(RTTNews) - Woodward Governor Co. (WGOV: News ), a provider of energy control systems and components for commercial and military purposes, Wednesday reported a decline in profit for the fourth quarter, reflecting higher costs and expenses that more than offset a moderate rise in net sales. Earnings, however, topped analysts' estimate by a penny. The company also provided guidance for the fiscal 2010.

The Fort Collins, Colorado-based company's net earnings for the fourth quarter declined to $23.82 million or $0.34 per share from $34.43 million or $0.50 per share in the previous year.

On average, six analysts polled by Thomson Reuters expected the company to report earnings of $0.33 per share for the quarter. Analysts' estimates typically exclude special items.

Net sales for the quarter increased 4% to $364.53 million from $350.54 million last year, yet missed analysts' revenue estimate of $381.47 million. Foreign currency exchange rates had a negative impact on net sales of about $5 million in the fiscal 2009 fourth quarter.

Organic net sales which excludes Airframe Systems' segment external sales of $109.6 million were $255.0 million, down about 27% from $350.5 million in the fiscal 2008 fourth quarter.

By segment, sales from Turbine Systems declined 14% to $148.35 million from a year ago, reflecting declines in aerospace OEM and industrial equipment markets, while aftermarket sales remained consistent with the prior year. Airframe Systems reported sales of $110.35 million for the fourth quarter reflecting stable defense markets and weakness in the business and regional jet markets.
Electrical Power Systems sales declined 40% to $53.72 million from last year. Sales results reflected a broad decline in all markets served by the Electrical Power Systems segment. Net sales from Engine Systems were $73.84 million, down 38% from a year earlier, due to broad declines across all of the company's served markets.

Total costs and expenses rose to $331.73 million from $299.86 million a year ago. Selling, general and administrative expenses increased to $33.95 million from $29.32 million a year earlier.

Amortization charges were $7.95 million, up from $1.57 million last year. Interest expense increased to $9.50 million from $0.86 million last year.

For the fiscal 2009, net earnings declined to $94.35 million or $1.37 per share from $121.88 million or $1.75 per share in the previous fiscal year. Net sales for the year rose 14% to $1.43 billion from $1.26 billion. Foreign currency exchange rates had a negative impact on net organic sales of about 9% and approximately $6 million on organic operating earnings for fiscal 2009.

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