Moog Acquires Wind Energy Firm
January 30 2009 - 4:11PM
PR Newswire (US)
EAST AURORA, N.Y., Jan. 30 /PRNewswire-FirstCall/ -- Moog Inc.
(NYSE: MOG.ANYSE:andNYSE:MOG.B) announced today that it has
acquired 70% of the stock of Insensys Ltd. For 11 million pounds
Sterling in cash. As part of the transaction, Moog has an option to
purchase the remaining 30% within one year. Insensys is a leading
supplier of pitch control and rotor blade monitoring systems for
wind turbines. Insensys had 2008 revenues of 5.2 million pounds.
Pitch control systems adjust the angle of blades to control load
and improve the efficiency of the turbine. Precise monitoring
extends the turbine's life, improves safety and reduces maintenance
costs. "The acquisition of Insensys strengthens our technology
product portfolio, domain expertise and relationships with
customers in the alternative energy sector," said Steve Huckvale,
President of Moog's International Group. "The use of real-time data
improves turbine performance and lowers a wind turbine's total cost
of ownership. Fiber optic sensing systems from Insensys add
advanced measurement capabilities and data intelligence that will
be a differentiator for turbine manufacturers, blade manufacturers
and wind park operators." Sales for Insensys will be approximately
7 million pounds for the balance of Moog's 2009 fiscal year. This
acquisition is expected to be neutral to Moog's earnings per share
for the year ending October 3, 2009 due to first year purchase
accounting adjustments. Moog Inc. is a worldwide designer,
manufacturer, and integrator of precision control components and
systems. Moog's high-performance systems control military and
commercial aircraft, satellites and space vehicles, launch
vehicles, missiles, automated industrial machinery, marine and
medical equipment. Additional information can be found at
http://www.moog.com/. Cautionary Statement Information included
herein or incorporated by reference that does not consist of
historical facts, including statements accompanied by or containing
words such as "may," "will," "should," "believes," "expects,"
"expected," "intends," "plans," "projects," "estimates,"
"predicts," "potential," "outlook," "forecast," "anticipates,"
"presume" and "assume," are forward-looking statements. Such
forward-looking statements are made pursuant to the safe harbor
provisions of the Private Securities Litigation Reform Act of 1995.
These statements are not guarantees of future performance and are
subject to several factors, risks and uncertainties, the impact or
occurrence of which could cause actual results to differ materially
from the expected results described in the forward-looking
statements. These important factors, risks and uncertainties
include (i) fluctuations in general business cycles for commercial
aircraft, military aircraft, space and defense products, industrial
capital goods and medical devices, (ii) our dependence on
government contracts that may not be fully funded or may be
terminated, (iii) our dependence on certain major customers, such
as The Boeing Company, for a significant percentage of our sales,
(iv) the possibility that the demand for our products may be
reduced if we are unable to adapt to technological change, (v)
intense competition which may require us to lower prices or offer
more favorable terms of sale, (vi) our indebtedness which could
limit our operational and financial flexibility, (vii) the
possibility that new product and research and development efforts
may not be successful which could reduce our sales and profits,
(viii) increased cash funding requirements for pension plans, which
could occur in future years based on assumptions used for our
defined benefit pension plans, including returns on plan assets and
discount rates, (ix) a write-off of all or part of our goodwill,
which could adversely affect our operating results and net worth
and cause us to violate covenants in our bank agreements, (x) the
potential for substantial fines and penalties or suspension or
debarment from future contracts in the event we do not comply with
regulations relating to defense industry contracting, (xi) the
potential for cost overruns on development jobs and fixed price
contracts and the risk that actual results may differ from
estimates used in contract accounting, (xii) the possibility that
our subcontractors may fail to perform their contractual
obligations, which may adversely affect our contract performance
and our ability to obtain future business, (xiii) our ability to
successfully identify and consummate acquisitions, and integrate
the acquired businesses and the risks associated with acquisitions,
including that the acquired businesses do not perform in accordance
with our expectations, and that we assume unknown liabilities in
connection with the acquired businesses for which we are not
indemnified, (xiv) our dependence on our management team and key
personnel, (xv) the possibility of a catastrophic loss of one or
more of our manufacturing facilities, (xvi) the possibility that
future terror attacks, war or other civil disturbances could
negatively impact our business, (xvii) that our operations in
foreign countries could expose us to political risks and adverse
changes in local, legal, tax and regulatory schemes, (xviii) the
possibility that government regulation could limit our ability to
sell our products outside the United States, (xix) product quality
or patient safety issues with respect to our medical devices
business that could lead to product recalls, withdrawal from
certain markets, delays in the introduction of new products,
sanctions, litigation, declining sales or actions of regulatory
bodies and government authorities, (xx) the impact of product
liability claims related to our products used in applications where
failure can result in significant property damage, injury or death
and in damage to our reputation, (xxi) the possibility that
litigation may result unfavorably to us, (xxii) our ability to
adequately enforce our intellectual property rights and the
possibility that third parties will assert intellectual property
rights that prevent or restrict our ability to manufacture, sell,
distribute or use our products or technology, (xxiii) foreign
currency fluctuations in those countries in which we do business
and other risks associated with international operations, (xxiv)
the cost of compliance with environmental laws, (xxv) the risk of
losses resulting from maintaining significant amounts of cash and
cash equivalents at financial institutions that are in excess of
amounts insured by governments, (xxvi) the inability to utilize
amounts available to us under our credit facilities given
uncertainties in the credit markets and (xxvii) our customer's
inability to pay us due to adverse economic conditions or their
inability to access available credit. The factors identified above
are not exhaustive. New factors, risks and uncertainties may emerge
from time to time that may affect the forward-looking statements
made herein. Given these factors, risks and uncertainties,
investors should not place undue reliance on forward-looking
statements as predictive of future results. We disclaim any
obligation to update the forward-looking statements made in this
report. DATASOURCE: Moog Inc. CONTACT: Ann Marie Luhr, Moog Inc.,
+1-716-687-4225 Web Site: http://www.moog.com/
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