EAST AURORA, N.Y., Feb. 1 /PRNewswire-FirstCall/ -- Moog Inc.
(NYSE:MOG.A andNYSE:MOG.B) today announced first quarter sales of
$495 million, up 11% from a year ago. Net earnings were $21.6
million and earnings per share were $.47. Earnings per share were
down a third from last year's first quarter, the quarter before the
recession began to affect the Company's results. Aircraft segment
sales of $175 million were up $12 million from last year, helped by
sales associated with the fiscal 2009 acquisitions of the
Wolverhampton flight controls business and the Fernau navigation
aids business. Military aircraft sales of $109 million were up 6%,
including $10 million from Wolverhampton. Sales were lower on the
F-35 Joint Strike Fighter as the program transitions from
development to production while aftermarket sales at $38 million
were up over 40%. Commercial aircraft sales of $57 million were
level with the same quarter a year ago. Commercial aircraft sales
from Wolverhampton of $11 million offset declines in both business
jet products and in the aftermarket. OEM sales to Boeing and
Airbus, excluding acquisition sales, maintained the same level as
last year. Space and Defense sales were $69 million in the quarter.
Last year's first quarter sales of $71 million included $14 million
of sales for the Driver's Vision Enhancer which did not repeat this
year. Sales increased in controls for satellites, satellite launch
vehicles and the Company's new initiatives in security and
surveillance and Naval applications. Work on the NASA Constellation
program was up only slightly from last year. Industrial Systems
sales of $136 million were up 24% from a year ago. The Company's
recent acquisitions in the wind energy market added $44 million in
sales to the quarter. Sales of controls for capital equipment,
power generation and motion simulators continue to run at reduced
levels. Components Group sales of $85 million were up 4% from a
year ago. The sales increases were in the aircraft and defense
products which generated $56 million in revenue in the quarter. The
largest sales increases were in fiber optic controls for the
Eurofighter and de-icing systems for the Black Hawk helicopter.
These increases offset declines in sales of marine, medical and
industrial components. Medical Devices segment sales at $29 million
had the benefit of two recent acquisitions. Sales in the legacy
product lines increased by 17% however, primarily as a result of
increased sales of IV infusion pumps and administration sets.
Twelve month consolidated backlog on January 2, 2010 was $1.1
billion, up $220 million, or 25%, from a year ago, primarily
related to acquisitions. The Company has reaffirmed its guidance
for fiscal 2010 and continues to project sales of $2.12 billion,
net earnings of $103 million and earnings per share of $2.25 with a
range of +/- $.10. "Our Company is in the early stages of a
recovery from the recession-impacted results of last year," said
R.T. Brady, Chairman and CEO. "Our recent acquisitions have
provided sales momentum and the segments that were most affected
last year are slowly improving their profitability. We're
anticipating slow but steady improvement as the year progresses."
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 http://www.moog.com/.
Cautionary Statement Information included or incorporated by
reference herein 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 results described in the forward-looking statements. These
important factors, risks and uncertainties include: 1. fluctuations
in general business cycles for commercial aircraft, military
aircraft, space and defense products, industrial capital goods and
medical devices; 2. our dependence on government contracts that may
not be fully funded or may be terminated; 3. our dependence on
certain major customers, such as The Boeing Company and Lockheed
Martin, for a significant percentage of our sales; 4. delays by our
customers in the timing of introducing new products, which may
affect our earnings and cash flow; 5. the possibility that the
demand for our products may be reduced if we are unable to adapt to
technological change; 6. intense competition, which may require us
to lower prices or offer more favorable terms of sale; 7. our
indebtedness, which could limit our operational and financial
flexibility; 8. the possibility that new product and research and
development efforts may not be successful, which could reduce our
sales and profits; 9. 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; 10. a write-off of all
or part of our goodwill or intangible assets, which could adversely
affect our operating results and net worth and cause us to violate
covenants in our bank agreements; 11. 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; 12. 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; 13. 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;
14. 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 acquired
businesses for which we are not indemnified; 15. our dependence on
our management team and key personnel; 16. the possibility of a
catastrophic loss of one or more of our manufacturing facilities;
17. the possibility that future terror attacks, war or other civil
disturbances could negatively impact our business; 18. that our
operations in foreign countries could expose us to political risks
and adverse changes in local, legal, tax and regulatory schemes;
19. the possibility that government regulation could limit our
ability to sell our products outside the United States; 20. 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; 21. 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; 22. changes in medical
reimbursement rates of insurers to medical service providers, which
could affect sales of our medical products; 23. the possibility
that litigation results may be unfavorable to us; 24. 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; 25. foreign currency
fluctuations in those countries in which we do business and other
risks associated with international operations; 26. the cost of
compliance with environmental laws; 27. the risk of losses
resulting from maintaining significant amounts of cash and cash
equivalents at financial institutions that are in excess of amounts
insured by governments; 28. the inability to modify, to refinance
or to utilize amounts presently available to us under our credit
facilities given uncertainties in the credit markets; 29. our
ability to meet the restrictive covenants under our credit
facilities since a breach of any of these covenants could result in
a default under our credit agreements; and 30. our customers'
inability to continue operations or to pay us due to adverse
economic conditions or their inability to access available credit.
MOOG INC. CONSOLIDATED STATEMENTS OF EARNINGS (dollars in
thousands, except per share data) Three Months Ended January 2,
December 27, 2010 2008 ---------- ---------- Net sales $495,178
$446,088 Cost of sales 350,776 308,240 ---------- ---------- Gross
profit 144,402 137,848 ---------- ---------- Research and
development 23,882 25,130 Selling, general and administrative
78,127 69,199 Restructuring expense 1,819 - Interest 10,728 9,601
Equity in earnings of LTi and other 394 (2,455) ----------
---------- Earnings before income taxes 29,452 36,373 Income taxes
7,891 6,103 ---------- ---------- Net earnings $21,561 $30,270
========== ========== Net earnings per share Basic $0.48 $0.71
========== ========== Diluted $0.47 $0.70 ========== ==========
Average common shares outstanding Basic 45,323,349 42,607,289
========== ========== Diluted 45,592,874 42,986,088 ==========
========== MOOG INC. CONSOLIDATED SALES AND OPERATING PROFIT
(dollars in thousands) Three Months Ended January 2, December 27,
2010 2008 ----------- ----------- Net Sales Aircraft Controls
$175,060 $163,149 Space and Defense Controls 69,491 71,382
Industrial Systems 136,352 110,035 Components 84,906 81,504 Medical
Devices 29,369 20,018 ----------- ----------- Net sales $495,178
$446,088 =========== =========== Operating Profit (Loss) and
Margins Aircraft Controls $17,610 $13,500 10.1% 8.3% Space and
Defense Controls 7,519 13,580 10.8% 19.0% Industrial Systems 11,181
11,499 8.2% 10.5% Components 12,122 15,001 14.3% 18.4% Medical
Devices 139 (2,224) 0.5% (11.1%) ----------- ----------- Total
operating profit 48,571 51,356 9.8% 11.5% Deductions from Operating
Profit Interest expense 10,728 9,601 Equity-based compensation
expense 2,784 2,589 Corporate expenses and other 5,607 2,793
----------- ----------- Earnings before Income Taxes $29,452
$36,373 =========== =========== MOOG INC. CONSOLIDATED BALANCE
SHEETS (dollars in thousands) January 2, October 3, 2010 2009
----------- ----------- Cash $101,301 $81,493 Receivables 523,265
547,571 Inventories 465,691 484,261 Other current assets 102,000
97,073 ----------- ----------- Total current assets 1,192,257
1,210,398 Property, plant and equipment 477,823 481,726 Goodwill
and intangible assets 910,081 918,770 Other non-current assets
19,545 23,423 ----------- ----------- Total assets $2,599,706
$2,634,317 =========== ========== Notes payable $16,460 $16,971
Current installments of long-term debt 1,458 1,541 Contract loss
reserves 43,850 50,190 Other current liabilities 353,844 377,559
----------- ----------- Total current liabilities 415,612 446,261
Long-term debt 788,214 814,574 Other long-term liabilities 305,022
308,449 ----------- ----------- Total liabilities 1,508,848
1,569,284 Shareholders' equity 1,090,858 1,065,033 -----------
----------- Total liabilities and shareholders' equity $2,599,706
$2,634,317 =========== =========== DATASOURCE: Moog Inc. CONTACT:
Ann Marie Luhr, +1-716-687-4225 Web Site: http://www.moog.com/
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