Pat Roche, CEO of Moog Inc., expects the Elma-based company’s solid growth to continue into next year.
Derek Gee, Buffalo News
Here is a look at how Moog’s business segments performed:
• Space and defense. Sales increased 9% from a year ago, driven in part by European defense spending as well as work supporting space launches, both for commercial communications satellites and the U.S. government.
“We see the volume of such launches increasing in frequency in the coming years,” Roche said.
• Military aircraft. Sales increased 17%. Moog continues to ramp up its engineering work related to the V-280, a new helicopter being developed for the Army. The company next year plans to move into a new building under construction on its campus, which will eventually be used for work on the V-280.
“We’re investing in the capabilities we need to be able to produce that aircraft here in the future,” Roche said.
• Commercial aircraft. Sales were up 2%. Roche said demand has held strong for new aircraft as well for work for existing aircraft, as passenger counts remain high. Roche said Moog hasn’t felt much of an impact from the strike at Boeing.
• Industrial. Sales dropped 5%, amid a slowdown in orders for industrial automation applications. That was somewhat offset by the strength in Moog’s medical device business, Roche said.
In other Moog developments:
Federal settlement. Moog last month agreed to a $1.7 million settlement with federal securities regulators over a bribery scheme at its Indian subsidiary aimed at winning contracts from Indian companies and limiting the competition the company faced for them.
“We have a really strong focus on compliance,” he said. “I can assure you that we have increased our focus on aspects of compliance globally, but specifically around India and Asia-Pacific.”
Extreme weather. During the past quarter, Moog facilities in China and Japan were hit by a typhoon, and a facility in North Carolina was impacted by Hurricane Helene.
Those storms caused short-term disruptions, lasting only a few days. But Moog’s facility in Tewksbury, in the United Kingdom, was heavily damaged by flooding. “We expect that it will take us several months to regain full capacity,” Roche said.
Worker training. Moog is opening a 25,000-square-foot worker training center, in leased space on Seneca Street. The training is expected to start operations in May 2025.
Roche said Moog continues to partner with workforce development organizations like the Northland Workforce Training Center. Moog’s own center will refine those graduates’ skills to suit Moog’s particular needs, he said.
“That’s an investment in the future of the business and the talent that we’re bringing into the organization,” Roche said.
2025 outlook. The company projects sales of $3.7 billion, which would be a 3% increase, and earnings per share of $8.20, compared to $6.40 in the past fiscal year.
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Publish date : 2024-11-01 12:05:00
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