About Moog Inc.
Moog (rhymes with "rogue") makes precision-control components and systems used in aerospace products, defense, and industrial markets. Hydraulic components include high-performance servo valves with mechanical or electronic feedback, high-dynamic performance hydraulic servo pumps, energy-efficient electro hydrostatic actuators and complex hydraulic manifold systems. It also makes infusion therapy pumps, CT scan medical equipment, ultrasonic sensors, and surgical handpieces and motors used in devices for sleep apnea. Customers in the US make up about two-thirds of its sales.
Moog operates in three segments: Aircraft Controls, Industrial Systems, and Space and Defense Controls.
Aircraft Controls, accounting for over 40% 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, F/A-18E/F Super Hornet, the V-22 Osprey tiltrotor and the Black Hawk UH-60/Seahawk SH-60 helicopter, while its large commercial production programs include the full line of Boeing 7-series aircraft, Airbus A320, A330 and A350XWB and a variety of business jets. Aftermarket sales account for some 30% of this segment's revenue.
Industrial Systems (about 30% of sales) serves markets such as industrial automation, simulation and test, energy, and medical. Its components products include hydraulics (servo valves and pumps, energy-efficient electro hydrostatic actuators, and complex hydraulic 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 (more than 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 approximately 65% of annual net sales. Germany and France collectively account for about 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.
Other significant customers include Boeing, Airbus, Lockheed Martin, United Technologies, Bombardier, Raytheon, Northrup Grumman, and McKesson.
Except in 2020, the company's revenue has been rising for the last few years. It has an overall growth of 20% between 2016 and 2020. In the same period, the company's net income had been sporadic, with an overall decline of 93%.
For the year ended 2020, the company had a revenue of $2.9 million, a 1% dip from the previous year. Aircraft Controls and Industrial Systems segments both had lower sales volume in the period.
The company, for the year ended 2020, had a net income of $9.2 million, a drop of 95% compared to the previous year.
Cash for the year ended 2020 totaled $85.1 million. Operating activities generated $279.2 million, while investing activities used $146.2 million, mainly for capital expenditures. Financing activities used another $142.8 million, primarily for payments on revolving lines of credit.
Moog's fundamental long-term strategies to achieve its goals center around talent, lean and innovation and include:
A strong leadership team that has positioned the company for growth; Utilizing its global capabilities and strong engineering heritage to innovate; Maintaining the company's technological excellence by solving its customers' most demanding technical problems in applications "When Performance Really Matters"; Continuing to invest in talent development to strengthen employee performance; and Maximizing customer value by implementing lean enterprise principles.
The company focuses on improving shareholder value through strategic revenue growth, both acquired and organic, through improving operating efficiencies and manufacturing initiatives and through utilizing low cost manufacturing facilities without compromising quality.
Mergers and Acquisitions
In late 2020, Moog Inc. has completed the acquisition of Genesys Aerosystems Group, Inc. (Genesys), which designs and manufactures a full suite of electronic flight instrument systems and autopilot solutions specializing in fixed wing, rotorcraft, military and special mission aircraft fleet support with state-of-the-art avionics and product sustainment services for a purchase price of approximately $77.7 million. Genesys Aerosystems is headquartered in Mineral Wells, Texas. The purchase includes the operating subsidiaries S-Tec Corporation and Genesys Aerosystems, Inc.
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): 12,623
Mountain View, CA
West Melbourne, FL
Earth City, MO
West Fargo, ND
East Aurora, NY
Niagara Falls, NY
Midwest City, OK
Salt Lake City, UT
Menomonee Falls, WI
Sao Paulo, Brazil
St. Gallen, Switzerland