Exhibit 99.1
MOOG'S SECOND QUARTER EPS INCREASE 14%
EAST AURORA, N.Y., April 22 /PRNewswire-FirstCall/ -- Moog Inc. (NYSE: MOG.A
and MOG.B) announced today second quarter earnings of $15.8 million, up 12% from
$14.1 million one year earlier. On a diluted per share basis, earnings per share
were $.40 for the quarter, up 14.3% over $.35 per share of a year ago, after
adjustment for the recently completed three-for-two stock split. Sales for the
quarter of $255 million were up 9%, or $21 million, from last year's level.
On a year-to-date basis, Moog's earnings per share of $.78 were up 16.4%
from $.67 in the year previous. Sales for the six months were up 9.7% to $505
million.
Aircraft segment sales of $109 million were up $7.3 million from the same
quarter last year. The increase was almost entirely on the commercial side where
aftermarket rose more than $2 million; increases on Boeing and Airbus commercial
aircraft, along with business jets, also contributed to the gain. Military
revenues were up slightly, primarily as a result of gains on the F-15, Black
Hawk, A400M, and aftermarket, offsetting expected lower production on both the
F-35 and V-22. Margins declined due to contract loss reserves taken on two
aircraft development programs.
Space and Defense segment revenues for the quarter were $30.9 million, an
increase of $4.5 million. The majority of the increase was in military
satellites. Margins surged in the quarter as a result of increased volume in
production of mechanisms for satellites.
Sales for the Company's Industrial segment were $78.8 million, up $5.7
million. Many of the segment's product lines increased, with turbines growing
nearly $2 million. Material test, metal forming, and aftermarket also grew, with
each experiencing million dollar plus gains. Margins were up slightly.
In the Components segment, sales were $36.6 million, up $3.7 million.
Medical equipment led the way, increasing more than $2 million. Products for the
space and defense industry grew also, as did those for military aircraft.
Margins were up significantly.
The current backlog level of $482 million was up $.4 million from the prior
quarter and $47.6 million from the same quarter a year ago.
"Fiscal '05 is right on track," said R. T. Brady, Chairman & CEO.
"Commercial aircraft is making up for the lull on the military side. Military
satellites are helping Space and Defense improve its performance. Our Industrial
segment is posting strong real growth, in addition to the benefit from the
currency effect. And Components is performing extremely well both in terms of
sales and margins. In view of these positive results, we're raising our
mid-range sales guidance by $7 million from $998 million to a little over $1
billion. We're maintaining our post-split range of earnings at $1.60 to $1.66
for the year. "
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, and medical equipment.
Additional information about the company's quarter ended March 26, 2005 can
be found on its website, http://www.moog.com, including a text of its prepared
conference call remarks.
Cautionary Statement
Information in this release 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,"
"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 (i)
fluctuations in general business cycles for commercial aircraft, military
aircraft, space and defense products and industrial capital goods, (ii) the
Company's dependence on government contracts, that may not be fully funded or
may be terminated, (iii) the Company's dependence on certain major customers,
such as The Boeing Company and Lockheed Martin, for a significant percentage of
its sales, (iv) the possibility that the demand for the Company's products may
be reduced if the Company is unable to adapt to technological change, (v)
intense competition which may require the Company to lower prices or offer more
favorable terms of sale, (vi) the Company's significant indebtedness, which
could limit its operational and financial flexibility, (vii) the possibility
that new product and research and development efforts may not be successful
which could reduce the Company's sales and profits, (viii) 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, (ix)
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, (x) 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, (xi) 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, (xii) the possibility that the Company's
subcontractors may fail to perform their contractual obligations, which may
adversely affect the Company's contract performance and the Company's ability to
obtain future business, (xiii) the Company's ability to successfully identify
and consummate acquisitions and integrate the acquired businesses, (xiv) the
Company's dependence on its management team and key personnel, (xv) the
possibility of a catastrophic loss of one or more of the Company's manufacturing
facilities, (xvi) the possibility that future terrorist attacks, wars or other
civil disturbances could negatively impact the Company's business, (xvii) the
Company's operations in foreign countries could expose the Company to political
risks and adverse changes in local, legal, tax and regulatory schemes, (xviii)
the possibility that government regulation could limit our ability to sell our
products outside the United States, (xix) 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 and in damage to the Company's
reputation, (xx) the possibility that litigation may result unfavorably to the
Company, (xxi) foreign currency fluctuations in those countries in which the
Company does business and other risks associated with international operations,
and (xxii) 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 Six Months Ended
--------------------------- ----------------------------
March 26, March 31, March 26, March 31,
2005 2004 2005 2004
------------ ------------ ------------ ------------
Net sales $ 255,237 $ 234,069 $ 504,540 $ 460,054
Cost of sales 174,344 160,209 348,227 319,697
Gross profit 80,893 73,860 156,313 140,357
Research and development 10,133 7,498 19,142 14,266
Selling, general and
administrative 43,819 42,702 84,738 80,433
Interest 3,170 2,834 5,879 6,019
Other 10 413 (34) 888
57,132 53,447 109,725 101,606
Earnings before income
taxes 23,761 20,413 46,588 38,751
Income taxes 7,991 6,328 15,843 12,010
Net earnings $ 15,770 $ 14,085 $ 30,745 $ 26,741
Net earnings per share
Basic $ .41 $ .36 $ .80 $ .69
Diluted $ .40 $ .35 $ .78 $ .67
Average common shares
outstanding
Basic 38,607,521 38,978,142 38,597,874 38,894,426
Diluted 39,528,401 39,817,820 39,486,535 39,719,017
MOOG INC.
CONSOLIDATED SALES AND OPERATING PROFIT
(dollars in thousands)
Three Months Ended Six Months Ended
--------------------------- ----------------------------
March 26, March 31, March 26, March 31,
2005 2004 2005 2004
------------ ------------ ------------ ------------
Net Sales
Aircraft Controls $ 109,003 $ 101,699 $ 215,183 $ 204,302
Space & Defense Controls 30,901 26,352 64,083 54,766
Industrial Controls 78,761 73,106 153,631 136,980
Components 36,572 32,912 71,643 64,006
Net sales $ 255,237 $ 234,069 $ 504,540 $ 460,054
Operating Profit and Margins
Aircraft Controls $ 15,043 $ 15,629 $ 30,156 $ 32,548
13.8% 15.4% 14.0% 15.9%
Space & Defense Controls 3,402 298 6,657 692
11.0% 1.1% 10.4% 1.3%
Industrial Controls 7,281 6,609 12,756 11,353
9.2% 9.0% 8.3% 8.3%
Components 5,032 4,022 9,682 6,671
13.8% 12.2% 13.5% 10.4%
Total operating profit 30,758 26,558 59,251 51,264
12.1% 11.3% 11.7% 11.1%
Deductions from Operating
Profit
Interest expense 3,170 2,834 5,879 6,019
Corporate expenses and
other 3,827 3,311 6,784 6,494
Earnings before Income Taxes $ 23,761 $ 20,413 $ 46,588 $ 38,751
Note -- Prior period amounts have been restated to conform to the transfer
of the defense controls product line to the Space and Defense Controls segment.
These amounts were previously included in Industrial Controls.
MOOG INC.
CONSOLIDATED BALANCE SHEETS
(dollars in thousands)
March 26, September 25,
2005 2004
-------------- --------------
Cash $ 72,319 $ 56,701
Receivables 277,187 261,776
Inventories 201,819 189,649
Other current assets 44,991 40,963
Total current assets 596,316 549,089
Property, plant and equipment 248,865 246,743
Goodwill 291,712 288,563
Other non-current assets 46,057 40,533
Total assets
$ 1,182,950 $ 1,124,928
Notes payable $ 885 $ 923
Current installments of long-term debt 17,304 18,700
Contract loss reserves 14,269 14,311
Other current liabilities 223,180 193,350
Total current liabilities 255,638 227,284
Long-term debt 274,395 291,666
Other long-term liabilities 140,955 134,322
Total liabilities 670,988 653,272
Shareholders' equity 511,962 471,656
Total liabilities and shareholders'
equity $ 1,182,950 $ 1,124,928
SOURCE Moog Inc.
-0- 04/22/2005
/CONTACT: Susan Johnson, Moog Inc., +1-716-687-4225/
/Web site: http://www.moog.com /
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