_________________________________________________________________
UNITED STATES SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 10-Q
(Mark One)
[ X ] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended December 31, 1997
OR
[ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
For the transition period from ______________ to ______________
Commission File Number: 1-5129
MOOG INC.
(Exact name of registrant as specified in its charter)
New York State 16-0757636
_______________________________________________________________________
(State or other jurisdiction of (I.R.S. employer identification no.)
incorporation or organization)
East Aurora, New York 14052-0018
______________________________________________________________________
(Address of principal executive offices) (Zip code)
Telephone number including area code: (716) 652-2000
________________________________________________________________
Former name, former address and former fiscal year,
if changed since last report.
Indicate by check mark whether the registrant (1) has filed all
reports required to be filed by Section 13 or 15(d) of the
Securities Exchange Act of 1934 during the preceding 12 months
(or for such shorter period that the registrant was required to
file such reports), and (2) has been subject to such filing
requirements for the past 90 days. Yes [ X ] No
The number of shares outstanding of each class of common stock as
of February 6, 1998 were:
Class A Common Stock, $1.00 par value 7,247,465 shares
Class B Common Stock, $1.00 par value 1,599,386 shares
_________________________________________________________________
<PAGE>
MOOG INC.
QUARTERLY REPORT ON FORM 10-Q
TABLE OF CONTENTS
Page
PART I. FINANCIAL INFORMATION 3-13
Item 1. Consolidated Condensed Balance Sheets
December 31, 1997 and September 27, 1997 3
Consolidated Condensed Statements of Earnings
Three Months Ended December 31, 1997 and 1996 5
Consolidated Condensed Statements of Cash Flows
Three Months Ended December 31, 1997 and 1996 6
Notes to Consolidated Condensed Financial
Statements 8
Item 2. Management's Discussion and Analysis of
Financial Condition and Results of Operations 11
PART II. OTHER INFORMATION 17
SIGNATURES 18
<PAGE>
Part I. FINANCIAL INFORMATION
Item 1. Financial Statements
MOOG INC.
CONSOLIDATED CONDENSED BALANCE SHEETS
(dollars in thousands)
_________________________________________________________________
Unaudited Audited
As of As of
December 31, September 27,
(dollars in thousands) 1997 1997
________________________________________________________________
ASSETS
CURRENT ASSETS
Cash and cash equivalents $ 4,824 $ 6,800
Receivables 162,161 160,054
Inventories (note 2) 102,017 103,866
Deferred income taxes 19,273 18,935
Prepaid expenses and other
current assets 5,979 5,052
------------ ------------
TOTAL CURRENT ASSETS 294,254 294,707
PROPERTY, PLANT AND EQUIPMENT,
net 131,877 132,109
GOODWILL, net 48,981 49,626
OTHER ASSETS 13,428 14,121
------------ -------------
TOTAL ASSETS $ 488,540 $ 490,563
============ =============
LIABILITIES AND SHAREHOLDERS' EQUITY
CURRENT LIABILITIES
Notes payable $ 2,737 $ 1,323
Current installments of
long-term debt 13,965 15,345
Accounts payable 23,652 23,860
Accrued salaries, wages and
commissions 24,969 28,747
Contract loss reserves 7,078 8,170
Accrued interest 5,325 7,253
Federal, state and foreign
income taxes 6,292 5,419
Other accrued liabilities 11,519 10,439
Customer advances 7,788 6,630
------------ -------------
TOTAL CURRENT
LIABILITIES 103,325 107,186
LONG-TERM DEBT, excluding
current installments
Senior debt 100,765 101,577
Senior subordinated notes 120,000 120,000
<PAGE>
OTHER LONG-TERM LIABILITIES 47,250 47,609
------------ -------------
TOTAL LIABILITIES 371,340 376,372
------------ -------------
SHAREHOLDERS' EQUITY (note 4)
Preferred stock 100 100
Common stock 9,134 9,134
Other shareholders' equity 107,966 104,957
------------ -------------
TOTAL SHAREHOLDERS' EQUITY 117,200 114,191
------------ -------------
TOTAL LIABILITIES AND
SHAREHOLDERS' EQUITY $ 488,540 $ 490,563
============ =============
See accompanying Notes to Consolidated Condensed Financial
Statements.
<PAGE>
MOOG INC.
CONSOLIDATED CONDENSED STATEMENTS OF EARNINGS
(Unaudited)
(dollars in thousands except per share data)
Three Months Ended
December 31,
1997 1996
-------------- --------------
NET SALES $ 126,118 $ 103,850
OTHER INCOME 352 519
------------ -------------
$ 126,470 $ 104,369
------------ -------------
COSTS AND EXPENSES
Cost of sales 89,110 70,799
Research and development 5,126 4,201
Selling, general and
administrative 19,918 19,519
Interest 5,911 5,357
Other expenses 394 267
------------ -------------
120,459 100,143
------------ -------------
EARNINGS BEFORE
INCOME TAXES 6,011 4,226
INCOME TAXES 2,104 1,267
------------ -------------
NET EARNINGS $ 3,907 $ 2,959
============ =============
NET EARNINGS
PER SHARE (note 3)
Basic $ .55 $ .42
============ =============
Diluted $ .53 $ .41
============ =============
AVERAGE COMMON SHARES
OUTSTANDING (note 3)
Basic 7,051,612 6,984,043
============ =============
Diluted 7,312,835 7,230,196
============ =============
See accompanying Notes to Consolidated Condensed Financial
Statements.
<PAGE>
MOOG INC.
CONSOLIDATED CONDENSED STATEMENTS OF CASH FLOWS
(Unaudited)
(dollars in thousands)
Three Months Ended
December 31,
1997 1996
------------ -------------
CASH FLOWS FROM
OPERATING ACTIVITIES
Net earnings $ 3,907 $ 2,959
Adjustments to reconcile net earnings
to net cash provided by operating
activities:
Depreciation and amortization 5,602 5,169
Other (7,099) (7,313)
------------ -------------
NET CASH PROVIDED BY OPERATING
ACTIVITIES 2,410 815
------------ -------------
CASH FLOWS FROM INVESTING ACTIVITIES
Acquisitions of businesses - (48,589)
Purchase of property, plant
and equipment (4,428) (3,656)
Other 516 250
------------ -------------
NET CASH USED BY INVESTING
ACTIVITIES (3,912) (51,995)
------------ -------------
CASH FLOWS FROM FINANCING ACTIVITIES
Net proceeds from notes payable 1,904 74
Net proceeds from revolving
lines of credit - 52,000
Proceeds from issuance of long-term
debt 2,016 4,188
Payments on long-term debt (4,105) (2,589)
Other (254) (410)
------------ -------------
NET CASH (USED) PROVIDED BY
FINANCING ACTIVITIES (439) 53,263
------------ -------------
Effect of exchange rate changes on cash (35) 21
------------ -------------
INCREASE (DECREASE) IN CASH AND
CASH EQUIVALENTS (1,976) 2,104
Cash and cash equivalents at
beginning of period 6,800 9,639
------------ -------------
CASH AND CASH EQUIVALENTS AT END
OF PERIOD $ 4,824 $ 11,743
============ =============
<PAGE>
CASH PAID FOR:
Interest $ 8,060 $ 7,472
Income taxes 1,234 1,208
NON-CASH INVESTING AND
FINANCING ACTIVITIES:
Leases capitalized,
net of leases terminated $ 117 $ -
See accompanying Notes to Consolidated Condensed Financial Statements.
<PAGE>
MOOG INC.
NOTES TO CONSOLIDATED CONDENSED FINANCIAL STATEMENTS
THREE MONTHS ENDED DECEMBER 31, 1997
(Unaudited)
(dollars in thousands)
1. Basis of Presentation
The accompanying unaudited consolidated condensed financial
statements have been prepared by management and in the opinion of
management contain all adjustments, consisting of normal
recurring adjustments, necessary to present fairly the financial
position of Moog Inc. as of December 31, 1997 and the results of
its operations and cash flows for the three months ended December
31, 1997 and 1996. The results of operations for the three
months ended December 31, 1997 and 1996 are not necessarily
indicative of the results expected for the full year.
2. Inventories
Inventories are stated at the lower of cost or market using the
first-in, first-out (FIFO) method of valuation. Inventories are
comprised of the following:
December 31, September 27,
1997 1997
---- ----
Raw materials and purchased parts $ 28,056 $ 28,933
Work in process 63,398 64,502
Finished goods 10,563 10,431
-------- --------
$102,017 $103,866
======== ========
3. Earnings Per Share
During the first quarter of fiscal 1998, the Company adopted
Statement of Financial Accounting Standards (SFAS) No. 128,
"Earnings per Share." SFAS No. 128 replaces primary EPS with
basic EPS and fully diluted EPS with diluted EPS. Basic EPS is
computed by dividing reported earnings by weighted average shares
outstanding. Diluted EPS is computed the same way as fully
diluted EPS except that the calculation now uses the average
share price for the reporting period to compute dilution from
options under the treasury stock method. The Company has
restated its earnings per share for prior periods.
<PAGE>
The number of shares and earnings used in the Company's basic and
diluted earnings per share computations are as follows:
<TABLE>
<CAPTION>
Three Months Ended
December 31, 1997 December 31, 1996
---------------------------- -----------------------------
Per Share Per Share
Income Shares Amount Income Shares Amount
<S> <C> <C> <C> <C> <C> <C>
Net earnings $3,907 $2,959
Less: Preferred stock dividends (2) (2)
------- -------
Basic EPS
Earnings available to common
stockholders 3,905 7,051,612 $.55 2,957 6,984,043 $.42
==== ====
Effect of Dilutive Securities
Stock options 253,077 237,568
Convertible preferred stock 2 8,146 2 8,585
_______ _________ _______ _________
Diluted EPS
Earnings available to common
stockholders $3,907 7,312,835 $.53 $2,959 7,230,196 $.41
======= ========= ====== ====== ========= =====
See Note 5 for discussion of subsequent events related to common stock.
</TABLE>
<PAGE>
4. Shareholders' Equity
The changes in shareholders' equity for the three months ended
December 31, 1997 are summarized as follows:
Number of Shares
----------------
Class A Class B
Preferred Common Common
Amount Shares Stock Stock
------ --------- ------- -------
PREFERRED STOCK
Beginning and end of period $ 100 100,000
-------
COMMON STOCK
Beginning of period 9,134 6,635,936 2,498,187
Conversion of Class B to
Class A - 20,000 (20,000)
------- --------- ---------
End of period 9,134 6,655,936 2,478,187
------- --------- ---------
ADDITIONAL PAID-IN CAPITAL
Beginning of period 47,519
Issuance of Treasury shares
at less than cost (84)
-------
End of period 47,435
-------
RETAINED EARNINGS
Beginning of period 88,422
Net earnings 3,907
Preferred stock dividends (2)
-------
End of period 92,327
-------
TREASURY STOCK
Beginning of period (30,967) (5,114) (1,186,221) (892,101)
Treasury stock issued 480 - 19,050 17,000
------- ------ ----------- ---------
End of period (30,487) (5,114) (1,167,171) (875,101)
------- ------- ----------- ---------
EQUITY ADJUSTMENTS
Beginning of period 977
Foreign currency translation (1,627)
-------
End of period (650)
-------
LOAN TO SAVINGS AND STOCK
OWNERSHIP PLAN (SSOP)
Beginning of period (994)
Net change in loan to SSOP 335
-------
End of period (659)
-------
TOTAL SHAREHOLDERS' -------- -------- ---------- ---------
EQUITY $117,200 94,886 5,488,765 1,603,086
-------- -------- ---------- ---------
<PAGE>
5. Subsequent Events
On January 29, 1998, the Company completed an offering of Class A
shares at $34.375 per share. The offering consisted of 1,700,000
previously unissued shares sold by the Company and 300,000
existing shares sold by the Moog Inc. Employee's Retirement Plan
(Moog Retirement Plan). In addition, on February 5, 1998, an
additional 55,000 previously unissued Class A shares were sold
pursuant to an over-allotment option exercised by the
underwriters of the offering.
On February 3, 1998, the Company acquired the net assets of
Schaeffer Magnetics, Inc. (Schaeffer), a leading supplier to the
space industry of motion control devices and systems with annual
revenues of approximately $20 million. The purchase price was
$21.7 million.
The proceeds to the Company from the offering of approximately
$57 million were used to repay amounts outstanding under the
Company's U.S. Revolving Credit and Term Loan Facility and will
be used for smaller strategic acquisitions such as the purchase
of net assets of Schaeffer. The Company did not receive any
proceeds from the sale of shares by the Moog Retirement Plan.
MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL
CONDITION AND RESULTS OF OPERATIONS
Overview
Moog Inc. is a leading worldwide designer and manufacturer of a
broad range of high performance, precision motion and fluid
control products and systems for aerospace and industrial
markets.
The Company has five principal product lines. Commercial
Aircraft, Military Aircraft and Satellites and Launch Vehicles
are collectively referred to as Aerospace Controls. Industrial
Hydraulics and Electronics and Drives are collectively referred
to as Industrial Controls.
The Company is organized into two segments: Domestic Controls and
International Controls. Domestic Controls primarily focuses on
North American markets, with the majority of its sales in
aerospace-related product lines. International Controls is
focused on markets in Europe and the Asian-Pacific with the
majority of sales in industrial product lines.
Results of Operations
Consolidated
Moog's net sales for the first quarter of fiscal 1998 were $126.1
million, up $22.3 million, or 21%, from the comparable quarter
last year. The improvement can be broken down as follows: $17.3
million in Aerospace Controls and $5.0 million in Industrial
Controls. The sales improvement in Aerospace Controls was led by
<PAGE>
volume increases in Commercial Aircraft, particularly related to
controls for Boeing airplanes. Increased demand of controls for
launch vehicles and anti-missile defense systems improved sales
in the Satellites and Launch Vehicles product line, while initial
production on certain military programs contributed to sales
growth in the Military Aircraft product line. Sales improvement
in Industrial Controls resulted primarily from the acquisition in
October 1996 of Moog Controls Inc. (the U.S. Industrial
Hydraulics Business). Sales gains for Industrial Controls in the
international markets where Moog operates were, for the most
part, offset by exchange rate fluctuations, particularly in
Germany and Japan. The effect on Industrial Controls sales of
the decline in the value of the applicable foreign currencies
relative to the U.S. dollar was approximately 7% in fiscal 1998
versus fiscal 1997, or approximately $3 million.
Cost of sales for the first quarter of fiscal 1998 was 70.7% of
net sales as compared to 68.2% of net sales last year. The
increase as a percentage of sales is primarily due to adjustments
related to favorable cost experience on long-term contracts in
the Military Aircraft product line made in the first quarter of
fiscal 1997, which led to higher margins, a decline in the
current quarter of commercial and military aftermarket sales as a
percentage of total sales and a shift of costs from selling,
general and administrative last year to cost of sales this year
for aerospace engineering efforts related to bid and proposal
work in fiscal 1997.
Selling, general and administrative expenses were $19.9 million,
or 15.8% of net sales, in the first quarter of fiscal 1998,
compared to $19.5 million, or 18.8% of net sales, in fiscal 1997.
The decrease as a percentage of sales is principally due to
growth in sales, in addition to a shift to cost of sales in
fiscal 1998 of aerospace engineering efforts that were focused on
bid and proposal work in fiscal 1997.
Interest expense increased by $.6 million to $5.9 million in the
first quarter of fiscal 1998 primarily due to the additional
indebtedness associated with the acquisition of the U.S.
Industrial Hydraulics Business during the first quarter of fiscal
1997.
The effective tax rate in the first quarter of fiscal 1998 was
35% compared to 30% in the same period last year. The 30% rate
in the prior year reflects higher foreign tax credit benefits
resulting from distributions of earnings from the Company's
German subsidiary.
During the first quarter of fiscal 1998, the Company adopted
Statement of Financial Accounting Standards (SFAS) No. 128
"Earnings per Share." SFAS No. 128 replaces primary EPS with
basic EPS and fully diluted EPS with diluted EPS. Basic EPS is
computed by dividing reported earnings by weighted average shares
outstanding. Diluted EPS is computed the same way as fully
diluted EPS except that the calculation now uses the average
share price for the reporting period to compute dilution from
options under the treasury stock method. The Company has
restated its earnings per share for prior periods.
<PAGE>
For the three months ended December 31, 1997, the Company's net
earnings increased 32% to $3.9 million as compared to $3.0
million in the same period last year. Basic earnings per share
increased to $.55 in the first quarter of fiscal 1998 compared to
$.42 in the same period last year, while diluted earnings per
share was $.53 in fiscal 1998 compared to $.41 in fiscal 1997.
Segment Operating Review
(dollars in thousands)
Three Months Ended
December 31,
1997 1996
DOMESTIC CONTROLS
Net sales
Aerospace $ 76,369 $ 60,334
Industrial 16,654 12,149
-------- --------
93,023 72,483
Intersegment sales 4,499 2,256
-------- --------
Total sales $ 97,522 $ 74,739
======== ========
Operating profit $ 12,122 $ 9,132
Backlog 240,486 217,595
INTERNATIONAL CONTROLS
Net sales
Aerospace $ 6,949 $ 5,665
Industrial 26,146 25,702
-------- --------
33,095 31,367
Intersegment sales 2,393 1,817
-------- --------
Total sales $ 35,488 $ 33,184
======== ========
Operating profit $ 2,028 $ 2,211
Backlog 47,997 43,749
CONSOLIDATED
Net sales
Aerospace $ 83,318 $ 65,999
Industrial 42,800 37,851
-------- --------
$126,118 $103,850
======== ========
Operating profit $ 14,150 $ 11,343
Backlog 288,483 261,344
<PAGE>
Domestic Controls
Domestic Controls net sales increased by $20.5 million to $93.0
million in the current quarter compared to $72.5 million in the
same period of the prior year. The 28% improvement reflects
increases of $16.0 million in Aerospace Controls and $4.5 million
in Industrial Controls. Increased volumes across each of its
product lines contributed to the improvement in Aerospace
Controls sales. Commercial Aircraft sales increased by
approximately $7 million primarily as a result of shipments to
Boeing. OEM sales to Boeing increased 43% in the first quarter
of fiscal 1998. Sales of Military Aircraft controls increased
approximately $5 million due primarily to the F/A-18 E/F and V-
22 Osprey. Improved sales in the Satellites and Launch Vehicles
product line of approximately $4 million resulted from increased
demand for controls for launch vehicles, primarily the Titan IV
program and Kistler commercial launch vehicle, and the Standard
Missile 2 anti-missile defense system. The improvement in
Industrial Controls relates primarily to the acquisition of the
U.S. Industrial Hydraulics Business on October 26, 1996.
Operating income for the Domestic Controls segment increased by
$3.0 million to $12.1 million (12.4% of segment sales) from $9.1
million (12.2% of segment sales). Industrial Controls accounted
for two-thirds of the increase reflecting the sales improvement
and higher margins resulting from the continued integration of
the U.S. Industrial Hydraulics Business. Aerospace Controls
operating profit increased by approximately $1 million.
Increased Aerospace Controls sales and improved margins in the
Satellites and Launch Vehicles product line accounted for the
increase in dollar terms while margins in Military and Commercial
Aircraft were lower due to higher margins in the first quarter of
fiscal 1997 as a result of adjustments related to favorable cost
experience on certain long-term military contracts and a lower
mix of military and commercial aftermarket sales as a percentage
of total segment sales.
Backlog consists of that portion of open orders for which sales
are expected to be recognized over the next twelve months.
Backlog at December 31, 1997 for the Domestic Controls segment
was $240.5 million compared with $236.4 million at September 27,
1997 and $217.6 million at December 31, 1996. The increase from
a year ago is due to growth in orders related to the Standard
Missile 2 anti-missile defense system, the Titan IV launch
vehicle, entertainment simulators and the F/A-18 E/F and V-22
Osprey programs.
International Controls
Sales in the International Controls segment increased
approximately 6% in the first quarter of fiscal 1998 to $33.1
million as compared to the same period last year despite lower
average currency values. Excluding the changes in currency
values, fiscal 1998 first quarter sales increased approximately
17%. Sales of Industrial Controls increased approximately $4
million in the first quarter, excluding the foreign exchange
impact, primarily on the strength in sales of Industrial
<PAGE>
Hydraulics in Germany and Japan, and to a lesser extent,
Electronics and Drives in Germany. Sales of Aerospace Controls
increased approximately $2 million, excluding foreign exchange,
due to higher sales in Japan for tactical missiles and in the
United Kingdom for Military Aircraft repairs and engine controls
for Commercial Aircraft.
International Controls first quarter operating income was $2.0
million (5.7% of segment sales) as compared to $2.2 million (6.7%
of segment sales) in the same period of last year. The decrease
as a percentage of segment sales is due to lower industrial
margins conservatively reported by the Asian-Pacific companies
taking into account potential asset-related exposures associated
with the recent devaluation of certain Asian-Pacific currencies.
Backlog at December 31, 1997 for the International Controls
segment was $48.0 million, compared with $44.0 million at
September 27, 1997 and $43.7 million at December 31, 1996. The
increase from a year ago is attributable to growth in orders for
electric drives for military ground vehicles and Industrial
Hydraulics in Germany offset by lower Aerospace Controls backlog
in Japan as a result of completion of certain missile contracts,
and approximately $6 million attributable to weaker currencies
when translated into the U.S. dollar.
Financial Condition and Liquidity
Cash provided by operating activities was $2.4 million in the
first quarter of fiscal 1998 compared to $.8 million in the same
period a year ago. The increase is due primarily to improved
earnings as adjusted for non-cash expenses and charges.
Long-term senior debt at December 31, 1997 was $100.8 million
compared to $101.6 million at September 27, 1997. The percentage
of long-term debt to capitalization decreased to 65.3% at
December 31, 1997 from 66% at September 27, 1997.
At December 31, 1997, the Company had $85.9 million of unused
borrowing capacity available under short and long-term lines of
credit, including $68.0 million from the Company's U.S. Revolving
Credit and Term Loan Facility (the Bank Credit Facility).
Working capital at December 31, 1997 was $190.9 million compared
with $187.5 million at September 27, 1997. The current ratio was
2.85 and 2.75 at December 31, 1997 and September 27, 1997,
respectively. The increase in working capital is due primarily
to timing of payments, primarily interest.
Net property, plant and equipment at December 31, 1997 was $131.9
million as compared to $132.1 million at September 27, 1997.
Capital expenditures for the first quarter of fiscal 1998 were
$4.5 million compared with depreciation and amortization of $5.6
million. Capital expenditures in the first quarter of fiscal
1997 were $3.7 million compared with depreciation and
amortization of $5.2 million. Capital expenditures for fiscal
1998 should approximate $19 million.
<PAGE>
Subsequent Events
On January 29, 1998, the Company completed an offering of Class A
shares at $34.375 per share. The offering consisted of 1,700,000
previously unissued shares sold by the Company and 300,000
existing shares sold by the Moog Inc. Employee's Retirement Plan
(Moog Retirement Plan). In addition, on February 5, 1998, an
additional 55,000 previously unissued Class A shares were sold
under an over-allotment option exercised by the underwriters of
the offering.
On February 3, 1998, the Company acquired the net assets of
Schaeffer Magnetics, Inc. (Schaeffer), a leading supplier to the
space industry of motion control devices and systems with annual
revenues of approximately $20 million. The purchase price was
$21.7 million.
The proceeds to the Company from the offering of approximately
$57 million were used to repay amounts outstanding under the
Company's Bank Credit Facility and will be used for smaller
strategic acquisitions such as the purchase of net assets of
Schaeffer. The Company did not receive any proceeds from the
sale of shares by the Moog Retirement Plan.
Cautionary Statement
Forward looking statements are made pursuant to the safe harbor
provisions of the Private Securities Litigation Reform Act of
1995. Statements under the "Outlook" heading are considered
forward looking statements that relate to future operating
periods and are subject to important risks and uncertainties that
could cause actual results to differ materially. These risks and
uncertainties include, but are not limited to, contracting with
various governments, changes in economic conditions, demand for
the Company's products, pricing pressures, intense competition in
the industries in which the Company operates, the need for the
Company to keep pace with technological developments and timely
response to changes in customer needs, and other factors
identified in the Company's Securities and Exchange Commission
filings including the Company's most recent Annual Report on Form
10-K for the fiscal year ended September 27, 1997.
Outlook
The Company expects to see continued strong revenues in its
Aerospace Controls product lines in fiscal 1998 as the long-term
Commercial Aircraft outlook remains positive, demand for
Satellites and Launch Vehicle products continues to grow with an
additional boost from the recent acquisition of Schaeffer, and
Military Aircraft modernization programs are entering into
initial production. Sales improvement in Industrial Controls is
expected to continue on the strength of electric controls for
military ground vehicles and entertainment simulators and due to
further global integration benefits of the fiscal 1997
acquisition of the U.S. Industrial Hydraulics Business.
<PAGE>
PART II. OTHER INFORMATION
Item 1. Legal Proceedings.
None
Item 2. Changes in Securities.
None.
Item 3. Defaults Upon Senior Securities.
None.
Item 4. Submission of Matters to a Vote of Security Holders.
None.
Item 5. Other Information.
None.
Item 6. Exhibits and Reports on Form 8-K.
a. Exhibits.
Exhibit 27 - Financial data schedule.
b. Reports on Form 8-K.
The Company filed a report on Form 8-K dated
December 17, 1997 reporting pursuant to items 5
and 7.
<PAGE>
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of
1934, the registrant has duly caused this report to be signed on
its behalf by the undersigned thereunto duly authorized.
Moog Inc.
(Registrant)
Date: February 12, 1998 By /S/Robert R. Banta
Robert R. Banta
Executive Vice President
Chief Financial Officer
(Principal Financial Officer)
Date: February 12, 1998 By /S/Donald R. Fishback
Donald R. Fishback
Controller
(Principal Accounting
Officer)
<PAGE>
<TABLE> <S> <C>
<ARTICLE> 5
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> SEP-26-1998
<PERIOD-END> DEC-31-1997
<CASH> 4,824
<SECURITIES> 0
<RECEIVABLES> 162,161
<ALLOWANCES> 0
<INVENTORY> 102,017
<CURRENT-ASSETS> 294,254
<PP&E> 131,877
<DEPRECIATION> 0
<TOTAL-ASSETS> 488,540
<CURRENT-LIABILITIES> 103,325
<BONDS> 220,765
0
100
<COMMON> 56,669
<OTHER-SE> 60,431
<TOTAL-LIABILITY-AND-EQUITY> 488,540
<SALES> 126,118
<TOTAL-REVENUES> 126,470
<CGS> 89,110
<TOTAL-COSTS> 89,110
<OTHER-EXPENSES> 5,520
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 5,911
<INCOME-PRETAX> 6,011
<INCOME-TAX> 2,104
<INCOME-CONTINUING> 3,907
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 3,907
<EPS-PRIMARY> .55
<EPS-DILUTED> .53
</TABLE>
