The company reported its second quarter earnings per diluted share of $0.74, down from last year's $0.91 per diluted share, but two cents above First Call estimates.

Excluding special gains related to sale of a business and gain on an issue of stock of a subsidiary, net income per share would have been 55 cents a diluted share in the 1997 second quarter.

Sales in the 1998 second quarter were $1.0 billion, compared with $847 million in the second quarter a year ago.

The company's stock ended 1-5/8 points lower at 45-5/8 in New York Stock Exchange trading.

A spokesman for the company said it does not comment on market activity in its stock.

Paul Nesbitt, an analyst at JSA Research Inc, said "the stock is down but it shouldn't be. The numbers were above theconsensus."

He said while there was weakness in the chemicals area, the company was doing well in Aerospace. The company said it sees slowing revenue growth for its performance materials segment in Asia and Europe, which includes sales of materials to pharmaceutical and personal care companies in Europe and Asia.

This is being offset by strong demand throughout its aerospace segment, the company said in a statement. The company's aerospace segment achieved a 24 per cent increase in operating income during the second quarter, compared with results a year ago.

The company said its aerospace businesses continued to benefit from strong after market demand and the upturn in commercial aircraft production. A company spokesman said part of the optimism for full year results is due to the consolidation of Freedom Chemical Co. which was acquired by BF Goodrich in late March.

Sales and operating income in the 1998 second quarter include results from Freedom, which is the largest chemical acquisition in thecompany's history.The company has identified about 150 positions, about 14 per cent of the original freedom organisation, that will be eliminated during the next six to 12 months.

BFGoodrich provides aircraft systems and services and manufactures performance materials that are sold to customers worldwide and used in consumer and industrial products.