Moog Reports First Quarter Sales up 4%

Moog Reports First Quarter Sales up 4% 
EAST AURORA, NY -- (Marketwired) -- 01/24/14 --  Moog Inc. (NYSE:
MOG.A) (NYSE: MOG.B) today announced first quarter sales of $643
million, up 4% from a year ago. Net earnings were $32 million and
earnings per share were $.70, both lower compared to last year's
first quarter. Results in the quarter included a charge of $.12 per
share for costs associated with the previously announced redemption
of high yield notes and a $.06 per share investment write down.
Exclusive of those charges, adjusted earnings per share of $.88 were
up 17% from a year ago.  
Aircraft segment sales, at $265 million, were up 5% from last year.
Commercial aircraft sales increased 25% on very strong OEM production
which included $56 million in sales to Boeing and $19 million in
sales to Airbus. Commercial aircraft aftermarket sales of $29 million
were 8% higher.  
Military aircraft sales were down 8% to $138 million. OEM sales were
off 5% due to lower V-22 production rates and slowing development
program activity on the F-35 Joint Strike Fighter. Military
aftermarket sales were 13% lower, at $50 million. 
Space and Defense sales of $99 million were 15% higher than a year
ago. Sales in space markets were up 21%, driven by last year's Broad
Reach acquisition. Combined sales for the defense and security
markets were 8% higher.  
Industrial Systems sales of $144 million were down 3%. Sales of
simulation and test systems and industrial automation products were
down 2% while sales of energy products were down 4%. 
Components Group sales, at $103 million, increased 3% year over year.
Industrial automation sales were $8 million higher with the addition
of Aspen Motion Technologies, acquired in fiscal '13. Medical
components sales were 6% higher. Sales into aerospace and defense
markets were mostly unchanged. Sales of energy market products were
lower as sales into marine markets a year ago were unusually high. 
Medical Devices segment sales of $32 million were 9% lower, the
result of the sale of the Ethox Buffalo operation six months ago.
Higher pump sales offset lower sales of administration sets in the
Twelve month consolidated backlog was $1.4 billion, up 9% from a year
The company also updated its projections for fiscal 2014. Compared
with the forecast of 90 days ago, the company is planning to invest
an additional $.15 per share in Aircraft R&D and $.10 per share in
their SAP business system conversion. The company is also reducing
its sales forecast for the year by $45 million which will result in
$.10 per share lower earnings. The revised forecast is sales of $2.63
billion, net earnings of $169 million and earnings per share of
"We're off to a slow start in fiscal '14," said John Scannell,
Chairman and CEO. "Our commercial aircraft business is strong, but
our defense and industrial markets are weaker than plan. Despite the
difficult market conditions, we continue to invest in programs which
will deliver long term benefits. Although we have revised our fiscal
'14 outlook downward somewhat, it is still a step up from fiscal '13.
We will continue to focus on cost reductions and margin improvement
as we move through the year." 
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. Listeners can access the call live or in replay
mode at Supplemental financial
data will be available on the webcast web page prior to the
conference call. 
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 
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
--  our operations in foreign countries expose us to political and
    currency risks and adverse changes in local legal and regulatory
--  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
--  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
--  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
Financial statements in this press release include As Adjusted a) Net
Earnings b) Earnings Per Share c) Operating Profit and d) Operating
Margin financial measures to exclude the effects of the redemption of
the senior subordinated notes and the write down of an investment.
Management believes these As Adjusted financial measures provide
investors important insight and measurement into the company's
ongoing operational performance. The Company does not intend for the
information to be considered in isolation, or as substitutes to, the
most closely related GAAP measures. Reconciliations to GAAP measures
are contained within. 

                                 Moog Inc.                                  
                    CONSOLIDATED STATEMENTS OF EARNINGS                     
               (dollars in thousands, except per share data)                
                                                 Three Months Ended         
                                           December 28,      December 29,   
                                               2013              2012       
                                        ----------------- ----------------- 
Net sales                               $         643,385 $         620,803 
Cost of sales                                     444,076           428,103 
                                        ----------------- ----------------- 
Gross profit                                      199,309           192,700 
                                        ----------------- ----------------- 
Research and development                           35,755            32,328 
Selling, general and administrative                99,901           105,075 
Interest                                            5,129             8,596 
Redemption of senior subordinated notes             8,002                 - 
Other                                               3,665            (2,370)
                                        ----------------- ----------------- 
Earnings before income taxes                       46,857            49,071 
Income taxes                                       14,760            14,953 
                                        ----------------- ----------------- 
Net earnings                            $          32,097 $          34,118 
                                        ================= ================= 
Net earnings per share                                                      
  Basic                                 $            0.71 $            0.75 
                                        ================= ================= 
  Diluted                               $            0.70 $            0.75 
                                        ================= ================= 
Average common shares outstanding                                           
  Basic                                        45,384,652        45,353,332 
                                        ================= ================= 
  Diluted                                      46,010,035        45,708,289 
                                        ================= ================= 
Net earnings and earnings per share -                                       
 as adjusted                                                                
Net earnings as reported                $          32,097 $          34,118 
Redemption of senior subordinated notes             5,481                 - 
Write down of investment                            2,748                 - 
                                        ----------------- ----------------- 
Net earnings - as adjusted              $          40,326 $          34,118 
                                        ================= ================= 
Diluted net earnings per share - as                                         
 adjusted                               $            0.88 $            0.75 
                                        ================= ================= 
                                 Moog Inc.                                  
                  CONSOLIDATED SALES AND OPERATING PROFIT                   
                           (dollars in thousands)                           
                                                Three Months Ended          
                                          December 28,       December 29,   
                                              2013               2012       
          -----------------  ----------------- 
Net Sales                                                                   
  Aircraft Controls                    $         265,416  $         252,281 
  Space and Defense Controls                      99,450             86,465 
  Industrial Systems                             144,079            147,976 
  Components                                     102,685             99,275 
  Medical Devices                                 31,755             34,806 
                                       -----------------  ----------------- 
Net sales                              $         643,385  $         620,803 
                                       =================  ================= 
Operating Profit and Margins                                                
  Aircraft Controls                    $          31,771  $          31,075 
                                                    12.0%              12.3%
  Space and Defense Controls                       7,853              8,228 
                                                     7.9%               9.5%
  Industrial Systems                              12,286              9,047 
                                                     8.5%               6.1%
  Components                                      16,189             18,846 
                                                    15.8%              19.0%
  Medical Devices                                  3,628              1,602 
                                                    11.4%               4.6%
                                       -----------------  ----------------- 
Total operating profit                            71,727             68,798 
                                                    11.1%              11.1%
Deductions from Operating Profit                                            
  Interest expense                                 5,129              8,596 
  Equity-based compensation expense                3,774              3,891 
  Redemption of senior subordinated                                         
   notes                                           8,002                  - 
  Corporate expenses and other                     7,965              7,240 
                                       -----------------  ----------------- 
Earnings before Income Taxes           $          46,857  $          49,071 
                                       =================  ================= 
Operating Profit and Margins - as                                           
  Industrial Systems as reported       $          12,286  $           9,047 
    Write down of investment                       4,011                  - 
                                       -----------------  ----------------- 
  Industrial Systems - as adjusted     $          16,297  $           9,047 
                                                    11.3%               6.1%
Total operating profit - as adjusted   $          75,738  $          68,798 
                                                    11.8%              11.1%
                                  Moog Inc.                                 
                         CONSOLIDATED BALANCE SHEETS                        
                           (dollars in thousands)                           
                                            December 28,     September 28,  
                                                2013              2013      
                                         ----------------- -----------------
Cash                                     $         179,569 $         157,090
Receivables                                        777,483           811,376
Inventories                                        553,585           551,674
Other current assets                               129,164           127,235
                                         ----------------- -----------------
    Total current assets                         1,639,801         1,647,375
Property, plant and equipment                      564,205           562,363
Goodwill and intangible assets                     969,431           975,680
Other non-current assets                            53,336            51,677
                                         ----------------- -----------------
  Total assets                           $       3,226,773 $       3,237,095
                                         ================= =================
Short-term borrowings                    $         104,155 $         105,088
Current installments of long-term debt               8,642             3,382
Contract loss reserves                              38,875            44,228
Other current liabilities                          540,070           570,532
                                         ----------------- -----------------
  Total current liabilities                        691,742           723,230
Long-term debt                                     586,063           600,687
Other long-term liabilities                        371,276           377,413
                                         ----------------- -----------------
  Total liabilities                              1,649,081         1,701,330
Shareholders' equity                             1,577,692         1,535,765
                                         ----------------- -----------------
  Total liabilities and shareholders'                                       
   equity                                $       3,226,773 $       3,237,095
                                         ================= =================

FAX -716/687-4457 
Ann Marie Luhr
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