Exhibit 99.1
Moog's First Quarter Earnings Per Share Up 13%
EAST AURORA, N.Y., Feb. 2 /PRNewswire-FirstCall/ -- Moog Inc.
(NYSE: MOG.A and MOG.B) announced today a first quarter profit of
$12.7 million, up 29% from $9.8 million one year earlier. Earnings per share
of $.72 were up 13% from $.64 a year ago. There are more average shares
outstanding this year than the same quarter a year ago as a result of the sale
of a little more than two million Class A shares in September 2003. Sales for
the quarter of $226 million were positively affected by Moog's acquisition of
Northrop Grumman's Poly-Scientific division. Consolidated sales rose by
$46 million from last year's level, an increase of 26%.
Aircraft revenues of $103 million were up 10% or $9 million. Military
aircraft revenues rose by $18 million, primarily as a result of increased
revenues on Lockheed Martin's F-35 Joint Strike Fighter, as well as by higher
sales in other military aircraft programs including the Japanese F-2,
F/A18-E/F, and V-22. Commercial aircraft sales declined $9 million from the
year earlier. Operating margins were down from their unusually high level of
the year earlier.
In the Space segment, revenues of $22 million were down $1 million.
Decreased sales in satellites, space vehicles, and national missile defense
programs were offset slightly by strong sales in tactical missiles. Margins
were adversely affected by a provision established to recall 508 attitude
control valves used on satellites. Absent this reserve, margins in Space were
in positive territory, performing better than they have in the past three
quarters.
Industrial sales increased $7 million from the year earlier to $70 million,
primarily as a result of very strong overseas currencies. Plastics,
metal-forming, and sales through distributors contributed to the increase as
well, offsetting declines in sales for military vehicles and turbines.
Industrial margins continued their trend of steady improvement, boosted
particularly by the absence of costs experienced in '03 that were associated
with moving an acquired product line to its new facilities.
The first quarter also includes the inaugural results of Moog's Litton
Poly-Scientific acquisition, renamed the Components Group, which now comprises
the company's fourth reporting segment. Sales in the quarter for Components
were $31 million. Margins exceeded expectations.
Backlog for the quarter was strong, growing $61 million from a year ago to
$430 million. Of the increase, $46 million was due to the addition of Moog's
new segment.
"We're off to a great start in fiscal '04," said R.T. Brady, Chairman and
CEO. "Our new Components Group performed very well, giving a big boost to
sales that were already up 8% organically. The Joint Strike Fighter, once
again, was a major contributor to our results. Looking ahead, the continuing
trend of improvement in our Industrial business also bodes well for '04. The
company's performance in the first quarter allows us to confidently re-confirm
our previously published guidance for the year of sales in the range of $920
million to $940 million and earnings per share in the range of $3.10 to $3.30."
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.
Additional information about the company's quarter ended December 31, 2003
can be found on its website, www.moog.com, including a text of its prepared
conference call remarks.
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) risks
associated with the recent Poly-Scientific acquisition, including, without
limitation, the risk that representations made by the seller of the business
are untrue or inaccurate or that the Company assumed unknown liabilities in
connection with the acquisition and that indemnification from the seller for
those matters is limited or unavailable, the risk that Poly-Scientific business
will not be successfully integrated on a timely basis or at all, which includes
the risk that Poly-Scientific's customer, supplier, and key employee
relationships are not preserved, and the risk that the Poly-Sci business does
not perform in accordance with the Company's expectations, (ii) fluctuations in
general business cycles and demand for capital goods, (iii) the Company's
dependence on government contracts, that may not be fully funded or may be
terminated, (iv) the Company's dependence on certain major customers, such as
The Boeing Company and Lockheed Martin, for a significant percentage of its
sales, (v) the Company'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 the Company's products, specifically
hydraulic-based motion controls, (vii) intense competition which may require
the Company to compete by lowering prices or by offering more favorable terms
of sale, (viii) the Company's significant indebtedness, which could limit its
operational and financial flexibility or which is at variable rates that may
increase, (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 the Company's defined benefit plans, including returns on
plan assets and interest rates, (x) a write-off of all or part of the Company's
goodwill which could adversely affect the Company'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 the Company 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) the Company's
ability to successfully identify and consummate acquisitions and integrate the
acquired businesses and the risk that known liabilities will be assumed by the
Company in connection with acquisitions, including liabilities for which
indemnification from the seller may be limited or unavailable, (xiv) the
possibility of a catastrophic loss of one or more of the Company's
manufacturing facilities, (xv) the impact of product liability claims related
to the Company's products used in applications where failure can result in
significant property damage, injury or death, (xvi) the possibility that
litigation may result unfavorably to the Company (xvii) foreign currency
fluctuations in those countries in which the Company does business and other
risks associated with international operations, and (xviii) 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. The
Company 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
December 31, December 31,
2003 2002
Net sales $225,985 $179,683
Cost of sales 159,488 123,504
Gross profit 66,497 56,179
Research and development 6,768 7,426
Selling, general and administrative 37,731 29,557
Interest 3,185 5,374
Other 475 43
48,159 42,400
Earnings before income taxes 18,338 13,779
Income taxes 5,682 4,001
Net earnings $12,656 $9,778
Net earnings per share
Basic $0.73 $0.65
Diluted $0.72 $0.64
Average common shares outstanding
Basic 17,249,204 15,155,164
Diluted 17,608,984 15,342,911
MOOG INC.
CONSOLIDATED SALES AND OPERATING PROFIT
(dollars in thousands)
Three Months Ended
December 31, December 31,
2003 2002
Net Sales
Aircraft Controls $102,603 $93,143
Space Controls 21,924 23,096
Industrial Controls 70,364 63,444
Components 31,094 -
Net Sales $225,985 $179,683
Operating Profit
Aircraft Controls $16,919 $17,679
Space Controls (816) 1,309
Industrial Controls 5,954 2,785
Components 2,649 -
Total Operating Profit $24,706 $21,773
Margin %
Aircraft Controls 16.5% 19.0%
Space Controls (3.7%) 5.7%
Industrial Controls 8.5% 4.4%
Components 8.5% -
Total Margin % 10.9% 12.1%
MOOG INC.
CONSOLIDATED BALANCE SHEETS
(dollars in thousands)
December 31, September 27,
2003 2003
Cash $19,171 $77,491
Receivables 280,556 262,094
Inventories 197,996 170,578
Other current assets 43,655 42,036
Total current assets 541,378 552,199
Property, plant and equipment 251,423 208,169
Goodwill 290,025 194,937
Other non-current assets 43,695 36,275
Total assets $1,126,521 $991,580
Notes payable $1,970 $10,140
Current installments of long-term debt 17,465 15,607
Contract loss reserves 18,620 16,147
Other current liabilities 177,010 169,529
Total current liabilities 215,065 211,423
Long-term debt 334,210 230,913
Other long-term liabilities 130,301 125,096
Total liabilities 679,576 567,432
Shareholders' equity 446,945 424,148
Total liabilities and shareholders'
equity $1,126,521 $991,580
SOURCE Moog Inc.
-0- 02/02/2004
/CONTACT: Susan Johnson of Moog Inc., +1-716-687-4225, fax,
+1-716-687-4457/
/Web site: http://www.moog.com /
(MOGA MOGB)
CO: Moog Inc.
ST: New York
IN: CPR NET ARO ECP SEM
SU: ERN