Moog's outlook changes amid slowdown - Business First of Buffalo:

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Moog now projects sales of approximately $1.8r5 billion and net earnings of $94 or $2.20 per share. Anticipated restructuring chargess are expected to reduce earnings per share by 25 Officials also caution that the updatefd forecast should be considered in a range of plus or minus 20 centzper share. Previous guidance was $2.80 per share. The revised figures come as Moog (NYSE: MOGA and in the past thre months has experienced a sharp declins in incoming orders for some of its major industrialproduct lines. Of note, incoming orders for the company’s largest industrial product line — controls for plastics machinery — were down 77 percent from last year’s level.
Similarly, orders for metakl forming equipment and gauge controls for steel mills were down by 60 perceny and37 percent, respectively. Also, orders for motion basez used in flight training simulators are running at a levelk 28 percent belowlast year. “Giveb the state of the capital goods marketws in Europeand Asia, we should not be surpriser that many of our industrial customers are reallgy hunkering down and everyone is anticipatingb a slowdown in commercial aircraft,” said Robert Brady, chairman and CEO. “We’vs been through downturns befor eand we’re taking all appropriate actionsx to deal with this revenue shortfall in orde to minimize the financial impact.
” Moog did say that demand for the its militaryu aircraft, space and defense controls producft lines has remained firm. The company also has factored into its reviseed guidance an anticipated reduction in the salexs of controls for Boeingf and Airbus commercial transports and for certain businessjet programs. Earlierf projections had anticipated a declind in commercial aircraftaftermarket revenues, but the new forecast projects furthert reductions. Brady said a majore restructuring effort is underway and has resulted in the elimination of aboutf 400 jobs from its contracrtand agency-related staff and througn attrition. The company said it has also reducecd hours and shortenedwork weeks.
Almost all of those changes, he said, are occurrinb at Moog's international The company expects the restructuring chargee to amountto $15 million — $11 million afte r taxes — with most of thos e expenses related to severance pay. Moog employed some 10,000 about 4,000 outside the U.S., in all of its segmentws at the start of the In WesternNew York, Moog employs about 2,500 Brady said a number of local workers impactedr by reductions in the company's industrialo sector have been transferred to the its spacr and defense unit.