Moog Inc.’s third-quarter profits fell by 12 percent as write-downs related to its struggling medical device business and an investment in a technology start-up canceled out what otherwise would have been a 7 percent improvement in its earnings.
The Elma motion control equipment maker’s earnings, excluding write-downs that totaled more than $14 million, were better than analysts had expected. The company also issued earnings guidance for the upcoming fiscal year that forecast a 13 percent increase in earnings from its remaining operations – roughly in line with what analysts were predicting – along with a 3 percent improvement in sales.
“Our underlying operations were strong and our restructuring efforts are paying off,” said John Scannell, Moog’s chief executive officer.
Moog said it earned $34.2 million, or 75 cents per share, during the quarter that ended in June, down from $38.9 million, or 85 cents per share, a year earlier.
The earnings were depressed by a $7 million write-down, equal to 11 cents per share, stemming from the sale of its Ethox medical device business in Buffalo, along with a $2 million write-down from a technology investment in its industrial business. Moog also had a $5 million write-down in its space and defense business
Excluding those write-downs, Moog earned $41 million, or 90 cents per share, which was better than the 83 cents per share that analysts were expecting.
“There’s a lot of moving pieces in 2013, but I think 2014 shows where we think the business is going,” Scannell said Friday. “It’s not an impressive sales forecast, but quite a nice improvement on the earnings side.”
Moog’s sales rose by 10 percent to $671 million from $611 million.
Sales grew by 13 percent in the company’s aircraft business, due partly to a 42 percent increase in sales for the F-35 fighter jet program, while operating profits improved by 12 percent to $31 million.
email: drobinson@buffnews.com
The Elma motion control equipment maker’s earnings, excluding write-downs that totaled more than $14 million, were better than analysts had expected. The company also issued earnings guidance for the upcoming fiscal year that forecast a 13 percent increase in earnings from its remaining operations – roughly in line with what analysts were predicting – along with a 3 percent improvement in sales.
“Our underlying operations were strong and our restructuring efforts are paying off,” said John Scannell, Moog’s chief executive officer.
Moog said it earned $34.2 million, or 75 cents per share, during the quarter that ended in June, down from $38.9 million, or 85 cents per share, a year earlier.
The earnings were depressed by a $7 million write-down, equal to 11 cents per share, stemming from the sale of its Ethox medical device business in Buffalo, along with a $2 million write-down from a technology investment in its industrial business. Moog also had a $5 million write-down in its space and defense business
Excluding those write-downs, Moog earned $41 million, or 90 cents per share, which was better than the 83 cents per share that analysts were expecting.
“There’s a lot of moving pieces in 2013, but I think 2014 shows where we think the business is going,” Scannell said Friday. “It’s not an impressive sales forecast, but quite a nice improvement on the earnings side.”
Moog’s sales rose by 10 percent to $671 million from $611 million.
Sales grew by 13 percent in the company’s aircraft business, due partly to a 42 percent increase in sales for the F-35 fighter jet program, while operating profits improved by 12 percent to $31 million.
email: drobinson@buffnews.com