Moog making headway on military programs

The Elma-based motion equipment manufacturer is at full production of a turret system for Army vehicles. And Moog is staffing up to support development of a new Army helicopter.

The turret program, a contract worth $250 million, will continue at a full rate of production through this year and toward the end of next year, said Pat Roche, Moog’s CEO. 

“We are working at the moment to secure follow-on orders that will keep that running at that rate,” he said as Moog released earnings for its fiscal third quarter.

Eight weeks ago, Moog signed a contract to start the engineering and development phase for the new helicopter, as part of Bell Textron’s team. The new helicopter eventually will replace the Black Hawk.

“We’re at about 60% of the [engineering] team in place and working on it at the moment, and we continue to add to that team to finish off the work, which goes on over the next three years,” Roche said. 

Both the turret and helicopter projects are viewed as beneficial because of their long-term nature, generating a reliable source of revenue for multiple years.

Moog is in the midst of expansions at its home base. The company acquired a nearby building for $28 million and is making some modifications to accommodate its manufacturing.

And work continues on a $77 million expansion through a new building on Moog’s campus. The steel for that building should go up in August or September, Roche said.

“They’re making good progress against their schedule for the building of that structure,” he said.

For the second consecutive quarter, Moog reported all-time high revenues. Its $850 million in sales in its third quarter represented a 10% increase from a year ago. Sales increased in each of Moog’s three business segments, reflecting balanced growth at one of the region’s largest…