September 8, 2008 - Woodward Governor Co. (WGOV-NASDAQ) engages in the design and manufacture of energy control and optimization solutions for reciprocating engine, aircraft and industrial turbines, and electrical power system equipment used in various industries worldwide.

Woodward Governor sells its products and services directly to its customers, as well as through distributors, dealers, and independent service facilities. The company was founded in 1870 and is headquartered in Fort Collins, Colorado.

If you're looking for a company that's bucking the current economic trend, then WGOV is worth your time. In the first 3 quarters of its fiscal year (begins October 1), sales are up 21% while earnings increased by 43%. More than 50% of sales are international so the weak dollar has helped boost the numbers.

In 2005, WGOV made 80 cents a share, then 99 cents in 2006. Last year, eps jumped to $1.39. This year, analysts project $1.75 and see $2.04 next year. Earnings for the final quarter of this year are estimated at 50 cents, compared to 51 cents last year in the same quarter. For the first quarter of next year 44 cents is the estimate compared to 36 cents last year. Sales have gone from $827.7 million in 2005 to a current run rate of $1.250 billion for this year. Ove the last 5 years, average annual earnings increased by 52%. For the next 5 years, analysts see average annual gains of 12.25%.

All 3 divisions of Woodward are growing at double digit rates. Foreign sales have been especially strong, helping the company weather the domestic economic storm. Of course, should the dollar continue to gather strength, further growth in overseas revenues will be difficult as dollar priced goods and services become more expensive to foreign buyers.

One group, Electrical Power Systems, should see ever increasing demand. It makes components used in the generation of wind power, an energy source attracting new and large capital. There's a possibility government entities will encourage or even mandate wind power sources as political winds blow ever stronger for eco-friendly, renewable energy.

That's all the good news... continued