Total Aircraft sales in the fourth quarter of $160 million were up 12% from a year ago. The growth is all in the commercial side. That 's been the pattern this year. Commercial sales were up 38% to almost $73 million. Military sales were actually down about 3% to just under $88 million.

On the military side, revenue was down on the F-35 development contract. Revenues in this year 's fourth quarter were just over $17 million, versus $19.6 million a year ago. Every quarter I remind you that we are the lead contractor on both the primary flight controls and the leading edge flap. So, every quarter our revenues include not only the work done in our Company, but billings that come through from Parker Hannifin, Hamilton Sundstrand and Curtiss Wright. This quarter, although the total revenue was down by over $2 million from a year ago, the Moog content was up $3 million to a total of $12.4 million. A larger portion of the sales change in the quarter relates to unusually high sales to our Japanese licensee on the F-15 and the Seahawk in last year 's fourth quarter. In that quarter, we did almost $11 million on those programs and in this quarter, the total was only $4.5 million.

On the positive side, our revenues were actually up on our major military production programs. Sales were up on the F-18 and the V-22 by $1.3 million and $1.6 million respectively. And, last, but by no means least, we had a huge quarter in military aftermarket - $33.3 million, up $2.5 million from a year ago.

In commercial aircraft, as I mentioned, sales were way up. The increase was 38%, or $20 million to a total of $73 million. Almost $12 million of the increase was in OEM equipment to Boeing including an increase of $6.3 million on the legacy 7 Series and $5.4 million on the 787.

Sales in business jets increased by over 50%, or $4.7 million. We had a sizable increase in the Bombardier Challenger as production ramps up, but most of the increase was contract work on programs wherein our participation hasn 't been announced.

The commercial aircraft aftermarket was up by 17% to a total of $25.8 million.

Aircraft margins in the quarter of 10.9% were an improvement over what we 've been running this year. We continued to have very heavy R&D expenditures this quarter, but we 've finally turned the corner on the 787. R&D on the 787 for the quarter was $12 million, down slightly from a peak of $12.1 million last quarter. So, the 787 has actually started to trend down. Margins in the quarter were adversely affected, though, by an addition to our cost estimate on the A400M by about $1 million. As you know, this is a pretty big job for us. We 're doing aileron and elevator servoactuators and two different spoiler actuators. Although we 've delivered four shipsets, the hardware is still in safety-of-flight testing. The testing has uncovered problems which require some redesign.

Aircraft '07 Total

For the whole of '07, Aircraft sales were up 11% to $587 million. The increase was all on the commercial side. The military aircraft total of $325 million includes the impact of a $12 million decline in revenue on the F-35. On that program we finished fiscal '07 at $65 million, down from $77 million a year ago. As I mentioned a minute ago, these revenues include not only our own work, but that of our partners. And, as it turns out, in '07 within Moog, we generated slightly more revenue than in '06, but the decline in our partners ' workload - and in their billings to us - is reflected in lower sales to Lockheed. There were numerous other puts and takes in the military aircraft product line, but were it not for the F-35, military aircraft sales in '07 would have been $6.7 million higher than in '06.

Commercial Aircraft, though, is a much bigger story. Commercial aircraft sales for the year were up 33% to $261 million - an increase of $64 million and $37 million of that was in original equipment to Boeing. Our OEM sales on the legacy 7 Series increased $17 million and we generated $20 million in revenue on the 787. Total sales to Boeing Commercial reached $83 million, an increase of 80% compared to '06.