EX-99.1 2 v342663_ex99-1.htm 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
	April 26, 2013		716-687-4225

MOOG REPORTS 4% INCREASE in EARNINGS PER Share

Moog Inc. (NYSE: MOG.A and MOG.B) today announced second quarter earnings of $36.5 million and earnings per share of $.80, a 4% increase over last year. Total sales of $643 million were up $18 million, or 3%, from a year ago.

Total Aircraft Controls sales in the quarter were $259 million, up $22 million from last year, a 10% improvement. The Company’s commercial aircraft sales were $114 million, 22% higher, including $44 million in sales to Boeing and $14 million in Airbus sales. Revenue on business jet programs increased 17% to $12 million. Commercial aftermarket sales of $30 million were up 2%.

Military aircraft sales were slightly higher at $145 million. Military aftermarket sales were up 12% to a very strong $61 million. The increase offset lower sales on the F-35 Joint Strike Fighter and the V-22 tilt rotor aircraft.

Space and Defense segment sales, at $106 million, were 18% higher than a year ago. Higher sales for space controls, at $62 million, were the result of two recent acquisitions. Sales of products sold into defense markets were down slightly from a year ago.

The Company’s Industrial Systems segment had sales of $144 million, a decrease of $24 million. Sales of controls for industrial automation applications were down $9 million while sales of wind energy controls were $14 million lower. Sales of simulation products, including motion bases for flight training simulators, were up $4 million but offset by a reduction in test systems for aerospace and automotive applications.

Sales for the Components Group of $99 million were $3 million higher than last year’s second quarter. Increased sales of energy products offset slightly lower defense sales. Medical sales were unchanged. The Components Group recently completed two acquisitions, Tritech and Aspen Motion Technologies.

The Medical Devices segment had sales of $35 million, comparable to a year ago, as higher pump sales offset lower set sales.

The Company’s twelve month backlog is $1.4 billion.

The Company has updated its guidance for the year. Sales for the year will be $2.59 billion. Net earnings are now projected at $156 to $160 million and earnings per share in a range of $3.40 to $3.50. The midpoint of $3.45 is an increase of 4% over the previous fiscal year.

“Sales, earnings and earnings per share were up this quarter, so the news is generally good,” said John Scannell, CEO. “Our industrial markets remain soft so fiscal 2013 looks like it will continue to be a challenging year and we are working to ensure that we meet our operating goals. Our operations should deliver earnings per share in the range of $3.55 to $3.65 but we’ll incur a total of $.15 per share in restructuring that reduces the range to $3.40 to $3.50 per share for the year. Sales in the second half of the year will be higher than the first half, and we should see a pickup in earnings in both our Industrial and Space & Defense segments.”

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:

· the markets we serve are cyclical and sensitive to domestic and foreign economic conditions and events, which may cause our operating results to fluctuate

· we operate in highly competitive markets with competitors who may have greater resources than we possess

· we depend heavily on government contracts that may not be fully funded or may be terminated, and the failure to receive funding or the termination of one or more of these contracts could reduce our sales and increase our costs

· we make estimates in accounting for long-term contracts, and changes in these estimates may have significant impacts on our earnings

· we enter into fixed-price contracts, which could subject us to losses if we have cost overruns

· if our subcontractors or suppliers fail to perform their contractual obligations, our prime contract performance and our ability to obtain future business could be materially and adversely impacted

· contracting on government programs is subject to significant regulation, including rules related to bidding, billing and accounting kickbacks and false claims, and any non-compliance could subject us to fines and penalties or possible debarment

· the loss of Boeing as a customer or a significant reduction in sales to Boeing could adversely impact our operating results

· our new product research and development efforts may not be successful which could reduce our sales and earnings

· our inability to adequately enforce and protect our intellectual property or defend against assertions of infringement could prevent or restrict our ability to compete

· our business operations may be adversely affected by information systems interruptions or infringements

· our indebtedness and restrictive covenants under our credit facilities could limit our operational and financial flexibility

· significant changes in discount rates, rates of return on pension assets, mortality tables and other factors could affect our earnings, equity and pension funding requirements

· a write-off of all or part of our goodwill or other intangible assets could adversely affect our operating results and net worth

· our sales and earnings growth may be affected if we cannot identify, acquire or integrate strategic acquisitions

· our operations in foreign countries expose us to political and currency risks and adverse changes in local legal and regulatory environments

· unforeseen exposure to additional tax income liabilities may affect our operating results

· government regulations could limit our ability to sell our products outside the United States and otherwise adversely affect our business

· the failure or misuse of our products may damage our reputation, necessitate a product recall or result in claims against us that exceed our insurance coverage, thereby requiring us to pay significant damages

· future terror attacks, natural disasters or other catastrophic events beyond our control could negatively impact our business

· our operations are subject to environmental laws, and complying with those laws may cause us to incur significant costs

· we are involved in various legal proceedings, the outcome of which may be unfavorable to us

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								Six Months Ended
		March 30,				March 31,				March 30,				March 31,
		2013				2012				2013				2012
Net sales		$	643,023			$	624,970			$	1,263,826			$	1,225,588
Cost of sales			445,600				440,540				873,703				856,023
Gross profit			197,423				184,430				390,123				369,565
Research and development			38,113				26,897				70,441				56,087
Selling, general and administrative			100,795				97,697				205,870				193,495
Interest			6,442				8,636				15,038				17,182
Restructuring			2,201				-				2,201				-
Other			(88	)			1,411				(2,458	)			63
Earnings before income taxes			49,960				49,789				99,031				102,738
Income taxes			13,433				14,368				28,386				30,944
Net earnings		$	36,527			$	35,421			$	70,645			$	71,794
Net earnings per share
Basic		$	0.81			$	0.78			$	1.56			$	1.59
Diluted		$	0.80			$	0.77			$	1.54			$	1.57
Average common shares outstanding
Basic			45,333,612				45,227,921				45,343,312				45,219,828
Diluted			45,825,626				45,781,587				45,766,798				45,730,777

Moog Inc.

CONSOLIDATED SALES AND OPERATING PROFIT

(dollars in thousands)

		Three Months Ended								Six Months Ended
		March 30,				March 31,				March 30,				March 31,
		2013				2012				2013				2012
Net Sales
Aircraft Controls		$	258,860			$	236,388			$	511,141			$	467,468
Space and Defense Controls			105,688				89,811				192,153				178,205
Industrial Systems			144,201				168,015				292,177				326,100
Components			98,804				95,643				198,079				183,790
Medical Devices			35,470				35,113				70,276				70,025
Net sales		$	643,023			$	624,970			$	1,263,826			$	1,225,588
Operating Profit and Margins
Aircraft Controls		$	31,518			$	22,783			$	62,593			$	47,610
			12.2	%			9.6	%			12.2	%			10.2	%
Space and Defense Controls			7,671				9,903				15,899				22,646
			7.3	%			11.0	%			8.3	%			12.7	%
Industrial Systems			7,837				19,272				16,884				35,098
			5.4	%			11.5	%			5.8	%			10.8	%
Components			15,342				13,479				34,188				28,508
			15.5	%			14.1	%			17.3	%			15.5	%
Medical Devices			1,306				1,489				2,908				3,087
			3.7	%			4.2	%			4.1	%			4.4	%
Total operating profit			63,674				66,926				132,472				136,949
			9.9	%			10.7	%			10.5	%			11.2	%
Deductions from Operating Profit
Interest expense			6,442				8,636				15,038				17,182
Equity-based compensation expense			833				685				4,724				4,790
Corporate expenses and other			6,439				7,816				13,679				12,239
Earnings before Income Taxes		$	49,960			$	49,789			$	99,031			$	102,738

Moog Inc.

CONSOLIDATED BALANCE SHEETS

(dollars in thousands)

		March 30,				September 29,
		2013				2012
Cash		$	149,848			$	148,841
Receivables			770,470				744,551
Inventories			558,821				538,262
Other current assets			124,981				117,254
Total current assets			1,604,120				1,548,908
Property, plant and equipment			552,488				546,179
Goodwill and intangible assets			1,019,013				975,049
Other non-current assets			48,654				35,771
Total assets		$	3,224,275			$	3,105,907
Short-term borrowings		$	102,229			$	90,774
Current installments of long-term debt			3,275				3,186
Contract loss reserves			43,394				48,428
Other current liabilities			527,410				521,488
Total current liabilities			676,308				663,876
Long-term debt			711,804				670,662
Other long-term liabilities			468,150				466,579
Total liabilities			1,856,262				1,801,117
Shareholders' equity			1,368,013				1,304,790
Total liabilities and shareholders' equity		$	3,224,275			$	3,105,907