Moog Revises '09 Sales and Earnings Guidance

Moog Inc. announced that in response to a dramatic slowdown in orders for its industrial products and anticipated reductions in commercial airplane deliveries, the Company has revised its fiscal '09 sales and earnings guidance.

In a release on April 8, the Company reported that it is now projecting sales of approximately $1.85 billion and net earnings of $94 million or $2.20 per share before a restructuring charge which is expected to reduce earnings per share by $.25. The Company also cautions that this forecast should be considered in a range of plus or minus $.20 per share. Previous guidance was $2.80 per share.

Over the last three months the Company has experienced a sharp decline in incoming orders in some of its major industrial product lines. Incoming orders for the Company's largest industrial product line, controls for plastics machinery, were down 77 percent from last year's level. Similarly, orders for metal forming equipment and gauge controls for steel mills were down by 60 percent and 37 percent, respectively. In addition, orders for motion bases used in flight training simulators are running at a level 28 percent below last year.

Demand for the Company's military aircraft, space and defense controls product lines has remained firm. On the other hand, the Company has factored into this revised guidance an anticipated reduction in the sales of controls for Boeing and Airbus commercial transports and for certain business jet programs. Earlier projections had anticipated a decline in commercial aircraft aftermarket revenues, but the new forecast projects further reductions.

"Given the state of the capital goods markets in Europe and Asia, we should not be surprised that many of our industrial customers are really hunkering down and everyone is anticipating a slowdown in commercial aircraft," said R. T. Brady, Chairman, CEO. "We've been through downturns before and we're taking all appropriate actions to deal with this revenue shortfall in order to minimize the financial impact."

Brady will describe the Company's updated guidance in a conference call on Thursday, April 9th at 11 AM ET. Listeners can access the conference call live over the internet at: http://www.moog.com/Home/Investors/Webcast/. Please allow 15 minutes prior to the call to visit the site to download and install any necessary audio software. After the call has taken place, the prepared remarks will be archived on our website.

Moog Inc. is a designer, manufacturer, and integrator of precision control components and systems.

((Comments on this story may be sent to newsdesk@closeupmedia.com))

Related terms: aircraft, asia, business, ceo, commercial, conference, defense, earnings, europe, industrial, industrial products, machinery, manufacturer, military, plastics, restructuring, revenue, sales, software, steel mills, training