Good Earnings from Moog, Not So Good from Ford

More earnings news for our Buy List. This morning, Moog ($MOG-A) reported earnings of 80 cents per share. That’s six cents more than estimates. Moog reiterated its full-year guidance of $3.31 per share. Note that Moog’s fiscal year ends in September.

“We are off to a great start for fiscal 2012,” said John Scannell, CEO. “Our first quarter sales are up nicely and earnings per share were better than our forecast. Sales in four of our five segments were up in the quarter as were profits. It is a great foundation for a year in which we anticipate we will deliver record sales and a 12% increase in earnings per share over fiscal 2011.”

Ford ($F) reported earnings of 20 cents per share which was five cents below estimates.

Ford earned $13.6 billion in the fourth quarter, due to a decision to move deferred tax assets back onto its books. Without that change, the company’s pretax operating profit totaled $1.1 billion, or 20 cents per share, missing analysts’ forecasts of 25 cents.

The company lost money in Europe and Asia in the fourth quarter. But its North American operating profit rose 33 percent to $889 million.
“The quarter was really driven by North America,” Chief Financial Officer Lewis Booth said.

Booth also said November flooding in Thailand, which affected its parts suppliers, had a greater impact than the company expected. Ford lost 34,000 units of production in Thailand and in South Africa, which relies on Thai-made parts. He said the company also saw higher costs for steel and other commodities. Ford spent $2.3 billion more on commodities in 2011 than the prior year, or $100 million more than it had forecast.

Europe’s debt crisis weighed on car sales in that region.

For the full year, the U.S.-based company made $20.2 billion, or $4.94 per share. Without the accounting gain, it earned $8.76 billion, or $1.51 per share, its highest operating profit since 1999. Full year revenue rose 13 percent to $136.3 billion.

The shares look like they’re going to open about 5% lower this morning.

Posted by on January 27th, 2012 at 8:53 am

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