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Mar 31, 2020

Woodward Q2 2020 Earnings Report

Reported financial results for the second quarter of fiscal year 2020.

Key Takeaways

Woodward's second-quarter performance saw net sales of $720 million and net earnings of $91 million, influenced by the initial impacts of the COVID-19 pandemic and actions taken to mitigate its effects.

Net sales were $720 million, compared to $759 million for the prior year quarter.

Net earnings were $91 million, or $1.41 per share, compared to $78 million, or $1.20 per share, for the prior year quarter.

Aerospace segment net sales were $474 million, a 2 percent decrease year-over-year.

Industrial segment net sales were $246 million, an 11 percent decrease year-over-year.

Total Revenue
$720M
Previous year: $759M
-5.1%
EPS
$1.61
Previous year: $1.4
+15.0%
Effective Tax Rate
14.8%
Previous year: 14%
+5.7%
Gross Profit
$203M
Previous year: $192M
+5.6%
Cash and Equivalents
$103M
Previous year: $65.3M
+57.5%
Free Cash Flow
$12.6M
Previous year: $33.2M
-62.1%
Total Assets
$4.06B
Previous year: $3.97B
+2.4%

Woodward

Woodward

Woodward Revenue by Segment

Forward Guidance

Due to the significant global uncertainty, Woodward has withdrawn full-year 2020 guidance. The company anticipates positive free cash flow in the second half of fiscal 2020 and throughout this downturn and is strategically prioritizing investments.

Positive Outlook

  • Strong balance sheet
  • Substantial available liquidity
  • Focus on cash flow management
  • Anticipate positive free cash flow in the second half of fiscal 2020
  • Strategically prioritizing investments

Challenges Ahead

  • Unpredictable economic impacts related to the COVID-19 crisis
  • Difficult to accurately forecast
  • Impacts on customers and suppliers
  • Global uncertainty
  • Withdrew full-year 2020 guidance