Moog Reports Second Quarter Earnings EAST AURORA,

EAST AURORA, NY--(Marketwired - May 1, 2015) - Moog Inc. ( NYSE : MOG.A ) ( NYSE : MOG.B ) today announced second quarter net earnings of $32 million and earnings per share of $.80, a 2% decrease from last year. Adjusted EPS of $.96 was up 17%. Total sales of $637 million were also down 2% from a year ago.

The results for the quarter included a non-cash charge of $8 million related to an accounting correction in the Space and Defense segment and a non-cash charge of $1 million on the sale of two small operations in the Medical Devices segment.

Aircraft segment sales in the quarter were $274 million, unchanged from a year ago. Commercial Aircraft sales were 5% higher, at $140 million, with commercial OEM sales, up 12% to $111 million. Sales to Boeing were $64 million and Airbus sales were $22 million. Commercial aftermarket sales of $29 million were off 16% on last year's strong initial provisioning spares for the 787 program.

Military aircraft sales were down $7 million, to $134 million. OEM sales were down $2 million, to $80 million, with lower revenues on F-18 production and the KC-46 tanker development program offsetting higher F-35 Joint Strike Fighter and V-22 tilt rotor sales. Military aftermarket sales were down 8%, to $54 million.

Space and Defense segment sales were $93 million, down 2% from a year ago. Defense sales were up 2% on strong sales of missile and naval controls that were offset by weak security sales. Space sales were down 6%.

The Company's Industrial Systems segment had sales of $129 million, down 15%, with the decline primarily tied to negative foreign currency effects. A general weakness across global industrial markets resulted in lower sales for industrial automation applications, down 15%. Sales of energy controls were off 16% and sales of simulation and test products, including motion bases for flight training simulators, were 12% lower.

Sales for the Components segment were 7% higher, at $109 million. Sales of aerospace and defense products were $46 million, up 11%. Industrial product sales were up 9%, energy sales were 6% higher and medical sales were mostly unchanged.

The Medical Devices segment had sales of $32 million, a 16% increase, with improvements in sales for pumps and administration sets.

The Company's twelve month backlog is $1.3 billion.

The Company updated its projections for 2015 to include sales for the year at $2.54 billion, net earnings of $142 million and earnings per share of $3.55. The moderated guidance includes $.24 of negative special adjustments.

"We had some unusual charges this quarter," said John Scannell, Chairman and CEO. "Excluding these charges, our underlying business performed well in the face of an adverse shift in our aircraft sales, and on-going macroeconomic headwinds. As we navigate through these challenges, we continue to focus on operational improvements, strong cash flow and allocating capital to create value for our shareholders."

Moog Inc. is a worldwide designer, manufacturer, and integrator of precision control components and systems. Moog's high-performance systems control military and commercial aircraft, satellites and space vehicles, launch vehicles, missiles, automated industrial machinery, wind energy, marine and medical equipment. Additional information about the Company can be found at www.moog.com .

Cautionary Statement

Information included or incorporated by reference in this report that does not consist of historical facts, including statements accompanied by or containing words such as "may," "will," "should," "believes," "expects," "expected," "intends," "plans," "projects," "approximate," "estimates," "predicts," "potential," "outlook," "forecast," "anticipates," "presume" and "assume," are forward-looking statements. Such forward-looking statements are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. These statements are not guarantees of future performance and are subject to several factors, risks and uncertainties, the impact or occurrence of which could cause actual results to differ materially from the expected results described in the forward-looking statements. These important factors, risks and uncertainties include:

• the markets we serve are cyclical and sensitive to domestic and foreign economic conditions and events, which may cause our operating results to fluctuate;
• we operate in highly competitive markets with competitors who may have greater resources than we possess;
• we depend heavily on government contracts that may not be fully funded or may be terminated, and the failure to receive funding or the termination of one or more of these contracts could reduce our sales and increase our costs;
• we make estimates in accounting for long-term contracts, and changes in these estimates may have significant impacts on our earnings;
• we enter into fixed-price contracts, which could subject us to losses if we have cost overruns;
• we may not realize the full amounts reflected in our backlog as revenue, which could adversely affect our future revenue and growth prospects;
• if our subcontractors or suppliers fail to perform their contractual obligations, our prime contract performance and our ability to obtain future business could be materially and adversely impacted;
• contracting on government programs is subject to significant regulation, including rules related to bidding, billing and accounting kickbacks and false claims, and any non-compliance could subject us to fines and penalties or possible debarment;
• the loss of The Boeing Company as a customer or a significant reduction in sales to The Boeing Company could adversely impact our operating results;
• our new product research and development efforts may not be successful which could reduce our sales and earnings;
• our inability to adequately enforce and protect our intellectual property or defend against assertions of infringement could prevent or restrict our ability to compete;
• our business operations may be adversely affected by information systems interruptions, intrusions or new software implementations;
• our indebtedness and restrictive covenants under our credit facilities could limit our operational and financial flexibility;
• significant changes in discount rates, rates of return on pension assets, mortality tables and other factors could adversely affect our earnings and equity and increase our pension funding requirements;
• a write-off of all or part of our goodwill or other intangible assets could adversely affect our operating results and net worth;
• our sales and earnings may be affected if we cannot identify, acquire or integrate strategic acquisitions, or if we engage in divesting activities;
• our operations in foreign countries expose us to political and currency risks and adverse changes in local legal and regulatory environments;
• unforeseen exposure to additional income tax liabilities may affect our operating results;
• government regulations could limit our ability to sell our products outside the United States and otherwise adversely affect our business;
• new governmental regulations and customer demands related to conflict minerals may adversely impact our operating results;
• the failure or misuse of our products may damage our reputation, necessitate a product recall or result in claims against us that exceed our insurance coverage, thereby requiring us to pay significant damages;
• future terror attacks, war, natural disasters or other catastrophic events beyond our control could negatively impact our business;
• our operations are subject to environmental laws, and complying with those laws may cause us to incur significant costs; and
• we are involved in various legal proceedings, the outcome of which may be unfavorable to us.

These factors are not exhaustive. New factors, risks and uncertainties may emerge from time to time that may affect the forward-looking statements made herein. Given these factors, risks and uncertainties, investors should not place undue reliance on forward-looking statements as predictive of future results. We disclaim any obligation to update the forward-looking statements made in this report.

Moog Inc.
CONSOLIDATED STATEMENTS OF EARNINGS
(dollars in thousands, except per share data)
			Three Months Ended							Six Months Ended
			April 4,  2015			March 29,  2014				April 4,  2015			March 29,  2014
NET SALES			$	637,246		$	649,878			$	1,267,769		$	1,293,263
COST OF SALES				463,696			453,060				910,301			897,136
GROSS PROFIT				173,550			196,818				357,468			396,127
	Research and development			31,404			37,225				62,725			72,980
	Selling, general and administrative			92,158			104,832				189,985			204,733
	Interest			7,669			2,444				13,037			7,573
	Other			921			(1,294	)			885			10,373
EARNINGS BEFORE INCOME TAXES				41,398			53,611				90,836			100,468
INCOME TAXES				9,305			15,886				23,478			30,646
NET EARNINGS			$	32,093		$	37,725			$	67,358		$	69,822
NET EARNINGS PER SHARE
	Basic		$	0.81		$	0.83			$	1.68		$	1.54
	Diluted		$	0.80		$	0.82			$	1.66		$	1.52
AVERAGE COMMON SHARES OUTSTANDING
	Basic			39,601,795			45,377,465				40,116,731			45,381,058
	Diluted			39,984,668			45,945,398				40,550,814			45,977,716

Moog Inc.
CONSOLIDATED SALES AND OPERATING PROFIT
(dollars in thousands)
			Three Months Ended								Six Months Ended
			April 4,  2015				March 29,  2014				April 4,  2015				March 29,  2014
Net sales:
	Aircraft Controls		$	274,396			$	274,810			$	540,764			$	540,226
	Space and Defense Controls			93,256				95,305				193,211				194,755
	Industrial Systems			129,145				151,198				262,511				295,277
	Components			108,701				101,160				208,606				203,845
	Medical Devices			31,748				27,405				62,677				59,160
Net sales			$	637,246			$	649,878			$	1,267,769			$	1,293,263
Operating profit and margins:
	Aircraft Controls		$	22,336			$	25,867			$	46,794			$	57,638
				8.1	%			9.4	%			8.7	%			10.7	%
	Space and Defense Controls			4,909				9,006				13,635				16,859
				5.3	%			9.4	%			7.1	%			8.7	%
	Industrial Systems			12,685				14,899				25,904				27,185
				9.8	%			9.9	%			9.9	%			9.2	%
	Components			13,956				13,546				28,656				29,735
				12.8	%			13.4	%			13.7	%			14.6	%
	Medical Devices			2,660				1,377				7,258				5,005
				8.4	%			5.0	%			11.6	%			8.5	%
Total operating profit				56,546				64,695				122,247				136,422
				8.9	%			10.0	%			9.6	%			10.5	%
Deductions from operating profit:
	Interest expense			7,669				2,444				13,037				7,573
	Equity-based compensation expense			568				1,218				3,966				4,992
	Corporate expenses and other			6,911				7,422				14,408				23,389
Earnings before income taxes			$	41,398			$	53,611			$	90,836			$	100,468

Moog Inc.
CONSOLIDATED BALANCE SHEETS
(dollars in thousands)
				April 4,  2015			September 27,  2014
ASSETS
CURRENT ASSETS
	Cash and cash equivalents			$	261,658		$	231,292
	Receivables				737,936			780,874
	Inventories				506,299			517,056
	Other current assets				129,706			134,842
		TOTAL CURRENT ASSETS			1,635,599			1,664,064
PROPERTY, PLANT AND EQUIPMENT, net					535,692			555,348
GOODWILL					735,517			757,852
INTANGIBLE ASSETS, net					157,197			178,070
OTHER ASSETS					55,565			53,118
TOTAL ASSETS				$	3,119,570		$	3,208,452
LIABILITIES AND SHAREHOLDERS' EQUITY
CURRENT LIABILITIES
	Short-term borrowings			$	420		$	103,660
	Current installments of long-term debt				33			5,262
	Accounts payable				177,111			162,667
	Customer advances				139,853			145,500
	Contract loss reserves				33,166			35,984
	Other accrued liabilities				230,867			269,731
		TOTAL CURRENT LIABILITIES			581,450			722,804
LONG-TERM DEBT, excluding current installments					1,030,082			765,114
LONG-TERM PENSION AND RETIREMENT OBLIGATIONS					259,301			288,216
DEFERRED INCOME TAXES					92,100			83,931
OTHER LONG-TERM LIABILITIES					1,659			972
		TOTAL LIABILITIES			1,964,592			1,861,037
COMMITMENTS AND CONTINGENCIES					--			--
SHAREHOLDERS' EQUITY
	Common stock				51,280			51,280
	Other shareholders' equity				1,103,698			1,296,135
		TOTAL SHAREHOLDERS' EQUITY			1,154,978			1,347,415
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY				$	3,119,570		$	3,208,452

Moog Inc.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(dollars in thousands)
					Six Months Ended
					April 4,  2015				March 29,  2014
CASH FLOWS FROM OPERATING ACTIVITIES
	Net earnings				$	67,358			$	69,822
	Adjustments to reconcile net earnings to net cash provided (used) by operating activities:
		Depreciation				40,460				39,187
		Amortization				12,946				15,783
		Equity-based compensation expense				3,966				4,992
		Other				12,419				14,688
	Changes in assets and liabilities providing (using) cash:
		Receivables				20,461				21,163
		Inventories				(7,847	)			(4,668	)
		Accounts payable				18,934				(12,762	)
		Customer advances				(3,358	)			(9,186	)
		Accrued expenses				(20,747	)			(18,163	)
		Accrued income taxes				(7,729	)			6,489
		Pension assets and liabilities				(7,014	)			(8,186	)
		Other assets and liabilities				1,699				(3,038	)
			NET CASH PROVIDED BY OPERATING ACTIVITIES			131,548				116,121
CASH FLOWS FROM INVESTING ACTIVITIES
		Purchase of property, plant and equipment				(37,921	)			(35,419	)
		Other investing transactions				3,551				(8,491	)
			NET CASH USED BY INVESTING ACTIVITIES			(34,370	)			(43,910	)
CASH FLOWS FROM FINANCING ACTIVITIES
		Net short term (repayments) borrowings				(3,237	)			4,772
		Net (repayments) proceeds from revolving lines of credit				(135,000	)			187,135
		Net repayments on long-term debt				(5,241	)			(3,251	)
		Proceeds from senior notes, net of issuance costs				294,430				--
		Payments on senior subordinated notes				--				(191,575	)
		Payment of premium on redemption of senior subordinated notes				--				(6,945	)
		Proceeds from sale of treasury stock				10,542				1,197
		Purchase of outstanding shares for treasury				(204,958	)			(22,243	)
		Proceeds from sale of stock held by SECT				--				1,144
		Purchase of stock held by SECT				(8,440	)			(4,634	)
		Excess tax benefits from equity-based payment arrangements				5,888				1,347
		Other financing transactions				--				(1,350	)
			NET CASH USED BY FINANCING ACTIVITIES			(46,016	)			(34,403	)
Effect of exchange rate changes on cash						(20,796	)			746
INCREASE IN CASH AND CASH EQUIVALENTS						30,366				38,554
		Cash and cash equivalents at beginning of period				231,292				157,090
		CASH AND CASH EQUIVALENTS AT END OF PERIOD			$	261,658			$	195,644