Exhibit 99.1
PRESS INFORMATION
MOOG INC., EAST AURORA, NEW YORK 14052 TEL-716/652-2000 FAX -716/687-4457
RELEASE DATE Immediate CONTACT Ann Marie Luhr
January 29, 2007 716-687-4225
MOOG REPORTS FIRST QUARTER EARNINGS PER SHARE UP 30%
Moog Inc. (NYSE: MOG.A and MOG.B) announced today net earnings of $24.1 million
and earnings per share of $.56 for the first fiscal quarter ended December 30,
2006. This represents an increase of 30% over the $.43 of last year's first
quarter. Sales for the quarter of $356 million were up 15% from the year
previous. Sales increased in all five of the Company's segments.
Sales for the Aircraft segment grew by 3% to $131 million. The growth was all in
Commercial programs. Sales to Boeing Commercial were up by 16%. Sales on
Business Jets were up slightly and Commercial aircraft aftermarket revenue grew
7%. Total Commercial aircraft sales were $51 million for the quarter, up 8% from
last year.
Military aircraft sales of $80 million were slightly below last year's first
quarter. Military production programs were stable. Revenue on the F-35
development program was down slightly as the program is transitioning to the
production phase.
For the quarter, Space and Defense sales were up 18% to $44 million. The big
increase was in Defense Controls and particularly the U.S. Marine's Light
Armored Vehicle Program. Sales also increased in Naval applications and the
Space Shuttle refurbishment program.
The Industrial segment had first quarter sales of $102 million, up 13%. Sales
were up in most major Industrial markets, but particularly in controls for
metal-forming equipment and gauge controls for steel mills being built in China.
Components Group continues its strong performance. Sales in the quarter were up
22% to $68 million. Sales were particularly strong in components used on
aircraft, on military vehicles, and in the marine market.
The Company formed its new Medical Devices segment in the third quarter of last
year with the acquisition of Curlin Medical. In last year's fourth quarter, the
Company acquired McKinley Medical. During this most recent quarter, total sales
were $11 million, tracking the Company's forecast of $40 million for the year.
On January 12, the Company announced the proposed acquisition of ZEVEX
International, Inc. ZEVEX specializes in the production of infusion pumps used
in enteral nutritional therapy. The ZEVEX transaction is expected to close by
the end of March.
Twelve-month consolidated backlog at December 30, 2006 was $655 million, up $85
million, or 15% from the backlog a year ago.
Based on the strong first quarter performance, the Company has updated its
guidance for fiscal '07. The Company is now projecting sales in a range of $1.43
billion to $1.45 billion. Net earnings are forecast in a range between $98
million and $101 million and EPS between $2.26 and $2.34, with the midpoint of
this range at $2.30 per share.
"This is the strongest first quarter performance that I can remember," said R.T.
Brady, Chairman and CEO. "Sales were up, net earnings were up, and earnings per
share were up 30%. Earnings were particularly strong in Space and Defense,
Industrial, and Components. We're off to a great start on what promises to be
another good year. For the year, we're projecting an increase in earnings per
share of 17%, right in line with our compound annual growth rate in EPS over the
last dozen years."
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 can be found on its website, www.moog.com,
including the 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, industrial capital goods and
medical devices, (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) increased cash funding requirements for pension plans, which
could occur in future years if future 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 for
which we are not indemnified, (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)
THIRTEEN Fourteen
WEEKS Weeks
ENDED Ended
DECEMBER 30, December 31,
2006 2005
------------ ------------
Net sales $ 355,981 $ 310,171
Cost of sales 235,299 209,574
------------ ------------
Gross profit 120,682 100,597
------------ ------------
Research and development 22,238 13,607
Selling, general and administrative 56,746 53,560
Interest 5,685 5,620
Other 611 327
------------ ------------
85,280 73,114
------------ ------------
Earnings before income taxes 35,402 27,483
Income taxes 11,338 10,686
------------ ------------
Net earnings $ 24,064 $ 16,797
============ ============
Net earnings per share
Basic $ 0.57 $ 0.43
============ ============
Diluted $ 0.56 $ 0.43
============ ============
Average common shares outstanding
Basic 42,317,680 38,665,125
============ ============
Diluted 43,016,743 39,339,472
============ ============
MOOG INC.
CONSOLIDATED SALES AND OPERATING PROFIT
(dollars in thousands)
THIRTEEN Fourteen
WEEKS Weeks
ENDED Ended
DECEMBER 30, December 31,
2006 2005
------------ ------------
NET SALES
Aircraft Controls $ 130,788 $ 127,105
Space and Defense Controls 43,665 37,102
Industrial Controls 102,230 90,142
Components 68,319 55,822
Medical Devices 10,979 -
------------ ------------
Net sales $ 355,981 $ 310,171
============ ============
OPERATING PROFIT AND MARGINS
Aircraft Controls $ 13,319 $ 15,940
10.2% 12.5%
Space and Defense Controls 5,376 1,768
12.3% 4.8%
Industrial Controls 13,499 11,550
13.2% 12.8%
Components 13,115 10,147
19.2% 18.2%
Medical Devices 2,145 -
19.5% -
------------ ------------
Total operating profit 47,454 39,405
13.3% 12.7%
DEDUCTIONS FROM OPERATING PROFIT
Interest expense 5,685 5,620
Stock option expense 1,602 2,012
Corporate expenses and other 4,765 4,290
------------ ------------
Earnings before Income Taxes $ 35,402 $ 27,483
============ ============
MOOG INC.
CONSOLIDATED BALANCE SHEETS
(dollars in thousands)
DECEMBER 30, September 30,
2006 2006
------------ ------------
Cash $ 58,175 $ 57,821
Receivables 339,314 333,492
Inventories 305,342 282,720
Other current assets 55,773 54,068
------------ ------------
Total current assets 758,604 728,101
Property, plant and equipment 329,538 310,011
Goodwill 454,933 450,971
Other non-current assets 115,237 118,571
------------ ------------
Total assets $ 1,658,312 $ 1,607,654
============ ============
Notes payable $ 22,824 $ 17,119
Current installments of long-term debt 1,759 1,982
Contract loss reserves 19,273 15,089
Other current liabilities 271,474 273,416
------------ ------------
Total current liabilities 315,330 307,606
Long-term debt 369,230 367,457
Other long-term liabilities 177,210 169,735
------------ ------------
Total liabilities 861,770 844,798
Shareholders' equity 796,542 762,856
------------ ------------
Total liabilities and shareholders'
equity $ 1,658,312 $ 1,607,654
============ ============