Woodward Announces Preliminary Fiscal Third Quarter Results, Revises Full Year Outlook and Schedules Third Quarter Earnings Release and Conference Call
Woodward, Inc. (NASDAQ: WWD) today announced preliminary results for the third fiscal quarter of 2012 as well as revised guidance for the full fiscal year.
Net sales are expected to be approximately $460 million for the third fiscal quarter of 2012. Fully diluted earnings per share for the third fiscal quarter of 2012 are expected to be approximately $0.40 per share, reflecting a third quarter 2012 effective tax rate of approximately 25 percent.
Woodward's Aerospace segment sales and earnings came in below expectations for the quarter driven by ERP system-related issues that have been addressed, lower defense sales, and a lower growth rate than anticipated in commercial aftermarket sales.
The Aerospace segment has been awarded a substantial number of significant new system programs, as previously announced. Many of the programs have expanded more than anticipated in both content and complexity, requiring increased new product development and production process investments. This increased investment coupled with lower sales volumes created unanticipated earnings pressure.
The Energy segment experienced both sales and related earnings growth over the prior year quarter, although they were also slightly below our expectations.
Therefore, in light of macroeconomic uncertainty and the issues identified in the third quarter of fiscal 2012, the company has revised its outlook for the 2012 full fiscal year. Net sales are now expected to be between $1.85 to $1.90 billion. Fully diluted earnings per share for the 2012 full fiscal year are now anticipated to be between $1.90 to $2.00 per share. The full year 2012 effective tax rate is anticipated to be approximately 29.5 percent.
The outlook for the full year reflects a significant sequential increase in both sales and earnings from the third quarter of 2012 based on anticipated improvement in operational performance and order volumes for the fourth quarter.
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