Welcome!

News Feed Item

Moog's Third Quarter Sales and EPS Higher

EAST AURORA, NY -- (Marketwired) -- 07/25/14 -- Moog Inc. (NYSE: MOG.A) (NYSE: MOG.B) announced today third quarter earnings of $48 million, or $1.08 a share, an increase of 44% over last year's $.75 per share. Sales in the quarter of $684 million were up 2% from last year's $671 million.

Aircraft sales in the quarter of $294 million were up 8% from a year ago. Commercial aircraft sales of $147 million were up $30 million, or 25%. Sales of OEM products to Boeing were 39% higher, at $70 million, while Airbus sales were up 21%. Commercial aftermarket revenue, at $34 million, was 20% higher in the quarter due to strong initial provisioning of 787 spares.

Military aircraft sales of $148 million were down 5% year over year. F-35 sales of $23 million were down $6 million, the result of a decrease in development program support. OEM sales for helicopters were down $7 million, as delivery rates moderated from a year ago. Foreign military sales were higher, offsetting some of the weakness in domestic military OEM sales. Military aftermarket sales were up 7% on increases in repair contracts on various programs, including the F-35 and V-22.

Space and Defense sales of $103 million were 2% higher in the quarter. Space market sales were higher, at $61 million, on improved sales of components for satellites, launch vehicles and the NASA Soft Capture System. Defense sales were $42 million, down $6 million. A year ago this segment benefited from the LAV-25 turret upgrade program.

Sales in the Industrial Systems segment were flat at $148 million. Within the energy market, slower sales of steam and gas turbine products were offset by higher wind energy sales as a new AC pitch control system was introduced in Brazil. Industrial automation sales were up 9%, at $80 million, on small increases in each of the underlying product lines. Sales of simulation and test products were down $6 million, or 16%, due to inventory adjustments at some OEM customers.

The Components segment had sales in the quarter of $111 million, down 2% from last year. Sales into aerospace and defense markets were slightly lower on weaker military aircraft OEM sales and slower spares activity. Non-aerospace and defense sales, including products sold into marine energy markets, were up $2 million, to $64 million.

The Medical Devices segment had sales of $29 million, down $9 million. A year ago, the Ethox Buffalo operation was sold, accounting for a third of the sales decrease. Lower pump and administration set sales accounted for the other $6 million decline.

The current backlog of $1.38 billion is up 6% from the same quarter a year ago.

The Company updated its guidance for fiscal 2014 to include sales of $2.65 billion, net earnings of $165 million and earnings per share of $3.65, compared to $2.63 in fiscal 2013.

The Company also provided its initial projections for fiscal 2015 with sales of $2.69 billion, net earnings of $181 million and earnings per share of $4.25, a 16% increase over fiscal 2014 guidance.

"This was a very good quarter for our company with increased sales, record earnings and very strong cash flow," said John Scannell, Chairman and CEO. "We are on track for fiscal '14, which will be a great year for Moog. As we look to fiscal '15, we should see further improvement. We're forecasting very modest sales growth but a 16% increase in earnings per share. Company operating margins in fiscal '15 will expand by 50 basis points, despite some margin challenges in our Aircraft segment. We also expect another year of strong cash flow. Overall, if fiscal '15 turns out as we expect, it will be another record year for the company."

In conjunction with today's release, Moog will host a conference call beginning at 10:00 a.m. ET, which will be broadcast live over the Internet. John Scannell, Chairman and CEO, and Don Fishback, CFO, will host the call. Supplemental financial data will be available on the webcast web page approximately 60 minutes prior to the conference call. Listeners can access the call live or in replay mode at www.moog.com/investors/communications.

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 as a customer or a significant reduction in sales to Boeing could adversely impact our operating results;
  • our new product research and development efforts may not be successful which could reduce our sales and earnings;
  • our inability to adequately enforce and protect our intellectual property or defend against assertions of infringement could prevent or restrict our ability to compete;
  • our business operations may be adversely affected by information systems interruptions, intrusions or new software implementations;
  • 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 and equity and increase our 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 may be affected if we cannot identify, acquire or integrate strategic acquisitions, or if we engage in divesting activities;
  • our operations in foreign countries expose us to political and currency risks and adverse changes in local legal and regulatory environments;
  • unforeseen exposure to additional income tax liabilities may affect our operating results;
  • government regulations could limit our ability to sell our products outside the United States and could otherwise adversely affect our business;
  • the failure or misuse of 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, natural disasters or other catastrophic events beyond our control could negatively impact our business; and
  • our operations are subject to environmental laws, and complying with those laws may cause us to incur significant costs.

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      Nine Months Ended
                             ----------------------- -----------------------
                               June 28,    June 29,    June 28,    June 29,
                                 2014        2013        2014        2013
                             ----------- ----------- ----------- -----------
NET SALES                    $   683,698 $   670,632 $ 1,976,961 $ 1,934,458
COST OF SALES                    481,431     472,363   1,378,567   1,346,066
                             ----------- ----------- ----------- -----------
GROSS PROFIT                     202,267     198,269     598,394     588,392
  Research and development        32,498      33,109     105,478     103,550
  Selling, general and
   administrative                102,616      96,550     307,349     302,420
  Interest                         2,215       6,084       9,788      21,122
  Restructuring                        -       4,795           -       6,996
  Other                              283      10,105      10,656       7,647
                             ----------- ----------- ----------- -----------
EARNINGS BEFORE INCOME TAXES      64,655      47,626     165,123     146,657
INCOME TAXES                      16,533      13,399      47,179      41,785
                             ----------- ----------- ----------- -----------
NET EARNINGS                 $    48,122 $    34,227 $   117,944 $   104,872
                             =========== =========== =========== ===========


NET EARNINGS PER SHARE
  Basic                      $      1.09 $      0.76 $      2.62 $      2.31
  Diluted                    $      1.08 $      0.75 $      2.59 $      2.29
                             =========== =========== =========== ===========


AVERAGE COMMON SHARES
 OUTSTANDING
  Basic                       44,077,121  45,316,429  44,946,413  45,334,657
  Diluted                     44,669,248  45,836,565  45,541,561  45,790,359
                             =========== =========== =========== ===========



                                 Moog Inc.
                  CONSOLIDATED SALES AND OPERATING PROFIT
                           (dollars in thousands)

                              Three Months Ended        Nine Months Ended
                            ----------------------   ----------------------
                             June 28,    June 29,     June 28,    June 29,
                               2014        2013         2014        2013
                            ----------  ----------   ----------  ----------
Net sales:
  Aircraft Controls         $  294,194  $  272,855   $  834,420  $  783,996
  Space and Defense
   Controls                    102,505     100,071      297,260     292,224
  Industrial Systems           147,722     147,161      442,998     439,338
  Components                   110,587     112,546      314,433     310,625
  Medical Devices               28,690      37,999       87,850     108,275
                            ----------  ----------   ----------  ----------
Net sales                   $  683,698  $  670,632   $1,976,961  $1,934,458
                            ==========  ==========   ==========  ==========
Operating profit (loss) and
 margins:
  Aircraft Controls         $   30,342  $   31,054   $   87,980  $   93,647
                                  10.3%       11.4%        10.5%       11.9%
  Space and Defense
   Controls                      8,664       6,711       25,523      22,610
                                   8.5%        6.7%         8.6%        7.7%
  Industrial Systems            16,826       9,273       44,010      26,157
                                  11.4%        6.3%         9.9%        6.0%
  Components                    16,972      18,360       46,707      52,548
                                  15.3%       16.3%        14.9%       16.9%
  Medical Devices                2,343      (2,775)       7,348         133
                                   8.2%       (7.3%)        8.4%        0.1%
                            ----------  ----------   ----------  ----------
Total operating profit          75,147      62,623      211,568     195,095
                                  11.0%        9.3%        10.7%       10.1%
Deductions from operating
 profit:
  Interest expense               2,215       6,084        9,788      21,122
  Equity-based compensation
   expense                       1,553         949        6,545       5,673
  Corporate expenses and
   other                         6,724       7,964       30,112      21,643
                            ----------  ----------   ----------  ----------
Earnings before income
 taxes                      $   64,655  $   47,626   $  165,123  $  146,657
                            ==========  ==========   ==========  ==========



                                  Moog Inc.
                         CONSOLIDATED BALANCE SHEETS
                           (dollars in thousands)

                                                    June 28,   September 28,
                                                      2014          2013
                                                 ------------- -------------
ASSETS
CURRENT ASSETS
  Cash and cash equivalents                      $     216,185 $     157,090
  Receivables                                          781,858       811,376
  Inventories                                          547,256       551,674
  Other current assets                                 133,083       127,235
                                                 ------------- -------------
    TOTAL CURRENT ASSETS                             1,678,382     1,647,375
PROPERTY, PLANT AND EQUIPMENT                          565,300       562,363
GOODWILL                                               769,653       766,924
INTANGIBLE, net                                        190,534       208,756
OTHER ASSETS                                            50,923        51,677
                                                 ------------- -------------
TOTAL ASSETS                                     $   3,254,792 $   3,237,095
                                                 ============= =============
LIABILITIES AND SHAREHOLDERS' EQUITY
CURRENT LIABILITIES
  Short-term borrowings                          $     103,942 $     105,088
  Current installments of long-term debt                 5,239         3,382
  Accounts payable                                     164,519       181,893
  Customer advances                                    134,913       145,854
  Contract loss reserves                                36,262        44,228
  Other accrued liabilities                            262,155       242,785
                                                 ------------- -------------
    TOTAL CURRENT LIABILITIES                          707,030       723,230
LONG-TERM DEBT, excluding current installments
  Senior debt                                          670,027       409,125
  Senior subordinated notes                                  -       191,562
LONG-TERM PENSION AND RETIREMENT OBLIGATIONS           240,924       269,751
DEFERRED INCOME TAXES                                  105,587       104,377
OTHER LONG-TERM LIABILITIES                                849         3,285
                                                 ------------- -------------
    TOTAL LIABILITIES                                1,724,417     1,701,330
                                                 ------------- -------------
COMMITMENTS AND CONTINGENCIES                                -             -
SHAREHOLDERS' EQUITY
  Common stock                                          51,280        51,280
  Other shareholders' equity                         1,479,095     1,484,485
                                                 ============= =============
    TOTAL SHAREHOLDERS' EQUITY                       1,530,375     1,535,765
                                                 ============= =============
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY       $   3,254,792 $   3,237,095
                                                 ============= =============

contact
Ann Marie Luhr
716-687-4225

More Stories By Marketwired .

Copyright © 2009 Marketwired. All rights reserved. All the news releases provided by Marketwired are copyrighted. Any forms of copying other than an individual user's personal reference without express written permission is prohibited. Further distribution of these materials is strictly forbidden, including but not limited to, posting, emailing, faxing, archiving in a public database, redistributing via a computer network or in a printed form.

Latest Stories
Building a cross-cloud operational model can be a daunting task. Per-cloud silos are not the answer, but neither is a fully generic abstraction plane that strips out capabilities unique to a particular provider. In his session at 20th Cloud Expo, Chris Wolf, VP & Chief Technology Officer, Global Field & Industry at VMware, will discuss how successful organizations approach cloud operations and management, with insights into where operations should be centralized and when it’s best to decentraliz...
The taxi industry never saw Uber coming. Startups are a threat to incumbents like never before, and a major enabler for startups is that they are instantly “cloud ready.” If innovation moves at the pace of IT, then your company is in trouble. Why? Because your data center will not keep up with frenetic pace AWS, Microsoft and Google are rolling out new capabilities In his session at 20th Cloud Expo, Don Browning, VP of Cloud Architecture at Turner, will posit that disruption is inevitable for c...
Providing the needed data for application development and testing is a huge headache for most organizations. The problems are often the same across companies - speed, quality, cost, and control. Provisioning data can take days or weeks, every time a refresh is required. Using dummy data leads to quality problems. Creating physical copies of large data sets and sending them to distributed teams of developers eats up expensive storage and bandwidth resources. And, all of these copies proliferating...
DevOps is often described as a combination of technology and culture. Without both, DevOps isn't complete. However, applying the culture to outdated technology is a recipe for disaster; as response times grow and connections between teams are delayed by technology, the culture will die. A Nutanix Enterprise Cloud has many benefits that provide the needed base for a true DevOps paradigm. In his Day 3 Keynote at 20th Cloud Expo, Chris Brown, a Solutions Marketing Manager at Nutanix, will explore t...
DevOps has often been described in terms of CAMS: Culture, Automation, Measuring, Sharing. While we’ve seen a lot of focus on the “A” and even on the “M”, there are very few examples of why the “C" is equally important in the DevOps equation. In her session at @DevOps Summit, Lori MacVittie, of F5 Networks, explored HTTP/1 and HTTP/2 along with Microservices to illustrate why a collaborative culture between Dev, Ops, and the Network is critical to ensuring success.
Interoute has announced the integration of its Global Cloud Infrastructure platform with Rancher Labs’ container management platform, Rancher. This approach enables enterprises to accelerate their digital transformation and infrastructure investments. Matthew Finnie, Interoute CTO commented “Enterprises developing and building apps in the cloud and those on a path to Digital Transformation need Digital ICT Infrastructure that allows them to build, test and deploy faster than ever before. The int...
SYS-CON Events announced today that SoftLayer, an IBM Company, has been named “Gold Sponsor” of SYS-CON's 18th Cloud Expo, which will take place on June 7-9, 2016, at the Javits Center in New York, New York. SoftLayer, an IBM Company, provides cloud infrastructure as a service from a growing number of data centers and network points of presence around the world. SoftLayer’s customers range from Web startups to global enterprises.
SYS-CON Events announced today that Conference Guru has been named “Media Sponsor” of SYS-CON's 20th International Cloud Expo, which will take place on June 6–8, 2017, at the Javits Center in New York City, NY. A valuable conference experience generates new contacts, sales leads, potential strategic partners and potential investors; helps gather competitive intelligence and even provides inspiration for new products and services. Conference Guru works with conference organizers to pass great dea...
SYS-CON Events announced today that Technologic Systems Inc., an embedded systems solutions company, will exhibit at SYS-CON's @ThingsExpo, which will take place on June 6-8, 2017, at the Javits Center in New York City, NY. Technologic Systems is an embedded systems company with headquarters in Fountain Hills, Arizona. They have been in business for 32 years, helping more than 8,000 OEM customers and building over a hundred COTS products that have never been discontinued. Technologic Systems’ pr...
SYS-CON Events announced today that CA Technologies has been named “Platinum Sponsor” of SYS-CON's 20th International Cloud Expo®, which will take place on June 6-8, 2017, at the Javits Center in New York City, NY, and the 21st International Cloud Expo®, which will take place October 31-November 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. CA Technologies helps customers succeed in a future where every business – from apparel to energy – is being rewritten by software. From ...
With major technology companies and startups seriously embracing Cloud strategies, now is the perfect time to attend @CloudExpo | @ThingsExpo, June 6-8, 2017, at the Javits Center in New York City, NY and October 31 - November 2, 2017, Santa Clara Convention Center, CA. Learn what is going on, contribute to the discussions, and ensure that your enterprise is on the right path to Digital Transformation.
Deep learning has been very successful in social sciences and specially areas where there is a lot of data. Trading is another field that can be viewed as social science with a lot of data. With the advent of Deep Learning and Big Data technologies for efficient computation, we are finally able to use the same methods in investment management as we would in face recognition or in making chat-bots. In his session at 20th Cloud Expo, Gaurav Chakravorty, co-founder and Head of Strategy Development ...
SYS-CON Events announced today that Telecom Reseller has been named “Media Sponsor” of SYS-CON's 20th International Cloud Expo, which will take place on June 6–8, 2017, at the Javits Center in New York City, NY. Telecom Reseller reports on Unified Communications, UCaaS, BPaaS for enterprise and SMBs. They report extensively on both customer premises based solutions such as IP-PBX as well as cloud based and hosted platforms.
What if you could build a web application that could support true web-scale traffic without having to ever provision or manage a single server? Sounds magical, and it is! In his session at 20th Cloud Expo, Chris Munns, Senior Developer Advocate for Serverless Applications at Amazon Web Services, will show how to build a serverless website that scales automatically using services like AWS Lambda, Amazon API Gateway, and Amazon S3. We will review several frameworks that can help you build serverle...
SYS-CON Events announced today that Loom Systems will exhibit at SYS-CON's 20th International Cloud Expo®, which will take place on June 6-8, 2017, at the Javits Center in New York City, NY. Founded in 2015, Loom Systems delivers an advanced AI solution to predict and prevent problems in the digital business. Loom stands alone in the industry as an AI analysis platform requiring no prior math knowledge from operators, leveraging the existing staff to succeed in the digital era. With offices in S...