QUOTE AND NEWS
WA Business News  Nov 19  Comment 
Belmont-based GR Engineering Services has executed a conditional $54.6 million contract to provide engineering procurement and construction works at MZI Resources’ planned Keysbrook mineral sands project near Serpentine.
Wall Street Journal  Nov 14  Comment 
A back-office employee of law firm Wilson Sonsini Goodrich & Rosati pleaded guilty to a charge of insider trading.
WA Business News  Nov 10  Comment 
Belmont-based contractor GR Engineering Services has won a $10.3 million contract to provide engineering, procurement and construction management work at Finders Resources’ Wetar Copper project expansion in Indonesia.
WA Business News  Oct 9  Comment 
Mutiny Gold has signed a memorandum of understanding with GR Engineering Services for the construction of a processing facility at its Deflector copper-gold project in the Mid West.
SeekingAlpha  Oct 1  Comment 
By Richard Zeits: Goodrich's Latest Well Results Analysis While Goodrich Petroleum's (NYSE:GDP) two wells reported this morning did not set any new records for the play -- at least as far as one can tell from their initial performance - both...
New York Times  Sep 16  Comment 
For the second time in three years, federal authorities have charged an employee of Wilson Sonsini Goodrich & Rosati, a prominent law firm, with using confidential information about corporate deals to make illegal stock trades.
WA Business News  Aug 26  Comment 
Belmont-based contractor GR Engineering Services lifted its full-year profit by 89.3 per cent to $14.2 million, despite a drop in revenue of 0.4 per cent to $114.2 million.
SeekingAlpha  Aug 7  Comment 
Goodrich Petroleum (NYSE:GDP) Q2 2014 Earnings Call August 07, 2014 11:00 am ET Executives Daniel Jenkins - Walter G. Goodrich - Executive Vice Chairman, Chief Executive Officer, Non-Independent Member of Executive Committee and...
SeekingAlpha  Aug 7  Comment 
By Callum Turcan: It turns out the Tuscaloosa Marine Shale isn't dead, not even close. When Goodrich Petroleum Corporation (NYSE:GDP) updated investors in its second quarter results, an enormous relief washed over Wall Street after reading the new...




 

This article discusses the airplane part maker. For the Oil and Gas company that owns oil fields in Texas and Louisiana, see Goodrich Petroleum (GDP).

Goodrich Corporation (NYSE:GR) manufactures and sells components and systems for commercial and military aircraft. With jet fuel prices increasing, commercial airlines are demanding more fuel efficient aircraft like Boeing’s 787. Furthermore, developing countries are demanding more planes. GR's aftermarket sales for commercial and business airplanes are growing since aircraft numbers are rising and planes are always aging.[1]

Business Overview

Business Segments

Goodrich Corporation is broken down into three business segments.

Actuation and Landing Systems (37.8% of total sales)

This segment manufactures and produces flight controls, helicopter's main and tail rotors, complete landing gear systems (including wheels and brakes), fuel controls, electrical systems, surveillance systems, and provide maintenance and repair services associated with aircraft engines and aircraft interior products. They also provide a significant amount of aftermarket support for the entire life cycle of airplanes and defense programs by providing products and services to their customers to replace, repair, or overhaul their products.

Nacelles and Interior Systems (34.7% of total sales)

The Nacelles and Interior Systems business provides maintenance, repair and overhaul services associated with aircraft engines, including thrust reversers, cowlings, nozzles and their components, and aircraft interior products, which include slides, seats, cargo and lighting systems.

Electronic Systems (27.5% of total sales)

The Electronic Systems segment produces a variety of systems that provide flight performance measurements, flight management, fuel controls, electrical systems, and control and safety data, as well as reconnaissance and surveillance systems.

Key Trends and Forces

Increasing Demand for Commercial Aircraft Increases GR’s sales.

About 70 percent of Goodrich Corporation’s sales come from commercial aircraft programs. GR sells products and service for Airbus' A380 and A350XWB, Boeing's 787, Embraer's 190, and Dassault's Falcon 7X. Commercial airlines are demanding more fuel efficient airplanes, such as Boeing’s 787, as jet fuel prices are rising.[2]

Events that have a negative impact on the commercial aircraft market, such as the unexpected terrorist attack on 9/11 or a dramatic increase in fuel-prices that consumers cannot cope with, will also negatively affect GR by negatively affecting their customers.

Availability and Pricing of Raw Materials Affects GR's Profit Margin

Goodrich Corporation purchases aluminum, titanium, steel, carbon fiber, and other various specialty metals which are used to manufacture their products. The loss of a supplier or a delay from the supplier can have a negative impact on GR, since it would pressure their contractual obligations to deliver their products on time. Furthermore, supply fluctuations of these raw materials can lead to prices changes that affect GR's margins. Although titanium prices have decreased, both aluminum and steel prices have had an increasing trend. Steel Prices have been rising and continue to increase.[3] As the price of the materials GR uses increase, GR's costs increase, squeezing margins and slowing income growth.

Goodrich and China

Goodrich Names Michael Barbalas as President of its China Activities

CHARLOTTE, N.C., April 7, 2010 /PRNewswire via COMTEX/ --Goodrich Corporation (NYSE: GR) has named Michael Barbalas as president of its China activities, reporting to Cindy Egnotovich, Segment President, Nacelles and Interior Systems. Barbalas joins Goodrich from the American Chamber of Commerce in China, headquartered in Beijing, where he served as president. He replaces Ken Wood, who will be retiring after 24 years of service at Goodrich.

Commenting on the changes, Egnotovich said, "China is the fastest growing aerospace market in the world, and Mike has spent more than 20 years building relationships with some of the top companies and government entities in the region. As Goodrich continues to grow its operations and customer base in China, we will look to his leadership and experience to bring us to the next level of operational excellence and customer satisfaction there."


Competition

GR operates in a highly competitive aerospace industry. The following tables list GR’s major competitors in each business segment, which is further broken down into major aerospace products and systems platforms. GR competes with both domestic and foreign companies.

GR's direct competitors include:

Actuation and Landing Systems Primary Market Segments Major Non-Captive Competitors
Wheels and BrakesLarge Commercial/ Ragional/Business/Defense Honeywell Internaional Inc;Messier-Bugatti( subsidiary of SAFRAN); Aircraft Braking Systems Corporation (subsidiary of Meggitt plc); Dunlop Standard Aerospace Group plc. (a division of Meggitt plc)
Landing Gear Large Commercial/DefenseMessier-Dowty (a subsidiary of SAFRAN), Liebherr-Holding GmbH; Héroux-Devtek Inc.
Flight Control ActuationLarge Commercial/DefenseParker Hannifin Corporation; United Technologies Corporation; GE Aviation; Liebherr-Holding GmbH; Moog Inc.
Turbine Fuel TechnologiesLarge Commercial/Military/Regional/BusinessParker Hannifin Corporation; Woodward Governor Company (WGOV)
Trubomachinery ProductsAero and Industrial Turbine ComponentsBlades Technology; Samsung; Howmet (a division of Alcoa Inc.); PZL (a division of United Technologies Corporation), Honeywell -- Greer (a division of Honeywell International, Inc.); TECT Corporation
[4]


Nacelles and Interior Systems Primary Market Segments Major Non-Captive Competitors
Nacelles /Thrust ReversersLarge Commercial/MilitaryAircelle (a subsidiary of SAFRAN); General Electric Company (GE) , Spirit Aerosystems Holdings (SPR)
Evacuation SystemsLarge Commercial/Regional Air Crusiers (a subsidiary of Zodiac S.A.); Smiths Group; Parker Hannifin Corporation
Propulsion SystemsDefenseDanaher Corp (Pacific Scientific, McCormick Selph, SDI); Scot, Inc. (a subsidiary of Procyon Technologies, Inc.); Talley Defense Systems
Aircraft Crew Seating Large Commercial/Regional/BusinessIpeco Holdings Ltd; Sicma Aero Seat (a subsidiary of Zodiac S.A.); EADS Sogerma Services (a subsidiary of EADS European Aeronautical Defense and Space Co.); BE Aerospace, Inc.; C&D Aerospace Group
Ejection Seats DefenseMartin-Baker Aircraft Co. Limited
LightingLarge Commercial/Regional/Business/DefensePage Aerospace Limited; LSI Luminescent Systems Inc.; Diehl Luftfahrt Elecktronik GmbH (DLE)
Cargo SystemsLarge CommercialTelair International (a subsidiary of Teleflex Incorporated); Ancra International LLC, AAR Manufacturing Group, Inc.
[5]


Electronic Systems Primary Market Segments Major Non-Captive Competitors
SensorsLarge Commercial/Regional/Business/DefenseHoneywell International Inc.; Thales, S.A.;Auxitrol (a subsidiary of Esterline Technologies Corporation)
Fuel and Utility SystemsLarge Commercial/DefenseHoneywell International Inc.; Parker Hannifin Corporation; Smiths Group
De-lcing SystemsLarge Commercial/Regional/ Business/DefenseAérazur S.A. (a subsidiary of Zodiac S.A.); B/E Aerospace, Inc.
Aerospace Hoists/WinchesDefense/Search & Rescue/Commercial HelicopterBreeze-Eastern (a division of TransTechnology Corporation); Telair International (a subsidiary of Teleflex Incorporated)
Optical SystemsDefenes/SpaceBAE Systems (BAESY) ; ITT Industries Inc; L-3 Communications Holdings (LLL)  ; Honeywell International (HON)
Power SystemsLarge Commercial/Regional/ Business/DefenseHoneywell International (HON); Smiths Group; Hamilton Sunstrand (a subsidiary of United Technologies Corporation)
Engine ControlsLarge Commercial/ Regional/Business/ Defense/HelicopterUnited Technologies (UTX) ; BAE Systems (BAESY) ;Honeywell International (HON) ; Argo-Tech Corporation, Woodward Governor Company; Hispano-Suiza (a subsidiary of SAFRAN)
[6]

Goodrich Names Michael Barbalas as President of its China Activities[1]




References

  1. GR 2007 10-K, Pg 25
  2. Jet Fuel Prices Soar...So Do Airline Tickets
  3. Steel Prices
  4. GR 2007 10-K, Pg 3
  5. GR 2007 10-K, Pg 3-4
  6. GR 2007 10-K, Pg 3-4
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