Woodward reports slight sales increase, drop in net earnings

FORT COLLINS — Woodward Inc. (Nasdaq: WWD) reported a 1% increase in net sales over 2021 in its quarterly report for the second quarter of 2022. The company reported $581 million in net sales for the three month period ending in March 2021 and was able to improve its net sales to $586 million over the same period in 2022.

While the Fort Collins-based technology and aerospace company saw a slight increase in its sales, net earnings were down nearly 30% over the same period of 2021. Net earnings went from $68 million to $48 million year-to-year, with per-share earnings dropping from $1.08 to 77 cents.

Woodward reported net cash from operating activities at $50 million for the six month period ending March 31, 2022, down from $218 million in the same period last year. However, cash flows from investing and financing activities are up year-over-year for the quarter.

Woodward also reported reducing its debt to $729 million at the end of the quarter, down from the $737 million the company faced this time last year.

Thomas Gendron, Woodward chair and CEO, pointed to supply chain disruptions and inflation as some of the causes behind the company’s decrease in earnings year-over-year.

“We continue to see recovery across most of our end markets; however, ongoing industry-wide COVID-19 related disruptions, including supply chain constraints and labor shortages, as well as higher inflation, provided greater than anticipated pressure on our results in the second quarter,” Gendron said in a statement to shareholders.

The report was released after the market closed May 2. Shares were trading down 7.7% as the closing bell rang May 3.

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