Woodward reports $3 million 2Q earnings decline
FORT COLLINS – Slower growth in China and the impacts of low oil and gas prices led to a second-quarter earnings decline of roughly $3 million for Fort Collins-based manufacturer Woodward Inc. (Nasdaq: WWD).
Woodward officials on Tuesday afternoon reported the company’s fiscal results for the period ending March 31.
Woodward’s net income came in at $40.8 million, or 65 cents per diluted share, for the company’s second fiscal quarter, compared with $43.9 million, or 66 cents per diluted share for the same period a year earlier.
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Sales declined 3 percent to $479 million, with gains in the company’s aerospace segment offset by an 11 percent slide for Woodward’s industrial segment.
Woodward makes components and control-system solutions geared toward energy efficiency for the aerospace and industrial industries.
A depressed market for natural-gas trucks in Asia continues to drive part of the decreased profitability of Woodward’s industrial segment along with commodity prices in the energy industry, although company officials said strength in the industrial turbomachinery aftermarket helped offset some of those declines.
Woodward’s aerospace segment, meanwhile, saw sales grow 3 percent to $291 million and earnings increase by 11 percent thanks primarily to strength in commercial aftermarket and defense sales.
“For the second half of the fiscal year, we continue to expect strong aerospace results and improving performance in our industrial segment, although significant challenges remain,” chief executive Thomas Gendron said in the company’s earnings report. “For fiscal 2016, net sales are still expected to increase one to two percent over fiscal 2015, and earnings per share are still expected to be between $2.75 and $2.95.”
