<PAGE> 1
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
-----------
FORM 8-K
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(d) OF
THE SECURITIES EXCHANGE ACT OF 1934
Date of report (Date of earliest event reported): October 28, 1999
THE B.F.GOODRICH COMPANY
(Exact Name of Registrant as Specified in Charter)
New York 1-892 34-0252680
(State or Other (Commission (IRS Employer
Jurisdiction of File Number) Identification No.)
Incorporation)
3 Coliseum Centre
2550 West Tyvola Road
Charlotte, North Carolina 28217
(Address of Principal Executive Offices)(Zip Code)
Registrant's telephone number, including area code: (704) 423-7000
<PAGE> 2
ITEM 5. OTHER EVENTS
On October 28, 1999, The B.F.Goodrich Company issued a press release
announcing its earnings for the three-month and nine-month periods ended
September 30, 1999. A copy of such press release is filed as Exhibit 99.1 hereto
and is incorporated by reference herein.
ITEM 7. FINANCIAL STATEMENTS, PRO FORMA FINANCIAL INFORMATION AND EXHIBITS
(a) Financial Statements
None. The financial statements included in this report are not required
to be filed as part of this report.
(b) Pro Forma Financial Information
None.
(c) Exhibits
Exhibit 99.1 The B.F.Goodrich Company Press Release dated
October 28, 1999 titled "BFGoodrich reports
consolidated 1999 third-quarter results."
2
<PAGE> 3
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934,
the registrant has duly caused this report to be signed on its behalf by the
undersigned hereunto duly authorized.
THE B.F.GOODRICH COMPANY
(Registrant)
Date: October 29, 1999 By: /s/ Robert D. Koney, Jr.
----------------------------------
Robert D. Koney, Jr.
Vice President and Controller
3
<PAGE> 1
[BFGoodrich Logo] NEWS
THE BFGOODRICH COMPANY C1138
3 Coliseum Centre Media Contact: Kevin Ramundo
2550 West Tyvola Rd. Phone: 704/423-7024
Charlotte, North Carolina 28217 Fax: 704/423-7127
www.bfgoodrich.com
Investor Contact: Paul Gifford
Phone: 704-423-5517
Fax: 704-423-5516
For immediate release
BFGoodrich reports consolidated 1999 third-quarter results
CHARLOTTE, NC, OCTOBER 28, 1999 -- The BFGoodrich Company (NYSE: GR) reported
third-quarter net income, excluding special items, of $83.0 million, or $0.74
per share, compared to $85.1 million, or $0.76 per share, in the year-ago
quarter. Sales for the quarter were approximately $1.3 billion, a slight decline
from the third quarter in 1998. These results and those that follow include
Coltec Industries and have been restated to conform accounting practices
following the Coltec merger this past July.
For the first nine months of 1999, BFGoodrich achieved an 18 percent increase in
net income, excluding special items. Earnings equaled $276.0 million, or $2.47
per share compared to $233.3 million, or $2.07 per share for the same period a
year ago. Sales for the first nine months of the year increased 4 percent to
$4.2 billion.
As previously disclosed, the company incurred net special charges of $202.3
million ($153.9 million after tax) in the third quarter, and $232.5 million
($172.7 million after tax) for the first nine months of 1999, largely related to
costs associated with the Coltec merger and consolidation activities. Of these
special charges, $204.7 million and $241.0 million has been reported within
operating income for the third quarter and nine-month periods of 1999,
respectively. Including these charges, BFGoodrich reported a net loss of $70.9
million, or $0.64 per share in the third quarter, and net income of $103.3
million, or $0.93 per share for the first nine months of 1999.
Commenting on the company's operating performance, David L. Burner, BFGoodrich's
chairman and chief executive officer, said, "While 1999 will be another year of
significant overall earnings growth and record aerospace results, we are
experiencing continued softness across our industrial markets, and pricing
pressure and increasing raw material costs in performance materials.
Nevertheless, we remain confident in the strength of our businesses and our
strategies to achieve significant revenue and earnings growth on a consistent
basis over time."
Page 1 of 3
C1138-BFGoodrich reports consolidated 1999 third-quarter results
<PAGE> 2
[BFGoodrich Logo] NEWS
THIRD QUARTER SEGMENT REVIEW: 1999 VS. 1998
In the Aerospace segment, operating income increased 2 percent to $130.9 million
on a 1 percent decrease in sales to $855 million. The higher operating income
reflects overhead cost reductions and increased aftermarket demand for wheels
and brakes, offset by declining original equipment delivery rates in
aerostructures.
In Performance Materials, operating income increased 5 percent to $39.4 million,
as sales remained flat at $306 million. The increase in operating income
reflects overhead cost reductions and improved results in polymer additives and
specialty plastics, partially offset by lower volumes and prices in textiles and
coatings.
In the Engineered Industrial Products segment, operating income was $28.1
million, approximately 20 percent below last year. Sales equaled $171 million,
approximately 5 percent below last year. Market softness in industries served by
the compressors, spray technologies and sealing technologies businesses was the
major contributor to the sales and operating income declines.
1999 AND 2000 OUTLOOK
Last month, BFGoodrich revised its earnings per share outlook to be between
$3.20 and $3.30 in 1999, compared to $2.91 in 1998, excluding special items. The
revised earnings outlook reflected continued pricing pressure and higher raw
material costs in Performance Materials, and continued softness across most
markets served by the Engineered Industrial Products segment. Other factors
included initial dilution from the Coltec merger and delays in closing the
transaction, which postponed the realization of cost synergies.
Looking ahead to 2000, the company expects the same market issues that have
affected results in the second half of 1999 to continue. These pressures,
together with a further decline in commercial aircraft production, will most
likely result in relatively flat financial performance compared to 1999. This
outlook includes $25 million in annual headquarter cost savings beginning in
2000 and significant operational savings through consolidation of businesses and
facilities.
Regarding next year, David Burner said, "While our initial outlook indicates
that 2000 will be more challenging than first anticipated, we are taking every
possible action to do better. In addition to the progress we have made in
realizing the cost synergies of the Coltec merger, our management team is
Page 2 of 3
C1138-BFGoodrich reports consolidated 1999 third-quarter results
<PAGE> 3
[BFGoodrich Logo] NEWS
now redoubling efforts in cost reduction, lean manufacturing and quality
improvement, as well as new commercial initiatives."
The BFGoodrich Company, headquartered in Charlotte, NC, has leading market
positions in advanced aerospace systems, performance materials, and engineered
industrial products. The company has annual revenues approaching $6 billion and
27,000 employees worldwide.
The tables that follow provide more detailed information about BFGoodrich
results for the third quarter and first nine months of 1999 and 1998, as well as
results for 1996 - 1998, which have been restated to reflect the merger of
BFGoodrich and Coltec Industries.
[Part of this announcement 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.]
###
Page 3 of 3
C1138-BFGoodrich reports consolidated 1999 third-quarter results
<PAGE> 4
THE BFGOODRICH COMPANY
(Dollars in millions except per share amounts)
<TABLE>
<CAPTION>
Three Months Ended
September 30
-----------------------------------------
1999 1999
AS REPORTED AS ADJUSTED(A) 1998(B)
<S> <C> <C> <C>
Sales $ 1,332.1 $ 1,332.1 $ 1,346.6
========= ========= =========
Income (Loss) before Income Taxes
and Trust Distributions (63.2) 139.1 143.4
Income Tax Expense (3.1) (51.5) (53.7)
Distributions on Trust Preferred
Securities (4.6) (4.6) (4.6)
--------- --------- ---------
Net Income (Loss) $ (70.9) $ 83.0 $ 85.1
========= ========= =========
Income (Loss) Per Share:
Basic $ (0.64) $ 0.75 $ 0.77
========= ========= =========
Diluted $ (0.64) $ 0.74 $ 0.76
========= ========= =========
Weighted - Average Number
of Shares Outstanding
(in millions):
Basic 110.1 110.1 110.7
========= ========= =========
Diluted 110.1 113.9 114.4
========= ========= =========
</TABLE>
(A) Results exclude the effect of a $202.3 million charge ($153.9 million
after-tax), or $1.35 diluted share, primarily related to merger-related and
consolidation costs.
(B) There were no special items reported during the third quarter of 1998.
<PAGE> 5
THE BFGOODRICH COMPANY
(Dollars in millions except per share amounts)
<TABLE>
<CAPTION>
Nine Months Ended
September 30
--------------------------------------------------------------
1999 1999 1998 1998
AS REPORTED AS ADJUSTED(A) AS REPORTED AS ADJUSTED(B)
<S> <C> <C> <C> <C>
Sales $ 4,207.3 $ 4,207.3 $ 4,064.5 $ 4,064.5
========= ========= ========= =========
Income from Continuing Operations
before Income Taxes and
Trust Distributions 222.8 455.3 451.2 393.0
Income Tax Expense (105.7) (165.5) (168.0) (148.2)
Distributions on Trust Preferred
Securities (13.8) (13.8) (11.5) (11.5)
--------- --------- --------- ---------
Income from Continuing Operations 103.3 276.0 271.7 233.3
Income (Loss) from Discontinued
Operations -- -- (1.6) --
Extraordinary Item -- -- (4.3) --
--------- --------- --------- ---------
Net Income $ 103.3 $ 276.0 $ 265.8 $ 233.3
========= ========= ========= =========
Income (Loss) Per Share:
Basic
Continuing Operations $ 0.94 $ 2.51 $ 2.46 $ 2.12
Discontinued Operations -- -- (0.01) --
Extraordinary Item -- -- (0.04) --
--------- --------- --------- ---------
Net Income $ 0.94 $ 2.51 $ 2.41 $ 2.12
========= ========= ========= =========
Diluted
Continuing Operations $ 0.93 $ 2.47 $ 2.41 $ 2.07
Discontinued Operations -- -- (0.01) --
Extraordinary Item -- -- (0.04) --
--------- --------- --------- ---------
Net Income $ 0.93 $ 2.47 $ 2.36 $ 2.07
========= ========= ========= =========
Weighted - Average Number
of Shares Outstanding
(in millions):
Basic 109.9 109.9 110.3 110.3
========= ========= ========= =========
Diluted 110.8 113.7 114.1 114.1
========= ========= ========= =========
</TABLE>
(A) Results exclude the effect of a $232.5 million charge ($172.7 million
after-tax), or $1.52 a diluted share, primarily related to merger-related
and consolidation costs.
(B) Results exclude the effect of a $58.2 million gain ($38.4 million
after-tax), or $0.34 a diluted share, related to the sale of the Holley
Performance Products subsidiary.
<PAGE> 6
BFGOODRICH SEGMENT REPORTING
(DOLLARS IN MILLIONS)
<TABLE>
<CAPTION>
Three Months Ended Nine Months Ended
September 30 September 30
----------------------- -----------------------
1999 1998 1999 1998
<S> <C> <C> <C> <C>
Sales:
Aerospace:
Aerostructures $ 248.5 $ 276.3 $ 881.9 $ 861.3
Landing Systems 251.8 239.4 782.4 695.9
Sensors & Integrated Systems 230.5 229.8 696.6 676.5
Maintenance, Repair & Overhaul 124.4 116.9 386.4 332.1
-------- -------- -------- --------
855.2 862.4 2,747.3 2,565.8
-------- -------- -------- --------
Engineered Industrial Products 170.6 179.4 542.7 600.6
-------- -------- -------- --------
Performance Materials:
Textile and Coatings Solutions 154.4 158.5 467.7 459.0
Polymer Additives and
Specialty Plastics 107.1 103.7 318.7 322.7
Consumer Specialties 44.8 42.6 130.9 116.4
-------- -------- -------- --------
306.3 304.8 917.3 898.1
-------- -------- -------- --------
Total Sales $1,332.1 $1,346.6 $4,207.3 $4,064.5
======== ======== ======== ========
Operating Income:
Aerospace:
Aerostructures $ 39.1 $ 44.5 $ 136.5 $ 127.3
Landing Systems 40.2 33.7 121.4 80.7
Sensors & Integrated Systems 44.8 42.9 130.4 123.2
Maintenance, Repair & Overhaul 6.8 7.4 30.0 19.8
-------- -------- -------- --------
130.9 128.5 418.3 351.0
-------- -------- -------- --------
Engineered Industrial Products 28.1 35.2 99.3 96.8
-------- -------- -------- --------
Performance Materials:
Textile and Coatings Solutions 12.9 16.3 34.8 52.8
Polymer Additives and
Specialty Plastics 20.3 14.1 57.1 41.5
Consumer Specialties 6.2 7.0 23.7 19.9
-------- -------- -------- --------
39.4 37.4 115.6 114.2
-------- -------- -------- --------
Total Segment Operating Income $ 198.4 $ 201.1 $ 633.2 $ 562.0
Corporate General and
Administrative Costs (19.9) (20.4) (64.0) (62.1)
Merger-related and Consolidation
Costs (204.7) -- (241.0) --
-------- -------- -------- --------
Total Operating Income $ (26.2) $ 180.7 $ 328.2 $ 499.9
======== ======== ======== ========
</TABLE>
<PAGE> 7
BFGOODRICH CONSOLIDATED STATEMENTS OF INCOME
FOR THE YEARS ENDED 1998, 1997, AND 1996
(In millions of dollars, except per share amounts)
<TABLE>
<CAPTION>
1998 1997 1996
--------- --------- ---------
<S> <C> <C> <C>
Sales $ 5,454.9 $ 4,687.9 $ 4,005.5
Operating costs and expenses:
Cost of sales 3,919.3 3,366.8 2,832.8
Charge for MD-90 contract -- 35.2 --
Selling and administrative costs 841.9 778.0 679.5
Merger related and consolidation costs 10.5 77.0 11.2
--------- --------- ---------
4,771.7 4,257.0 3,523.5
--------- --------- ---------
Operating income 683.2 430.9 482.0
Interest expense (134.1) (127.9) (164.7)
Interest income 6.1 12.0 4.2
Gain on issuance of subsidiary stock 13.7
Other income (expense) - net 39.0 15.0 (30.8)
--------- --------- ---------
Income from continuing operations before income
taxes and trust distributions 594.2 343.7 290.7
Income tax expense (218.5) (138.2) (103.2)
Distributions on trust preferred securities (16.1) (10.5) (10.5)
--------- --------- ---------
Income from continuing operations 359.6 195.0 177.0
Income from discontinued operations - net of taxes (1.6) 84.3 115.5
--------- --------- ---------
Income before extraordinary items 358.0 279.3 292.5
Extraordinary item - net of tax (4.3) (19.3) (30.6)
--------- --------- ---------
Net income $ 353.7 $ 260.0 $ 261.9
========= ========= =========
Basic earnings per share:
Continuing operations $ 3.26 $ 1.81 $ 1.68
Discontinued operations (0.01) 0.78 1.10
Extraordinary item (0.04) (0.18) (0.29)
--------- --------- ---------
Net income $ 3.21 $ 2.41 $ 2.49
========= ========= =========
Diluted earnings per share:
Continuing operations $ 3.19 $ 1.75 $ 1.63
Discontinued operations (0.01) 0.75 1.05
Extraordinary item (0.04) (0.17) (0.28)
--------- --------- ---------
Net income $ 3.14 $ 2.33 $ 2.40
========= ========= =========
Net income excluding special items $ 2.91 $ 2.34 $ 1.74
========= ========= =========
Weighted average number of common and common
equivalent shares outstanding - in millions
Basic 110.2 107.9 105.3
Diluted 113.9 112.1 109.8
</TABLE>
<PAGE> 8
The BFGoodrich Company
Group Results
QUARTER:
<TABLE>
<CAPTION>
1999
--------------------------------- -------
Q1 Q2 Q3 Total
--------------------------------- -------
<S> <C> <C> <C> <C>
REVENUE
Landing Systems 261.3 269.3 251.8 782.4
Sensors & Integrated Systems 237.7 228.4 230.5 696.6
MRO 117.0 145.0 124.4 386.4
Aerostructures 310.2 323.2 248.5 881.9
--------------------------------- -------
Aerospace 926.2 965.9 855.2 2,747.3
Engineered Industrial Products 185.6 186.5 170.6 542.7
--------------------------------- -------
Polymer Additives & Specialty Plastics 105.5 106.1 107.1 318.7
Textiles and Coatings Solutions 153.7 159.6 154.4 467.7
Consumer Specialties 40.8 45.3 44.8 130.9
--------------------------------- -------
Performance Materials 300.0 311.0 306.3 917.3
--------------------------------- -------
Segment Revenue 1,411.8 1,463.4 1,332.1 4,207.3
================================= =======
OPERATING INCOME
Landing Systems 38.6 42.6 40.2 121.4
Sensors & Integrated Systems 43.3 42.3 44.8 130.4
MRO 9.9 13.3 6.8 30.0
Aerostructures 50.7 46.7 39.1 136.5
--------------------------------- -------
Aerospace 142.5 144.9 130.9 418.3
Engineered Industrial Products 34.2 37.0 28.1 99.3
--------------------------------- -------
Polymer Additives & Specialty Plastics 19.2 17.6 20.3 57.1
Textiles and Coatings Solutions 8.3 13.6 12.9 34.8
Consumer Specialties 5.7 11.8 6.2 23.7
--------------------------------- -------
Performance Materials 33.2 43.0 39.4 115.6
--------------------------------- -------
Segment Operating Income 209.9 224.9 198.4 633.2
================================= =======
</TABLE>
YEAR TO DATE:
<TABLE>
<CAPTION>
1999
--------------------------------------
1Q YTD 2Q YTD 3Q YTD
--------------------------------------
<S> <C> <C> <C>
REVENUE
Landing Systems 261.3 530.6 782.4
Sensors & Integrated Systems 237.7 466.1 696.6
MRO 117.0 262.0 386.4
Aerostructures 310.2 633.4 881.9
--------------------------------------
Aerospace 926.2 1,892.1 2,747.3
Engineered Industrial Products 185.6 372.1 542.7
--------------------------------------
Polymer Additives & Specialty Plastics 105.5 211.6 318.7
Textile and Coatings Solutions 153.7 313.3 467.7
Consumer Specialties 40.8 86.1 130.9
--------------------------------------
Performance Materials 300.0 611.0 917.3
--------------------------------------
Segment Revenue 1,411.8 2,875.2 4,207.3
======================================
OPERATING INCOME
Landing Systems 38.6 81.2 121.4
Sensors & Integrated Systems 43.3 85.6 130.4
MRO 9.9 23.2 30.0
Aerostructures 50.7 97.4 136.5
--------------------------------------
Aerospace 142.5 287.4 418.3
Engineered Industrial Products 34.2 71.2 99.3
--------------------------------------
Polymer Additives & Specialty Plastics 19.2 36.8 57.1
Textile and Coatings Solutions 8.3 21.9 34.8
Consumer Specialties 5.7 17.5 23.7
--------------------------------------
Performance Materials 33.2 76.2 115.6
--------------------------------------
Segment Operating Income 209.9 434.8 633.2
======================================
</TABLE>
<PAGE> 9
QUARTER:
<TABLE>
<CAPTION>
1998
---------------------------------------------------- ---------
Q1 Q2 Q3 Q4 Total
---------------------------------------------------- ---------
<S> <C> <C> <C> <C> <C>
REVENUE
Landing Systems 222.3 234.2 239.4 267.3 963.2
Sensors & Integrated Systems 221.6 225.1 229.8 234.8 911.3
MRO 104.8 110.4 116.9 128.5 460.6
Aerostructures 302.6 282.4 276.3 282.9 1,144.2
---------------------------------------------------- ---------
Aerospace 851.3 852.1 862.4 913.5 3,479.3
Engineered Industrial Products 208.4 212.8 179.4 179.3 779.9
---------------------------------------------------- ---------
Polymer Additives & Specialty Plastics 110.3 108.7 103.7 108.6 431.3
Textile and Coatings Solutions 121.2 179.3 158.5 147.2 606.2
Consumer Specialties 20.9 52.9 42.6 41.7 158.1
---------------------------------------------------- ---------
Performance Materials 252.4 340.9 304.8 297.5 1,195.6
---------------------------------------------------- ---------
Segment Revenue 1,312.1 1,405.8 1,346.6 1,390.3 5,454.8
==================================================== =========
OPERATING INCOME
Landing Systems 26.6 20.4 33.7 37.2 117.9
Sensors & Integrated Systems 41.2 39.1 42.9 47.1 170.3
MRO 5.3 7.1 7.4 2.9 22.7
Aerostructures 39.5 43.3 44.5 51.3 178.6
---------------------------------------------------- ---------
Aerospace 112.6 109.9 128.5 138.5 489.5
Engineered Industrial Products 36.0 25.6 35.2 34.8 131.6
---------------------------------------------------- ---------
Polymer Additives & Specialty Plastics 15.3 12.1 14.1 17.3 58.8
Textile and Coatings Solutions 15.7 20.6 16.3 10.4 63.0
Consumer Specialties 5.6 7.5 7.0 3.9 24.0
---------------------------------------------------- ---------
Performance Materials 36.6 40.2 37.4 31.6 145.8
---------------------------------------------------- ---------
Segment Operating Income 185.2 175.7 201.1 204.9 766.9
==================================================== =========
</TABLE>
YEAR TO DATE:
<TABLE>
<CAPTION>
1998
----------------------------------------------------
Q1 YTD Q2 YTD Q3 YTD Q4 YTD
----------------------------------------------------
<S> <C> <C> <C> <C>
REVENUE
Landing Systems 222.3 456.5 695.9 963.2
Sensors & Integrated Systems 221.6 446.7 676.5 911.3
MRO 104.8 215.2 332.1 460.6
Aerostructures 302.6 585.0 861.3 1,144.2
----------------------------------------------------
Aerospace 851.3 1,703.4 2,565.8 3,479.3
Engineered Industrial Products 208.4 421.2 600.6 779.9
----------------------------------------------------
Polymer Additives & Specialty Plastics 110.3 219.0 322.7 431.3
Textile and Coatings Solutions 121.2 300.5 459.0 606.2
Consumer Specialties 20.9 73.8 116.4 158.1
----------------------------------------------------
Performance Materials 252.4 593.3 898.1 1,195.6
----------------------------------------------------
Segment Revenue 1,312.1 2,717.9 4,064.5 5,454.8
====================================================
OPERATING INCOME
Landing Systems 26.6 47.0 80.7 117.9
Sensors & Integrated Systems 41.2 80.3 123.2 170.3
MRO 5.3 12.4 19.8 22.7
Aerostructures 39.5 82.8 127.3 178.6
----------------------------------------------------
Aerospace 112.6 222.5 351.0 489.5
Engineered Industrial Products 36.0 61.6 96.8 131.6
----------------------------------------------------
Polymer Additives & Specialty Plastics 15.3 27.4 41.5 58.8
Textile and Coatings Solutions 15.7 36.3 52.8 63.2
Consumer Specialties 5.6 13.1 19.9 23.8
----------------------------------------------------
Performance Materials 36.6 76.8 114.2 145.8
----------------------------------------------------
Segment Operating Income 185.2 360.9 562.0 766.9
====================================================
</TABLE>
