EX-99.2 3 l86206aex99-2.txt EXHIBIT 99.2 1 EXHIBIT 99.2 Excerpts from presentation given on January 30, 2001 at the Bear Stearns 8th Annual Commercial Aerospace Conference by Marshall O. Larsen, Executive Vice President and Chief Operating Officer, Aerospace, and Ulrich Schmidt, Senior Vice President and Chief Financial Officer, of The B.F.Goodrich Company. Part of this presentation contains forward-looking statements that involve risks and uncertainties, and actual results could differ materially from those projected in the forward-looking statements. The risks and uncertainties are detailed from time to time in reports filed with the Securities and Exchange Commission, including but not limited to the last section of the Management's Discussion and Analysis entitled "Forward-Looking Information is Subject to Risk and Uncertainty" contained in the company's Annual Report on Form 10-K and in other filings. 2 AEROSPACE SEGMENT 3 AEROSPACE SALES 1995 $2.3 billion 1996 $2.5 billion 1997 $3.0 billion 1998 $3.5 billion 1999 $3.6 billion 2000 $3.7 billion 2001 est. Approx. $4.2 billion Top Line Growth Continues 4 GROWTH FROM COMPLEMENTARY ACQUISITIONS Recent complementary acquisitions: ---------------------------------- - Raytheon Optical Systems - Autoliv OEA Aerospace unit - Corning OCA - Engineered Products Co. (EPCO) - Advanced Creations, Inc. (ACI) - IBP Aerospace - Barnes Engineering - Ithaco Space Systems - Boeing ACES II - Rohr Aero-services Asia (RASA) - Robotic Vision Systems, Inc. (RVSI) - Advanced MicroMachines (AMMI) - Universal Propulsion Co. (UPCO) Sales from recent complementary acquisitions: --------------------------------------------- 1999 $ 61 million 2000 $ 104 million 2001 est. $ 330 million 2001 sales substantially increased due to Raytheon & OEA 5 EXPECTED BFGOODRICH AEROSPACE GROWTH BFGoodrich Avg. Expected Mix 2000-02 Growth ---------- -------------- Boeing OE 19% 4% Airbus OE 13% 11% Regional & Business OE 6% 15% Military Aircraft OE 8% 5% Space Payloads 3% 5% Aftermarket 47% 5% Other 4% 10% ---------- -------------- Expected Organic Growth 7% New Products/Complementary Acq. 1 - 3% -------------- BFGoodrich Aerospace Total 8 - 10% 6 AEROSPACE SEGMENT FOCUS ON CONTINUED GROWTH - Segment continues to grow despite downturns in cycle - Productivity improvements more than offset pricing pressure. - Expect 12 - 13% revenue growth in 2001 - Continued progress on new technologies and products - Boeing Aces II, HUMS, Satellite Systems, Inflatabelt - Meaningful growth from complementary acquisitions 7 FINANCIAL SUMMARY AND 2001 OUTLOOK 8 FULL YEAR 2000 REVENUE AND OPERATING INCOME (DOLLARS IN MILLIONS) Full Year 2000 Revenues - $4,364 * Aerospace - 84% Engineered Industrial - 16% Full Year 2000 Operating Income - $714 * Aerospace - 83% Engineered Industrial - 17% BFG is a leading Aerospace & Industrial Products Company * Excludes special items 9
FULL YEAR 2000 - FINANCIAL RESULTS 1999 2000 Change Actual Actual ------ ------ ------- Sales $4,320M $4,364M $ 44M Segment Ops Income $ 677 $ 714 $ 37 OI % of Sales 15.7% 16.4% N/M ----------------------------------------------------------------------------------------------- Net Income - as reported $ 170M $ 326M $ 156M Net Income - Continuing Operations,ex. special items $ 306M $ 318M $ 12M ----------------------------------------------------------------------------------------------- EPS - Diluted Reported $ 1.53 $ 3.04 $ 1.51 Cont. Ops, Excl. Special Items $ 2.75 $ 2.97 $ 0.22
10 FULL YEAR 2000 - SEGMENT RESULTS CONTINUING OPERATIONS 1999 2000 Change Sales Actual Actual % ------ --------- ------ Aerospace $3,617M $ 3,674M 2% Eng. Industrial $ 702 $ 690 (2%) -------------------------------------------------------------------------------- Total Sales $4,320M $ 4,364M 1% -------------------------------------------------------------------------------- Operating Income Aerospace $ 559M $ 592M 6% Eng. Industrial $ 118 $ 122 3% -------------------------------------------------------------------------------- Total Operating Income $ 677M $ 714M 5% -------------------------------------------------------------------------------- Operating Income Margins Aerospace 15.4% 16.1% 5% Eng. Industrial 16.8% 17.7% 5% -------------------------------------------------------------------------------- OI Margins - % 15.7% 16.4% 5% -------------------------------------------------------------------------------- Excludes special items 11
2001 OUTLOOK - P.M. AS DISCONTINUED Actual 2000 Outlook 2001 % Change ----------- ------------ -------- SALES ($M) Aerospace $3.7 $4.2 +12 to 13% Engineered Industrial 0.7 0.7 +2 to 3 % ---- ---- ---------- Total $4.4 $4.9 +10 to 12% OPERATING MARGINS 14.6% 14.0-14.5% DILUTED E.P.S. - Book $2.97 $3.40-3.50 +13 to 17% - Cash (Exclud. Goodwill) $3.13 $3.60-3.70 +13 to 17%
Assumptions: ------------ - Aerospace includes Raytheon and OEA acquisitions, 860 - 880 unit commercial transport production, 5% RPM growth - Modest EIP growth; second half stronger than first - Flatish margins (Aerospace acquisitions, higher OE mix, new program/R&D investments) - P.M. proceeds (1Q closing): debt retirement + modest share repurchase - 34% effective tax rate (2000 and 2001) 12 SUMMARY - Expect strong financial performance to continue - Strong Aerospace presence, franchise - Excellent products, market positions and margins - Multiple opportunities for top-line growth and margin expansion - Improving OE cycle, new proprietary products, accretive acquisitions - Repositioned Engineered Industrial segment - Strategic focus on top-line growth - New product introductions - Geographic expansion - Targeted acquisitions - Complete reorganization, consolidation initiatives