Printer Friendly

MOOG'S THIRD QUARTER PROFITS UP 11 PERCENT

 EAST AURORA, N.Y., Aug. 6 /PRNewswire/ -- Moog Inc. (AMEX: MOG) reported net earnings for the third fiscal quarter of $1.5 million, or $.20 a share compared with $1.4 million, or $.18 a share a year earlier. The 11 percent earnings increase is the result of a $2.1 million profit in the U.S. offset by a $.7 million loss in the International segment.
 Net sales of $72.2 million for the quarter were 5 percent below sales of $75.6 million for the same quarter a year ago. In the U.S., a 13 percent sales decline to $46.2 million is the result of cutbacks in U.S. defense spending. Sales in the International segment were up 14 percent to $26.0 million reflecting a slight increase in Germany and a more dramatic increase in Japan which is amplified by the strengthening Yen. "Although International sales in this quarter were up compared to last year", said Robert T. Brady, president, "our incoming orders in Europe are short of our expectations and in Germany, they are down compared to last year. Unfortunately, the German economy is still contracting and our sales there will be affected."
 For the nine month period, consolidated sales were $215 million, down 6 percent from $230 million a year ago. Year-to-date earnings of $3.7 million, or $.48 a share compare with last year's year-to-date net loss of $3.7 million, or $.48 a share. Last year's loss was dominated by the $7.2 million after tax restructuring charge the company recorded in its first fiscal quarter.
 Backlog on June 30 was $195 million, down 4 percent from a year ago. Lower backlog primarily reflects the anticipated reduction in the U.S. defense spending.
 Moog's current earnings are being generated principally in the U.S. In the International segment, Moog's Pacific operations are profitable, but are not enough to offset losses in Europe. Profits made in the Pacific, principally in Japan, are taxable there. The company has used up its tax loss carrybacks in Germany. As a result, losses there are not offset by an income tax refund.
 "We consider the results for this quarter mixed", said Brady. "Our U.S. operations are nicely profitable despite reduced revenues. Our cost cutting in Europe is proceeding according to plan. Losses in our International segment are half of what they were in this quarter a year ago, but restructurings in Europe occur at a painfully slow pace. Additionally, the continuing recession in Europe and disappointing incoming orders in Germany suggest our return to profitability there is probably another three to six months away."
 "Overall, the restructuring implemented in the Domestic Operations last year has returned the U.S. Company to profitability," said Richard A. Aubrecht, chairman. "In Europe, the restructuring involved a certain amount of disruption and, with the weak economy, the positive impact is taking longer to show through. However, because of our underlying strengths, we remain optimistic about the long-term prospects."
 Moog Inc. is a worldwide manufacturer of high performance controls used in commercial, industrial, aerospace and defense applications.
 Consolidated Statements of Earnings (Unaudited)
 MOOG INC. AND SUBSIDIARIES
 (dollars in thousands except per share data)
 THREE MONTHS ENDED 6/30 NINE MONTHS ENDED 6/30
 1993 1992 1993 1992
 NET SALES $72,151 $75,624 $215,109 $229,932
 OTHER INCOME 1,314 1,071 2,472 2,498
 Total 73,465 76,695 217,581 232,430
 COSTS AND EXPENSES
 COST OF SALES 51,328 53,383 150,243 164,037
 R & D EXPENSES 3,553 4,692 12,052 14,336
 SELLING, GENERAL
 & ADMIN. EXP. 13,037 13,048 39,747 38,048
 INTEREST EXPENSE 2,724 3,340 8,446 10,045
 FOREIGN CURRENCY
 EXCHANGE LOSS 151 24 556 202
 OTHER EXPENSES 136 116 347 539
 RESTRUCTURING EXP. - - - 10,061
 Total 70,929 74,603 211,391 237,268
 EARNINGS (LOSS) BEFORE
 INCOME TAXES 2,536 2,092 6,190 (4,838)
 INCOME TAXES
 CURRENT 957 (1,111) 611 (3,318)
 DEFERRED 57 1,830 1,544 2,157
 Total 1,014 719 2,155 (1,161)
 EARNINGS (LOSS)
 BEFORE EXTRAORDINARY
 ITEM $ 1,522 $ 1,373 $ 4,035 $ (3,677)
 EXTRAORDINARY ITEM,
 NET OF TAX - - (357) -
 NET EARNINGS (LOSS) $ 1,522 $ 1,373 $ 3,678 $ (3,677)
 EARNINGS (LOSS)
 PER SHARE:
 BEFORE EXTRA. ITEM $.20 $.18 $.52 $(.48)
 - EXTRAORDINARY
 ITEM - - (.05) -
 - NET EARNINGS
 (LOSS) $.20 $.18 $.48 $(.48)
 AVERAGE COMMON
 SHARES
 OUTSTANDING 7,713,465 7,713,465 7,713,465 7,719,244
 -0- 8/6/93
 /CONTACT: Susan Johnson of Moog Inc., 716-652-2000, or by fax, 716-687-4457/
 (MOG)


CO: Moog Inc. ST: New York IN: ARO SU: ERN

BM -- CL006 -- 0205 08/06/93 09:27 EDT
COPYRIGHT 1993 PR Newswire Association LLC
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 1993 Gale, Cengage Learning. All rights reserved.

Article Details
Printer friendly Cite/link Email Feedback
Publication:PR Newswire
Date:Aug 6, 1993
Words:790
Previous Article:THE TIMKEN COMPANY DECLARES QUARTERLY DIVIDEND
Next Article:SOUTHERN INDIANA GAS AND ELECTRIC COMPANY RELEASES SECOND QUARTER RESULTS
Topics:

Terms of use | Copyright © 2016 Farlex, Inc. | Feedback | For webmasters