By Tess Stynes
Woodward Inc. (WWD) gave fiscal third-quarter guidance well below expectations as the company also cut its forecast for the full year amid lower-than-expected results at its aerospace business.
The designer of control systems for the aerospace and energy markets also unveiled a 10-year supply agreement with Caterpillar Inc. (CAT) that includes diesel fuel injection systems, natural-gas engine control system components and other items.
Woodward said the quarterly estimates were driven by issues including lower defense sales and lower-than-expected growth in commercial aftermarket sales. The company said the aerospace segment also has been hit by new product development and production process spending for new programs that have expanded more than anticipated in content and complexity.
For the quarter, Woodward projected per-share earnings of roughly 40 cents and net sales of $460 million. Analysts polled by Thomson Reuters recently projected earnings of 60 cents and revenue of $491 million.
Woodward cut its per-share earnings view for the year to $1.90 to $2 on net sales of $1.85 billion to $1.9 billion from its prior view for $2.20 to $2.35 and net sales of $1.85 billion to $1.95 billion.
The company expects to release its fiscal third-quarter financial results on July 23.
Shares closed Friday at $36.05 and were inactive in recent premarket trading. The stock is down nearly 12% this year.
Write to Tess Stynes at Tess.Stynes@dowjones.com