Moog Inc. executives have reason to feel upbeat these days:
• The Elma-based motion equipment manufacturer is about to begin work on development of a new Army helicopter, a program that could last for decades.
• Moog is embarking on an expansion of its facilities, including a $77 million project on its campus, to accommodate its growing production needs.
• And the company just posted its highest sales for any quarter in its history, at $837 million for its fiscal second quarter. Each of its three business segments reported sales increases from a year ago.
“We’re firing on all cylinders, I’d say, in terms of generating revenue,” said Pat Roche, Moog’s CEO, as the company released its earnings on Friday.
Alongside those immediate results, Moog is taking steps with long-range plans in mind.
Moog is part of the Bell Textron team chosen to build a new helicopter for the Army that will eventually replace the Black Hawk. A rival bidder protested the selection, but a federal agency rejected the protest, clearing the way for Bell Textron to get to work. The first task is developing a helicopter, to prepare it for production.
“The development activity will stretch on for three or four years, bringing us up to the late 2020s,” Roche said. “You get into volume production from 2030s through 2052. It’s really significant for the business overall. It’s about the same scale as the joint strike fighter platform that we are a major contributor to.”
Moog expects to generate $10 million in sales in its current fiscal year from the helicopter program, said Jennifer Walter, the chief financial officer. The company had initially projected the figure at $25 million, but the timeline for kicking off the program was delayed by the rival bidder’s protest.
Another significant program for Moog involves building a turret system for Army vehicles, a project that has now reached the full production stage. It’s a $250 million contract. Moog is working on securing…
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