Exhibit 99.2
MOOG'S THIRD QUARTER EPS INCREASE 14%
EAST AURORA, N.Y., July 27 /PRNewswire-FirstCall/ -- Moog Inc. (NYSE: MOG.A
and MOG.B) announced today third quarter earnings of $16.7 million, up 12% from
$14.8 million one year earlier. Earnings per share were $.42 for the quarter, up
14% over $.37 per share of a year ago, after adjustment for the three-for-two
stock split completed on April 1, 2005. Sales for the quarter of $266 million
were up 11% from $239 million last year.
On a year-to-date basis, Moog's earnings per share of $1.20 were up 14% from
$1.05 in the year previous. Sales for the nine months were up 10% to $771
million.
Aircraft segment sales of $113 million were up $11 million from the same
quarter last year due to increases in both military and commercial work. The
increase on the military side was mostly due to higher sales on the F-15. Work
on the F-35 Joint Strike Fighter and Airbus A400M also contributed to the higher
level of sales. On the commercial side, increases on the Boeing 7-series
aircraft sales, plus a sharp increase in aftermarket, contributed to the rise in
revenues. Business jets were about even with the prior year. Margins were down
slightly due to heavy expenditures on both the 787 Dreamliner and the X-47
unmanned combat aerial vehicle.
Space and Defense segment revenues for the quarter were $31 million, up
slightly from a year ago. Increases in satellite mechanisms offset a decrease in
sales of defense controls. Margins decreased in the quarter as a result of
decreased volume in production of defense controls.
Sales for the Company's Industrial segment were $81 million, up $9 million
from the year earlier. Almost all of the segment's major product lines
increased, with industrial power turbines and heavy industry each gaining $2
million. Plastics, simulators, automotive, and aftermarket grew as well. Margins
were up slightly as a result of increased volume.
In the Components segment, sales were up 22% to $40 million, an increase of
$7 million. Products for military aircraft, the space and defense industry, and
medical markets all grew. Margins rose nicely as a result of the increased
volume.
The current backlog level of $473 million was down from $482 million in the
prior quarter and up $34 million from the same quarter a year ago.
"Fiscal '05 continues to be a very busy year for us," said R. T. Brady,
Chairman & CEO. "Our military aircraft sales are stronger than we thought they
would be at this point and commercial continues its rebound. Military satellites
are helping our Space and Defense segment. Our Industrial segment posted strong
real growth. 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 $29 million to $1.035 billion. We're maintaining our
post-split range of earnings per share guidance at $1.63 for the year."
For fiscal year '06, which begins in October 2005, the company projects
sales in a range from $1.162 billion to $1.182 billion. Mid-range earnings per
share are forecast to increase 12% to $1.83, between $1.79 and $1.87 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 June 25, 2005 can
be found on its website, http://www.moog.com, including a text of its prepared
conference call remarks.
Cautionary Statement
Information included herein or incorporated by reference 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)
our dependence on government contracts that may not be fully funded or may be
terminated, (iii) our dependence on certain major customers, such as The Boeing
Company and Lockheed Martin, for a significant percentage of our sales, (iv) the
possibility that the demand for our products may be reduced if we are unable to
adapt to technological change, (v) intense competition which may require us to
lower prices or offer more favorable terms of sale, (vi) our significant
indebtedness which could limit our operational and financial flexibility, (vii)
the possibility that new product and research and development efforts may not be
successful which could reduce our 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 our defined benefit
pension plans, including returns on plan assets and discount rates, (ix) a
write-off of all or part of our goodwill, which could adversely affect our
operating results and net worth and cause us to violate covenants in our bank
agreements, (x) the potential for substantial fines and penalties or suspension
or debarment from future contracts in the event we do 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 our subcontractors may fail to perform their contractual
obligations, which may adversely affect our contract performance and our ability
to obtain future business, (xiii) our ability to successfully identify and
consummate acquisitions and integrate the acquired businesses, (xiv) our
dependence on our management team and key personnel, (xv) the possibility of a
catastrophic loss of one or more of our manufacturing facilities, (xvi) the
possibility that future terror attacks, war or other civil disturbances could
negatively impact our business, (xvii) our operations in foreign countries could
expose us 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 our products used in applications
where failure can result in significant property damage, injury or death and in
damage to our reputation, (xx) the possibility that litigation may result
unfavorably to us, (xxi) foreign currency fluctuations in those countries in
which we do 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
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 25, June 30, June 25, June 30,
2005 2004 2005 2004
------------- ------------- ------------- -------------
Net sales $ 266,032 $ 238,652 $ 770,572 $ 698,706
Cost of sales 181,303 165,868 529,530 485,565
Gross profit 84,729 72,784 241,042 213,141
Research and
development 11,887 7,706 31,029 21,972
Selling, general
and administrative 46,454 40,800 131,192 121,233
Interest 3,505 2,851 9,384 8,870
Other (231) (22) (265) 866
61,615 51,335 171,340 152,941
Earnings before
income taxes 23,114 21,449 69,702 60,200
Income taxes 6,462 6,647 22,305 18,657
Net earnings $ 16,652 $ 14,802 $ 47,397 $ 41,543
Net earnings
per share
Basic $ .43 $ .38 $ 1.23 $ 1.07
Diluted $ .42 $ .37 $ 1.20 $ 1.05
Average common
shares outstanding
Basic 38,613,997 38,864,981 38,603,248 38,884,610
Diluted 39,541,572 39,609,458 39,504,880 39,682,496
MOOG INC.
CONSOLIDATED SALES AND OPERATING PROFIT
(dollars in thousands)
Three Months Ended Nine Months Ended
------------------------------ ------------------------------
June 25, June 30, June 25, June 30,
2005 2004 2005 2004
------------- ------------- ------------- -------------
Net Sales
Aircraft Controls $ 113,405 $ 102,415 $ 328,588 $ 306,717
Space & Defense
Controls 30,835 30,740 94,918 85,506
Industrial
Controls 81,444 72,369 235,075 209,349
Components 40,348 33,128 111,991 97,134
Net sales $ 266,032 $ 238,652 $ 770,572 $ 698,706
Operating Profit
and Margins
Aircraft
Controls $ 15,580 $ 15,030 $ 45,736 $ 47,578
13.7% 14.7% 13.9% 15.5%
Space & Defense
Controls 1,543 1,434 8,200 2,126
5.0% 4.7% 8.6% 2.5%
Industrial
Controls 8,240 6,303 20,996 17,656
10.1% 8.7% 8.9% 8.4%
Components 5,907 4,687 15,589 11,358
14.6% 14.1% 13.9% 11.7%
Total operating
profit 31,270 27,454 90,521 78,718
11.8% 11.5% 11.7% 11.3%
Deductions from
Operating Profit
Interest expense 3,505 2,851 9,384 8,870
Corporate expenses
and other 4,651 3,154 11,435 9,648
Earnings before
Income Taxes $ 23,114 $ 21,449 $ 69,702 $ 60,200
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)
June 25, September 25,
2005 2004
------------- -------------
Cash $ 75,197 $ 56,701
Receivables 283,141 261,776
Inventories 204,105 189,649
Other current assets 49,209 40,963
Total current assets 611,652 549,089
Property, plant and equipment 248,775 246,743
Goodwill 290,934 288,563
Other non-current assets 41,505 40,533
Total assets $ 1,192,866 $ 1,124,928
Notes payable $ 885 $ 923
Current installments of long-term debt 17,086 18,700
Contract loss reserves 13,657 14,311
Other current liabilities 234,659 193,350
Total current liabilities 266,287 227,284
Long-term debt 269,051 291,666
Other long-term liabilities 138,787 134,322
Total liabilities 674,125 653,272
Shareholders' equity 518,741 471,656
Total liabilities and
shareholders' equity $ 1,192,866 $ 1,124,928
SOURCE Moog Inc.
-0- 07/27/2005
/CONTACT: Susan Johnson, +1-716-687-4225 for Moog Inc./