Earnings Follow Orders - Down!

Earnings Follow Orders & Deliveries -- Down!

Moog Inc. (MOG.A - Snapshot Report) lowered its expectations for fiscal year 2009 to sales of ~ $1.85 billion and EPS in a range of $1.75 to $2.15. Previous guidance was for sales of $1.988 billion – which included $41 million from recent acquisitions – and EPS of $2.80. Restructuring charges account for some 25¢ of reduced earnings, mostly in the second half of the fiscal year.

Incoming orders for some product lines within Moog’s Industrial Systems segment have dropped dramatically: Plastics -- down 77%; Metal Forming -- down 60%; Steel Mills -- down 60%; and Simulators – down 28%. Together, these product lines accounted for $251 million of fiscal 2008 sales.

Also impacting the outlook is the projected decline in deliveries of commercial transports and executive jets as well as associated aftermarket revenues.

On the conference call today, management indicated that earnings for Q2-09 -- which will be announced in a couple of weeks -- could be in the range of 50¢ to 60¢.

2010 could be better, what with anticipated increased revenues from the V-22, F-35 and 787 programs as well as defense MRO, coupled with a reduction in R&D expenditures, but it’s too early to tell yet.

Read the full analyst report on MOG.A