SOURCE: Moog Inc.

Moog Inc.

November 02, 2012 07:55 ET

Moog Announces Fourth Quarter EPS Up 10% and Fiscal 2012 EPS Up 13%

EAST AURORA, NY--(Marketwire - Nov 2, 2012) - Moog Inc. (NYSE: MOG.A) (NYSE: MOG.B) announced today fiscal year 2012 sales of $2.47 billion, up 6%. Net earnings of $152 million were 12% higher and earnings per share of $3.33 were 13% higher compared to last year. For the fourth quarter, sales of $633 million were up 2%. Net earnings were $42 million, up 10%, and earnings per share of $.91 were 10% higher than last year.

Aircraft sales for the year were $963 million, up 13%. Commercial aircraft sales for the year of $388 million were up 21%. OEM sales to Boeing increased 19%, sales to business jet manufacturers were 35% higher and commercial aftermarket revenues of $117 million were up 14% over a year ago. Total military sales were $576 million, up 9%, led by strong foreign military sales, F-35 production and aftermarket sales. Military aftermarket sales were a record $214 million.

In the fourth quarter, Aircraft sales of $254 million increased 11% from the same quarter last year. Commercial revenues increased 28% as production rates for the Boeing 787 aircraft continued to ramp up. Military aircraft sales were up marginally on strong aftermarket activity.

Space and Defense segment sales of $359 million for the year were 1% higher than a year ago. Sales of controls for launch vehicles and NASA increased 22%, in part due to new common thrust vector controls for the Delta IV and Atlas launch vehicles. Sales of satellite controls were 34% higher due to recent acquisitions, while security product sales were lower as sales for the Driver's Vision Enhancer program wound down. For the fourth quarter, Space and Defense sales mirrored the year's trend.

The Industrial Systems segment had revenues for the year of $634 million, a slight increase over last year. Sales for simulation and test equipment were very strong, up 22%. Non-renewable energy products were 20% higher. Industrial automation sales were softer, down 5%, due to currency effects. Wind energy sales were 14% lower than last year as demand in China continued to wane. Industrial Systems sales in the fourth quarter were down 14% on softer industrial automation sales, reduced demand for wind energy products and a stronger U.S. dollar.

Components Group sales were $374 million for the year, up 6%. Growth in marine, medical and industrial markets more than offset slightly lower aircraft sales. Sales for the quarter were a record $100 million. The quarter results reflected higher marine sales, in part due to the recent Tritech acquisition.

The Medical Devices segment generated sales of $140 million for the year, down 2% from the year previous on lower sensor and surgical handpiece sales. For the quarter, sales in Medical Devices of $36 million were down 3% from a year ago.

Year-end backlog of $1.3 billion was level with the prior year.

The Company also updated its projections for fiscal 2013. Given the uncertain global industrial economic outlook, the Company's forecast includes sales of $2.65 billion with a range of +/- $25 million. Net earnings are forecast between $160 million and $170 million and earnings per share between $3.50 and $3.70. The midpoint, $3.60, represents an 8% increase in EPS.

"Over the last three years, sales have increased 34% and earnings per share are up 68%," said John Scannell, CEO. "We have delivered this improvement despite the reduced military spending and the tepid industrial recovery. We believe our diversity across markets and geographies, as well as our excellent position on the most important military and commercial programs has been the key to this strong performance and we're confident these factors will continue to benefit us in 2013."

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, wind energy, marine and medical equipment. Additional information about the company can be found at www.moog.com.

Cautionary Statement

Information included or incorporated by reference in this report 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," "approximate," "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:

  • the markets we serve are cyclical and sensitive to domestic and foreign economic conditions and events, which may cause our operating results to fluctuate
  • we operate in highly competitive markets with competitors who may have greater resources than we possess
  • we depend heavily on government contracts that may not be fully funded or may be terminated, and the failure to receive funding or the termination of one or more of these contracts could reduce our sales and increase our costs
  • we make estimates in accounting for long-term contracts, and changes in these estimates may have significant impacts on our earnings
  • we enter into fixed-price contracts, which could subject us to losses if we have cost overruns
  • if our subcontractors or suppliers fail to perform their contractual obligations, our prime contract performance and our ability to obtain future business could be materially and adversely impacted
  • contracting on government programs is subject to significant regulation, including rules related to bidding, billing and accounting kickbacks and false claims, and any non-compliance could subject us to fines and penalties or possible debarment
  • the loss of Boeing as a customer or a significant reduction in sales to Boeing could adversely impact our operating results
  • our new product research and development efforts may not be successful which could reduce our sales and earnings
  • our inability to adequately enforce and protect our intellectual property or defend against assertions of infringement could prevent or restrict our ability to compete
  • our business operations may be adversely affected by information systems interruptions or infringements
  • our indebtedness and restrictive covenants under our credit facilities could limit our operational and financial flexibility
  • significant changes in discount rates, rates of return on pension assets, mortality tables and other factors could affect our earnings, equity and pension funding requirements
  • a write-off of all or part of our goodwill or other intangible assets could adversely affect our operating results and net worth
  • our sales and earnings growth may be affected if we cannot identify, acquire or integrate strategic acquisitions
  • our operations in foreign countries expose us to political and currency risks and adverse changes in local legal and regulatory environments
  • unforeseen exposure to additional tax income liabilities may affect our operating results
  • government regulations could limit our ability to sell our products outside the United States and otherwise adversely affect our business
  • the failure or misuse of our products may damage our reputation, necessitate a product recall or result in claims against us that exceed our insurance coverage, thereby requiring us to pay significant damages
  • future terror attacks, natural disasters or other catastrophic events beyond our control could negatively impact our business
  • our operations are subject to environmental laws, and complying with those laws may cause us to incur significant costs
  • we are involved in various legal proceedings, the outcome of which may be unfavorable to us

These factors 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.

   
   
MoogInc.  
CONSOLIDATED STATEMENTS OF EARNINGS  
(dollars in thousands, except per share data)  
                   
    Three Months Ended   Twelve Months Ended  
  September 29,  October 1,   September 29,  October 1,  
    2012   2011   2012   2011  
                   
                           
Net sales   $ 632,727   $ 619,061   $ 2,469,536   $ 2,330,680  
Cost of sales     440,406     440,269     1,724,232     1,651,191  
Gross profit     192,321     178,792     745,304     679,489  
Research and development     32,118     29,033     116,403     106,385  
Selling, general and administrative     97,888     91,719     385,051     354,727  
Interest     8,564     8,654     34,312     35,666  
Other     1,007     333     697     (1,074 )
Earnings before income taxes     52,744     49,053     208,841     183,785  
Income taxes     10,947     10,892     56,379     47,764  
Net earnings   $ 41,797   $ 38,161   $ 152,462   $ 136,021  
                           
Net earnings per share                          
  Basic   $ 0.92   $ 0.84   $ 3.37   $ 2.99  
  Diluted   $ 0.91   $ 0.83   $ 3.33   $ 2.95  
Average common shares outstanding                          
  Basic     45,289,341     45,573,714     45,246,960     45,501,806  
  Diluted     45,704,007     46,037,119     45,718,324     46,047,422  
                             
                             
   
   
MoogInc.  
CONSOLIDATED SALES AND OPERATING PROFIT  
(dollars in thousands)  
                         
    Three Months Ended     Twelve Months Ended  
   September 29,    October 1,    September 29,    October 1,  
    2012     2011     2012     2011  
                         
Net Sales                                
  Aircraft Controls   $ 253,733     $ 227,818     $ 963,421     $ 850,490  
  Space and Defense Controls     93,412       92,536       358,755       355,762  
  Industrial Systems     149,742       173,312       633,713       629,312  
  Components     99,956       88,503       374,081       353,142  
  Medical Devices     35,884       36,892       139,566       141,974  
Net sales   $ 632,727     $ 619,061     $ 2,469,536     $ 2,330,680  
                                 
Operating Profit and Margins                                
  Aircraft Controls   $ 29,146     $ 21,478     $ 104,582     $ 83,776  
      11.5 %     9.4 %     10.9 %     9.9 %
  Space and Defense Controls     10,316       11,596       42,854       49,245  
      11.0 %     12.5 %     11.9 %     13.8 %
  Industrial Systems     12,265       18,676       63,243       62,805  
      8.2 %     10.8 %     10.0 %     10.0 %
  Components     16,138       8,930       57,303       50,353  
      16.1 %     10.1 %     15.3 %     14.3 %
  Medical Devices     998       2,079       5,443       241  
      2.8 %     5.6 %     3.9 %     0.2 %
Total operating profit     68,863       62,759       273,425       246,420  
      10.9 %     10.1 %     11.1 %     10.6 %
                                 
Deductions from Operating Profit                                
  Interest expense     8,564       8,654       34,312       35,666  
  Equity-based compensation expense     686       1,033       6,226       6,952  
  Corporate expenses and other     6,869       4,019       24,046       20,017  
Earnings before Income Taxes   $ 52,744     $ 49,053     $ 208,841     $ 183,785  
                                 
                                 
 
 
MoogInc.
CONSOLIDATED BALANCE SHEETS
(dollars in thousands)
         
    September 29,   October 1,
    2012   2011
Cash   $ 148,841   $ 113,679
Receivables     744,551     655,805
Inventories     538,262     502,373
Other current assets     117,254     108,589
  Total current assets     1,548,908     1,380,446
Property, plant and equipment     546,179     503,872
Goodwill and intangible assets     975,049     932,566
Other non-current assets     35,771     26,083
  Total assets   $ 3,105,907   $ 2,842,967
             
             
             
Short-term borrowings   $ 90,774   $ 9,283
Current installments of long-term debt     3,186     1,407
Contract loss reserves     48,428     45,173
Other current liabilities     521,488     490,527
  Total current liabilities     663,876     546,390
Long-term debt     670,662     714,757
Other long-term liabilities     466,579     389,929
  Total liabilities     1,801,117     1,651,076
Shareholders' equity     1,304,790     1,191,891
  Total liabilities and shareholders' equity   $ 3,105,907   $ 2,842,967
             
             

Contact Information

  • Contact
    Ann Marie Luhr
    716-687-4225

    MOOG INC.
    EAST AURORA, NEW YORK 14052
    TEL - 716/652-2000
    FAX - 716/687-4457