Exhibit 99.1
MOOG REPORTS 33% INCREASE IN SECOND QUARTER EARNINGS PER SHARE
EAST AURORA, N.Y., April 28 /PRNewswire-FirstCall/ -- Moog Inc.
(NYSE: MOG.A and MOG.B) today announced second quarter earnings of $21.5 million
or 53 cents a share, an increase of 33% from the same period a year ago. Sales
for the quarter of $322 million were up 26% from last year's level. All four of
the Company's business segments posted double-digit sales growth.
On a year-to-date basis, Moog's earnings per share of 96 cents were up 23%
from the year previous. Sales for the six months were $632 million, a 25%
increase over last year.
Total Aircraft sales in the quarter were up 17% to $128 million. A 12%
increase in military sales to a total of $80 million was the result of increased
activity on the F-35 Joint Strike Fighter program and a big sales increase in
the aftermarket. Military aftermarket sales reached $25.7 million, an increase
of 23%. The Company's Commercial aircraft product line increased revenue by 26%
to over $47 million. Sales increased to both Boeing Commercial and Airbus, but
the biggest increase was in the aftermarket. A 42% increase boosted Commercial
aftermarket sales to $21 million. Sales of business jet flight controls to
Bombardier, Gulfstream, and Raytheon maintained last year's level.
Revenues in the Space and Defense segment increased by 26% to almost $39
million. The big increases were in the Defense Controls product line wherein the
Company provides electric motors and controllers to a variety of military
vehicle programs in the US and overseas. The other growth category is Tactical
Missiles. Sales more than doubled to just under $8 million reflecting new orders
for the Maverick Missile, and the restart of production on the TOW Missile and
VT1. The Flo-Tork acquisition added $1.7 million of defense-related sales.
Industrial sales were up 23% to $96.7 million. Of that increase, a little
over one-half came from the acquisitions of FCS Controls and Flo-Tork. Organic
growth in the industrial product line was close to 10%. Sales of controls for
power-generating turbines and steel mills, taken together, were up 36% to $17
million driven by the increasing demand for power and steel in China. Sales of
motion simulation equipment at $9.7 million were almost three times last year's
second quarter. The Moog legacy business generated sales of $5.3 million, up 61%
from a year ago, and the FCS acquisition added the balance.
The Components Segment had another great quarter. Sales of almost $59
million were up 61% from a year ago. Nearly two-thirds of the increase came
through the companies acquired from the Kaydon Corporation. Organic growth was
in excess of 20%. Sales of aerospace and defense equipment increased by 51% to
over $30 million. Sales in medical equipment were up over 40% to almost $13
million. Industrial and marine sales more than doubled to nearly $16 million.
The Company's current backlog of $617 million was up 28% from a year ago. Of
the $136 million increase about $58 million was the impact of recent
acquisitions.
Given the strong performance in sales and earnings for the first two
quarters and factoring in the recent acquisition of Curlin Medical, the Company
has updated its guidance for fiscal '06. Sales are now projected to be in the
range from $1.262 billion to $1.282 billion. Net earnings are forecasted in the
range of $78.8 million to $82.2 million. The midpoint of that range, $80.5
million, would result in earnings per share of $1.95, an increase of 19% over
last year's $1.64 per share.
"This was a very strong second-quarter performance," said R. T. Brady,
Chairman and CEO. "As we expected, our recent acquisitions are making a positive
contribution, but the real story is the strength of our basic business. All four
segments have generated accelerating sales growth and our overall profitability
is improving as well. We're halfway through what could be a great year for our
Company."
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 industry machinery, and medical equipment. Additional
information about the Company's quarter ended April 1, 2006 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, and the risks
associated with acquisitions, including that the acquired businesses do not
perform in accordance with our expectations, and that we assume unknown
liabilities in connection with the acquired businesses and that indemnification
from the sellers of the acquired businesses for these liabilities will be
limited or unavailable, (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.
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MOOG INC.
CONSOLIDATED STATEMENTS OF EARNINGS
(dollars in thousands, except per share data)
THREE MONTHS ENDED SIX MONTHS ENDED
--------------------------- ----------------------------
APRIL 1, March 26, APRIL 1, March 26,
2006 2005 2006 2005
------------ ------------ ------------ ------------
Net sales $ 322,109 $ 255,237 $ 632,280 $ 504,540
Cost of sales 218,211 174,344 427,785 348,227
------------ ------------ ------------ ------------
Gross profit 103,898 80,893 204,495 156,313
------------ ------------ ------------ ------------
Research and development 15,980 10,133 29,587 19,142
Selling, general and administrative 51,382 43,819 104,942 84,738
Interest 4,877 3,170 10,497 5,879
Other 311 10 638 (34)
------------ ------------ ------------ ------------
72,550 57,132 145,664 109,725
------------ ------------ ------------ ------------
Earnings before income taxes 31,348 23,761 58,831 46,588
Income taxes 9,886 7,991 20,572 15,843
------------ ------------ ------------ ------------
Net earnings $ 21,462 $ 15,770 $ 38,259 $ 30,745
============ ============ ============ ============
Net earnings per share
Basic $ 0.54 $ 0.41 $ 0.97 $ 0.80
============ ============ ============ ============
Diluted $ 0.53 $ 0.40 $ 0.96 $ 0.78
============ ============ ============ ============
Average common shares outstanding
Basic 40,014,206 38,607,521 39,314,682 38,597,874
============ ============ ============ ============
Diluted 40,723,532 39,528,401 40,005,871 39,486,535
============ ============ ============ ============
Note - The Company's financial statements include thirteen weeks for the three
months ended April 1, 2006 and March 26, 2005 and 27 weeks for the six months
ended April 1, 2006 compared to 26 weeks for the six months ended March 26,
2005.
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MOOG INC.
CONSOLIDATED SALES AND OPERATING PROFIT
(dollars in thousands)
THREE MONTHS ENDED SIX MONTHS ENDED
--------------------------- ----------------------------
APRIL 1, March 26, APRIL 1, March 26,
2006 2005 2006 2005
------------ ------------ ------------ ------------
NET SALES
Aircraft Controls $ 127,610 $ 109,003 $ 254,715 $ 215,183
Space & Defense Controls 38,918 30,901 76,020 64,083
Industrial Controls 96,678 78,761 186,820 153,631
Components 58,903 36,572 114,725 71,643
------------ ------------ ------------ ------------
Net sales $ 322,109 $ 255,237 $ 632,280 $ 504,540
============ ============ ============ ============
OPERATING PROFIT AND MARGINS
Aircraft Controls $ 16,334 $ 15,043 $ 32,274 $ 30,156
12.8% 13.8% 12.7% 14.0%
Space & Defense Controls 4,695 3,402 6,463 6,657
12.1% 11.0% 8.5% 10.4%
Industrial Controls 11,685 7,281 23,235 12,756
12.1% 9.2% 12.4% 8.3%
Components 8,323 5,032 18,470 9,682
14.1% 13.8% 16.1% 13.5%
------------ ------------ ------------ ------------
Total operating profit 41,037 30,758 80,442 59,251
12.7% 12.1% 12.7% 11.7%
DEDUCTIONS FROM OPERATING PROFIT
Interest expense 4,877 3,170 10,497 5,879
Corporate expenses and other 4,812 3,827 11,114 6,784
------------ ------------ ------------ ------------
Earnings before Income Taxes $ 31,348 $ 23,761 $ 58,831 $ 46,588
============ ============ ============ ============
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MOOG INC.
CONSOLIDATED BALANCE SHEETS
(dollars in thousands)
APRIL 1, September 24,
2006 2005
------------ -------------
Cash $ 42,235 $ 33,750
Receivables 321,412 296,986
Inventories 243,458 215,425
Other current assets 59,308 53,897
------------ -------------
Total current assets 666,413 600,058
Property, plant and equipment 279,413 262,841
Goodwill 381,955 378,205
Other non-current assets 69,627 62,223
------------ -------------
Total assets $ 1,397,408 $ 1,303,327
============ =============
Notes payable $ 884 $ 885
Current installments of long-term debt 16,792 17,035
Contract loss reserves 14,019 14,121
Other current liabilities 299,390 255,311
------------ -------------
Total current liabilities 331,085 287,352
Long-term debt 282,539 330,977
Other long-term liabilities 135,601 163,961
------------ -------------
Total liabilities 749,225 782,290
Shareholders' equity 648,183 521,037
------------ -------------
Total liabilities and shareholders' equity $ 1,397,408 $ 1,303,327
============ =============
SOURCE Moog Inc.
-0- 04/28/2006
/CONTACT: Ann Marie Luhr of Moog Inc., +1-716-687-4225/
/FCMN Contact: aluhr@moog.com/
/Web site: http://www.moog.com /
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