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Aircraft is our largest segment. We supply controls for military and commercial aircraft, both on an OEM basis and in the aftermarket. Revenues in GLYPH<213>03 were $404 million, up over 12%, providing more than half of the companyGLYPH<213>s total sales. 

In the military market, Moog designs and builds primary and secondary flight controls and engine controls for fighter and transport aircraft, and for helicopters. Revenues are driven by the number and type of programs in process, as well as by the number of ship sets ordered. Production programs are typically long-term, offering good visibility as to capacity needs and revenues. 

In GLYPH<213>03, we worked on three development contracts for the F-35 Joint Strike Fighter, a low-rate initial production and a replacement contract for the V-22, regular production on the F/A-18E/F, continuing development on the RAH-66 Comanche, and legacy production on the F-15 Eagle, in addition to a number of smaller contracts for other military aircraft. In total, GLYPH<213>03 military aircraft sales, excluding after- market, were $177 million, up $63 million from GLYPH<213>02, primarily due to increased work on F-35 and V-22. 

Our commercial aircraft product line bears many similarities to the military. We design and manufacture high performance flight controls and jet engine controls, both of which are critical to an aircraftGLYPH<213>s performance and safety. Our customers are chiefly Boeing and Airbus, along with the major builders of business jets, including Raytheon, Cessna, Gulfstream, and Bombardier. Market fundamentals depend upon worldwide travel statistics and firm orders for new aircraft. 

In GLYPH<213>03, we delivered primary and secondary flight controls for BoeingGLYPH<213>s 7-series aircraft, servovalves and primary flight controls for Airbus, and primary and secondary flight controls for several business jets. Sales in GLYPH<213>03, excluding aftermarket, were $87 million, down $20 million, entirely due to BoeingGLYPH<213>s decreased commercial production rates. 

MoogGLYPH<213>s original equipment heritage on every important military program and all of BoeingGLYPH<213>s 7-series aircraft has earned the company a strong annuity of aftermarket business. A recent census of active military aircraft counted more than 16,000 aircraft and large commercial transports numbered 7,000. 

In GLYPH<213>03, MoogGLYPH<213>s total military and commercial aircraft aftermarket revenues were over $140 million, up nearly $2 million. 

In GLYPH<213>04, the Aircraft segment expects military revenues to be slightly higher. 

Once again, the F-35, V-22, F/A-18E/F, and F-15 will be significant contributors. Commercial aircraft revenues for GLYPH<213>04 are expected to decrease slightly. Aftermarket is expected to continue its strong performance, increasing by approximately 6% due to a number of scheduled military retrofit programs. 

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## AIRCRAFT CONTROLS 

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