CHARLOTTE, N.C.--(BUSINESS WIRE)--
Curtiss-Wright Corporation (NYSE: CW) reports financial results for the
fourth quarter and full-year ended December 31, 2017.
Fourth Quarter 2017 Highlights
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Diluted earnings per share (EPS) of $1.52;
-
Free cash flow of $209 million and free cash flow conversion of 308%,
as defined in table below;
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Net sales of $612 million, up 8%, including 3% organic growth;
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Operating income of $109 million, up 2%;
-
Operating margin of 17.8%, down 100 basis points;
-
Effective tax rate of 31.8%, including the impact of the Tax Cuts and
Jobs Act (TCJA); and
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New orders of $580 million, up 17%.
Full-Year 2017 Highlights
-
Diluted earnings per share (EPS) of $4.80, came in ahead of
expectations and up 14% compared with the prior year;
-
Free cash flow of $336 million and free cash flow conversion of 156%,
driven by a solid reduction in working capital;
-
Net sales of $2.3 billion, up 8%, including 5% organic growth, driven
by higher sales in all end markets;
-
Operating income of $340 million, up 10%;
-
Operating margin of 15.0%, up 40 basis points;
-
Effective tax rate of 28.3%, including the impact of the Tax Cuts and
Jobs Act;
-
Backlog of $2.0 billion increased 3% from December 31, 2016; and
-
Share repurchase of approximately $51 million or 0.5 million shares.
Full-Year 2018 Business Outlook
-
Expect higher sales (+3-5%), operating income (+9-12%), operating
margin (+90-110 basis points) and diluted earnings per share (+18-21%);
-
Anticipate higher sales in all end markets;
-
Adjusted free cash flow (which excludes a $50 million voluntary
pension contribution) to range from $280 to 300 million; and
-
Announced acquisition of Dresser-Rand government business expected to
provide solid increase to sales and would be accretive to EPS,
excluding purchase accounting.
“We were pleased with our fourth quarter results, as we generated a
solid operational performance and delivered stronger than anticipated
diluted EPS of $1.52,” said David C. Adams, Chairman and CEO of
Curtiss-Wright Corporation. “We reported an 8% increase in sales, led by
a solid contribution from the Teletronics Technology Corporation (TTC)
acquisition in the Defense segment. Further, we generated over $200
million in free cash flow driven by a significant reduction in working
capital, while new orders increased 17% driven by strong demand in both
our defense and commercial businesses.”
“Full-year 2017 results reflect a strong operational performance which
exceeded our expectations driven by solid 8% top-line growth, 5% of
which was organic, improved profitability that generated a 15.0%
operating margin and stronger than anticipated EPS of $4.80. In
addition, we significantly exceeded expectations by generating nearly
$340 million in free cash flow in 2017, as we efficiently reduced
working capital to 18.8% of sales and achieved our goal to reach the top
quartile of our peer group. We are delivering on our long-term strategy
and continue to drive solid operating margin expansion and free cash
flow generation.”
“For 2018, we are projecting another solid operational performance, as
we expect higher sales in all end markets, double-digit growth in
operating income and EPS, and 80 to 100 basis point improvement in
unadjusted operating margin to a range of 15.8% to 16.0%. We are excited
about the recently announced acquisition of the Dresser-Rand government
business, which will significantly expand our naval defense business and
supports our objective for long-term profitable growth. We remain
extremely focused on driving increased operational efficiencies,
continuing to invest in our future growth, and maintaining top-quartile
financial performance for all of our key metrics to generate significant
value for our shareholders.”
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Fourth Quarter 2017 Operating Results
from Continuing Operations
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(In thousands)
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4Q-2017
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4Q-2016
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|
Change
|
Sales
|
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$
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611,881
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$
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565,566
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8
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%
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Operating income
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108,695
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106,173
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2
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%
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Operating margin
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17.8
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%
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18.8
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%
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(100 bps)
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Sales
Sales of $612 million in the fourth quarter increased $46 million, or
8%, compared with the prior year, reflecting a $25 million, or 4%,
contribution from our acquisition of TTC, a $15 million, or 3%, increase
in organic sales, and a $6 million, or 1%, benefit from favorable
foreign currency translation.
Higher organic sales were driven by improved industrial demand in the
Commercial/Industrial segment and higher aerospace and naval defense
sales in the Defense segment, partially offset by lower power generation
revenues in the Power segment.
From an end market perspective, sales to the defense markets increased
18%, 7% of which was organic, while sales to the commercial markets
increased 2%, compared with the prior year. Please refer to the
accompanying tables for a breakdown of sales by end market.
Operating Income
Operating income in the fourth quarter was $109 million, an increase of
$3 million, or 2%, compared with the prior year. These results primarily
reflect strong profitability associated with the TTC acquisition in the
Defense segment, partially offset by lower sales and reduced
profitability in the nuclear aftermarket business in the Power segment,
and higher incentive compensation expense across all three segments.
Operating margin was 17.8%, a decrease of 100 basis points over the
prior year, primarily reflecting lower sales and operating income in the
Power segment, unfavorable sales mix in the Commercial/Industrial
segment, and higher incentive compensation expense.
Non-segment Expense
Non-segment expenses decreased by approximately $2 million compared with
the prior year, primarily due to lower corporate expenses and lower
foreign currency transactional losses.
Net Earnings
Fourth quarter net earnings decreased 4% compared with the prior year,
as higher operating income was more than offset by a higher tax rate.
The effective tax rate (ETR) for the fourth quarter was 31.8%, an
increase from 26.3% in the prior year quarter, primarily driven by a net
charge of approximately $10 million, or $0.23 per share, related to the
2017 TCJA, reflecting:
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a $22 million charge for the mandatory deemed repatriation of foreign
earnings (“transition tax”), which is payable over 8 years beginning
in 2018, partially offset by:
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a $12 million benefit relative to re-measurement of U.S. deferred tax
balances to reflect the new lower U.S. corporate income tax rate.
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These amounts represent provisional estimates, subject to
finalization over the course of 2018.
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(In thousands)
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4Q-2017
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ETR
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EPS
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Base Provision for Income Taxes
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$
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23,793
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24.0
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%
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Impact of share based compensation
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$
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(2,435
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)
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(2.5
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%)
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$
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0.05
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Net Impact of TCJA:
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Transition Tax
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$
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21,983
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Deferred Tax Revaluation
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(11,759
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)
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$
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10,224
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10.3
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%
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$
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(0.23
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)
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Final Provision for Income Taxes
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$
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31,582
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31.8
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%
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$
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(0.18
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)
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Free Cash Flow
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(In thousands)
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4Q-2017
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4Q-2016
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Net cash provided by operating activities
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$
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226,405
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$
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155,985
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Capital expenditures
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(17,831
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)
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(20,649
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)
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Free cash flow
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$
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208,574
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$
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135,336
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Free cash flow, defined as cash flow from operations less capital
expenditures, was $209 million for the fourth quarter of 2017, an
increase of $73 million compared with the prior year. Net cash provided
by operating activities increased $70 million to $226 million, due to
higher cash earnings and improved working capital, specifically lower
receivables and higher deferred revenue, including a $25 million
advanced cash payment on the AP1000 China Direct program that was
originally expected in 2018. Capital expenditures decreased by $3
million to $18 million, as the prior year period included increased
investment in a facility expansion in the Commercial/Industrial segment.
New Orders and Backlog
New orders of $580 million in the fourth quarter increased 17% compared
with the prior year, due to higher demand for commercial aerospace and
industrial vehicle products within the Commercial/Industrial segment, as
well as higher demand for embedded computing and flight test
instrumentation products within the Defense segment. Backlog of $2.0
billion increased 3% from December 31, 2016.
Other Items – Share Repurchase
During the fourth quarter, the Company repurchased 112,881 shares of its
common stock for approximately $13 million. For full-year 2017, the
Company repurchased 516,313 shares of its common stock for approximately
$51 million.
Other Items – Pension
The adoption of Accounting Standards Update (ASU) 2017-07 “Improving the
Presentation of Net Periodic Pension Cost and Net Periodic
Postretirement Benefit Cost” results in the reclassification of the
non-service components of Pension expense from Operating Income to Other
Income/Expense effective for fiscal years beginning after December 15,
2017. The adoption of the new standard is not expected to impact our
sales, net earnings, cash flows or liabilities. For comparison purposes,
as shown in the guidance table below and in the financial tables that
follow, we have provided restated financial information for 2017 results
and 2018 guidance incorporating the adoption of this new accounting
standard.
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Full-Year 2018 Guidance
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The Company is issuing its full-year 2018 financial guidance as
follows (does not include the potential acquisition of the
Dresser-Rand government business):
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2017
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2018 Guidance
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(Adjusted for Pension
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2018 Guidance
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(Adjusted for Pension
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Reclassification)
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(Unadjusted)
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Reclassification)
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Total sales
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$2.271 billion
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$2.335 - $2.375 billion
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$2.335 - $2.375 billion
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Operating income
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$325 million
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$369 - $379 million
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$355 - $365 million
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Operating margin
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14.3%
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15.8% - 16.0%
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15.2% - 15.4%
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Interest expense
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$41 million
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$37 - $38 million
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$37 - $38 million
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Effective tax rate
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28.3%
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24.0%
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24.0%
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Diluted earnings per share
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$4.80
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$5.65 - $5.80
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$5.65 - $5.80
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Diluted shares outstanding
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44.8 million
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44.7 million
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44.7 million
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Free cash flow
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$336 million
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$230 - $250 million
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$230 - $250 million
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Adjusted free cash flow
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$336 million
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$280 - $300 million
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$280 - $300 million
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Notes:
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Full-year 2017 and 2018 effective tax rate guidance includes the
impacts of the Tax Cuts and Jobs Act.
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Full-year 2017 adjusted results and 2018 guidance include the impacts
from the aforementioned pension reclassification. This accounting
change lowers operating income by $14.6 million and $14.0 million,
respectively, and lowers operating margin by 70 and 60 basis points,
respectively, in full-year 2017 and projected full-year 2018 periods.
This change is neutral to earnings per share in both periods.
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In February 2018, the Company elected to make a $50 million voluntary
contribution to its corporate defined benefit pension plan.
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Adjusted free cash flow for full-year 2018 excludes the aforementioned
pension contribution of $50 million.
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In January 2018, the Company adopted Accounting Standards Update No.
2014-09, Revenue from Contracts with Customers (ASC 606). The impact
to 2018 is projected to be immaterial.
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The Company will update its guidance to reflect the financial impact
of the Dresser-Rand government business following the closing of the
transaction, currently expected in the second quarter of 2018.
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A more detailed breakdown of the Company’s 2018 guidance by segment
and by market can be found in the accompanying schedules.
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Fourth Quarter 2017 Segment Performance
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Commercial/Industrial
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(In thousands)
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4Q-2017
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4Q-2016
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Change
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Sales
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$
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298,329
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$
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278,346
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7
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%
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Operating income
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47,240
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48,474
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(3
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%)
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Operating margin
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15.8
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%
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17.4
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%
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(160 bps)
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Sales for the fourth quarter were $298 million, an increase of $20
million, or 7%, over the prior year. Organic sales increased $16
million, or 6%, while favorable foreign currency translation added $4
million, or 1%. Our results primarily reflect higher sales in the
general industrial market, due to continued solid demand for industrial
vehicle products. We also experienced higher sales in the commercial
aerospace market, primarily due to higher sales of sensors and actuation
systems on narrow body aircraft. In the naval defense market, our
results reflect lower revenues on the Virginia-class submarine program,
based on the timing of production.
Operating income in the fourth quarter was $47 million, a decrease of $1
million, or 3%, compared with the prior year, while operating margin
decreased 160 basis points to 15.8%. The decrease in operating income
and margin primarily reflects lower sales and profitability for naval
valves, unfavorable mix in industrial vehicle products, and higher
incentive compensation expense. Those results were partially offset by
higher sales and improved profitability for sensors and controls
products and surface treatment services.
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Defense
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(In thousands)
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4Q-2017
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4Q-2016
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Change
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Sales
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$
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172,511
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$
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133,353
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29
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%
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Operating income
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43,377
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34,015
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28
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%
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Operating margin
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25.1
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%
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25.5
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%
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(40 bps)
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Sales for the fourth quarter were $173 million, an increase of $39
million, or 29%, from the prior year. These results primarily reflect a
$25 million, or 18%, contribution from our acquisition of TTC, a $12
million, or 9%, increase in organic sales, and a $2 million, or 2%,
benefit from favorable foreign currency translation. In the aerospace
defense market, our results reflect higher sales of data acquisition and
flight test equipment from TTC, most notably on the F-35 Joint Strike
Fighter program, as well as higher sales of embedded computing products
supporting various Intelligence, Surveillance and Reconnaissance (ISR)
programs. We also experienced higher sales in the naval defense market,
most notably for our defense electronics products on the Virginia-class
submarine program. In the ground defense market, our results reflect
higher sales of our embedded computing products supporting upgrades to
the Abrams main battle tank program.
Operating income in the fourth quarter was $43 million, an increase of
$9 million, or 28%, compared with the prior year, while operating margin
decreased 40 basis points to 25.1%. Excluding a $9 million, or 27%,
benefit from the TTC acquisition, organic operating income increased 4%,
while operating margin decreased 120 basis points to 24.3% compared with
the prior year, driven primarily by an unfavorable shift in mix for our
defense electronics products, and higher incentive compensation expense.
Meanwhile, unfavorable foreign currency translation reduced current
quarter operating income by approximately $1 million, or 3%.
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Power
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(In thousands)
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4Q-2017
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4Q-2016
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Change
|
Sales
|
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$
|
141,041
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$
|
153,867
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(8
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%)
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Operating income
|
|
|
24,364
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|
|
|
31,600
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(23
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%)
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Operating margin
|
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|
17.3
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%
|
|
|
20.5
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%
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(320 bps)
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Sales for the fourth quarter were $141 million, a decrease of $13
million, or 8%, from the prior year. Our results primarily reflect
decreased sales in the power generation market, as lower aftermarket
sales supporting currently operating nuclear reactors and lower revenues
on the domestic AP1000 program were only partially offset by higher
revenues on the AP1000 China Direct program. In the naval defense
market, our results reflect higher revenues on the Virginia-class
submarine and CVN-80 aircraft carrier programs, based on the timing of
production, as well as the new Columbia class submarine program,
supporting the ramp-up in development.
Operating income in the fourth quarter was $24 million, a decrease of $7
million, or 23%, compared with the prior year, while operating margin
decreased 320 basis points to 17.3%. This performance reflects reduced
sales and profitability in the nuclear aftermarket business, lower
revenues on the domestic AP1000 program, and higher incentive
compensation expense, partially offset by higher production and
profitability on the AP1000 China Direct program.
Conference Call & Webcast Information
The Company will host a conference call to discuss fourth quarter and
full-year 2017 financial results and expectations for 2018 guidance at
9:00 a.m. EST on Thursday, February 22, 2018. A live webcast of the call
and the accompanying financial presentation, as well as a replay of the
call, will be made available on the internet by visiting the Investor
Relations section of the Company’s website at www.curtisswright.com.
(Tables to Follow)
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CURTISS-WRIGHT CORPORATION and SUBSIDIARIES
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CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS (UNAUDITED)
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($'s in thousands, except per share data)
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Three Months Ended
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Year Ended
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|
December 31,
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Change
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|
December 31,
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Change
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|
2017
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|
|
2016
|
|
|
$
|
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%
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|
|
2017
|
|
|
2016
|
|
|
$
|
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%
|
Product sales
|
|
|
$
|
503,140
|
|
|
|
$
|
470,211
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|
|
|
$
|
32,929
|
|
|
7
|
%
|
|
|
$
|
1,854,216
|
|
|
|
$
|
1,714,358
|
|
|
|
$
|
139,858
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|
|
8
|
%
|
Service sales
|
|
|
108,741
|
|
|
|
95,355
|
|
|
|
13,386
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|
|
14
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%
|
|
|
416,810
|
|
|
|
394,573
|
|
|
|
22,237
|
|
|
6
|
%
|
Total net sales
|
|
|
611,881
|
|
|
|
565,566
|
|
|
|
46,315
|
|
|
8
|
%
|
|
|
2,271,026
|
|
|
|
2,108,931
|
|
|
|
162,095
|
|
|
8
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of product sales
|
|
|
305,912
|
|
|
|
294,195
|
|
|
|
11,717
|
|
|
4
|
%
|
|
|
1,184,358
|
|
|
|
1,100,287
|
|
|
|
84,071
|
|
|
8
|
%
|
Cost of service sales
|
|
|
67,702
|
|
|
|
62,646
|
|
|
|
5,056
|
|
|
8
|
%
|
|
|
268,073
|
|
|
|
258,161
|
|
|
|
9,912
|
|
|
4
|
%
|
Total cost of sales
|
|
|
373,614
|
|
|
|
356,841
|
|
|
|
16,773
|
|
|
5
|
%
|
|
|
1,452,431
|
|
|
|
1,358,448
|
|
|
|
93,983
|
|
|
7
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross profit
|
|
|
238,267
|
|
|
|
208,725
|
|
|
|
29,542
|
|
|
14
|
%
|
|
|
818,595
|
|
|
|
750,483
|
|
|
|
68,112
|
|
|
9
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Research and development expenses
|
|
|
14,934
|
|
|
|
14,125
|
|
|
|
809
|
|
|
6
|
%
|
|
|
60,308
|
|
|
|
58,592
|
|
|
|
1,716
|
|
|
3
|
%
|
Selling expenses
|
|
|
33,671
|
|
|
|
26,203
|
|
|
|
7,468
|
|
|
29
|
%
|
|
|
120,002
|
|
|
|
111,228
|
|
|
|
8,774
|
|
|
8
|
%
|
General and administrative expenses
|
|
|
80,967
|
|
|
|
62,224
|
|
|
|
18,743
|
|
|
30
|
%
|
|
|
298,542
|
|
|
|
272,565
|
|
|
|
25,977
|
|
|
10
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating income
|
|
|
108,695
|
|
|
|
106,173
|
|
|
|
2,522
|
|
|
2
|
%
|
|
|
339,743
|
|
|
|
308,098
|
|
|
|
31,645
|
|
|
10
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest expense
|
|
|
9,887
|
|
|
|
10,554
|
|
|
|
(667
|
)
|
|
(6
|
%)
|
|
|
41,471
|
|
|
|
41,248
|
|
|
|
223
|
|
|
1
|
%
|
Other income, net
|
|
|
524
|
|
|
|
293
|
|
|
|
231
|
|
|
79
|
%
|
|
|
1,347
|
|
|
|
1,111
|
|
|
|
236
|
|
|
21
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings before income taxes
|
|
|
99,332
|
|
|
|
95,912
|
|
|
|
3,420
|
|
|
4
|
%
|
|
|
299,619
|
|
|
|
267,961
|
|
|
|
31,658
|
|
|
12
|
%
|
Provision for income taxes
|
|
|
(31,582
|
)
|
|
|
(25,244
|
)
|
|
|
(6,338
|
)
|
|
25
|
%
|
|
|
(84,728
|
)
|
|
|
(78,579
|
)
|
|
|
(6,149
|
)
|
|
8
|
%
|
Earnings from continuing operations
|
|
|
$
|
67,750
|
|
|
|
$
|
70,668
|
|
|
|
$
|
(2,918
|
)
|
|
(4
|
%)
|
|
|
$
|
214,891
|
|
|
|
$
|
189,382
|
|
|
|
$
|
25,509
|
|
|
13
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loss from discontinued operations, net of tax
|
|
|
—
|
|
|
|
(2,053
|
)
|
|
|
2,053
|
|
|
NM
|
|
|
—
|
|
|
|
(2,053
|
)
|
|
|
2,053
|
|
|
NM
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net earnings
|
|
|
$
|
67,750
|
|
|
|
$
|
68,615
|
|
|
|
$
|
(865
|
)
|
|
(1
|
%)
|
|
|
$
|
214,891
|
|
|
|
$
|
187,329
|
|
|
|
$
|
27,562
|
|
|
15
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic earnings per share
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings from continuing operations
|
|
|
$
|
1.54
|
|
|
|
$
|
1.60
|
|
|
|
|
|
|
|
|
$
|
4.86
|
|
|
|
$
|
4.27
|
|
|
|
|
|
|
Earnings from discontinued operations
|
|
|
—
|
|
|
|
(0.05
|
)
|
|
|
|
|
|
|
|
—
|
|
|
|
(0.05
|
)
|
|
|
|
|
|
Total
|
|
|
$
|
1.54
|
|
|
|
$
|
1.55
|
|
|
|
|
|
|
|
|
$
|
4.86
|
|
|
|
$
|
4.22
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted earnings per share
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings from continuing operations
|
|
|
$
|
1.52
|
|
|
|
$
|
1.58
|
|
|
|
|
|
|
|
|
$
|
4.80
|
|
|
|
$
|
4.20
|
|
|
|
|
|
|
Earnings from discontinued operations
|
|
|
—
|
|
|
|
(0.05
|
)
|
|
|
|
|
|
|
|
—
|
|
|
|
(0.05
|
)
|
|
|
|
|
|
Total
|
|
|
$
|
1.52
|
|
|
|
$
|
1.53
|
|
|
|
|
|
|
|
|
$
|
4.80
|
|
|
|
$
|
4.15
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Dividends per share
|
|
|
$
|
0.15
|
|
|
|
$
|
0.13
|
|
|
|
|
|
|
|
|
$
|
0.56
|
|
|
|
$
|
0.52
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average shares outstanding:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
44,132
|
|
|
|
44,173
|
|
|
|
|
|
|
|
|
44,182
|
|
|
|
44,389
|
|
|
|
|
|
|
Diluted
|
|
|
44,692
|
|
|
|
44,789
|
|
|
|
|
|
|
|
|
44,761
|
|
|
|
45,045
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NM- not meaningful
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CURTISS-WRIGHT CORPORATION and SUBSIDIARIES
|
CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED)
|
($'s in thousands, except par value)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
December 31,
|
|
|
December 31,
|
|
|
Change
|
|
|
|
2017
|
|
|
2016
|
|
|
%
|
Assets
|
|
|
|
|
|
|
|
|
|
Current assets:
|
|
|
|
|
|
|
|
|
|
Cash and cash equivalents
|
|
|
$
|
475,120
|
|
|
|
$
|
553,848
|
|
|
|
(14
|
%)
|
Receivables, net
|
|
|
494,923
|
|
|
|
463,062
|
|
|
|
7
|
%
|
Inventories, net
|
|
|
378,866
|
|
|
|
366,974
|
|
|
|
3
|
%
|
Other current assets
|
|
|
52,951
|
|
|
|
30,927
|
|
|
|
71
|
%
|
Total current assets
|
|
|
1,401,860
|
|
|
|
1,414,811
|
|
|
|
(1
|
%)
|
Property, plant, and equipment, net
|
|
|
390,235
|
|
|
|
388,903
|
|
|
|
0
|
%
|
Goodwill
|
|
|
1,096,329
|
|
|
|
951,057
|
|
|
|
15
|
%
|
Other intangible assets, net
|
|
|
329,668
|
|
|
|
271,461
|
|
|
|
21
|
%
|
Other assets
|
|
|
18,229
|
|
|
|
11,549
|
|
|
|
58
|
%
|
Total assets
|
|
|
$
|
3,236,321
|
|
|
|
$
|
3,037,781
|
|
|
|
7
|
%
|
|
|
|
|
|
|
|
|
|
|
Liabilities
|
|
|
|
|
|
|
|
|
|
Current liabilities:
|
|
|
|
|
|
|
|
|
|
Current portion of long-term and short term debt
|
|
|
$
|
150
|
|
|
|
$
|
150,668
|
|
|
|
NM
|
Accounts payable
|
|
|
185,176
|
|
|
|
177,911
|
|
|
|
4
|
%
|
Accrued expenses
|
|
|
150,406
|
|
|
|
130,239
|
|
|
|
15
|
%
|
Income taxes payable
|
|
|
4,564
|
|
|
|
18,274
|
|
|
|
(75
|
%)
|
Deferred revenue
|
|
|
214,891
|
|
|
|
170,143
|
|
|
|
26
|
%
|
Other current liabilities
|
|
|
35,810
|
|
|
|
28,027
|
|
|
|
28
|
%
|
Total current liabilities
|
|
|
590,997
|
|
|
|
675,262
|
|
|
|
(12
|
%)
|
Long-term debt, net
|
|
|
813,989
|
|
|
|
815,630
|
|
|
|
0
|
%
|
Deferred tax liabilities, net
|
|
|
49,360
|
|
|
|
49,722
|
|
|
|
(1
|
%)
|
Accrued pension and other postretirement benefit costs
|
|
|
121,043
|
|
|
|
107,151
|
|
|
|
13
|
%
|
Long-term portion of environmental reserves
|
|
|
14,546
|
|
|
|
14,024
|
|
|
|
4
|
%
|
Other liabilities
|
|
|
118,586
|
|
|
|
84,801
|
|
|
|
40
|
%
|
Total liabilities
|
|
|
1,708,521
|
|
|
|
1,746,590
|
|
|
|
(2
|
%)
|
|
|
|
|
|
|
|
|
|
|
Stockholders' equity
|
|
|
|
|
|
|
|
|
|
Common stock, $1 par value
|
|
|
$
|
49,187
|
|
|
|
$
|
49,187
|
|
|
|
0
|
%
|
Additional paid in capital
|
|
|
120,609
|
|
|
|
129,483
|
|
|
|
(7
|
%)
|
Retained earnings
|
|
|
1,944,324
|
|
|
|
1,754,907
|
|
|
|
11
|
%
|
Accumulated other comprehensive loss
|
|
|
(216,840
|
)
|
|
|
(291,756
|
)
|
|
|
(26
|
%)
|
Less: cost of treasury stock
|
|
|
(369,480
|
)
|
|
|
(350,630
|
)
|
|
|
5
|
%
|
Total stockholders' equity
|
|
|
1,527,800
|
|
|
|
1,291,191
|
|
|
|
18
|
%
|
|
|
|
|
|
|
|
|
|
|
Total liabilities and stockholders' equity
|
|
|
$
|
3,236,321
|
|
|
|
$
|
3,037,781
|
|
|
|
7
|
%
|
|
|
|
|
|
|
|
|
|
|
NM- not meaningful
|
|
|
|
|
|
|
|
|
|
|
CURTISS-WRIGHT CORPORATION and SUBSIDIARIES
|
SEGMENT INFORMATION (UNAUDITED)
|
($'s in thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
|
|
Year Ended
|
|
|
|
December 31,
|
|
December 31,
|
|
|
|
|
|
|
|
Change
|
|
|
|
|
|
Change
|
|
|
|
2017
|
|
2016
|
|
%
|
|
2017
|
|
2016
|
|
%
|
Sales:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial/Industrial
|
|
|
$
|
298,329
|
|
|
$
|
278,346
|
|
|
7
|
%
|
|
$
|
1,162,689
|
|
|
$
|
1,118,768
|
|
|
4
|
%
|
Defense
|
|
|
172,511
|
|
|
133,353
|
|
|
29
|
%
|
|
555,479
|
|
|
466,654
|
|
|
19
|
%
|
Power
|
|
|
141,041
|
|
|
153,867
|
|
|
(8
|
%)
|
|
552,858
|
|
|
523,509
|
|
|
6
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total sales
|
|
|
$
|
611,881
|
|
|
$
|
565,566
|
|
|
8
|
%
|
|
$
|
2,271,026
|
|
|
$
|
2,108,931
|
|
|
8
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating income (expense):
|
|
|
|
|
|
|
|
|
|
|
Commercial/Industrial
|
|
|
$
|
47,240
|
|
|
$
|
48,474
|
|
|
(3
|
%)
|
|
$
|
168,328
|
|
|
$
|
156,550
|
|
|
8
|
%
|
Defense
|
|
|
43,377
|
|
|
34,015
|
|
|
28
|
%
|
|
109,355
|
|
|
98,291
|
|
|
11
|
%
|
Power
|
|
|
24,364
|
|
|
31,600
|
|
|
(23
|
%)
|
|
85,260
|
|
|
76,472
|
|
|
11
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total segments
|
|
|
$
|
114,981
|
|
|
$
|
114,089
|
|
|
1
|
%
|
|
$
|
362,943
|
|
|
$
|
331,313
|
|
|
10
|
%
|
Corporate and other
|
|
|
(6,286
|
)
|
|
(7,916
|
)
|
|
21
|
%
|
|
(23,200
|
)
|
|
(23,215
|
)
|
|
0
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total operating income
|
|
|
$
|
108,695
|
|
|
$
|
106,173
|
|
|
2
|
%
|
|
$
|
339,743
|
|
|
$
|
308,098
|
|
|
10
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating margins:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial/Industrial
|
|
|
15.8
|
%
|
|
17.4
|
%
|
|
(160
|
bps)
|
|
14.5
|
%
|
|
14.0
|
%
|
|
50
|
bps
|
Defense
|
|
|
25.1
|
%
|
|
25.5
|
%
|
|
(40
|
bps)
|
|
19.7
|
%
|
|
21.1
|
%
|
|
(140
|
bps)
|
Power
|
|
|
17.3
|
%
|
|
20.5
|
%
|
|
(320
|
bps)
|
|
15.4
|
%
|
|
14.6
|
%
|
|
80
|
bps
|
Total Curtiss-Wright
|
|
|
17.8
|
%
|
|
18.8
|
%
|
|
(100
|
bps)
|
|
15.0
|
%
|
|
14.6
|
%
|
|
40
|
bps
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Segment margins
|
|
|
18.8
|
%
|
|
20.2
|
%
|
|
(140
|
bps)
|
|
16.0
|
%
|
|
15.7
|
%
|
|
30
|
bps
|
|
CURTISS-WRIGHT CORPORATION and SUBSIDIARIES
|
SALES BY END MARKET (UNAUDITED)
|
($'s in thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
|
|
Year Ended
|
|
|
|
December 31,
|
|
December 31,
|
|
|
|
|
|
|
|
Change
|
|
|
|
|
|
Change
|
|
|
|
2017
|
|
2016
|
|
%
|
|
2017
|
|
2016
|
|
%
|
Defense markets:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Aerospace
|
|
|
$
|
109,294
|
|
|
$
|
80,891
|
|
|
35
|
%
|
|
$
|
355,483
|
|
|
$
|
296,314
|
|
|
20
|
%
|
Ground
|
|
|
29,160
|
|
|
25,626
|
|
|
14
|
%
|
|
94,216
|
|
|
84,288
|
|
|
12
|
%
|
Naval
|
|
|
112,201
|
|
|
104,610
|
|
|
7
|
%
|
|
405,836
|
|
|
401,281
|
|
|
1
|
%
|
Other
|
|
|
3,244
|
|
|
3,699
|
|
|
(12
|
%)
|
|
21,321
|
|
|
11,721
|
|
|
82
|
%
|
Total Defense
|
|
|
$
|
253,899
|
|
|
$
|
214,826
|
|
|
18
|
%
|
|
$
|
876,856
|
|
|
$
|
793,604
|
|
|
10
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial markets:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Aerospace
|
|
|
$
|
106,230
|
|
|
$
|
97,225
|
|
|
9
|
%
|
|
$
|
412,369
|
|
|
$
|
397,327
|
|
|
4
|
%
|
Power Generation
|
|
|
109,783
|
|
|
123,365
|
|
|
(11
|
%)
|
|
423,981
|
|
|
408,509
|
|
|
4
|
%
|
General Industrial
|
|
|
141,969
|
|
|
130,150
|
|
|
9
|
%
|
|
557,820
|
|
|
509,491
|
|
|
9
|
%
|
Total Commercial
|
|
|
$
|
357,982
|
|
|
$
|
350,740
|
|
|
2
|
%
|
|
$
|
1,394,170
|
|
|
$
|
1,315,327
|
|
|
6
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Curtiss-Wright
|
|
|
$
|
611,881
|
|
|
$
|
565,566
|
|
|
8
|
%
|
|
$
|
2,271,026
|
|
|
$
|
2,108,931
|
|
|
8
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CURTISS-WRIGHT CORPORATION and SUBSIDIARIES
|
PROVISION FOR INCOME TAXES (UNAUDITED)
|
($'s in thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
|
|
Year Ended
|
|
|
|
December 31,
|
|
December 31,
|
|
|
|
2017
|
|
ETR
|
|
EPS
|
|
2017
|
|
ETR
|
|
EPS
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Base Provision for Income Taxes
|
|
|
$
|
23,793
|
|
|
24.0
|
%
|
|
|
|
$
|
82,311
|
|
|
27.5
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Impact of share based compensation
|
|
|
$
|
(2,435
|
)
|
|
(2.5
|
)%
|
|
0.05
|
|
|
$
|
(7,807
|
)
|
|
(2.6
|
)%
|
|
0.17
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Impact of TCJA:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Transition Tax
|
|
|
$
|
21,983
|
|
|
|
|
|
|
$
|
21,983
|
|
|
|
|
|
Deferred Tax Revaluation
|
|
|
(11,759
|
)
|
|
|
|
|
|
(11,759
|
)
|
|
|
|
|
|
|
|
$
|
10,224
|
|
|
10.3
|
%
|
|
(0.23
|
)
|
|
$
|
10,224
|
|
|
3.4
|
%
|
|
(0.23
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Final Provision for Income Taxes
|
|
|
$
|
31,582
|
|
|
31.8
|
%
|
|
(0.18
|
)
|
|
$
|
84,728
|
|
|
28.3
|
%
|
|
(0.06
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Use of Non-GAAP Financial Information (Unaudited)
The Corporation supplements its financial information determined under
U.S. generally accepted accounting principles (GAAP) with certain
non-GAAP financial information. Curtiss-Wright believes 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.
Curtiss-Wright encourages investors to review its 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
|
|
|
|
December 31,
|
|
|
|
2017 vs. 2016
|
|
|
|
Commercial/Industrial
|
|
Defense
|
|
Power
|
|
Total Curtiss-Wright
|
|
|
|
Sales
|
|
Operating
income
|
|
Sales
|
|
Operating
income
|
|
Sales
|
|
Operating
income
|
|
Sales
|
|
Operating
income
|
Organic
|
|
|
6
|
%
|
|
(3
|
%)
|
|
9
|
%
|
|
4
|
%
|
|
(8
|
%)
|
|
(23
|
%)
|
|
3
|
%
|
|
(6
|
%)
|
Acquisitions
|
|
|
0
|
%
|
|
0
|
%
|
|
18
|
%
|
|
27
|
%
|
|
0
|
%
|
|
0
|
%
|
|
4
|
%
|
|
9
|
%
|
Foreign Currency
|
|
|
1
|
%
|
|
0
|
%
|
|
2
|
%
|
|
(3
|
%)
|
|
0
|
%
|
|
0
|
%
|
|
1
|
%
|
|
(1
|
%)
|
Total
|
|
|
7
|
%
|
|
(3
|
%)
|
|
29
|
%
|
|
28
|
%
|
|
(8
|
%)
|
|
(23
|
%)
|
8
|
%
|
|
2
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year Ended
|
|
|
|
December 31,
|
|
|
|
2017 vs. 2016
|
|
|
|
Commercial/Industrial
|
|
Defense
|
|
Power
|
|
Total Curtiss-Wright
|
|
|
|
Sales
|
|
Operating
income
|
|
Sales
|
|
Operating
income
|
|
Sales
|
|
Operating
income
|
|
Sales
|
|
Operating
income
|
Organic
|
|
|
4
|
%
|
|
7
|
%
|
|
5
|
%
|
|
4
|
%
|
|
6
|
%
|
|
11
|
%
|
|
5
|
%
|
|
7
|
%
|
Acquisitions
|
|
|
0
|
%
|
|
0
|
%
|
|
14
|
%
|
|
8
|
%
|
|
0
|
%
|
|
0
|
%
|
|
3
|
%
|
|
3
|
%
|
Foreign Currency
|
|
|
0
|
%
|
|
1
|
%
|
|
0
|
%
|
|
(1
|
%)
|
|
0
|
%
|
|
0
|
%
|
|
0
|
%
|
|
0
|
%
|
Total
|
|
|
4
|
%
|
|
8
|
%
|
|
19
|
%
|
|
11
|
%
|
|
6
|
%
|
|
11
|
%
|
8
|
%
|
|
10
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Free Cash Flow and Free Cash Flow Conversion
The Corporation discloses free cash flow because it measures cash flow
available for investing and financing activities. Free cash flow
represents cash available to repay outstanding debt, invest in the
business, acquire businesses, return capital to shareholders and make
other strategic investments. Free cash flow is defined as cash flow
provided by operating activities less capital expenditures. The
Corporation discloses free cash flow conversion because it measures the
proportion of net earnings converted into free cash flow and is defined
as free cash flow divided by net earnings from continuing operations.
|
CURTISS-WRIGHT CORPORATION and SUBSIDIARIES
|
NON-GAAP FINANCIAL DATA (UNAUDITED)
|
($'s in thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
|
|
Year Ended
|
|
|
|
December 31,
|
|
December 31,
|
|
|
|
2017
|
|
2016
|
|
2017
|
|
2016
|
|
|
|
|
|
|
|
|
|
|
Net cash provided by operating activities
|
|
|
$
|
226,405
|
|
|
$
|
155,985
|
|
|
$
|
388,712
|
|
|
$
|
423,197
|
|
Capital expenditures
|
|
|
(17,831
|
)
|
|
(20,649
|
)
|
|
(52,705
|
)
|
|
(46,776
|
)
|
Free cash flow
|
|
|
$
|
208,574
|
|
|
$
|
135,336
|
|
|
$
|
336,007
|
|
|
$
|
376,421
|
|
|
|
|
|
|
|
|
|
|
|
Free Cash Flow Conversion
|
|
|
308
|
%
|
|
192
|
%
|
|
156
|
%
|
|
199
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CURTISS-WRIGHT CORPORATION
|
2018 Guidance (1) (2) (3)
|
As of February 21, 2018
|
($'s in millions, except per share data)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2017
|
|
|
2018 Guidance (Unadjusted)
|
|
|
2018 Adjusted for Pension
Reclassification
|
|
|
|
Reported
|
|
Adj. for
Pension
|
|
|
Low
|
|
High
|
|
2018 %
Change vs
2017
Reported
|
|
|
Low
|
|
High
|
|
2018 %
Change vs
2017
Adjusted
|
Sales:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial/Industrial
|
|
|
$
|
1,163
|
|
|
$
|
1,163
|
|
|
|
$
|
1,183
|
|
|
$
|
1,203
|
|
|
|
|
|
$
|
1,183
|
|
|
$
|
1,203
|
|
|
|
Defense
|
|
|
555
|
|
|
555
|
|
|
|
565
|
|
|
575
|
|
|
|
|
|
565
|
|
|
575
|
|
|
|
Power
|
|
|
553
|
|
|
553
|
|
|
|
587
|
|
|
597
|
|
|
|
|
|
587
|
|
|
597
|
|
|
|
Total sales
|
|
|
$
|
2,271
|
|
|
$
|
2,271
|
|
|
|
$
|
2,335
|
|
|
$
|
2,375
|
|
|
3 to 5%
|
|
|
$
|
2,335
|
|
|
$
|
2,375
|
|
|
3 to 5%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating income:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial/Industrial
|
|
|
$
|
168
|
|
|
$
|
168
|
|
|
|
$
|
175
|
|
|
$
|
180
|
|
|
|
|
|
$
|
174
|
|
|
$
|
179
|
|
|
|
Defense
|
|
|
109
|
|
|
109
|
|
|
|
121
|
|
|
124
|
|
|
|
|
|
121
|
|
|
124
|
|
|
|
Power
|
|
|
85
|
|
|
81
|
|
|
|
96
|
|
|
99
|
|
|
|
|
|
94
|
|
|
97
|
|
|
|
Total segments
|
|
|
363
|
|
|
359
|
|
|
|
392
|
|
|
403
|
|
|
|
|
|
389
|
|
|
400
|
|
|
|
Corporate and other
|
|
|
(23
|
)
|
|
(34
|
)
|
|
|
(23
|
)
|
|
(24
|
)
|
|
|
|
|
(34
|
)
|
|
(35
|
)
|
|
|
Total operating income
|
|
|
$
|
340
|
|
|
$
|
325
|
|
|
|
$
|
369
|
|
|
$
|
379
|
|
|
9 to 12%
|
|
|
$
|
355
|
|
|
$
|
365
|
|
|
9 to 12%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest expense
|
|
|
$
|
(41
|
)
|
|
$
|
(41
|
)
|
|
|
$
|
(37
|
)
|
|
$
|
(38
|
)
|
|
|
|
|
$
|
(37
|
)
|
|
$
|
(38
|
)
|
|
|
Other income, net
|
|
|
1
|
|
|
16
|
|
|
|
—
|
|
|
—
|
|
|
|
|
|
14
|
|
|
14
|
|
|
|
Earnings before income taxes
|
|
|
300
|
|
|
300
|
|
|
|
332
|
|
|
341
|
|
|
|
|
|
332
|
|
|
341
|
|
|
|
Provision for income taxes
|
|
|
(85
|
)
|
|
(85
|
)
|
|
|
(80
|
)
|
|
(82
|
)
|
|
|
|
|
(80
|
)
|
|
(82
|
)
|
|
|
Net earnings
|
|
|
$
|
215
|
|
|
$
|
215
|
|
|
|
$
|
253
|
|
|
$
|
259
|
|
|
|
|
|
$
|
253
|
|
|
$
|
259
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reported diluted earnings per share
|
|
|
$
|
4.80
|
|
|
$
|
4.80
|
|
|
|
$
|
5.65
|
|
|
$
|
5.80
|
|
|
18 to 21%
|
|
|
$
|
5.65
|
|
|
$
|
5.80
|
|
|
18 to 21%
|
Diluted shares outstanding
|
|
|
44.8
|
|
|
44.8
|
|
|
|
44.7
|
|
|
44.7
|
|
|
|
|
|
44.7
|
|
|
44.7
|
|
|
|
Effective tax rate
|
|
|
28.3
|
%
|
|
28.3
|
%
|
|
|
24.0
|
%
|
|
24.0
|
%
|
|
|
|
|
24.0
|
%
|
|
24.0
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating margins:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial/Industrial
|
|
|
14.5
|
%
|
|
14.5
|
%
|
|
|
14.8
|
%
|
|
15.0
|
%
|
|
30 to 50 bps
|
|
|
14.7
|
%
|
|
14.9
|
%
|
|
20 to 40 bps
|
Defense
|
|
|
19.7
|
%
|
|
19.7
|
%
|
|
|
21.4
|
%
|
|
21.6
|
%
|
|
170 to 190 bps
|
|
|
21.3
|
%
|
|
21.5
|
%
|
|
160 to 180 bps
|
Power
|
|
|
15.4
|
%
|
|
14.7
|
%
|
|
|
16.4
|
%
|
|
16.6
|
%
|
|
100 to 120 bps
|
|
|
16.0
|
%
|
|
16.2
|
%
|
|
130 to 150 bps
|
Total operating margin
|
|
|
15.0
|
%
|
|
14.3
|
%
|
|
|
15.8
|
%
|
|
16.0
|
%
|
|
80 to 100 bps
|
|
|
15.2
|
%
|
|
15.4
|
%
|
|
90 to 110 bps
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Note: Full year amounts may not add due to rounding
|
(1) Full-year 2017 and 2018 effective tax rate guidance includes
the impacts of the Tax Cuts and Jobs Act.
|
(2) Full-year 2017 adjusted results and expectations for 2018
guidance include the impacts from the adoption of ASU 2017-07
“Improving the Presentation of Net Periodic Pension Cost and Net
Periodic Postretirement Benefit Cost,” which results in
reclassification of the non-service components of Pension expense
from Operating Income to Other Income/Expense effective for fiscal
years beginning after December 15, 2017. This accounting change
lowers operating income by $14.6 million and $14.0 million,
respectively, and lowers operating margin by 70 and 60 basis
points, respectively, in full-year 2017 and projected full-year
2018 periods. This change is neutral to earnings per share in both
periods.
|
(3) The Company will update its guidance to reflect the financial
impact of the Dresser-Rand business following the closing of the
transaction, currently expected in the second quarter of 2018.
|
|
|
CURTISS-WRIGHT CORPORATION
|
2018 Sales Growth Guidance by End Market (1)
|
As of February 21, 2018
|
|
|
|
2018 % Change vs 2017
|
|
|
Defense Markets
|
|
Aerospace
|
8 - 10%
|
Ground
|
0 - 2%
|
Navy
|
0 - 2%
|
Total Defense
|
3 - 5%
|
(Including Other Defense)
|
|
|
|
Commercial Markets
|
|
Commercial Aerospace
|
0 - 2%
|
Power Generation
|
6 - 8%
|
General Industrial
|
3 - 5%
|
Total Commercial
|
3 - 5%
|
|
|
Total Curtiss-Wright Sales
|
3 - 5%
|
|
|
Notes: Full year amounts may not add due to rounding.
(1) The Company will update its guidance to reflect the
financial impact of the Dresser-Rand government business following
the closing of the transaction, currently expected in the second
quarter of 2018.
|
|
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 8,600 people
worldwide. For more information, visit www.curtisswright.com.
Certain statements made in this press 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
the Company’s acquisitions, 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
the 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, 2016, and
subsequent reports filed with the Securities and Exchange Commission.
This press release and additional information are available at www.curtisswright.com.
View source version on businesswire.com: http://www.businesswire.com/news/home/20180221006468/en/
Source: Curtiss-Wright Corporation