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Goodrich Corporation

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Goodrich Corporation
Company typePublic (NYSE: GR)
IndustryAerospace
FoundedAkron, Ohio, U.S. (1870)
Defunct2012
FateAcquired by United Technologies Corporation
HeadquartersCharlotte, North Carolina, U.S.
Key people
Marshall Larsen, (Chairman & CEO)
ProductsActuation systems
Aerostructures
Aircraft wheels and brakes
Electrical power systems
Engine components
Engine control systems
Engineered Polymer Products
Interiors
ISR systems
Undercarriage/landing gear
Sensors and integrated systems
Websitewww.goodrich.com

The Goodrich Corporation, formerly the B.F. Goodrich Company, was an American aerospace manufacturing company based in Charlotte, North Carolina. Founded in Akron, Ohio in 1870 as Goodrich, Tew & Co. by Dr. Benjamin Franklin Goodrich. The company name was changed to the "B.F. Goodrich Company" in 1880, to BFGoodrich in the 1980s, and to "Goodrich Corporation" in 2001.

In 1869 Benjamin Franklin Goodrich purchased the Hudson River Rubber Company, a small business in Hastings-on-Hudson, New York. The following year Goodrich accepted an offer of $13,600 from the citizens of Akron, Ohio, to relocate his business there. Goodrich ranked 67th among United States corporations in the value of World War II military production contracts.[1]

The company grew to be one of the largest tire and rubber manufacturers in the world, helped in part by the 1986 merger with Uniroyal (formerly the United States Rubber Company). This product line was sold to Michelin in 1988, and the company merged with Rohr (1997), Coltec Industries, and TRW Aeronautical Systems (formerly Lucas Aerospace) in 2002. The sale of the specialty chemicals division and subsequent change to the current name completed the transformation. In 2006, company sales were $5.8 billion, of which 18%, 16% and 12% of total revenues were accounted for by the U.S. government, Airbus and Boeing, respectively.[2]

Though BFGoodrich is a popular brand name of tires, the Goodrich Corporation exited the tire business in 1988. The tire business and use of the name was sold to Michelin. Before the sale to Michelin, Goodrich ran television and print ads showing an empty expanse of blue sky, to distinguish themselves from the similar-sounding Goodyear tire company. The tag line was, "See that blimp up in the sky? We're the other guys!" The company was also sometimes confused with Mr. Goodwrench as the two last names were very close and especially when B.F. Goodrich tires were featured on many General Motors cars and trucks.

History

Goodrich dealer's decorated car in Salt Lake City c. 1913
1920 advertisement for Goodrich Silvertown Tires
B.F. Goodrich Tires Logo. The Goodrich Corporation sold off its automotive tire division in 1988.

Early history

B.F. Goodrich sold radios from the 1930s to the 1950s, under the brand name "Mantola". These radios were actually made by a variety of manufacturers for B.F. Goodrich.

In 1936 the company entered the Mexican market in a joint venture with Euzkadi (Now part of Continental AG) (named:Goodrich-Euzkadi). The Troy, Ohio plant was purchased in 1946 from Waco. Since then, Goodrich has manufactured wheels and brakes for a variety of aircraft. Among these are commercial, military, regional, and business programs. This successful operation lies at the core of Goodrich's business. Competitors include the aerostructures divisions of companies such as Honeywell, Messier-Bugatti, Aircraft Braking Systems, (Howmet/Huck) and SNECMA. The Hood Rubber Company was sold before the Great Depression[3] as a division of the B.F. Goodrich Company.[4]

1980–1990s

By 1986 B.F. Goodrich had become an S&P 500-listed company in diverse business, including tire and rubber fabrication. B.F. Goodrich made high-performance replacement tires.[5] In August 1986, one of its biggest competitors in the tire business, Uniroyal Inc., was taken private[6] when it merged with the tire segment of the B.F. Goodrich Company, in a joint venture private partnership, to become the Uniroyal Goodrich Tire Company. B.F. Goodrich Company held a 50% stake in the new tire company.[7]

The new Uniroyal Goodrich Tire Company headquarters was set up at the former B.F. Goodrich corporate headquarters, within its 27-building downtown complex in Akron, Ohio which contained Goodrich's original factory. In the fall of 1987 B.F. Goodrich Company shut down several manufacturing operations at the site, and most of the complex remained vacant until February 1988, when B.F. Goodrich announced plans to sell the vacant part of the complex to the Covington Capital Corporation, a group of New York developers.[8]

In 1987, its first full year of operation, the new Uniroyal Goodrich Tire Company generated almost $2 billion in sales revenue, with profits of $35 million.[7]

However, the merger soon proved to be difficult.[5] In June 1988 B.F. Goodrich sold its 50% stake for $225 million. The buyers were a group of investors led by Clayton & Dubilier, Inc. a private New York investment firm.[7][9] At the same time, B.F. Goodrich also received a warrant to purchase indirectly up to 7% of the equity in Uniroyal Goodrich Tire Company.[10]

As part of the June 1988 sale deal, the new privately held tire company acquired publicly held debt of $415 million.[11][12][13]

Also in 1988, Michelin Group, a subsidiary of the French tire company Michelin et Cie (Euronext: ML) proposed to acquire the Uniroyal Goodrich Tire Company and took actions towards acquiring a stake.[5] By May 1990, Michelin Group had completed its buyout of Uniroyal Goodrich Tire Company from Clayton & Dubilier of New York. The deal was valued at about US$1.5 billion.[14] B.F. Goodrich surrendered its 7% warrant to Michelin Group, and received $32.5 million additional revenue from the sale.[10]

Leaving tire business

B.F. Goodrich by then exited the tire business entirely, in line with its plan to build its chemicals and aerospace businesses through reinvestment and acquisitions.[9] In 1997 it acquired Rohr, a maker of jet aircraft engine nacelles (the aerodynamic structures that surround aircraft engines), expanding its presence in integrated aircraft components industry.[15]

In 1999 it acquired Charlotte, North Carolina-based Coltec Industries for $2.2 billion in stock and assumed debt, making the former tire maker the No. 1 supplier of landing gear and other aircraft parts.[16] Headquarters were moved to Charlotte following this merger.[17]

In 2001, the company divested its specialty chemicals business to focus on aerospace and industrial products and, to signify the completion of its transformation, it was renamed Goodrich Corporation and adopted a new logo.[18]

In October 2002, Goodrich acquired TRW Aeronautical Systems, this division was mainly the former Lucas Aerospace activity, mostly based in the UK and France.[19]

In November 2010, Goodrich opened a large new manufacturing centre in Krosno Rzeszow, Poland.[20]

In September 2011, United Technologies Corporation (UTX) announced a deal to buy Goodrich for $18.4 billion, paying $127.50 per share and assuming $1.9 billion in debt.[21][22]

On July 26, 2012, United Technologies Corporation purchased Goodrich. Unsold divisions of Hamilton Sundstrand and Goodrich were then merged to create UTC Aerospace Systems. Rocketdyne, Hamilton Sundstrand's industrial pumps and compressors operations, Clipper Windpower, and UTC Power (United Technologies' fuel-cell business) would be sold off to raise cash for the deal. [23]

On October 16, 2012, United Technologies Corporation secured an agreement to sell the Power Systems division of Goodrich (Twinsburg Ohio, Pitstone Green Buckinghamshire) to Safran for $400 million. The sale of this business unit was a condition that the Chinese competition regulators set in approving UTC's purchase of Goodrich. The Power Systems division had to be divested by the 16th December 2012 [24]

Businesses

Actuation and landing systems

  • Actuation systems
  • Aircraft wheels and brakes
  • Aviation technical services
  • Landing gear
  • Engine components

Electronic systems

  • Sensors and Integrated systems
  • Engine control and electrical power systems
  • ISR (intelligence, surveillance, and reconnaissance) systems

and

Nacelles and interior systems

  • Aerostructures
  • Interiors
  • Customer services

Platforms

Civil

Military

Restatements

On Feb 24, 2004, Goodrich restated its fourth-quarter and full-year earnings results for 2003 after Pratt & Whitney notified the company that it was drastically cutting its order for engine casing components.[25]

Notable employees

  • Virgil A. Martin, Los Angeles, California, City Council member (1927–31)
  • David Grylls, Chula Vista, California, Olympic Silver Medal Winning Cyclist

References

  1. ^ Peck, Merton J. & Scherer, Frederic M. The Weapons Acquisition Process: An Economic Analysis (1962) Harvard Business School p.619
  2. ^ Standard and Poor's 500 Guide. The McGraw-Hill Companies, Inc. 2007. ISBN 0-07-147906-6. {{cite book}}: Cite has empty unknown parameter: |coauthors= (help)
  3. ^ Filmmaker documents the impact of Hood Rubber on Watertown's Armenian history, Jen Thomas, Wicked Local Watertown, 7 January 2007 (retrieved 8 September 2010)
  4. ^ Webshots. "Webshots - California Sea Lions, Ano Nuevo Island, California". webshots.com. Retrieved 3 September 2015.
  5. ^ a b c Uniroyal, Inc. Eau Claire Plant Records, 1917-1990, UWEC.edu
  6. ^ Jeremy J. Siegel, Stocks for the Long Run, Second Edition, 1998, ISBN 0-07-058043-X
  7. ^ a b c Uniroyal Goodrich Tire Co reports earnings for Qtr to Sept 30, New York Times Archive, Published: October 14, 1988
  8. ^ COMPANY NEWS; Goodrich to Sell Complex in Akron, AP, New York Times, February 18, 1988
  9. ^ a b Company News; Goodrich Outlook, REUTERS, New York Times Archive, Published: June 24, 1988
  10. ^ a b COMPANY NEWS; Goodrich Gains In Uniroyal Sale, REUTERS, New York Times Archive, May 3, 1990
  11. ^ Uniroyal Goodrich Tire Co reports earnings for Qtr to March 31, New York Times Archive, Published: April 25, 1989
  12. ^ FINANCE/NEW ISSUES; Uniroyal Goodrich Sets 2-Part Offer, New York Times Archive, June 17, 1988
  13. ^ Uniroyal Goodrich Tire reports earnings for Qtr to Dec 31, New York Times Archive, Published: February 23, 1990
  14. ^ INSIDE, New York Times, Published: September 23, 1989
  15. ^ FISHER, LAWRENCE M. (September 23, 1997). "Goodrich Plans to Buy Rohr In $789 Million Stock Deal". New York Times. pp. D2. Retrieved September 12, 2009.
  16. ^ "Goodrich in Deal To Add Coltec". New York Times. November 24, 1998. pp. C12. Retrieved September 12, 2009.
  17. ^ Hopkins, Stella (September 22, 1999). "B.F. Goodrich: No Layoffs Ahead". Charlotte Observer.
  18. ^ "The 21st Century". Retrieved September 12, 2009.
  19. ^ "Business briefs". Retrieved 2010-11-10.
  20. ^ "Goodrich to Acquire TRW Aeronautical Systems". 18 June 2002. Retrieved 12 October 2012.
  21. ^ "UTC To Acquire Goodrich For $18.4 B". Retrieved 2010-10-12.
  22. ^ "United Technologies buying Goodrich in $18.5B deal". USA Today. Retrieved 2010-10-12.
  23. ^ "United Tech beats Street, closes Goodrich deal". Reuters. Retrieved 2012-07-12.
  24. ^ "United Tech secures Power Systems divestment deal". utc. Retrieved 2012-12-07.
  25. ^ "Goodrich Restates Earnings for 2003".

Further reading

  • Blackford, Mansel G. and K. Austin Kerr. B. F. Goodrich: Tradition and Transformation, 1870–1995; (Ohio State University Press, 1996); ISBN 0-8142-0696-4.
  • Blackford, Mansel G. "B. F. Goodrich Becomes a Multinational Corporation, 1910-1929," Essays in Economic & Business History (1996), Vol. 14, pp 365-373.
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