SOURCE: Moog Inc.

Moog Inc.

April 26, 2013 07:50 ET

Moog Reports 4% Increase in Earnings per Share

EAST AURORA, NY--(Marketwired - Apr 26, 2013) -  Moog Inc. (NYSE: MOG.A) (NYSE: MOG.B) today announced second quarter earnings of $36.5 million and earnings per share of $.80, a 4% increase over last year. Total sales of $643 million were up $18 million, or 3%, from a year ago. 

Total Aircraft Controls sales in the quarter were $259 million, up $22 million from last year, a 10% improvement. The Company's commercial aircraft sales were $114 million, 22% higher, including $44 million in sales to Boeing and $14 million in Airbus sales. Revenue on business jet programs increased 17% to $12 million. Commercial aftermarket sales of $30 million were up 2%.

Military aircraft sales were slightly higher at $145 million. Military aftermarket sales were up 12% to a very strong $61 million. The increase offset lower sales on the F-35 Joint Strike Fighter and the V-22 tilt rotor aircraft.

Space and Defense segment sales, at $106 million, were 18% higher than a year ago. Higher sales for space controls, at $62 million, were the result of two recent acquisitions. Sales of products sold into defense markets were down slightly from a year ago.

The Company's Industrial Systems segment had sales of $144 million, a decrease of $24 million. Sales of controls for industrial automation applications were down $9 million while sales of wind energy controls were $14 million lower. Sales of simulation products, including motion bases for flight training simulators, were up $4 million but offset by a reduction in test systems for aerospace and automotive applications.

Sales for the Components Group of $99 million were $3 million higher than last year's second quarter. Increased sales of energy products offset slightly lower defense sales. Medical sales were unchanged. The Components Group recently completed two acquisitions, Tritech and Aspen Motion Technologies.

The Medical Devices segment had sales of $35 million, comparable to a year ago, as higher pump sales offset lower set sales. 

The Company's twelve month backlog is $1.4 billion.

The Company has updated its guidance for the year. Sales for the year will be $2.59 billion. Net earnings are now projected at $156 to $160 million and earnings per share in a range of $3.40 to $3.50. The midpoint of $3.45 is an increase of 4% over the previous fiscal year. 

"Sales, earnings and earnings per share were up this quarter, so the news is generally good," said John Scannell, CEO. "Our industrial markets remain soft so fiscal 2013 looks like it will continue to be a challenging year and we are working to ensure that we meet our operating goals. Our operations should deliver earnings per share in the range of $3.55 to $3.65 but we'll incur a total of $.15 per share in restructuring that reduces the range to $3.40 to $3.50 per share for the year. Sales in the second half of the year will be higher than the first half, and we should see a pickup in earnings in both our Industrial and Space & Defense segments." 

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.

 
 
Moog Inc.
CONSOLIDATED STATEMENTS OF EARNINGS
(dollars in thousands, except per share data)
                     
    Three Months Ended   Six Months Ended
    March 30,     March 31,   March 30,     March 31,
    2013     2012   2013     2012
Net sales   $ 643,023     $ 624,970   $ 1,263,826     $ 1,225,588
Cost of sales     445,600       440,540     873,703       856,023
Gross profit     197,423       184,430     390,123       369,565
Research and development     38,113       26,897     70,441       56,087
Selling, general and administrative     100,795       97,697     205,870       193,495
Interest     6,442       8,636     15,038       17,182
Restructuring     2,201       -     2,201       -
Other     (88 )     1,411     (2,458 )     63
Earnings before income taxes     49,960       49,789     99,031       102,738
Income taxes     13,433       14,368     28,386       30,944
Net earnings   $ 36,527     $ 35,421   $ 70,645     $ 71,794
Net earnings per share                            
  Basic   $ 0.81     $ 0.78   $ 1.56     $ 1.59
  Diluted   $ 0.80     $ 0.77   $ 1.54     $ 1.57
Average common shares outstanding                            
  Basic     45,333,612       45,227,921     45,343,312       45,219,828
  Diluted     45,825,626       45,781,587     45,766,798       45,730,777
                             
                             
   
   
Moog Inc.  
CONSOLIDATED SALES AND OPERATING PROFIT  
(dollars in thousands)  
                         
    Three Months Ended     Six Months Ended  
    March 30,     March 31,     March 30,     March 31,  
    2013     2012     2013     2012  
Net Sales                                
  Aircraft Controls   $ 258,860     $ 236,388     $ 511,141     $ 467,468  
  Space and Defense Controls     105,688       89,811       192,153       178,205  
  Industrial Systems     144,201       168,015       292,177       326,100  
  Components     98,804       95,643       198,079       183,790  
  Medical Devices     35,470       35,113       70,276       70,025  
Net sales   $ 643,023     $ 624,970     $ 1,263,826     $ 1,225,588  
Operating Profit and Margins                                
  Aircraft Controls   $ 31,518     $ 22,783     $ 62,593     $ 47,610  
      12.2 %     9.6 %     12.2 %     10.2 %
  Space and Defense Controls     7,671       9,903       15,899       22,646  
      7.3 %     11.0 %     8.3 %     12.7 %
  Industrial Systems     7,837       19,272       16,884       35,098  
      5.4 %     11.5 %     5.8 %     10.8 %
  Components     15,342       13,479       34,188       28,508  
      15.5 %     14.1 %     17.3 %     15.5 %
  Medical Devices     1,306       1,489       2,908       3,087  
      3.7 %     4.2 %     4.1 %     4.4 %
Total operating profit     63,674       66,926       132,472       136,949  
      9.9 %     10.7 %     10.5 %     11.2 %
Deductions from Operating Profit                                
  Interest expense     6,442       8,636       15,038       17,182  
  Equity-based compensation expense     833       685       4,724       4,790  
  Corporate expenses and other     6,439       7,816       13,679       12,239  
Earnings before Income Taxes   $ 49,960     $ 49,789     $ 99,031     $ 102,738  
                                 
                                 
 
 
Moog Inc.
CONSOLIDATED BALANCE SHEETS
(dollars in thousands)
         
    March 30,   September 29,
    2013   2012
Cash   $ 149,848   $ 148,841
Receivables     770,470     744,551
Inventories     558,821     538,262
Other current assets     124,981     117,254
  Total current assets     1,604,120     1,548,908
Property, plant and equipment     552,488     546,179
Goodwill and intangible assets     1,019,013     975,049
Other non-current assets     48,654     35,771
  Total assets   $ 3,224,275   $ 3,105,907
             
Short-term borrowings   $ 102,229   $ 90,774
Current installments of long-term debt     3,275     3,186
Contract loss reserves     43,394     48,428
Other current liabilities     527,410     521,488
  Total current liabilities     676,308     663,876
Long-term debt     711,804     670,662
Other long-term liabilities     468,150     466,579
  Total liabilities     1,856,262     1,801,117
Shareholders' equity     1,368,013     1,304,790
  Total liabilities and shareholders' equity   $ 3,224,275   $ 3,105,907
             
             

Contact Information

  • Contact
    Ann Marie Luhr
    716-687-4225