Home> Press Releases> MOOG REPORTS 13% INCREASE IN EARNINGS PER SHARE

MOOG REPORTS 13% INCREASE IN EARNINGS PER SHARE

01/27/2006

East Aurora, NY, Moog Inc. (NYSE: MOG.A and MOG.B ) Moog Inc. (NYSE: Mog.A and Mog.B) announced net earnings for the first quarter of $16.8 million or 43 cents per share, an increase of 13% from the same period a year ago. Sales for the quarter were up 24% to $310 million with all four of the Company’s business segments posting strong growth.

Total Aircraft sales were up 20% to $127 million. Military aircraft sales were up 11% to $80 million with the biggest increases on the F-35 Joint Strike Fighter Program and in the aftermarket. Commercial aircraft sales were up 39% to $47 million. Increased deliveries of original equipment to Boeing, Airbus, Raytheon, Gulfstream and Bombardier contributed to the sales increase. Commercial aircraft aftermarket revenues were up 49% to almost $20 million.

The Space and Defense segment had sales for the quarter of $37.1 million, a gain of $3.9 million or 12% over the previous year. This is primarily due to work on tactical missile programs and a refurbishment contract on the Minuteman Program. The Flo-Tork acquisition, which was completed in November, contributed sales of $700,000 to the segment.

Industrial sales were up 20% to $90 million. Much of that increase was provided by two recent acquisitions. Including those revenues, sales of controls for flight-training simulators almost tripled to $9.4 million. Sales were also up dramatically for turbine controls, material test equipment, and controls for steel mills.

The Components Group also had the benefit of a recent acquisition and, as a result, sales were up 59% from a year ago. Excluding the acquisition, sales would have been up 20%. The segment’s largest increase was provided by medical equipment which increased 58% to a new total of $12 million. The acquisition of Kaydon’s Power and Data Technology group made strong contributions to sales of controls in both marine and defense applications. Sales of components used on aircraft were $17 million in the quarter, up over $3 million from a year ago. Two-thirds of that increase was in aftermarket revenue.

Backlog of $571 million was up 19% from a year ago. Of the $89 million increase, $56 million was the impact of recent acquisitions.

This is the first quarter in which the Company recorded an expense related to the grant of stock options. The normal quarterly expense is expected to be about $400,000, after tax, but in this quarter that expense amounted to $1.4 million, after tax, or 3 cents a share. The Company incurred a similar expense as the result of the termination of a long-term sales representation agreement. This expense was mostly felt in Space and Defense. Lastly, the Company had a $1.9 million, after tax, write-off, the result of an adverse U.K. tax ruling which eliminated the value of a tax asset on the books of Moog’s Company in the U.K.

“In spite of some unusual expenses in the quarter, the Company had a very strong start for fiscal ’06,” said R. T. Brady, Chairman and CEO. “Sales were up across the board. We had strong organic growth and our new acquisitions performed better than anticipated. We’re looking for even stronger earnings performance in the quarters ahead.”

The Company updated its guidance for fiscal ’06. Sales are now projected to be in the range from $1.198 billion to $1.218 billion. Net earnings are forecasted in the range of $71.4 million to $74.8 million and earnings per share in the range of $1.81 to $1.89 with a midrange estimate of $1.85 per share.

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’s quarter ended December 31, 2005 can be found on its website, http://www.moog.com, including a text of its prepared conference call remarks.