News Details
CURTISS-WRIGHT REPORTS FIRST QUARTER 2022 FINANCIAL RESULTS AND REAFFIRMS FULL-YEAR 2022 GUIDANCE
May 04, 2022
DAVIDSON, N.C.--(BUSINESS WIRE)-- Curtiss-Wright Corporation (NYSE: CW) reports financial results for the first quarter ended March 31, 2022.
first quarter 2022 highlights:
- Reported sales of $559 million, reflecting timing of defense revenues;
- Reported diluted earnings per share (EPS) of $1.05;
- Adjusted diluted EPS of $1.31;
- New orders of $634 million, up 12%, reflecting strong demand within our Aerospace & Defense (A&D) and Commercial markets; and
- Share repurchases of approximately $12 million.
"Curtiss-Wright delivered solid Adjusted diluted EPS of $1.31 in the first quarter, exceeding our expectations, as the benefits of our combined portfolio of businesses enabled us to partially mitigate the headwinds of continued global supply chain disruption and the delayed signing of the FY22 Defense budget," said Lynn M. Bamford, President and CEO of Curtiss-Wright Corporation. "We are greatly encouraged by the double-digit order growth in the first quarter, which builds upon our already strong backlog and provides further confidence in our full-year outlook."
“Looking ahead to the remainder of the year, we anticipate steady, sequential improvement in sales, operating margin, diluted EPS and free cash flow, with a greater percentage of our full-year sales weighted to the second half of the year due to the timing of revenue within our defense markets. Overall, we are maintaining our full-year 2022 guidance for total sales growth of 3% to 5% driven by growth in all of our A&D and Commercial markets, continued operating margin expansion, and double-digit Adjusted diluted EPS growth of 10% to 12%, as we continue to successfully execute on our Pivot to Growth strategy to drive long-term shareholder value.”
first quarter 2022 operating results
(In millions) |
Q1-2022 |
Q1-2021 |
Change |
||||||||
Reported |
|
|
|
||||||||
Sales |
$ |
559 |
|
$ |
597 |
|
(6 |
%) |
|||
Operating income |
$ |
61 |
|
$ |
85 |
|
(29 |
%) |
|||
Operating margin |
|
10.8 |
% |
|
14.2 |
% |
(340 bps) |
||||
|
|
|
|
||||||||
Adjusted (1) |
|
|
|
||||||||
Sales |
$ |
559 |
|
$ |
590 |
|
(5 |
%) |
|||
Operating income |
$ |
71 |
|
$ |
89 |
|
(20 |
%) |
|||
Operating margin |
|
12.7 |
% |
|
15.0 |
% |
(230 bps) |
||||
(1) Reconciliations of Reported to Adjusted operating results are available in the Appendix. |
- Adjusted sales of $559 million, down $30 million, or 5%;
- Total Aerospace & Defense (A&D) market sales decreased 10%, while total Commercial market sales increased 5%;
- In our A&D markets, strong double-digit growth in the commercial aerospace market was more than offset by reductions in our defense markets due to the timing of sales, ongoing supply chain headwinds and the delayed signing of the FY22 defense budget;
- In our Commercial markets, we experienced solid demand in the general industrial market, as well as higher sales within the power & process markets, despite the wind down on the China Direct AP1000 program; and
- Adjusted operating income of $71 million decreased 20%, while Adjusted operating margin decreased 230 basis points to 12.7%, principally driven by unfavorable overhead absorption on lower revenues and mix in our Defense Electronics and Naval & Power segments. These decreases were partially offset by higher revenues and increased profitability in the Aerospace & Industrial segment, as well as the benefits of our ongoing company-wide operational excellence initiatives.
first quarter 2022 segment performance
Aerospace & Industrial
(In millions) |
Q1-2022 |
Q1-2021 |
Change |
||||||||
Reported |
|
|
|
||||||||
Sales |
$ |
191 |
|
$ |
180 |
|
6 |
% |
|||
Operating income |
$ |
25 |
|
$ |
19 |
|
31 |
% |
|||
Operating margin |
|
13.0 |
% |
|
10.6 |
% |
240 bps |
||||
|
|
|
|
||||||||
Adjusted (1) |
|
|
|
||||||||
Sales |
$ |
191 |
|
$ |
178 |
|
8 |
% |
|||
Operating income |
$ |
25 |
|
$ |
19 |
|
34 |
% |
|||
Operating margin |
|
13.0 |
% |
|
10.4 |
% |
260 bps |
||||
(1) Reconciliations of Reported to Adjusted operating results are available in the Appendix. |
- Adjusted sales of $191 million, up $13 million, or 8%;
- Higher commercial aerospace market revenue reflected strong demand for actuation and sensors products, as well as surface treatment services, primarily on narrowbody platforms;
- Higher general industrial market revenue was principally driven by increased sales of industrial vehicle products, most notably serving off-highway platforms;
- Aerospace defense market revenue growth reflected higher sales of actuation products and surface treatment services on the F-35 program, mainly offset by lower sales of sensors equipment on various programs; and
- Adjusted operating income was $25 million, up 34% from the prior year, while Adjusted operating margin increased 260 basis points to 13.0%, reflecting strong absorption on higher sales and the benefits of our ongoing operational excellence and prior year restructuring initiatives.
Defense Electronics
(In millions) |
Q1-2022 |
Q1-2021 |
Change |
||||||||
Reported |
|
|
|
||||||||
Sales |
$ |
143 |
|
$ |
181 |
|
(21 |
%) |
|||
Operating income |
$ |
23 |
|
$ |
37 |
|
(36 |
%) |
|||
Operating margin |
|
16.3 |
% |
|
20.2 |
% |
(390 bps) |
||||
|
|
|
|
||||||||
Adjusted (1) |
|
|
|
||||||||
Sales |
$ |
143 |
|
$ |
182 |
|
(22 |
%) |
|||
Operating income |
$ |
23 |
|
$ |
38 |
|
(39 |
%) |
|||
Operating margin |
|
16.3 |
% |
|
20.9 |
% |
(460 bps) |
||||
(1) Reconciliations of Reported to Adjusted operating results are available in the Appendix. |
- Adjusted sales of $143 million, down $39 million, or 22%, principally reflected the timing of sales within our aerospace and ground defense markets as certain revenues shifted out of the first quarter of 2022 due to ongoing supply chain headwinds and the delayed signing of the FY22 defense budget;
- Naval defense market revenue declines primarily reflected the timing of revenues on the Virginia-class submarine program and various surface ships; and
- Adjusted operating income was $23 million, down 39% from the prior year, while adjusted operating margin decreased 460 basis points to 16.3%, primarily reflecting reduced absorption and unfavorable mix on lower defense sales, which more than offset the benefits of our ongoing operational excellence initiatives.
Naval & Power
(In millions) |
Q1-2022 |
Q1-2021 |
Change |
|||||||
Reported |
|
|
|
|||||||
Sales |
$ |
225 |
|
$ |
236 |
|
(4 |
%) |
||
Operating income |
$ |
27 |
|
$ |
38 |
|
(28 |
%) |
||
Operating margin |
|
12.1 |
% |
|
16.2 |
% |
(410 bps) |
|||
|
|
|
|
|||||||
Adjusted (1) |
|
|
|
|||||||
Sales |
$ |
225 |
|
$ |
230 |
|
(2 |
%) |
||
Operating income |
$ |
33 |
|
$ |
41 |
|
(20 |
%) |
||
Operating margin |
|
14.5 |
% |
|
17.7 |
% |
(320 bps) |
|||
(1) Reconciliations of Reported to Adjusted operating results are available in the Appendix. |
- Adjusted sales of $225 million, down $5 million, or 2%;
- Naval defense market revenue declines primarily reflected lower revenues on the CVN-80 aircraft carrier and Virginia-class submarine programs, partially offset by higher revenues on the CVN-81 aircraft carrier and Columbia-class submarine programs;
- Higher power & process market sales reflected strong growth in nuclear aftermarket revenues supporting the maintenance of existing operating reactors and strong industrial valve demand in the process market; Those increases were mainly offset by the timing of production on the China Direct AP1000 program; and
- Adjusted operating income was $33 million, down 20% from the prior year, while adjusted operating margin decreased 320 basis points to 14.5%, driven by unfavorable absorption on lower naval defense market revenues and unfavorable mix in the power & process market.
free cash flow
(In millions) |
Q1-2022 |
Q1-2021 |
Change |
||||||||
Net cash used for operating activities |
$ |
(124 |
) |
$ |
(27 |
) |
(367 |
%) |
|||
Capital expenditures |
(11 |
) |
(9 |
) |
(28 |
%) |
|||||
Reported free cash flow |
$ |
(135 |
) |
$ |
(35 |
) |
(285 |
%) |
|||
Adjusted free cash flow (1) |
$ |
(112 |
) |
$ |
(35 |
) |
(219 |
%) |
|||
(1) A reconciliation of Reported to Adjusted free cash flow is available in the Appendix. |
- Reported free cash flow of ($135) million decreased approximately $100 million, primarily due to higher working capital and the Westinghouse legal settlement payment;
- Adjusted free cash flow of ($112) million decreased $77 million; and
- Capital expenditures increased $2 million compared with the prior year, primarily due to higher capital investments within the Aerospace & Industrial segment.
new orders and backlog
- New orders of $634 million increased 12% and generated an overall book-to-bill that exceeded 1.1x, principally driven by solid demand for naval defense and commercial aerospace products within our A&D markets, and for industrial vehicle products within our Commercial markets; and
- Backlog of $2.3 billion, up 3% from December 31, 2021, reflects higher demand in both our A&D and commercial markets.
share repurchase and dividends
- During the first quarter, the Company repurchased 87,303 shares of its common stock for approximately $12 million; and
- The Company also declared a quarterly dividend of $0.18 a share, unchanged from the previous quarter.
other items - westinghouse legal settlement
- In February 2022, the Company and Westinghouse reached an agreement to settle all open claims and counterclaims under the AP1000 U.S. and China contracts;
- The Company’s 2021 and 2022 non-GAAP results have been adjusted for this legal matter;
- The Company recorded full-year charges of approximately $13 million in 2021 related to this matter; and
- The terms of the settlement require a $25 million cash payment, with $15 million paid in the first quarter of 2022 and $10 million to be paid in the first quarter of 2023.
full-year 2022 guidance
The Company maintains its full-year 2022 Adjusted financial guidance (1) as follows:
(In millions, except EPS) |
2022 Adjusted |
% Chg vs 2021 |
||
Total Sales |
$2,530 - $2,580 |
Up 3% - 5% |
||
Operating Income |
$432 - $446 |
Up 3% - 6% |
||
Operating Margin |
17.1% - 17.3% |
Up 10 - 30 bps |
||
Diluted EPS |
$8.05 - $8.25 |
Up 10% - 12% |
||
Free Cash Flow (2) |
$345 - $365 |
Up 0% - 5% |
||
(1) Reconciliations of Reported to Adjusted 2021 operating results and 2022 financial guidance are available in the Appendix. |
||||
(2) 2022 Adjusted Free Cash Flow includes $50 - $60 million in capital expenditures, compared with $41 million in 2021. |
A more detailed breakdown of the Company’s 2022 financial guidance by segment and by market, as well as all reconciliations of Reported GAAP amounts to Adjusted non-GAAP amounts can be found in the accompanying schedules. Historical financial results are available in the Investor Relations section of Curtiss-Wright’s website.
conference call & webcast information
The Company will host a conference call to discuss first quarter 2022 financial results and updates to 2022 guidance at 10:00 a.m. ET on Thursday, May 5, 2022. A live webcast of the call and the accompanying financial presentation, as well as a replay of the call, will be made available on the internet by visiting the Investor Relations section of the Company’s website at www.curtisswright.com.
(Tables to Follow)
CURTISS-WRIGHT CORPORATION and SUBSIDIARIES |
||||||||
CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS (UNAUDITED) |
||||||||
($'s in thousands, except per share data) |
||||||||
|
Three Months Ended |
|||||||
|
March 31, |
|||||||
|
2022 |
|
2021 |
|||||
Product sales |
$ |
453,421 |
|
|
$ |
508,975 |
|
|
Service sales |
|
106,040 |
|
|
|
88,084 |
|
|
Total net sales |
|
559,461 |
|
|
|
597,059 |
|
|
|
|
|
|
|||||
Cost of product sales |
|
294,527 |
|
|
|
329,454 |
|
|
Cost of service sales |
|
63,532 |
|
|
|
57,848 |
|
|
Total cost of sales |
|
358,059 |
|
|
|
387,302 |
|
|
|
|
|
|
|||||
Gross profit |
|
201,402 |
|
|
|
209,757 |
|
|
|
|
|
|
|||||
Research and development expenses |
|
20,549 |
|
|
|
21,863 |
|
|
Selling expenses |
|
28,092 |
|
|
|
29,596 |
|
|
General and administrative expenses |
|
87,600 |
|
|
|
73,232 |
|
|
Loss on divestiture |
|
4,651 |
|
|
|
— |
|
|
|
|
|
|
|||||
Operating income |
|
60,510 |
|
|
|
85,066 |
|
|
|
|
|
|
|||||
Interest expense |
|
9,530 |
|
|
|
9,959 |
|
|
Other income, net |
|
2,997 |
|
|
|
4,843 |
|
|
|
|
|
|
|||||
Earnings before income taxes |
|
53,977 |
|
|
|
79,950 |
|
|
Provision for income taxes |
|
(13,292 |
) |
|
|
(20,481 |
) |
|
Net earnings |
$ |
40,685 |
|
|
$ |
59,469 |
|
|
|
|
|
|
|||||
Net earnings per share: |
|
|
|
|||||
Basic earnings per share |
$ |
1.06 |
|
|
$ |
1.45 |
|
|
Diluted earnings per share |
$ |
1.05 |
|
|
$ |
1.45 |
|
|
|
|
|
|
|||||
Dividends per share |
$ |
0.18 |
|
|
$ |
0.17 |
|
|
|
|
|
|
|||||
Weighted average shares outstanding: |
|
|
|
|||||
Basic |
|
38,456 |
|
|
|
40,933 |
|
|
Diluted |
|
38,668 |
|
|
|
41,103 |
|
CURTISS-WRIGHT CORPORATION and SUBSIDIARIES |
||||||||
CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED) |
||||||||
($'s in thousands, except par value) |
||||||||
|
March 31, |
|
December 31, |
|||||
|
2022 |
|
2021 |
|||||
Assets |
|
|
|
|||||
Current assets: |
|
|
|
|||||
Cash and cash equivalents |
$ |
136,682 |
|
|
$ |
171,004 |
|
|
Receivables, net |
|
661,129 |
|
|
|
647,148 |
|
|
Inventories, net |
|
448,122 |
|
|
|
411,567 |
|
|
Assets held for sale |
|
— |
|
|
|
10,988 |
|
|
Other current assets |
|
63,942 |
|
|
|
67,101 |
|
|
Total current assets |
|
1,309,875 |
|
|
|
1,307,808 |
|
|
Property, plant, and equipment, net |
|
355,363 |
|
|
|
360,031 |
|
|
Goodwill |
|
1,458,899 |
|
|
|
1,463,026 |
|
|
Other intangible assets, net |
|
523,913 |
|
|
|
538,077 |
|
|
Operating lease right-of-use assets, net |
|
147,224 |
|
|
|
143,613 |
|
|
Prepaid pension asset |
|
260,238 |
|
|
|
256,422 |
|
|
Other assets |
|
33,855 |
|
|
|
34,568 |
|
|
Total assets |
$ |
4,089,367 |
|
|
$ |
4,103,545 |
|
|
|
|
|
|
|||||
Liabilities |
|
|
|
|||||
Current liabilities: |
|
|
|
|||||
Current portion of long-term and short term debt |
$ |
202,500 |
|
|
$ |
— |
|
|
Accounts payable |
|
168,772 |
|
|
|
211,640 |
|
|
Accrued expenses |
|
109,077 |
|
|
|
144,466 |
|
|
Income taxes payable |
|
1,478 |
|
|
|
3,235 |
|
|
Deferred revenue |
|
224,679 |
|
|
|
260,157 |
|
|
Liabilities held for sale |
|
— |
|
|
|
12,655 |
|
|
Other current liabilities |
|
93,745 |
|
|
|
102,714 |
|
|
Total current liabilities |
|
800,251 |
|
|
|
734,867 |
|
|
Long-term debt, net |
|
967,744 |
|
|
|
1,050,610 |
|
|
Deferred tax liabilities |
|
150,085 |
|
|
|
147,349 |
|
|
Accrued pension and other postretirement benefit costs |
|
84,610 |
|
|
|
91,329 |
|
|
Long-term operating lease liability |
|
128,897 |
|
|
|
127,152 |
|
|
Long-term portion of environmental reserves |
|
13,924 |
|
|
|
13,656 |
|
|
Other liabilities |
|
94,436 |
|
|
|
112,092 |
|
|
Total liabilities |
|
2,239,947 |
|
|
|
2,277,055 |
|
|
|
|
|
|
|||||
Stockholders' equity |
|
|
|
|||||
Common stock, $1 par value |
$ |
49,187 |
|
|
$ |
49,187 |
|
|
Additional paid in capital |
|
122,603 |
|
|
|
127,104 |
|
|
Retained earnings |
|
2,942,580 |
|
|
|
2,908,827 |
|
|
Accumulated other comprehensive loss |
|
(191,524 |
) |
|
|
(190,465 |
) |
|
Less: cost of treasury stock |
|
(1,073,426 |
) |
|
|
(1,068,163 |
) |
|
Total stockholders' equity |
|
1,849,420 |
|
|
|
1,826,490 |
|
|
|
|
|
|
|||||
Total liabilities and stockholders' equity |
$ |
4,089,367 |
|
|
$ |
4,103,545 |
|
Use and Definitions 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 Adjusted (non-GAAP) measures provide investors with improved transparency in order to better measure Curtiss-Wright’s ongoing operating and financial performance and better comparisons of our key financial metrics to our peers. 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. Reconciliations of “Reported” GAAP amounts to “Adjusted” non-GAAP amounts are furnished within this release.
The following definitions are provided:
Adjusted Sales, Operating Income, Operating Margin, Net Earnings and Diluted EPS
These Adjusted financials are defined as Reported Sales, Operating Income, Operating Margin, Net Earnings and Diluted Earnings per Share under GAAP excluding: (i) the impact of first year purchase accounting costs associated with acquisitions in the prior year, specifically one-time inventory step-up, backlog amortization, deferred revenue adjustments and transaction costs; (ii) the sale or divestiture of a business or product line; (iii) pension settlement charges; and (iv) significant legal settlements, impairment costs, and costs associated with shareholder activism, as applicable.
CURTISS-WRIGHT CORPORATION and SUBSIDIARIES |
|||||||||||||||||||||||||||||
RECONCILIATION OF AS REPORTED TO ADJUSTED (UNAUDITED) |
|||||||||||||||||||||||||||||
($'s in thousands) |
|||||||||||||||||||||||||||||
|
Three Months Ended |
|
Three Months Ended |
|
|
|
|
||||||||||||||||||||||
|
March 31, 2022 |
|
March 31, 2021 |
|
% Change |
||||||||||||||||||||||||
|
As Reported |
|
Adjustments |
|
Adjusted |
|
As Reported |
|
Adjustments |
|
Adjusted |
|
Reported |
|
Adjusted |
||||||||||||||
Sales: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Aerospace & Industrial (1) |
$ |
191,112 |
|
|
$ |
— |
|
$ |
191,112 |
|
|
$ |
180,331 |
|
|
$ |
(2,599 |
) |
|
$ |
177,732 |
|
|
6 |
% |
|
8 |
% |
|
Defense Electronics (2) |
|
143,069 |
|
|
|
— |
|
|
143,069 |
|
|
|
181,212 |
|
|
|
1,080 |
|
|
|
182,292 |
|
|
(21 |
)% |
|
(22 |
)% |
|
Naval & Power (3) |
|
225,280 |
|
|
|
— |
|
|
225,280 |
|
|
|
235,516 |
|
|
|
(5,583 |
) |
|
|
229,933 |
|
|
(4 |
)% |
|
(2 |
)% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Total sales |
$ |
559,461 |
|
|
$ |
— |
|
$ |
559,461 |
|
|
$ |
597,059 |
|
|
$ |
(7,102 |
) |
|
$ |
589,957 |
|
|
(6 |
)% |
|
(5 |
)% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Operating income (expense): |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Aerospace & Industrial (1) |
$ |
24,853 |
|
|
$ |
— |
|
$ |
24,853 |
|
|
$ |
19,025 |
|
|
$ |
(476 |
) |
|
$ |
18,549 |
|
|
31 |
% |
|
34 |
% |
|
Defense Electronics (2) |
|
23,290 |
|
|
|
— |
|
|
23,290 |
|
|
|
36,623 |
|
|
|
1,560 |
|
|
|
38,183 |
|
|
(36 |
)% |
|
(39 |
)% |
|
Naval & Power (3) |
|
27,288 |
|
|
|
5,427 |
|
|
32,715 |
|
|
|
38,057 |
|
|
|
2,589 |
|
|
|
40,646 |
|
|
(28 |
)% |
|
(20 |
) % |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Total segments |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Corporate and other (4) |
|
(14,921 |
) |
|
|
4,876 |
|
|
(10,045 |
) |
|
|
(8,639 |
) |
|
|
45 |
|
|
|
(8,594 |
) |
|
(73 |
)% |
|
(17 |
)% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Total operating income |
$ |
60,510 |
|
|
$ |
10,303 |
|
$ |
70,813 |
|
|
$ |
85,066 |
|
|
$ |
3,718 |
|
|
$ |
88,784 |
|
|
(29 |
)% |
|
(20 |
)% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Operating margins: |
As Reported |
|
|
|
Adjusted |
|
As Reported |
|
|
|
Adjusted |
|
Reported |
|
Adjusted |
||||||||||||||
Aerospace & Industrial |
|
13.0 |
% |
|
|
|
|
13.0 |
% |
|
|
10.6 |
% |
|
|
|
|
10.4 |
% |
|
240 bps |
|
260 bps |
||||||
Defense Electronics |
|
16.3 |
% |
|
|
|
|
16.3 |
% |
|
|
20.2 |
% |
|
|
|
|
20.9 |
% |
|
(390 bps) |
|
(460 bps) |
||||||
Naval & Power |
|
12.1 |
% |
|
|
|
|
14.5 |
% |
|
|
16.2 |
% |
|
|
|
|
17.7 |
% |
|
(410 bps) |
|
(320 bps) |
||||||
Total Curtiss-Wright |
|
10.8 |
% |
|
|
|
|
12.7 |
% |
|
|
14.2 |
% |
|
|
|
|
15.0 |
% |
|
(340 bps) |
|
(230 bps) |
||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Segment margins |
|
13.5 |
% |
|
|
|
|
14.5 |
% |
|
|
15.7 |
% |
|
|
|
|
16.5 |
% |
|
(220 bps) |
|
(200 bps) |
||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
(1) Excludes our build-to-print actuation product line supporting the Boeing 737 Max program, which we substantially exited in the fourth quarter of 2020. |
|||||||||||||||||||||||||||||
(2) Excludes first year purchase accounting adjustments in the prior period. |
|||||||||||||||||||||||||||||
(3) Excludes the results of operations from our German valves business, which was sold in January 2022, and the loss on divestiture in the current period. |
|||||||||||||||||||||||||||||
(4) Excludes costs associated with shareholder activism in the current period. |
|||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CURTISS-WRIGHT CORPORATION and SUBSIDIARIES |
|||||||||||||||||||||||||
RECONCILIATION OF AS REPORTED SALES TO ADJUSTED SALES BY END MARKET (UNAUDITED) |
|||||||||||||||||||||||||
($'s in thousands) |
|||||||||||||||||||||||||
|
|
Three Months Ended |
|
Three Months Ended |
|
|
|
||||||||||||||||||
|
|
March 31, 2022 |
|
March 31, 2021 |
|
2022 vs. 2021 |
|||||||||||||||||||
Reported |
Reported |
Change in |
Change in |
||||||||||||||||||||||
|
|
Sales |
|
Adjustments |
|
Adjusted Sales |
|
Sales |
|
Adjustments |
|
Adjusted Sales |
|
Reported Sales |
Adjusted Sales |
||||||||||
Aerospace & Defense markets: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Aerospace Defense |
|
$ |
98,004 |
|
$ |
— |
|
$ |
98,004 |
|
$ |
111,016 |
|
$ |
— |
|
|
$ |
111,016 |
|
(12 |
%) |
(12 |
%) |
|
Ground Defense (1) |
|
|
39,108 |
|
|
— |
|
|
39,108 |
|
|
55,746 |
|
|
1,080 |
|
|
|
56,826 |
|
(30 |
%) |
(31 |
%) |
|
Naval Defense |
|
|
162,967 |
|
|
— |
|
|
162,967 |
|
|
177,905 |
|
|
— |
|
|
|
177,905 |
|
(8 |
%) |
(8 |
%) |
|
Commercial Aerospace (2) |
|
|
60,892 |
|
|
— |
|
|
60,892 |
|
|
57,269 |
|
|
(2,599 |
) |
|
|
54,670 |
|
6 |
% |
11 |
% |
|
Total Aerospace & Defense |
|
$ |
360,971 |
|
$ |
— |
|
$ |
360,971 |
|
$ |
401,936 |
|
$ |
(1,519 |
) |
|
$ |
400,417 |
|
(10 |
%) |
(10 |
%) |
|
|
|||||||||||||||||||||||||
Commercial markets: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Power & Process (3) |
|
|
104,788 |
|
|
— |
|
|
104,788 |
|
|
105,504 |
|
|
(5,583 |
) |
|
|
99,921 |
|
(1 |
%) |
5 |
% |
|
General Industrial |
|
|
93,702 |
|
|
— |
|
|
93,702 |
|
|
89,619 |
|
|
— |
|
|
|
89,619 |
|
5 |
% |
5 |
% |
|
Total Commercial |
|
$ |
198,490 |
|
$ |
— |
|
$ |
198,490 |
|
$ |
195,123 |
|
$ |
(5,583 |
) |
|
$ |
189,540 |
|
2 |
% |
5 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Total Curtiss-Wright |
|
$ |
559,461 |
|
$ |
— |
|
$ |
559,461 |
|
$ |
597,059 |
|
$ |
(7,102 |
) |
|
$ |
589,957 |
|
(6 |
%) |
(5 |
%) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
(1) Excludes first year purchase accounting adjustments in the prior period. |
|||||||||||||||||||||||||
(2) Excludes our build-to-print actuation product line supporting the Boeing 737 MAX program, which we substantially exited in the fourth quarter of 2020. |
|||||||||||||||||||||||||
(3) Excludes the prior period results of our German valves business, which was sold in January 2022. |
CURTISS-WRIGHT CORPORATION and SUBSIDIARIES |
|||||||
RECONCILIATION OF AS REPORTED TO ADJUSTED DILUTED EARNINGS PER SHARE (UNAUDITED) |
|||||||
|
Three Months Ended |
||||||
|
March 31, |
||||||
|
2022 |
|
2021 |
||||
Diluted earnings per share - As Reported |
$ |
1.05 |
|
$ |
1.45 |
|
|
Divested German valves business |
|
0.11 |
|
|
0.04 |
|
|
Costs associated with shareholder activism |
|
0.10 |
|
|
— |
|
|
Former executive pension settlement expense |
|
0.05 |
|
|
— |
|
|
First year purchase accounting adjustments |
|
— |
|
|
0.03 |
|
|
Exit of build-to-print actuation product line |
|
— |
|
|
(0.01 |
) |
|
Diluted earnings per share - Adjusted (1) |
$ |
1.31 |
|
$ |
1.51 |
|
|
|
|
|
|
||||
(1) All adjustments are presented net of income taxes. |
Organic Sales and Organic Operating Income
The Corporation discloses organic sales and organic operating income because the Corporation believes it provides investors with insight as to the Company’s ongoing business performance. Organic sales and organic operating income are defined as sales and operating income, excluding contributions from acquisitions made during the last twelve months, loss on divestiture of the German valves business, and foreign currency fluctuations.
|
Three Months Ended |
|||||||||||||||
|
March 31, |
|||||||||||||||
|
2022 vs. 2021 |
|||||||||||||||
|
Aerospace & Industrial |
|
Defense Electronics |
|
Naval & Power |
|
Total Curtiss-Wright |
|||||||||
|
Sales |
|
Operating income |
|
Sales |
|
Operating income |
|
Sales |
|
Operating income |
|
Sales |
|
Operating income |
|
As Reported |
6% |