EAST AURORA, NY--(Marketwired - Jul 29, 2016) - Moog Inc. (
Total Aircraft Controls sales in the quarter were $274 million, up 1% from a year ago. Commercial aircraft sales of $140 million were up 8%. Sales of OEM products to Airbus increased 45%, to $28 million, on the A350 production ramp up. Boeing OEM product sales were 13% higher, at $66 million, on increased sales across all platforms. Commercial aftermarket revenues of $27 million were down 12% due to lower initial provisioning of 787 spares and softer business jet activity.
Military aircraft sales of $134 million were 5% lower year over year. OEM sales were down 6%, to $84 million, due to declines in V-22 tilt rotor and Black Hawk helicopter sales. F-35 production sales were 7% higher. Military aftermarket sales were down 4%, to $50 million, as the C-5M Super Galaxy upgrade program winds down. F-35 aftermarket sales were higher on increased depot repair activity.
Space and Defense segment sales were $91 million, 5% lower than last year. Space sales were $44 million, a decrease of 8% due to lower sales of avionics and components. Defense sales were $47 million, down marginally due to slower military vehicle sales.
Sales in the Company's Industrial Systems segment were flat at $130 million. Energy market sales were 8% higher, at $33 million, helped by higher sales of wind energy products into Europe and China. Industrial automation sales were $69 million, off 3%. Simulation and test product sales were $28 million, also off 3%, reflecting strong prior year sales of test equipment.
Components segment sales, at $92 million, were 18% lower than last year. Sales of aerospace and defense products were $42 million, down 14%, on softer OEM program and aftermarket sales. Sales into energy, industrial and medical markets continued to experience weakness across a range of products and programs.
The Medical Devices segment had sales of $26 million, up 1%, on increased sales of enteral pumps and administration sets. Through the first nine months of the year, excluding the previously divested life sciences business, organic growth in the segment is 8% year over year.
The current backlog is $1.2 billion.
The Company updated its projections for fiscal 2016, ending October 1, 2016, to include sales of $2.42 billion. The earnings per share midpoint is unchanged, at $3.35, and the range has been narrowed to plus or minus $.10 per share.
"Overall we had a good third quarter," said John Scannell, Chairman and CEO. "Sales were slightly down but EPS was ahead of our guidance and we had strong cash flow. In addition, our aircraft team celebrated the flawless operation of our flight controls as part of the successful first flight of the Embraer E2 jet. With one quarter left to go, we're refining our sales forecast for the year, while keeping our EPS forecast unchanged from 90 days ago."
In conjunction with today's release, Moog will host a conference call beginning at 10:00 a.m. ET, which will be broadcast live over the Internet. John Scannell, Chairman and CEO, and Don Fishback, CFO, will host the call. Supplemental financial data will be available on the webcast web page approximately 60 minutes prior to the conference call. Listeners can access the call live or in replay mode at www.moog.com/investors/communications.
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, wind energy, marine and medical equipment. Additional information about the Company can be found at www.moog.com.
Cautionary Statement
Information included or incorporated by reference in this report 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," "approximate," "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:
These factors 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 | ||||||||||||||
July 2, 2016 |
July 4, 2015 |
July 2, 2016 |
July 4, 2015 |
||||||||||||
Net sales | $ | 613,260 | $ | 634,539 | $ | 1,792,859 | $ | 1,902,308 | |||||||
Cost of sales | 429,598 | 443,963 | 1,268,550 | 1,354,264 | |||||||||||
Gross profit | 183,662 | 190,576 | 524,309 | 548,044 | |||||||||||
Research and development | 36,006 | 34,157 | 110,535 | 96,882 | |||||||||||
Selling, general and administrative | 88,553 | 90,733 | 254,318 | 280,718 | |||||||||||
Interest | 8,662 | 7,916 | 25,919 | 20,953 | |||||||||||
Restructuring | (39 | ) | 6,604 | 8,303 | 6,604 | ||||||||||
Other | (1,082 | ) | 442 | (2,600 | ) | 1,327 | |||||||||
Earnings before income taxes | 51,562 | 50,724 | 127,834 | 141,560 | |||||||||||
Income taxes | 15,916 | 14,393 | 35,121 | 37,871 | |||||||||||
Net earnings attributable to common shareholders and noncontrolling interest | $ | 35,646 | $ | 36,331 | $ | 92,713 | $ | 103,689 | |||||||
Net earnings (loss) attributable to noncontrolling interest | (665 | ) | -- | (889 | ) | -- | |||||||||
Net earnings attributable to common shareholders | $ | 36,311 | $ | 36,331 | $ | 93,602 | $ | 103,689 | |||||||
Net earnings per share attributable to common shareholders | |||||||||||||||
Basic | $ | 1.01 | $ | 0.95 | $ | 2.57 | $ | 2.62 | |||||||
Diluted | $ | 1.00 | $ | 0.94 | $ | 2.55 | $ | 2.59 | |||||||
Average common shares outstanding | |||||||||||||||
Basic | 36,038,340 | 38,389,629 | 36,411,428 | 39,555,423 | |||||||||||
Diluted | 36,267,975 | 38,744,620 | 36,663,165 | 39,963,142 |
Moog Inc. |
CONSOLIDATED SALES AND OPERATING PROFIT |
(dollars in thousands) |
Three Months Ended | Nine Months Ended | ||||||||||||||||
July 2, 2016 |
July 4, 2015 |
July 2, 2016 |
July 4, 2015 |
||||||||||||||
Net sales: | |||||||||||||||||
Aircraft Controls | $ | 274,175 | $ | 270,339 | $ | 804,779 | $ | 811,103 | |||||||||
Space and Defense Controls | 90,764 | 95,266 | 262,579 | 288,477 | |||||||||||||
Industrial Systems | 130,103 | 130,581 | 383,526 | 393,092 | |||||||||||||
Components | 92,285 | 112,630 | 265,673 | 335,396 | |||||||||||||
Medical Devices | 25,933 | 25,723 | 76,302 | 74,240 | |||||||||||||
Net sales | $ | 613,260 | $ | 634,539 | $ | 1,792,859 | $ | 1,902,308 | |||||||||
Operating profit: | |||||||||||||||||
Aircraft Controls | $ | 30,532 | $ | 28,401 | $ | 67,705 | $ | 75,195 | |||||||||
11.1 | % | 10.5 | % | 8.4 | % | 9.3 | % | ||||||||||
Space and Defense Controls | 13,747 | 6,149 | 38,920 | 19,784 | |||||||||||||
15.1 | % | 6.5 | % | 14.8 | % | 6.9 | % | ||||||||||
Industrial Systems | 11,534 | 13,068 | 38,437 | 38,972 | |||||||||||||
8.9 | % | 10.0 | % | 10.0 | % | 9.9 | % | ||||||||||
Components | 10,754 | 14,966 | 23,839 | 47,828 | |||||||||||||
11.7 | % | 13.3 | % | 9.0 | % | 14.3 | % | ||||||||||
Medical Devices | 2,182 | 3,506 | 8,015 | 6,558 | |||||||||||||
8.4 | % | 13.6 | % | 10.5 | % | 8.8 | % | ||||||||||
Total operating profit | 68,749 | 66,090 | 176,916 | 188,337 | |||||||||||||
11.2 | % | 10.4 | % | 9.9 | % | 9.9 | % | ||||||||||
Deductions from operating profit: | |||||||||||||||||
Interest expense | 8,662 | 7,916 | 25,919 | 20,953 | |||||||||||||
Equity-based compensation expense | 875 | 603 | 2,794 | 4,569 | |||||||||||||
Corporate and other expenses, net | 7,650 | 6,847 | 20,369 | 21,255 | |||||||||||||
Earnings before income taxes | $ | 51,562 | $ | 50,724 | $ | 127,834 | $ | 141,560 |
Moog Inc. |
CONSOLIDATED BALANCE SHEETS |
(dollars in thousands) |
July 2, 2016 |
October 3, 2015 |
|||||||
ASSETS | ||||||||
Current assets | ||||||||
Cash and cash equivalents | $ | 394,429 | $ | 309,853 | ||||
Receivables | 647,987 | 698,419 | ||||||
Inventories | 500,734 | 493,360 | ||||||
Deferred income taxes | 93,121 | 91,210 | ||||||
Prepaid expenses and other current assets | 36,415 | 34,653 | ||||||
Total current assets | 1,672,686 | 1,627,495 | ||||||
Property, plant and equipment, net | 518,233 | 536,756 | ||||||
Goodwill | 746,590 | 737,212 | ||||||
Intangible assets, net | 119,284 | 143,723 | ||||||
Other assets | 43,932 | 41,285 | ||||||
Total assets | $ | 3,100,725 | $ | 3,086,471 | ||||
LIABILITIES AND SHAREHOLDERS' EQUITY | ||||||||
Current liabilities | ||||||||
Short-term borrowings | $ | 1,377 | $ | 83 | ||||
Current installments of long-term debt | 184 | 34 | ||||||
Accounts payable | 150,091 | 165,973 | ||||||
Accrued salaries, wages and commissions | 124,898 | 125,270 | ||||||
Customer advances | 174,700 | 167,423 | ||||||
Contract loss reserves | 31,413 | 30,422 | ||||||
Other accrued liabilities | 102,432 | 116,300 | ||||||
Total current liabilities | 585,095 | 605,505 | ||||||
Long-term debt, excluding current installments | 1,108,438 | 1,075,067 | ||||||
Long-term pension and retirement obligations | 288,732 | 348,239 | ||||||
Deferred income taxes | 77,803 | 60,209 | ||||||
Other long-term liabilities | 3,107 | 2,919 | ||||||
Total liabilities | 2,063,175 | 2,091,939 | ||||||
Commitment and contingencies | -- | -- | ||||||
Redeemable noncontrolling interest | 7,875 | -- | ||||||
Shareholders' equity | ||||||||
Common stock | 51,280 | 51,280 | ||||||
Other shareholders' equity | 978,395 | 943,252 | ||||||
Total shareholders' equity | 1,029,675 | 994,532 | ||||||
Total liabilities and shareholders' equity | $ | 3,100,725 | $ | 3,086,471 |
Moog Inc. | |||||||||||
CONSOLIDATED STATEMENTS OF CASH FLOWS | |||||||||||
(dollars in thousands) | |||||||||||
Nine Months Ended | |||||||||||
July 2, 2016 |
July 4, 2015 |
||||||||||
CASH FLOWS FROM OPERATING ACTIVITIES | |||||||||||
Net earnings attributable to common shareholders and noncontrolling interest | $ | 92,713 | $ | 103,689 | |||||||
Adjustments to reconcile net earnings to net cash provided (used) by operating activities: | |||||||||||
Depreciation | 58,674 | 59,468 | |||||||||
Amortization | 16,485 | 19,010 | |||||||||
Deferred income taxes | 7,765 | 14,569 | |||||||||
Equity-based compensation expense | 2,794 | 4,569 | |||||||||
Other | 6,967 | 4,212 | |||||||||
Changes in assets and liabilities providing (using) cash: | |||||||||||
Receivables | 43,214 | 51,547 | |||||||||
Inventories | (9,959 | ) | (4,763 | ) | |||||||
Accounts payable | (16,456 | ) | 7,332 | ||||||||
Customer advances | 9,689 | (5,008 | ) | ||||||||
Accrued expenses | (7,106 | ) | (21,182 | ) | |||||||
Accrued income taxes | 686 | (8,205 | ) | ||||||||
Net pension and post retirement liabilities | (38,828 | ) | (23,817 | ) | |||||||
Other assets and liabilities | (5,858 | ) | 5,407 | ||||||||
Net cash provided by operating activities | 160,780 | 206,828 | |||||||||
CASH FLOWS FROM INVESTING ACTIVITIES | |||||||||||
Acquisitions of businesses, net of cash acquired | (11,016 | ) | -- | ||||||||
Purchase of property, plant and equipment | (42,605 | ) | (57,712 | ) | |||||||
Other investing transactions | 1,164 | 12,597 | |||||||||
Net cash used by investing activities | (52,457 | ) | (45,115 | ) | |||||||
CASH FLOWS FROM FINANCING ACTIVITIES | |||||||||||
Net short-term repayments | -- | (3,337 | ) | ||||||||
Proceeds from revolving lines of credit | 274,670 | 335,185 | |||||||||
Payments on revolving lines of credit | (261,570 | ) | (425,185 | ) | |||||||
Proceeds from long-term debt | 20,000 | -- | |||||||||
Payments on long-term debt | (10,047 | ) | (5,250 | ) | |||||||
Proceeds from senior notes, net of issuance costs | -- | 294,430 | |||||||||
Proceeds from sale of treasury stock | 2,229 | 11,437 | |||||||||
Purchase of outstanding shares for treasury | (42,203 | ) | (297,417 | ) | |||||||
Proceeds from sale of stock held by SECT | 2,897 | 7,328 | |||||||||
Purchase of stock held by SECT | (1,634 | ) | (12,121 | ) | |||||||
Purchase of stock held by SERP Trust | (2,300 | ) | (7,328 | ) | |||||||
Excess tax benefits from equity-based payment arrangements | 442 | 5,973 | |||||||||
Other financing transactions | (1,909 | ) | -- | ||||||||
Net cash used by financing activities | (19,425 | ) | (96,285 | ) | |||||||
Effect of exchange rate changes on cash | (4,322 | ) | (19,276 | ) | |||||||
Increase in cash and cash equivalents | 84,576 | 46,152 | |||||||||
Cash and cash equivalents at beginning of period | 309,853 | 231,292 | |||||||||
Cash and cash equivalents at end of period | $ | 394,429 | $ | 277,444 | |||||||
Contact:
Ann Marie Luhr
716-687-4225
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