SOURCE: Woodward, Inc.

Woodward, Inc.

November 07, 2011 16:30 ET

Woodward, Inc. Changes to Aerospace and Energy Financial Reporting Segments

FORT COLLINS, CO--(Marketwire - Nov 7, 2011) - Woodward, Inc. (NASDAQ: WWD) today announced that the company will now report its financial results through two reporting segments: Aerospace and Energy. This change will be reflected in the reported results for the fourth quarter and full year ended September 30, 2011.

"We have been expanding our focus on the broader control solution requirements of the aerospace and energy markets. This has led us to new and more integrated systems offerings and opportunities across our businesses for organic growth," explained Thomas A. Gendron, Chairman and Chief Executive Officer. "We are modifying our external reporting segments to reflect this coordinated approach to these strategic markets."

Aerospace

Woodward's Aerospace segment is a leader in controls for aircraft propulsion systems, as well as motion control and actuation systems for critical aerospace and defense platforms. The Aerospace segment combines the aircraft propulsion portion of the former Turbine Systems segment with the former Airframe Systems segment.

The Aerospace segment designs, produces and services high-performance fuel, air and combustion systems, cockpit controls, and flight and utility surface actuation systems. The Aerospace segment's systems and components are on the world's leading fixed wing and rotorcraft platforms in the commercial, business and military aerospace markets. In addition, the Aerospace segment produces critical motion control systems for weapons and ground defense systems.

Energy

Woodward's Energy segment focuses on setting the global standard for control systems used in:

  • energy resource extraction, transportation and processing,
  • electricity generation, distribution, and storage, and
  • locomotives, ships, and alternative-fuel vehicles.

Woodward's Energy segment combines the former Engine Systems and Electrical Power Systems segments with the industrial turbine portion of the former Turbine Systems segment.

The Energy segment designs, produces, and services high-performance fuel, air and combustion systems, motion control products, and electrical power conversion and management systems. The Energy segment's systems and products control industrial gas and steam turbines, reciprocating engines, compressors, wind turbines, electrical power equipment, and other energy-related industrial equipment.

The company has included later in this press release certain unaudited historical financial results for fiscal years 2009 and 2010, as well as quarterly data for fiscal 2010 and the first three quarters of fiscal 2011, which have been revised to reflect the new segment reporting structure. The segment changes do not impact the company's audited consolidated balance sheet, statement of income, or cash flows.

About Woodward, Inc.

Woodward is an independent designer, manufacturer, and service provider of control solutions for the aerospace and energy markets. Our aerospace systems and components optimize the performance of fixed wing and rotorcraft platforms in the commercial, business and military aircraft, ground vehicles and other equipment. Our energy-related systems and components enhance the performance of industrial gas and steam turbines, reciprocating engines, compressors, wind turbines, electrical grids and other energy-related industrial equipment. The company's innovative fluid energy, combustion control, electrical energy, and motion control systems help customers offer cleaner, more reliable and more efficient equipment. Our customers include leading original equipment manufacturers and end users of their products. Woodward is headquartered in Fort Collins, Colo., USA. Visit our website at www.woodward.com.

The statements in this release concerning the company's future sales, earnings, business performance, prospects, and the economy in general reflect current expectations and are forward-looking statements that involve risks and uncertainties. Actual results could differ materially from projections or any other forward-looking statement and we have no obligation to update our forward-looking statements. Factors that could affect performance and could cause actual results to differ materially from projections and forward-looking statements are described in Woodward's Annual Report and Form 10-K for the year ended September 30, 2010 and any subsequently filed Quarterly Report on Form 10-Q.

Woodward, Inc. and Subsidiaries
Financial Results Revised for Segment Change
Year Ending September 30,
2009 2010
External net sales:
Aerospace $ 704,771 $ 769,379
Energy 725,354 687,651
Total $ 1,430,125 $ 1,457,030
Segment earnings:
Aerospace $ 104,550 $ 112,171
Energy 96,938 94,014
Total $ 201,488 $ 206,185
Segment earnings as percentage of sales:
Aerospace 14.8 % 14.6 %
Energy 13.4 % 13.7 %
Earnings Reconciliation:
Total segment earnings $ 201,488 $ 206,185
Nonsegment expenses (46,578 ) (22,434 )
Interest expense and income, net (32,498 ) (28,876 )
Consolidated earnings before income taxes $ 122,412 $ 154,875
Segment Assets:
Aerospace $ 1,042,956 $ 994,868
Energy 439,167 461,900
Total segment assets 1,482,123 1,456,768
Unallocated corporate property, plant and equipment, net 6,857 6,111
Other unallocated assets 207,442 200,354
Consolidated total assets $ 1,696,422 $ 1,663,233
Segment depreciation and amortization:
Aerospace $ 38,643 $ 50,611
Energy 22,452 21,165
Total segment depreciation and amortization 61,095 71,776
Unallocated corporate amounts 2,853 3,840
Consolidated depreciation and amortization $ 63,948 $ 75,616
Segment capital expenditures:
Aerospace $ 11,612 $ 13,744
Energy 15,158 11,578
Total segment capital expenditures 26,770 25,322
Unallocated corporate amounts 2,177 2,782
Consolidated capital expenditures $ 28,947 $ 28,104
Woodward, Inc. and Subsidiaries
Financial Results Revised for Segment Change
Three Months Ending
December 31, 2009 March 31, 2010 June 30, 2010 September 30, 2010
External net sales:
Aerospace $ 180,384 $ 185,196 $ 191,150 $ 212,649
Energy 158,924 164,156 165,217 199,354
Total $ 339,308 $ 349,352 $ 356,367 $ 412,003
Segment earnings:
Aerospace $ 26,204 $ 26,678 $ 28,564 $ 30,725
Energy 18,837 21,659 22,425 31,093
Total $ 45,041 $ 48,337 $ 50,989 $ 61,818
Segment earnings as percentage of sales:
Aerospace 14.5 % 14.4 % 14.9 % 14.4 %
Energy 11.9 % 13.2 % 13.6 % 15.6 %
Earnings Reconciliation:
Total segment earnings $ 45,041 $ 48,337 $ 50,989 $ 61,818
Nonsegment expenses (5,410 ) (5,315 ) (6,085 ) (5,624 )
Interest expense and income, net (8,141 ) (7,204 ) (6,852 ) (6,679 )
Consolidated earnings before income taxes $ 31,490 $ 35,818 $ 38,052 $ 49,515
Three Months Ending
December 31, 2010 March 31, 2011 June 30, 2011
External net sales:
Aerospace $ 181,144 $ 204,945 $ 215,242
Energy 183,931 213,921 223,225
Total $ 365,075 $ 418,866 $ 438,467
Segment earnings:
Aerospace $ 19,914 $ 33,241 $ 35,402
Energy 24,503 26,941 29,251
Total $ 44,417 $ 60,182 $ 64,653
Segment earnings as percentage of sales:
Aerospace 11.0 % 16.2 % 16.4 %
Energy 13.3 % 12.6 % 13.1 %
Earnings Reconciliation:
Total segment earnings $ 44,417 $ 60,182 $ 64,653
Nonsegment expenses (6,564 ) (7,481 ) (7,554 )
Interest expense and income, net (6,378 ) (6,214 ) (6,244 )
Consolidated earnings before income taxes $ 31,475 $ 46,487 $ 50,855

Contact Information

  • CONTACT:
    Robert F. Weber, Jr.
    Vice Chairman, Chief Financial Officer & Treasurer
    970-498-3112