Margins for the Components Group improved in the most recent quarter to slightly over 14% and we’re hopeful that this kind of margin performance can continue through the fourth quarter, bringing the segment in with operating margins for the year in excess of 12%.

For fiscal ’05, we’re forecasting a modest sales increase to $135.8 million. This is actually the net of a $10 million, or 17%, increase in industrial business, offsetting small declines in military aircraft and in sales on space vehicles. We’re anticipating margins for the Components Group slightly in excess of 13%, our second most profitable segment.

In Summary

So, having described each of the segments, let me try to fit the pieces together into a coherent picture. For the third quarter, sales were $239 million, net earnings were $14.8 million, and EPS was $.56. These results were a continuation of the steady progress that we’ve been making, quarter by quarter. In the quarter, sales were up a little bit in every part of the Company except military aircraft. Military aircraft revenues were influenced in the quarter by the fact that revenues on the Joint Strike Fighter program are easing down and this pattern will affect our sales comparisons in the fourth quarter and next year as well.

For the first three quarters of ’04, sales were $699 million, net earnings were $41.5 million and EPS was $1.57.

For the fourth quarter, we’re expecting slight sales increases in commercial aircraft and space, and steady performance in the Components Group. Military aircraft will be down slightly. Europe will see its typical summer slowdown. Nevertheless, we’re expecting revenues of $235 million which will bring us to a year-end total of $934 million, a 24% increase over last year. We’re expecting that net earnings for the year will achieve our forecast of just over $57 million and we’ll come in at or around $2.17 a share, up 18% from a year ago.

For fiscal ’05, we’re projecting a major sales increase in our Industrial segment, and modest increases in our other three segments as well. Overall, we’re looking for 5% growth in total sales to a mid-range total of $977 million. It should probably be thought of as somewhere between $967 million and $987 million. We’re projecting improved net earnings of around $63.7 million. Once again, this should be thought of as a net earnings range between $62.6 million and $65 million. On a per-share basis, this would equate to $2.39 to $2.48 a share, between 10% and 14% earnings-per-share growth.

I’ll now turn you over to Bob Banta who will talk about cash and debt.

For those of you who have had the chance to compare our debt, net of cash at the end of June to that of 90 days ago on March 31, you’ll arrive at reduction in net debt of $5.2 million. But, there’s more than that. During the quarter, we put another $13 million into our U.S. defined benefit pension plan. These are payments that we would have otherwise made in ’05. We’ve now paid in a total of $33 million. We expect to put about $4 million into our plans in the next quarter and $8 million in fiscal ’05.

We also loaned $13.8 million to a Stock Employee Compensation Trust that we created to service general employee benefit requirements. This trust used the borrowed proceeds to purchase two blocks of Moog Class B common totaling 378,144 shares for $13.8 million. Shares in this Trust are not considered outstanding in calculating earnings per share. That use of cash is a one-time third quarter only effect. As employees purchase these shares into their 401K plans over the next few years, this cash will come back to the Company.

Taking out these two specials, our reduction of debt, net of cash, was $32 million during the third quarter.