EAST AURORA, N.Y., April 24 /PRNewswire-FirstCall/ -- Moog Inc.
(NYSE: MOG.ANYSE:andNYSE:MOG.B) today announced second quarter
earnings of $23.7 million, and earnings per share of $.55, down 17%
from last year's second quarter. Sales of $453 million were down 3%
from a year ago. This is the first quarter in 14 years that the
Company has been unable to report an increase in quarterly
earnings. The Company's situation reflects the impact of the global
economic recession, particularly as it affects the Company's
industrial business in Europe and Asia. Total Aircraft sales in the
quarter of $162 million were unchanged from a year ago. Military
aircraft sales of $107 million were up 9%. Production activity
increased on the F-18 Fighter, the V-22 Tilt Rotor aircraft and the
Blackhawk helicopter. Revenues on the F-35 Joint Strike Fighter
development program are winding down. Much of the development work
is complete. The flight test aircraft for two configurations of the
F-35 are in the air and the Company's flight control actuation
systems are performing very well. Military aftermarket sales in the
quarter increased 26% to $35.8 million. The Company's commercial
aircraft sales in the quarter, at $53.3 million, were down $10
million from last year. Most of this change was the result of lower
sales to Boeing Commercial. Activity on the 7-series production
aircraft has slowed somewhat and the production ramp up on the new
787 airplane has been delayed. Revenue on business jet programs
actually increased slightly in the quarter, but commercial
aftermarket sales at $18.8 million were down 16% from a year ago.
The Space and Defense segment had a very strong quarter with sales
of $68 million. Last year's second quarter had the benefit of
extraordinary sales volume on the Driver Vision Enhancer system for
the MRAP vehicles, which provided $18 million in sales. That
program is now 10% of that level, but most other Space and Defense
product lines had increased sales. Sales of controls for satellites
were up 17%. Revenue in launch vehicles, strategic and tactical
missiles, and missile defense were, in total, up 19%. Sales of
defense controls, other than the Driver Vision Enhancer, were up
69%, reflecting increased activity on the Stryker mobile gun system
and a number of European platforms. The Constellation Program,
NASA's replacement for the Space Shuttle system, experienced a
temporary slowdown while NASA develops its requirements for the
Orion Crew Vehicle. The Industrial Systems segment is the part of
the Company most affected by the global industrial recession. Sales
in the quarter of $105 million were down 20% from a year ago. Sales
of controls for plastic making machinery were down 59% and metal
forming was down 45%. Many of the Company's customers for these
products are suppliers to the auto and construction industries all
around the globe, and demand for their products has slowed
dramatically. On a more positive note, power generation sales were
up 32% from a year ago and test equipment sales were up 16%. Sales
for the Components Group of $85 million were at the same level as
last year's second quarter. Within the same sales total, however,
there were some big swings. Total sales of aircraft and space and
defense products were up 16% from a year ago. Marine product sales
were about the same as last year but medical and industrial product
sales were down 15% and 29%, respectively. The biggest sales
increase was in military aircraft. Sales were up 35% to $26 million
driven by the Guardian program. The Guardian system is a Northrop
Grumman program which protects aircraft from shoulder fired
missiles. The Medical Devices segment had sales of $34 million, a
50% improvement over the same quarter last year. Of the $11 million
increase, $6.7 million was revenue from the recently acquired
companies AITECS and Ethox. Sales in the quarter of intravenous and
enteral pumps were up 30% and administration set revenues were up
24%. The Company's twelve month backlog of $913 million is up 6%
from a year ago. The Company has confirmed the earnings guidance it
provided on April 9th with a slight modification to sales. Total
sales for fiscal '09 are now projected at $1.841 billion with net
earnings forecasted at $83.5 million, and earnings per share
estimated at $1.95 with a range of plus or minus $.20. "Last year
our Industrial Systems segment was our biggest profit producer,"
said R. T. Brady, Chairman and CEO. "Despite a slowdown in some
major industrial markets, the segment will be profitable this year,
but not at the same level. On the positive side, our Military
Aircraft and Space and Defense product lines, including those in
the Components Group, are performing very well. As a result, in the
midst of a global economic recession, we hope to earn over $83
million, or 4.5% of sales." 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, marine and
medical equipment. Additional information about the company can be
found at 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 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 Six Months
Ended March 28, March 29, March 28, March 29, 2009 2008 2009 2008
Net sales $453,335 $468,838 $899,423 $915,245 Cost of sales 317,563
319,203 625,803 617,980 Gross profit 135,772 149,635 273,620
297,265 Research and development 24,192 26,076 49,322 50,168
Selling, general and administrative 68,806 72,939 138,005 144,221
Interest 9,422 9,223 19,023 18,935 Equity in earnings of LTi and
other (3,150) (1,131) (5,605) (1,017) 99,270 107,107 200,745
212,307 Earnings before income taxes 36,502 42,528 72,875 84,958
Income taxes 12,810 13,900 18,913 28,655 Net earnings $23,692
$28,628 $53,962 $56,303 Net earnings per share Basic $ 0.56 $0.67 $
1.27 $ 1.32 Diluted $ 0.55 $0.66 $ 1.26 $ 1.30 Average common
shares outstanding Basic 42,535,691 42,601,255 42,571,490
42,543,291 Diluted 42,823,791 43,242,298 42,904,940 43,250,479 MOOG
INC. CONSOLIDATED SALES AND OPERATING PROFIT (dollars in thousands)
Three Months Ended Six Months Ended March 28, March 29, March 28,
March 29, 2009 2008 2009 2008 Net Sales Aircraft Controls $162,025
$161,616 $325,173 $321,197 Space and Defense Controls 68,320 70,086
139,702 127,433 Industrial Systems 104,512 130,176 214,547 252,909
Components 84,504 84,241 166,008 163,828 Medical Devices 33,974
22,719 53,993 49,878 Net sales $453,335 $468,838 $899,423 $915,245
Operating Profit and Margins Aircraft Controls $14,519 $14,255
$28,019 $29,343 9.0% 8.8% 8.6% 9.1% Space and Defense Controls
9,806 9,143 23,386 15,843 14.4% 13.0% 16.7% 12.4% Industrial
Systems 10,860 18,284 22,359 36,177 10.4% 14.0% 10.4% 14.3%
Components 15,049 14,584 30,050 29,420 17.8% 17.3% 18.1% 18.0%
Medical Devices (77) 349 (2,301) 3,936 (0.2%) 1.5% (4.3%) 7.9%
Total operating profit 50,157 56,615 101,513 114,719 11.1% 12.1%
11.3% 12.5% Deductions from Operating Profit Interest expense 9,422
9,223 19,023 18,935 Equity-based compensation expense 1,031 682
3,620 2,310 Corporate expenses and other 3,202 4,182 5,995 8,516
Earnings before Income Taxes $36,502 $42,528 $72,875 $84,958 MOOG
INC. CONSOLIDATED BALANCE SHEETS (dollars in thousands) March 28,
September 27, 2009 2008 Cash $68,258 $86,814 Receivables 521,297
517,361 Inventories 434,299 408,295 Other current assets 87,493
77,915 Total current assets 1,111,347 1,090,385 Property, plant and
equipment 440,582 428,120 Goodwill and intangible assets 757,692
635,490 Other non-current assets 70,961 73,252 Total assets
$2,380,582 $2,227,247 Notes payable $11,170 $7,579 Current
installments of long-term debt 1,309 1,487 Contract loss reserves
20,000 20,536 Other current liabilities 345,388 347,491 Total
current liabilities 377,867 377,093 Long-term debt 787,317 661,994
Other long-term liabilities 204,105 193,750 Total liabilities
1,369,289 1,232,837 Shareholders' equity 1,011,293 994,410 Total
liabilities and shareholders' equity $2,380,582 $2,227,247
DATASOURCE: Moog Inc. CONTACT: Ann Marie Luhr of Moog Inc.,
+1-716-687-4225 Web Site: http://www.moog.com/
Copyright
