Woodward forecasts revenue growth for 2014

FORT COLLINS – Woodward Inc. executives said the company’s growth curve will continue next year, with revenues projected to reach at least $1.95 billion, and earnings per share topping $2.10.

Executives of Fort Collins-based Woodward (Nasdaq: WWD), which manufactures control systems for the aerospace and energy industries, presented to analysts in New York City on Friday morning its earnings and revenue forecast for fiscal year 2014, which ends Sept. 30. The company also broadcast the event online.

Woodward products are used in natural-gas extraction, processing and power generation.

“Gas is going to grow the most rapidly,´ said CEO Tom Gendron.

The company sees growth ahead in its renewable energy business, but also volatility in an industry driven by government regulations and subsidies.

“When those regulations or subsidies change, it has a dramatic effect on the market,” he said. “Unfortunately, we don’t have stable energy policies around the world.”

Woodward trimmed its wind business and halted investment in solar during fiscal 2013.

In its aerospace segment, Woodward projects growth from airlines upgrading fleets and seeking to defray fuel costs using the company’s control systems. Woodward makes technology for aerospace companies such as Boeing Co. (NYSE: BA).

However, Woodward projects flat U.S. defense spending, though that will not affect the company significantly. Woodward makes technology for defense aircraft.

“We don’t see it as a growth driver, but we don’t see it as a negative driver either,” Gendron said about flat defense spending.

Net sales for fiscal 2013 reached $1.9 billion, up from $1.87 billion during fiscal 2012. The company saw $1.1 billion in aerospace sales and $874 million in energy sales in fiscal 2013.

Woodward posted earnings per share of $2.10 in fiscal 2013 vs. $2.01 in fiscal 2012.

Woodward earned $145.9 million during fiscal 2013. Earnings reached $141.6 million during fiscal 2012.

Woodward shares were up 2 percent to $43.80 during Friday morning trading.


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