10-K FY 2022 FINAL MOOG Inc - Flipbook - Page 31
Table of Contents
SEGMENT RESULTS OF OPERATIONS
Operating profit, as presented below, is net sales less cost of sales and other operating expenses, excluding interest
expense, equity-based compensation expense, non-service pension expense and other corporate expenses. Cost of
sales and other operating expenses are directly identifiable to the respective segment or allocated on the basis of
sales, manpower or profit. Operating profit is reconciled to earnings before income taxes in Note 21 - Segments, of
Item 8, Financial Statements and Supplementary Data, of this report.
Aircraft Controls
(dollars in millions)
Net sales - military aircraft
Net sales - commercial aircraft
Operating profit
Operating margin
2022
745
511
$ 1,256
$ 124
9.8 %
$
2021
782
379
$ 1,161
$
97
8.3 %
$
2020
721
485
$ 1,206
$
35
2.9 %
$
2022 vs. 2021
$
%
Variance
Variance
$
(37)
(5%)
132
35%
$
95
8%
$
27
28%
2021 vs. 2020
$
%
Variance
Variance
$
61
8%
(105)
(22%)
$
(45)
(4%)
$
62
179%
Aircraft Controls' net sales increased in 2022 compared to 2021, driven primarily by recoveries from the COVID-19
pandemic in our commercial OEM and aftermarket aircraft programs.
In 2022 compared to 2021, sales increased $70 million in our commercial OEM programs. We benefited from higher
sales volumes across our main programs, increasing sales $26 million for our business jets programs, $21 million for
our Boeing programs and $16 million for our Airbus programs. Additionally, in 2022 compared to 2021, sales
increased $62 million in our commercial aftermarket programs. Higher spares volumes and repair demand, reflecting
recovering flight-hour levels, increased sales a combined $30 million across our 787 and A350 programs. Also, sales
increased an additional $18 million on our 787 aftermarket program due to one-time, retrofit sales.
Partially offsetting these sales increases in 2022 compared to 2021, was a $34 million sales decrease in our military
OEM programs. The timing of orders and delayed material receipts on the F-35 program decreased sales $29 million,
lower volumes for foreign military programs decreased sales $19 million and the sales associated with our divested
NAVAIDS business decreased sales $17 million. Partially offsetting these reductions were $16 million of higher sales
across our helicopter programs, $5 million of Genesys sales and $4 million of increased activity on funded
development programs. Additionally in 2022 compared to 2021, sales decreased $2 million for our military aftermarket
programs. Lower orders for the F-18 program and supply chain constraints affecting other legacy aircraft programs
was mostly offset by higher spares and repair activity on the V-22 and the F-15 programs.
Operating margin increased in 2022 compared to 2021. Included in this increase was the $16 million gain associated
with the divestiture of our NAVAIDS business. This gain was offset by $15 million of impairment and $4 million of
restructuring expenses, in our second quarter of 2022, as we resized our business and continued our portfolio
shaping activities. The benefits from these actions have averaged, and are expected to average, $3 million per
quarter. Excluding both the gain and charges, adjusted operating margin in 2022 was 10.1%. The adjusted margin
increase as compared to 2021 was driven by a favorable sales mix in commercial aftermarket, $11 million of reduced
research and development spend and incremental margin from higher commercial sales volumes.
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