EAST AURORA, NY--(Marketwire - April 27, 2012) - Moog Inc. (NYSE: MOG.A) (NYSE: MOG.B) today announced second quarter earnings of $35 million and earnings per share of $.77, a 17% increase over last year. Total sales of $625 million were up $51 million, or 9%, from a year ago. 

Total Aircraft Controls sales in the quarter of $236 million were up $30 million from last year. Military aircraft sales were $143 million, up $12 million. Sales were higher for ongoing production programs including the F-35 Joint Strike Fighter, the V-22 tilt rotor aircraft and various aircraft sold into Japan, India and South Korea. Military aftermarket sales were very strong at $55 million.

The Company's commercial aircraft sales were $94 million, up $18 million, with sales to Boeing and Airbus totaling $44 million. Revenue on business jet programs increased 44% to $10 million. Commercial aftermarket sales of $29 million were up $4 million.

Space and Defense segment sales of $90 million were up $2 million from a year ago. Space sales were $45 million on increased sales of controls for satellites, launch vehicles and NASA programs. These were offset by lower sales in defense and security markets. 

The Company's Industrial Systems segment had a good quarter with sales of $168 million, an increase of $12 million. Sales of test and simulation products were up 49%. These included motion bases for flight training simulators and product test systems for aerospace and automotive applications. Sales of controls for industrial automation and energy were unchanged.

Sales for the Components Group of $96 million were $5 million higher than last year's second quarter. Increased sales of marine, medical and industrial products offset lower defense sales. The Company's marine product line is used primarily in off-shore oil exploration and sales in this market increased 37% as the price of oil continued to rise.

The Medical Devices segment had sales of $35 million, up 3% from last year. Sales of pumps were up $1 million offsetting flat administrative set sales and lower sales of sensors and hand pieces. 

The Company's twelve month backlog of $1.3 billion is up 8% from a year ago.

The Company has affirmed its guidance for the year. Sales for the year will be $2.47 billion. Net earnings are now projected at $152 million and earnings per share at $3.31, an increase of 12% over the previous fiscal year. 

"The Company delivered another good result in the second quarter," said John Scannell, CEO. "We saw sales growth in all five of our segments, with the biggest increase in our Aircraft segment. In general, the defense business is holding its own, our industrial markets are healthy and our commercial aircraft business is powering ahead. With six months gone, fiscal 2012 is coming together nicely and we continue to forecast a 12% growth in earnings per share over our fiscal 2011 result."

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 or Lockheed Martin as a customer or a significant reduction in sales to either company could adversely impact our operating results;
  • if we are unable to adapt to technological change, demand for our products may be reduced;
  • our new product and research and development efforts may not be successful, which would result in a reduction in our sales and earnings;
  • our inability to adequately enforce our intellectual property rights or defend against assertions of infringement could prevent or restrict our ability to compete;
  • 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 reduced if we cannot implement our acquisition strategy;
  • we may incur losses and liabilities as a result of our acquisition strategy;
  • our operations in foreign countries expose us to political and currency risks and adverse changes in local, legal, tax and regulatory schemes;
  • government regulations could limit our ability to sell our products outside the United States and otherwise adversely affect our business;
  • the failure or misuse or 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, war or other civil disturbances could negatively impact our business;
  • our facilities could be damaged by catastrophes which could reduce our production capacity and result in a loss of customers;
  • our operations are subject to environmental laws, and complying with those laws may cause us to incur significant costs; and
  • 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 31,   April 2,     March 31,   April 2,  
    2012   2011     2012   2011  
                             
Net sales   $ 624,970   $ 574,226     $ 1,225,588   $ 1,128,660  
Cost of sales     440,540     406,966       856,023     796,847  
Gross profit     184,430     167,260       369,565     331,813  
                             
Research and development     26,897     28,154       56,087     51,629  
Selling, general and administrative     97,697     87,504       193,495     173,345  
Interest     8,636     8,970       17,182     18,181  
Other     1,411     (673 )     63     (427 )
Earnings before income taxes     49,789     43,305       102,738     89,085  
Income taxes     14,368     12,690       30,944     25,063  
Net earnings   $ 35,421   $ 30,615     $ 71,794   $ 64,022  
                             
Net earnings per share                            
  Basic   $ 0.78   $ 0.67     $ 1.59   $ 1.41  
  Diluted   $ 0.77   $ 0.66     $ 1.57   $ 1.39  
                             
Average common shares outstanding                            
  Basic     45,277,921     45,419,121       45,219,828     45,404,006  
  Diluted     45,831,587     46,058,991       45,730,777     45,982,772  
   
   
   
Moog Inc.  
CONSOLIDATED SALES AND OPERATING PROFIT  
(dollars in thousands)  
                         
    Three Months Ended     Six Months Ended  
    March 31,     April 2,     March 31,     April 2,  
    2012     2011     2012     2011  
Net Sales                                
  Aircraft Controls   $ 236,388     $ 206,030     $ 467,468     $ 401,981  
  Space and Defense Controls     89,811       87,791       178,205       183,537  
  Industrial Systems     168,015       155,851       326,100       299,596  
  Components     95,643       90,348       183,790       176,699  
  Medical Devices     35,113       34,206       70,025       66,847  
Net sales   $ 624,970     $ 574,226     $ 1,225,588     $ 1,128,660  
                                 
Operating Profit (Loss) and Margins                                
                                 
  Aircraft Controls   $ 22,783     $ 19,168     $ 47,610     $ 39,363  
        9.6 %     9.3 %     10.2 %     9.8 %
  Space and Defense Controls     9,903       13,083       22,646       28,898  
        11.0 %     14.9 %     12.7 %     15.7 %
  Industrial Systems     19,272       15,858       35,098       30,265  
        11.5 %     10.2 %     10.8 %     10.1 %
  Components     13,479       13,255       28,508       28,058  
        14.1 %     14.7 %     15.5 %     15.9 %
  Medical Devices     1,489       (1,504 )     3,087       (2,995 )
      4.2 %     (4.4 %)     4.4 %     (4.5 %)
Total operating profit     66,926       59,860       136,949       123,589  
      10.7 %     10.4 %     11.2 %     11.0 %
                                 
Deductions from Operating Profit                                
  Interest expense     8,636       8,970       17,182       18,181  
  Equity-based compensation expense     685       1,742       4,790       5,175  
  Corporate expenses and other     7,816       5,843       12,239       11,148  
Earnings before Income Taxes   $ 49,789     $ 43,305     $ 102,738     $ 89,085  
 
 
 
Moog Inc.
CONSOLIDATED BALANCE SHEETS
(dollars in thousands)
         
    March 31,   October 1,
    2012   2011
             
Cash   $ 125,815   $ 113,679
Receivables     710,125     655,805
Inventories     521,770     502,373
Other current assets     113,562     108,589
  Total current assets     1,471,272     1,380,446
Property, plant and equipment     525,484     503,872
Goodwill and intangible assets     942,429     932,566
Other non-current assets     33,561     26,083
  Total assets   $ 2,972,746   $ 2,842,967
             
Short-term borrowings   $ 93,747   $ 9,283
Current installments of long-term debt     365     1,407
Contract loss reserves     40,090     45,173
Other current liabilities     509,320     490,527
  Total current liabilities     643,522     546,390
Long-term debt     653,222     714,757
Other long-term liabilities     394,861     389,929
  Total liabilities     1,691,605     1,651,076
Shareholders' equity     1,281,141     1,191,891
  Total liabilities and shareholders' equity   $ 2,972,746   $ 2,842,967

contact
Ann Marie Luhr
716-687-4225

MOOG INC.
EAST AURORA, NEW YORK 14052
TEL-716/652-2000
FAX -716/687-4457