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SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549


Form 10-Q

QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d)
OF THE SECURITIES EXCHANGE ACT OF 1934

For The Quarterly Period Ended March 31, 2003

Commission file number 1-892



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Goodrich Corporation

(Exact Name of Registrant as Specified in its Charter)


|                                                                                                       |  |                                                
|------------------------------------------------------------------------------------------------------ |  | -----------------------------------------------
|New York
(State or other jurisdiction of 
incorporation or organization)                               |  | 34-0252680
(I.R.S. Employer
Identification No.)
|                                                                                                       |  |                                                
|Four Coliseum Centre, 2730 West Tyvola 
Road,
Charlotte, N.C.
(Address of principal executive offices) |  | 28217
(Zip
Code)                               

Registrants telephone number, including area code:
704-423-7000

Indicate by check mark whether the registrant (1) has filed all reports
required to be filed by Section 13 or 15(d) of the Securities Exchange Act of
1934 during the preceding 12 months (or for such shorter period that the
registrant was required to file such reports) and (2) has been subject to such
filing requirements for the past 90 days.

Yes þNo o


Indicate by check mark whether the registrant is an accelerated filer (as
defined in Rule 12b-2 of the Exchange Act).

Yes þNo o


As of March 31, 2003, there were 117,542,647 shares of common stock
outstanding (excluding 14,000,000 shares held by a wholly owned subsidiary).
There is only one class of common stock.



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PART I. FINANCIAL INFORMATION

Item 1. Financial Statements

Independent Accountants Review Report

To the Shareholders and Board of Directors of Goodrich Corporation

We have reviewed the accompanying condensed consolidated balance sheet of
Goodrich Corporation and subsidiaries as of March 31, 2003, and the related
condensed consolidated statements of income and cash flows for the three-month
periods ended March 31, 2003 and 2002. These financial statements are the
responsibility of the Companys management.

We conducted our review in accordance with standards established by the
American Institute of Certified Public Accountants. A review of interim
financial information consists principally of applying analytical procedures to
financial data, and making inquiries of persons responsible for financial and
accounting matters. It is substantially less in scope than an audit conducted
in accordance with auditing standards generally accepted in the United States,
which will be performed for the full year with the objective of expressing an
opinion regarding the financial statements taken as a whole. Accordingly, we do
not express such an opinion.

Based on our review, we are not aware of any material modifications that should
be made to the accompanying condensed consolidated financial statements
referred to above for them to be in conformity with accounting principles
generally accepted in the United States.

We have previously audited, in accordance with auditing standards generally
accepted in the United States, the consolidated balance sheet of Goodrich
Corporation and subsidiaries as of December 31, 2002, and the related
consolidated statements of income, shareholders equity, and cash flows for the
year then ended, not presented herein; and in our report dated February 4,
2003, we expressed an unqualified opinion on those consolidated financial
statements. In our opinion, the information set forth in the accompanying
condensed consolidated balance sheet as of December 31, 2002, is fairly stated,
in all material respects, in relation to the consolidated balance sheet from
which it has been derived.

| |                       
| | ----------------------
| | /s/  Ernst & Young LLP

Charlotte, North Carolina
May 8, 2003

1



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##### 



GOODRICH CORPORATION
CONDENSED CONSOLIDATED STATEMENT OF INCOME (UNAUDITED)
(DOLLARS IN MILLIONS, EXCEPT PER SHARE AMOUNTS)

|                                                          |                                           |   |                    |       |      |   |       |       |  
|--------------------------------------------------------- | ----------------------------------------- | - | ------------------ | ----- | ---- | - | ----- | ----- | -
|                                                          |                                           |   | Three Months Ended
|                                                          |                                           |   | March 31,         
|                                                          |                                           |   |                   
|                                                          |                                           |   | 2003               |       | 2002
|                                                          |                                           |   |                    |       |     
|Sales                                                     |                                           | $ | 1,094.2            |       |      | $ | 895.8 |      
|Operating Costs and Expenses:                             |                                           |   |                    |       |      |   |       |      
|                                                          | Cost of sales                             |   |                    | 899.8 |      |   |       | 673.3 |  
|                                                          | Selling and administrative expenses       |   |                    | 182.4 |      |   |       | 111.7 |  
|                                                          | Restructuring and consolidation costs     |   |                    | 9.1   |      |   |       | 6.9   |  
|                                                          |                                           |   |                    |       |      |   |       |      
|                                                          |                                           |   | 1,091.3            |       |      |   | 791.9 |      
|                                                          |                                           |   |                    |       |      |   |       |      
|Operating income                                          |                                           |   | 2.9                |       |      |   | 103.9 |      
|Interest expense                                          |                                           |   | (39.9              | )     |      |   | (23.1 | )    
|Interest income                                           |                                           |   | 4.5                |       |      |   | 6.1   |      
|Other income (expense) - net                              |                                           |   | (12.6              | )     |      |   | (9.3  | )    
|                                                          |                                           |   |                    |       |      |   |       |      
|Income (loss) before income taxes and Trust distributions |                                           |   | (45.1              | )     |      |   | 77.6  |      
|Income tax benefit (expense)                              |                                           |   | 14.9               |       |      |   | (25.6 | )    
|Distributions on Trust Preferred Securities               |                                           |   | (2.6               | )     |      |   | (2.6  | )    
|                                                          |                                           |   |                    |       |      |   |       |      
|Income (loss) from continuing operations                  |                                           |   | (32.8              | )     |      |   | 49.4  |      
|Income from discontinued operations                       |                                           |   | 62.7               |       |      |   | 1.0   |      
|Cumulative effect of change in accounting                 |                                           |   | (0.5               | )     |      |   | (36.1 | )    
|                                                          |                                           |   |                    |       |      |   |       |      
|Net income                                                |                                           | $ | 29.4               |       |      | $ | 14.3  |      
|                                                          |                                           |   |                    |       |      |   |       |      
|Basic Earnings (Loss) per Share:                          |                                           |   |                    |       |      |   |       |      
|                                                          | Continuing operations                     |   | $                  | (0.28 | )    |   | $     | 0.48  |  
|                                                          | Discontinued operations                   |   |                    | 0.53  |      |   |       | 0.01  |  
|                                                          | Cumulative effect of change in accounting |   |                    | -.-   |      |   |       | (0.35 | )
|                                                          |                                           |   |                    |       |      |   |       |      
|                                                          | Net income                                |   | $                  | 0.25  |      |   | $     | 0.14  |  
|                                                          |                                           |   |                    |       |      |   |       |      
|Diluted Earnings (Loss) per Share:                        |                                           |   |                    |       |      |   |       |      
|                                                          | Continuing operations                     |   | $                  | (0.28 | )    |   | $     | 0.47  |  
|                                                          | Discontinued operations                   |   |                    | 0.53  |      |   |       | 0.02  |  
|                                                          | Cumulative effect of change in accounting |   |                    | -.-   |      |   |       | (0.34 | )
|                                                          |                                           |   |                    |       |      |   |       |      
|                                                          | Net income                                |   | $                  | 0.25  |      |   | $     | 0.15  |  
|                                                          |                                           |   |                    |       |      |   |       |      
|Dividends declared per common share                       |                                           | $ | 0.20               |       |      | $ | 0.275 |      
|                                                          |                                           |   |                    |       |      |   |       |      

See notes to unaudited condensed consolidated financial statements.

2



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##### 



GOODRICH CORPORATION
CONDENSED CONSOLIDATED BALANCE SHEET (UNAUDITED)
(DOLLARS IN MILLIONS)

|                                                                             |                             |                                                                                                                               |                                                                                                                                                                                                      |                           |         |           |         |              |         |         |         | 
|---------------------------------------------------------------------------- | --------------------------- | ----------------------------------------------------------------------------------------------------------------------------- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | ------------------------- | ------- | --------- | ------- | ------------ | ------- | ------- | ------- | 
|                                                                             |                             |                                                                                                                               |                                                                                                                                                                                                      |                           |         | March 31, |         | December 31,
|                                                                             |                             |                                                                                                                               |                                                                                                                                                                                                      |                           |         | 2003      |         | 2002        
|                                                                             |                             |                                                                                                                               |                                                                                                                                                                                                      |                           |         |           |         |             
|ASSETS                                                                       |                             |                                                                                                                               |                                                                                                                                                                                                      |                           |         |           |         |             
|Current Assets                                                               |                             |                                                                                                                               |                                                                                                                                                                                                      |                           |         |           |         |             
|                                                                             |                             | Cash and cash equivalents                                                                                                     |                                                                                                                                                                                                      | $                         | 185.8   |           |         | $            | 149.9   |        
|                                                                             |                             | Accounts and notes receivable, less allowances
for doubtful receivables ($34.5 at
March 31, 2003; $31.4 at December 31, 2002) |                                                                                                                                                                                                      |                           | 699.1   |           |         |              | 716.0   |        
|                                                                             |                             | Inventories                                                                                                                   |                                                                                                                                                                                                      |                           | 931.0   |           |         |              | 952.7   |        
|                                                                             |                             | Deferred income taxes                                                                                                         |                                                                                                                                                                                                      |                           | 117.4   |           |         |              | 121.3   |        
|                                                                             |                             | Prepaid expenses and other assets                                                                                             |                                                                                                                                                                                                      |                           | 37.6    |           |         |              | 38.0    |        
|                                                                             |                             | Assets of discontinued operations                                                                                             |                                                                                                                                                                                                      |                           | -.-     |           |         |              | 46.5    |        
|                                                                             |                             |                                                                                                                               |                                                                                                                                                                                                      |                           |         |           |         |             
|                                                                             |                             |                                                                                                                               | Total Current Assets                                                                                                                                                                                 |                           |         | 1,970.9   |         |              |         | 2,024.4 |        
|                                                                             |                             |                                                                                                                               |                                                                                                                                                                                                      |                           |         |           |         |             
|Property, plant and equipment                                                |                             |                                                                                                                               | 1,198.4                                                                                                                                                                                              |                           |         |           | 1,222.4 |             
|Prepaid pension                                                              |                             |                                                                                                                               | 260.9                                                                                                                                                                                                |                           |         |           | 250.5   |             
|Goodwill                                                                     |                             |                                                                                                                               | 1,193.9                                                                                                                                                                                              |                           |         |           | 1,194.2 |             
|Identifiable intangible assets                                               |                             |                                                                                                                               | 455.6                                                                                                                                                                                                |                           |         |           | 464.8   |             
|Payment-in-kind notes receivable, less discount
($11.0 at December 31, 2002) |                             |                                                                                                                               | -.-                                                                                                                                                                                                  |                           |         |           | 141.7   |             
|Deferred income taxes                                                        |                             |                                                                                                                               | 78.3                                                                                                                                                                                                 |                           |         |           | 45.5    |             
|Other assets                                                                 |                             |                                                                                                                               | 568.3                                                                                                                                                                                                |                           |         |           | 644.8   |             
|                                                                             |                             |                                                                                                                               |                                                                                                                                                                                                      |                           |         |           |         |             
|                                                                             |                             | $                                                                                                                             | 5,726.3                                                                                                                                                                                              |                           |         | $         | 5,988.3 |             
|                                                                             |                             |                                                                                                                               |                                                                                                                                                                                                      |                           |         |           |         |             
|LIABILITIES AND SHAREHOLDERS EQUITY                                         |                             |                                                                                                                               |                                                                                                                                                                                                      |                           |         |           |         |             
|Current Liabilities                                                          |                             |                                                                                                                               |                                                                                                                                                                                                      |                           |         |           |         |             
|                                                                             |                             | Short-term bank debt                                                                                                          |                                                                                                                                                                                                      | $                         | -.-     |           |         | $            | 379.2   |        
|                                                                             |                             | Accounts payable                                                                                                              |                                                                                                                                                                                                      |                           | 404.6   |           |         |              | 435.8   |        
|                                                                             |                             | Accrued expenses                                                                                                              |                                                                                                                                                                                                      |                           | 624.3   |           |         |              | 566.9   |        
|                                                                             |                             | Income taxes payable                                                                                                          |                                                                                                                                                                                                      |                           | 260.9   |           |         |              | 150.8   |        
|                                                                             |                             | Liabilities of discontinued operations                                                                                        |                                                                                                                                                                                                      |                           | -.-     |           |         |              | 16.3    |        
|                                                                             |                             | Current maturities of long-term debt
and capital lease obligations                                                            |                                                                                                                                                                                                      |                           | 3.6     |           |         |              | 3.9     |        
|                                                                             |                             |                                                                                                                               |                                                                                                                                                                                                      |                           |         |           |         |             
|                                                                             |                             |                                                                                                                               |                                                                                                                                                                                                      | Total Current Liabilities |         |           | 1,293.4 |              |         |         | 1,552.9 | 
|                                                                             |                             |                                                                                                                               |                                                                                                                                                                                                      |                           |         |           |         |             
|Long-term debt and capital lease obligations                                 |                             |                                                                                                                               | 2,132.1                                                                                                                                                                                              |                           |         |           | 2,129.0 |             
|Pension obligations                                                          |                             |                                                                                                                               | 723.9                                                                                                                                                                                                |                           |         |           | 722.1   |             
|Postretirement benefits other than pensions                                  |                             |                                                                                                                               | 320.6                                                                                                                                                                                                |                           |         |           | 323.2   |             
|Other non-current liabilities                                                |                             |                                                                                                                               | 189.5                                                                                                                                                                                                |                           |         |           | 202.8   |             
|Commitments and contingent liabilities                                       |                             |                                                                                                                               |                                                                                                                                                                                                     |                           |         |           |        |             
|Mandatorily redeemable preferred securities of trust                         |                             |                                                                                                                               | 125.5                                                                                                                                                                                                |                           |         |           | 125.4   |             
|Shareholders Equity                                                         |                             |                                                                                                                               |                                                                                                                                                                                                      |                           |         |           |         |             
|                                                                             | Common stock - $5 par value |                                                                                                                               |                                                                                                                                                                                                      |                           |         |           |         |              |        
|                                                                             |                             |                                                                                                                               | Authorized 200,000,000 shares; issued 131,066,776
shares at March 31, 2003, and 130,568,582 shares at
December 31, 2002 (excluding 14,000,000 shares
held by a wholly-owned subsidiary at each date) |                           |         | 655.3     |         |              |         | 652.9   |        
|                                                                             |                             | Additional capital                                                                                                            |                                                                                                                                                                                                      |                           | 1,032.6 |           |         |              | 1,027.4 |        
|                                                                             |                             | Income retained in the business                                                                                               |                                                                                                                                                                                                      |                           | 42.0    |           |         |              | 36.1    |        
|                                                                             |                             | Accumulated other comprehensive income                                                                                        |                                                                                                                                                                                                      |                           | (374.0  | )         |         |              | (369.1  | )      
|                                                                             |                             | Unearned compensation                                                                                                         |                                                                                                                                                                                                      |                           | (1.5    | )         |         |              | (1.6    | )      
|                                                                             |                             | Common stock held in treasury, at cost (13,524,129 shares at March 31, 2003, and 13,506,977
shares at December 31, 2002)      |                                                                                                                                                                                                      |                           | (413.1  | )         |         |              | (412.8  | )      
|                                                                             |                             |                                                                                                                               |                                                                                                                                                                                                      |                           |         |           |         |             
|Total Shareholders Equity                                                   |                             |                                                                                                                               | 941.3                                                                                                                                                                                                |                           |         |           | 932.9   |             
|                                                                             |                             |                                                                                                                               |                                                                                                                                                                                                      |                           |         |           |         |             
|                                                                             |                             | $                                                                                                                             | 5,726.3                                                                                                                                                                                              |                           |         | $         | 5,988.3 |             
|                                                                             |                             |                                                                                                                               |                                                                                                                                                                                                      |                           |         |           |         |             

See notes to unaudited condensed consolidated financial statements.

3



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GOODRICH CORPORATION
CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS (UNAUDITED)
(DOLLARS IN MILLIONS)

|                                                             |                                                                                                                        |                                                                                                  |                                          |        |                    |       |       |       |      |       |  
|------------------------------------------------------------ | ---------------------------------------------------------------------------------------------------------------------- | ------------------------------------------------------------------------------------------------ | ---------------------------------------- | ------ | ------------------ | ----- | ----- | ----- | ---- | ----- | -
|                                                             |                                                                                                                        |                                                                                                  |                                          |        | Three Months Ended
|                                                             |                                                                                                                        |                                                                                                  |                                          |        | March 31,         
|                                                             |                                                                                                                        |                                                                                                  |                                          |        |                   
|                                                             |                                                                                                                        |                                                                                                  |                                          |        | 2003               |       | 2002 
|                                                             |                                                                                                                        |                                                                                                  |                                          |        |                    |       |      
|OPERATING ACTIVITIES                                         |                                                                                                                        |                                                                                                  |                                          |        |                    |       |       |      
|                                                             | Income (loss) from continuing operations                                                                               |                                                                                                  | $                                        | (32.8  | )                  |       | $     | 49.4  |     
|                                                             | Adjustments to reconcile income (loss) from continuing operations to net
cash provided (used) by operating activities: |                                                                                                  |                                          |        |                    |       |       |       |     
|                                                             |                                                                                                                        | Restructuring and consolidation:                                                                 |                                          |        |                    |       |       |       |      |      
|                                                             |                                                                                                                        |                                                                                                  | Expenses                                 |        |                    | 15.3  |       |       |      | 6.9   |  
|                                                             |                                                                                                                        |                                                                                                  | Payments                                 |        |                    | (10.3 | )     |       |      | (10.8 | )
|                                                             |                                                                                                                        | Super 27 asset impairment                                                                        |                                          |        | 79.9               |       |       |       | -.-  |      
|                                                             |                                                                                                                        | Depreciation and amortization                                                                    |                                          |        | 56.3               |       |       |       | 36.8 |      
|                                                             |                                                                                                                        | Deferred income taxes                                                                            |                                          |        | 4.5                |       |       |       | (1.9 | )    
|                                                             |                                                                                                                        | Net gains on sales of businesses                                                                 |                                          |        | -.-                |       |       |       | (0.1 | )    
|                                                             |                                                                                                                        | Payment-in-kind interest income                                                                  |                                          |        | (4.3               | )     |       |       | (5.5 | )    
|                                                             |                                                                                                                        | Change in assets and liabilities, net of effects of acquisitions and dispositions
of Businesses: |                                          |        |                    |       |       |       |      |      
|                                                             |                                                                                                                        |                                                                                                  | Receivables                              |        |                    | 12.0  |       |       |      | 30.6  |  
|                                                             |                                                                                                                        |                                                                                                  | Change in receivables sold, net          |        |                    | (2.1  | )     |       |      | (11.7 | )
|                                                             |                                                                                                                        |                                                                                                  | Inventories                              |        |                    | (11.0 | )     |       |      | (22.5 | )
|                                                             |                                                                                                                        |                                                                                                  | Other current assets                     |        |                    | (10.4 | )     |       |      | 2.1   |  
|                                                             |                                                                                                                        |                                                                                                  | Accounts payable                         |        |                    | (38.3 | )     |       |      | (52.0 | )
|                                                             |                                                                                                                        |                                                                                                  | Accrued expenses                         |        |                    | 37.5  |       |       |      | (47.6 | )
|                                                             |                                                                                                                        |                                                                                                  | Income taxes payable                     |        |                    | 36.5  |       |       |      | 70.6  |  
|                                                             |                                                                                                                        |                                                                                                  | Other non-current assets and liabilities |        |                    | (11.2 | )     |       |      | 15.4  |  
|                                                             |                                                                                                                        |                                                                                                  |                                          |        |                    |       |       |       |     
|                                                             | Net cash provided by operating activities of continuing operations                                                     |                                                                                                  |                                          | 121.6  |                    |       |       | 59.7  |     
|                                                             |                                                                                                                        |                                                                                                  |                                          |        |                    |       |       |       |     
|INVESTING ACTIVITIES                                         |                                                                                                                        |                                                                                                  |                                          |        |                    |       |       |      
|                                                             | Purchases of property                                                                                                  |                                                                                                  |                                          | (19.9  | )                  |       |       | (17.1 | )   
|                                                             | Proceeds from sale of property                                                                                         |                                                                                                  |                                          | 2.4    |                    |       |       | 1.1   |     
|                                                             | Proceeds from sale of businesses                                                                                       |                                                                                                  |                                          | -.-    |                    |       |       | 0.5   |     
|                                                             | Proceeds from sale of payment-in-kind
note                                                                             |                                                                                                  |                                          | 151.9  |                    |       |       | -.-   |     
|                                                             | Payments made in connection with acquisitions, net of cash acquired                                                    |                                                                                                  |                                          | (2.4   | )                  |       |       | (0.4  | )   
|                                                             |                                                                                                                        |                                                                                                  |                                          |        |                    |       |       |       |     
|                                                             | Net cash provided (used) by investing activities of continuing operations                                              |                                                                                                  |                                          | 132.0  |                    |       |       | (15.9 | )   
|                                                             |                                                                                                                        |                                                                                                  |                                          |        |                    |       |       |       |     
|FINANCING ACTIVITIES                                         |                                                                                                                        |                                                                                                  |                                          |        |                    |       |       |      
|                                                             | Increase (decrease) in short-term debt                                                                                 |                                                                                                  |                                          | (379.7 | )                  |       |       | 33.4  |     
|                                                             | Proceeds from issuance of long-term
debt                                                                               |                                                                                                  |                                          | 5.5    |                    |       |       | -.-   |     
|                                                             | Repayment of long-term debt and capital lease obligations                                                              |                                                                                                  |                                          | (1.9   | )                  |       |       | (0.1  | )   
|                                                             | Proceeds from issuance of capital stock                                                                                |                                                                                                  |                                          | -.-    |                    |       |       | 1.1   |     
|                                                             | Purchases of treasury stock                                                                                            |                                                                                                  |                                          | -.-    |                    |       |       | (4.7  | )   
|                                                             | Dividends                                                                                                              |                                                                                                  |                                          | (23.4  | )                  |       |       | (28.0 | )   
|                                                             | Distributions on Trust preferred securities                                                                            |                                                                                                  |                                          | (2.6   | )                  |       |       | (4.8  | )   
|                                                             |                                                                                                                        |                                                                                                  |                                          |        |                    |       |       |       |     
|                                                             | Net cash used by financing activities of continuing operations                                                         |                                                                                                  |                                          | (402.1 | )                  |       |       | (3.1  | )   
|DISCONTINUED OPERATIONS                                      |                                                                                                                        |                                                                                                  |                                          |        |                    |       |       |      
|                                                             | Net cash provided (used) by discontinued operations                                                                    |                                                                                                  |                                          | 185.0  |                    |       |       | (22.8 | )   
|                                                             |                                                                                                                        |                                                                                                  |                                          |        |                    |       |       |       |     
|Effect of Exchange Rate Changes on Cash and Cash Equivalents |                                                                                                                        |                                                                                                  | (0.6                                     | )      |                    |       | 0.2   |      
|                                                             |                                                                                                                        |                                                                                                  |                                          |        |                    |       |       |       |     
|Net Increase in Cash and Cash Equivalents                    |                                                                                                                        |                                                                                                  | 35.9                                     |        |                    |       | 18.1  |      
|Cash and Cash Equivalents at Beginning of Period             |                                                                                                                        |                                                                                                  | 149.9                                    |        |                    |       | 85.8  |      
|                                                             |                                                                                                                        |                                                                                                  |                                          |        |                    |       |       |       |     
|Cash and Cash Equivalents at End of Period                   |                                                                                                                        | $                                                                                                | 185.8                                    |        |                    | $     | 103.9 |      
|                                                             |                                                                                                                        |                                                                                                  |                                          |        |                    |       |       |       |     

See notes to unaudited condensed consolidated financial statements.

4



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##### 



GOODRICH CORPORATION

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(UNAUDITED)

Note A: Basis of Interim Financial Statement Preparation

The accompanying unaudited condensed consolidated financial statements of
Goodrich Corporation and its subsidiaries have been prepared in accordance with
the instructions to Form 10-Q and do not include all of the information and
footnotes required by accounting principles generally accepted in the United
States for complete financial statements. Unless indicated otherwise or the
context requires, the terms we, our, us, Goodrich or Company refer to
Goodrich Corporation and its subsidiaries. In our opinion, all adjustments
(consisting of normal recurring accruals) considered necessary for a fair
presentation have been included. Certain amounts in prior year financial
statements have been reclassified to conform to the current year presentation.
Operating results for the three months ended March 31, 2003 are not necessarily
indicative of the results that may be achieved for the year ending December 31,
2003. For further information, refer to the consolidated financial statements
and footnotes included in our Annual Report on Form 10-K for the year ended
December 31, 2002.

The Company completed its acquisition of TRW Inc.s Aeronautical Systems
businesses during the fourth quarter of 2002. The results of the Aeronautical
Systems businesses are included from the date of acquisition, and are therefore
included in the first quarter 2003 results, but not the first quarter 2002
results.

As discussed in Note J, our former Engineered Industrial Products segment,
our Avionics business and our Passenger Restraints business have been accounted
for as discontinued operations. Unless otherwise noted, disclosures herein
pertain to our continuing operations.

Note B: Stock-Based Employee Compensation

During the first quarter of 2003, the Company adopted Statement No. 148,
Accounting for Stock-Based Compensation  Transition and Disclosures (SFAS
148), which amends Statement No. 123 Accounting for Stock-Based Compensation
(SFAS 123). The interim disclosures required by SFAS 148 are presented below.

The Company grants stock options and performance shares to certain
employees, and administers an employee stock purchase plan. Stock-based
employee compensation is accounted for in accordance with Accounting Principles
Board Opinion No. 25, Accounting for Stock Issued to Employees. No
compensation expense is included in net income for stock options or employee
stock purchase plan shares. Compensation expense is recognized for performance
shares based on an estimate of the number of shares that will be earned
adjusted for changes in the market price of the Companys stock.

5



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##### 



The following table represents the effect on net income and earnings per
share if the Company had applied the fair value based method and recognition
provisions of SFAS 123. For purposes of the pro forma disclosures, the
estimated fair value of stock options at the date of grant is amortized to
expense over the stock option vesting period. Pro forma compensation expense
for the employee stock purchase plan awards in a given year included both the
fair value of the option to purchase shares at the date of grant and additional
compensation to reflect the discounted purchase price. The grant-date fair
value of performance shares is amortized to expense over the three-year plan
cycle without adjustments for subsequent changes in the market price of the
Companys common stock.

|                                        |                                                                                                                                  |      |              |      |   |   |      |      |  
|--------------------------------------- | -------------------------------------------------------------------------------------------------------------------------------- | ---- | ------------ | ---- | - | - | ---- | ---- | -
|                                        |                                                                                                                                  |      | Three Months
|                                        |                                                                                                                                  |      | Ended       
|                                        |                                                                                                                                  |      | March 31,   
|                                        |                                                                                                                                  |      |             
|(in millions, except per share amounts) |                                                                                                                                  | 2003 |              | 2002
|                                        |                                                                                                                                  |      |              |     
|Net income, as reported                 |                                                                                                                                  | $    | 29.4         |      |   | $ | 14.3 |     
|                                        | Stock-based employee compensation
expense (income) included in reported net
income, net of related tax effects                   |      |              | (3.0 | ) |   |      | 3.2  |  
|                                        | Stock-based employee compensation
(expense) income determined under fair value
method for all awards, net of related tax effects |      |              | (0.2 | ) |   |      | (4.4 | )
|                                        |                                                                                                                                  |      |              |      |   |   |      |     
|Pro forma net income                    |                                                                                                                                  | $    | 26.2         |      |   | $ | 13.1 |     
|                                        |                                                                                                                                  |      |              |      |   |   |      |     
|Earnings per share:                     |                                                                                                                                  |      |              |      |   |   |      |     
|                                        | Basic, as reported                                                                                                               |      | $            | 0.25 |   |   | $    | 0.14 |  
|                                        |                                                                                                                                  |      |              |      |   |   |      |     
|                                        | Basic, pro forma                                                                                                                 |      | $            | 0.22 |   |   | $    | 0.13 |  
|                                        |                                                                                                                                  |      |              |      |   |   |      |     
|                                        | Diluted, as reported                                                                                                             |      | $            | 0.25 |   |   | $    | 0.15 |  
|                                        |                                                                                                                                  |      |              |      |   |   |      |     
|                                        | Diluted, pro forma                                                                                                               |      | $            | 0.22 |   |   | $    | 0.14 |  
|                                        |                                                                                                                                  |      |              |      |   |   |      |     

The Company recorded income related to stock-based compensation in the
first quarter of 2003 as a result of revisions to the estimated payout on
performance share plans.

Note C: Inventories

Inventories consist of:

|                                                         |                                               |   |                       |       |              |   |         |       |  
|-------------------------------------------------------- | --------------------------------------------- | - | --------------------- | ----- | ------------ | - | ------- | ----- | -
|                                                         |                                               |   | March 31,             |       | December 31,
|                                                         |                                               |   | 2003                  |       | 2002        
|                                                         |                                               |   |                       |       |             
|                                                         |                                               |   | (Dollars in millions)
|FIFO or average cost (which approximates current costs): |                                               |   |                       |       |              |   |         |      
|                                                         | Finished products                             |   | $                     | 246.2 |              |   | $       | 238.5 |  
|                                                         | In process                                    |   |                       | 567.7 |              |   |         | 557.4 |  
|                                                         | Raw materials and supplies                    |   |                       | 219.7 |              |   |         | 249.8 |  
|                                                         |                                               |   |                       |       |              |   |         |      
|                                                         |                                               |   | 1,033.6               |       |              |   | 1,045.7 |      
|Less:                                                    |                                               |   |                       |       |              |   |         |      
|                                                         | Reserve to reduce certain inventories to LIFO |   |                       | (40.6 | )            |   |         | (40.3 | )
|                                                         | Progress payments and advances                |   |                       | (62.0 | )            |   |         | (52.7 | )
|                                                         |                                               |   |                       |       |              |   |         |      
|Total                                                    |                                               | $ | 931.0                 |       |              | $ | 952.7   |      

The preproduction inventory balance on the Boeing 717-200 contract was
$30.4 million as of March 31, 2003.

6



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##### 



Note D: Business Segment Information

Effective January 1, 2003, the Company reorganized into three business
segments: Airframe Systems, Engine Systems and Electronic Systems. The
reorganization was designed to enhance communication and maximize synergies in
a streamlined organization. Segment financial results for prior periods have
been restated to reflect the new organization.

Airframe Systems:Airframe Systems provides systems and components
pertaining to aircraft taxi, take-off, landing and stopping. Several business
units within the segment are linked by their ability to contribute to the
integration, design, manufacture and service of entire aircraft undercarriage
systems, including landing gear, wheels and brakes and certain brake controls.
Airframe Systems also includes the aviation technical services division which
performs comprehensive total aircraft maintenance, repair, overhaul and
modification services for many commercial airlines, independent operators,
aircraft leasing companies and airfreight carriers. The segment also includes
the actuation systems, flight controls and customer services business units
that were acquired as part of Aeronautical Systems. Actuation systems provides
systems that control the movement of steering systems for missiles and
electro-mechanical systems that are characterized by high power, low weight,
low maintenance, resistance to extreme temperatures and vibrations and high
reliability. Flight controls provides actuators for primary flight control
systems that operate elevators, ailerons and rudders, and secondary flight
controls systems such as flaps and slats. The customer service business
supports aftermarket products for the Aeronautical Systems businesses.

Engine Systems:Engine Systems includes the aerostructures business unit,
a leading supplier of nacelles, pylons, thrust reversers and related aircraft
engine housing components. The segment also produces engine and fuel
controls, pumps, fuel delivery systems, and structural and rotating components
such as discs, blisks, shafts and airfoils for both aerospace and industrial
gas turbine applications. The segment includes the cargo systems and engine
controls business units, which were acquired as a part of Aeronautical Systems.
Cargo systems produces fully-integrated main deck and lower lobe cargo systems
for wide body aircraft. Engine systems provides engine control systems and
components for jet engines used on commercial and military aircraft, including
fuel metering controls, fuel pumping systems, electronic control software and
hardware, variable geometry actuation controls, afterburner fuel pump and
metering unit nozzles, and engine health monitoring systems.

Electronic Systems:Electronic Systems produces a wide array of products
that provide flight performance measurements, flight management, and control
and safety data. Included are a variety of sensors systems that measure and
manage aircraft fuel and monitor oil debris, engine, transmission and
structural health, and aircraft motion control systems. The segments products
also include warning and detection systems, ice detection systems, test
equipment, aircraft lighting systems, landing gear cables and harnesses,
satellite control, data management and payload systems, launch and missile
telemetry systems, airborne surveillance and reconnaissance systems and laser
warning systems, aircraft evacuation systems, de-icing systems, ejection seats
and crew and attendant seating. The power systems business unit, which was
acquired as part of Aeronautical Systems, provides systems that produce and
control electrical power for commercial and military aircraft, including
electric generators for both main and back-up electrical power, electric
starters and electric starter generating systems and power management and
distribution systems. The hoists and winches business unit, also acquired as
part of Aeronautical Systems, provides airborne hoists and winches used on both
helicopters and fixed wing aircraft.

7



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##### 



Segment operating income is total segment revenue reduced by operating
expenses identifiable with that business segment. The accounting policies of
the reportable segments are the same as those for Goodrich consolidated. There
are no significant inter-segment sales.

|                                              |                    |                        |       |                       |         |      |       |       |       | 
|--------------------------------------------- | ------------------ | ---------------------- | ----- | --------------------- | ------- | ---- | ----- | ----- | ----- | 
|                                              |                    |                        |       | Three Months Ended   
|                                              |                    |                        |       | March 31,            
|                                              |                    |                        |       |                      
|                                              |                    |                        |       | 2003                  |         | 2002
|                                              |                    |                        |       |                       |         |     
|                                              |                    |                        |       | (Dollars in millions)
|Sales                                         |                    |                        |       |                       |         |      |       |      
|                                              | Airframe Systems   |                        | $     | 454.7                 |         |      | $     | 334.6 |      
|                                              | Engine Systems     |                        |       | 385.7                 |         |      |       | 344.9 |      
|                                              | Electronic Systems |                        |       | 253.8                 |         |      |       | 216.3 |      
|                                              |                    |                        |       |                       |         |      |       |       |      
|                                              |                    | Total Sales            |       | $                     | 1,094.2 |      |       | $     | 895.8 | 
|                                              |                    |                        |       |                       |         |      |       |       |      
|Segment Operating Income (Loss)               |                    |                        |       |                       |         |      |       |      
|                                              | Airframe Systems   |                        | $     | 22.8                  |         |      | $     | 32.4  |      
|                                              | Engine Systems     |                        |       | (35.9                 | )       |      |       | 56.9  |      
|                                              | Electronic Systems |                        |       | 31.9                  |         |      |       | 30.2  |      
|                                              |                    |                        |       |                       |         |      |       |       |      
|                                              |                    |                        | 18.8  |                       |         |      | 119.5 |      
|Corporate General and Administrative Expenses |                    |                        | (15.9 | )                     |         |      | (15.6 | )    
|                                              |                    |                        |       |                       |         |      |       |       |      
|                                              |                    | Total Operating Income |       | $                     | 2.9     |      |       | $     | 103.9 | 
|                                              |                    |                        |       |                       |         |      |       |       |      

Segment assets include assets directly identifiable with each segment.
Corporate assets include assets not specifically identified with a business
segment, including cash.

|       |                                   |              |   |           |         |              |   |         |         | 
|------ | --------------------------------- | ------------ | - | --------- | ------- | ------------ | - | ------- | ------- | 
|       |                                   |              |   | March 31, |         | December 31,
|       |                                   |              |   | 2003      |         | 2002        
|       |                                   |              |   |           |         |             
|Assets |                                   |              |   |           |         |              |   |        
|       | Airframe Systems                  |              | $ | 1,640.4   |         |              | $ | 1,635.8 |        
|       | Engine Systems                    |              |   | 1,858.7   |         |              |   | 1,953.7 |        
|       | Electronic Systems                |              |   | 1,424.9   |         |              |   | 1,447.5 |        
|       | Assets of Discontinued Operations |              |   | -.-       |         |              |   | 46.5    |        
|       | Corporate                         |              |   | 802.3     |         |              |   | 904.8   |        
|       |                                   |              |   |           |         |              |   |        
|       |                                   | Total Assets |   | $         | 5,726.3 |              |   | $       | 5,988.3 | 
|       |                                   |              |   |           |         |              |   |         |        

Note E: Earnings Per Share

The computation of basic and diluted earnings per share from continuing
operations is as follows:

|                                                                                        |                                                                                                       |                                                                                              |       |              |   |   |      |       |     | 
|--------------------------------------------------------------------------------------- | ----------------------------------------------------------------------------------------------------- | -------------------------------------------------------------------------------------------- | ----- | ------------ | - | - | ---- | ----- | --- | 
|                                                                                        |                                                                                                       |                                                                                              |       | Three Months
|                                                                                        |                                                                                                       |                                                                                              |       | Ended       
|                                                                                        |                                                                                                       |                                                                                              |       | March 31,   
|                                                                                        |                                                                                                       |                                                                                              |       |             
|(In millions, except per share amounts)                                                 |                                                                                                       | 2003                                                                                         |       | 2002        
|                                                                                        |                                                                                                       |                                                                                              |       |             
|Numerator:                                                                              |                                                                                                       |                                                                                              |       |              |   |   |      |      
|Numerator for basic earnings per share  income
(loss) available to common shareholders |                                                                                                       | $                                                                                            | (32.8 | )            |   | $ | 49.4 |      
|Denominator:                                                                            |                                                                                                       |                                                                                              |       |              |   |   |      |      
|                                                                                        | Denominator for basic earnings per share 
weighted-average shares                                    |                                                                                              |       | 117.2        |   |   |      | 101.8 |    
|                                                                                        |                                                                                                       |                                                                                              |       |              |   |   |      |      
|                                                                                        | Effect of dilutive securities:                                                                        |                                                                                              |       |              |   |   |      |       |    
|                                                                                        |                                                                                                       | Stock options, performance shares, restricted
shares and employee stock purchase plan shares |       |              |  |   |      |       | 0.7 | 
|                                                                                        |                                                                                                       | Convertible preferred securities                                                             |       |              |  |   |      |       | 2.9 | 
|                                                                                        |                                                                                                       |                                                                                              |       |              |   |   |      |      
|                                                                                        | Dilutive potential common shares                                                                      |                                                                                              |       |             |   |   |      | 3.6   |    
|                                                                                        |                                                                                                       |                                                                                              |       |              |   |   |      |      
|                                                                                        | Denominator for diluted earnings per share 
adjusted weighted-average shares and assumed
conversions |                                                                                              |       | 117.2        |   |   |      | 105.4 |    
|                                                                                        |                                                                                                       |                                                                                              |       |              |   |   |      |      
|Earnings (loss) per share:                                                              |                                                                                                       |                                                                                              |       |              |   |   |      |      
|                                                                                        | Basic                                                                                                 |                                                                                              | $     | (0.28        | ) |   | $    | 0.48  |    
|                                                                                        |                                                                                                       |                                                                                              |       |              |   |   |      |      
|                                                                                        | Diluted                                                                                               |                                                                                              | $     | (0.28        | ) |   | $    | 0.47  |    
|                                                                                        |                                                                                                       |                                                                                              |       |              |   |   |      |      

8



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##### 



Note F: Comprehensive Income

Total comprehensive income consists of the following:

|                             |                                                  |   |                       |      |      |   |      |      |  
|---------------------------- | ------------------------------------------------ | - | --------------------- | ---- | ---- | - | ---- | ---- | -
|                             |                                                  |   | Three Months         
|                             |                                                  |   | Ended                
|                             |                                                  |   | March 31,            
|                             |                                                  |   |                      
|                             |                                                  |   | 2003                  |      | 2002
|                             |                                                  |   |                       |      |     
|                             |                                                  |   | (Dollars in millions)
|Net Income                   |                                                  | $ | 29.4                  |      |      | $ | 14.3 |     
|Other Comprehensive Income  |                                                  |   |                       |      |      |   |      |     
|                             | Unrealized translation adjustments during period |   |                       | (2.2 | )    |   |      | (0.8 | )
|                             | Gain (loss) on cash flow hedge                   |   |                       | (2.7 | )    |   |      | (0.2 | )
|                             |                                                  |   |                       |      |      |   |      |     
|Total Comprehensive Income   |                                                  | $ | 24.5                  |      |      | $ | 13.3 |     
|                             |                                                  |   |                       |      |      |   |      |     

Accumulated other comprehensive income consists of the following (dollars
in millions):

|                                              |  |           |        |              |  |   |        |  
|--------------------------------------------- |  | --------- | ------ | ------------ |  | - | ------ | -
|                                              |  | March 31, |        | December 31,
|                                              |  | 2003      |        | 2002        
|                                              |  |           |        |             
|Cumulative unrealized translation adjustments |  | $         | (10.2  | )            |  | $ | (8.0   | )
|Minimum pension liability adjustment          |  |           | (380.5 | )            |  |   | (380.5 | )
|Accumulated gain on cash flow hedge           |  |           | 16.7   |              |  |   | 19.4   |  
|                                              |  |           |        |              |  |   |        |  
|                                              |  | $         | (374.0 | )            |  | $ | (369.1 | )
|                                              |  |           |        |              |  |   |        |  

The minimum pension liability amounts above are net of deferred taxes of
$204.9 million. The accumulated gain on cash flow hedges above is net of
deferred taxes of $8.2 million and $9.6 million at March 31, 2003 and December
31, 2002, respectively.

Note G: Restructuring and Consolidation Costs

For the three months ended March 31, 2003, the Company recorded
restructuring and consolidation charges totaling $9.1 million. The charges
were recorded across the Companys segments as follows:

|                   |  |                       |     | 
|------------------ |  | --------------------- | --- | 
|                   |  | Three Months Ended   
|                   |  | March 31, 2003       
|                   |  |                      
|                   |  | (Dollars in millions)
|Airframe Systems   |  | $                     | 3.7 | 
|Engine Systems     |  |                       | 4.9 | 
|Electronic Systems |  |                       | 0.5 | 
|                   |  |                       |     | 
|                   |  | $                     | 9.1 | 
|                   |  |                       |     | 

Restructuring and consolidation reserves at December 31, 2002 and March
31, 2003, as well as activity during the three months ended March 31, 2003,
consisted of:

|                        |  |                       |      |           |  |          |     |         |  |      |       |             |  |           |      |         |  |   |      | 
|----------------------- |  | --------------------- | ---- | --------- |  | -------- | --- | ------- |  | ---- | ----- | ----------- |  | --------- | ---- | ------- |  | - | ---- | 
|                        |  | (Dollars in millions)
|                        |  | Balance               |      |           |  |          |     |         |  |      |       |             |  |           |      | Balance
|                        |  | December 31,          |      |           |  |          |     |         |  |      |       | Acquisition |  | March 31,
|                        |  | 2002                  |      | Provision |  | Activity |     | Related |  | 2003
|                        |  |                       |      |           |  |          |     |         |  |     
|Personnel-related costs |  | $                     | 17.6 |           |  | $        | 2.6 |         |  | $    | (8.2  | )           |  | $         | 13.0 |         |  | $ | 25.0 | 
|Consolidation           |  |                       | 5.7  |           |  |          | 6.5 |         |  |      | (6.1  | )           |  |           | 5.3  |         |  |   | 11.4 | 
|                        |  |                       |      |           |  |          |     |         |  |      |       |             |  |           |      |         |  |   |      | 
|                        |  | $                     | 23.3 |           |  | $        | 9.1 |         |  | $    | (14.3 | )           |  | $         | 18.3 |         |  | $ | 36.4 | 
|                        |  |                       |      |           |  |          |     |         |  |      |       |             |  |           |      |         |  |   |      | 

The following is a description of key components of the $9.1 million
provision for restructuring and consolidation costs in the first three months
of 2003:

Airframe Systems:The segment recorded $3.7 million in restructuring and
consolidation costs, consisting of $0.1 million in personnel-related costs and
$3.6 million in consolidation costs.

9



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##### 



The personnel-related charge was for employee severance. The
consolidation costs were comprised of $2.6 million in non-cash asset impairment
charges and $1.8 million for environmental remediation for a surplus building,
offset by a reserve reversal of $0.8 million due to a revision of estimated
consolidation costs.

Engine Systems:The segment recorded $4.9 million in restructuring and
consolidation costs, consisting of $2.2 million in personnel-related costs and
$2.7 million in consolidation costs.

The personnel-related charges are for
employee severance and benefits. Consolidation costs include $1.3 million in
non-cash asset impairment charges and facility closure costs of $1.4 million
for machinery and equipment relocation and other facility closure costs.

Electronic Systems:The segment recorded $0.5 million in restructuring
and consolidation costs, consisting of $0.3 million in personnel related costs
and $0.2 million in consolidation costs.

The personnel related charges are for employee severance and benefits.
Consolidation costs included $0.1 million in non-cash accelerated depreciation
and $0.1 million in equipment relocation and other facility closure costs.

During the three months ended March 31, 2003, over 400 employees were
terminated as part of the restructuring activities described above. As of
March 31, 2003, the Company expects to further reduce employment levels by more
than 1,700 people in 2003 and 2004.

Restructuring and Consolidation Costs  Activity

The $14.3 million decrease in reserves consisted of $10.3 million in cash
payments and $4.0 million in asset impairments.

Restructuring and Consolidation Costs  Acquisition Related

The $18.3 million increase in restructuring reserves in the acquisition
related column relates to reserves that the Company recorded in the opening
balance sheet for the Aeronautical Systems acquisition.

Note H: Asset Impairments

During the first quarter of 2003, the Company recorded a non-cash $79.9
million pre-tax asset impairment charge for the Companys Super 27 re-engining
program, reflecting a revaluation of the assets in light of current market
conditions

In March 2003, the Company repossessed four Super 27 aircraft from a
receivable obligor who was in financial difficulty and also received a revised
cash flow forecast indicating a significant decline in the financial strength
of another receivable obligor. In addition, the recent further deterioration in
the commercial airline market due to the conflict in Iraq and SARS has made
available more aircraft that compete with or are newer than the Super 27
aircraft. Because of these events, the Company believes that its ability to
recover the recorded values of the Companys inventory and notes receivable has
been significantly affected. Based on an independent appraisal and the
Companys assessment of current market conditions, the Company wrote down the
carrying value of its inventory to equal the estimated market value of $12.2
million. The Company also wrote-off $0.4 million of related trade receivables
and $46.1 million of notes receivable. The Companys remaining notes
receivable of $8.5 million represents the present value of expected future cash
flows related to the receivables. The value assigned to the four
repossessed Super 27 aircraft of $6.4 million represents the Companys
assessment of the current market value of inventory based upon the appraisal.

The Company also recorded a non-cash $11.7 million pre-tax asset
impairment charge related to its equity investment in Cordiem LLC and a
non-cash $6.2 million pre-tax impairment charge on rotable landing gear assets.

10



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##### 



Note I: Goodwill and Other Intangible Assets

The changes in the carrying amount of goodwill for the three months ended
March 31, 2003, by segment are as follows:

|                   |  |                       |         |              |  |          |      |             |  |          |       |           |  |   |     |  |  |   |         | 
|------------------ |  | --------------------- | ------- | ------------ |  | -------- | ---- | ----------- |  | -------- | ----- | --------- |  | - | --- |  |  | - | ------- | 
|                   |  |                       |         |              |  | Business |      |             |  |          |       |           |  |   |     |  |  |  
|                   |  | Balance               |         | Combinations |  |          |      |             |  | Foreign  |       | Balance  
|                   |  | December 31,          |         | Completed    |  |          |      |             |  | Currency |       | March 31,
|                   |  | 2002                  |         | or Finalized |  | Other    |      | Translation |  | 2003    
|                   |  |                       |         |              |  |          |      |             |  |         
|                   |  | (Dollars in millions)
|Airframe Systems   |  | $                     | 185.1   |              |  | $        | 3.4  |             |  | $        | -.-   |           |  | $ | 1.4 |  |  | $ | 189.9   | 
|Engine Systems     |  |                       | 406.6   |              |  |          | 5.5  |             |  |          | -.-   |           |  |   | 3.0 |  |  |   | 415.1   | 
|Electronic Systems |  |                       | 602.5   |              |  |          | 31.5 |             |  |          | (46.3 | )         |  |   | 1.2 |  |  |   | 588.9   | 
|                   |  |                       |         |              |  |          |      |             |  |          |       |           |  |   |     |  |  |   |         | 
|                   |  | $                     | 1,194.2 |              |  | $        | 40.4 |             |  | $        | (46.3 | )         |  | $ | 5.6 |  |  | $ | 1,193.9 | 
|                   |  |                       |         |              |  |          |      |             |  |          |       |           |  |   |     |  |  |   |         | 

Of the $40.4 million increase to goodwill as a result of business
combinations completed or finalized, $39.4 million related to revisions to the
purchase price allocation for the Aeronautical Systems acquisition and $1.0
million related to the adjustment of the purchase price of an acquisition due
to an earn-out agreement.

The $46.3 million reduction in goodwill in Electronic Systems represents
the goodwill allocated to the Avionics business, which was sold during the
first quarter of 2003.

The allocation of the purchase price for the Aeronautical Systems
acquisition has been performed based on the assignment of fair values to assets
acquired and liabilities assumed. Certain aspects of the purchase price
allocation are based on preliminary estimates and are subject to change. Items
that may affect the ultimate purchase price allocation include revisions to
asset appraisals, finalization of restructuring plans that qualify for accrual
in the opening balance sheet and other information that provides a better
estimate of the fair value of assets acquired and liabilities assumed.

Identifiable intangible assets as of March 31, 2003 are comprised of:

|                               |                                  |   |                       |       |              |   |      |      | 
|------------------------------ | -------------------------------- | - | --------------------- | ----- | ------------ | - | ---- | ---- | 
|                               |                                  |   | GROSS                 |       | ACCUMULATED 
|                               |                                  |   | AMOUNT                |       | AMORTIZATION
|                               |                                  |   |                       |       |             
|                               |                                  |   | (Dollars in millions)
|Amortizable intangible assets: |                                  |   |                       |       |              |   |      |     
|                               | Patents, trademarks and licenses |   | $                     | 159.4 |              |   | $    | 41.6 | 
|                               | Customer relationships           |   |                       | 254.8 |              |   |      | 7.0  | 
|                               | Technology                       |   |                       | 83.9  |              |   |      | 0.5  | 
|                               | Non-compete agreements           |   |                       | 6.6   |              |   |      | 4.6  | 
|                               | Sourcing contracts               |   |                       | 5.5   |              |   |      | 0.9  | 
|                               |                                  |   |                       |       |              |   |      |     
|                               |                                  | $ | 510.2                 |       |              | $ | 54.6 |     
|                               |                                  |   |                       |       |              |   |      |      | 

Amortization of intangible assets for the three months ended March 31,
2003 was $4.6 million. Amortization expense of these intangible assets for 2003
to 2007 is estimated to be approximately $20 million per year. There were no
indefinite lived identifiable intangible assets as of March 31, 2003.

Note J: Discontinued Operations

The disposition of the former Engineered Industrial Products segment, the
Avionics business and the Passenger Restraints Systems business each
represented the disposal of a component of an entity under FASB Statement No.
144, Accounting for the Impairment or Disposal of Long-Lived Assets.
Accordingly, the revenues, costs and expenses, assets and liabilities, and cash
flows of Engineered Industrial Products, Avionics and Passenger Restraints
Systems have been segregated in the accompanying unaudited condensed
consolidated statement of income, unaudited condensed consolidated balance
sheet and unaudited condensed consolidated statement of cash flows.

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The following summarizes the results of discontinued operations:

|                                                                              |                                           |      |              |      |   |   |       |       | 
|----------------------------------------------------------------------------- | ----------------------------------------- | ---- | ------------ | ---- | - | - | ----- | ----- | 
|                                                                              |                                           |      | Three Months
|                                                                              |                                           |      | Ended       
|                                                                              |                                           |      | March 31,   
|                                                                              |                                           |      |             
|(Dollars in millions)                                                         |                                           | 2003 |              | 2002
|                                                                              |                                           |      |              |      |  
|Sales:                                                                        |                                           |      |              |      |   |   |       |      
|                                                                              | Avionics and Passenger Restraints Systems |      | $            | 24.3 |   |   | $     | 25.4  | 
|                                                                              | Engineered Industrial Products            |      |              |     |   |   |       | 166.9 | 
|                                                                              |                                           |      |              |      |   |   |       |       | 
|                                                                              |                                           | $    | 24.3         |      |   | $ | 192.3 |      
|                                                                              |                                           |      |              |      |   |   |       |       | 
|Pretax income (loss) from operations:                                         |                                           |      |              |      |   |   |       |      
|                                                                              | Avionics and Passenger Restraints Systems |      | $            | (0.9 | ) |   | $     | 0.2   | 
|                                                                              | Engineered Industrial Products            |      |              |     |   |   |       | 4.7   | 
|                                                                              |                                           |      |              |      |   |   |       |       | 
|                                                                              |                                           |      | (0.9         | )    |   |   | 4.9   |      
|Income tax (expense) benefit                                                  |                                           |      | 0.3          |      |   |   | (1.9  | )    
|Distributions on Trust preferred securities                                   |                                           |      |             |      |   |   | (2.0  | )    
|Gain on sale of Avionics (net of income
tax expense of $38.8 million in 2003) |                                           |      | 63.3         |      |   |   |      |      
|                                                                              |                                           |      |              |      |   |   |       |       | 
|Income from discontinued operations                                           |                                           | $    | 62.7         |      |   | $ | 1.0   |      
|                                                                              |                                           |      |              |      |   |   |       |       | 

Avionics and Passenger Restraints Systems

On March 28, 2003, the Company completed the sale of its Avionics business
to L-3 Communications Corporation for $188 million. Accordingly, this business
has been reported as a discontinued operation beginning with the first quarter
of 2003.

During the first quarter of 2003, the Company ceased all operations of its
Passenger Restraints Systems business. Accordingly, this business has been
reported as a discontinued operation beginning with the first quarter of 2003.

Engineered Industrial Products

On May 31, 2002, the Company completed the tax-free spin-off of its former
Engineered Industrial Products (EIP) segment. The spin-off was effected through
a tax-free distribution to the Companys shareholders of all of the capital
stock of EnPro Industries, Inc., then a wholly-owned subsidiary of Goodrich. In
the spin-off, the Companys shareholders received one share of EnPro common
stock for every five shares of the Companys common stock owned on the record
date, May 28, 2002.

At the time of the spin-off, EnPros only material asset was all of the
capital stock and certain indebtedness of Coltec Industries Inc (Coltec).
Coltec and its subsidiaries owned substantially all of the assets and
liabilities of the EIP segment, including the associated asbestos liabilities
and related insurance.

Prior to the spin-off, Coltec also owned and operated an aerospace
business. Before completing the spin-off, Coltecs aerospace business assumed
all intercompany balances outstanding between Coltec and the Company and Coltec
then transferred to the Company by way of a dividend all of the assets,
liabilities and operations of Coltecs aerospace business, including these
assumed balances. Following this transfer and prior to the spin-off, all of the
capital stock of Coltec was contributed to EnPro, with the result that at the
time of the spin-off Coltec was a wholly-owned subsidiary of EnPro.

In connection with the spin-off, the Company and EnPro entered into a
distribution agreement, a tax matters agreement, a transition services
agreement, an employee matters agreement and an indemnification agreement,
which govern the relationship between the Company and EnPro after the spin-off
and provide for the allocation of employee benefits, tax and other liabilities
and obligations attributable to periods prior to the spin-off.

The spin-off was recorded as a dividend and resulted in a reduction in
shareholders equity of $409.1 million representing the recorded value of net
assets of the business distributed, including cash of $47.0 million. The
distribution agreement provided for certain post-distribution adjustments
relating to the amount of cash to be included in the net assets distributed. At
March 31, 2003, the final adjustment had been calculated and is subject to a

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dispute resolution process. The Company expects that the final resolution of
this process on its unaudited condensed consolidated financial statements will
be immaterial.

The
$150 million of outstanding Coltec Capital Trust 51⁄4 percent
convertible trust preferred securities (TIDES) that were reflected in
liabilities of discontinued operations prior to the spin-off remained
outstanding as part of the EnPro capital structure following the spin-off. The
TIDES are convertible into shares of both Goodrich and EnPro common stock until
April 15, 2028. The Company has guaranteed amounts owed by Coltec Capital Trust
with respect to the TIDES and has guaranteed Coltecs performance of its
obligations with respect to the TIDES and the underlying Coltec convertible
subordinated debentures. EnPro, Coltec and Coltec Capital Trust have agreed to
indemnify the Company for any costs and liabilities arising under or related
to the TIDES after the spin-off.

Note K: Cumulative Effect of Change in Accounting

The cumulative effect of an accounting change, as presented after taxes,
for the first quarter of 2003 of a loss of $0.5 million represents the adoption
of Statement of Financial Standards No. 143, Accounting for Asset Retirement
Obligations. The Company established a liability for contractual obligations
for the retirement of long-lived assets. The cumulative effect of an
accounting change, as presented after taxes, for the first quarter of 2002 of a
loss of $36.1 million represents the adoption of Statement of Financial
Accounting Standards No. 142 Goodwill and Other Intangible Assets. Based
upon the impairment test of goodwill and indefinite lived intangible assets,
the Company determined that goodwill relating to the aviation technical
services reporting unit, reported in the Airframe Systems segment, had been
impaired. As a result, the Company recognized an impairment charge,
representing total goodwill of the aviation technical services reporting unit.
The goodwill was non-deductible for tax purposes.

Note L: Financing Arrangements

Credit Facilities

In October 2002, the Company borrowed $1.5 billion under a committed
syndicated credit agreement expiring in July 2003, to finance the acquisition
of Aeronautical Systems from TRW Inc. During 2002, the Company repaid $1.3
billion with the proceeds from the issuance of common stock and long-term debt,
operating cash flow and the proceeds from the sale of certain non-operating
assets. In March 2003, the Company repaid the balance of $200 million with the
proceeds from the sale of the Noveon International, Inc. payment-in-kind notes
and a portion of the proceeds from the sale of the Companys Avionics business.

As of March 31, 2003, the Company had $750 million in committed global
syndicated revolving credit agreements with a group of international banks.
These credit facilities consist of a $425 million three-year agreement expiring
in December 2004 and a $325 million 364-day agreement expiring in September
2003. At March 31, 2003, there were no borrowings under these facilities. At
December 31, 2002, $155 million was borrowed under these committed revolving
credit facilities. During the first quarter of 2003, all amounts borrowed were
repaid with a portion of the proceeds from the sale of the Companys Avionics
business, cash flow from operations and proceeds from the sale of certain
non-operating assets.

The Company also maintains $100 million of uncommitted domestic money
market facilities and $6.8 million of uncommitted foreign working capital
facilities with various banks to meet short-term borrowing requirements. As of
March 31, 2003, there were no borrowings under these facilities. At December
31, 2002, $23.5 million was borrowed under these facilities. These uncommitted
credit facilities are provided by a small number of commercial banks that also
provide the Company with committed credit through the syndicated revolving
credit facilities and with various cash management, trust and other services.
As a result of these established relationships, the Company believes that its
uncommitted facilities are a highly reliable and cost-effective source of
liquidity.

Continued borrowing under the Companys credit facilities is conditioned
upon compliance with financial and other covenants set forth in the related
agreements. The Company is currently in compliance with all such covenants. The
Companys credit facilities do not contain any credit rating downgrade triggers
that would accelerate the maturity of the Companys indebtedness. However, a
ratings downgrade would result in an increase in the interest rate and fees
payable under the Companys syndicated revolving credit facilities. Such a
downgrade also

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could adversely affect the Companys ability to renew existing, or obtain
access to new, credit facilities in the future and could increase the cost of
such new facilities.

Note M: Off-Balance Sheet Arrangements

Lease Agreements

The Company finances its use of certain equipment, including corporate
aircraft, under committed lease arrangements provided by financial
institutions. Certain of these arrangements allow the Company to claim a
deduction for the tax depreciation on the assets, rather than the lessor, and
allowed the Company to lease up to a maximum of $95 million at March 31, 2003.
At March 31, 2003, $56.9 million of future minimum lease payments were
outstanding under these arrangements. In addition, the Company also has various
other operating lease agreements in which the lessor claims the deduction for
tax depreciation whose future minimum lease payments approximated $151.0
million at March 31, 2003.

Sale of Receivables

At March 31, 2003, the Company had in place a trade receivables
securitization program pursuant to which it could sell receivables up to a
maximum of $140 million. Accounts receivable sold under this program were
$95.2 million at March 31, 2003 as compared to $97.3 million at December 31,
2002.

Continued availability of the securitization program is conditioned upon
compliance with covenants, related primarily to operation of the
securitization, set forth in the related agreements. The Company is currently
in compliance with all such covenants. The securitization agreement includes a
credit rating downgrade trigger pursuant to which the agreement may be
terminated upon a rating downgrade to levels below BB- by Standard & Poors and
Ba3 by Moodys Investor Services. If such an event were to occur, the Company
expects that it would have sufficient capital resources through the Companys
existing revolving credit facilities to satisfy any termination requirements.

Note N: Derivatives and Hedging Activities

The Company has subsidiaries that conduct a substantial portion of their
business in Great Britain Pounds and Euros, but have significant sales
contracts that are denominated in U.S. dollars. In March 2002, the Company
entered into forward contracts that mature each month between
April 2002 and December 2003 to exchange U.S. dollars for Euros. In October
2002, the Company entered into forward contracts that mature on a
monthly basis from October 2002 to April 2007 to exchange U.S. dollars for
Euros and Great Britain Pounds.

The forward contracts described above are used to mitigate the potential
volatility to cash flow arising from changes in currency exchange rates. The
hedges are being accounted for as cash flow hedges. The derivatives are
recorded at fair value with the offset reflected in accumulated other
comprehensive income, net of deferred taxes. The fair value of the hedges at
March 31, 2003 was an asset of $25.0 million, of which $9.5 million is recorded
in Prepaid Expenses and Other Assets and $15.5 million is recorded in Other
Assets.

The $25.0 million gross gain (before deferred taxes of $8.2 million)
recorded in accumulated other comprehensive income will be reflected in income
as the individual contracts mature, and the hedged item impacts earnings. As of
March 31, 2003, the portion of the $25.0 million gain that would be
reclassified into earnings as an increase in sales in the next 12 months is a
gain of $9.5 million.

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Note O: Guarantees

The Company extends financial and product performance guarantees to third
parties. As of March 31, 2003 the following financial guarantees were
outstanding:

|                                                   |                                           |          |           |           |           |  |   |   | 
|-------------------------------------------------- | ----------------------------------------- | -------- | --------- | --------- | --------- |  | - | - | 
|                                                   |                                           |          | MAXIMUM   |           | CARRYING 
|                                                   |                                           |          | POTENTIAL |           | AMOUNT OF
|(Dollars in millions)                              |                                           | PAYMENT  |           | LIABILITY
|                                                   |                                           |          |           |          
|Environmental remediation indemnification (Note P) |                                           | No limit |           | $         | 28.7      | 
|Financial Guarantees:                              |                                           |          |           |           |           |  |   |  
|                                                   | TIDES (Note P)                            |          | $         | 150.0     |           |  | $ |  | 
|                                                   | Debt and lease payments (Note P)          |          | $         | 4.1       |           |  | $ |  | 
|                                                   | Residual values on leases (Note M)        |          | $         | 51.8      |           |  | $ |  | 
|                                                   | Executive loans to purchase Company stock |          | $         | 9.3       |           |  | $ |  | 

Prior to the adoption of FASB Interpretation No. 45, Guarantors
Accounting and Disclosure Requirements for Guarantees, Including Indirect
Guarantees of Indebtedness to Others (FIN 45), the Company accrued for costs
associated with guarantees when it was probable that a liability has been
incurred and the amount could be reasonably estimated. The most likely cost to
be incurred was accrued based on an evaluation of currently available facts,
and where no amount within a range of estimates was more likely, the minimum
was accrued. Guarantees extended subsequent to the adoption of FIN 45 will be
recorded at fair value.

The Company provides service and warranty policies on its products.
Liability under service and warranty policies is based upon a review of
historical warranty and service claim experience. Adjustments are made to
accruals as claim data and historical experience warrant. In addition, the
Company incurs discretionary costs to service its products in connection with
product performance issues.

The changes in the carrying amount of service and product warranties for
the quarter ended March 31, 2003, are as follows:

|                             |                                        |   |      |       |  
|---------------------------- | -------------------------------------- | - | ---- | ----- | -
|(Dollars in millions)        |                                        |   |      |      
|Balance at December 31, 2002 |                                        | $ | 67.9 |      
|                             | Service and product warranty provision |   |      | 11.9  |  
|                             | Payments                               |   |      | (10.4 | )
|                             |                                        |   |      |      
|Balance at March 31, 2003    |                                        | $ | 69.4 |      
|                             |                                        |   |      |      

Note P: Contingencies

General

There are pending or threatened against the Company or the Companys
subsidiaries various claims, lawsuits and administrative proceedings, all
arising from the ordinary course of business with respect to commercial,
product liability, asbestos and environmental matters, which seek remedies or
damages. The Company believes that any liability that may finally be determined
with respect to commercial and non-asbestos product liability claims should not
have a material effect on the Companys consolidated financial position or
results of operations. From time to time, the Company is also involved in legal
proceedings as a plaintiff involving contract, patent protection,
environmental, tax and other matters. Gain contingencies, if any, are
recognized when they are realized.

Environmental

The Company is subject to various domestic and international environmental
laws and regulations which may require that the Company investigate and
remediate the effects of the release or disposal of materials at sites
associated with past and present operations, including sites at which the
Company has been identified as a potentially responsible party under the
federal Superfund laws and comparable state laws. The Company is currently
involved in the investigation and remediation of a number of sites under these
laws.

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The measurement of environmental liabilities by the Company is based on
currently available facts, present laws and regulations and current technology.
Such estimates take into consideration the Companys prior experience in site
investigation and remediation, the data concerning cleanup costs available from
other companies and regulatory authorities and the professional judgment of the
Companys environmental specialists in consultation with outside environmental
specialists, when necessary. Estimates of the Companys liability are further
subject to uncertainties regarding the nature and extent of site contamination,
the range of remediation alternatives available, evolving remediation
standards, imprecise engineering evaluations and estimates of appropriate
cleanup technology, methodology and cost, the extent of corrective actions that
may be required and the number and financial condition of other potentially
responsible parties, as well as the extent of their responsibility for the
remediation.

Accordingly, as investigation and remediation of these sites proceed, it
is likely that adjustments in the Companys accruals will be necessary to
reflect new information. The amounts of any such adjustments could have a
material adverse effect on the Companys results of operations in a given
period, but the amounts, and the possible range of loss in excess of the
amounts accrued, are not reasonably estimable. Based on currently available
information, however, the Company does not believe that future environmental
costs in excess of those accrued with respect to sites with which the Company
has been identified as a potentially responsible party are likely to have a
material adverse effect on the Companys financial condition. There can be no
assurance, however, that additional future developments, administrative actions
or liabilities relating to environmental matters will not have a material
adverse effect on the Companys results of operations or cash flows in a given
period.

Environmental liabilities are recorded when the Companys liability is
probable and the costs are reasonably estimable, which generally is not later
than at completion of a feasibility study or when the Company has recommended a
remedy or has committed to an appropriate plan of action. The liabilities are
reviewed periodically and, as investigations and remediation proceed,
adjustments are made as necessary. Liabilities for losses from environmental
remediation obligations do not consider the effects of inflation, and
anticipated expenditures are not discounted to their present value. The
liabilities are not reduced by possible recoveries from insurance carriers or
other third parties, but do reflect anticipated allocations among potentially
responsible parties at federal Superfund sites or similar state-managed sites
and an assessment of the likelihood that such parties will fulfill their
obligations at such sites.

At March 31, 2003, the Companys liabilities for environmental remediation
obligations totaled $92.0 million, of which $16.4 million was included in
current liabilities as Accrued Liabilities. Of the $92.0 million, $23.6 million
was associated with ongoing operations and $68.4 million was associated with
businesses previously disposed of or discontinued.

The timing of expenditures depends on a number of factors that vary by
site, including the nature and extent of contamination, the number of
potentially responsible parties, the timing of regulatory approvals, the
complexity of the investigation and remediation, and the standards for
remediation. The Company expects that it will expend present accruals over many
years, and will complete remediation of all sites with which the Company has
been identified in up to 30 years. This period includes operation and
monitoring costs that are generally incurred over 15 to 25 years.

Tolo Litigation

In May 2000, the Company and its subsidiary Rohr, Inc. were served with a
complaint in a lawsuit filed in the Superior Court of Orange County,
California, by former shareholders and certain former employees of Tolo, Inc.
Tolo is a subsidiary of Rohr that was acquired in 1997 pursuant to a stock
purchase agreement. The former shareholders alleged that the Company and Rohr
breached the stock purchase agreement by failing to pay $2.4 million under the
terms of the agreement. In September 2001, a jury found that the Company was
liable to the shareholders for the $2.4 million retained by Rohr under the
stock purchase agreement and the Company was also assessed punitive damages of $48
million. The court subsequently reduced the punitive damage award to $24
million. The Company and Rohr appealed the judgment.

In December 2002, the appellate court issued a ruling directing the trial
court to enter judgment in favor of the Company and Rohr on both the fraud
claim and the breach of contract claim. The plaintiffs motion for rehearing

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of that ruling was subsequently denied. On April 16, 2003, the plaintiffs
petition for review with the California Supreme Court was denied.

Asbestos

The Company and certain of its subsidiaries have been named as defendants
in various actions by plaintiffs alleging injury or death as a result of
exposure to asbestos fibers in products, or which may have been present in the
Companys facilities. A number of these cases involve maritime claims, which
have been and are expected to continue to be administratively dismissed by the
court. These actions primarily relate to previously owned businesses. The
Company believes that it has substantial insurance coverage available to it
related to any remaining claims. The Company believes that these pending and
reasonably anticipated future actions are not likely to have a material adverse
effect on the Companys financial condition or results of operations.

Liabilities of Divested Businesses

Asbestos

At the time of the EIP spin-off, two subsidiaries of Coltec were
defendants in a significant number of personal injury claims relating to
alleged asbestos-containing products sold by those subsidiaries. It is possible
that asbestos-related claims might be asserted against the Company on the
theory that the Company has some responsibility for the asbestos-related
liabilities of EnPro, Coltec or its subsidiaries, even though the activities
that led to those claims occurred prior to the Companys ownership of any of
those subsidiaries. Also, it is possible that a claim might be asserted against
the Company that Coltecs dividend of its aerospace business to the Company
prior to the spin-off was made at a time when Coltec was insolvent or caused
Coltec to become insolvent. Such a claim could seek recovery from the Company
on behalf of Coltec of the fair market value of the dividend.

A limited number of asbestos-related claims have been asserted against the
Company as successor to Coltec or one of its subsidiaries. The Company believes
that it has substantial legal
defenses against these claims, as well as against any other claims
that may be asserted against it on the theories described above. In addition, the agreement between EnPro and
the Company that was used to effectuate the spin-off provides the Company with
an indemnification from EnPro covering, among other things, these liabilities.
The success of any such asbestos-related claims would likely require, as a
practical matter, that Coltecs subsidiaries were unable to satisfy their
asbestos-related liabilities and that Coltec was found to be responsible for
these liabilities and was unable to meet its financial obligations. The
Company believes any such claims would be without merit and that Coltec was
solvent both before and after the dividend of its aerospace business to the
Company. If the Company is ultimately found to be responsible for the asbestos-related
liabilities of Coltecs subsidiaries, the Company believes it would not have a
material adverse effect on the Companys financial condition, but could have a
material adverse effect on the Companys results of operations and cash flows
in a particular period. However, because of the uncertainty as to the number,
timing and payments related to future asbestos-related claims, there can be no
assurance that any such claims will not have a material adverse effect on the
Companys financial condition, results of operations and cash flows. If a claim
related to the dividend of Coltecs aerospace business were successful, it
could have a material adverse impact on the Companys financial condition,
results of operations and cash flows.

Other

In connection with the divestiture of the
Companys tire, vinyl and other businesses, the Company has received contractual
rights of indemnification from third parties for environmental and other claims
arising out of the divested businesses. Failure of these third parties to
honor their indemnification obligations could have a material adverse effect on
the Companys consolidated financial condition, results of operations and cash
flow.

Guarantees

The Company has guaranteed amounts owed by Coltec Capital Trust with
respect to the $150 million of outstanding TIDES and has guaranteed Coltecs
performance of its obligations with respect to the TIDES and the underlying
Coltec convertible subordinated debentures. Following the spin-off of the EIP
segment, the TIDES remained outstanding as an obligation of Coltec Capital
Trust and the Companys guarantee with respect to the TIDES remains an
obligation of the Company. EnPro, Coltec and Coltec Capital Trust have agreed
to indemnify the Company from any costs and liabilities arising under or
related to the TIDES after the spin-off.

17



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In
addition to the Companys guarantee of the TIDES, it has an outstanding
contingent liability for guarantees of debt and lease payments of
$4.1 million, letters of credit of $36.9 million, residual value of leases
of $51.8 million and executive loans to purchase the Companys
stock of $9.3 million at March 31, 2003.

Commercial Airline Customers

The downturn in the commercial air transport market, the
terrorist attacks on September 11, 2001, the military conflict in Iraq and the
outbreak of Severe Acute Respiratory Syndrome (SARS) have adversely affected
the financial condition of many of the Companys commercial airline customers.
Many of these customers have requested extended payment terms for future
shipments and/or reduced pricing. The Company reviews and evaluates these
requests on a case-by-case basis. The Company performs ongoing credit
evaluations on the financial condition of all of the Companys customers and
maintain reserves for uncollectible accounts receivable based upon expected
collectibility. Although the Company believes its reserves are adequate, the
Company is not able to predict the future financial stability of these
customers. Any material change in the financial status of any one or group of
customers could have a material adverse effect on the Companys financial
condition, results of operations or cash flows. The extent to which extended
payment terms are granted to customers may negatively affect future cash flow.

B717-200 Program

The Companys aerostructures business also has a contract with Boeing on
the B717-200 program that is subject to certain risks and uncertainties.
Recovery of preproduction inventory balances of $30.4 million as of March 31,
2003 is subject to Boeings future production rate and delivery schedule as
well as the Companys future cost structure and learning curve assumptions.

Tax Litigation

In 2000, the Company made a $113.7 million payment to the Internal Revenue
Service for an income tax assessment and the related accrued interest. The
Company is currently pursuing its judicial remedies for a refund of this
payment. A reasonable estimation of the Companys potential refund cannot be
made at this time; accordingly, no receivable has been recorded.

Also in 2000, the Internal Revenue Service issued a statutory notice of
deficiency asserting that Rohr, Inc., a subsidiary of the Company, was liable
for $85.3 million of additional income taxes. In 2001, Rohr filed a petition
in the U.S. Tax Court opposing the proposed assessment.

Note Q: New Accounting Standards

During April 2003, the Financial Accounting Standard Board issued
Statement No. 149 Amendment of Statement 133 on Derivative Instruments and
Hedging Activities. The Statement amends and clarifies accounting for
derivatives, including certain derivatives instruments embedded in other
contracts, and for hedging activities under Statement No. 133. Statement 149
is effective for contracts entered into or modified after June 30, 2003, except
for certain circumstances, and for hedging relationships designated after June
30, 2003. The guidance should be applied prospectively. The Company is
currently assessing the effect of the Statement but does not expect Statement
No. 149 to have a material effect on the Companys consolidated financial
condition or results of operations.

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Item 2. Managements Discussion and Analysis of Financial Position and Results
of Operations

YOU
SHOULD READ THE FOLLOWING DISCUSSION IN CONJUNCTION WITH THE UNAUDITED
CONDENSED CONSOLIDATED FINANCIAL STATEMENTS OF GOODRICH CORPORATION INCLUDED
ELSEWHERE IN THIS DOCUMENT.

THIS MANAGEMENTS DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND
RESULTS OF OPERATIONS CONTAINS FORWARD-LOOKING STATEMENTS. SEE FORWARD-LOOKING
INFORMATION IS SUBJECT TO RISK AND UNCERTAINTY FOR A DISCUSSION OF THE UNCERTAINTIES, RISKS AND ASSUMPTIONS
ASSOCIATED WITH THESE STATEMENTS.

OUR FORMER ENGINEERED INDUSTRIAL PRODUCTS SEGMENT, AVIONICS BUSINESS AND
PASSENGER RESTRAINT SYSTEMS BUSINESS HAVE BEEN ACCOUNTED FOR AS DISCONTINUED
OPERATIONS. UNLESS OTHERWISE NOTED HEREIN, DISCLOSURES PERTAIN ONLY TO OUR
CONTINUING OPERATIONS.

Overview

We are one of the largest worldwide suppliers of aerospace components,
systems and services to the commercial, regional, business and general aviation
markets. We are also a leading supplier of aircraft and satellite systems
products to the global military and space markets. Our business is conducted on
a global basis with manufacturing, service and sales undertaken in various
locations throughout the world. Our products and services are principally sold
to customers in North America and Europe.

Business Segments

Effective January 1, 2003, we reorganized into three business segments:
Airframe Systems, Engine Systems and Electronic Systems. The reorganization
was designed to enhance communication and maximize synergies in a streamlined
organization. Segment financial results for prior periods have been restated
to reflect the new organization.

Airframe Systems:Airframe Systems provides systems and components
pertaining to aircraft taxi, take-off, landing and stopping. Several business
units within the segment are linked by their ability to contribute to the
integration, design, manufacture and service of entire aircraft undercarriage
systems, including landing gear, wheels and brakes and certain brake controls.
Airframe Systems also includes the aviation technical services division which
performs comprehensive total aircraft maintenance, repair, overhaul and
modification services for many commercial airlines, independent operators,
aircraft leasing companies and airfreight carriers. The segment also includes
the actuation systems, flight controls and customer services business units
that were acquired as part of Aeronautical Systems. Actuation systems provides
systems that control the movement of steering systems for missiles and
electro-mechanical systems that are characterized by high power, low weight,
low maintenance, resistance to extreme temperatures and vibrations and high
reliability. Flight controls provides actuators for primary flight control
systems that operate elevators, ailerons and rudders, and secondary flight
controls systems such as flaps and slats. The customer service business
supports aftermarket products for the Aeronautical Systems businesses.

Engine Systems:Engine Systems includes the aerostructures business unit,
a leading supplier of nacelles, pylons, thrust reversers and related aircraft
engine housing components. The segment also produces engine and fuel
controls, pumps, fuel delivery systems, and structural and rotating components
such as discs, blisks, shafts and airfoils for both aerospace and industrial
gas turbine applications. The segment includes the cargo systems and engine
controls business units, which were acquired as a part of Aeronautical Systems.
Cargo systems produces fully-integrated main deck and lower lobe cargo systems
for wide body aircraft. Engine systems provides engine control systems and
components for jet engines used on commercial and military aircraft, including
fuel metering controls, fuel pumping systems, electronic control software and
hardware, variable geometry actuation controls, afterburner fuel pump and
metering unit nozzles, and engine health monitoring systems.

19



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Electronic Systems:Electronic Systems produces a wide array of products
that provide flight performance measurements, flight management, and control
and safety data. Included are a variety of sensors systems that measure and
manage aircraft fuel and monitor oil debris, engine, transmission and
structural health, and aircraft motion control systems. The segments products
also include warning and detection systems, ice detection systems, test
equipment, aircraft lighting systems, landing gear cables and harnesses,
satellite control, data management and payload systems, launch and missile
telemetry systems, airborne surveillance and reconnaissance systems, laser
warning systems, aircraft evacuation systems, de-icing systems, ejection seats
and crew and attendant seating. The power systems business unit, which was
acquired as part of Aeronautical Systems, provides systems that produce and
control electrical power for commercial and military aircraft, including
electric generators for both main and back-up electrical power, electric
starters and electric starter generating systems and power management and
distribution systems. The hoists and winches business unit, also acquired as
part of Aeronautical Systems, provides airborne hoists and winches used on both
helicopters and fixed wing aircraft.

Acquisition and Divestitures

Acquisition of TRWs Aeronautical Systems Businesses

On October 1, 2002, we completed our acquisition of TRW Inc.s
Aeronautical Systems businesses for approximately $1.5 billion in cash. The
acquired businesses design and manufacture commercial and military aerospace
systems and equipment, including engine controls, flight controls, power
systems, cargo systems, hoists and winches, and actuation systems. At the time
of acquisition, these businesses employed approximately 6,200 employees in 22
facilities in nine countries, including manufacturing and service operations in
the United Kingdom, France, Germany, Canada, the United States and several
Asia/Pacific countries.

We financed the acquisition through a $1.5 billion, 364-day credit
facility provided by some of our existing lenders. In the fourth quarter of
2002, we repaid $1.3 billion of the credit facility using
proceeds from an offering of our common stock for net proceeds of $216.2 million, the
issuance of $800 million of 5 and 10-year notes for net proceeds of $793.1
million, cash flow from operations and the sale of non-operating assets.
During the first quarter 2003, we repaid the balance of the facility with funds
generated from the sale of the Noveon International, Inc. payment-in-kind notes
and a portion of the proceeds from the sale of our Avionics business.

As a result of integration activities with respect to the TRW Aeronautical
Systems businesses, we expect to realize annual cost savings of approximately
$30 to $40 million, net of anticipated incremental costs, by the beginning of
2005. These cost savings are expected to result from consolidation of duplicate
facilities, reduction of personnel and expenditures, expansion of procurement
initiatives and the use of best practices across the combined businesses.

Sale of the Avionics Business

On March 28, 2003, we completed the sale of our Avionics business to L-3
Communications Corporation for $188 million or $181 million net of fees and
expenses. The gain on the sale was $63.3 million after tax, which was
reported as income from discontinued operations. The Avionics business marketed
a variety of state-ofthe art avionics instruments and systems primarily for
general aviation, business jet and military aircraft. Prior periods have been
restated to reflect the Avionics business as a discontinued operation.

Spin-Off of Engineered Industrial Products

On May 31, 2002, we completed the tax-free spin-off of our former
Engineered Industrial Products (EIP) segment. The spin-off was effected through
a tax-free distribution to our shareholders of all of the capital stock of
EnPro Industries, Inc., then a wholly-owned subsidiary of Goodrich. In the
spin-off, our shareholders received one share of EnPro common stock for every
five shares of our common stock owned on the record date, May 28, 2002.

At the time of the spin-off, EnPros only material asset was all of the
capital stock and certain indebtedness of Coltec Industries Inc (Coltec).
Coltec and its subsidiaries owned substantially all of the assets and
liabilities of the EIP segment, including the associated asbestos liabilities
and related insurance.

20



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Prior to the spin-off, Coltec also owned and operated an aerospace
business. Before completing the spin-off, Coltecs aerospace business assumed
all intercompany balances outstanding between Coltec and us and Coltec then
transferred to us by way of a dividend all of the assets, liabilities and
operations of Coltecs aerospace business, including these assumed balances.
Following this transfer and prior to the spin-off, all of the capital stock of
Coltec was contributed to EnPro, with the result that at the time of the
spin-off Coltec was a wholly-owned subsidiary of EnPro.

In connection with the spin-off, we and EnPro entered into a distribution
agreement, a tax matters agreement, a transition services agreement, an
employee matters agreement and an indemnification agreement, which govern the
relationship between us and EnPro after the spin-off and provide for the
allocation of employee benefits, tax and other liabilities and obligations
attributable to periods prior to the spin-off.

The spin-off was recorded as a dividend and resulted in a reduction in
shareholders equity of $409.1 million representing the recorded value of net
assets of the business distributed, including cash of $47.0 million. The
distribution agreement provided for certain post-distribution adjustments
relating to the amount of cash to be included in the net assets distributed. At
March 31, 2003, the final adjustment had been calculated and is subject to a
dispute resolution process. We expect that the final resolution of this process
on our Unaudited Condensed Consolidated Financial Statements will be
immaterial.

The
$150 million of outstanding Coltec Capital Trust 51⁄4 percent
convertible trust preferred securities (TIDES) that were reflected in
liabilities of discontinued operations prior to the spin-off remained
outstanding as part of the EnPro capital structure following the spin-off. The
TIDES are convertible into shares of both Goodrich and EnPro common stock until
April 15, 2028. We have guaranteed amounts owed by Coltec Capital Trust with
respect to the TIDES and have guaranteed Coltecs performance of its
obligations with respect to the TIDES and the underlying Coltec convertible
subordinated debentures. EnPro, Coltec and Coltec Capital Trust have agreed to
indemnify us for any costs and liabilities arising under or related to the
TIDES after the spin-off.

21



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2003 First Quarter Results

The following table highlights our results of operations for the three
months ended March 31, 2003 and 2002.

|                                          |  |                                      |         |      |  |   |       |  
|----------------------------------------- |  | ------------------------------------ | ------- | ---- |  | - | ----- | -
|                                          |  | Three Months Ended March 31,        
|                                          |  |                                     
|                                          |  | 2003                                 |         | 2002
|                                          |  |                                      |         |     
|                                          |  | (In millions, except per share data)
|Sales                                     |  | $                                    | 1,094.2 |      |  | $ | 895.8 |  
|                                          |  |                                      |         |      |  |   |       |  
|Segment Operating Income                  |  | $                                    | 18.8    |      |  | $ | 119.5 |  
|                                          |  |                                      |         |      |  |   |       |  
|Income (Loss) from Continuing Operations  |  | $                                    | (32.8   | )    |  | $ | 49.4  |  
|Income from Discontinued Operations       |  |                                      | 62.7    |      |  |   | 1.0   |  
|Cumulative Effect of an Accounting
Change |  |                                      | (0.5    | )    |  |   | (36.1 | )
|                                          |  |                                      |         |      |  |   |       |  
|Net Income                                |  | $                                    | 29.4    |      |  | $ | 14.3  |  
|                                          |  |                                      |         |      |  |   |       |  
|Diluted EPS-Net Income                    |  | $                                    | 0.25    |      |  | $ | 0.15  |  
|                                          |  |                                      |         |      |  |   |       |  
|Net Cash Provided by Operating Activities |  | $                                    | 121.6   |      |  | $ | 59.7  |  
|                                          |  |                                      |         |      |  |   |       |  



| |   |  | Income (Loss) from Continuing Operations for the first quarter of 2003
includes the following items:                                                                                                                 
| | - |  | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|
| |  |  | A write-down of inventory and long term receivables relating to the
Super 27 re-engining program of $53.6 million after tax, or $0.46 per
diluted share.                                                             
|
| |  |  | A write-off of our equity investment in Cordiem LLC, an aerospace
e-business venture, of $7.8 million after tax, or $0.07 per diluted
share.                                                                         
|
| |  |  | An impairment of excess facilities and spare part valuation
adjustments resulting in a charge of $8.1 million after tax, or $0.07
per diluted share.                                                                 
|
| |  |  | Restructuring charges, including severance and plant closing costs
of $2.2 million after tax, or $0.02 per diluted share.                                                                                            
|
| |  |  | A provision for accounts receivable due to customer bankruptcies of
$1.5 million after tax, or $0.01 per share.                                                                                                      
|
| |  |  | The sale by us of $155.8 million in aggregate principal amount of
Noveon International, Inc. payment-in-kind notes (Noveon PIK Notes)
which resulted in a gain of $5.0 million after tax, or $0.04 per
diluted share.
|
| |   |  | Income (Loss) from Continuing Operations for the first quarter of 2002
includes the following items:                                                                                                                 
|
| |  |  | Restructuring charges, including severance and plant closing costs
of $4.5 million after tax, or $0.04 per diluted share.                                                                                            
|
| |  |  | A provision for accounts receivable due to customer bankruptcies of
$1.0 million after tax, or $0.01 per share.                                                                                                      

Outlook

Over the past quarter the accelerating downturn in global commercial
aerospace markets has negatively affected our business. This downturn is
driven by several factors, including a continuing weak global economic outlook
and the decreased financial health of airlines worldwide, which has been
exacerbated by the military conflict in Iraq and the outbreak of Severe Acute
Respiratory Syndrome (SARS) in the Asia-Pacific region. These factors have
resulted in a significant decrease in airline flight capacity, as well as
declining demand for new aircraft in all commercial sectors, all of which have
negatively impacted our original equipment and aftermarket
businesses.

We are initiating a number of aggressive actions in 2003 in response to
the weak market environment. These actions include further reductions in
manufacturing capacity and employment levels, so that the scale of operations
are better matched to customer demand. Including employment reductions
associated with the acquisition of Aeronautical Systems, we expect to reduce
employment levels by more than 1,700 people in 2003 and 2004. Further, we
are reducing the match on our U.S. 401(k) employee savings plan from 100
percent to 50 percent of the first 6 percent of employee contributions,
effective June 1, 2003. In addition to these initiatives, we have also
recognized impairment charges in the first quarter of 2003 related to certain
assets due to declining demand and reduced valuations.

In view of the current market environment, we have revised our diluted
earnings per share (EPS), sales and cash flow outlook for 2003. Our estimate
for 2003 has been revised from $1.45 - $1.60 to $0.27 - $0.42 for diluted EPS
from continuing operations. The downward revision reflects the impact of the
current market environment, the first quarter of 2003 actual results and the
impact of additional asset impairment charges and severance and facility
closure costs as noted in the table below. Our estimate for asset impairment,
facility closures and headcount reduction charges included in continuing
operations for 2003 has been increased from $0.18 - $0.21 per share to $1.02 -
$1.14 per share. The sales outlook for 2003 has been revised from
$4.4 - $4.5
billion to $4.3 billion.

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Our current outlook for diluted EPS of $0.80 - $0.95 includes income from
discontinued operations of $0.53. Our EPS outlook will be provided only on this
basis in future filings.

Regarding the market segments in which we operate, the outlook assumes
that the demand for large commercial transport original equipment declines in
line with manufacturers forecasts for delivery, from 684 deliveries in 2002 to
about 550 in 2003, with further declines expected in 2004. Large commercial
jet aftermarket sales are now expected to decrease about 5 - 10 percent in
2003, as the airlines continue to expect a difficult market environment as a
result of current economic and political conditions, and the impact of SARS.
Regional aircraft sales are expected to be relatively flat in 2003, while sales
of business aircraft are expected to decline dramatically. Aftermarket sales
for regional, business and general aviation aircraft are expected to be flat or
slightly up, when compared to 2002. Military sales (OE and aftermarket) should
increase roughly in line with global military budgets, between 5 percent and 10
percent.

|                                            |                                                            |                                              |           |                    |            |         |              |                |                |  
|------------------------------------------- | ---------------------------------------------------------- | -------------------------------------------- | --------- | ------------------ | ---------- | ------- | ------------ | -------------- | -------------- | -
|Full year 2003 Outlook                      |                                                            | Full Year 2003 estimate                     
|                                            |                                                            |                                             
|                                            |                                                            |                                              |           | After-tax earnings |            | Diluted
|                                            |                                                            |                                              |           | ($ in Millions)    |            | EPS    
|                                            |                                                            |                                              |           |                    |            |        
|Net income                                  |                                                            | $                                            | 95 - $115 |                    |            | $       | 0.80 - $0.95 |               
|Included in net income (amounts after-tax): |                                                            |                                              |           |                    |            |         |              |               
|Income from discontinued operations         |                                                            | $                                            | 63        |                    |            | $       | 0.53         |               
|Gain on sale of Noveon PIK notes            |                                                            | $                                            | 5         |                    |            | $       | 0.04         |               
|Non-cash asset impairment charges           |                                                            |                                              |           |                    |            |         |              |               
|                                            | Cordiem investment write-off                               |                                              |           | ($8)               |            |         |              | ($0.07)        |               
|                                            | Super 27 inventory and receivables impairment              |                                              |           | ($54)              |            |         |              | ($0.46)        |               
|                                            | Other asset impairments                                    |                                              |           | ($23 - $30         | )          |         |              | ($0.19 - $0.25 | )             
|                                            | Accounts receivable write-off due to customer bankruptcies |                                              |           | ($2)               |            |         |              | ($0.01)        |               
|                                            |                                                            | Subtotal  non-cash asset impairment charges |           |                    | ($87 - $94 | )       |              |                | ($0.73 - $0.79 | )
|Capacity reduction actions                  |                                                            |                                              |           |                    |            |         |              |               
|                                            | Facility closures and headcount reductions                 |                                              |           | ($34 - $40         | )          |         |              | ($0.29 - $0.35 | )             

Our cash flow from operations outlook for 2003 has been revised from $350
- $400 million to $315 - $350 million to reflect the changes in income and the
increased cash payments expected for the facility closures and headcount
reductions. The current outlook includes estimated cash payments for facility
closures and headcount reductions of $55 - $65 million. The asset impairment
charges discussed above do not impact cash flow, and the cash impact of the
reduced operating results are expected to be largely offset by projected
reductions in capital spending and improvements in working capital.

We expect capital expenditures in 2003 to be $140 - $160 million.

23



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Results of Operations

Total Company

First Quarter of 2003 Compared With First Quarter of 2002

|                                           |                        |   |                       |      |      |   |       |       | 
|------------------------------------------ | ---------------------- | - | --------------------- | ---- | ---- | - | ----- | ----- | 
|                                           |                        |   | Three Months Ended   
|                                           |                        |   | March 31,            
|                                           |                        |   |                      
|                                           |                        |   | 2003                  |      | 2002
|                                           |                        |   |                       |      |     
|                                           |                        |   | (Dollars in millions)
|Sales                                      |                        | $ | 1,094.2               |      |      | $ | 895.8 |      
|                                           |                        |   |                       |      |      |   |       |      
|Segment Operating Income                   |                        |   | 18.8                  |      |      |   | 119.5 |      
|Corporate General and Administrative Costs |                        |   | (15.9                 | )    |      |   | (15.6 | )    
|                                           |                        |   |                       |      |      |   |       |      
|                                           | Total Operating Income |   |                       | 2.9  |      |   |       | 103.9 | 
|Net Interest Expense                       |                        |   | (35.4                 | )    |      |   | (17.0 | )    
|Other Income (Expense)  net               |                        |   | (12.6                 | )    |      |   | (9.3  | )    
|Income Tax (Expense) Benefit               |                        |   | 14.9                  |      |      |   | (25.6 | )    
|Distribution on Trust Preferred Securities |                        |   | (2.6                  | )    |      |   | (2.6  | )    
|                                           |                        |   |                       |      |      |   |       |      
|Income (Loss) from Continuing Operations   |                        |   | (32.8                 | )    |      |   | 49.4  |      
|Income from Discontinued Operations        |                        |   | 62.7                  |      |      |   | 1.0   |      
|Cumulative Effect of an Accounting Change  |                        |   | (0.5                  | )    |      |   | (36.1 | )    
|                                           |                        |   |                       |      |      |   |       |      
|                                           | Net Income             |   | $                     | 29.4 |      |   | $     | 14.3  | 
|                                           |                        |   |                       |      |      |   |       |      

Changes in sales and segment operating income are discussed within the
Business Segment Performance section below.

Corporate general and administrative costs of $15.9 million for the first
quarter 2003 were slightly higher than the $15.6 million for the first quarter
2002. Corporate general and administrative costs as a percentage of sales
improved to 1.5 percent in the first quarter of 2003 from 1.7 percent in the
first quarter of 2002. The improvement resulted from the acquisition of
Aeronautical Systems with minimal increase in corporate general and
administrative costs and lower incentive compensation.

Interest expense  net increased $18.4 million primarily due to interest
of $14.6 million on the long-term debt of $800 million issued in the fourth
quarter of 2002 to finance the acquisition of Aeronautical Systems. Interest
expense also increased due to the higher average level of short-term debt
during the first quarter of 2003 as compared to the first quarter of 2002.

Other income (expense)  net increased by $3.3 million from expense of
$9.3 million in the first quarter of 2002 to expense of $12.6 million in the
first quarter of 2003. The increase in expense resulted from the write-off of
our equity investment in Cordiem LLC of $11.7 million, offset in part by a gain
on the sale of the Noveon PIK Notes of $6.9 million and a gain on the sale of
real estate of $0.9 million.

Our estimated effective tax rate from continuing operations during the
first quarter of 2003 and 2002 was 33.0 percent for each quarter.

Income from discontinued operations, after tax, was $62.7 million during
the first quarter of 2003 primarily representing the gain on the sale of the
Avionics business in the first quarter of 2003 of $63.3 million. Income from
discontinued operations for the avionics and passenger restraint systems
operating results was a loss of $0.6 million in the first quarter of 2003 and
income of $0.2 million in the first quarter of 2002. Our passenger restraint
systems business ceased operations in the first quarter of 2003. Also
included in income from discontinued operations was profit of $0.8 million in
the first quarter of 2002 for the Engineered Industrial Products segment which
was spun-off to shareholders on May 31, 2002.

24



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##### 



The cumulative effect of an accounting change, as presented after taxes,
for the first quarter of 2003 of a loss of $0.5 million represents the adoption
of Statement of Financial Standards No. 143 Accounting for Asset Retirement
Obligations. We established a liability for contractual obligations for the
retirement of long-lived assets. The cumulative effect of an accounting
change, as presented after taxes, for the first quarter of 2002 of a loss of
$36.1 million represents the adoption of Statement of Financial Accounting
Standards No. 142 Goodwill and Other Intangible Assets. Based upon the
impairment test of goodwill and indefinite lived intangible assets, we
determined that goodwill relating to the aviation technical services reporting
unit, reported in the Airframe Systems segment, had been impaired. As a
result, we recognized an impairment charge, representing total goodwill of the
aviation technical services reporting unit. The goodwill was non-deductible
for tax purposes.

Business Segment Performance

Segment Analysis

Our operations are reported as three business segments: Airframe Systems,
Engine Systems and Electronic Systems.

An expanded analysis of sales and operating income by business segment
follows.

In the following tables, segment operating income is total segment revenue
reduced by operating expenses directly identifiable with that business segment.

First Quarter 2003 Compared with First Quarter 2002

|                                |                                 |   |                              |         |      |   |       |       |      |  |        |       |   |  |            |     |  |  |      |      | 
|------------------------------- | ------------------------------- | - | ---------------------------- | ------- | ---- | - | ----- | ----- | ---- |  | ------ | ----- | - |  | ---------- | --- |  |  | ---- | ---- | 
|                                |                                 |   | Three Months Ended March 31,
|                                |                                 |   |                             
|                                |                                 |   |                              |         |      |   |       |       |      |  |        |       |   |  | % of Sales
|                                |                                 |   |                              |         |      |   |       |       |      |  |        |       |   |  |           
|                                |                                 |   | 2003                         |         | 2002 |   | %     |       | 2003 |  | 2002  
|                                |                                 |   |                              |         |      |   |       |       |      |  |       
|                                |                                 |   |                              |         |      |   |       |       |      |  | Change |       |   |  |            |     |  |  |     
|                                |                                 |   |                              |         |      |   |       |       |      |  |        |       |   |  |            |     |  |  |     
|                                |                                 |   | (Dollars in millions)       
|SALES                           |                                 |   |                              |         |      |   |       |       |      |  |        |       |   |  |            |     |  |  |      |     
|Airframe Systems                |                                 | $ | 454.7                        |         |      | $ | 334.6 |       |      |  | 35.9   |       |   |  |            |     |  |  |      |     
|Engine Systems                  |                                 |   | 385.7                        |         |      |   | 344.9 |       |      |  | 11.8   |       |   |  |            |     |  |  |      |     
|Electronics Systems             |                                 |   | 253.8                        |         |      |   | 216.3 |       |      |  | 17.3   |       |   |  |            |     |  |  |      |     
|                                |                                 |   |                              |         |      |   |       |       |      |  |        |       |   |  |            |     |  |  |      |     
|                                | Total Sales                     |   | $                            | 1,094.2 |      |   | $     | 895.8 |      |  |        | 22.1  |   |  |            |     |  |  |      |      | 
|                                |                                 |   |                              |         |      |   |       |       |      |  |        |       |   |  |            |     |  |  |      |     
|SEGMENT OPERATING INCOME (LOSS) |                                 |   |                              |         |      |   |       |       |      |  |        |       |   |  |            |     |  |  |      |     
|Airframe Systems                |                                 | $ | 22.8                         |         |      | $ | 32.4  |       |      |  | (29.6  | )     |   |  | 5.0        |     |  |  | 9.7  |     
|Engine Systems                  |                                 |   | (35.9                        | )       |      |   | 56.9  |       |      |  |        |       |   |  | (9.3       | )   |  |  | 16.5 |     
|Electronic Systems              |                                 |   | 31.9                         |         |      |   | 30.2  |       |      |  | 5.6    |       |   |  | 12.6       |     |  |  | 14.0 |     
|                                |                                 |   |                              |         |      |   |       |       |      |  |        |       |   |  |            |     |  |  |      |     
|                                | Segment Operating Income (Loss) |   | $                            | 18.8    |      |   | $     | 119.5 |      |  |        | (84.3 | ) |  |            | 1.7 |  |  |      | 13.3 | 
|                                |                                 |   |                              |         |      |   |       |       |      |  |        |       |   |  |            |     |  |  |      |     

Airframe Systems:Airframe Systems segment sales of $454.7 million in the
first quarter of 2003 increased $120.1 million, or 35.9 percent from $334.6
million in the first quarter of 2002. The increase was due to sales associated
with the Aeronautical Systems businesses included in the Airframe Systems
segment which together represented about $150 million in sales in the first
quarter of 2003. Excluding these businesses, sales decreased approximately $30
million from the year-ago quarter. Sales for aftermarket wheels and brakes
increased from the year-ago quarter due to additional demand for aftermarket
wheel and brake primarily due to additional volume on the B747 and F16
programs. This increase in sales was more than offset by lower sales in
landing gear due to decreased sales of original equipment to Boeing, primarily
on the B737 and the B777 programs, and a decrease in wheel and brake services
due to the completion of a major customer contract during the fourth quarter of
2002.

Airframe Systems segment operating income decreased $9.6 million, or 29.6
percent, from $32.4 million in the first quarter of 2002 to $22.8 million in
the first quarter 2003. Included in the first quarter of 2003 was a charge

25



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##### 



of $6.2 million for the write-down of rotable landing gear due to current
market conditions. The additional decrease in operating income from the first
quarter of 2002 to the first quarter 2003 of $3.4 million was primarily due to
the decreased sales for landing gear original equipment in the commercial
market, decreased sales for wheel and brake services due to the completion of a
major customer contract in the fourth quarter of 2002 and higher pension
expense. Segment operating income was positively impacted by higher sales for
wheels and brakes and reduced strategic sales incentives on wheel and brake
original equipment deliveries compared to the year-ago quarter and the
implementation of productivity initiatives across the segment in 2002. The
Aeronautical Systems businesses in the Airframe Systems segment contributed
marginal operating income to the operating income of the segment, primarily as
a result of costs to support awards for actuation products on the A380.
Restructuring costs were $3.7 million in the first quarter of 2003 and $2.1
million in the first quarter of 2002.

Engine Systems:Engine Systems segment sales in the first quarter of 2003
of $385.7 million increased $40.8 million, or 11.8 percent, from $344.9 million
in the first quarter of 2002. The increase was due to sales associated with
the Aeronautical Systems businesses included in the Engine Systems segment,
which together approximated $63 million in sales in the first quarter of 2003.
Excluding these businesses, sales decreased approximately $22 million from the year-ago
quarter. Partially offsetting the increase in sales in the first quarter of
2003 was a decline in most of the Boeing and Airbus aerostructures production
programs and a decline in demand for industrial gas turbine
components. The
aerostructures volume declines related to lower deliveries on the Airbus A320
and A330 and the Boeing B717, B737 and B757 aircraft programs. Spare parts
sales improved in the Asian and European markets with sales in North American
markets declining as a result of lower demand from domestic airlines.

Engine Systems operating income was a loss of $35.9 million in the first
quarter of 2003 and income of $56.9 million in the first quarter of 2002.
Included in the first quarter of 2003 was a write-down of inventory and
long-term receivables relating to the Super 27 re-engining program of $79.9
million. This write-down is described below in detail at
Contingencies-Certain Contracts and Investment-Super 27 Program. Operating
income decreased due to lower sales for the aerostructures and industrial gas
turbines businesses, initial start up costs for the next generation 747 cargo
system introduced in the first quarter of 2003, higher than expected spending
on pre-certification costs on the aerostuctures Trent 900 contract, an
adjustment of margins on an aerostructures production contract and higher
pension expense. The Aeronautical Systems businesses included in the Engine
Systems segment contributed a marginal operating loss to segment operating
income. Restructuring and consolidation costs in the first quarter of 2003
were $4.9 million and were $2.3 million in the first quarter of 2002.

Electronic Systems: Sales of the Electronic Systems segment of $253.8
million increased $37.5 million, or 17.3 percent, from $216.3 million in the
first quarter of 2002. The increase was primarily due to sales associated with
the Aeronautical Systems businesses included in the Electronic Systems segment,
which together represented $36.7 million in sales in the first quarter of
2003. Excluding these businesses, sales were relatively flat compared to the
year-ago period. Slightly higher sales in lighting systems and fuel and
utility systems, primarily due to the HUMS military program, were offset by
lower volume in the sensors and aircraft interior products.

Electronic Systems segment operating income was $31.9 million in the first
quarter of 2003 and $30.2 million in the first quarter of 2002. Operating
income was affected by unfavorable sales mix primarily aircraft interior
products and sensors, new program investments, primarily at power systems and
aircraft interior products, higher pension expense at all businesses and
uncollectible accounts receivable primarily due to airline bankruptcies.
Operating income for the Aeronautical Systems businesses included in the
Electronic Systems segment was breakeven. Restructuring and consolidation
costs included in operating income were $2.0 million in the first quarter of
2002 and $0.5 million in the first quarter of 2003.

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Capital Resources and Liquidity

We currently expect to fund expenditures for capital requirements as well
as liquidity needs from a combination of cash, internally generated funds and
financing arrangements. We believe that our internal liquidity, together with
access to external capital resources, will be sufficient to satisfy existing
commitments and plans and also provide adequate financial flexibility.

Cash

At March 31, 2003, we had cash and marketable securities of $185.8
million, as compared to $149.9 million on December 31, 2002.

Credit Facilities

In October 2002, we borrowed $1.5 billion under a committed syndicated
credit agreement expiring in July 2003, to finance the acquisition of
Aeronautical Systems from TRW Inc. During 2002, we repaid $1.3 billion with
the proceeds from the issuance of common stock and long-term debt, operating
cash flow and the proceeds from the sale of certain non-operating assets. In
March 2003, we repaid the balance of $200 million with the proceeds from the
sale of the Noveon PIK Notes and a portion of the proceeds from the sale of our
Avionics business.

As of March 31, 2003, we had $750 million in committed global syndicated
revolving credit agreements with a group of international banks. These credit
facilities consist of a $425 million three-year agreement expiring in December
2004 and a $325 million 364-day agreement expiring in September 2003. At March
31, 2003, there were no borrowings under these facilities. At December 31,
2002, $155 million was borrowed under these committed revolving credit
facilities. During the first quarter of 2003, all amounts borrowed were repaid
with a portion of the proceeds from the sale of our Avionics business, cash
flow from operations and proceeds from the sale of certain non-operating
assets.

We also maintain $100 million of uncommitted domestic money market
facilities and $6.8 million of uncommitted foreign working capital facilities
with various banks to meet short-term borrowing requirements. As of March 31,
2003, there were no borrowings under these facilities. At December 31, 2002,
$23.5 million was borrowed under these facilities. These uncommitted credit
facilities are provided by a small number of commercial banks that also provide
us with committed credit through the syndicated revolving credit facilities and
with various cash management, trust and other services. As a result of these
established relationships, we believe that our uncommitted facilities are a
highly reliable and cost-effective source of liquidity.

Continued borrowing under our credit facilities is conditioned upon
compliance with financial and other covenants set forth in the related
agreements. We are currently in compliance with all such covenants. Our credit
facilities do not contain any credit rating downgrade triggers that would
accelerate the maturity of our indebtedness. However, a ratings downgrade would
result in an increase in the interest rate and fees payable under our
syndicated revolving credit facilities. Such a downgrade also could adversely
affect our ability to renew existing or obtain access to new credit facilities
in the future and could increase the cost of such new facilities.

Long Term Financing

At March 31, 2003, we had long-term debt of $2,130.7 million, with
maturities ranging from 2004 to 2046. Current maturities of long-term debt at
March 31, 2003 were $1.8 million. The earliest maturity of a material
long-term debt obligation is December 2007. We also maintain a shelf
registration statement that allows us to issue up to $1.4 billion of debt
securities, series preferred stock, common stock, stock purchase contracts and
stock purchase units under our existing shelf registration.

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QUIPS

At March 31, 2003, $126.5 million was outstanding of 8.30% Cumulative
Quarterly Income Preferred Securities, Series A (QUIPS) issued by BFGoodrich
Capital, a Delaware business trust (Trust), all of the common equity of which
is owned by us. The QUIPS are supported by 8.30% Junior Subordinated
Debentures, Series A, due 2025 (QUIPS Debentures) issued by us. We have
unconditionally guaranteed all distributions required to be made by the Trust,
but only to the extent the Trust has funds legally available for such
distributions.

Off-Balance Sheet Arrangements

We utilize several forms of off-balance sheet financing arrangements. At
March 31, 2003, these arrangements included:

|                                |  |              |       |             |  |   |      | 
|------------------------------- |  | ------------ | ----- | ----------- |  | - | ---- | 
|                                |  | UNDISCOUNTED |       |             |  |  
|                                |  | MINIMUM      |       |             |  |  
|                                |  | FUTURE LEASE |       | RECEIVABLES
|(IN MILLIONS)                   |  | PAYMENTS     |       | SOLD       
|                                |  |              |       |            
|Tax Advantaged Operating Leases |  | $            | 56.9  |             |  |   |      | 
|Standard Operating Leases       |  |              | 151.0 |             |  |   |      | 
|                                |  |              |       |             |  |   |      | 
|                                |  | $            | 207.9 |             |  |   |      | 
|                                |  |              |       |             |  |   |      | 
|Short-term Receivables          |  |              |       |             |  | $ | 95.2 | 

Lease Agreements

We finance our use of certain equipment, including corporate aircraft,
under committed lease arrangements provided by financial institutions. Certain
of these arrangements allow us to claim a deduction for the tax depreciation on
the assets, rather than the lessor, and allowed us to lease up to a maximum of
$95 million at March 31, 2003. At March 31, 2003, $56.9 million of future
minimum lease payments were outstanding under these arrangements. In addition,
we also have various other operating lease agreements in which the lessor
claims the deduction for tax depreciation whose future minimum lease payments
approximated $151.0 million at March 31, 2003.

Sale of Receivables

At March 31, 2003, we had in place a trade receivables securitization
program pursuant to which we could sell receivables up to a maximum of $140
million. Accounts receivable sold under this program were $95.2 million at
March 31, 2003 as compared to $97.3 million at December 31, 2002.

Continued availability of the securitization program is conditioned upon
compliance with covenants, related primarily to operation of the
securitization, set forth in the related agreements. We are currently in
compliance with all such covenants. The securitization agreement includes a
credit rating downgrade trigger pursuant to which the agreement may be
terminated upon a rating downgrade to levels below BB- by Standard & Poors and
Ba3 by Moodys Investor Services. If such an event were to occur, we expect
that we would have sufficient capital resources through our existing revolving
credit facilities to satisfy any termination requirements.

Cash Flow Hedges

We
have subsidiaries that conduct a substantial portion of their
business in Great Britain Pounds and Euros, but have significant sales
contracts that are denominated in U.S. dollars. In March 2002, we
entered into forward contracts that mature each month between
April 2002 and December 2003 to exchange U.S. dollars for Euros. In October
2002, we entered into forward contracts that mature on a
monthly basis from October 2002 to April 2007 to exchange U.S. dollars for
Euros and Great Britain Pounds.

The forward contracts described above are used to mitigate the potential
volatility to cash flow arising from changes in currency exchange rates. The
hedges are being accounted for as cash flow hedges. The derivatives are
recorded at fair value with the offset reflected in accumulated other
comprehensive income, net of deferred taxes. The nominal value of the hedges at
March 31, 2003 was $726 million. The fair value of the hedges at March 31,

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2003 was an asset of $25.0 million, of which $9.5 million is recorded in
Prepaid Expenses and Other Assets and $15.5 million is recorded in Other
Assets.

The $25.0 million gross gain (before deferred taxes of $8.2 million)
recorded in accumulated other comprehensive income will be reflected in income
as the individual contracts mature, and the hedged item impacts earnings. As of
March 31, 2003, the portion of the $25.0 million gain that would be
reclassified into earnings as an increase in sales in the next 12 months is a
gain of $9.5 million.

Change in Dividend Policy

On May 17, 2002, our Board of Directors approved a change in our dividend
policy to achieve a net income payout ratio that we believe is consistent with
other leading aerospace companies. Specifically, our quarterly dividend was
reduced to 20 cents per share from the previous level of 27.5 cents per share
on our common stock, effective with the regular quarterly dividend payable July
1, 2002, to shareholders of record as of June 10, 2002.

Cash Flows

The following table summarizes our cash flow activities for the periods
indicated:

|                 |                                               |  |                       |        |      |  |        |       |   |  |   |        |  
|---------------- | --------------------------------------------- |  | --------------------- | ------ | ---- |  | ------ | ----- | - |  | - | ------ | -
|                 |                                               |  | Three Months Ended,   |        |      |  |       
|                 |                                               |  | March 31,             |        |      |  |       
|                 |                                               |  |                       |        |      |  |       
|                 |                                               |  | 2003                  |        | 2002 |  | Change
|                 |                                               |  |                       |        |      |  |       
|                 |                                               |  | (Dollars in millions)
|Cash flows from: |                                               |  |                       |        |      |  |        |       |   |  |   |       
|                 | Operating activities of continuing operations |  | $                     | 121.6  |      |  | $      | 59.7  |   |  | $ | 61.9   |  
|                 | Investing activities of continuing operations |  | $                     | 132.0  |      |  | $      | (15.9 | ) |  | $ | 147.9  |  
|                 | Financing activities of continuing operations |  | $                     | (402.1 | )    |  | $      | (3.1  | ) |  | $ | (399.0 | )
|                 | Discontinued operations                       |  | $                     | 185.0  |      |  | $      | (22.8 | ) |  | $ | 207.8  |  

Cash flow from operating activities of continuing operations increased
$61.9 million from $59.7 million during the first three months of 2002 to
$121.6 million during the first three months of 2003 due to favorable
management of working capital. Cash flow from operating activities included
tax refunds of $55 million in the first quarter of 2003 and $50 million in the
first quarter of 2002. Cash flow from operating activities was reduced by
pension contributions of $27 million in the first quarter of 2003 and $4
million in the first quarter of 2002.

Cash
flow from investing activities of continuing operations improved by
$147.9 million in the first quarter of 2003 from the first quarter of 2002 due
to proceeds from the sale of the Noveon PIK Notes of $151.9 million. Capital
expenditures were $2.8 million higher in the first quarter of 2003 as compared
to the first quarter of 2002.

Cash used in financing activities of continuing operations was $402.1
million in the first quarter of 2003 and $3.1 million for the first quarter of
2002. The significant decrease in short-term debt in the first quarter of 2003
resulted primarily from the repayment of short-term debt with the net cash
proceeds from the sale of our Avionics business of $181 million, cash proceeds
from the sale of the Noveon PIK Notes of $151.9 million and cash provided by
operating activities of $121.6 million, offset in part by dividends of $23.4
million and capital expenditures of $19.9 million.

Cash provided by discontinued operations of $185.0 million in the first
quarter 2003 included $181 million net proceeds from the sale of the Avionics
business.

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Contingencies

General

There are pending or threatened against us or our subsidiaries various
claims, lawsuits and administrative proceedings, all arising from the ordinary
course of business with respect to commercial, product liability, asbestos and
environmental matters, which seek remedies or damages. We believe that any
liability that may finally be determined with respect to commercial and
non-asbestos product liability claims should not have a material effect on our
consolidated financial position or results of operations. From time to time, we
are also involved in legal proceedings as a plaintiff involving contract,
patent protection, environmental and other matters. Gain contingencies, if any,
are recognized when they are realized.

Environmental

We are subject to various domestic and international environmental laws
and regulations which may require that we investigate and remediate the effects
of the release or disposal of materials at sites associated with past and
present operations, including sites at which we have been identified as a
potentially responsible party under the federal Superfund laws and comparable
state laws. We are currently involved in the investigation and remediation of a
number of sites under these laws.

The measurement of environmental liabilities by us is based on currently
available facts, present laws and regulations and current technology. Such
estimates take into consideration our prior experience in site investigation
and remediation, the data concerning cleanup costs available from other
companies and regulatory authorities and the professional judgment of our
environmental specialists in consultation with outside environmental
specialists, when necessary. Estimates of our liability are further subject to
uncertainties regarding the nature and extent of site contamination, the range
of remediation alternatives available, evolving remediation standards,
imprecise engineering evaluations and estimates of appropriate cleanup
technology, methodology and cost, the extent of corrective actions that may be
required and the number and financial condition of other potentially
responsible parties, as well as the extent of their responsibility for the
remediation.

Accordingly, as investigation and remediation of these sites proceed, it
is likely that adjustments in our accruals will be necessary to reflect new
information. The amounts of any such adjustments could have a material adverse
effect on our results of operations in a given period, but the amounts, and the
possible range of loss in excess of the amounts accrued, are not reasonably
estimable. Based on currently available information, however, we do not believe
that future environmental costs in excess of those accrued with respect to
sites with which we have been identified as a potentially responsible party are
likely to have a material adverse effect on our financial condition. There can
be no assurance, however, that additional future developments, administrative
actions or liabilities relating to environmental matters will not have a
material adverse effect on our results of operations or cash flows in a given
period.

Environmental liabilities are recorded when our liability is probable and
the costs are reasonably estimable, which generally is not later than at
completion of a feasibility study or when we have recommended a remedy or have
committed to an appropriate plan of action. The liabilities are reviewed
periodically and, as investigations and remediation proceed, adjustments are
made as necessary. Liabilities for losses from environmental remediation
obligations do not consider the effects of inflation, and anticipated
expenditures are not discounted to their present value. The liabilities are not
reduced by possible recoveries from insurance carriers or other third parties,
but do reflect anticipated allocations among potentially responsible parties at
federal Superfund sites or similar state-managed sites and an assessment of the
likelihood that such parties will fulfill their obligations at such sites.

At March 31, 2003, our liabilities for environmental remediation
obligations totaled $92.0 million, of which $16.4 million was included in
current liabilities as Accrued Liabilities. Of the $92.0 million, $23.6 million
was associated with ongoing operations and $68.4 million was associated with
businesses previously disposed of or discontinued.

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The timing of expenditures depends on a number of factors that vary by
site, including the nature and extent of contamination, the number of
potentially responsible parties, the timing of regulatory approvals, the
complexity of the investigation and remediation, and the standards for
remediation. We expect that we will expend present accruals over many years,
and will complete remediation of all sites with which we have been identified
in up to 30 years. This period includes operation and monitoring costs that are
generally incurred over 15 to 25 years.

Tolo Litigation

In May 2000, we and our subsidiary Rohr, Inc. were served with a complaint
in a lawsuit filed in the Superior Court of Orange County, California, by
former shareholders and certain former employees of Tolo, Inc. Tolo is a
subsidiary of Rohr that was acquired in 1997 pursuant to a stock purchase
agreement. The former shareholders alleged that we and Rohr breached the stock
purchase agreement by failing to pay $2.4 million under the terms of the
agreement. In September 2001, a jury found that we were liable to the
shareholders for the $2.4 million retained by Rohr under the stock purchase
agreement and we were also assessed punitive damages of $48 million. The court
subsequently reduced the punitive damage award to $24 million. We and Rohr
appealed the judgment.

In December 2002, the appellate court issued a ruling directing the trial
court to enter judgment in favor of us and Rohr on both the fraud claim and the
breach of contract claim. The plaintiffs motion for rehearing of that ruling
was subsequently denied. On April 16, 2003, the plaintiffs petition for review
with the California Supreme Court was denied.

Asbestos

We and certain of our subsidiaries have been named as defendants in
various actions by plaintiffs alleging injury or death as a result of exposure
to asbestos fibers in products, or which may have been present in our
facilities. A number of these cases involve maritime claims, which have been
and are expected to continue to be administratively dismissed by the court.
These actions primarily relate to previously owned businesses. We believe that
we have substantial insurance coverage available to us related to any remaining
claims. We believe that these pending and reasonably anticipated future actions
are not likely to have a material adverse effect on our financial condition or
results of operations.

Liabilities of Divested Businesses

Asbestos

At the time of the EIP spin-off, two subsidiaries of Coltec were
defendants in a significant number of personal injury claims relating to
alleged asbestos-containing products sold by those subsidiaries. It is possible
that asbestos-related claims might be asserted against us on the theory that we
have some responsibility for the asbestos-related liabilities of EnPro, Coltec
or its subsidiaries, even though the activities that led to those claims
occurred prior to our ownership of any of those subsidiaries. Also, it is
possible that a claim might be asserted against us that Coltecs dividend of
its aerospace business to us prior to the spin-off was made at a time when
Coltec was insolvent or caused Coltec to become insolvent. Such a claim could
seek recovery from us on behalf of Coltec of the fair market value of the
dividend.

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A limited number of asbestos-related claims have been asserted against us
as successor to Coltec or one of its subsidiaries. We believe
that we have substantial legal defenses against these
claims, as well as against any other claims that may be asserted
against us on the theories described above. In addition, the agreement between EnPro and us that was used to
effectuate the spin-off provides us with an indemnification from EnPro
covering, among other things, these liabilities. The success of any such asbestos-related claims would likely require, as a
practical matter, that Coltecs subsidiaries were unable to satisfy their
asbestos-related liabilities and that Coltec was found to be responsible for
these liabilities and was unable to meet its financial obligations. We believe
any such claims would be without merit and that Coltec was solvent both before
and after the dividend of its aerospace business to us. If we are ultimately found to
be responsible for the asbestos-related liabilities of Coltecs subsidiaries,
we believe it would not have a material adverse effect on our financial
condition, but could have a material adverse effect on our results of
operations and cash flows in a particular period. However, because of the
uncertainty as to the number, timing and payments related to future
asbestos-related claims, there can be no assurance that any such claims will
not have a material adverse effect on our financial condition, results of
operations and cash flows. If a claim related to the dividend of Coltecs
aerospace business were successful, it could have a material adverse impact on
our financial condition, results of operations and cash flows.

Other

In connection with the divestiture of our tire, vinyl and other businesses, we have received contractual rights
of indemnification from third parties for environmental and other claims
arising out of the divested businesses. Failure of these third parties to
honor their indemnification obligations could have a material adverse effect on
our consolidated financial condition, results of operations and cash flow.

Guarantees

We have guaranteed amounts owed by Coltec Capital Trust with respect to
the $150 million of outstanding TIDES and have guaranteed Coltecs performance
of its obligations with respect to the TIDES and the underlying Coltec
convertible subordinated debentures. Following the spin-off of the EIP segment,
the TIDES remained outstanding as an obligation of Coltec Capital Trust and our
guarantee with respect to the TIDES remains an obligation of ours. EnPro,
Coltec and Coltec Capital Trust have agreed to indemnify us for any costs and
liabilities arising under or related to the TIDES after the spin-off.

In
addition to our guarantee of the TIDES, at March 31, 2003, we have an
outstanding contingent liability for guarantees of debt and lease payments of $4.1
million, letters of credit of $36.9 million, residual value of leases of $51.8
million and executive loans to purchase our stock of $9.3 million.

Commercial Airline Customers

The downturn in the commercial air transport market, the
terrorist attacks on September 11, 2001, the military conflict in Iraq and the
outbreak of Severe Acute Respiratory Syndrome (SARS) have adversely affected
the financial condition of many of our commercial airline customers. Many of
these customers have requested extended payment terms for future shipments
and/or reduced pricing. We review and evaluate these requests on a case-by-case
basis. We perform ongoing credit evaluations on the financial condition of all
of our customers and maintain reserves for uncollectible accounts receivable
based upon expected collectibility. Although we believe our reserves are
adequate, we are not able to predict the future financial stability of these
customers. Any material change in the financial status of any one or group of
customers could have a material adverse effect on our financial condition,
results of operations or cash flows. The extent to which extended payment terms
are granted to customers may negatively affect future cash flow.

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Certain Contracts and Investment

Super 27 Program

Our aerostructures business unit, included in the Engine Systems segment,
includes a business to re-engine 727 aircraft to meet sound attenuation
requirements and improve their fuel efficiency (Super 27 program). At December
31, 2002, we had an investment in the Super 27 program of $105.9 million
consisting of $44.7 of inventory and $61.2 million of notes receivable. The
inventory included three Super 27 aircraft, seven nacelle kits and other spare
parts.

In March 2003, we repossessed four Super 27 aircraft from a receivable
obligor who was in financial difficulty and also received a revised cash flow
forecast indicating a significant decline in the financial strength of another
receivable obligor. In addition, the further deterioration in the commercial
airline market due to the military conflict in Iraq and SARS has made available
more aircraft that compete with or are newer than the Super 27 aircraft.
Because of these events, we believe that our ability to recover the recorded
values of our inventory and notes receivable has been significantly affected.
Based on an independent appraisal and our assessment of current market
conditions, we wrote down the carrying value of our inventory to equal the
estimated market value of $12.2 million. We also wrote-off $0.4 million of
related trade receivables and $46.1 million of notes receivable from a
receivable obligor. Our remaining notes receivable of $8.5 million represents
the present value of expected future cash flows related to those receivables.
The value assigned to the four repossessed Super 27 aircraft of $6.4
million represents our assessment of the current market value of
inventory based upon the
appraisal.

Collection of these receivables and inventory may be negatively affected
if the overall deterioration in the commercial aerospace market and the
market for Super 27 program aircraft continues. Because of these conditions,
we will continue to assess the value of these assets and their ultimate
recovery.

B717-200 Program

Our aerostructures business also has a contract with Boeing on the
B717-200 program that is subject to certain risks and uncertainties. Recovery
of preproduction inventory balances of $30.4 million as of March 31, 2003 is
subject to Boeings future production rate and delivery schedule as well as our
future cost structure and learning curve assumptions.

Cordiem

During 2000, we invested as a minority shareholder in Cordiem LLC
(Cordiem). Cordiem was an aerospace e-business venture between suppliers and
airlines whose purpose was to utilize Internet-based solutions to lower costs
of business transactions and inventory, to expand product awareness and
availability to more customers and to improve information flow between
participants. As of December 31, 2002, our investment in Cordiem, including
internal-use software, was $12.9 million. Cordiem ceased operations in the
first quarter 2003. As a result, we recorded a pre-tax, non-cash charge of
approximately $11.7 million to write-off our equity investment in Cordiem.

Tax Litigation

In 2000, we made a $113.7 million payment to the IRS for an income tax
assessment and the related accrued interest. We are currently pursuing our
judicial remedies for a refund of this payment. A reasonable estimation of our
potential refund cannot be made at this time; accordingly, no receivable has
been recorded.

Also in 2000, the Internal Revenue Service issued a statutory notice of
deficiency asserting that Rohr, Inc., our subsidiary, was liable for $85.3
million of additional income taxes. In 2001, Rohr filed a petition in the US
Tax Court opposing the proposed assessment.

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New Accounting Standards

During April 2003, the Financial Accounting Standard Board issued
Statement No. 149 Amendment of Statement 133 on Derivative Instruments and
Hedging Activities. The Statement amends and clarifies accounting for
derivatives, including certain derivatives instruments embedded in other
contracts, and for hedging activities under Statement No. 133. Statement 149
is effective for contracts entered into or modified after June 30, 2003, except
for certain circumstances, and for hedging relationships designated after June
30, 2003. The guidance should be applied prospectively. We are currently
assessing the effect of Statement 149, but do not expect the Statement to have
a material effect on our consolidated financial condition or results of
operation.

Critical Accounting Policies

Our discussion and analysis of our financial condition and results of
operations are based upon our unaudited condensed consolidated financial
statements, which have been prepared in accordance with accounting principles
generally accepted in the United States. The preparation of these financial
statements requires us to make estimates and judgments that affect the reported
amounts of assets, liabilities, revenues and expenses, and related disclosure
of contingent assets and liabilities. On an ongoing basis, we evaluate our
estimates, including those related to customer programs and incentives, product
returns, bad debts, inventories, investments, intangible assets, income taxes,
financing operations, warranty obligations, excess component order cancellation
costs, restructuring, long-term service contracts, pensions and other
postretirement benefits, and contingencies and litigation. We base our
estimates on historical experience and on various other assumptions that are
believed to be reasonable under the circumstances, the results of which form
the basis for making judgments about the carrying values of assets and
liabilities that are not readily apparent from other sources. Actual results
may differ from these estimates under different assumptions or conditions.

We believe the following critical accounting policies affect our more
significant judgments and estimates used in the preparation of our consolidated
financial statements.

Revenue Recognition

For revenues not recognized under the contract method of accounting, we
recognize revenues from the sale of products at the point of passage of title,
which is at the time of shipment. Revenues earned from providing maintenance
service are recognized when the service is complete.

Contract Accounting-Percentage of Completion

Revenue Recognition

We also have sales under long-term, fixed-priced contracts, many of which
contain escalation clauses, requiring delivery of products over several years
and frequently providing the buyer with option pricing on follow-on orders.
Sales and profits on each contract are recognized in accordance with the
percentage-of-completion method of accounting, using the units-of-delivery
method. We follow the guidelines of Statement of Position 81-1 (SOP 81-1),
Accounting for Performance of Construction-Type and Certain Production-Type
Contracts (the contract method of accounting) except that our contract
accounting policies differ from the recommendations of SOP 81-1 in that
revisions of estimated profits on contracts are included in earnings under the
reallocation method rather than the cumulative catch-up method. Under the
reallocation method, the impact of revisions in estimates related to units
shipped to date is recognized ratably over the remaining life of the contract
while under the cumulative catch-up method such impact would be recognized
immediately. During 2003, we are reviewing and assessing possible changes to
our contract accounting methods, including a change to the cumulative catch-up
method from the reallocation method for accounting for changes in contract
estimates.

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Profit is estimated based on the difference between total estimated
revenue and total estimated cost of a contract, excluding that reported in
prior periods, and is recognized evenly in the current and future periods as a
uniform percentage of sales value on all remaining units to be delivered.
Current revenue does not anticipate higher or lower future prices, but includes
units delivered at actual sales prices. Cost includes the estimated cost of the
preproduction effort, primarily tooling and design, plus the estimated cost of
manufacturing a specified number of production units. The specified number of
production units used to establish the profit margin is predicated upon
contractual terms adjusted for market forecasts and does not exceed the lesser
of those quantities assumed in original contract pricing or those quantities
which we now expect to deliver in the timeframe/periods assumed in the original
contract pricing. Our policies only allow the estimated number of production
units to be delivered to exceed the quantity assumed within the original
contract pricing when we receive firm orders for additional units. The
timeframe/periods assumed in the original contract pricing is generally equal
to the period specified in the contract. If the contract is a life of program
contract, then such period is equal to the time period used in the original
pricing model which generally equals the time period required to recover our
preproduction costs. Option quantities are combined with prior orders when
follow-on orders are released.

The contract method of accounting involves the use of various estimating
techniques to project costs at completion and includes estimates of recoveries
asserted against the customer for changes in specifications. These estimates
involve various assumptions and projections relative to the outcome of future
events, including the quantity and timing of product deliveries. Also included
are assumptions relative to future labor performance and rates, and projections
relative to material and overhead costs. These assumptions involve various
levels of expected performance improvements. We reevaluate our contract
estimates periodically and reflect changes in estimates in the current and
future periods under the reallocation method.

Included in sales are amounts arising from contract terms that provide for
invoicing a portion of the contract price at a date after delivery. Also
included are negotiated values for units delivered and anticipated price
adjustments for contract changes, claims, escalation and estimated earnings in
excess of billing provisions, resulting from the percentage-of-completion
method of accounting. Certain contract costs are estimated based on the
learning curve concept discussed below.

Inventory

Inventoried costs on long-term contracts include certain preproduction
costs, consisting primarily of tooling and design costs and production costs,
including applicable overhead. The costs attributed to units delivered under
long-term commercial contracts are based on the estimated average cost of all
units expected to be produced and are determined under the learning curve
concept, which anticipates a predictable decrease in unit costs as tasks and
production techniques become more efficient through repetition. This usually
results in an increase in inventory (referred to as excess-over average)
during the early years of a contract.

If in-process inventory plus estimated costs to complete a specific
contract exceeds the anticipated remaining sales value of such contract, such
excess is charged to current earnings, thus reducing inventory to estimated
realizable value.

Identifiable Intangible Assets

Identifiable intangible assets are recorded at cost, or when acquired as
part of a business combination, at estimated fair value. These assets include
patents and other technology agreements, sourcing contracts, trademarks,
licenses, customer relationships and non-compete agreements. Intangible assets
are generally amortized using the straight-line method over estimated useful
lives of 5 to 25 years for all acquisitions completed prior to June 30, 2001.
For acquisitions completed subsequent to June 30, 2001, identifiable intangible
assets are amortized over their useful life using undiscounted cash flows, a
method that reflects the pattern in which the economic benefits of the
intangible assets are consumed.

35



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##### 



Impairments of identifiable intangible assets are recognized when events
or changes in circumstances indicate that the carrying amount of the asset, or
related groups of assets, may not be recoverable and our estimate of
undiscounted cash flows over the assets remaining useful life are less than the
carrying value of the assets. The determination of undiscounted cash flow is
based on the segments plans. The revenue growth is based upon aircraft build
projections from aircraft manufacturers and widely available external
publications. The profit margin assumption is based upon the current cost
structure and anticipated cost reductions. Measurement of the amount of
impairment may be based upon an appraisal, market values of similar assets or
estimated discounted future cash flows resulting from the use and ultimate
disposition of the asset.

Sales Incentives

We offer sales incentives to certain commercial customers in connection
with sales contracts. These incentives may consist of up-front cash payments,
merchandise credits and/or free products. The cost of these incentives is
recognized in the period incurred unless it is specifically guaranteed of
recovery within the contract by the customer. If the contract contains such a
guarantee, then the cost of the sales incentive is capitalized and amortized
over the contract period.

Entry Fees-Investment in Risk and Revenue Sharing Programs

Some aerospace customers may negotiate an entry fee, representing an
up-front cash investment in a new program. The payment effectively demonstrates
our commitment to participate in new product programs and is part of the
exclusive supply agreement. In return, we receive a percentage of the product
sales in the supply periods after flight certification. Entry fees differ from
sales incentives as entry fees are an investment in a program which will
generate a benefit from the total sales of the program, not just sales from our
products while sales incentives are recovered during the contract period of our
products by a specific guarantee of recovery by the customer. The entry fees
are recognized as Other Assets and amortized on a straight-line basis over the
programs useful life following certification, which approximates 10 to 20
years. The value of the investment is evaluated for impairment based on the
criteria in Identifiable Intangible Assets above. The estimated lives are
reviewed periodically based upon the expected program lives as communicated by
the customer.

Employee Benefits

Assumptions used in determining the projected benefit obligations and the
fair value of plan assets for our pension and postretirement benefits other
than pensions plans are evaluated by us with consultation with an outside
actuary. Changes in assumptions are based upon our historical data, such as the
rate of compensation increase and the long-term rate of return on plan assets.
Assumptions, including the discount rate, the long-term rate of return on plan
assets and the health care cost projections are evaluated and updated annually.

36



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##### 



Forward-Looking Information is Subject to Risk and Uncertainty

Certain statements made in this document are forward-looking statements
within the meaning of the Private Securities Litigation Reform Act of 1995
regarding our future plans, objectives, and expected performance. Specifically,
statements that are not historical facts, including statements accompanied by
words such as believe, expect, anticipate, intend, estimate or
plan, are intended to identify forward-looking statements and convey the
uncertainty of future events or outcomes. We caution readers that any such
forward-looking statements are based on assumptions that we believe are
reasonable, but are subject to a wide range of risks, and actual results may
differ materially.

Important factors that could cause actual results to differ include, but
are not limited to:



| |  |  | the extent to which we are successful in integrating Aeronautical
Systems and achieving expected operating synergies;                                                                                                                                                                                                                                                                                 
| | - |  | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|
| |  |  | the nature, extent and timing of our proposed restructuring and
consolidation actions and the extent to which we will be able to achieve
saving from these actions;                                                                                                                                                                                                                                   
|
| |  |  | the possibility of additional restructuring and consolidation actions
beyond those previously announced by us;                                                                                                                                                                                                                                                                                        
|
| |  |  | global demand for aircraft spare parts and aftermarket services;                                                                                                                                                                                                                                                                                                                                      
|
| |  |  | threats associated with and efforts to combat terrorism, including the current military conflict in Iraq;                                                                                                                                                                                                                                                                                             
|
| |  |  | the impact of Severe Acute Respiratory Syndrome (SARS) on global travel;                                                                                                                                                                                                                                                                                                                              
|
| |  |  | the timing related to restoring consumer confidence in air travel;                                                                                                                                                                                                                                                                                                                                    
|
| |  |  | the health of the commercial aerospace industry, including the impact
of bankruptcies in the airline industry;                                                                                                                                                                                                                                                                                        
|
| |  |  | demand for and market acceptance of new and existing products, such
as the Airbus A380 and the Joint Strike Fighter;                                                                                                                                                                                                                                                                                  
|
| |  |  | potential cancellation of orders by customers;                                                                                                                                                                                                                                                                                                                                                        
|
| |  |  | successful development of products and advanced technologies;                                                                                                                                                                                                                                                                                                                                         
|
| |  |  | the effect of changes in accounting policies, including possible
changes to our contract accounting methods;                                                                                                                                                                                                                                                                                          
|
| |  |  | competitive product and pricing pressures;                                                                                                                                                                                                                                                                                                                                                            
|
| |  |  | possible assertion of claims against us on the theory that we, as the
former corporate parent of Coltec Industries Inc., bear some of the
responsibility for the asbestos-related liabilities of Coltec and its
subsidiaries, or that Coltecs dividend of its aerospace business to us
prior to the EnPro spin-off was made at a time when Coltec was insolvent
or caused Coltec to become insolvent;
|
| |  |  | domestic and foreign government spending, budgetary and trade
policies;                                                                                                                                                                                                                                                                                                                               
|
| |  |  | economic and political changes in international markets where we
compete, such as changes in currency exchange rates, inflation,
deflation, recession and other external factors over which we have no control; and                                                                                                                                                                                   
|
| |  |  | the outcome of contingencies (including completion of acquisitions,
divestitures, litigation and environmental remediation efforts).                                                                                                                                                                                                                                                                  

We caution you not to place undue reliance on the forward-looking
statements contained in this document, which speak only as of the date on which
such statements were made. We undertake no obligation to release publicly any
revisions to these forward-looking statements to reflect events or
circumstances after the date on which such statements were made or to reflect
the occurrence of unanticipated events.

37



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##### 



Item 3. Quantitative and Qualitative Disclosures About Market Risk

We are exposed to certain market risks as part of our ongoing business
operations, including risks from changes in interest rates and foreign currency
exchange rates that could impact our financial condition, results of operations
and cash flows. We manage our exposure to these and other market risks through
regular operating and financing activities, and on a limited basis, through the
use of derivative financial instruments. We intend to use such derivative
financial instruments as risk management tools and not for speculative
investment purposes. Our discussion of Market Risk in our 2002 Annual Report on
Form 10-K provides more discussion as to the types of instruments used to
manage risk.

Item 4. Controls and Procedures



|(a) |  | Evaluation of Disclosure Controls and Procedures.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          
|--- |  | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|   
|    |  | We maintain disclosure controls and procedures that are designed to
ensure that information required to be disclosed in our Exchange Act
reports is recorded, processed, summarized and reported within the
time periods specified in the SECs rules and forms, and that such
information is accumulated and communicated to our management,
including our President and Chief Executive Officer and Executive Vice
President and Chief Financial Officer, as appropriate, to allow timely
decisions regarding required disclosure. Management necessarily
applied its judgment in assessing the costs and benefits of such
controls and procedures, which, by their nature, can provide only
reasonable assurance regarding managements control objectives.                                                                                                                                                                                                                                                                                                                                                                                                                                                             
|   
|    |  | On October 1, 2002, we completed our acquisition of TRW Inc.s
Aeronautical Systems businesses for approximately $1.5 billion in
cash. At the time of the acquisition, these businesses employed
approximately 6,200 employees in 22 facilities in nine countries,
including manufacturing and service operations in the United Kingdom,
France, Germany, Canada, the United States and several Asia/Pacific
countries thus adding a significant level of complexity and diversity
to our portfolio. We are in the process of integrating these
businesses into Goodrich from both an operational as well as a
financial reporting and control perspective. In order to ensure the
effectiveness of our disclosure controls and procedures during this
integration period, we have devoted substantial additional internal
and external resources to verify the information being reported by
these businesses. As a result of this process, we have concluded that
while additional enhancements to certain reporting processes,
procedures and systems are expected to be made in the future, the
disclosure controls and procedures of Aeronautical Systems were
effective as of the Evaluation Date (as defined below).
|   
|    |  | We have carried out an evaluation, under the supervision and with the
participation of our management, including our President and Chief
Executive Officer and Executive Vice President and Chief Financial
Officer, of the effectiveness of the design and operation of our
disclosure controls and procedures as of a date within 90 days prior
to the filing date of this Quarterly Report (the Evaluation Date).
Based upon that evaluation, the President and Chief Executive Officer
and Executive Vice President and Chief Financial Officer concluded
that our disclosure controls and procedures were effective as of the
Evaluation Date.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      
|   
|(b) |  | Changes in Internal Controls.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              
|   
|    |  | There were no significant changes in our internal controls or in other
factors that could significantly affect these controls subsequent to
the Evaluation Date.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           

38



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PART II. OTHER INFORMATION

Item 1. Legal Proceedings

We and certain of our subsidiaries are defendants in various claims,
lawsuits and administrative proceedings. In addition, we have been notified
that we are among potentially responsible parties under federal environmental
laws, or similar state laws, relative to the cost of investigating and in some
cases remediating contamination by hazardous materials at several sites. See
Note P to the accompanying unaudited condensed consolidated financial
statements, which is incorporated herein by reference.

Item 6. Exhibits and Reports on Form 8-K



|(a) |  | Exhibits.
|--- |  | ---------

| |  |              |  |                                                                                                                                                                                                                         
| |  | ------------ |  | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | Exhibit 3.1  |  | Restated Certificate
of Incorporation of Goodrich Corporation, as amended, filed as
Exhibit 4(A) to Goodrich Corporations Registration Statement on
Form S-3 (File No. 333-98165), is incorporated herein by
reference.
| |  |              |  |                                                                                                                                                                                                                         
| |  | Exhibit 3.2  |  | By-Laws of Goodrich
Corporation, as amended, filed as Exhibit 4(B) to Goodrich
Corporations Registration Statement on Form S-3 (File
No. 333-98165), is incorporated herein by reference.                              
| |  |              |  |                                                                                                                                                                                                                         
| |  | Exhibit 15   |  | Letter Re: Unaudited Interim Financial Information                                                                                                                                                                      
| |  |              |  |                                                                                                                                                                                                                         
| |  | Exhibit 99.1 |  | Certification Pursuant to 18 U.S.C. Section 1350, as
Adopted Pursuant to Section 906 of the
Sarbanes-Oxley Act of 2002.                                                                                                 



|(b) |  | Reports on Form 8-K.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     
|--- |  | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|   
|    |  | Current Report on Form 8-K furnished February 7, 2003 (Item 9) (relating
to the announcement of the Companys financial results for the fourth
quarter and full year 2002 and its outlook for 2003).                                                                                                                                                                                                                                                                                                     
|   
|    |  | Current Report on Form 8-K furnished March 11, 2003 (Item 9) (relating to
(i) the Companys announcement that it reached an agreement to sell its
Noveon International, Inc. payment-in-kind notes and expected to record a
write-off of its investment in Cordiem LLC, and updating the Companys
outlook for 2003, and (ii) the March 11, 2003 presentation by the
Companys President and Chief Operating Officer at the Salomon Smith
Barney 16th Annual Global Industrial Manufacturing Conference).

39



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##### 



SIGNATURE

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 thereunto duly authorized.

|             |  |                     
|------------ |  | --------------------
|May 14, 2003 |  | GOODRICH CORPORATION

| |                                                                   
| | ------------------------------------------------------------------
| | /s/ ULRICH SCHMIDT                                                
| |                                                                   
| | Ulrich SchmidtExecutive Vice President and
Chief Financial Officer

| |                                                                           
| | --------------------------------------------------------------------------
| | /s/ ROBERT D. KONEY, JR                                                   
| |                                                                           
| | Robert D. Koney, Jr.Vice President & Controller
(Chief Accounting Officer)

40



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##### 



CERTIFICATIONS

I, Marshall O. Larsen, President and Chief Executive Officer of Goodrich
Corporation, certify that:

1.     I have reviewed this quarterly report on Form 10-Q of Goodrich
Corporation;

2.     Based on my knowledge, this quarterly report does not contain any
untrue statement of a material fact or omit to state a material fact
necessary to make the statements made, in light of the circumstances under
which such statements were made, not misleading with respect to the period
covered by this quarterly report;

3.     Based on my knowledge, the financial statements, and other financial
information included in this quarterly report, fairly present in all material
respects the financial condition, results of operations and cash flows of the
registrant as of, and for, the periods presented in this quarterly report;

4.     The registrants other certifying officers and I are responsible for
establishing and maintaining disclosure controls and procedures (as defined
in Exchange Act Rules 13a-14 and 15d-14) for the registrant and we have:



| |                                                                                                                                                                                                                                                                                                   
| | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | a) designed such disclosure controls and procedures to ensure that
material information relating to the registrant, including its
consolidated subsidiaries, is made known to us by others within those
entities, particularly during the period in which this quarterly report is
being prepared;
|
| | b) evaluated the effectiveness of the registrants disclosure
controls and procedures as of a date within 90 days prior to the filing
date of this quarterly report (the Evaluation Date); and                                                                                                  
|
| | c) presented in this quarterly report our conclusions about the
effectiveness of the disclosure controls and procedures based on our
evaluation as of the Evaluation Date;                                                                                                                        

5.     The registrants other certifying officers and I have disclosed,
based on our most recent evaluation, to the registrants auditors and the
audit committee of registrants board of directors (or persons performing the
equivalent function):



| |                                                                                                                                                                                                                                                                                                  
| | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | a) all significant deficiencies in the design or operation of
internal controls which could adversely affect the registrants ability to
record, process, summarize and report financial data and have identified
for the registrants auditors any material weaknesses in internal
controls; and
|
| | b) any fraud, whether or not material, that involves management or
other employees who have a significant role in the registrants internal
controls; and                                                                                                                                        

6.     The registrants other certifying officers and I have indicated in
this quarterly report whether or not there were significant changes in
internal controls or in other factors that could significantly affect
internal controls subsequent to the date of our most recent evaluation,
including any corrective actions with regard to significant deficiencies and
material weaknesses.

Date: May 14, 2003

| |                                                        
| | -------------------------------------------------------
| | /s/ MARSHALL O. LARSEN                                 
| |                                                        
| | Marshall O. LarsenPresident and Chief Executive Officer

41



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##### 



I, Ulrich Schmidt, Executive Vice President and Chief Financial Officer of
Goodrich Corporation, certify that:

1.     I have reviewed this quarterly report on Form 10-Q of Goodrich
Corporation;

2.     Based on my knowledge, this quarterly report does not contain any
untrue statement of a material fact or omit to state a material fact
necessary to make the statements made, in light of the circumstances under
which such statements were made, not misleading with respect to the period
covered by this quarterly report;

3.     Based on my knowledge, the financial statements, and other financial
information included in this quarterly report, fairly present in all material
respects the financial condition, results of operations and cash flows of the
registrant as of, and for, the periods presented in this quarterly report;

4.     The registrants other certifying officers and I are responsible for
establishing and maintaining disclosure controls and procedures (as defined
in Exchange Act Rules 13a-14 and 15d-14) for the registrant and we have:



| |                                                                                                                                                                                                                                                                                                   
| | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | a) designed such disclosure controls and procedures to ensure that
material information relating to the registrant, including its
consolidated subsidiaries, is made known to us by others within those
entities, particularly during the period in which this quarterly report is
being prepared;
|
| | b) evaluated the effectiveness of the registrants disclosure
controls and procedures as of a date within 90 days prior to the filing
date of this quarterly report (the Evaluation Date); and                                                                                                  
|
| | c) presented in this quarterly report our conclusions about the
effectiveness of the disclosure controls and procedures based on our
evaluation as of the Evaluation Date;                                                                                                                        

5.     The registrants other certifying officers and I have disclosed,
based on our most recent evaluation, to the registrants auditors and the
audit committee of registrants board of directors (or persons performing the
equivalent function):



| |                                                                                                                                                                                                                                                                                                  
| | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | a) all significant deficiencies in the design or operation of
internal controls which could adversely affect the registrants ability to
record, process, summarize and report financial data and have identified
for the registrants auditors any material weaknesses in internal
controls; and
|
| | b) any fraud, whether or not material, that involves management or
other employees who have a significant role in the registrants internal
controls; and                                                                                                                                        

6.     The registrants other certifying officers and I have indicated in
this quarterly report whether or not there were significant changes in
internal controls or in other factors that could significantly affect
internal controls subsequent to the date of our most recent evaluation,
including any corrective actions with regard to significant deficiencies and
material weaknesses.

Date: May 14, 2003

| |                                                                   
| | ------------------------------------------------------------------
| | /s/ ULRICH SCHMIDT                                                
| |                                                                   
| | Ulrich SchmidtExecutive Vice President and
Chief Financial Officer

42



---



##### 



EXHIBIT INDEX

|             |  |                                                                                                                                                                                                                         
|------------ |  | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|Exhibit 3.1  |  | Restated Certificate
of Incorporation of Goodrich Corporation, as amended, filed as
Exhibit 4(A) to Goodrich Corporations Registration Statement on
Form S-3 (File No. 333-98165), is incorporated herein by
reference.
|             |  |                                                                                                                                                                                                                         
|Exhibit 3.2  |  | By-Laws of Goodrich
Corporation, as amended, filed as Exhibit 4(B) to Goodrich
Corporations Registration Statement on Form S-3 (File
No. 333-98165), is incorporated herein by reference.                              
|             |  |                                                                                                                                                                                                                         
|Exhibit 15   |  | Letter Re: Unaudited Interim Financial Information                                                                                                                                                                      
|             |  |                                                                                                                                                                                                                         
|Exhibit 99.1 |  | Certification Pursuant to 18 U.S.C. Section 1350, as Adopted
Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.