10-K FY 2022 FINAL MOOG Inc - Flipbook - Page 33
Table of Contents
Industrial Systems
(dollars in millions)
Net sales
Operating profit
Operating margin
$
$
2022
907
72
8.0 %
$
$
2021
892
86
9.6 %
$
$
2020
909
80
8.8 %
2022 vs. 2021
$
%
Variance
Variance
$
15
2%
$
(14)
(16%)
2021 vs. 2020
$
%
Variance
Variance
$
(17)
(2%)
$
6
7%
Industrial Systems' net sales increased in 2022 compared to 2021 despite the adverse impacts of foreign currencies.
Weaker foreign currencies, primarily the Euro and the Japanese Yen relative to the U.S. Dollar, decreased sales $33
million in 2022 when compared to 2021. Excluding the impact of foreign currencies, sales increased in all of our
markets except for medical.
In 2022 compared to 2021 net sales increased $10 million in our simulation and test market driven mostly by
increased demand for flight training simulators. Sales also increased $8 million in our industrial automation market
driven by higher demand for factory automation equipment, particularly in Europe, and sales increased $5 million in
our energy market. These increases were partially offset by $8 million of lower sales for medical devices due both to
supply chain constraints and as the post COVID-19 demand surge winds-down for our medical pumps and sets.
Operating margin decreased in 2022 compared to 2021. Throughout 2022, we incurred $8 million of restructuring,
inventory write-downs and asset impairment charges. These charges were a result of our continued portfolio
refinement activities as we resized our business, and from assets associated with Russian actions in Ukraine. In our
fourth quarter of 2022, we also incurred a $15 million loss associated with the divestiture of a sonar business, which
was partially offset by a $9 million gain on the sale of a building. In the last quarter of 2021, we incurred $4 million of
similar portfolio refinement charges. Excluding these charges in both years, the adjusted operating margins were
9.5% in 2022 and 10.1% in 2021. The resulting decline in adjusted operating margin was due to additional costs and
inflated pressures associated with our constrained supply chain.
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