Woodward Reports Net Sales Growth, Revises Fiscal Year 2018 Outlook
April 23 2018 - 5:19PM
Dow Jones News
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)
Copyright (c) 2018 Dow Jones & Company, Inc.
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