FY2021 10-K Document - FINAL 11 15 21 - Flipbook - Page 33
Table of Contents
SEGMENT OUTLOOK
(dollars in millions)
Net sales:
Aircraft Controls
Space and Defense Controls
Industrial Systems
2022
$
$
Operating profit:
Aircraft Controls
Space and Defense Controls
Industrial Systems
$
$
Operating margin:
Aircraft Controls
Space and Defense Controls
Industrial Systems
Net earnings
Diluted earnings per share
$
2021
1,245
880
910
3,035
$
126
101
86
313
$
10.1
11.5
9.5
10.3
2022 vs. 2021
$
%
Variance
Variance
$
$
%
%
%
%
178
$5.30 - $5.70
1,161
799
892
2,852
$
97
88
86
271
$
8.3
11.1
9.6
9.5
$
157
$
4.87
$
$
84
81
18
183
7%
10%
2%
6%
29
13
—
42
30%
15%
—
16%
%
%
%
%
2022 Outlook – We expect higher sales and general recovery across all segments to drive an increase in net sales in
2022. This growth is anticipated to be led by a recovery of legacy and recently acquired programs within commercial
aircraft. We also expect increased Space and Defense sales, due mostly to higher amounts of activity in advanced
space missions and satellites. In addition, we expect a modest sales recovery in Industrial Systems. We expect
operating margin will increase due to operational improvements within all segments, combined with the absence of
restructuring and impairment charges from 2021. Net earnings in 2022 are expected to benefit from the incremental
operating margin, while holding our non-operating expense levels as a percentage of sales in line with 2021. We
expect diluted earnings per share will range between $5.30 and $5.70, with a midpoint of $5.50, reflecting the
continued uncertainty from the COVID-19 environment.
2022 Outlook for Aircraft Controls – In 2022, within commercial aircraft programs, we anticipate an increase in
sales in our legacy OEM programs, a full year of the Genesys acquisition, combined with general recoveries within
business jets and commercial aftermarket programs. We also expect military sales will increase driven by both OEM
and aftermarket programs, spread across helicopters, funded development programs, Genesys and F-35 aftermarket,
which will offset expected declines in F-35 OEM sales. We expect operating margin will increase in 2022 due to
increased sales volumes and the continuation of a more favorable sales mix driven by military OEM and aftermarket
programs.
2022 Outlook for Space and Defense Controls – We expect 2022 sales in Space and Defense Controls will
increase in both of our markets. Within our defense market, we expect higher sales across both U.S. and foreign
programs, primarily from our new turret program, and growth in defense component sales. We expect sales in our
space market to increase as well, driven by higher sales from advanced missions and satellites, partially offset by the
wind down of some of our launch program sales. We expect operating margin will increase in 2022 resulting from the
incremental margin from higher sales volume, in addition to the absence of charges from portfolio refinement and
product line sales from 2021.
2022 Outlook for Industrial Systems – We expect a similar level of sales in 2022 as compared to 2021. In 2022, we
anticipate strong sales within our medical components business, led by increased orders for sleep therapy products,
as compared to 2021. We expect a modest sales increase in the simulation and test markets as they continue to
recover from the effects of COVID-19. Additionally, we expect sales to be relatively unchanged in our industrial
automation programs as global capital investment activity stabilizes. We expect operating margin will remain relatively
unchanged in 2022 as compared to 2021, due to ongoing footprint rationalization activities and new product
investments.
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