Woodward’s aerospace sales decline by 39%

FORT COLLINS — Woodward Inc. (Nasdaq: WWD) reported deep dives in earnings for the last quarter after the COVID-19 pandemic and turbulence in the civilian aerospace market brought an end to its $6 billion merger with Hexcel Corp. (NYSE: HXL). The Fort Collins maker of airplane and windmill parts reported sales of $524 million and an earnings per share figure of 61 cents in the last calendar quarter, down from $752 million and $1.02 per share from the same period last year. However, those beat Wall Street consensus estimates by $11.23 million and 28 cents per share respectively, according to finance site Seeking Alpha. The company’s net profit was $38 million for the period. Woodward’s aerospace segment, by far its largest, suffered a 39% decrease in sales as much of the world avoids air traffic and travel in general. According to the latest data from the U.S. Bureau of Transportation Statistics, the amount of mileage flown by paying passengers dropped from 86.2 million last April to just 2.89 million this year. The drop-off in traffic led to many commercial airlines pulling back on plane purchases to save cash, reverberating across the aerospace supplier ecosystem. “Aerospace continues to benefit from a strong defense market, which softened the significant impact of the rapid reduction in passenger traffic and aircraft production rates,” CEO Tom Gendron said in a prepared statement. Soon into the pandemic, Woodward and Hexcel terminated their plans to become a $6 billion supplier in the aerospace industry, and Woodward began culling its workforce by 15% in North America. The company’s industrial segment fared somewhat better, seeing a 14% decrease in sales. Woodward declined to offer revenue guidance for the rest of the year due to “severe volatility” making short-term forecasting difficult. However, it expects similar results when it reports during the next earnings season. Woodward’s stock closed at $77.50, Thursday, up 74 cents, or 0.96%.
Source: BizWest