10-K FY 2022 FINAL MOOG Inc - Flipbook - Page 34
Table of Contents
SEGMENT OUTLOOK
(dollars in millions)
Net sales:
Aircraft Controls
Space and Defense Controls
Industrial Systems
2023
$
$
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
$
2022
1,330
930
915
3,175
$
137
115
96
348
$
10.3
12.4
10.5
11.0
2023 vs. 2022
$
%
Variance
Variance
$
$
%
%
%
%
182
$5.50 - $5.90
1,256
872
907
3,036
$
124
87
72
283
$
9.8
10.0
8.0
9.3
$
155
$
4.83
$
$
74
58
8
139
6%
7%
1%
5%
13
28
24
65
11%
32%
33%
23%
%
%
%
%
2023 Outlook – We expect higher sales in 2023, driven by continued market recoveries in commercial OEM and
industrial programs and by investments in new products across our segments. However, expected weaker foreign
currencies and the lost sales associated with our divestitures in 2022 will moderate our sales growth. We expect
operating margin will increase due to operational improvements within all segments, combined with the absence of
charges related to restructuring, impairments and losses associated with the sales of businesses in 2022. Excluding
these charges, we also expect adjusted operating margin will increase. Net earnings in 2023 are expected to benefit
from the incremental operating margin, which we expect to be partially offset by higher interest expenses due to the
expected higher interest rates on our outstanding debt balances. We expect diluted earnings per share will range
between $5.50 and $5.90, with a midpoint of $5.70.
2023 Outlook for Aircraft Controls – In 2023, we anticipate sales increases across all of our commercial OEM
programs as the commercial aircraft market recoveries continue and as our customers match the increasing demand
with increased orders. We also anticipate a slight sales increase across our military programs as higher activity on
funded development programs, the F-35 program and foreign military sales are mostly offset by lower legacy
programs. We expect operating margin in 2023 will increase slightly as improved factory utilization from the higher
sales volume is partially offset by the absence of 2022's favorable sales mix in commercial aftermarket.
2023 Outlook for Space and Defense Controls – In 2023, we anticipate sales increases in our space programs
from the continued higher activity for integrated space vehicles programs and for our launch vehicle programs.
Excluding the impact of lost sales associated with our security business divestiture, we expect sales increases across
our defense programs, primarily driven by the continued production ramp of our RIwP program and by defense
components programs. We expect operating margin will increase in 2023 resulting from the incremental margin from
higher sales volume, in addition to the absences of charges from portfolio refinements, our business sale and our
incremental costs associated with our constrained supply chain.
2023 Outlook for Industrial Systems – In 2023, we anticipate sales increases across our markets, excluding an
expected negative impact from continued weaker foreign currencies relative to the U.S. Dollar, and excluding the lost
sales associated with our sonar business divestiture. The underlying organic sales growth is expected primarily in our
flight simulation products, driven by the continued demand for flight training simulators, and in our medical device
products. We expect operating margin will increase in 2023 resulting from the higher sales volumes and due to the
absence of charges from our portfolio refinements, impairments and business sale.
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