Goodrich Corporation (GR: 66.65 0.00 0.00%) has begun qualification activities to upgrade the C-130 transport fleet of the U.S. Air Force with new boltless wheels and carbon brakes. The company expects to complete the qualification activities in the first quarter of 2011 and expects initial hardware deliveries soon thereafter.The Air Force has already assigned Goodrich with design, development and perform qualification activities; support flight testing; and to provide retrofit equipment for the Air Force’s C-130 fleet.
Goodrich’s C-130 wheel and brake retrofit features DURACARB carbon brakes that provide lighter weight, longer life, higher performance and lower cost of ownership compared to steel brakes. The boltless aircraft wheels with lock-ring design compared to traditional bolted aircraft wheels not only reduce parts count but also cut down on maintenance cost and time considerably.
In a separate development, Goodrich also inked a deal to supply wheels and electrically-actuated brakes to Qatar Airways for its Boeing 787 aircraft.
Goodrich has inked almost 80% of wheel and electric brake awards announced for the Boeing 787 aircraft. Manufacturers such as Airbus, Boeing (BA: 63.18 0.00 0.00%), Bombardier, Cessna, Embraer (ERJ: 21.84 0.00 0.00%), Lockheed Martin (LMT: 74.05 0.00 0.00%) and Northrop Grumman (NOC: 55.49 0.00 0.00%) use Goodrich aircraft wheels and brakes in more than 20,000 military, commercial, regional and business aircraft.
During the first-quarter earnings call, Goodrich maintained its fiscal-year 2010 total sales expectation of $7.1 billion, which reflects a 6% growth over 2009. Earnings per share are expected to range between $4.15 and $4.40. The Zacks Consensus Estimates for full years 2010 and 2011 are $4.36 per share and $5.14 per share, respectively.
Despite the positive contract wins, a tepid commercial aerospace market, high research and development overheads and the defense department’s plans of cutting down on the defense budget by $100 billion over the next five years keep us Neutral on Goodrich. The quantitative Zacks #3 Rank for the company indicates no clear directional pressure on the shares over the near term.Charlotte, North Carolina-based Goodrich is a global supplier of systems and services to the aerospace, defense and homeland security markets.
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