Moog Inc. is feeling upbeat about the direction its business segments are headed.
"We're feeling the businesses are starting to perform better than I would say over the last couple of years," said John Scannell, Moog's chairman and CEO. "We're starting to see some positive signs."
The Elma-based motion control equipment maker reported fiscal second-quarter profits of $32 million, up 3 percent from $31 million a year ago. The company posted diluted earnings per share of 88 cents, up from 85 cents a year ago. The earnings beat the consensus analyst forecast by 3 cents.
Moog's largest segment by sales, aircraft controls, reported a 7 percent increase in revenues, to $290 million. "The trends we have been predicting over the last five, six or seven years are starting to play out," Scannell said.
The company is benefiting from supplying the U.S. military's F-35 Joint Strike Fighter. "It's starting to ramp nicely, so it's now over $100 million in sales," Scannell said. "And it's forecast to continue to ramp."
The overall picture for defense spending looks positive to Moog, he said. "We are seeing (2017) as the year when defense starts to improve."
Sales in Moog's industrial systems segment dropped 10 percent from a year ago, to $115 million. Scannell said he is hopeful that segment is headed for improvement.
"It feels like maybe we're hitting the bottom there and there may be some better times to come," he said.
Moog is preparing for a $32.6 million expansion of its Elma manufacturing campus, a project driven by the need for more space to support the Joint Strike Fighter.
Last year, Moog disclosed plans for an engine test facility, but hasn't committed to going forward with it. "We're still looking through that and all the options of that," he said.
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