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BRIEFLY / AEROSPACE

Goodrich, Rockwell in Maintenance Pact

February 24, 2000|Bloomberg News

B.F. Goodrich Co. and Rockwell International Inc., makers of airplane equipment, said they formed a maintenance alliance they hope will help stabilize earnings during an expected slump in aircraft production. Rockwell Collins, which specializes in instrumentation and in-flight entertainment systems, will work with Goodrich Aviation Services to provide one-stop maintenance and repair services to airlines worldwide, the companies said. Goodrich services equipment that includes airframes, landing systems, thrust reversers, evacuation slides and engine components. By providing steady revenue instead of one-time sales, maintenance and parts will stabilize earnings as production of new aircraft declines in 2000, analysts said. Goodrich, based in Charlotte, N.C., is the largest U.S. maker of aircraft landing gear. Its shares fell 50 cents to close at $22.81 on the NYSE.

Separately, Raytheon said the SEC is seeking information on the company's planned restatement of results. Raytheon said it is cooperating with the SEC's informal inquiry. The Milwaukee-based company said last month that it would restate results for the last three years to reflect a change in how it accounts for some revenue in its aircraft division. Raytheon's Class B shares fell $1.75 to close at $19.19 on the NYSE.

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