Woodward Inc. reported Monday third-quarter net earnings of $28.3 million, down from $36.1 million in the same quarter last year.

Earnings per share slipped from 51 cents to 40 cents, according to the Fort Collins company's earnings report.

"Operational issues and increased investments in awarded system programs in our aerospace segment have combined to make this a challenging quarter," CEO Tom Gendron said in a statement. "Ongoing worldwide economic uncertainty is also pressuring sales growth."

The company reported $460.2 million in net sales during the third quarter, a 5-percent improvement from the $438.5 million it posted last third quarter.

Woodward also reported free cash flow of $37.7 million vs. $14 million during the third quarter last year.

Research and development costs increased by $9.7 million, or 33 percent vs. last third quarter.

Aerospace net sales remained flat at $214.5 million from a year ago while earnings in the segment decreased 39 percent.

Commercial original equipment manufacturing and aftermarket sales improved, but lower defenses sales offset those gains. Investments in product development and improved production processes hurt segment earnings.

Energy net sales rose 10 percent to $245.8 million. Segment earnings were up 12.7 percent from Woodward's production of control systems for wind turbines and natural-gas systems.

Woodward also said Monday that Hamilton Sundstrand, a subsidiary of United Technologies Corp., selected it as a provider of specific engine components for the newest models of the Pratt & Whitney PurePower engine program. The award is tied to content on the Airbus' A320neo and Irkut's MS-21, both of which are single-aisle aircraft.
Woodward's stock gained 3.25 percent to close at $34.34.