Second Quarter Conference Call – Fiscal 2003
04 / 29 / 2003Highlights
AircraftSpace & MissilesIndustrialSummaryRecent Conference Calls
(INTRODUCTION FOR CONFERENCE CALL)
Before we begin, we call your attention to the fact that we may make forward-looking statements during the course of this conference call. These forward-looking statements are not guarantees of our future performance and are subject to risks, uncertainties and other factors that could cause actual performance to differ materially from such statements. A description of these risks, uncertainties and other factors is contained in our news release of today’s date, our Form 10Q for the quarter ended December 31, 2002, and in certain of our other public filings with the SEC.
Good morning, everybody. Thanks for joining us. This morning, we’re reporting results for the second quarter of fiscal 2003. We’ll discuss the trends that are influencing each of our segments and summarize their impact on the balance of fiscal year ’03.
The results for this quarter tracked very well with our overall projections for the year. Sales in the quarter of $190 million were up 4.3% from $182 million last year. Earnings were $10.3 million, or 67 cents per share, up 10% from a year ago.
So, half way through the year, we’re right about where we hoped to be. Sales of $370 million are up 4% from the year previous, and earnings per share of $1.31 are up 10%. During the last half of fiscal ’02, and in the first quarter of this year, the pattern had developed wherein the aircraft business was quite strong, the Space business was weakening, and our Industrial business was not great but showed promise. That pattern is certainly persisting. Fortunately, because of the strength in aircraft sales and margins, coupled with much lower interest expense, we’re achieving the financial plan we set out when the space market seemed stronger.
Now, to the segments.
Sales in the Aircraft segment were $99 million, up 10%, or $9 million from a year ago. That $9 million increase is the net of a $15 million increase in military aircraft and a $6 million decline on the commercial side. First, let me describe the strong performance in military products.
Military aircraft revenue was $62 million in the quarter, up from $48 million last year. The big story, of course, is the start-up of the Joint Strike Fighter, the F-35. In last year’s second quarter, we had just signed our first contract on the primary flight controls and, in the quarter, we had revenues of $1.4 million. In this year’s second quarter, the development program is in full swing. We had revenues of $11.4 million, a $10 million increase.
Sales on the V-22 were also up substantially. Although the current aircraft delivery rate is about the same as last year, we have the additional task this year of replacing swashplate actuators which are being updated to a later version of the spec. The result was a $3 million increase in the quarter.
Before we begin, we call your attention to the fact that we may make forward-looking statements during the course of this conference call. These forward-looking statements are not guarantees of our future performance and are subject to risks, uncertainties and other factors that could cause actual performance to differ materially from such statements. A description of these risks, uncertainties and other factors is contained in our news release of today’s date, our Form 10Q for the quarter ended December 31, 2002, and in certain of our other public filings with the SEC.
Good morning, everybody. Thanks for joining us. This morning, we’re reporting results for the second quarter of fiscal 2003. We’ll discuss the trends that are influencing each of our segments and summarize their impact on the balance of fiscal year ’03.
The results for this quarter tracked very well with our overall projections for the year. Sales in the quarter of $190 million were up 4.3% from $182 million last year. Earnings were $10.3 million, or 67 cents per share, up 10% from a year ago.
So, half way through the year, we’re right about where we hoped to be. Sales of $370 million are up 4% from the year previous, and earnings per share of $1.31 are up 10%. During the last half of fiscal ’02, and in the first quarter of this year, the pattern had developed wherein the aircraft business was quite strong, the Space business was weakening, and our Industrial business was not great but showed promise. That pattern is certainly persisting. Fortunately, because of the strength in aircraft sales and margins, coupled with much lower interest expense, we’re achieving the financial plan we set out when the space market seemed stronger.
Now, to the segments.
Aircraft
Sales in the Aircraft segment were $99 million, up 10%, or $9 million from a year ago. That $9 million increase is the net of a $15 million increase in military aircraft and a $6 million decline on the commercial side. First, let me describe the strong performance in military products.
Military aircraft revenue was $62 million in the quarter, up from $48 million last year. The big story, of course, is the start-up of the Joint Strike Fighter, the F-35. In last year’s second quarter, we had just signed our first contract on the primary flight controls and, in the quarter, we had revenues of $1.4 million. In this year’s second quarter, the development program is in full swing. We had revenues of $11.4 million, a $10 million increase.
Sales on the V-22 were also up substantially. Although the current aircraft delivery rate is about the same as last year, we have the additional task this year of replacing swashplate actuators which are being updated to a later version of the spec. The result was a $3 million increase in the quarter.
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