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MOOG MAY LOSE $15 MILLION UNDER DEFENSE CUTBACKS NO LAYOFFS LIKELY AT LOCAL PLANT EVEN IF BUSH PLAN GOES THROUGH

Moog Inc. could lose nearly $15 million in future contract orders under the Bush administration's proposed termination of 20 Defense Department contracts.

However, Robert T. Brady, Moog president and chief executive officer, said he does not expect that to happen and that he does not expect any layoffs at the plant even if the programs are stopped.

Other area defense contractors, such as Bell Aerospace, Comptek Research and Sierra Research, said the announced terminations either would not affect them or that it is too early to tell.

Brady said a proposed cancellation of the manufacture of the F-15E jet fighter would affect Moog because the Town of Elma firm has made part of its flight controls for 20 years. The present contract, he said, is less than $5 million.

He said Moog hopes to win a contract of $5 million to 10 million to make part of the flight control system of the V-22 Osprey tilt-rotor aircraft, which has not gone into production. "It would be a pickup for us," Brady said.

The $1.4 billion Osprey program is on the list the administration has recommended be canceled.

However, the terminations must be approved by Congress, which is virtually certain to make changes in the defense budget.

Brady said he does not expect Congress to go along with all the proposals.

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