clarinews@clarinet.com (02/02/90)
AKRON, Ohio (UPI) -- B.F. Goodrich Co. earnings fell 12 percent last year to $172.4 million, or $6.48 a share, from a record $195.7 million, or $7.42 a share, in 1988, the company reported Thursday. Goodrich said the decline was attributable to lower earnings in its polyvinyl chloride business during the second half of the year. Sales for the year totaled $2.4 billion, up from $2.3 billion in 1988. Fourth-quarter income was $27 million, or 98 cents a share, down 27 percent from $37.2 million, or $1.39 a share, in the fourth quarter of 1988. Quarterly sales were $573.7 million, down from $594.7 million. ``Our specialty chemicals and aerospace businesses continued to perform well during the fourth quarter, but company earnings were constrained by results from our vinyl business,'' Chairman John Ong said. For the year, Goodrich's Geon Vinyl Products business segment had operating income of $183.3 million, down 22 percent from the $233.6 million in operating income in 1988. ``While our earnings fell short of the record-setting results of 1988,'' Ong said, ``we still had the second best performance in the company's history. ``We are particularly encouraged by the continued growth and increased earnings capabilities of our specialty chemicals and aerospace businesses.'' Ong said Goodrich's polyvinyl chloride business performed at record levels during the first half of the year before earnings began to deteriorate. ``Industry PVC capacity expanded significantly and caused an imbalance between supply and demand,'' Ong said. ``Also, raw material prices declined, but not as rapidly as PVC prices. As a result, our profit margins were reduced.'' Specialty Chemicals segment operating income was $77.3 million, an increase of 12 percent from the $69.0 million in 1988. Aerospace segment operating income was $56.5 million, an increase of 37 percent from 1988 operating income of $41.4 million.