EAST AURORA, N.Y.,
July 25 /PRNewswire-FirstCall/ -- Moog Inc.
(NYSE: MOG.A and MOG.B) announced today third quarter earnings of
$31.1
million, or
$.72 per share, an increase of 22% over
$.59 per share a year ago.
On a year-to-date basis, Moog's earnings per share were
$2.02, up 17% from
$1.72 in the year previous.
Sales for the quarter of $497 million were up 23% from $404 million last
year. Sales year-to-date of $1.412 billion were also up 23%.
Aircraft sales in the quarter of $175 million were up 17%. The increase
was all in military aircraft. Sales were up on the F-35 Joint Strike Fighter
and the V-22 Tilt Rotor. Military aftermarket sales at $33 million were up
32% from a year ago.
Commercial aircraft sales in the quarter were almost the same as a year
ago. Increased sales on business jets offset reduced sales on the Boeing
7-series including the 787 and a 6% reduction in aftermarket revenue.
Space and Defense sales of $63 million were up 33%. Growth in the core
business came in the Constellation program. Constellation will develop the
systems to replace the Space Shuttle. The recent QuickSet acquisition
provided strong sales in Homeland Security and in Driver Vision Enhancer
systems for MRAP vehicles. The acquisition of CSA Engineering added $2.4
million in sales in the quarter.
Industrial Segment sales were very strong at $143 million, an increase of
28% from a year ago. Sales were up in almost every major product line with
the biggest increase in the motion simulator business. Sales of electric
motion bases to CAE and Flight Safety generated a 92% increase to a total of
$21 million. Sales were also up in power generation, metal-forming equipment,
gauge controls for steel mills, and plastic-making machinery.
Sales in the Components Segment of $87 million were up 20% from a year
ago. A major part of the increase was equipment supplied to Northrop Grumman
for the Guardian system, a system designed to protect military and commercial
aircraft from shoulder-fired missiles. The biggest percentage increase in
this segment was in the marine market. Sales of $12 million were up 28%. The
Company's products are used by a broad range of customers involved in offshore
oil exploration and production.
The Company's Medical Devices segment had sales of $28 million, up 27%
from a year ago. Most of the increase was in sales of administration sets
that are used in conjunction with the installed base of intravenous and
enteral pumps.
The current backlog of $898 million was up 23% from the same quarter a
year ago.
The Company revised its guidance for the year ending September '08. Sales
are now forecast at $1.887 billion with net earnings of $119 million and
earnings per share of $2.75.
The Company also provided its initial projection for fiscal '09. Sales
are forecasted in the range of $2.095 billion to $2.125 billion, net earnings
in the range of $134 million to $140 million and earnings per share between
$3.08 and $3.20. Growth in EPS would, therefore, range between 12% and 16%.
"Our Company is experiencing remarkable sales growth in every segment",
said R. T. Brady, Chairman and CEO. "A very strong earnings performance in
our Industrial Systems and Components Segments are providing continued
earnings growth while our Aircraft Group is investing heavily in the
development of new airplane programs. Once again, the diversity and balance
in our product portfolio is the key to consistent growth in earnings per
share."
Moog Inc. is a worldwide designer, manufacturer, and integrator of
precision control components and systems. Moog's high-performance systems
control military and commercial aircraft, satellites and space vehicles,
launch vehicles, missiles, automated industrial machinery, marine and medical
equipment. Additional information about the company can be found at
www.moog.com.
Cautionary Statement
Information included herein or incorporated by reference that does not
consist of historical facts, including statements accompanied by or containing
words such as "may," "will," "should," "believes," "expects," "expected,"
"intends," "plans," "projects," "estimates," "predicts," "potential,"
"outlook," "forecast," "anticipates," "presume" and "assume," are forward-
looking statements. Such forward-looking statements are made pursuant to the
safe harbor provisions of the Private Securities Litigation Reform Act of
1995. These statements are not guarantees of future performance and are
subject to several factors, risks and uncertainties, the impact or occurrence
of which could cause actual results to differ materially from the expected
results described in the forward-looking statements. These important factors,
risks and uncertainties include (i) fluctuations in general business cycles
for commercial aircraft, military aircraft, space and defense products,
industrial capital goods and medical devices, (ii) our dependence on
government contracts that may not be fully funded or may be terminated, (iii)
our dependence on certain major customers, such as The Boeing Company and
Lockheed Martin, for a significant percentage of our sales, (iv) the
possibility that the demand for our products may be reduced if we are unable
to adapt to technological change, (v) intense competition which may require us
to lower prices or offer more favorable terms of sale, (vi) our significant
indebtedness which could limit our operational and financial flexibility,
(vii) the possibility that new product and research and development efforts
may not be successful which could reduce our sales and profits, (viii)
increased cash funding requirements for pension plans, which could occur in
future years based on assumptions used for our defined benefit pension plans,
including returns on plan assets and discount rates, (ix) a write-off of all
or part of our goodwill, which could adversely affect our operating results
and net worth and cause us to violate covenants in our bank agreements, (x)
the potential for substantial fines and penalties or suspension or debarment
from future contracts in the event we do not comply with regulations relating
to defense industry contracting, (xi) the potential for cost overruns on
development jobs and fixed price contracts and the risk that actual results
may differ from estimates used in contract accounting, (xii) the possibility
that our subcontractors may fail to perform their contractual obligations,
which may adversely affect our contract performance and our ability to obtain
future business, (xiii) our ability to successfully identify and consummate
acquisitions, and integrate the acquired businesses and the risks associated
with acquisitions, including that the acquired businesses do not perform in
accordance with our expectations, and that we assume unknown liabilities in
connection with the acquired businesses for which we are not indemnified,
(xiv) our dependence on our management team and key personnel, (xv) the
possibility of a catastrophic loss of one or more of our manufacturing
facilities, (xvi) the possibility that future terror attacks, war or other
civil disturbances could negatively impact our business, (xvii) that our
operations in foreign countries could expose us to political risks and adverse
changes in local, legal, tax and regulatory schemes, (xviii) the possibility
that government regulation could limit our ability to sell our products
outside the United States, (xix) product quality or patient safety issues with
respect to our medical devices business that could lead to product recalls,
withdrawal from certain markets, delays in the introduction of new products,
sanctions, litigation, declining sales or actions of regulatory bodies and
government authorities, (xx) the impact of product liability claims related to
our products used in applications where failure can result in significant
property damage, injury or death and in damage to our reputation, (xxi) the
possibility that litigation may result unfavorably to us, (xxii) our ability
to adequately enforce our intellectual property rights and the possibility
that third parties will assert intellectual property rights that prevent or
restrict our ability to manufacture, sell, distribute or use our products or
technology, (xxiii) foreign currency fluctuations in those countries in which
we do business and other risks associated with international operations and
(xxiv) the cost of compliance with environmental laws. The factors identified
above are not exhaustive. New factors, risks and uncertainties may emerge from
time to time that may affect the forward-looking statements made herein. Given
these factors, risks and uncertainties, investors should not place undue
reliance on forward-looking statements as predictive of future results. We
disclaim any obligation to update the forward-looking statements made in this
report.
MOOG INC.
CONSOLIDATED STATEMENTS OF EARNINGS
(dollars in thousands, except per share data)
Three Months Ended Nine Months Ended
June 28, June 30, June 28, June 30,
2008 2007 2008 2007
Net sales $496,575 $403,789 $1,411,820 $1,144,684
Cost of sales 338,084 261,922 956,064 753,646
Gross profit 158,491 141,867 455,756 391,038
Research and
development 30,518 28,299 80,686 76,192
Selling, general
and administrative 75,413 68,566 219,634 186,061
Interest 9,121 8,348 28,056 20,415
Other (729) 909 (1,746) 985
114,323 106,122 326,630 283,653
Earnings before
income taxes 44,168 35,745 129,126 107,385
Income taxes 13,057 10,169 41,712 33,258
Net earnings $31,111 $ 25,576 $87,414 $74,127
Net earnings per share
Basic $ .73 $.60 $2.05 $1.75
Diluted $ .72 $.59 $2.02 $1.72
Average common shares
outstanding
Basic 42,646,335 42,476,094 42,577,639 42,405,088
Diluted 43,248,903 43,225,110 43,249,953 43,114,907
MOOG INC.
CONSOLIDATED SALES AND OPERATING PROFIT
(dollars in thousands)
Three Months Ended Nine Months Ended
June 28, June 30, June 28, June 30,
2008 2007 2008 2007
Net Sales
Aircraft Controls $175,384 $149,801 $496,581 $426,294
Space and Defense
Controls 63,456 47,835 190,889 138,700
Industrial Systems 142,854 111,694 395,763 324,757
Components 87,276 72,764 251,104 210,514
Medical Devices 27,605 21,695 77,483 44,419
Net sales $496,575 $403,789 $1,411,820 $1,144,684
Operating Profit
and Margins
Aircraft Controls $12,187 $15,825 $41,530 $43,705
6.9% 10.6% 8.4% 10.3%
Space and Defense
Controls 7,455 6,163 23,298 18,663
11.7% 12.9% 12.2% 13.5%
Industrial Systems 20,582 15,395 56,759 43,673
14.4% 13.8% 14.3% 13.4%
Components 15,151 10,877 44,571 33,831
17.4% 14.9% 17.8% 16.1%
Medical Devices 2,978 829 6,914 4,112
10.8% 3.8% 8.9% 9.3%
Total operating profit 58,353 49,089 173,072 143,984
11.8% 12.2% 12.3% 12.6%
Deductions from
Operating Profit
Interest expense 9,121 8,348 28,056 20,415
Equity-based
compensation expense 1,384 530 3,694 2,730
Corporate expenses
and other 3,680 4,466 12,196 13,454
Earnings before
Income Taxes $44,168 $35,745 $129,126 $107,385
MOOG INC.
CONSOLIDATED BALANCE SHEETS
(dollars in thousands)
June 28, September 29,
2008 2007
Cash $ 85,092 $83,856
Receivables 523,767 431,978
Inventories 415,963 359,250
Other current assets 72,733 61,767
Total current assets 1,097,555 936,851
Property, plant and equipment 426,014 386,813
Goodwill and intangible assets 645,633 620,349
Other non-current assets 69,584 62,166
Total assets $2,238,786 $2,006,179
Notes payable $4,683 $3,354
Current installments of long-term debt 1,967 2,537
Contract loss reserves 16,844 12,362
Other current liabilities 357,926 301,975
Total current liabilities 381,420 320,228
Long-term debt 682,348 611,633
Other long-term liabilities 212,205 197,106
Total liabilities 1,275,973 1,128,967
Shareholders' equity 962,813 877,212
Total liabilities and
shareholders' equity $2,238,786 $2,006,179
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