First Quarter Fiscal '01 Conference Call
01 / 31 / 2001Highlights
Quarter 1 - FY01Aircraft for Qtr. 1Aircraft MarginsSpace MarginsIndustrial Q1Industrial for Year 2001SummaryMoog Inc. Cautionary StatementRecent Conference Calls
Good morning. Thanks for joining us.
Our plan for the morning is to discuss our overall results for the quarter, then discuss the results in each of the major product lines and the implications of those results on our product line forecasts for revenues and margins.
Then, we’ll update our forecast for the remaining quarters and the year.
Once again, we’re going to post the text of these remarks on our web site for your convenience.
Net earnings for the quarter were $6.5 million, or $.74 per share, compared to $6.3 million, or 70 cents per share, last year. That’s a 6% increase in earnings per share which was helped by a 2% reduction in shares outstanding. We had projected 74 cents in our November conference call so we’re pleased with the results.
We achieved the projected results in a way slightly different than we had planned. Our margins in both Aircraft and Space were higher than forecasted and these higher margins offset an Industrial quarter in which our shipments were low.
Sales for the quarter of almost $158 million were up a little from last year ($400K) despite a reduction of almost $6 million in sales as a result of changes in exchange rates. Last year’s first quarter sales had the benefit of much stronger Euros and Pounds. Sales in the quarter also could have been higher in both Aircraft and Industrial were it not for some shipment problems which we’ll describe in a minute.
Our gross margin in the quarter was down a little from last year (29.6% vs. 30.7%), but our R&D and G&A were both down for a total reduction of about $2.0 million. The R&D reduction is mostly related to the completion of work on the JSF concept demonstrator aircraft. As this development work is completed, many of the engineers move to contract work where their costs show up in cost of sales.
The G&A reduction reflects the change from a strong Euro ($1.04) in last year’s first quarter to this year’s $.87.
Interest expense was up – but not much ($200K). In the first quarter, our rates were still up from last year but our average loan balances were down slightly – even after the Casella acquisition.
Our plan for the morning is to discuss our overall results for the quarter, then discuss the results in each of the major product lines and the implications of those results on our product line forecasts for revenues and margins.
Then, we’ll update our forecast for the remaining quarters and the year.
Once again, we’re going to post the text of these remarks on our web site for your convenience.
Quarter 1 - FY01
Net earnings for the quarter were $6.5 million, or $.74 per share, compared to $6.3 million, or 70 cents per share, last year. That’s a 6% increase in earnings per share which was helped by a 2% reduction in shares outstanding. We had projected 74 cents in our November conference call so we’re pleased with the results.
We achieved the projected results in a way slightly different than we had planned. Our margins in both Aircraft and Space were higher than forecasted and these higher margins offset an Industrial quarter in which our shipments were low.
Sales for the quarter of almost $158 million were up a little from last year ($400K) despite a reduction of almost $6 million in sales as a result of changes in exchange rates. Last year’s first quarter sales had the benefit of much stronger Euros and Pounds. Sales in the quarter also could have been higher in both Aircraft and Industrial were it not for some shipment problems which we’ll describe in a minute.
Our gross margin in the quarter was down a little from last year (29.6% vs. 30.7%), but our R&D and G&A were both down for a total reduction of about $2.0 million. The R&D reduction is mostly related to the completion of work on the JSF concept demonstrator aircraft. As this development work is completed, many of the engineers move to contract work where their costs show up in cost of sales.
The G&A reduction reflects the change from a strong Euro ($1.04) in last year’s first quarter to this year’s $.87.
Interest expense was up – but not much ($200K). In the first quarter, our rates were still up from last year but our average loan balances were down slightly – even after the Casella acquisition.
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