reported a rise in first-quarter profit, but slashed its full-year outlook and said it is cutting 1,700 jobs.
The company earned $29.4 million, or 25 cents a share, compared with $14.3 million, or 15 cents a share, in the year-ago period. Analysts were expecting 33 cents a share.
Sales were $1.094 billion, compared with $896 million in the same period last year.
Looking to 2003 and 2004, the company said it expects to cut 1,700 jobs in all of its businesses, including reductions already associated with the acquisition of Aeronautical Systems. Goodrich also plans to reduce manufacturing capacity. The company currently employes 22,900 people.
"The weak global economy and declining airline traffic create a heightened level of uncertainty throughout commercial aerospace markets," said Marshall Larsen, chief executive. The weak economic outlook combined with the airlines' financial woes and SARS have resulted in a significant decrease in airline flight capacity. Declining demand for new aircraft in all commercial sectors also has negatively impacted the company's original equipment and aftermarket businesses, Goodrich said.
The company cut expected EPS for full-year 2003 to 27 cents to 42 cents a share, excluding the sale of its avionics business. The new expected EPS is down significantly from the previous $1.45 to $1.60 estimate and analysts' forecast of $1.60 a share, on average. Including a 53 cent per-share gain from the sale, the company expects to earn 80 to 95 cents a share. Goodrich earned $2.31 a share in 2002. The company cut its full-year revenue estimate to $4.3 billion from $4.4 billion to $4.5 billion.
Shares of the Charlotte, N.C.-based company were down 1.4% at $14.51 in early trading Monday.