April 27, 2018 7:55 AM EDT
EAST AURORA, N.Y.--(BUSINESS WIRE)--
Moog Inc. (NYSE: MOG.A and MOG.B) announced today financial results for
the quarter ended March 31, 2018.
Second Quarter Highlights
Sales of $689 million, up 9% from a year ago;
Decision to wind down the pitch control portion of the wind energy
business in 2018, while continuing to support current customer needs;
GAAP diluted earnings per share of $.39 includes restructuring
expenses of $0.72 per share related to the wind energy pitch control
business and $0.05 per share charge related to the Tax Cuts and Jobs
Act;
Non-GAAP adjusted earnings per share from operations of $1.16, up from
$0.88 a year ago;
Announcement of a quarterly cash dividend of $0.25 per share, starting
in June;
Acquisition of VUES Brno s.r.o, a customized motion controls
manufacturer in the Czech Republic;
Cash flow from operations of $1 million, including $81 million of
pension contributions.
Segment Results
Total Aircraft Controls segment sales in the quarter were $311 million,
up 8% year over year. Military aircraft sales of $156 million were 14%
higher. F-35 Joint Strike Fighter sales increased 12%. Other OEM sales
were up 29%, to $76 million, attributed to foreign military sales and
helicopter programs. Military aftermarket sales were $47 million, down
3%.
Commercial aircraft revenues increased 2%, to $156 million. Commercial
aftermarket sales were up 39% on strong initial provisioning and spares,
offsetting lower OEM sales. Airbus OEM sales were down 10% due to timing
of deliveries. Boeing 787 sales were flat while other legacy OEM sales
to Boeing were down 17%, mostly due to a decline in 777 volume.
Space and Defense segment sales were $144 million, up 3% year over year.
Space sales were very strong, 19% higher, attributed to increases in
sales of space avionics and launch vehicle controls. Defense sales were
down 5%, mostly due to lower demand for military vehicle controls and
naval products.
Industrial Systems segment sales in the quarter were $234 million, 15%
higher from a year ago. Excluding currency effects and acquisitions,
sales increased 6%. Industrial automation sales were up a healthy 16%,
to $108 million. Energy sales were up 19% on sales of exploration and
power generation products. Simulation and test sales were up 12% on
strong sales of test equipment. Medical market sales were 10% higher.
Consolidated 12-month backlog was $1.3 billion.
Fiscal 2018 Outlook
The Company updated its projections for fiscal 2018.
Sales of $2.69 billion, up 8% over last year and increased $70 million
from 90 days ago;
GAAP earnings per share of $2.67, plus or minus $0.20, including the
impact of wind energy restructuring and one-time tax reform effects;
Non-GAAP diluted earnings per share of $4.40, plus or minus $0.20;
Adjusted operating margins of 10.9% and GAAP margins of 9.7%;
Cash flow from operating activities of $170 million.
Our underlying operations had another solid quarter, said John
Scannell, Chairman and CEO. Six months into the year were comfortable
with our earnings projections and have increased our sales forecast by
$70 million. During the quarter, we announced an acquisition and
initiated a quarterly... More
