Moog's Second Quarter EPS Up 10%

Apr 25, 2001, 01:00 ET from Moog Inc.

    EAST AURORA, N.Y., April 25 /PRNewswire/ -- Moog Inc. (Amex:   MOG.A)
 announced today second quarter earnings of $.77 cents per share on second
 quarter net earnings of $6.8 million, up 10% from last year's $.70 cents per
 share on net earnings of $6.3 million.
     Sales of $183 million were up 13% compared to last year.  The sales
 increase of $22 million included $12 million from recent acquisitions and
 $10 million in core business growth.
     Aircraft sales alone grew by $12 million to $87 million.  Sales of
 original equipment to the Boeing Commercial Airplane Company accounted for
 half the increase.  The balance was shared by a number of military aircraft
 programs and increased aftermarket sales.  Aircraft margins increased slightly
 from a year ago.  The current aircraft product mix is favorable, and the
 Company is engaged in a number of cost-reduction initiatives.
     In the Space Systems segment, revenues of $26 million were down
 $3 million, as expected, due to the completion of work on the Titan IV
 Program.  Offsetting this decline, the Company's satellite business at
 $8 million was double the depressed level of a year ago.  Operating margins
 were up from a year ago as the Company's cost performance improved in the
 production of satellite controls.
     Industrial sales of $69 million were up 22% from a year ago.  This
 $13 million increase was the result of three recent acquisitions.  Moog
 acquired Vickers Electric Systems in Casella, Italy, one month into fiscal
 '01.  The Bosch Radial Piston Pump product line and Whitton Technology, a
 provider of gear pumps and control packages for the turbine industry, were
 acquired one month into the second quarter of '01.  Beyond sales generated by
 the acquisitions, increased activity in both flight training and entertainment
 simulators, and in material test equipment offset a slower pace in controls
 for plastics machines.  The industrial sales increase would have been
 $3 million greater were it not for the foreign currency effects.  Much of the
 Company's industrial business occurs in Europe and Japan where currencies were
 much stronger a year ago.  Industrial margins saw a decline as a result of a
 less favorable mix of products and price pressure in turbine controls.
     Increased backlog in all three segments resulted in a 12% increase from a
 year ago, to $367 million.
     On a year-to-date basis, earnings of $1.51 per share were up 8% on a sales
 increase of 7%, to $340 million.
     "Fiscal 2001 is progressing very nicely," said R. T. Brady, Chairman and
 CEO.  "Aircraft production is increasing as we anticipated.  We're seeing a
 resurgence in activity in the satellite business and all three of our recent
 industrial acquisitions are meeting all our expectations.  We're on track to
 meet our projection of $3.16 for fiscal 2001, and we're anticipating an even
 better year in 2002."
 
     Moog Inc. is a worldwide manufacturer of precision control components and
 systems.  Moog's high performance actuation products control military and
 commercial aircraft, satellites and space vehicles, launch vehicles, missiles
 and automated industrial machinery.
 
     Moog Inc. Cautionary Statement
     This news release (the foregoing remarks) contains "forward-looking
 statements" within the meaning of the Private Securities Litigation Reform Act
 of 1995.  Information, included herein or incorporated by reference, that are
 not historical facts, including statements accompanied by or containing words
 such as "believes," "expects," "intends," "plans," "projects," "estimates,"
 "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,
 demand for capital goods and government funding of procurement programs in
 which the Company participates, (ii) the dependency on certain major
 customers, such as Boeing and certain U.S. Government contractors, for a
 significant percentage of its sales, (iii) intense competition in the
 Company's business which, depending on product line, may require the Company
 to compete by lowering prices or by advancing its technologies; several of the
 Company's competitors are substantially larger than the Company and have
 greater financial resources with which to compete, (iv) the potential for
 substantial fines and penalties or debarment from future contracts in the
 event the Government's procurement rules are not followed, (v) the potential
 for cost overruns on development jobs and actual results that may differ from
 estimates used in contract accounting, (vi) the possibility of a catastrophic
 loss of one or more of the Company's manufacturing facilities, (vii) the
 impact of product liability claims related to the Company's products used in
 applications where failure can result in significant property damage, injury
 and death, and (viii) foreign currency fluctuations in those countries in
 which the Company does business which can adversely affect the Company's
 results of operations and financial condition.  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 risks, factors and uncertainties, investors should not place undue
 reliance on forward-looking statements as predictive of future results.  The
 Company disclaims any obligation to update the forward-looking statements made
 herein.
 
                                   MOOG INC.
                      CONSOLIDATED STATEMENTS OF EARNINGS
                  (dollars in thousands except per share data)
 
                                  Three Months Ended      Six Months Ended
                                       March 31,              March 31,
                                   2001         2000        2001        2000
 
     Net sales                   $182,544    $161,061     $340,253   $318,345
     Cost of sales                129,430     111,767      240,467    220,802
     Gross profit                  53,114      49,294       99,786     97,543
 
     Research and development       6,426       6,137       11,234     12,226
     Selling, general and
      administrative               28,128      25,141       52,075     49,797
     Interest                       8,036       8,324       16,154     16,256
     Other expense (income), net       44         223         (192)        75
                                   42,634      39,825       79,271     78,354
 
     Earnings before income taxes  10,480       9,469       20,515     19,189
 
     Income taxes                   3,668       3,214        7,180      6,616
 
     Net earnings                  $6,812      $6,255      $13,335    $12,573
 
     Net earnings per share
       Basic                        $0.78       $0.70        $1.53      $1.41
       Diluted                      $0.77       $0.70        $1.51      $1.40
 
     Average common shares outstanding
       Basic                    8,732,391   8,873,156    8,737,928  8,889,166
       Diluted                  8,830,040   8,944,608    8,827,569  8,968,935
 
 
                                   MOOG INC.
                    CONSOLIDATED SALES AND OPERATING PROFIT
                             (dollars in thousands)
 
                                  Three Months Ended       Six Months Ended
                                       March 31,               March 31,
                                   2001         2000        2001        2000
 
     Sales
       Aircraft                   $87,217     $75,578     $164,477   $152,813
       Space                       26,089      28,795       50,250     57,170
       Industrial                  69,238      56,688      125,526    108,362
     Total Sales                 $182,544    $161,061     $340,253   $318,345
 
     Operating Profit
       Aircraft                   $11,937     $10,106      $24,278    $20,733
       Space                        3,031       3,205        5,850      7,211
       Industrial                   6,288       6,762       11,064     11,808
     Total Operating Profit       $21,256     $20,073      $41,192    $39,752
 
     Margin %
       Aircraft                     13.7%       13.4%        14.8%      13.6%
       Space                        11.6%       11.1%        11.6%      12.6%
       Industrial                    9.1%       11.9%         8.8%      10.9%
     Total Margin %                 11.6%       12.5%        12.1%      12.5%
 
 
                                   MOOG INC.
                          CONSOLIDATED BALANCE SHEETS
                             (dollars in thousands)
 
                                                      As of           As of
                                                    March 31,    September 30,
                                                      2001            2000
 
     Cash                                             $11,923        $13,827
     Receivables                                      236,008        211,463
     Inventories                                      155,286        147,546
     Other current assets                              30,460         30,665
       Total current assets                           433,677        403,501
     Property, plant and equipment                    195,030        188,584
     Other non-current assets                         206,559        199,620
       Total assets                                  $835,266       $791,705
 
 
     Notes payable                                     $2,023         $1,581
     Current installments of long-term debt            16,898         18,609
     Contract loss reserves                            17,786         20,916
     Other current liabilities                        156,478        126,182
       Total current liabilities                      193,185        167,288
     Long-term debt                                   358,813        346,099
     Other long-term liabilities                       55,484         55,764
       Total liabilities                              607,482        569,151
     Shareholders' equity                             227,784        222,554
       Total liabilities and shareholders' equity    $835,266       $791,705
 
                     MAKE YOUR OPINION COUNT -- Click Here
                http://tbutton.prnewswire.com/prn/11690X97981532
 
 

SOURCE Moog Inc.
    EAST AURORA, N.Y., April 25 /PRNewswire/ -- Moog Inc. (Amex:   MOG.A)
 announced today second quarter earnings of $.77 cents per share on second
 quarter net earnings of $6.8 million, up 10% from last year's $.70 cents per
 share on net earnings of $6.3 million.
     Sales of $183 million were up 13% compared to last year.  The sales
 increase of $22 million included $12 million from recent acquisitions and
 $10 million in core business growth.
     Aircraft sales alone grew by $12 million to $87 million.  Sales of
 original equipment to the Boeing Commercial Airplane Company accounted for
 half the increase.  The balance was shared by a number of military aircraft
 programs and increased aftermarket sales.  Aircraft margins increased slightly
 from a year ago.  The current aircraft product mix is favorable, and the
 Company is engaged in a number of cost-reduction initiatives.
     In the Space Systems segment, revenues of $26 million were down
 $3 million, as expected, due to the completion of work on the Titan IV
 Program.  Offsetting this decline, the Company's satellite business at
 $8 million was double the depressed level of a year ago.  Operating margins
 were up from a year ago as the Company's cost performance improved in the
 production of satellite controls.
     Industrial sales of $69 million were up 22% from a year ago.  This
 $13 million increase was the result of three recent acquisitions.  Moog
 acquired Vickers Electric Systems in Casella, Italy, one month into fiscal
 '01.  The Bosch Radial Piston Pump product line and Whitton Technology, a
 provider of gear pumps and control packages for the turbine industry, were
 acquired one month into the second quarter of '01.  Beyond sales generated by
 the acquisitions, increased activity in both flight training and entertainment
 simulators, and in material test equipment offset a slower pace in controls
 for plastics machines.  The industrial sales increase would have been
 $3 million greater were it not for the foreign currency effects.  Much of the
 Company's industrial business occurs in Europe and Japan where currencies were
 much stronger a year ago.  Industrial margins saw a decline as a result of a
 less favorable mix of products and price pressure in turbine controls.
     Increased backlog in all three segments resulted in a 12% increase from a
 year ago, to $367 million.
     On a year-to-date basis, earnings of $1.51 per share were up 8% on a sales
 increase of 7%, to $340 million.
     "Fiscal 2001 is progressing very nicely," said R. T. Brady, Chairman and
 CEO.  "Aircraft production is increasing as we anticipated.  We're seeing a
 resurgence in activity in the satellite business and all three of our recent
 industrial acquisitions are meeting all our expectations.  We're on track to
 meet our projection of $3.16 for fiscal 2001, and we're anticipating an even
 better year in 2002."
 
     Moog Inc. is a worldwide manufacturer of precision control components and
 systems.  Moog's high performance actuation products control military and
 commercial aircraft, satellites and space vehicles, launch vehicles, missiles
 and automated industrial machinery.
 
     Moog Inc. Cautionary Statement
     This news release (the foregoing remarks) contains "forward-looking
 statements" within the meaning of the Private Securities Litigation Reform Act
 of 1995.  Information, included herein or incorporated by reference, that are
 not historical facts, including statements accompanied by or containing words
 such as "believes," "expects," "intends," "plans," "projects," "estimates,"
 "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,
 demand for capital goods and government funding of procurement programs in
 which the Company participates, (ii) the dependency on certain major
 customers, such as Boeing and certain U.S. Government contractors, for a
 significant percentage of its sales, (iii) intense competition in the
 Company's business which, depending on product line, may require the Company
 to compete by lowering prices or by advancing its technologies; several of the
 Company's competitors are substantially larger than the Company and have
 greater financial resources with which to compete, (iv) the potential for
 substantial fines and penalties or debarment from future contracts in the
 event the Government's procurement rules are not followed, (v) the potential
 for cost overruns on development jobs and actual results that may differ from
 estimates used in contract accounting, (vi) the possibility of a catastrophic
 loss of one or more of the Company's manufacturing facilities, (vii) the
 impact of product liability claims related to the Company's products used in
 applications where failure can result in significant property damage, injury
 and death, and (viii) foreign currency fluctuations in those countries in
 which the Company does business which can adversely affect the Company's
 results of operations and financial condition.  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 risks, factors and uncertainties, investors should not place undue
 reliance on forward-looking statements as predictive of future results.  The
 Company disclaims any obligation to update the forward-looking statements made
 herein.
 
                                   MOOG INC.
                      CONSOLIDATED STATEMENTS OF EARNINGS
                  (dollars in thousands except per share data)
 
                                  Three Months Ended      Six Months Ended
                                       March 31,              March 31,
                                   2001         2000        2001        2000
 
     Net sales                   $182,544    $161,061     $340,253   $318,345
     Cost of sales                129,430     111,767      240,467    220,802
     Gross profit                  53,114      49,294       99,786     97,543
 
     Research and development       6,426       6,137       11,234     12,226
     Selling, general and
      administrative               28,128      25,141       52,075     49,797
     Interest                       8,036       8,324       16,154     16,256
     Other expense (income), net       44         223         (192)        75
                                   42,634      39,825       79,271     78,354
 
     Earnings before income taxes  10,480       9,469       20,515     19,189
 
     Income taxes                   3,668       3,214        7,180      6,616
 
     Net earnings                  $6,812      $6,255      $13,335    $12,573
 
     Net earnings per share
       Basic                        $0.78       $0.70        $1.53      $1.41
       Diluted                      $0.77       $0.70        $1.51      $1.40
 
     Average common shares outstanding
       Basic                    8,732,391   8,873,156    8,737,928  8,889,166
       Diluted                  8,830,040   8,944,608    8,827,569  8,968,935
 
 
                                   MOOG INC.
                    CONSOLIDATED SALES AND OPERATING PROFIT
                             (dollars in thousands)
 
                                  Three Months Ended       Six Months Ended
                                       March 31,               March 31,
                                   2001         2000        2001        2000
 
     Sales
       Aircraft                   $87,217     $75,578     $164,477   $152,813
       Space                       26,089      28,795       50,250     57,170
       Industrial                  69,238      56,688      125,526    108,362
     Total Sales                 $182,544    $161,061     $340,253   $318,345
 
     Operating Profit
       Aircraft                   $11,937     $10,106      $24,278    $20,733
       Space                        3,031       3,205        5,850      7,211
       Industrial                   6,288       6,762       11,064     11,808
     Total Operating Profit       $21,256     $20,073      $41,192    $39,752
 
     Margin %
       Aircraft                     13.7%       13.4%        14.8%      13.6%
       Space                        11.6%       11.1%        11.6%      12.6%
       Industrial                    9.1%       11.9%         8.8%      10.9%
     Total Margin %                 11.6%       12.5%        12.1%      12.5%
 
 
                                   MOOG INC.
                          CONSOLIDATED BALANCE SHEETS
                             (dollars in thousands)
 
                                                      As of           As of
                                                    March 31,    September 30,
                                                      2001            2000
 
     Cash                                             $11,923        $13,827
     Receivables                                      236,008        211,463
     Inventories                                      155,286        147,546
     Other current assets                              30,460         30,665
       Total current assets                           433,677        403,501
     Property, plant and equipment                    195,030        188,584
     Other non-current assets                         206,559        199,620
       Total assets                                  $835,266       $791,705
 
 
     Notes payable                                     $2,023         $1,581
     Current installments of long-term debt            16,898         18,609
     Contract loss reserves                            17,786         20,916
     Other current liabilities                        156,478        126,182
       Total current liabilities                      193,185        167,288
     Long-term debt                                   358,813        346,099
     Other long-term liabilities                       55,484         55,764
       Total liabilities                              607,482        569,151
     Shareholders' equity                             227,784        222,554
       Total liabilities and shareholders' equity    $835,266       $791,705
 
                     MAKE YOUR OPINION COUNT -- Click Here
                http://tbutton.prnewswire.com/prn/11690X97981532
 
 SOURCE  Moog Inc.