Woodward closes out difficult fiscal year with earnings beat

FORT COLLINS — Aerospace parts manufacturer Woodward Inc. (Nasdaq: WWD) beat analyst expectations for the final quarter of its fiscal year despite several months of dire circumstances for air travel.

The Fort Collins-based Woodward posted revenues of $531 million and an adjusted earnings-per-share figure of 89 cents Thursday afternoon, beating Wall Street consensus estimates by $10.11 million and 32 cents, respectively, according to data from finance site Seeking Alpha.

In a statement, CEO Tom Gendron said the company had to realign itself to the new realities of the market it serves due to the pandemic. While commercial air traffic remained low, Woodward partially offset those losses with a relatively strong showing in its defense sales.

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However, the company said its industrial segment focusing on wind turbines and natural gas engines suffered from the pandemic and low oil prices.

The company’s fiscal year 2020 was marred with difficulties mainly brought on by the loss of global air traffic that reverberated across the aerospace industry. While it posted net earnings of $254 million for the period, that figure is down significantly from the $314 million in profits it made in the fiscal year prior.

“Fiscal year 2020 marked one of the most volatile periods in the global macroeconomic landscape,” Gendron said in a statement. “Our team acted swiftly to focus on diligent cash management and liquidity as well as aligning our cost structure to the current COVID-19 environment, which significantly impacted both of our segments.”

The company was forced to cancel a $6 billion merger of equals with materials maker Hexcel Corp. (NYSE: HXL) and laid off or furloughed up to 15% of its staff in the U.S. to conserve cash.

It also removed former chief financial officer Jack Thayer in April and announced plans to move 300 employees based in its Loveland offices to either the headquarters in Fort Collins or a newly-acquired location in Windsor.

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