Moog Inc. chief executive Robert T. Brady likes what he sees from each corner of the Elma company's business.
The aerospace company's third-quarter profits increased 20 percent from a year ago to $25.6 million, bolstered by sales growth in all five of its business segments. Moog reported earnings per share of 59 cents, up from 50 cents a year ago and matching analysts' forecasts.
"It was a really good quarter in the midst of a really good year," said Brady, Moog's chairman and chief executive officer, on Friday.
Moog's sales increased 21 percent to $404 million. Its aircraft controls business led with $150 million in sales, up 15 percent. Boeing has started production of the 787 aircraft, giving Moog a boost, since the company supplies parts for it.
"The growth in the aircraft business is on the commercial side," Brady said.
The aircraft controls segment's operating profits increased slightly to $15.8 million. Research and development costs increased by $1.4 million from the previous quarter. While Moog expects R&D costs related to the 787 to decline soon, that has not yet happened, Brady said.
Moog's industrial controls segment recorded $112 million in sales, up 12 percent from the year before. Part of that growth was stimulated by sales to customers in Europe. Moog supplies controls to makers of big-ticket machinery, and those companies, for the most part, are exporters, Brady said.
Operating profits for the industrial controls business increased 28 percent to $15.4 million.
Components sales rose 19 percent to $73 million, bolstered by programs including the Blackhawk and CH-47 helicopters. The segment's operating profits rose 8 percent to $10.9 million.
Sales in the space and defense controls segment rose 32 percent to $48 million, with demand for defense controls products fueling the growth. Operating profits jumped 71 percent to $6.2 million.
The company's relatively new medical devices segment generated $22 million in sales, more than triple the $6.6 million from a year ago. Its operating profit was $829,000.
The company's backlog of $731 million was 15 percent higher than a year ago.
Brady said he was upbeat about the prospects for each of the operations. "We're anticipating sales growth in each of the segments," he said.
Moog announced revised guidance for fiscal 2007, which ends in September, and gave its initial projection for fiscal 2008.
Moog now expects full-year to earn $100.6 million on sales of $1.54 billion. Last April, it projected 2007 fiscal year profits of $98 million to $102 million on sales of $1.5 billion.
For fiscal 2008, Moog projects $115 million to $118 million in profits on sales of $1.71 billion to $1.73 billion.
Moog's stock closed at $42 per share on Friday, down $2.52.