EAST AURORA, N.Y., Nov. 5 /PRNewswire-FirstCall/ -- Moog Inc.
(NYSE:MOG.A andNYSE:MOG.B) announced today fiscal year 2009 sales
of $1.849 billion, net earnings of $85 million and earnings per
share of $1.98. The Company's sales and earnings were both impacted
by the global recession. Sales for the year were down 3% and
earnings were down 29% compared to last year. For the fourth
quarter, sales of $504 million were up 3% from last year, while net
earnings of $15.2 million and earnings per share of $.35 were just
about half of last year's earnings levels. Earnings in the quarter
were impacted by a higher cost sales mix and a $5 million charge
for restructuring expense. Aircraft sales for the year were $664
million, down 1% from the year previous. Military aircraft sales,
of $417 million, were up 5% with sales increases on the F-18
fighter, the V-22 tilt rotor, the Blackhawk helicopter and the
Indian Light Combat Aircraft (LCA). Military aftermarket sales were
also strong at $135 million, up 11%. Commercial aircraft sales for
the year of $214 million were down 21%. Sales to Boeing Commercial
were impacted by their two-month strike. Sales to business jet
manufacturers were $39 million, down 38%, and aftermarket revenue
of $82 million was down 8% from a year ago. The Company's new
navigational aids product line had sales of $33 million and
benefitted from the 2009 acquisition of Fernau Avionics. In the
fourth quarter, Aircraft sales of $177 million were the same as
last year. Once again, military aircraft sales were up 5%, the
result of increases on the F-18, F-15 and the LCA. Commercial
aircraft revenues in the quarter of $56 million were down 21%.
Boeing Commercial revenues were down 12% and business jet sales
were one-third of last year's level. The Space and Defense segment
was largely unaffected by the recession and had a very strong year.
Sales of $275 million were up 8%. Sales of positioning controls for
satellites and steering controls for satellite launch vehicles were
up $13 million to a total of $75 million. The tactical missile
business at $31 million was also up 18%. Vibration controls, naval
applications and homeland security product lines produced a $20
million increase over last year. These product lines have had the
benefit of recent acquisitions. Space and Defense fourth quarter
sales were $70 million, up 12% from a year ago. The growth was
driven by satellite controls, tactical missiles, naval applications
and homeland security. Sales for the year in the Industrial Systems
segment were $455 million, a 15% decline, despite the addition of
$69 million in revenue from recent acquisitions in the wind energy
market. Sales were down for the year in all the capital equipment
markets including plastics and metal forming machinery, motion
simulators, steel mills and test equipment. Sales in the fourth
quarter of $138 million were up 1% but included $49 million in
revenue from the acquisitions. Sales of products in capital
equipment markets were down by 40%. In the Components Group, sales
for the year of $346 million and for the fourth quarter of $89
million were both within 1% of last year's level. The pattern was
the same in both the year and the quarter. Sales were strong in the
aircraft and space and defense markets. Marine sales have slowed
down reflecting reduced equipment orders for offshore oil drilling
equipment. Sales in the medical market were down slightly and sales
of industrial products ran at 75% of last year's level. For the
year, the Medical Devices segment generated sales of $111 million,
up 7% from last year. For the quarter, sales in Medical Devices of
$31 million were up 19% from a year ago. Two recent acquisitions,
Ethox and Aitecs, accounted for the increases. Year-end backlog of
$1.1 billion was up $236 million, or 27%, from a year ago. The
Company updated its guidance for FY 2010. The current forecast has
sales of $2.120 billion, net earnings of $103 million, and earnings
per share of $2.25, a 14% increase over fiscal '09. The Company
suggests a range of plus or minus $.10 per share around the 2010
earnings per share projection. "When we entered fiscal '09 we hoped
that the global recession would not have much impact on our
Company," said R.T. Brady, Chairman and CEO. "It didn't turn out
that way. Our sales in the industrial markets, in business jets,
and in medical devices all felt the effect. Our folks on the front
line met the challenge. In the midst of the worst recession since
the '30's, our Company had net earnings of 4.6% of sales. We've
adjusted to the current market conditions and we're ready to resume
growth in 2010." 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
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," "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 (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 and Lockheed Martin, 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 or intangible assets,
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 the risks 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 modify, to
refinance or to utilize amounts available to us under our credit
facilities given uncertainties in the credit markets, (xxvii) our
ability to meet our credit facilities' restrictive covenants,
breach of which could result in a default under our credit
agreements and (xxviii) the risk that our credit rating is lowered
or that other action is taken by credit rating agencies, or other
third parties, that negatively impacts our credit rating or
creditworthiness, (xxix) 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 release. Moog Inc. CONSOLIDATED STATEMENTS
OF EARNINGS (dollars in thousands, except per share data) Three
Months Ended Twelve Months Ended October 3, September 27, October
3, September 27, 2009 2008 2009 2008 --------- ------------
--------- ------------ Net sales $504,335 $490,846 $1,848,918
$1,902,666 Cost of sales 366,405 337,388 1,311,618 1,293,452
------- ------- --------- --------- Gross profit 137,930 153,458
537,300 609,214 ------- ------- ------- ------- Research and
development 27,895 28,913 100,022 109,599 Selling, general and
administrative 72,623 75,302 281,173 294,936 Restructuring expense
5,121 - 15,067 - Interest 10,827 9,683 39,321 37,739 Equity in
earnings of LTi and other 170 651 (8,844) (1,095) --- --- ------
------ 116,636 114,549 426,739 441,179 ------- ------- -------
------- Earnings before income taxes 21,294 38,909 110,561 168,035
Income taxes 6,107 7,255 25,516 48,967 ----- ----- ------ ------
Net earnings $15,187 $31,654 $85,045 $119,068 ======= =======
======= ======== Net earnings per share Basic $0.36 $0.74 $2.00
$2.79 ===== ===== ===== ===== Diluted $0.35 $0.73 $1.98 $2.75 =====
===== ===== ===== Average common shares outstanding Basic
42,672,736 42,684,157 42,598,321 42,604,268 ========== ==========
========== ========== Diluted 42,973,141 43,277,694 42,906,495
43,256,888 ========== ========== ========== ========== Moog Inc.
CONSOLIDATED SALES AND OPERATING PROFIT (dollars in thousands)
Three Months Ended Twelve Months Ended October 3, September 27,
October 3, September 27, 2009 2008 2009 2008 ---- ---- ---- ----
Net Sales Aircraft Controls $176,737 $176,349 $663,463 $672,930
Space and Defense Controls 70,046 62,377 274,501 253,266 Industrial
Systems 137,630 136,335 454,629 532,098 Components 89,088 89,837
345,509 340,941 Medical Devices 30,834 25,948 110,816 103,431
------ ------ ------- ------- Net sales $504,335 $490,846
$1,848,918 $1,902,666 ======== ======== ========== ==========
Operating Profit (Loss) and Margins Aircraft Controls $11,343
$13,449 $52,349 $54,979 6.4% 7.6% 7.9% 8.2% Space and Defense
Controls 9,523 5,963 40,018 29,261 13.6% 9.6% 14.6% 11.6%
Industrial Systems 7,627 16,708 30,797 73,467 5.5% 12.3% 6.8% 13.8%
Components 10,932 16,073 55,671 60,644 12.3% 17.9% 16.1% 17.8%
Medical Devices (763) 2,148 (7,425) 9,062 (2.5%) 8.3% (6.7%) 8.8%
---- --- ---- --- Total operating profit 38,662 54,341 171,410
227,413 7.7% 11.1% 9.3% 12.0% Deductions from Operating Profit
Interest expense 10,827 9,683 39,321 37,739 Equity-based
compensation expense 1,031 857 5,682 4,551 Corporate expenses and
other 5,510 4,892 15,846 17,088 ----- ----- ------ ------ Earnings
before Income Taxes $21,294 $38,909 $110,561 $168,035 Moog Inc.
CONSOLIDATED BALANCE SHEETS (dollars in thousands) October 3,
September 27, 2009 2008 ---- ---- Cash $81,493 $86,814 Receivables
547,571 517,361 Inventories 484,261 408,295 Other current assets
97,073 77,915 ------ ------ Total current assets 1,210,398
1,090,385 Property, plant and equipment 481,726 428,120 Goodwill
and intangible assets 918,770 635,490 Other non-current assets
23,423 73,252 ------ ------ Total assets $2,634,317 $2,227,247
========== ========== Notes payable $16,971 $7,579 Current
installments of long-term debt 1,541 1,487 Contract loss reserves
50,190 20,536 Other current liabilities 377,559 347,491 -------
------- Total current liabilities 446,261 377,093 Long-term debt
814,574 661,994 Other long-term liabilities 308,449 193,750 -------
------- Total liabilities 1,569,284 1,232,837 Shareholders' equity
1,065,033 994,410 --------- ------- Total liabilities and
shareholders' equity $2,634,317 $2,227,247 ========== ==========
DATASOURCE: Moog Inc. CONTACT: Ann Marie Luhr of Moog,
+1-716-687-4225 Web Site: http://www.moog.com/
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