Moog (rhymes with "rogue") rules with its precision-control components and systems used in aerospace products, industrial machinery, and medical equipment. Servoactuators, Moog's core product, receive electrical signals from computers and then perform specific actions. Using its servoactuators, Moog builds flight and control systems for commercial and military aircraft, as well as hydraulic and electrical controls for automated industrial machinery, wind turbines, and control systems for satellites and spacecraft, launch vehicles, and missiles. It also makes infusion therapy pumps, slip rings for CT scanners, and motors used in devices for sleep apnea. Customers in the US make up more than half of sales.
Aircraft controls, accounting for 37% of sales, provides primary and secondary flight controls for military and commercial aircraft, including large commercial transports, supersonic fighters, business jets, and rotorcraft. Development programs in this segment include the F-35 Joint Strike Fighter, the Boeing 787 Dreamliner, and the Airbus A350XWB, and the Black Hawk/Sea Hawk helicopter. The aftermarket accounts for about 36% of the segment's sales. Industrial systems (27% of sales) serves such markets as wind energy, flight simulation and training, plastics making, power generation, testing, metal forming, oil exploration, and material handling. Products include electric rotor blade pitch controls, electromechanical motion simulation bases, and control assemblies.
The components segment (15% of sales) focuses on slip rings, fiber-optic rotary joints, and motors. Slip rings and fiber-optic rotary joints both are available in several sizes, which makes them useful in several applications, such as radar pedestals and floating platforms for offshore oil exploration. The segment's motors include factional horsepower brushless motors that operate with minimal noise and are optimal for sleep apnea equipment.
Space & defense controls (15% of sales) serves satellites and space vehicles, armored combat vehicles, and launch vehicles, and tactical and strategic missiles (such as Hellfire, TWO, and Trident), among other technologies. The segment also provided couplings, valves, and actuators for the International Space Station. Medical devices (6% of sales) operates in the markets of infusion therapy, enteral clinical nutrition, sensors, and surgical hand pieces.
For the company as a whole, net sales rose 10% in 2011 compared with 2010 thanks to strong performances by all segments, except components. Net earnings have been steadily rising the past three years from $85 million in 2009 to $108.1 million in 2010 and then to $136 million in 2011.
Net sales for aircraft controls rose 12% in 2011 vs. 2010 thanks to strong military and commercial aftermarket sales. The Boeing 787, Airbus, and business jets were also strong contributors to this segment's strong results. Industrial systems rose 15% owing in part to strong sales in all the segment's markets, except for wind energy. Markets that did especially well for the segment's sales included motion simulation, metal forming, and plastic making machinery.
Components fell 2% as a result in part of the conclusion of the Bradley Fighting Vehicle upgrade program and the nonrenewal of an order for the Eurofighter. Space & defense increased 10% behind strong demand in the markets of security and surveillance and tactical missiles. Sales in the latter included orders for an aircraft stores management system and TOW and Hellfire missiles. Medical devices increased 12% in 2011 compared with 2010 due to strong sales of administration sets, sensors, and hand pieces.
The company uses acquisitions to move into new markets and strengthen its place in existing markets. Other prongs of the company's strategy include developing systems integration for customers technical problems, focusing on aftermarket development, developing products for emerging markets, and lowering costs. More specifically the company is optimistic about sales from the production of the F-35 and demand for navigation aids, benefitting the aircraft controls segment. The company also expects a sales increase in tactical missiles and development work for NASA in its space & defense controls segment. Industrial systems is ready for more demand from the test equipment, motion simulator, and power general markets, along with a modest increase in demand from the wind energy market. Components looks ahead to strong sales from industrial markets. Medical devices expects strong demand for pumps, which includes some new products.
Despite reductions in the US military budget, Moog is optimistic about continued healthy sales from that sector because of its focus on technologies the military continues to emphasize, such as the F-35 Joint Strike Fighter and the V-22 Osprey. In the realm of another government cutback, Moog believes it is in the right place for help NASA replace the retired Space Shuttle. Business related to US government accounts for about 32% of Moog's sales.
In 2011 Moog acquired Animatics Corporation for its Components segment for approximately $25 million. The deal sprang from an established relationship; Moog Components had supplied the motor components for Animatics' SmartMotor branded lineup of integrated servos. Animatics also complements Moog's motion technology offerings with linear actuators and control electronics used in industrial, medical, and defense applications.
Its space and defense controls segment acquired Crossbow Technology, a California-based inertial sensor system manufacturer, in mid-2011 for a reported $32 million. Later that year it bought Bradford Engineering B.V. for €10 million ($13 million). Bradford Engineering, based in The Netherlands, makes satellite equipment such as attitude and orbit control systems, propulsion, avionics, and thermal subsystems and components for European companies such as EADS.
Employees hold more than 31% of Moog through an employee compensation trust and the company's retirement plan. The founding Moog family controls a 6% voting stake in the company.