Woodward posts 12-percent net sales increase

FORT COLLINS – Woodward reported higher profits Monday fueled by a surge in its energy sales, resulting in second-quarter earnings per share of 55 cents compared to 46 cents in the like period a year ago.
Net sales, the Fort Collins company said, came in at $468.8 million, a 12-percent increase from the same period last year.

The company, which makes technologies that can be found in fuel systems in the energy and aerospace markets, maintained cash flow of $3.4 million in the second quarter.

“Market share gains, including strength in our wind business along with anticipated growth in other markets, resulted in solid sales for the quarter,” CEO Tom Gendron said in the statement. “We experienced earnings growth while absorbing a significant increase in new product and systems development primarily on recently awarded programs.”

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Woodward posted earnings of $60.5 million before taxes and interest, a 15-percent surge from the $52.7 million the company earned during the previous second quarter. Its net earnings increased to $38.8 million from $32.1 million during the same time.

In its aerospace segment, Woodward recorded net sales of $224.3 million, a 9-percent increase from the previous second quarter. The company’s second-quarter aerospace earnings increased slightly to $33.7 million from $33.2 million.

Aerospace sales benefited from strong demand for commercial and military aftermarkets, according to Woodward. At the same time, earnings were partially offset by increased research and development and high manufacturing costs tied with sales growth and investments to enhance manufacturing productivity.

Energy sales were $244.5 million for the second quarter, a 14-percent jump from the previous second quarter. Earnings in the division increased to $34.3 million, a 27-percent surge from last year’s second quarter.

Sales of control systems for wind turbines and industrial gas turbines were responsible for the greatest energy sales increase, Woodward said.

“Our fiscal 2012 outlook remains unchanged,” Gendron said. “We believe our markets remain relatively stable, although macroeconomic uncertainty has increased somewhat.”

Gendron expects sales of between $1.85 billion and $1.95 billion and earnings per share of between $2.20 and $2.35 for fiscal 2012, he said.

Shares of Woodward, which trades on the Nasdaq, lost 1.1 percent to close at $40.43 on Monday.