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Curtiss-Wright Reports Fourth Quarter and Full-Year 2014 Financial Results and Issues 2015 Guidance

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CURTISS-WRIGHT REPORTS FOURTH QUARTER AND FULL-YEAR 2014 FINANCIAL RESULTS AND ISSUES 2015 GUIDANCE

February 18, 2015

CHARLOTTE, N.C., Feb. 18, 2015 (GLOBE NEWSWIRE) -- Curtiss-Wright Corporation (NYSE:CW) reported financial results for the fourth quarter and full-year ended December 31, 2014.

Fourth quarter 2014 operating highlights from operations

  • Net sales decreased 3% to $573 million, from $588 million in 2013;
  • Operating income increased 5% to $75 million, from $72 million in 2013;
  • Operating margin increased 90 basis points to 13.1%, from 12.2% in 2013;
  • Net earnings from continuing operations increased 3% to $46 million, or $0.94 per diluted share, from $45 million, or $0.92 per diluted share, in 2013;
  • Free cash flow increased 86% to $166 million, from $89 million in 2013, generating a free cash flow conversion of 360%; and
  • New orders totaled $534 million, down 8% from 2013, primarily due to lower demand within the aerospace and ground defense markets following strong year-to-date results.

Full-year 2014 operating highlights from continuing operations

  • Net sales increased 6% to $2.2 billion, from $2.1 billion in 2013;
  • Operating income increased 19% to $282 million, from $237 million in 2013;
  • Operating margin increased 140 basis points to 12.6%, from 11.2% in 2013;
  • Net earnings from continuing operations increased 22% to $170 million, or $3.46 per diluted share, from $139 million, or $2.91 per diluted share, in 2013;
  • Free cash flow increased 60% to $265 million, from $166 million in 2013, generating a free cash flow conversion of 156%;
  • New orders totaled $2.4 billion, up 11% from 2013, primarily due to higher demand within the aerospace and naval defense markets, as well as the contribution from acquisitions; and Backlog grew to approximately $1.67 billion, up 5% from December 31, 2013.

"We were pleased with our fourth quarter results as we continue to drive solid operating margin expansion and free cash flow generation that produced $0.94 in diluted earnings per share and free cash flow conversion of 360%," said David C. Adams, Chairman and CEO of Curtiss-Wright Corporation. "Our full-year 2014 results reflect robust improvements in operating income, operating margin, diluted EPS and free cash flow, and are a testament to all that we have accomplished under the first year of the 'One Curtiss-Wright' vision. Full-year operating margin of 12.6% represents a one-year increase of more than 300 basis points over 2013 reported results.

"We are delivering on our long-term strategy and have made great strides in our pursuit of upper quartile metrics compared to our peer group. Our operational teams remain intensely focused on driving efficiencies throughout the business, enabling CW to become leaner and more profitable, while also increasing our long-term value to customers and shareholders. As a result, we are forecasting operating margin of 13.3% to 13.4%, diluted EPS of $3.80 to $3.90, and free cash flow of $245 to $265 million in 2015.

"Furthermore, following the Board's re-initiation of our share repurchase program in early 2014 and our commitment to a balanced capital allocation strategy, we returned more than $90 million to our shareholders through consistent share repurchases and dividend distributions in 2014. For 2015, we are actively repurchasing shares under our new buyback program and expect to repurchase at least $200 million this year.

"Overall, we remain dedicated to enhancing shareholder value by improving profitability, generating strong free cash flow and maintaining a balanced capital allocation strategy."

Fourth quarter 2014 operating results from continuing operations

(In thousands) 4Q-2014 4Q-2013 % Change
Sales $ 572,586 $ 588,167 (3%)
Operating income 74,931 71,529 5%
Operating margin 13.1% 12.2% 90 bps

sales

Sales of $573 million in the fourth quarter decreased $16 million, or 3%, compared to the prior year period, primarily driven by lower organic growth in the Defense segment, partially offset by gains in the Commercial/Industrial and Energy segments.

From a market perspective, fourth quarter sales to the commercial markets decreased 2% compared to the prior year period, while sales to the defense markets decreased approximately 5%. Please refer to the table on page 10 for a full breakdown of sales by end market.

operating income

Operating income in the fourth quarter was $75 million, an increase of 5% compared to the prior year period, primarily driven by solid organic growth (excluding effects of foreign currency translation, acquisitions and divestitures) in the Commercial/Industrial and Energy segments and reduced corporate expenses.

Operating margin was 13.1%, an increase of 90 basis points over the prior year period reflecting higher operating income in the Commercial/Industrial and Energy segments. Our results continue to reflect the ongoing margin improvement initiatives benefiting each of our segments, which included lower corporate costs resulting primarily from our organizational realignment.

non-segment operating expense

Non-segment costs were lower by $8 million as compared with the prior year period, primarily due to lower pension costs and other corporate expenses in the current quarter.

net earnings

Fourth quarter net earnings increased 3% from the comparable prior year period. Interest expense of approximately $9 million decreased slightly compared to the prior year period, primarily due to lower average debt levels. Our effective tax rate for the current quarter was 30.8%, an increase from 28.3% in the prior year period, which had benefitted from favorable adjustments to certain tax valuation allowances and state tax return filing true-ups.

Free cash flow

(In thousands) 4Q-2014 4Q-2013
Net cash generated from operating activities $ 178,593 $ 103,441
Capital expenditures (12,635) (14,366)
Free cash flow $ 165,958 $ 89,075

Free cash flow was $166 million for the fourth quarter of 2014, compared to $89 million in the prior year period, or an increase of approximately $77 million. Net cash generated from operating activities increased by $75 million from the prior year period primarily due improvements in working capital as it relates to cash collections and the timing of vendor payments.  Capital expenditures of $13 million were more than $1 million lower than the prior year period. Free cash flow is defined as cash flow from operations less capital expenditures.

other items - update on discontinued operations

During the fourth quarter of 2014, the Company completed the previously announced sale of its upstream oil and gas business (Cimarron) for $100 million in cash.

In addition, during the first quarter of 2015, the Company completed the sale of its aviation ground support equipment business (Douglas) serving the commercial aerospace market for approximately $5 million in cash.

other items - share repurchase

The Company repurchased approximately 301,000 and 975,500 shares of its common stock during the fourth quarter and year-to-date periods, for approximately $21 million and $65 million, respectively.

Beginning in January 2015, the Company began to repurchase shares under its previously announced $200 million share repurchase program, which it expects to complete by year-end.

other items - segment realignment

As a result of the previously announced discontinued operations, the Corporation is realigning certain segments and businesses, as follows:

  • The Energy segment will be renamed as the Power segment.
  • The businesses serving the nuclear naval defense and new build (AP1000) power generation markets, which had previously operated within the Defense segment, will join with the Nuclear aftermarket business in the new Power segment.
  • The remaining Oil and Gas businesses, which had previously operated within the Energy segment, will join the Commercial / Industrial segment, specifically the industrial valves group of companies. As a result, all of our industrial and severe service valve businesses will operate within a single division.
  • The Defense segment will be comprised primarily of the electronics businesses serving the aerospace and ground defense markets.
  • Historical financial results in the new segment structure for 2014 and 2013 periods can be found on page 13 in this release and will be downloadable from the Investor Relations section of our website.

Full-year 2015 guidance

The Company is issuing full-year 2015 financial guidance as follows: 

  2015 Guidance Chg vs. 2014
Total sales $2.28 - $2.33 billion 2% - 4%
Operating income $303 - $312 million 7% - 10%
Operating margin 13.3% - 13.4% + 70 - 80 bps
Interest expense $37 - 38 million  
Effective tax rate ~32%  
Diluted earnings per share $3.80 - $3.90 10% - 13%
Diluted shares outstanding 47.8 million  
Free cash flow $100 - $120 million  
Adjusted free cash flow * $245 - $265 million  

Notes: A more detailed breakdown of our 2015 guidance by segment and by market can be found in the attached accompanying schedules. 

Effective January 30, 2015, Curtiss-Wright elected to make a $145 million contribution to its corporate defined benefit pension plan, which will significantly reduce annual pension expense and annual cash contributions going forward. 

*Adjusted free cash flow excludes the aforementioned pension contribution of $145 million. 

Fourth quarter 2014 segment performance

Commercial/Industrial

(In thousands)  4Q-2014  4Q-2013  % Change
Sales $ 265,462 $ 254,590 4%
Operating income 35,743 28,992 23%
Operating margin 13.5% 11.4% 210 bps

Sales for the fourth quarter were approximately $265 million, an increase of $11 million, or 4%, over the comparable prior year period.  Within the commercial aerospace market, higher sales were driven by the ramp up in OEM production rates, particularly on the Boeing 737 and 787 programs, as well as solid demand for our sensors and controls products. Higher industrial valve sales to the naval defense market were partially offset by lower sales of shot peening and engineered coatings services to the automotive industry within the general industrial market. The 2014 acquisition of CCRS contributed approximately $3 million to sales in the current quarter, primarily related to coating and repair services for industrial gas turbines in the power generation market, which was offset by $3 million in unfavorable foreign currency translation.

Operating income in the fourth quarter was $36 million, an increase of $7 million, or 23%, from the comparable prior year period, while operating margin increased 210 basis points to 13.5%.   The improvement in operating income and operating margin was driven by higher sales volumes related to industrial valve products, surface treatment services and industrial vehicle products, as well as improved profitability resulting from our ongoing margin improvement initiatives.

Defense

(In thousands)  4Q-2014  4Q-2013  % Change
Sales $ 199,658 $ 232,877 (14%)
Operating income 28,757 44,890 (36%)
Operating margin 14.4% 19.3% (490 bps)

Sales for the fourth quarter were approximately $200 million, a decrease of $33 million, or 14%, over the comparable prior year period. Within the defense markets, we experienced lower naval sales, primarily due to decreased production on the Ford-class aircraft carrier and DDG-51 destroyer programs, which more than offset higher sales of pumps and generators supporting the Virginia-class submarine program. Within the power generation market, our results primarily reflect lower revenues on the domestic and China AP1000 programs compared to the prior year period. We also experienced lower quarter-over-quarter revenues related to the licensing of certain non-strategic products within the commercial aerospace market.

Operating income in the fourth quarter was $29 million, a decrease of approximately $16 million, or 36%, compared to the prior year period, while operating margin declined 490 basis points to 14.4%. Our results were primarily impacted by an increase in costs on the AP1000 program as well as the reduced benefit of product licensing agreements. Those decreases were partially offset by the benefits of our ongoing margin improvement initiatives. 

Energy

(In thousands)  4Q-2014  4Q-2013  % Change
Sales $ 107,466 $ 100,700 7%
Operating income 16,343 11,621 41%
Operating margin 15.2% 11.5% 370 bps

Sales for the fourth quarter were approximately $107 million, an increase of approximately $7 million, or 7%, compared to the prior year period. In the oil and gas market, higher sales were driven by strong global aftermarket demand for severe-service industrial and pressure relief valves. Within the power generation market, we experienced lower aftermarket sales supporting domestic nuclear operating reactors, as a result of ongoing deferred spending on maintenance and upgrades, which more than offset higher sales supporting international reactors.

Operating income in the fourth quarter was $16 million, a 41% increase from the comparable prior year period, while operating margin increased 370 basis points to 15.2%. This improvement in operating income and operating margin was primarily driven by higher sales volumes for severe-service valves in the oil and gas market as well as the benefit of our ongoing margin improvement initiatives.  

conference call information

The Company will host a conference call to discuss the fourth quarter and full-year 2014 financial results and expectations for 2015 guidance at 9:00 a.m. EST on Thursday, February 19, 2015. A live webcast of the call and the accompanying financial presentation will be made available on the internet by visiting the Investor Relations section of the Company's website at www.curtisswright.com.

(Tables to Follow)

CURTISS-WRIGHT CORPORATION and SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS (UNAUDITED)
($'s in thousands, except per share data)
  Three Months Ended   Year Ended  
  December 31 Change December 31 Change
  2014 2013 $ % 2014 2013 $ %
Product sales  $ 463,902  $ 487,255  $ (23,353) (5%)  $ 1,815,028  $ 1,719,591  $ 95,437 6%
Service sales  108,684  100,912  7,772 8%  428,098  398,490  29,608 7%
Total net sales  572,586  588,167  (15,581) (3%)  2,243,126  2,118,081  125,045 6%
                 
Cost of product sales  300,663  313,342  (12,679) (4%)  1,190,714  1,123,291  67,423 6%
Cost of service sales  71,583  65,770  5,813 9%  275,896  258,951  16,945 7%
Total cost of sales  372,246  379,112  (6,866) (2%)  1,466,610  1,382,242  84,368 6%
                 
Gross profit  200,340  209,055  (8,715) (4%)  776,516  735,839  40,677 6%
                 
Research and development expenses  16,692  18,185  (1,493) (8%)  67,842  63,580  4,262 7%
Selling expenses  32,665  33,368  (703) (2%)  128,005  128,473  (468) (0%)
General and administrative expenses  76,052  85,973  (9,921) (12%)  298,296  306,663  (8,367) (3%)
                 
Operating income  74,931  71,529  3,402 5%  282,373  237,123  45,250 19%
                 
Interest expense  (8,740)  (9,352)  612 7%  (35,794)  (37,053)  1,259 3%
Other income, net  435  144  291 NM  365  980  (615) NM
                 
Earnings before income taxes  66,626  62,321  4,305 7%  246,944  201,050  45,894 23%
Provision for income taxes  20,494  17,621  2,873 16%  76,995  61,646  15,349 25%
Earnings from continuing operations  $ 46,132  $ 44,700  $ 1,432 3%  $ 169,949  $ 139,404  $ 30,545 22%
                 
Gain (loss) from discontinued operations, net of tax  $ (29,382)  $ 2,607  $ (31,989) NM  $ (56,611)  $ (1,423)  $ (55,188) NM
                 
Net earnings  $ 16,750  $ 47,307  $ (30,557) (65%)  $ 113,338  $ 137,981  $ (24,643) (18%)
                 
Basic earnings per share                
Earnings from continuing operations  $ 0.96  $ 0.95      $ 3.54  $ 2.97    
Earnings (loss) from discontinued operations  (0.61)  0.05      (1.18)  (0.03)    
Total  $ 0.35  $ 1.00      $ 2.36  $ 2.94    
                 
Diluted earnings per share                
Earnings from continuing operations  $ 0.94  $ 0.92      $ 3.46  $ 2.91    
Earnings (loss) from discontinued operations   (0.60)  0.05      (1.15)  (0.03)    
Total  $ 0.34  $ 0.97      $ 2.31  $ 2.88    
                 
                 
Dividends per share  $ 0.13  $ 0.10      $ 0.52  $ 0.39    
                 
Weighted average shares outstanding:                
Basic 47,927 47,443     48,019 46,991    
Diluted 48,905 48,591     49,075 47,912    
                 
NM- not meaningful                
                 
CURTISS-WRIGHT CORPORATION and SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED)
($'s In thousands, except par value)
  December 31, December 31, Change
  2014 2013 %
Assets      
Current assets:      
Cash and cash equivalents  $ 450,116  $ 175,294 157%
Receivables, net  495,480  603,592 (18%)
Inventories, net  388,670  452,087 (14%)
Deferred tax assets, net  44,311  47,650 (7%)
Assets held for sale  147,347  --  NM
Other current assets  45,151  58,660 (23%)
Total current assets 1,571,075 1,337,283 17%
Property, plant, and equipment, net  458,919  515,718 (11%)
Goodwill  998,506  1,110,429 (10%)
Other intangible assets, net  349,227  471,379 (26%)
Other assets  21,784  23,465 (7%)
Total assets  $ 3,399,511  $ 3,458,274 (2%)
       
Liabilities      
Current liabilities:      
Current portion of long-term and short term debt  $ 1,069  $ 1,334 (20%)
Accounts payable  152,266  186,941 (19%)
Accrued expenses  145,938  142,935 2%
Income taxes payable  22,472  789 2748%
Deferred revenue  176,693  164,343 8%
Liabilities held for sale  35,392  --  NM
Other current liabilities  38,163  38,251 (0%)
Total current liabilities 571,993 534,593 7%
Long-term debt  953,279  958,604 (1%)
Deferred tax liabilities, net  51,554  123,644 (58%)
Accrued pension and other postretirement benefit costs  226,687  138,904 63%
Long-term portion of environmental reserves  14,911  15,498 (4%)
Other liabilities  102,654  134,326 (24%)
Total liabilities 1,921,078 1,905,569 1%
       
Stockholders' equity      
Common stock, $1 par value  49,190  49,190 0%
Additional paid in capital  158,043  150,618 5%
Retained earnings  1,469,306  1,380,981 6%
Accumulated other comprehensive income (loss)  (128,411)  25,259 NM
Less: cost of treasury stock  (69,695)  (53,343) 31%
Total stockholders' equity 1,478,433 1,552,705 (5%)
       
Total liabilities and stockholders' equity  $ 3,399,511  $ 3,458,274 (2%)
       
NM-not meaningful      
       
CURTISS-WRIGHT CORPORATION and SUBSIDIARIES
SEGMENT INFORMATION (UNAUDITED)
($'s In thousands)
  Three Months Ended Year Ended
  December December
      Change     Change
  2014 2013 % 2014 2013 %
Sales:            
Commercial/Industrial  $ 265,462  $ 254,590 4%  $ 1,074,772  $ 950,698 13%
Defense  199,658  232,877 (14%)  737,566  767,499 (4%)
Energy  107,466  100,700 7%  430,788  399,884 8%
             
Total sales  $ 572,586  $ 588,167 (3%)  $ 2,243,126  $ 2,118,081 6%
             
Operating income (expense):            
Commercial/Industrial $ 35,743  $ 28,992 23%  $ 142,831  $ 105,245 36%
Defense  28,757  44,890 (36%)  102,252  116,618 (12%)
Energy  16,343  11,621 41%  67,602  57,204 18%
             
Total segments  $ 80,843  $ 85,503 (5%)  $ 312,685  $ 279,067 12%
Corporate and other  (5,912) (13,974) 58%  (30,312)  (41,944) 28%
             
Total operating income  $ 74,931  $ 71,529 5%  $ 282,373  $ 237,123 19%
             
             
Operating margins:            
Commercial/Industrial 13.5% 11.4%   13.3% 11.1%  
Defense 14.4% 19.3%   13.9% 15.2%  
Energy 15.2% 11.5%   15.7% 14.3%  
Total Curtiss-Wright 13.1% 12.2%   12.6% 11.2%  
             
Segment margins 14.1% 14.5%   13.9% 13.2%  
             
CURTISS-WRIGHT CORPORATION and SUBSIDIARIES
SALES BY END MARKET (UNAUDITED)
($'s In thousands)
  Three Months Ended Year Ended
  December 31, December 31,
      Change     Change
  2014 2013 % 2014 2013 %
Defense markets:            
Aerospace  $ 83,811  $ 81,628 3%  $ 285,576  $ 262,914 9%
Ground  18,739  21,215 (12%)  74,066  80,064 (7%)
Naval  100,054  107,996 (7%)  381,336  370,748 3%
Other  2,406  4,107 (41%)  8,612  16,370 (47%)
Total Defense  $ 205,010  $ 214,946 (5%)  $ 749,590  $ 730,096 3%
             
Commercial markets:            
Commercial Aerospace  $ 105,874  $ 109,519 (3%)  $ 428,083  $ 398,870 7%
Oil and Gas  52,423  45,971 14%  232,360  186,638 24%
Power Generation  111,094  119,572 (7%)  427,460  461,574 (7%)
General Industrial  98,185  98,159 0%  405,633  340,903 19%
Total Commercial  $ 367,576  $ 373,221 (2%)  $ 1,493,536  $ 1,387,985 8%
             
Total Curtiss-Wright  $ 572,586  $ 588,167 (3%)  $ 2,243,126  $ 2,118,081 6%
             

Use of Non-GAAP Financial Information

The Corporation supplements our financial information determined under U.S. generally accepted accounting principles (GAAP) with certain non-GAAP financial information. We believe that these non-GAAP measures provide investors with additional insight into the company's ongoing business performance. These non-GAAP measures should not be considered in isolation or as a substitute for the related GAAP measures, and other companies may define such measures differently. We encourage investors to review our financial statements and publicly-filed reports in their entirety and not to rely on any single financial measure. The following definitions are provided:

Organic Revenue and Organic Operating income

The Corporation discloses organic revenue and organic operating income because the Corporation believes it provides investors with insight as to the Company's ongoing business performance.  Organic revenue and organic operating income are defined as revenue and operating income excluding the impact of foreign currency fluctuations and contributions from acquisitions made during the last twelve months.

  Three Months Ended
  2014 vs 2013
  Commercial Defense Energy Total Curtiss-Wright
  Sales Operating
income
Sales Operating
income
Sales Operating
income
Sales Operating
income
Organic 4% 25% (13%) (39%) 3% 36% (3%) 2%
Acquisitions 1% 1% 0% 0% 4% 2% 1% 1%
Foreign Currency (1%) (3%) (1%) 3% (0%) 3% (1%) 2%
Total 4% 23% (14%) (36%) 7% 41% (3%) 5%
                 
  Year Ended
  2014 vs 2013
  Commercial Defense Energy Total Curtiss-Wright
  Sales Operating
income
Sales Operating
income
Sales Operating
income
Sales Operating
income
Organic 6% 32% (6%) (18%) 6% 17% 2% 14%
Acquisitions 7% 5% 2% 3% 2% (1%) 4% 3%
Foreign Currency 0% (1%) (0%) 3% (0%) 2% 0% 2%
Total 13% 36% (4%) (12%) 8% 18% 6% 19%

Free Cash Flow

The Corporation discloses free cash flow because the Corporation believes it measures cash flow available for investing and financing activities. Free cash flow is defined as net cash flow provided by operating activities less capital expenditures. Free cash flow represents cash generated after paying for interest on borrowings, income taxes, capital expenditures, and working capital requirements, but before repaying outstanding debt and investing cash or utilizing debt credit lines to acquire businesses and make other strategic investments.

CURTISS-WRIGHT CORPORATION and SUBSIDIARIES
NON-GAAP FINANCIAL DATA (UNAUDITED)
($'s In thousands)
    Three Months Ended Year Ended
    December 31 December 31
    2014 2013 2014 2013
           
Net cash provided by operating activities  $ 178,593  $ 103,441  $ 331,766  $ 237,827
Capital expenditures    (12,635)  (14,366)  (67,115)  (72,242)
Free cash flow     $ 165,958  $ 89,075  $ 264,651  $ 165,585
           
Cash conversion *   360% 199% 156% 119%
           
*Cash conversion is calculated as free cash flow divided by earnings from continuing operations
CURTISS-WRIGHT CORPORATION and SUBSIDIARIES
HISTORICAL SEGMENT INFORMATION (UNAUDITED)
($'s In thousands)
The Corporation is issuing the below supplemental financial information by reportable segment for the 2014 and 2013 prior quarterly reporting periods to reflect the Corporation's first quarter 2015 segment reorganization.
             
    Three Months Ended  
    3/31/2014 6/30/2014 9/30/2014 12/31/2014 FY 2014
Sales:            
Commercial/Industrial   $ 300,953 $ 313,798 $ 312,808 $ 300,538 $ 1,228,097
Defense    112,371  118,507  127,061  131,918  489,857
Power    129,635  136,893  118,514  140,130  525,172
Total sales   $ 542,959 $ 569,198 $ 558,383 $ 572,586 $ 2,243,126
             
Operating income:            
Commercial/Industrial   $ 38,496 $ 45,750 $ 51,069 $ 43,369 $ 178,684
Defense    15,784  18,002  22,480  26,286  82,552
Power    14,275  14,865  11,121  11,188  51,449
Total segments   $ 68,555 $ 78,617 $ 84,670 $ 80,843 $ 312,685
Corporate and other    (7,521)  (6,458)  (10,421)  (5,912)  (30,312)
Total operating income   $ 61,034 $ 72,159 $ 74,249 $ 74,931 $ 282,373
             
Operating margins:            
Commercial/Industrial   12.8% 14.6% 16.3% 14.4% 14.5%
Defense   14.0% 15.2% 17.7% 19.9% 16.9%
Power   11.0% 10.9% 9.4% 8.0% 9.8%
Total Curtiss-Wright   11.2% 12.7% 13.3% 13.1% 12.6%
             
Segment margins   12.6% 13.8% 15.2% 14.1% 13.9%
             
    Three Months Ended  
    3/31/2013 6/30/2013 9/30/2013 12/31/2013 FY 2013
Sales:            
Commercial/Industrial   $ 249,204 $ 272,829 $ 272,678 $ 281,386 $ 1,076,097
Defense    108,060  113,385  105,760  153,023  480,228
Power    137,131  137,925  132,942  153,758  561,756
Total sales   $ 494,395 $ 524,139 $ 511,380 $ 588,167 $ 2,118,081
             
Operating income:            
Commercial/Industrial   $ 25,304 $ 33,556 $ 39,019 $ 33,426 $ 131,305
Defense    8,266  19,078  18,637  28,379  74,360
Power    16,924  18,435  14,345  23,698  73,402
Total segments   $ 50,494 $ 71,069 $ 72,001 $ 85,503 $ 279,067
Corporate and other    (9,755)  (12,077)  (6,138)  (13,974)  (41,944)
Total operating income   $ 40,739 $ 58,992 $ 65,863 $ 71,529 $ 237,123
             
Operating margins:            
Commercial/Industrial   10.2% 12.3% 14.3% 11.9% 12.2%
Defense   7.6% 16.8% 17.6% 18.5% 15.5%
Power   12.3% 13.4% 10.8% 15.4% 13.1%
Total Curtiss-Wright   8.2% 11.3% 12.9% 12.2% 11.2%
             
Segment margins   10.2% 13.6% 14.1% 14.5% 13.2%
CURTISS-WRIGHT CORPORATION
2015 Earnings Guidance (from Continuing Operations) 
As of February 18, 2015
($'s in millions, except per share data)
  2014 Pro 2015 Guidance
   Forma Low High
Sales:      
Commercial/Industrial  $ 1,228  $ 1,265  $ 1,285
Defense  490  500  515
Power  525  515  530
Total sales  $ 2,243  $ 2,280  $ 2,330
       
Operating income:      
Commercial/Industrial  $ 179  $ 188  191
Defense  83  90  93
Power  51  59  61
Total segments  313  337  345
Corporate and other  (30)  (33)  (33)
Total operating income  $ 282  $ 303  $ 312
       
Interest expense  $ (36)  $ (37)  $ (38)
Earnings before income taxes  247  267  274
Provision for income taxes  (77)  (85)  (88)
Net earnings  $ 170  $ 181  $ 187
       
Reported diluted earnings per share  $ 3.46  $ 3.80  $ 3.90
Diluted shares outstanding 49.0 47.8 47.8
Effective tax rate 31.2% 32.0% 32.0%
       
Operating margins:      
Commercial/Industrial 14.5% 14.8% 14.9%
Defense 16.9% 18.0% 18.1%
Power 9.8% 11.4% 11.5%
       
Note: Full year amounts may not add due to rounding
 
* Information has been revised from that previously presented to reflect segment change announced in first quarter 2015.
CURTISS-WRIGHT CORPORATION
2015 Sales Guidance by End Market (from Continuing Operations)
As of February 18, 2015
  2015 Guidance % Change
  Low High
     
Defense Markets    
Aerospace (2%) 2%
Ground 18% 22%
Navy (2%) 2%
Total Defense (Including Other Defense) 2% 4%
     
Commercial Markets    
Commercial Aerospace (2%) 2%
Power Generation (2%) 2%
General Industrial 5% 9%
Total Commercial 2% 4%
     
Total Curtiss-Wright Sales 2% 4%
     
Note: Full year amounts may not add due to rounding

 

ABOUT CURTISS-WRIGHT CORPORATION

Curtiss-Wright Corporation (NYSE:CW) is a global innovative company that delivers highly engineered, critical function products and services to the commercial, industrial, defense and energy markets. Building on the heritage of Glenn Curtiss and the Wright brothers, Curtiss-Wright has a long tradition of providing reliable solutions through trusted customer relationships. The company employs approximately 9,000 people worldwide. For more information, visit www.curtisswright.com.

Certain statements made in this release, including statements about future revenue, financial performance guidance, quarterly and annual revenue, net income, operating income growth, future business opportunities, cost saving initiatives, the successful integration of our acquisitions, the successful sale of our businesses held for sale, and future cash flow from operations, are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements present management's expectations, beliefs, plans and objectives regarding future financial performance, and assumptions or judgments concerning such performance. Any discussions contained in this press release, except to the extent that they contain historical facts, are forward-looking and accordingly involve estimates, assumptions, judgments and uncertainties. Such forward-looking statements are subject to certain risks and uncertainties that could cause actual results to differ materially from those expressed or implied. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date hereof. Such risks and uncertainties include, but are not limited to: a reduction in anticipated orders; an economic downturn; changes in competitive marketplace and/or customer requirements; a change in government spending; an inability to perform customer contracts at anticipated cost levels; and other factors that generally affect the business of aerospace, defense contracting, electronics, marine, and industrial companies. Such factors are detailed in the Company's Annual Report on Form 10-K for the fiscal year ended December 31, 2013, and subsequent reports filed with the Securities and Exchange Commission.

This press release and additional information are available at www.curtisswright.com.

CONTACT: Jim Ryan
         (973) 541-3766
         [email protected]

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Source: Curtiss-Wright Corporation