By EAST AURORA EDITOR (2/1/2010 5:14:08 AM)
(RTTNews) - Moog Inc. (MOG-A: News , MOG-B), a precision control components and systems company, reported Monday a decline in profit for the first quarter, despite an increase in revenues. The company also reaffirmed its earnings and sales forecast for fiscal 2010.
The East Aurora, New York-based company's net earnings for the first quarter declined to $21.56 million or $0.47 per share from $30.27 million or $0.70 per share in the previous year.
On average, six analysts polled by Thomson Reuters expected the company to earn $0.47 per share for the quarter. Analysts' estimates typically exclude special items.
The company noted that earnings per share were down a third from the prior-year quarter, the quarter before the recession began to affect its results.
Net sales for the quarter grew 11% to $495.18 million from $446.09 million in the prior year. Five analysts estimated revenues of $507.84 million for the quarter.
Segment-wise, net sales from Aircraft Controls increased to $175.06 million from $163.15 million in the year earlier, helped by sales related to the acquisitions of the Wolverhampton flight controls business and the Fernau navigation aids business in fiscal 2009.
Space and Defense Controls posted revenues of $69.49 million, down from $71.38 million in the preceding year. According to the company, prior-year included $14 million of sales for the Driver's Vision Enhancer which did not repeat this year.
Industrial Systems revenues improved 24% to $136.35 million from $110.03 million in the previous year. Components Group revenues were $84.91 million, higher than $81.50 million in the prior-year period. Revenues from Medical Devices segment increased to $29.37 million from $20.02 million in the comparable quarter a year ago.
Total operating profit declined to $48.57 million from $51.36 million in the preceding year.
Cost of sales for the period increased to $350.78 million from $308.24 million in the same quarter a year ago.
Consolidated backlog for the twelve months to January 2, 2010 was $1.1 billion, an increase of 25% from last year, mainly due to acquisitions.
For fiscal 2010, the company still expects net earnings of $103 million and earnings per share of $2.25 with a range of plus or minus $0.10. Moog also reaffirmed its sales forecast of $2.12 billion. Analysts currently anticipate earnings of $2.26 per share on revenues of $2.11 billion for the year.
Brady, chairman and chief executive officer said, "Our Company is in the early stages of a recovery from the recession-impacted results of last year. Our recent acquisitions have provided sales momentum and the segments that were most affected last year are slowly improving their profitability. We're anticipating slow but steady improvement as the year progresses."
MOG-A closed Friday's regular trading at $30.18 on the NYSE, while MOG-B ended at $30.60.
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