MOOG AWARDED LARGE COMMERCIAL CONTRACT
MOOG AWARDED LARGE COMMERCIAL CONTRACT EAST AURORA, N.Y., Nov. 18 /PRNewswire/ -- Moog Inc.
(AMEX: MOG.A, MOG.B) announced today that it has been selected by Boeing Commercial Airplane Group to supply spoiler power control units for Boeing's new airplane, the 777. These servoactuators deploy spoiler flight surfaces, which are part of the 777's fly-by-wire flight control system. There are 14 spoiler actuators on each 777.
Contracts for the initial production phase will generate revenues of nearly $10 million for Moog. The ultimate revenues from this selection will be many times the value of the initial contract. In addition to the new product award, Moog entered into multi-year pricing agreements with Boeing for delivery of its existing 747 and 767 autopilot actuators and servovalves used on all Boeing airplanes. Boeing will place orders for this equipment at regular intervals. R. T. Brady, Moog Inc. president, reported that the continuation of these agreements, together with the new 777 contract, will result in a cumulative value to Moog of more than $100 million in the years to come. The immediate result of the 777 contract award, Brady said, will be a charge to fiscal 1991 fourth quarter earnings of $600,000 after taxes (or $.08 per share), reflecting development and early production costs not recovered in initial contract revenues. Despite this charge, Brady said, Moog expects in the next week to report fourth quarter earnings of about $1.6 million or $.20 per share. This would bring fiscal 1991 earnings to $7.6 million or $.97 per share, an 11 percent increase from the prior year. "We are delighted with our broadening relationship with Boeing," Brady said. "Boeing's business is currently the most secure and predictable in the aerospace industry and we're fortunate that the application of our controls on Boeing airplanes is one of the growth areas in our business." Moog is a worldwide manufacturer of precision controls for aerospace, defense and industrial applications. -0- 11/18/91 /CONTACT: G. V. Boyler of Moog, 716-652-2000/ (MOG) CO: Moog Inc.; Boeing Commercial Airplane Group ST: New York IN: ARO SU: CON SH-GK -- NY013 -- 1241 11/18/91 09:01 EST
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|Date:||Nov 18, 1991|
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