W H E N P E R F O R M A N C E
R E A L L Y M A T T E R S
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2 0 1 9 | A N N U A L R E P O R T
S P A C E H E R I T A G E : C E L E B R A T I N G A P O L L O 1 1
F I N A N C I A L H I G H L I G H T S
RECENT FINANCIAL PERFORMANCE
(Dollars and shares in millions, except per share data)
REVENUE BY SEGMENT
2019
2018
NET SALES
$2,905
$2,709
NET EARNINGS
DILUTED EARNINGS PER SHARE
ADJUSTED EARNINGS PER SHARE*
$180
$5.11
–
$97
$2.68
$4.57
EQUITY MARKET CAPITALIZATION
$2,847
$2,985
AVERAGE SHARES OUTSTANDING
35.2
36.1
Measured as of fiscal year end
SALES (Dollars in millions)
•Aircraft Controls 45%
•Industrial Systems 32%
•Space and Defense 23%
$ 3,500
$ 3,000
$ 2,500
$ 2,114
$ 2,000
$ 1,849
$ 2,470
$ 2,331
$ 2,610 $ 2,648
$ 2,526
$ 2,498
$ 2,412
$ 2,905
$ 2,709
REVENUE BY MARKET
$ 1,500
$ 1,000
$ 500
$ 0
2009
2010
2011 2012 2013 2014 2015
2016
2017
2018
2019
FISCAL YEAR
DILUTED EARNINGS PER SHARE (In dollars)
$ 5.11
$ 4.57
$ 3.90
$ 3.52
$ 3.47
$ 3.35
$ 2.63
$ 2.68
$ 3.33
$ 2.95
$ 2.36
$ 1.98
$ 6.00
$ 5.50
$ 5.00
$ 4.50
$ 4.00
$ 3.50
$ 3.00
$ 2.50
$ 2.00
$ 1.50
$ 1.00
$ 0.50
$ 0.00
•Defense 37%
•Commercial Aircraft 23%
•Industrial Automation 24%
•Space 8%
•Medical 8%
REVENUE BY MARKET DISTRIBUTION
Fifty years ago, on July 20, 1969, four days after launching on a
Saturn rocket, the Lunar Module (LM) landed on the surface of the
Moon. Moog employees designed and built the Thrust Vector Control
(TVC) actuation on all three stages of the Saturn rocket on that historic
flight—as well as the earlier Mercury and Gemini space programs.
While Apollo 11 Commander Neil Armstrong and Pilot Edwin “Buzz”
Aldrin Jr. descended to the Moon’s surface, Pilot Michael Collins
remained with the Command and Service Modules in lunar orbit.
The Moon’s uneven surface required Armstrong to steer the LM
using semi-automated controls. To train for the landing, Armstrong
used the Lunar Landing Research Vehicle (LLRV) which was
designed and built by Bell Aerosystems in Niagara Falls, now part of
Moog. The LLRV used small jet engines to provide lift and hydrogen
peroxide monopropellant rocket engines to simulate how the actual
Lunar Module would respond during landing.
On July 21st, the upper portion of the LM separated and returned
Armstrong and Aldrin to the orbiting Command Module. The Ascent
Engine, also built by Bell Aerosystems, had no back-up and could not
fail. It worked flawlessly.
Artemis, NASA’s new lunar exploration program, will send a crew
with the first woman and the next man to land on the Moon.
We are proud to once again be counted on to meet the challenge of
returning to the Moon by 2024.
“The highlight of Moog’s accomplishments in the aerospace market in fiscal 1969 was the successful Apollo Program.
Eight Moog actuators steered the second stage of the Saturn V launch vehicle and two actuators controlled the critical
SIVB stage. Moog steering controls have been used on every major space shot to date.”
Bill Moog in Moog’s 1969 Annual Report
2009 2010 2011 2012 2013 2014 2015 2016 2017 2018* 2019
FISCAL YEAR
*2018 adjusted EPS of $4.57 excluded the impact of charges associated with
exiting the wind pitch control business and special impacts from the U.S.Tax Act.
Financial results for fiscal year 2019 are available in Moog’s 10-K. The report
was filed on November 12, 2019, pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934 for the fiscal year ended September 28, 2019.
The 10-K can be viewed at www.moog.com/investors/10K.
•Industrial and Commercial 58%
•U.S. Military and Government Funded 35%
•Foreign Government 7%
Moog’s geographic revenue distribution is 61% U.S. and 39% international.
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C H A I R M A N ’ S L E T T E R
To Our Shareholders, Employees and Friends,
I’d like to begin by thanking the 13,000 Moog employees around the globe for their
dedication and commitment. This report is a testimony to their work and your
company’s success.
2019 was a record year for our company. Sales were up 7%, building on the 8%
growth in the prior year. Sales in our Aircraft segment were up 9% over fiscal ’18
as commercial sales saw strong growth across our Boeing, Airbus and business jet
portfolios. Early production on the next generation Embraer E2 regional jet also
contributed. In the military aircraft market, sales growth was led by the Lockheed
Martin F-35 Joint Strike Fighter program, Bell V-22 and various international
programs. Our engineering teams continued to win content on next generation
military aircraft platforms, driving funded development.
In Space and Defense, sales were up a very impressive 18% organically, with our
entire portfolio of missiles, ground vehicles, naval applications and general
components businesses seeing increases. On the space side, sales increased on
NASA programs as the U.S. plans for a return to the Moon in 2024. Funded
development programs for hypersonic applications were also strong.
In our Industrial Systems segment, higher sales into industrial automation and
medical applications compensated for lower energy sales. Our decision to exit the
wind pitch control business in 2018 drove the lower energy sales. For the segment
in total, it was a flat year for sales but a significant shift in the portfolio to more
profitable product lines.
Both Space and Defense and Industrial segments saw margin increases as a result
of our portfolio refinements over the last few years. Margins in our Aircraft segment
were down due to challenges in our supply chain. These challenges taught us that
we need to build a more robust set of operating processes and systems to meet the
demands of being a tier one supplier on major aerospace programs. We are investing
accordingly in internal talent, outside consulting and capital improvements to drive
significant operational gains over the coming years.
For fiscal ’20 we’re anticipating another year of sales growth, continued margin
expansion and higher earnings per share. We continue to be optimistic about our
business. Our portfolio of defense programs is very strong and our funded
development work on future platforms continues to grow. Our commercial aircraft
revenues will see some legacy programs wind down next year, but our space
business will be higher on increased NASA activity. We anticipate our industrial
businesses will be about even with fiscal ’19.
When making forecasts for our business, macroeconomic uncertainty is always the
biggest unknown. To date, the impact of global trade disputes and Brexit on our
businesses has been muted. We’re hopeful 2020 will bring an easing of trade
tensions and a clearer path forward for the U.K. Defense will continue to be strong
as the U.S. rebuilds its military capability from the sequestration era and the threat
of near-peer adversaries continues to be the top of the defense agenda.
“We remain focused on our key
technologies and, within this niche,
believe we can be competitive with
any player in the industry.”
Within the Aerospace & Defense industry, the trend towards industry consolidation
through mergers and acquisitions continued unabated in 2019. From our
perspective, we believe that size and scope are less important for an aerospace
supplier than deep expertise and capability. We remain focused on our key
technologies and, within this niche, believe we can be competitive with any player
in the industry.
In the face of a changing external environment, our internal strategy has not
changed. We work to create value for our customers by tailoring our products to
meet their specific needs and solving their most difficult technical challenges.
Customer intimacy is at our core and we enjoy multi-generational relationships with
most of our customers. When there’s a problem, we always seek to do the right
thing by our customer, sometimes at the expense of short-term financial results.
We believe this is key to building a great company over time.
We have a laser focus on our core technologies of motion and fluid control, but a wide
lens on end markets which can benefit from our capabilities. We seek to be prudent
stewards of our shareholders’ capital by maintaining a strong balance sheet and a
disciplined approach to capital allocation. We believe growth is a core element of
long-term value creation and continue aggressively to pursue adjacent acquisitions.
However, we remain disciplined in terms of pricing and strategic fit. As a result, we’ve
walked away from many opportunities in the last year instead of overpaying.
We have three corporate-wide initiatives around talent, lean and innovation.
Our innovation spending is focused around three key themes which cut across all
our major markets–electrification, autonomy and connectivity. Finally, our culture of
trust and collaboration remains the cornerstone of our business.
“As we look out over the coming
decades, we remain very excited about
our business.”
In 1969, Moog provided the actuators which steered the Apollo 11 rocket into
space, helping put the first humans on the Moon. Over the last 50 years we have
built on that heritage by taking our technologies to an ever wider set of customers
and markets. As we look out over the coming decades, we remain very excited
about our business.
Rising concern about global warming is driving the need for new and more efficient
motion technologies. An aging population and lack of skilled labor in many industries
is increasing the need for more advanced robotics. In addition, advances in sensors,
artificial intelligence and autonomous systems are making it possible to introduce
new types of automation into old industries such as construction and agriculture.
Moog is ideally positioned to take advantage of these macro trends. Our deep
expertise in motion components and high reliability systems, combined with our
continuing investments in innovation, give us the tools to meet this emerging demand.
At the end of calendar 2019, Don Fishback is retiring from our company. Don joined
the company in 1981 and spent a career in our finance organization, rising to the role
of CFO in 2010. Over the years, he has made an enormous contribution to the
success of our business through active engagement in strategic decisions and
prudent management of our capital. He has always put the interests of our company
first, living the culture and being a team player at all times. We will miss a great CFO.
Don will remain on the board as a director for many years to come so we will continue
to benefit from his insights and wisdom. We wish him well in the next chapter of life.
Respectfully submitted,
John Scannell
Chairman and Chief Executive Officer
Left to Right,Top to Bottom: Paul Wilkinson, Pat Roche, Don Fishback, John Scannell, Maureen Athoe, Mark Trabert
DIRECTORS
John R. Scannell
Chairman of the Board
Chief Executive Officer
Donald R. Fishback
Director
Vice President
Chief Financial Officer
William G. Gisel, Jr.
Director
President and CEO
Rich Products Corp.
Peter J. Gundermann
Director
President and CEO
Astronics Corp.
Kraig H. Kayser
Director
President and CEO
Seneca Foods Corp.
R. Bradley Lawrence
Director
Retired Chairman and CEO
Esterline Technologies
Brian J. Lipke
Director
Retired Chairman and CEO
Gibraltar Industries
Brenda L. Reichelderfer
Director
Retired Group President, ITT Corp.
OFFICERS
Mark J. Trabert
President
Aircraft Controls
Maureen M. Athoe
President
Space and Defense
Patrick J. Roche
President
Industrial Systems
Paul Wilkinson
Vice President
Chief Human Resources Officer
Jennifer Walter
Vice President
Finance
Michael J. Swope
Controller
Principal Accounting Officer
Timothy P. Balkin
Treasurer
Assistant Secretary
Robert J. Olivieri
Secretary
Partner
Hodgson Russ, LLP
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2 0 1 9 H I G H L I G H T S
F-35A Down Under
Moog Australia has been named as Australia’s preferred, in-country repair,
overhaul and upgrade facility for the F-35A Lightning II Joint Strike Fighter
Electrohydrostatic Actuators, Leading Edge Flap Actuation System, and
Wingfold Actuation System. The work will be performed at Moog’s facility
in Melbourne.
Commercial Aftermarket Collaboration
Moog and Abu Dhabi-based Etihad Aviation Group announced a strategic
15-year collaboration that will provide Etihad Airways with global access to the Moog
component spares pool, as well as complete repair support from Moog on a range
of part numbers fitted to the airline’s fleet. Moog will also support Etihad Airways
Engineering, the largest MRO service provider in the Middle East, as the company
establishes a center of excellence for component repair and overhaul.
Lycos Video Tracker
The Defense sector introduced its new Lycos Long Range Precision Tracking
System. The Lycos is engineered to provide best-in-class tracking of targets
at long range. The system, designed and produced in the U.S., includes high-
definition EO/IR cameras with simultaneous video output in a rugged,
user-friendly design. It is ideally suited for applications requiring high accuracy
and precision, such as counter-Unmanned Aerial Systems (c-UAS), trajectory
analysis, weapons scoring and border security.
Valor V-280™
Bell’s V-280 Valor completed flight demonstrations of its low-speed agility testing.
Moog is designing, manufacturing and qualifying the integrated flight control
system, including three flight control computers with support software, six triplex
swashplate actuators to control the rotors, and the flaperon and ruddervator
actuators that control the wing and tail. The V-280 Valor has demonstrated that it
has the raw control power in pitch, roll, and yaw maneuvers to meet the Army’s
handling requirements. The U.S. Army-led Joint Multi-Role Technical Demonstrator
(JMR-TD) program is the precursor to the Department of Defense’s Future Vertical
Lift program – the expected next-generation replacement for all DoD helicopters.
KC-46 Pegasus Tanker
The U.S. Air Force completed refueling certification and testing for the KC-46
Pegasus tanker aircraft in June. Moog’s Aircraft Controls segment supplies the
fly-by-wire refueling boom actuators for the tanker. The actuators allow the boom
operator to control the deployment and positioning of the aerial refueling boom.
The KC-46, derived from Boeing’s commercial 767 airframe, is built in Boeing’s
Everett, WA facility. Boeing plans to build 179 of the 767-based refueling aircraft
to replace older KC-135 Stratotankers. The first Pegasus tankers were delivered
to the Air Force in January 2019.
Level D Certified Full Flight
Moog was selected by Havelsan A.S. to provide motion bases with control
loading systems and software for five Level D Certified Full Flight Simulators.
Turkish Airlines awarded a contract to Havelsan to support pilot training for its
Airbus and Boeing aircraft. Moog’s simulator solutions increase simulation
fidelity making Moog the world-leader in providing motion systems for Level D
Full Flight Simulators.
Moog Torrance Celebrates 25 Years
Moog celebrated the 25th anniversary of the Moog Aircraft Controls
segment’s facility in Torrance, CA. Acquired in 1994 from the Allied Signal
Company for $69 million, the acquisition added a hydraulic actuation product
suite and mechanical rotary actuation used for positioning leading edge flaps –
helping Moog grow into an industry leader and one-stop supplier for advanced
flight control systems. The Torrance site has grown to include 700+ employees
supporting programs that include the Airbus A350, Boeing 787 and F-18,
and Lockheed Martin F-35 Joint Strike Fighter.
New Aircraft Facility Completed
Moog’s newly completed 95,000 square foot manufacturing facility includes
machinery and equipment to support a growing aerospace business. Located
on the Moog campus in Elma, New York, the site houses design engineering,
R&D, manufacturing and support functions, as well as military and commercial
product assembly and test labs. Built with the energy efficient LED lighting,
light harvesting and other efficient building concepts and components,
employees work in an open-space office environment with collaborative work
centers throughout. The project interconnected three adjacent and multi-era
constructed buildings and included an extensive brownfield clean-up program
on the construction site.
Digital Control Servovalves – FM Certification
Moog digital control servovalve products received FM Approvals certification
according to National Electric Code 505. FM is accredited as a nationally recognized
third-party testing laboratory with a certification mark that is globally recognized.
Oil and gas manufacturers, operators and technology suppliers are required to
meet NEC 505 – the electric code for locations where hazardous, flammable
gases may exist. Explosion-proof digital control servo and proportional valves
provide intelligent closed-loop motion control and optimize equipment functionality
in offshore and onshore oil and gas exploration and production, power generation
and chemical processing control applications.
Outstanding Achievement in Aviation
Moog was awarded Aviation Week’s Laureate Award for outstanding
achievement in aviation, aerospace, and defense. Moog received the award in
collaboration with the U.S. Air Force and the South Dakota School of Mines
and Technology. Moog’s cold spray technology, used for B-1 bomber repairs,
saved over $200,000 per repair on B-1B forward equipment bay panels. Cold
spray technology provides an economical repair solution for corroded and
damaged parts, including hard-to-repair magnesium and aluminum parts.
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© Gulfstream
Gulfstream G600™
Gulfstream’s all-new Gulfstream G600 earned both its type and production
certificates from the U.S. Federal Aviation Administration (FAA). The certifications
were followed by the first G600 deliveries to customers in August. Type certification
is granted after an aircraft’s design proves compliance with aviation regulations. A
production certificate is granted once the manufacturer demonstrates its
manufacturing facilities and quality management system meet the agency’s
requirements for safety and reliability. Moog supplies the high lift system and the
pilot directional control system for the G600. The G600 can fly up to 6,500 nautical
miles /12,038 kilometers and can carry passengers nonstop from Paris to
Los Angeles or Hong Kong.
U.S. Navy MQ-25A Stingray
Moog’s Aircraft Controls segment was awarded a contract by The Boeing Company
to supply the wing flight control actuation and wingfold actuation systems for the
U.S. Navy’s unmanned refueling program. The MQ-25A is the U.S. Navy’s first
carrier-based unmanned refueling aircraft. The contract supports Boeing’s
engineering and manufacturing development program for four U.S. Navy MQ-25A
aircraft and initial operational capability by 2024. In September, Boeing and the
U.S. Navy successfully completed the refueler’s first test flight.
LAV-AT for U.S. Marine Corps
Moog completed its Line of Sight Control (LOSC) contract deliveries to Raytheon
in McKinney, TX. Raytheon integrates the LOSC, which includes Moog’s turret and
control electronics, with their targeting system, missile launcher, and controls.
Completed units are delivered to the Marines as part of their Light Armored Vehicle
Anti-Tank (LAV-AT) weapons system. Initial development systems were delivered
for testing by the Marines in 2013, followed by a 2015 contract award for 102
systems. The turrets will be in service for 20+ years and Moog will provide
sustainment services for the program with LAV-AT spare parts.
AEHF-5 Satellite and 80th Atlas V Mission
The U.S. Air Force and United Launch Alliance successfully launched the fifth AEHF
satellite on an Atlas V rocket in August. The Advanced Extremely High Frequency
(AEHF) is a series of communications satellites operated by the U.S. Air Force
Space Command. They are used to relay highly-secure, jam-proof communications
for the United States and international partners including Canada, the Netherlands
and the United Kingdom. The AEHF-5 launch marked the 80th Atlas V mission
since the inaugural launch in 2002.
A I R C R A F T C O N T R O L S
Our broad technology portfolio and collaborative customer relationships deliver high value‐added, tailored solutions to commercial and
military customers.
Product Portfolio
• Flight control computers and flight‐critical software
• Primary and secondary flight control actuation – all technologies
• High lift/flap actuation systems
• Specialty actuation systems
• Critical control components
Competitive Advantages
• State-of-the-art technology and intellectual property in flight controls, engine controls, door drive controls, active vibration controls and
engineered components
• Critical component knowledge
• Complete flight control system design and integration capability
• World-class manufacturing facilities and skilled, experienced, team-based workforce
• Focused, highly-responsive global aftermarket support organization
FY 2019 SALES
$1,303 M
•Commercial Aircraft OEM $540 M
•Commercial Aircraft Aftermarket $141 M
•Military Aircraft OEM $415 M
•Military Aircraft Aftermarket $207 M
Supplier of integrated systems and critical control products for military, commercial and business aircraft.
Military Aircraft
F-35, F-15, F/A-18E/F, EA-18G, F-16, KC-46, A400M, Korea KFX and T-50, C-27J, C-295,
CN-235, Eurofighter, JAS 39, India LCA, Japan C-2, P-1, Hawk, AJT, M346, MQ-25A
Business Jets
Bombardier Challenger 350, 605 and Global Express, Gulfstream G280, G500,
G550, G600, G650, G700
Military and Commercial Helicopters
H-60/S-70, H-53, EH-101, S-76, S-92, V-22, V-280, AH-64, A109, A129, AB139,
AW159, AW609, Future Lynx, B525
Commercial Airplanes
Boeing 737, 747, 767, 777, 787, Airbus A320, A330, A350, A380, Embraer E-Jets
E2 Family, COMAC C919
Customer Support
All current production programs above plus legacy programs including A-7, A-10, A300,
A340, AH-64, AMX, B-1B, B-2, B-52, BAE-146, C-5, C-130, C-141, CH-46, CH-47,
CH-53, Cessna Citation X, Bombardier Challenger 300, 604, DC-8, DC-9, DC-10,
E-2C, EA-6B, F-2, F-4, F-100, F/A-18C/D, F/A-22, Gulfstream , G350, G400, G450,
Hawk, KC-10, KC-135, MD-11, MD-80, MD-90, P-3, T-45, Tornado, U-2, VC-10, 757
F-35C Lightning II – VFA 125 “Rough Raiders”
Courtesy of U.S. Navy / Lt. Cmdr. Darin Russell
Airbus A350-900
Courtesy of Szabó Gábor
Aftermarket Support
As a leading supplier to aircraft OEMs, Moog’s portfolio includes a broad range of electrical,
hydraulic and mechanical aircraft control components and systems. We offer the latest
enhancements and support for our products over the life cycle of a platform – from idea
conception and design to aftermarket. Moog’s customer commitment includes a staffed
24/7 Aircraft on Ground (AOG) service for commercial programs.
An unserviceable aircraft, grounded due to lack of spare parts, is costly for an airline or operator
of freighters or business jets. When lack of a part keeps an aircraft from being released to
service, the aircraft is considered AOG. Operators then dispatch emergency spares from their
inventory, part manufacturers, or other open market sources. Shifting airline strategies has
streamlined hub-to-hub passenger routing and consolidated maintenance operations.
Moog’s Total Support (MTS) quickly supplies new and overhauled components from Moog’s
forward-stocking inventory locations around the globe. Airlines on contract for Power by
the Hour (PBH) services have access to spares pooling, maintenance and on-site technical
support. On average, Moog’s 24/7 aftermarket response team manages 75 AOG and PBH
events each month, with a turnaround time of less than four hours. Moog aftermarket
support employees interact with customers over 5,000 times a month when ordering
spares, inquiring about repair and overhaul services, and arranging advance exchanges.
On military aircraft, Moog is positioned on virtually every platform in the marketplace. With
aircraft in service many years beyond intended design life, Moog provides modern solutions
with upgrades and life extension programs that utilize next generation technologies.
Moog engineers also work in conjunction with military aircraft repair depots to support
fighter, helicopter and tiltrotor aircraft stationed around the globe. As the OEM legacy supplier
of F-15, F-16 and F-18 flight control components, our aftermarket and sustainment teams
routinely provide spare parts and repair and overhaul services to U.S. and international
military users, supporting Moog legacy and non-Moog products.
Testing of 787 Dreamliner Outboard Spoiler – 6 Per Aircraft
Boeing 787-9 Dreamliner
Courtesy of Chris Pitchacaren
CV-22 Osprey
Courtesy of U.S. Air Force / Sr. Airman Luke Kitterman
787 Dreamliner Inboard Spoiler
4 Per Aircraft
KC-46 Pegasus and F-35A Lightning II
Courtesy of U.S. Air Force / 412th Test Wing
Embraer E195-E2
Courtesy of Michel van Bokhoven
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S P A C E A N D D E F E N S E
We provide reliable hardware, integration and launch support to the space industry, and components and systems that are critical to the
U.S. war fighter and our global military allies.
Space Product Portfolio
• Multi-tier provider capable of components, systems and prime level integration
• Thrust vector control and flight control actuation systems, avionics, propulsion controls and structures for missiles and launch vehicles
• Liquid rocket engines, tanks, chemical and electric propulsion systems, subsystems and components for spacecraft and launch vehicles
• Satellite integrated avionics, solar array drives, antenna pointing mechanisms and vibration isolation systems
Defense Controls Product Portfolio
• Fin and Thrust Vector Control actuation systems and divert and attitude control components for tactical, hypersonic and interceptor missiles
• Weapon Stores Management Systems (SMS) and launchers for the deployment of missiles, guns and rockets
• Turreted weapon systems, precision motion controls and slip rings for gun laying/stabilization, ammunition handling and expeditionary radar
• Electromechanical and electrohydraulic actuation products for Naval ships, submarines and Unmanned Underwater Vehicles (UUVs)
• Integrated counter-Unmanned Aerial Systems (c-UAS), sensor-based security systems and sensor positioning sub-systems
• Product training, aftermarket and field-service support
Competitive Advantages
• 65+ years of heritage with highly-skilled engineers, technologists and rocket scientists
• Strong customer relationships based on decades of defense and space mission expertise
• Focus on delivering 100% quality products, on-time, utilizing lean manufacturing principles
• A one‐stop resource for space and defense actuation plus control electronics
FY 2019 SALES
$683 M
•Defense Controls $464 M
•Space $219 M
Additive Manufacturing for Space
Moog has a strong heritage of providing thrusters and associated components to global
satellite customers. To prepare for the ever-evolving space market, Moog has invested in a
state-of-the-art metal Additive Manufacturing (AM) facility and a new engine testing facility.
Currently, Moog engineers are developing technologies to support the next generation of
monopropellant and bi-propellant small thrusters, utilizing AM and other advanced
manufacturing methods. AM offers unique geometries that increase propellant flow efficiencies
and provide unparalleled thermal management. Within one-half inch, a thruster could have a
surface that will be greater than 2500˚ F and another feature that needs to be maintained to
less than 100˚ F. The additive configuration allows for these temperatures to be accommodated
where traditional manufacturing methods would not meet the expected package requirements.
When compared to a conventional design method, additive offers the advantages of weight
reduction, overall part-count reduction, reduced special processes such as welding and
brazing, faster design iteration with shorter lead-times, and improved performance with a
potential for lower cost products. Moog has recently manufactured, and hot-fire tested AM
rocket engine injectors made of titanium and INCONEL®. Traditional or subtractive machined
parts have a lead-time of 12-15 months. Moog’s AM rapid product development reduced the
lead-time to 4-6 months, with a replacement part lead-time of 4 days. Complex geometry due
to injector complexity, envelope, and mass constraints made AM development the answer for
a hardware design that had to meet strict customer performance specifications.
Completed Rocket Engine Assembly
Post-Processed
Additive Rocket Engine
Injector
Additive Rocket Engine
Injector
Extensive heritage and industry expertise with a focus on mission critical solutions.
Space
Defense
Satellite Controls: MAXAR 1300-Class and Legion-Class, Eurostar, Spacebus,
LM2100, DS-1000/2000, GEOStar, James Webb Space Telescope, GPS III,
Galileo, H2 Transfer Vehicle
Launch Vehicles, Hypersonic Vehicles, Manned Space and Strategic Missile Controls:
Atlas V, Delta IV, Ariane 5, Minuteman III, Falcon 9, NASA Space Launch System and
Orion, CST-100 Starliner Commercial Crew Vehicle, Trident D-5, OmegA, New Glenn,
and LauncherOne
Missile Systems: HELLFIRE®, TOW, Tomahawk, MALD, EKV, THAAD
Defense Control Systems: Abrams, AC-130J, AJAX, Aegis Combat System, CV90
family, FLW 100/200 RWS, G/ATOR Radar, LAV-25, LAV-AT, Littoral Combat Ship
MK46, U.S. Army MLIDS and USMC MADIS c-UAS, Multi-Mission Launcher, Stryker
Naval Systems: Virginia and Columbia-class submarines, USS Gerald R. Ford aircraft carrier
Sensor & Surveillance Systems: Ground Based Operational Surveillance System,
Mine Resistant Ambush Protection (MRAP), RQ-7 Shadow
Space Launch System Rocket and Orion Spacecraft
Courtesy of NASA
Moog Reconfigurable Integrated-weapons Platform – RIwP
Europa Clipper Spacecraft – Orbiting Jupiter
Courtesy of NASA/JPL-Caltech
Littoral Combat Ship USS Milwaukee (LCS 5)
Courtesy of U.S. Navy / MC Spec. 2nd Class Zachary A. Anderson
Moog’s Mercury Tracking System – Medium Range
c-UAS, installed Atlanta, GA
Virginia-Class Attack Submarine USS Delaware (SSN 791)
Courtesy of U.S. Navy / HII-Ashley Cowan
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I N D U S T R I A L S Y S T E M S
We create a competitive advantage for our customers by providing unique motion control solutions.
Product Portfolio
• Slip ring assemblies for industrial automation, construction equipment and Floating Production, Storage and Offloading (FPSO) vessels
• Hydraulic servovalves, including valves with embedded intelligence
• Brush, brushless DC and servo electric motors for material handling and industrial automation
• Highly reliable electric, electro-hydrostatic and hydraulic actuation systems for industrial motion control, simulation, and test applications
• Ball and roller screws for injection and blow molding machinery and harsh environment industrial systems
• Controllers, servo drives and software for a broad range of motion control applications
• High-performance servo pumps for a wide range of high-end industrial applications
• Fiber optic rotary joints, acoustic sensors, sonars, and video cameras for subsea imaging and Remotely Operated Vehicles (ROVs)
• Medical OEM air detection sensors, surgical handpieces, ambulatory care infusion pumps and enteral feeding pumps
• Motors and blowers for sleep therapy, ventilators and portable oxygen concentrators
Competitive Advantages
• Global reach with sales, engineering and operations across 22 countries
• Engineering heritage and experience in our customers’ machines, motion design challenges and industrial applications
• Ability to customize our technology and leverage system engineering expertise to create unique solutions
• Low to high volume manufacturing complemented by supplier partnerships
• Expert global aftermarket services including spares, repairs and overhaul, field service and training
FY 2019 SALES
$918 M
•Industrial Automation $447 M
•Medical $227 M
•Energy / Marine $121 M
•Simulation and Test $123 M
Recognized brand in key markets with capabilities in motion control, sensing, power and data transmission.
Industrial Automation
Plastic injection and blow molding machine controls – both hydraulic and
electric, steel production, metal forming and presses, packaging, robotics,
construction, material handling and industrial automation
Energy / Marine
Gas and steam turbine solutions, oil and gas exploration and production solutions,
Remotely Operated Vehicles (ROVs), Floating Production, Storage and Offloading
Vessels (FPSO), wind energy turbine components
Simulation and Test
Flight simulation motion systems including Level D certified motion bases and
G-seats for realistic pilot training, hydraulic and electric automotive turnkey testing
systems for component performance and structural testing, aerospace turnkey
testing systems for iron bird, structural and components
Medical
Oxygen therapy, sleep therapy, computed tomography (CAT scan), IV pumps,
enteral pumps, sensors, surgical handpieces
Turbine Controls
Gas and Steam Turbines
Flight Simulation – Level D Full Flight Simulators
Courtesy of Reiser Simulation and Training GmbH
Rotary Transfer Systems
Rekofa’s rotary transfer product portfolio, acquired by Moog in 2017, includes customized
electromechanical systems that transfer current, signals and data in rotating devices or
structures. The products are used wherever there is a need for continuous rotating transfer
of currents, data and media to a stationary component. Slip ring transmitters, often called
rotary joints or transfer systems, are electromechanical products used on fixed angle and
continuously rotating parts.
For over 90 years, Rekofa has been designing and manufacturing slip rings for most major
OEM equipment manufacturers. Slip rings are designed into construction excavators,
port and mobile cranes, turntable ladder vehicles and elevating platforms to deliver reliable
performance in harsh environments. Most of these applications require robust bandwidth
that reflects equipment type, data usage and jobsite conditions.
The technology can also be combined to include electrical, pneumatic, hydraulic and multi-
channel fiber optic transfers typically used in tower cranes and cabs, radar systems and
automotive manufacturing. Rekofa engineers work with customers to incorporate custom
designs into new products, specializing in matching components to specific environmental
conditions for temperature, sea water and oil resistance, and vibration.
The Rekofa acquisition extended Moog’s existing line of industrial slip rings and rotary
transfer solutions to Rekofa’s customer base in Europe, Asia and North America. In addition
to excavators, slip ring rotary transmitters are designed into industrial automation
applications for packaging, printing, bottling and automotive plant welding turntables.
Sub-miniature High-performance Controls
Motorsports
Machine Controls
Extrusion Blow Molding Machinery
Construction Machinery Slip Rings
Moog Rekofa Products
Slip Rings – Medical Computer Tomography (CT)
Moog IV and Enteral Medical Pumps
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F I N A N C I A L R E V I E W
(Dollars and shares in millions, except per share data)
2019
2018
2017
2016
2015
2014
2013
2012*
2011*
2010*
2009*
SEGMENT SALES
I N V E S T OR I N F O R M A T I O N
Annual Meeting
New York Stock Exchange
Our Annual Meeting of Shareholders will be held on February 11, 2020 at 9:00
am PST at The Intercontinental Hotel, 901 Bayfront Ct., San Diego, CA 92101.
Our two classes of common shares are traded on the New York Stock
Exchange under the ticker symbols MOG.A and MOG.B.
AIRCRAFT CONTROLS
$ 1,303
$ 1,194
$ 1,125
$ 1,064
$ 1,087
$ 1,118
$ 1,060
$ 964
$ 850
$ 757
$ 663
SPACE AND DEFENSE CONTROLS 1
$ 683
$ 581
$ 529
$ 499
$ 381
$ 395
$ 396
$ 359
$ 356
$ 325
$ 275
Reports
INDUSTRIAL SYSTEMS1
$ 918
$ 935
$ 843
$ 849
$ 522
$ 591
$ 592
$ 634
$ 629
$ 546
$ 455
COMPONENTS1
NET SALES
–
–
–
–
$ 536
$ 545
$ 563
$ 514
$ 495
$ 487
$ 457
$ 2,905
$ 2,709
$ 2,498
$ 2,412
$ 2,526
$ 2,648
$ 2,610
$ 2,470
$ 2,331
$ 2,114
$ 1,849
EARNINGS BEFORE TAXES
$ 234
$ 184
$ 182
$ 173
$ 184
$ 219
$ 165
$ 209
$ 184
$ 149
$ 111
NET EARNINGS
$ 180
$ 97
$ 141
$ 127
$ 132
$ 158
$ 120
$ 152
$ 136
$ 108
$ 85
NET RETURN ON SALES
6.2%
3.6%
5.7%
5.3%
5.2%
6.0%
4.6%
6.2%
5.8%
5.1%
4.6%
EARNINGS PER SHARE
BASIC EPS
DILUTED EPS
ADJUSTED EPS2
DILUTED WEIGHTED-AVERAGE
SHARES OUTSTANDING (in millions)
$ 5.16
$ 2.71
$ 3.94
$ 3.49
$ 3.39
$ 3.57
$ 2.66
$ 3.37
$ 2.99
$ 2.38
$ 2.00
$ 5.11
$ 2.68
$ 3.90
$ 3.47
$ 3.35
$ 3.52
$ 2.63
$ 3.33
$ 2.95
$ 2.36
$ 1.98
–
$ 4.57
35.2
36.1
36.2
36.5
39.3
45.0
45.8
45.7
46.0
45.7
42.9
Shareholders have electronic access to our annual report / Form 10-K and
Proxy Statement. Copies of these and our other public reports are available on
our website or by contacting us via email, telephone or letter at:
Investor Relations
Moog Inc.
East Aurora, New York 14052-0018
Phone: 716-687-4225
Email: investorrelations@moog.com
Electronic Information
We have a website for investors which includes:
• Press releases
• Financial results and archived webcasts
• SEC filings
• Corporate governance and ESG information
• Answers to frequently asked questions
• Transfer agent information
Please visit http://www.moog.com/investors
Shareholders who hold Moog stock with a broker or bank nominee and wish
to receive press releases via e-mail should contact Investor Relations.
Note that not all information contained on our website is incorporated into this
annual overview or our other SEC filings.
Transfer Agent and Registrar
Affirmative Action Program
Equiniti (EQ) Shareowner Services is the stock transfer agent and registrar
maintaining shareholder accounting and ownership records, dividend history
and tax forms.
In recognition of our role as a contributing corporate citizen, we have adopted all
programs and procedures in our Affirmative Action Program as a matter of
Corporate policy.
Please direct inquiries to:
EQ Shareowner Services MAC N9173-010
1110 Centre Pointe Curve, Suite 101
Mendota Heights, MN 55120
Toll Free: 1-800-468-9716
Data Privacy
Moog is committed to protecting personal data in accordance with its responsibilities
under U.S. and worldwide privacy regulations, including the General Data Protection
Regulation (GDPR).
RESEARCH AND DEVELOPMENT
$ 126
$ 130
$ 145
$ 147
$ 132
$ 139
$ 135
$ 116
$ 106
$ 103
$ 100
Secure online access is available at www.shareowneronline.com.
Photographic Images
CAPITAL EXPENDITURES
$ 118
$ 95
$ 76
$ 67
$ 81
$ 79
$ 93
$ 107
$ 84
$ 66
$ 82
DEPRECIATION AND AMORTIZATION
$ 85
$ 89
$ 90
$ 99
$ 104
$ 109
$ 108
$ 101
$ 96
$ 91
$ 76
Independent Auditors
Ernst & Young LLP
The appearance of U.S. Department of Defense (DoD) visual information does not
imply or constitute DoD endorsement.
AT YEAR END
TOTAL ASSETS
$ 3,114
$ 2,964
$ 3,091
$ 3,005
$ 3,037
$ 3,140
$ 3,151
$ 3,106
$ 2,843
$ 2,712
$ 2,634
WORKING CAPITAL
$ 901
$ 796
$ 997
$ 938
$ 931
$ 849
$ 834
$ 885
$ 834
$ 813
$ 764
INDEBTEDNESS
$ 833
$ 863
$ 957
$ 1,006
$ 1,070
$ 872
$ 706
$ 765
$ 725
$ 765
$ 833
SHAREHOLDERS’ EQUITY
$ 1,332
$ 1,225
$ 1,214
$ 988
$ 995
$ 1,347
$ 1,536
$ 1,305
$ 1,192
$ 1,121
$ 1,065
RETURN ON
SHAREHOLDERS’ EQUITY
SHAREHOLDERS’ EQUITY PER
COMMON SHARE OUTSTANDING
13.8%
7.8%
13.3%
12.6%
11.3%
10.4%
8.6%
12.1%
11.4%
9.8%
8.3%
$ 38.12
$ 35.20
$ 33.94
$ 27.56
$ 27.09
$ 32.51
$ 33.86
$ 28.80
$ 26.38
$ 24.70
$ 23.53
BACKLOG (12 month)
$ 1,502
$ 1,481
$ 1,212
$ 1,225
$ 1,273
$ 1,340
$ 1,296
$ 1,279
$ 1,325
$ 1,181
$ 1,098
NUMBER OF FULL-TIME
EMPLOYEES
12,809
11,787
10,675
10,497
10,691
11,031
11,152
10,976
10,320
10,117
10,005
1 The former Components segment has been divided and merged into Space and Defense Controls and Industrial Systems segments.
2 2018 adjusted EPS of $4.57 excludes the impact of charges associated with exiting the wind pitch controls business and special impacts
from the U.S. Tax Act.
*
Not restated for Total Assets, Working Capital and Indebtedness.
Amounts may not equal the total due to rounding.
Front Cover:
TOP ROW
Construction Crane Slip Rings
F-35B Lightning II Courtesy of U.S. Marine Corps / Warrant Officer Bobby J. Yarbrough
UH-60 Black Hawk Courtesy of U.S. Air Force / Alejandro Peña
Delta IV Heavy Rocket Courtesy of U.S. Air Force
Steel Mill Controls
MIDDLE ROW
Computer Tomography-CT
EA-18G Growler Courtesy of U.S. Navy / MC Spec. 3rd Class Michael Singley
View of Earth 1969 Courtesy of NASA / Astronaut-Command Module Pilot Michael Collins
Oil and Gas Exploration
BOTTOM ROW
Stryker 3rd Cavalry Regiment Courtesy of U.S. Army / Staff Sargent Matthew Johnson
Gulfstream G600 Courtesy of Phil Hosking
GPS III Navstar GPS Satellite Courtesy of SMP/GP
COVER BACKGROUND IMAGE
Original Patent Drawing of Electrohydraulic Servovalve
Patent No. 2,767,689 – William C. Moog, Jr., East Aurora, New York
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Design and layout by Moog Graphic Services
m
MOOG INC. | EAST AURORA, NY 14052 | P: 716.652.2000 | WWW.MOOG.COM