Woodward posts flat 2Q earnings

FORT COLLINS – Woodward Inc. (Nasdaq: WWD) reported flat fiscal second-quarter earnings of $43.9 million compared with $44.8 million the same period a year earlier.

Fort Collins-based Woodward, which makes energy and aerospace controls systems, said the flat earnings came from anticipated economic challenges in the company’s energy markets.

“Our strategies remain intact and our investments are delivering results,” said CEO Tom Gendron. “Our outlook for the remainder of the fiscal year is on track and we expect to see continued strength in aerospace and improvement in energy from this quarter.”

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Net sales totaled $493.2 million during the second quarter ended March 31 versus $482.5 million during the same period a year earlier. Foreign currency exchange rates trimmed net sales by $15 million during the second quarter.

Second-quarter aerospace net sales totaled $281.4 million, up 8 percent from $261 million in the second quarter a year ago. Segment earnings were $45.6 million during the period, compared with $40.3 million the same quarter a year earlier.

Woodward saw higher commercial and defense sales in aerospace and lower research and development expenses.

The company’s second-quarter energy sales totaled $211.8 million, down 4 percent from the $221.4 million during the second quarter last year. Energy segment earnings were $27.2 million during the period versus $31.9 million during the same quarter last year.

Woodward saw higher sales volumes of gas-turbine and wind-turbine systems and lower sales volumes of its compressed-natural gas systems in Asia.

“With respect to oil prices, we continue to believe that they will have a neutral to positive effect on our aerospace business and a slightly negative to neutral impact on our energy business for the full fiscal year,” Gendron said.

Gendron added that Woodward’s new headquarters in Fort Collins is on target to be completed by early next year.

Woodward expects to generate sales of between $2.05 billion and $2.15 billion this fiscal year.

Woodward shares lost less than 1 point to close at $48.58.