Woodward, Inc. (NASDAQ:WWD) Q4 2019 Earnings Conference Call - Final Transcript
Nov 18, 2019 • 04:30 pm ET
quarter, an increase of 2%. Net earnings were $67 million or $1.03 per share compared to $75 million or $1.16 per share for the prior year quarter. Adjusted net earnings were $79 million or $1.22 per share compared to adjusted net earnings of $89 million or $1.39 per share for the prior year quarter.
And for the full year, net sales were $2.9 billion compared to $2.33 billion for the prior year, an increase of 25%. Organic net sales were up $345 million or 16% year-over-year. Net earnings were $260 million or $4.02 per share compared to $180 million or $2.82 per share for the prior year. Adjusted net earnings were $314 million or $4.88 per share compared to adjusted net earnings of $246 million or $3.85 per share for the prior year. Net cash generated from operating activities for fiscal 2019 was $391 million compared to $299 million for the prior year. Free cash flow was $292 million compared to $172 million for 2018.
Now I will turn the call over to Tom to comment further on our results, strategies and markets.
Thomas A. Gendron
Thank you, Don, and good afternoon everyone. Fiscal year 2019 was another strong year for Woodward. We continued driving solid sales, earnings and cash flow growth despite facing headwinds from the 737 MAX grounding and customer challenges within our renewables business. In terms of highlights, our Aerospace business continued to perform very well in both commercial and defense markets. Our industrial business also improved due to the addition of Woodward L'Orange as well as the returns of -- to growth of our organic industrial business, which was partially offset by headwinds from our renewables business.
Now moving to our markets in more detail. In commercial aerospace, increasing global wealth and a desire for air travel continues to drive strong demand for more fuel-efficient aircraft. The impact to Woodward of the 737 MAX grounding on our fiscal year 2019 was minimal from an OEM perspective, but we did see a more significant effect on initial provisioning sales. When the aircraft returns to service, we would expect to recover the initial provisioning that was delayed due to the grounding. Legacy commercial aftermarket continues to benefit from high aircraft utilization, solid global passenger traffic growth and a high volume of engine shop visits.
In defense, global budgets and spending remain favorable driving demand for fixed-wing aircraft, rotorcraft and guided weapons. Military aftermarket is robust in support of the US defense initiative to improve the combat readiness of the US fleet as well as global aircraft upgrade programs.
Turning to our industrial markets. In power generation, we continue to see stabilization with the industrial gas turbine market. In our content wins, our new turbine programs are providing some lift as well. The launch of the Mitsubishi J Class heavy frame combined cycle turbine represents a new program for Woodward and highlights our share gains and expanding content in this space. As we look forward, we remain confident in the long-term global