EAST AURORA, N.Y., Jan. 26 /PRNewswire-FirstCall/ -- Moog Inc.
(NYSE: MOG.ANYSE:andNYSE:MOG.B) today announced first quarter
earnings of $30.3 million and earnings per share of $.70, up 9%
from the $.64 of last year's first quarter. Sales of $446 million
were level with a year ago. Aircraft segment sales of $163 million
were up slightly from last year. Increased sales for military
products offset reduced commercial sales to Boeing. Military
aircraft sales of $106 million were up 16%. Sales on the V-22 Tilt
Rotor aircraft, the F-35 Joint Strike Fighter and the Indian Light
Combat Aircraft were all higher than last year. In addition, the
military aftermarket at $30 million was up 11% from a year ago.
Commercial aircraft sales of $58 million were down 16% primarily as
a result of the strike at Boeing. Sales on business jets were also
down somewhat, but the commercial airplane aftermarket maintained
the same sales level as last year. Space and Defense sales of $71
million were up a remarkable 24%. This was the strongest quarter
for the Space and Defense segment in Company history. Sales of
defense control products were up 39% to $28 million reflecting
another large order for the QuickSet Driver's Vision Enhancer
product. Sales of the legacy products which include controls for
satellites, launch vehicles and missiles were up 14% to $29
million. The Constellation programs generated $4 million in
revenue, an increase of 19% from a year ago. Industrial segment
sales of $110 million were down 10%. European and Asian
manufacturers of plastics-making machinery, metal-forming and
steel-making equipment have reduced their requirements for the
Company's controls as a result of the global economic slowdown. The
two bright spots in the Industrial market were in power generation
and motion simulators. Sales of power generation products at $13
million were up 23%. The motion simulator business was also up in
the quarter. Sales of $19 million were up 26%. Components Group
sales of $82 million were up 2% from a year ago. Sales of aircraft
and defense products were up 9% to $46 million. The largest sales
increase was on the Northrop Grumman Guardian, a system which
protects aircraft from shoulder-fired missiles. Marine sales at $10
million were up 14%. These increases offset a 12% decline in sales
of medical and industrial components. The Medical Devices segment
was also impacted by the recession. Sales at $20 million were down
26% from last year. Pump sales at $6 million were about half of
last year's level. Sales of ultrasonic sensors and surgical
handpieces were also down about a third. The one positive in this
segment was in sales of administration sets which, at $9 million,
were up 20%. Administration sets are disposable and used every time
a pump is energized. The demand is related to pump use and
continues in spite of the economy. Twelve-month consolidated
backlog at December 27, 2008 was $878 million, up $38 million, or
5%, from a year ago. The Company has updated its guidance for
fiscal '09 and is now projecting sales of $1.947 billion, net
earnings of $120.5 million and earnings per share of $2.80. "This
quarter was a reasonable start to what we expect to be a
challenging year," said R. T. Brady, Chairman and CEO. "Sales were
strong in our Aerospace and Defense segments, but our Industrial
segment and our Components Group are feeling the effects of the
global economic slowdown. In spite of the economy, though, we're
forecasting total sales, net earnings and earnings per share all
slightly above what we achieved in fiscal '08. If we're able to do
that in this economy, it will be a real accomplishment." 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, and medical equipment. Additional information about the
company can be found on its website, http://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, 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, (xxiv) the cost of compliance with environmental laws,
(xxv) 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, (xxvi) the
inability to utilize amounts available to us under our credit
facilities given uncertainties in the credit markets and (xxvii)
our customer's inability to pay us due to adverse economic
conditions or their inability to access available credit. 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
December 27, December 29, 2008 2007 Net sales $446,088 $446,407
Cost of sales 308,240 298,777 Gross profit 137,848 147,630 Research
and development 25,130 24,092 Selling, general and administrative
69,199 71,282 Interest 9,601 9,712 Equity in earnings of LTi and
other (2,455) 114 101,475 105,200 Earnings before income taxes
36,373 42,430 Income taxes 6,103 14,755 Net earnings $30,270
$27,675 Net earnings per share Basic $0.71 $0.65 Diluted $0.70
$0.64 Average common shares outstanding Basic 42,607,289 42,485,328
Diluted 42,986,088 43,258,660 MOOG INC. CONSOLIDATED SALES AND
OPERATING PROFIT (dollars in thousands) Three Months Ended December
27, December 29, 2008 2007 Net Sales Aircraft Controls $163,149
$159,581 Space and Defense Controls 71,382 57,347 Industrial
Systems 110,035 122,733 Components 81,504 79,587 Medical Devices
20,018 27,159 Net sales $446,088 $446,407 Operating Profit and
Margins Aircraft Controls $13,500 $15,088 8.3% 9.5% Space and
Defense Controls 13,580 6,700 19.0% 11.7% Industrial Systems 11,499
17,893 10.5% 14.6% Components 15,001 14,836 18.4% 18.6% Medical
Devices (2,224) 3,587 (11.1%) 13.2% Total operating profit 51,356
58,104 11.5% 13.0% Deductions from Operating Profit Interest
expense 9,601 9,712 Equity-based compensation expense 2,589 1,628
Corporate expenses and other 2,793 4,334 Earnings before Income
Taxes $36,373 $42,430 MOOG INC. CONSOLIDATED BALANCE SHEETS
(dollars in thousands) December 27, September 27, 2008 2008 Cash
$118,417 $86,814 Receivables 484,748 517,361 Inventories 425,366
408,295 Other current assets 84,904 77,915 Total current assets
1,113,435 1,090,385 Property, plant and equipment 428,889 428,120
Goodwill and intangible assets 633,091 635,490 Other non-current
assets 80,115 73,252 Total assets $2,255,530 $2,227,247 Notes
payable $12,187 $7,579 Current installments of long-term debt 1,402
1,487 Contract loss reserves 21,781 20,536 Other current
liabilities 326,929 347,491 Total current liabilities 362,299
377,093 Long-term debt 698,924 661,994 Other long-term liabilities
193,160 193,750 Total liabilities 1,254,383 1,232,837 Shareholders'
equity 1,001,147 994,410 Total liabilities and shareholders' equity
$2,255,530 $2,227,247 DATASOURCE: Moog Inc. CONTACT: Ann Marie
Luhr, +1-716-687-4225 Web Site: http://www.moog.com/
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