Moog's Third Quarter Sales and EPS Higher

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 
 
 
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