About Moog Inc.
Moog (rhymes with "rogue") makes precision-control components and systems used in aerospace products, defense, industrial machinery, and marine 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, robotics, and control systems for satellites and spacecraft, launch vehicles, and missiles. It also makes infusion therapy components, slip rings for CT scanners, and motors used in devices for sleep apnea. Customers in the US make up more than half its sales.
Moog operates in three segments: Aircraft Controls, Space and Defense Controls, and Industrial Systems.
Aircraft Controls, accounting for some 45% of sales, provides primary and secondary flight controls for military and commercial aircraft, including large commercial transports, supersonic fighters, multi-role military aircraft, business jets, and rotorcraft. Development programs in this segment include the F-35 Joint Strike Fighter, the Boeing 787 Dreamliner, the Airbus A350XWB, and the Black Hawk/Sea Hawk helicopter among others. Aftermarket sales account for over 25% of this segment's revenue.
Industrial Systems (about a third of sales) serves markets such as industrial automation, simulation and test, energy, and medical. Its components products include hydraulics (servo valves and pumps, actuators, and manifold systems), slip rings, and fiber optic rotary joints used in diagnostic imaging equipment, remote vehicles, and surveillance cameras to name a few. It also makes servomotors, generators, and infusion and enteral pumps.
Space and Defense Controls (about 25%) mainly supplies products for satellites and space vehicles, armoured combat vehicles, launch vehicles, and tactical and strategic missiles (such as Hellfire, TOW, and Trident).
New York-based Moog operates through manufacturing facilities in the US, and in Europe, Asia, and one location in South America (Costa Rica). The US accounts for over 60% of annual net sales. Germany and France collectively account for over 10%, while Japan generates over 5% of total revenue
Sales and Marketing
The company's principal customers are original equipment manufacturers (OEMs) and end-users for whom it provides aftermarket support. Aerospace and defense OEM customers collectively represent over 55% of sales. The majority of these sales are to a small number of large companies. Industrial OEM sales, which account for around a third of revenue, represent a wide range of global customers.
Major aftermarket customers include the US government and commercial airlines. Aftermarket sales account for more than 10% of total company revenue. The company has long-term contracts with some of its customers, which mainly reside within its Aircraft Controls, and Space and Defense Controls segments.
Other significant customers include Boeing, Airbus, Lockheed Martin, United Technologies, Bombardier, Raytheon, Northrup Grumman, and McKesson.
After a two-year decline in sales in fiscal 2015 and 2016, Moog, Inc. recovered with two consecutive years of healthy increases in sales in 2017 and 2018, with fiscal 2019 reaching a record high of $2.9 billion, a 7% hike over the previous year. Sales increased in 2019 compared to 2018 within Aircraft Controls and Space and Defense Controls, while sales declined in Industrial Systems.
Net income for Moog surged 86% to $180 million compared with $97 million the previous year.
Cash at the end of fiscal 2019 was $92.5 million, a decrease of $35.2 million from the prior year. Cash from operations contributed $181.4 million to the coffers while investing activities used $115.7 million, mainly for purchase of property, plant and equipment. Financing activities used another $98.7 million
Moog is continuing to refine its portfolio of products. In 2019, the company sold a non-core business of its Industrial Systems segment for $4 million in cash and recorded a gain in other income of $3 million. It exited the wind pitch control business in 2018 and sold off a small European operation in its Space and Defense group. The company is primarily focused on organic growth but continues to look for bolt-on acquisitions that complement its business with high-performance technologies around precision motion and fluid control.
Internal investments could be centered on a revamped information technology architecture to support growth and development, and moving the IT function from the back office to a position as a key enabler of the business. Moog is currently seeking a new chief information officer to oversee the changes.
Moog concentrate on providing their customers with products designed and manufactured to the highest quality standards. Their technical experts work collaboratively around the world, delivering capabilities for mission-critical solutions. These core operational principles are necessary as their products are applied in demanding applications, "When Performance Really Matters." By capitalizing on these core foundational strengths, the company believe that they have achieved a leadership position in high performance, precision control market.
By focusing on customer intimacy and commitment to solving their most demanding technical problems, they have been able to expand their control product franchise to multiple markets; organically growing from a high-performance components manufacturer to high-performance systems designer, manufacturer and system integrator. In addition, they continue expanding their content positions on their current platforms, seeking to be the dominant supplier in the niche market they serve. The company also look for innovation in all aspects of their business, employing new technologies to improve productivity and operational performance.
Mergers and Acquisitions
In late 2019, Moog Inc. completed the acquisition of Gesellschaft für Antriebstechnik mbH and GAT Inc. (GAT) for a purchase price of €48.5 million (approximately $53.8 million). GAT (headquartered in Geisenheim, Germany) is a world leader in the design and manufacture of high-end fluid rotating unions and slip rings. "This business complements our core slip ring business, expands our offering into fluid rotary products and allows us supply fully integrated slip ring/rotary union solutions – thereby increasing the value we deliver to our customers." said Pat Roche, President of Moog's Industrial Systems segment.
In 2019, Moog Inc. announced that the company has completed the purchase of SureFly assets and intellectual property associated with the hybrid powered vertical takeoff and landing aircraft and electric propulsion technology from SureFly Inc. and their parent company, Workhorse Group Inc. "The SureFly technology fits nicely into their technology roadmap, enabling them to advance capabilities at a greater pace in areas that influence their offerings to current and future customers in the aircraft, defense and industrial sectors" said Dave Norman, director, Innovation and Technology of Moog's aircraft segment.
In July of 1951, Bill Moog, Art Moog, and Lou Geyer pooled $3,000 and opened Moog Valve. They had limited resources, a primitive work facility in the corner of a dirt-floored airplane hangar, only a couple of potential customers, and one great product. Problem solving depended on their two resources: persistence and creativity. For Bill, Art and Lou the word "can't" did not exist and they inspired everyone who worked with them at the same time.
400 Jamison Rd
Elma, NY 14059-9596
Phone: 1 (716) 652-2000
Employer Type: Publicly Owned
Stock Symbol: MOG.A
Stock Exchange: , NYSE
Vice Chairman and VP Strategy and Technology: Richard A. Aubrecht
VP and CFO: Donald R. Fishback
Chairman and CEO: John R. Scannell
Employees (This Location): 2,100
Employees (All Locations): 12,809
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