Sheet Data: |
||||||||
Preproduction and Excess-Over-Average Inventory |
$ | 1,309.8 | $ | 1,154.2 | ||||
Short-term Debt |
$ | 36.1 | $ | 4.1 | ||||
Current Maturities of Long-term Debt and Capital Lease Obligations |
1.4 | 1.5 | ||||||
Long-term Debt and Capital Lease Obligations |
2,384.6 | 2,352.8 | ||||||
Total
Debt[2] |
$ | 2,422.1 | $ | 2,358.4 | ||||
Cash and Cash Equivalents |
518.0 | 798.9 | ||||||
Net
Debt[2] |
$ | 1,904.1 | $ | 1,559.5 | ||||
[1] | Free cash flow, which represents net cash provided by operating activities minus capital expenditures, is a
cash performance measure used by the Company. It is a non-GAAP financial measure that the Company believes
provides a relevant measure of liquidity and a useful basis for assessing the Companys ability to fund its activities,
including the financing of acquisitions, debt service, repurchases of the Companys common stock and distribution
of earnings to shareholders. |
|
[2] | Total Debt (defined as short-term debt plus current maturities of long-term debt and capital lease obligations plus long-
term debt and capital lease obligations) and Net Debt (defined as Total Debt minus cash and cash equivalents) are non-
GAAP financial measures that the Company believes are useful to rating agencies and investors in understanding the
Companys capital structure and leverage. Because all companies do not calculate these measures in the same manner,
the Companys presentation may not be comparable to other similarly titled measures reported by other companies. |
Page 17
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