WWD Woodward Inc

   By Aisha Al-Muslim 
 

Woodward Inc. (WWD) reported its second-quarter net sales rose as the manufacturer had strong growth in its aerospace segment.

The Fort Collins, Colo.-based aerospace-parts maker said net sales jumped 10% from a year earlier to $548.2 million, driven by growth in new aircraft production, aftermarket sales and continued strength in smart weapons.

Aerospace segment net sales rose 21% to $386.3 million, while sales in Woodward's industrial segment fell 10% to $161.9 million. The company said industrial sales declined as it faced continued weakness in industrial gas turbines and renewables, partially offset by improving demand for large engines.

Woodward had a profit of $38.5 million, or 60 cents a share in the latest quarter, slightly up from $38.1 million, or 60 cents a share, a year earlier.

Woodward recorded a total of $19 million of pretax special charges, or 22 cents share, primarily due to its decision to move its operations located in Duarte, Calif. to the recently renovated Drake Campus in Fort Collins, Colo. The Duarte facility is unable to support new business awarded to the company, including a contract with Airbus SE, the company said.

Excluding one-time items, Woodward earned 82 cents a share. Analysts polled by Thomson Reuters had forecast earnings of 74 cents a share on $528 million in revenue.

For fiscal 2018, Woodward revised its net sales guidance to about $2.2 billion, compared with a prior forecast between $2.2 billion to $2.3 billion. Adjusted earnings per share are now expected to be between $3.60 to $3.80, up from $3.35 and $3.60, the company said Monday.

Woodward manufactures products for commercial and military aircraft, including engine parts, pumps and valves. The company also has an industrial-machinery business focused on the energy and utility sectors.

Earlier this month, Rolls-Royce Holdings PLC (RR.LN) signed an agreement to sell its German fuel-injection systems supplier L'Orange to Woodward for an enterprise value of 700 million euros ($859.5 million). The deal is expected to close by the end of the second quarter of 2018 and is subject to approval from German antitrust authorities, the companies had said. The acquisition is expected to be accretive to Woodward in fiscal 2019, the company said.

The stock has remained mostly unchanged at $74.20 in after-hours trading Monday. Shares are up more than 10% in the last year.

Write to Aisha Al-Muslim at aisha.al-muslim@wsj.com

(END) Dow Jones Newswires

April 23, 2018 17:04 ET (21:04 GMT)

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