Exhibit 99.1
Moog's Fourth Quarter Net Earnings Up 15%
Moog's Year-End Net Earnings Up 14%
EAST AURORA, N.Y., Nov. 7 /PRNewswire-FirstCall/ -- Moog Inc.
(NYSE: MOG.A and MOG.B) announced today fourth quarter earnings of $11.8
million, an increase of 15.5% over last year's fourth quarter. Earnings per
share were $.75, an increase of 12%. In September 2003, just before the end of
the fiscal year, Moog sold more than 2 million new shares of stock, with the
result that the average shares outstanding were slightly higher this year than
a year ago.
Total sales for the quarter of $193 million were up $7 million compared
with last year. For the Aircraft segment, sales increased by more than $11
million in the quarter and margins continued at a high level. A $23 million
increase in military aircraft sales more than offset declines in other parts of
the business. Sales on the F-35 Joint Strike Fighter Program increased by
$12 million over last year's fourth quarter. Sales increases on the V-22
Osprey and the F/A-18E/F Super Hornet, and the military aftermarket added to
the upsurge. Sales of equipment for commercial aircraft, including Boeing
commercial OEM and Biz Jets, are down 31% from a year ago.
In the Space segment, sales in the fourth quarter were $3 million lower
than a year ago. Last year's fourth quarter included work on a number of
contracts which are now complete -- in particular, the Space Station Crew
Return Vehicle and the AGM-142 Tactical Missile. Margins in the Space segment
were also lower, reflecting lower sales volume.
Sales in the Industrial segment were $1 million lower than last year.
Reduced activity in turbine controls was offset by increases in a number of the
major Industrial product lines. Cost-reduction activities begun in 2002 are
now having an effect and the result is improving industrial margins.
For the fiscal year 2003, Moog's net earnings were $42.7 million, an
increase of 14% over last year. Earnings per share were $2.76, increasing by
more than 10%. As noted above, the sale of shares in early September 2003
increased average shares outstanding this year compared with last.
Sales of $755 million increased by $37 million, entirely the result of
military aircraft and the impact of a stronger Euro on Industrial sales. For
the year, margins in Aircraft were slightly lower than last year, but at a
relatively high level compared to the Company's history. Space margins fell
sharply from '02 and are now at a break-even level. Industrial margins
improved over the course of fiscal '03.
Year-end backlog of $368 million was up $3 million from a year earlier.
The Company is reaffirming its guidance for fiscal '04, including the
impact of the acquisition of the Litton Poly-Scientific Division of Northrop
Grumman. The Company is forecasting fiscal '04 revenues that will range
between $920 million and $940 million. Net earnings are forecasted to range
between $54 million and $58 million, which would yield earnings per share of
$3.10 to $3.30.
"The last couple of years have been a challenging period for some of our
product lines," said R. T. Brady, Chairman & C.E.O. "But, the strength in our
military aircraft product line has carried us through. In fiscal '04, we'll
have continued strength on the military side and we're optimistic that we will
see a modest upturn in our Industrial sales in the U.S. and around the globe.
We're excited about the prospects for our new acquisition and we look forward
to fiscal '04 with optimism and enthusiasm."
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.
Cautionary Statement
This news release contains forward-looking statements within the meaning of
the Private Securities Litigation Reform Act of 1995. Information in this
release that does not consist of historical facts, including statements
accompanied by or containing words such as "giving effect to," "may," "will,"
"should," "believes," "expects," "expected," "intends," "plans," "projects,"
"estimates," "predicts," "potential," "outlook," "forecast," "anticipates,"
"presume," and "assume," are forward-looking statements. These 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) the
risk that the historical unaudited financial information of the Poly-Sci
division provided by the seller to Moog is inaccurate or incomplete;
uncertainty relating to the allocation of the purchase price to the Poly-Sci
division assets, the amortization of intangible assets resulting from that
allocation and the impact of fair value purchase accounting adjustments; the
risk that Moog will assume unknown liabilities in connection with the
acquisition of the Poly-Sci division and that indemnification from the seller
for those liabilities will be limited or unavailable; the risk that the Poly-
Sci business will not be successfully integrated on a timely basis or at all,
including the risk that Poly-Sci's customers, suppliers and key employee
relationships are not preserved, and the risk that the Poly-Sci business will
not perform in accordance with expectations, (ii) fluctuations in general
business cycles and demand for capital goods, (iii) Moog's dependence on
government contracts, that may not be fully funded or may be terminated, (iv)
Moog's dependence on certain major customers, such as The Boeing Company, for a
significant percentage of its sales, (v) Moog's dependence on the commercial
aircraft industry which is highly cyclical and sensitive to fuel price
increases, labor disputes, and economic conditions, (vi) the possibility that
advances in technology could reduce the demand for certain of Moog's products,
specifically hydraulic-based motion controls, (vii) intense competition which
may require Moog to compete by lowering prices or by offering more favorable
terms of sale, (viii) Moog's significant indebtedness, which could limit its
operational and financial flexibility, (ix) higher pension costs and increased
cash funding requirements which could occur in future years if future actual
plan results differ from assumptions used for Moog's defined benefit plans,
including returns on plan assets and interest rates, (x) a write-off of all or
part of Moog's goodwill which could adversely affect Moog's operating results
and net worth and cause it to violate covenants in its bank agreements, (xi)
the potential for substantial fines and penalties or suspension or debarment
from future contracts in the event Moog does not comply with regulations
relating to defense industry contracting, (xii) 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, (xiii) Moog's ability to
successfully identify and consummate acquisitions and integrate the acquired
businesses, (xiv) the possibility of a catastrophic loss of one or more of
Moog's manufacturing facilities, (xv) the impact of product liability claims
related to Moog's products used in applications where failure can result in
significant property damage, injury or death, (xvi) foreign currency
fluctuations in those countries in which Moog does business and other risks
associated with international operations, and (xvii) the cost of compliance
with environmental laws. 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 in this release. Given these factors,
risks and uncertainties, investors should not place undue reliance on forward-
looking statements as predictive of future results. Moog disclaims 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
Sept. 27, Sept. 28, Sept. 27, Sept. 28,
2003 2002 2003 2002
Net sales $192,835 $185,844 $755,490 $718,962
Cost of sales 132,880 126,728 520,304 488,377
Gross profit 59,955 59,116 235,186 230,585
Research and development 7,437 8,305 30,497 33,035
Selling, general and
administrative 33,654 28,877 128,365 117,284
Interest 2,820 6,262 17,122 26,242
Other expense, net 340 866 953 1,034
44,251 44,310 176,937 177,595
Earnings before income taxes 15,704 14,806 58,249 52,990
Income taxes 3,863 4,553 15,554 15,391
Net earnings $11,841 $10,253 $42,695 $37,599
Net earnings per share
Basic $0.76 $0.68 $2.80 $2.54
Diluted $0.75 $0.67 $2.76 $2.50
Average common shares
outstanding
Basic 15,488,343 15,114,280 15,256,912 14,809,846
Diluted 15,786,365 15,373,063 15,493,425 15,033,596
MOOG INC.
CONSOLIDATED SALES AND OPERATING PROFIT
(dollars in thousands)
Three Months Ended Twelve Months Ended
Sept. 27, Sept. 28, Sept. 27, Sept. 28,
2003 2002 2003 2002
Net Sales
Aircraft Controls $108,201 $97,022 $404,017 $359,299
Space Controls 19,825 22,752 84,499 107,149
Industrial Controls 64,809 66,070 266,974 252,514
Net Sales $192,835 $185,844 $755,490 $718,962
Operating Profit
Aircraft Controls $17,859 $19,109 $70,295 $65,403
Space Controls (784) 1,283 493 12,283
Industrial Controls 4,296 3,729 16,920 14,007
Total Operating Profit $21,371 $24,121 $87,708 $91,693
Margin %
Aircraft Controls 16.5% 19.7% 17.4% 18.2%
Space Controls (4.0%) 5.6% .6% 11.5%
Industrial Controls 6.6% 5.6% 6.3% 5.5%
Total Margin % 11.1% 13.0% 11.6% 12.8%
MOOG INC.
CONSOLIDATED BALANCE SHEETS
(dollars in thousands)
Sept. 27, Sept. 28,
2003 2002
Cash $77,491 $15,952
Receivables 262,094 239,636
Inventories 170,578 162,391
Other current assets 42,036 39,520
Total current assets 552,199 457,499
Property, plant and equipment 208,169 202,654
Goodwill 194,937 192,855
Other non-current assets 36,275 32,539
Total assets $991,580 $885,547
Notes payable $10,140 $14,067
Current installments of long-term debt 15,607 17,110
Contract loss reserves 16,147 13,939
Other current liabilities 169,529 136,286
Total current liabilities 211,423 181,402
Long-term debt 230,913 285,286
Other long-term liabilities 125,096 118,853
Total liabilities 567,432 585,541
Shareholders' equity 424,148 300,006
Total liabilities and shareholders'
equity $991,580 $885,547
SOURCE Moog Inc.
-0- 11/07/2003
/CONTACT: Susan Johnson of Moog Inc., +1-716-687-4225 /
(MOGA MOGB)
CO: Moog Inc.
ST: New York
IN: ARO AIR MAC
SU: ERN ERP