Annual Meeting Remarks, 1/12/05

01 / 12 / 2005

1   2   3   4   5   6   7   8   9   10   11  

Today, I’ll describe one such missile program – the Minuteman Intercontinental Ballistic Missile, or ICBM. The Minuteman missile system is one leg within America’s triad of nuclear deterrents.

America’s current nuclear deterrent triad consists of the land, or silo, based Minuteman III, the sea-based Trident Submarine launched missile, and the B1, B2, B52 intercontinental bomber aircraft. These weapon systems can deliver nuclear warheads abroad with extreme accuracy – that accuracy is enabled by our precision control products, some of which I will describe.

We’ve participated on all of these programs and I’d like to describe for you what we do on the Minuteman as an example.

Today, five hundred Minuteman III Missiles are on alert and dispersed in underground silos stationed at several different Air Force Bases located in North Dakota, Montana, and Wyoming. I’ll walk you through the launch sequence and the function of our hardware.

First, the Minuteman’s three solid rocket engines carry the missile up through the atmosphere and into space. These three stages are known as the boost phase. Our servovalves and servoinjectors provide the muscle to steer the rocket by controlling the direction of the rocket motor thrust with delicate precision.

Next, the fourth stage propels and steers the re-entry vehicle through space towards the target. Once the missile reaches outer space, our thruster valves on the fourth stage control the rocket engine thrust and steer the warhead to its re-entry position in space. The vehicle re-enters the atmosphere, the warhead is on its final trajectory and capable of reaching targets more than 7,000 miles from home. I’ll let Hollywood describe the rest of the story.

The first Minuteman missiles were placed in silos and declared operational in 1962. Approximately 1,000 missiles of several configurations were produced since the program’s inception. During the 60’s and 70’s, the Minuteman program was a major contributor to Moog’s financial success. We produced more than twenty thousand units over this period. Since then, treaties with the former Soviet Union have required the U.S. to decommission half of the fleet and there are 500 active missiles in silos today.

To ensure the reliability and maintainability of Minuteman III into the next century, the Air Force initiated the Service Life Extension Program. Under this program, each of the 500 active missiles will be removed from its silo, refurbished, and reactivated for use through the year 2025. I find it amazing that the original design life of our hardware was 3-5 years, with a goal of 10 years, yet our hardware is still performing 35 years later; and that a business that we normally think of as having no aftermarket, comes back and becomes an important revenue generator all these years later.

So, what does all this mean for us? A typical refurbishment of our products consists of replacing all soft goods, such as rubber seals and wiring; reassembly and final acceptance test. In 2004, we completed low rate production and we are ramping up to full rate this year. Ultimately we will refurbish all 500 shipsets. Again, significant and steady revenues over the next several years.

This business of producing steering and propulsion control products is truly “Rocket Science”. Our dominance in this field is testament that our customers, both government and industry, recognize our superior technologies and commitment to producing reliable products – our Nation relies on it.

Bob Brady, Chairman and CEO resumes:

1   2   3   4   5   6   7   8   9   10   11