10-K FY 2022 FINAL MOOG Inc - Flipbook - Page 32
Table of Contents
Space and Defense Controls
(dollars in millions)
Net sales
Operating profit
Operating margin
$
$
2022
872
87
10.0 %
$
$
2021
799
88
11.1 %
$
$
2020
770
102
13.2 %
2022 vs. 2021
$
%
Variance
Variance
$
73
9%
$
(1)
(2%)
2021 vs. 2020
$
%
Variance
Variance
4%
$
29
$
(13)
(13%)
Space and Defense Controls' net sales increased in 2022 compared to 2021, driven by continued growth within both
our defense and space markets.
In 2022 compared to 2021, sales increased $68 million in our defense market. The main driver was the production
ramp on our RIwP turret program, which increased sales $69 million. Also, sales for our defense components
programs increased $11 million; however, this was offset by $6 million of lower international defense vehicle sales due
to continued supply chain constraints and by $5 million of lower naval system sales due to the wind-down of
development projects.
Additionally in 2022 compared to 2021, sales increased $5 million in our space market. Higher activity on our
integrated space vehicle and advanced mission programs, and on our satellite avionics programs increased sales $24
million and $13 million, respectively. These increases were mostly offset by the wind-down of hypersonic development
activity and by lower legacy launch vehicle sales.
Operating margin decreased in 2022 compared to 2021. Throughout 2022, we incurred $4 million of restructuring and
inventory write-down charges as we continued our portfolio refinement activities and resized our business. We also
incurred a $4 million loss associated with the divestiture of a security business. In the last quarter of 2021, we incurred
$3 million of similar portfolio refinement charges. Excluding these charges in both years, the adjusted operating
margins were 10.9% in 2022 and 11.4% in 2021. The resulting decline in adjusted operating margin was due to
additional costs associated with our constrained supply chain and due to the COVID-19 related direct labor
inefficiencies we experienced in the first half of 2022.
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