Moog Announces Fourth Quarter EPS Up 10% and Fiscal 2012 EPS Up 13%

EAST AURORA, NY--(Marketwire - Nov 2, 2012) - Moog Inc. (NYSE: MOG.A) (NYSE: MOG.B) announced today fiscal year 2012 sales of $2.47 billion, up 6%. Net earnings of $152 million were 12% higher and earnings per share of $3.33 were 13% higher compared to last year. For the fourth quarter, sales of $633 million were up 2%. Net earnings were $42 million, up 10%, and earnings per share of $.91 were 10% higher than last year.

Aircraft sales for the year were $963 million, up 13%. Commercial aircraft sales for the year of $388 million were up 21%. OEM sales to Boeing increased 19%, sales to business jet manufacturers were 35% higher and commercial aftermarket revenues of $117 million were up 14% over a year ago. Total military sales were $576 million, up 9%, led by strong foreign military sales, F-35 production and aftermarket sales. Military aftermarket sales were a record $214 million.

In the fourth quarter, Aircraft sales of $254 million increased 11% from the same quarter last year. Commercial revenues increased 28% as production rates for the Boeing 787 aircraft continued to ramp up. Military aircraft sales were up marginally on strong aftermarket activity.

Space and Defense segment sales of $359 million for the year were 1% higher than a year ago. Sales of controls for launch vehicles and NASA increased 22%, in part due to new common thrust vector controls for the Delta IV and Atlas launch vehicles. Sales of satellite controls were 34% higher due to recent acquisitions, while security product sales were lower as sales for the Driver's Vision Enhancer program wound down. For the fourth quarter, Space and Defense sales mirrored the year's trend.

The Industrial Systems segment had revenues for the year of $634 million, a slight increase over last year. Sales for simulation and test equipment were very strong, up 22%. Non-renewable energy products were 20% higher. Industrial automation sales were softer, down 5%, due to currency effects. Wind energy sales were 14% lower than last year as demand in China continued to wane. Industrial Systems sales in the fourth quarter were down 14% on softer industrial automation sales, reduced demand for wind energy products and a stronger U.S. dollar.

Components Group sales were $374 million for the year, up 6%. Growth in marine, medical and industrial markets more than offset slightly lower aircraft sales. Sales for the quarter were a record $100 million. The quarter results reflected higher marine sales, in part due to the recent Tritech acquisition.

The Medical Devices segment generated sales of $140 million for the year, down 2% from the year previous on lower sensor and surgical handpiece sales. For the quarter, sales in Medical Devices of $36 million were down 3% from a year ago.

Year-end backlog of $1.3 billion was level with the prior year.

The Company also updated its projections for fiscal 2013. Given the uncertain global industrial economic outlook, the Company's forecast includes sales of $2.65 billion with a range of +/- $25 million. Net earnings are forecast between $160 million and $170 million and earnings per share between $3.50 and $3.70. The midpoint, $3.60, represents an 8% increase in EPS.

"Over the last three years, sales have increased 34% and earnings per share are up 68%," said John Scannell, CEO. "We have delivered this improvement despite the reduced military spending and the tepid industrial recovery. We believe our diversity across markets and geographies, as well as our excellent position on the most important military and commercial programs has been the key to this strong performance and we're confident these factors will continue to benefit us in 2013."

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.

MoogInc.
CONSOLIDATED STATEMENTS OF EARNINGS
(dollars in thousands, except per share data)
			Three Months Ended						Twelve Months Ended
		September 29,				October 1,			September 29,			October 1,
			2012			2011			2012			2011
Net sales			$	632,727		$	619,061		$	2,469,536		$	2,330,680
Cost of sales				440,406			440,269			1,724,232			1,651,191
Gross profit				192,321			178,792			745,304			679,489
Research and development				32,118			29,033			116,403			106,385
Selling, general and administrative				97,888			91,719			385,051			354,727
Interest				8,564			8,654			34,312			35,666
Other				1,007			333			697			(1,074	)
Earnings before income taxes				52,744			49,053			208,841			183,785
Income taxes				10,947			10,892			56,379			47,764
Net earnings			$	41,797		$	38,161		$	152,462		$	136,021
Net earnings per share
	Basic		$	0.92		$	0.84		$	3.37		$	2.99
	Diluted		$	0.91		$	0.83		$	3.33		$	2.95
Average common shares outstanding
	Basic			45,289,341			45,573,714			45,246,960			45,501,806
	Diluted			45,704,007			46,037,119			45,718,324			46,047,422

MoogInc.
CONSOLIDATED SALES AND OPERATING PROFIT
(dollars in thousands)
			Three Months Ended								Twelve Months Ended
		September 29,					October 1,			September 29,					October 1,
			2012				2011				2012				2011
Net Sales
	Aircraft Controls		$	253,733			$	227,818			$	963,421			$	850,490
	Space and Defense Controls			93,412				92,536				358,755				355,762
	Industrial Systems			149,742				173,312				633,713				629,312
	Components			99,956				88,503				374,081				353,142
	Medical Devices			35,884				36,892				139,566				141,974
Net sales			$	632,727			$	619,061			$	2,469,536			$	2,330,680
Operating Profit and Margins
	Aircraft Controls		$	29,146			$	21,478			$	104,582			$	83,776
				11.5	%			9.4	%			10.9	%			9.9	%
	Space and Defense Controls			10,316				11,596				42,854				49,245
				11.0	%			12.5	%			11.9	%			13.8	%
	Industrial Systems			12,265				18,676				63,243				62,805
				8.2	%			10.8	%			10.0	%			10.0	%
	Components			16,138				8,930				57,303				50,353
				16.1	%			10.1	%			15.3	%			14.3	%
	Medical Devices			998				2,079				5,443				241
				2.8	%			5.6	%			3.9	%			0.2	%
Total operating profit				68,863				62,759				273,425				246,420
				10.9	%			10.1	%			11.1	%			10.6	%
Deductions from Operating Profit
	Interest expense			8,564				8,654				34,312				35,666
	Equity-based compensation expense			686				1,033				6,226				6,952
	Corporate expenses and other			6,869				4,019				24,046				20,017
Earnings before Income Taxes			$	52,744			$	49,053			$	208,841			$	183,785

MoogInc.
CONSOLIDATED BALANCE SHEETS
(dollars in thousands)
			September 29,			October 1,
			2012			2011
Cash			$	148,841		$	113,679
Receivables				744,551			655,805
Inventories				538,262			502,373
Other current assets				117,254			108,589
	Total current assets			1,548,908			1,380,446
Property, plant and equipment				546,179			503,872
Goodwill and intangible assets				975,049			932,566
Other non-current assets				35,771			26,083
	Total assets		$	3,105,907		$	2,842,967
Short-term borrowings			$	90,774		$	9,283
Current installments of long-term debt				3,186			1,407
Contract loss reserves				48,428			45,173
Other current liabilities				521,488			490,527
	Total current liabilities			663,876			546,390
Long-term debt				670,662			714,757
Other long-term liabilities				466,579			389,929
	Total liabilities			1,801,117			1,651,076
Shareholders' equity				1,304,790			1,191,891
	Total liabilities and shareholders' equity		$	3,105,907		$	2,842,967