10-K FY 2022 FINAL MOOG Inc - Flipbook - Page 29
Table of Contents
CONSOLIDATED RESULTS OF OPERATIONS
The following is a discussion of our results of operations in 2022 compared to 2021. A discussion of our 2021 results
of operations compared to 2020 results can be found within Part II, Item 7. Management's Discussion and
Analysis within our 2021 Annual Report on Form 10-K, filed with the Securities and Exchange Commission
on November 15, 2021.
2022 vs. 2021
(dollars and shares in millions, except per
share data)
Net sales
$
Gross margin
Research and development expenses
$
Selling, general and administrative
expenses as a percentage of sales
Interest expense
$
Asset impairment
$
Restructuring expense
$
Loss on sale of businesses
$
Gain on sale of building
$
Pension settlement
$
Other
$
Effective tax rate
Net earnings
$
Diluted average common shares
outstanding
2022
2021
2020
3,036
27.0 %
110
$ 2,852
27.2 %
$ 126
$ 2,885
25.8 %
$ 111
14.8 %
37
18
10
3
(9)
—
1
23.6 %
155
14.4 %
34
2
—
2
—
—
(3)
22.8 %
157
13.8 %
39
38
11
—
—
121
21
(69.9)%
9
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
Variance
2021 vs. 2020
%
Variance
$
Variance
%
Variance
$
184
6%
$
(33)
(1%)
$
(16)
(13%)
$
15
13%
$
$
$
$
$
$
$
3
17
10
2
(9)
—
4
8%
n/a
n/a
118%
n/a
—%
(146%)
$
$
$
$
$
$
$
(5)
(36)
(11)
2
—
(121)
(23)
(13%)
(96%)
(100%)
n/a
n/a
(100%)
(112%)
$
(2)
(1%)
$
148
—
(1%)
$
4.59
32
32
33
Diluted earnings per share
$ 4.83
$ 4.87
$ 0.28
$
(0.04)
(1%)
Total backlog
$ 5,200
$ 4,800
$ 2,600
$
400
9%
Twelve-month backlog
$ 2,300
$ 2,100
$ 1,700
$
200
10%
(1)
n/a
(3%)
n/a
$ 2,200
88%
$
24%
400
Net sales increased in 2022 compared to 2021 across all of our segments, particularly in our commercial aircraft
programs and our defense programs. Also in 2022, weaker foreign currencies, primarily the Euro, the British Pound
and the Japanese Yen relative to the U.S. Dollar, decreased sales $44 million compared to 2021.
Gross margin decreased slightly in 2022 compared to 2021. The additional costs associated with our constrained
supply chain and $4 million of inventory write-down charges together offset the incremental margin from higher sales
volumes across all three segments.
Research and development expenses decreased in 2022 compared to 2021. Aircraft Controls reduced research and
development spend by $11 million primarily due to the redeployment of engineering activity to funded development
programs. Industrial Systems also reduced research and development spend by $3 million.
Selling, general and administrative expense as a percentage of sales increased in 2022 compared to 2021. Across all
of our segments, we had higher expenses to support customer interactions as we emerged from COVID-19
lockdowns, as well as increased investments in operations.
Interest expense increased in 2022 compared to 2021 due to higher interest rates on our outstanding debt throughout
the year.
In 2022, we incurred charges for asset impairments and restructuring in all of our segments as we continued our
business resizing and portfolio shaping activities, primarily in the second quarter of 2022. The benefits associated with
these activities have averaged, and are expected to average, $4 million per quarter. Also, the first quarter of 2022
included a $16 million gain from the sale of our NAVAIDS business, and the fourth quarter of 2022 included a $9
million gain on the sale of a building. However, these gains were offset by losses associated with two business sales
in Industrial Systems and in Space and Defense Controls in the fourth quarter of 2022, totaling $19 million.
Other in 2021 included a $6 million pension curtailment gain associated with the termination of a foreign pension plan,
which did not repeat in 2022.
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