Moog Inc.

Moog Incorporated
Public
Traded as NYSE: MOG.A, MOG.B
Industry Aerospace, Defense, Industrial Automation, and Motion Control
Founded 1951
Headquarters East Aurora, New York
Key people
 Robert Brady, Chairman
John Scanell, CEO
Don Fishback, CFO
Products Hydraulic and Electronic Control Systems
Revenue Increase US$2,470MM [1]
Number of employees
 10,976 [2]
Website www.moog.com

Moog is an American worldwide designer and manufacturer of motion and fluid controls and control systems for applications in aerospace, defense, industrial and medical device markets. Their products and systems include military and commercial aircraft flight controls, satellite positioning controls, controls for steering tactical and strategic missiles, thrust vector controls for space launch vehicles and controls for positioning gun barrels and automatic ammunition loading for military combat vehicles. They are also used in industrial applications, including injection molding machines for the plastics markets, metal forming, power generating turbines, simulators used to train pilots and certain medical applications. They operate under five segments; Aircraft Controls, Space and Defense Controls, Industrial Controls, Components, Surveillance Camera Systems[3] and Medical Devices. Principal manufacturing facilities are located in the United States, including facilities in New York, California, Utah, Virginia, North Carolina, Georgia and Pennsylvania, and in Germany, Italy, England, Japan, the Philippines, Ireland, Costa Rica and India.

The company was founded in 1951 by Bill Moog, Art Moog, and Lou Geyer. The company is headquartered in East Aurora, New York, a suburb of Buffalo, New York and has sales, engineering, and manufacturing facilities in twenty-six countries.[4]

History

Bill Moog

In April 1950 Bill Moog (cousin of Robert Moog, inventor of the Moog synthesizer) applied for a patent for the electrohydraulic servo valve (later called a "Moog Valve"), a device to control hydraulic pressure for fine control of actuators. The US patent 2625136 was issued in January 1953.[5] Bill Moog passed away in 1997 aged 82.

1950s

In July 1951 Bill Moog, Art Moog and Lou Geyer raised $3,000 to open "Moog Valve". The U.S. government was eager to buy valves that could improve its guided missile system. Bendix placed the company's first order for four valves. A Philco subcontractor ordered seventy-five more before the first four were finished and by the end of the first year, gross sales reached $200,000 and the company had produced over 500 valves. Moog quickly became known in the guided missile field, and within a short time the company received its first aircraft order. By 1955, the company was supplying Douglas Aircraft, North American Aviation, Convair and Boeing. Gross sales had grown over $2,000,000 and its valves were being used on rudder controls for the Navy's jet fighters.

Moog had to start manufacturing their own parts, because the company's missile and aircraft backlog was growing too fast. Bill Moog also knew that expansion into the industrial market was critical to diversify the company's technology and to reduce its dependence on government spending. Wiesner-Rapp was the first customer to use Moog's industrial valves on an automatic tool.

By 1959, total sales had grown to over $10 million and employees numbered just shy of 700. Every U.S. intercontinental ballistic missile, including Atlas, Titan, and Jupiter were guided by Moog's controls. The company's valves were also being used on Convair's F-106 and McDonnell's F-4 Phantom fighter. In less than ten years, the company's ever-growing team had become the undisputed leaders in the field of electrohydraulic servocontrols.

1960s

After a brief experiment with a licensee in the UK, the company began to open wholly owned subsidiaries. The first of these was in Germany in 1965, closely followed by an operation in England. This strategy was highly successful and made the Moog name well known in Europe. In the USA, Moog had participated in every manned space launch in the decade.

The company also gained a leadership role in liquid secondary injection controls, and began to manufacture mechanical feedback actuators. At the same time, Moog developed its Hydra-Point numerical control machining centers. At this time, Art Moog and Lou Geyer took the opportunity to retire from the company when it had revenues of more than $23 million and employees numbering 1,300.

1970s

In the 1970s the company planted Moog facilities in Japan, France, Italy, Sweden, Brazil and Australia. The military and aerospace business grew quickly. Fuelled by the F-15 Eagle, Trident missiles, and preliminary work on the Space Shuttle, the company's U.S. revenues were again dominated by defense spending. Moog also acquired Carleton Controls, a company that produced precision pneumatic pressure and flow control components used in space vehicles, aircraft, submarines and guided missiles.

1980s

In 1981, Moog assisted with the Space Shuttle orbiter Columbia. In addition, Moog supplied complete thrust vector control systems for the Peacekeeper missile and hardware for all three stages of Trident and three stages of the MX missile. Fortune magazine named Moog's servovalve one of the products that the United States makes best.

Overseas, Moog continued its expansion, doubling the sizes of its existing facilities and opening new operations in Ireland, Spain, the Philippines, Korea, India, Finland and Hong Kong.

Within the next ten-year span, their sales grew from $135 million in 1980 to $282 million in 1989. Despite this, the company suffered a significant financial setback in 1988. Cost estimates on a number of fixed price contracts for developing new technologies grew dramatically during the course of the year while at the same time, transitions from the programs' development phases to profitable production status were delayed. The combination caused the company to report a loss of nearly $14 million.

In the same year, Bill Moog went into semi-retirement at the age of 72, turning in his stock to the company in exchange for Moog's Industrial Controls Division (ICD). Leadership of Moog Inc. passed to Bob Brady, president of the company's Aerospace Group who had begun working with Moog in the 1960s. Bob Brady formed a new team that guided the company through the difficult last two years of the 1980s and into the 1990s, manoeuvering through changes that swallowed other aerospace and industrial corporations along the way.

1990s

Beginning the 1990s with sales just over $300 million, the company was faced with an uncertain U.S. defense budget and along with the fall of the Berlin Wall, the certainty of a recession overseas. It took two years for the full effect of these circumstances to impact the companies earnings. In 1992, the U.S. Congress decreased production on the B-2 and terminated production of the various other programs. As a result of these conditions, they suffered a 24% reduction in work force, and a 19% reduction in facilities, reporting a loss of nearly $7 million.

Even though the company was going through a difficult financial situation, they acquired AlliedSignals' actuation systems for $78 million and it proved successful. Two years later, its addition gave the company the resources to repatriate Moog Controls Inc., the former Industrial Division, spun off in 1988. Schaeffer Magnetics, Montek, Schenck Pegasus, and PerkinElmer (Wright Components), all in the U.S., came to be part of the corporation. On Nov 30, 1998, Moog Inc. completed the acquisition of Raytheon Aircraft Montek Company, a subsidiary of Raytheon Aircraft Corporation located in Salt Lake City, Utah. The sale price was approximately $160 million. Overseas, Ultra, Hydrolux, Microset, Vickers Electrics, Bosch Radial Pumps, Whitton and FCS Control Systems (producer of Simulation tables and digital test controllers), all from Europe, became part of the Moog family in the 1990s and early 2000s. New subsidiaries in Singapore and China increased the company's Pacific Rim presence.

Technology gained from these acquisitions included mechanical actuation through planetary gear trains for the maneuvering leading edges on aircraft. In the Industrial segment, Moog gained manifold technology, turbine controls, radial piston pumps and high voltage electric motion controls. In Space, it acquired antenna and solar array pointing mechanisms. These new capabilities gave the company access to a number of different markets.

The USN F/A-18E/F's flight controls were made by Moog. Also during this time, Moog provided hardware for the launch vehicles as well as for the steering controls on the satellites themselves. In addition, regulators for Hughes' electric propulsion feed systems went into production. Moog Controls returned and provided earnings growth and emphasis on controls for industrial gas turbines, training simulators and testing machines.

By the end of the decade, Moog more than doubled its annual revenues to $630 million.

Moog projects

Moog worked on the B-2 Bomber and was responsible for the flight control actuation system. Moog also contributed to the manufacture of flight simulators. Moog's design was adapted to form the Spider-Man ride at Universal Studios adventure theme park. Moog also worked on several space contracts and designed part of the liquid rocket engine propulsion systems on the Voyager space probes and provided thruster valves that steered the spacecraft. Moog also made servoactuators for four Space Shuttles.

Moog provided a control and motion system for the Wimbledon Centre Court retracting roof. This consisted of about 150 axes of AC servo-controlled electric actuators, AC servomotors, AC servodrives and the complete motion control system, including software. It was engineered by Moog's UK facility and was hailed a success, allowing the Centre Court's only night-time tennis performance in history.

Aircraft controls

The company's largest segment is Aircraft Controls which generates revenues from military and commercial aircraft in addition to aftermarket support. Moog designs, manufactures and integrates primary and secondary flight controls for a variety of commercial transports, supersonic fighters, multi-role military aircraft, business jets and rotorcraft.

Moog is working on several large development programs including the F-35 Joint Strike Fighter, Indian Light Combat Aircraft, Boeing 787 Dreamliner, Airbus A400M, A380 and the X-47 unmanned aerial vehicle. The company's military production programs include the F/A-18E/F Super Hornet, F-15 Eagle and V-22 Osprey. The commercial production programs include the full line of Boeing 7-series of aircraft. The latest addition to the list of major programs is the Airbus A350XWB.

Moog has worked on:

Space and Defense

Moog works on satellites and space vehicles in addition to various aspects of defense such as missiles. Moog develops motion and fluid control systems technology. For satellites, Moog develops chemical and electric propulsion systems and space flight motion controls. Launch vehicles and missile use Moog's steering and propulsion controls, and the Space Station uses its couplings, valves and actuators.

Moog has supplied assistance on the following:

Industrial

Moog provides a diverse range of services in this area. For the plastics and machinery market Moog designs, manufactures and integrates systems for all axes of injection and blow molding machines using both hydraulic and electric technology. In the power generation turbine market, Moog designs, manufactures and integrates control assemblies for fuel, steam and variable geometry control applications that include wind turbines. Metal forming markets use Moog designed and manufactured systems that provide control of position, velocity, force and other parameters. Heavy industry uses Moog's electrical and hydraulic servovalves for steel and aluminum mill equipment. For the material test markets, Moog supplies controls for automotive, structural and fatigue testing. The company's hydraulic and electromechanical motion simulation bases are used for the flight simulation and training markets. Other markets include material handling and testing, motorsport (including F1), carpet tufting, paper and lumber mills.

Components

In addition to the markets served by other departments, Components serves medical equipment markets. As a result of the acquisition of the Power and Data Technologies Group of the Kaydon Corporation in July 2005, Moog entered into the market of marine applications. Components has several other product lines that include the design and manufacture of electromechanical actuators, fiber optic modems, avionic instrumentation, optical switches and resolvers.

Medical devices

Medical Devices is Moog's newest segment, formed as a result of the acquisition of Curlin Medical, McKinley Medical, and Zevex International in 2006. Moog's primary products are electronic ambulatory infusion pumps and ambulatory enteral feeding pumps along with the necessary administration sets as well as disposable infusion pumps. Applications of these products include controlled delivery of fluids to the body, nutrition, post-operative pain management, regional anesthesia, chemotherapy and antibiotics. On January 23, 2009 Moog acquired the stock of Ethox International for $15.2 million in cash. Ethox is a Buffalo, NY based medical products manufacturer and service provider.

On July 1, 2013, Moog announced the sale of its Buffalo, New York operations of Ethox Medical to Dempsey Ventures for an undisclosed sum. Annual sales from this division are approximately $12 million. Ethox Buffalo employs 88 full-time employees. There is an after-tax non-cash loss of approximately $5 million, or about $0.11 per share, generated from this sale. This loss will be reflected in the Company's third quarter results for the period ended June 29, 2013 which will be reported in late July. Dempsey Ventures, based in Grand Rapids, Michigan, is a private equity firm focused on healthcare products. Its portfolio of companies in the anesthesia/respiratory space includes SunMed, Bay Medical and Ventlab. The Company also announced that it has engaged RBC Capital Markets LLC to assist with the strategic assessment of the remainder of its Medical Devices segment, including the possibility of divesting the entire segment. [6]

References

  1. ↑ Moog, Inc Investor Facts. moog.com, accessed July 22, 2013.
  2. ↑ . moog.com, accessed July 22, 2013.
  3. ↑ "Moog Videolarm CCTV Security Camera Systems / Housings, Enclosures, Domes / Wireless, IP, PoE Technologies, Video Surveillance". Decatur, GA, USA: Moog Videolarm. Retrieved 14 November 2011.
  4. ↑ Moog Historical Information. moog.com, accessed December 29, 2007.
  5. ↑ US Patent 2,625,136
  6. ↑ "Moog Announces Sale of Ethox Medical Buffalo Operations and Hiring of Advisor to Consider Strategic Alternatives for Medical Devices Segment". Moog.com. Retrieved 2013-12-09.

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