SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

FORM 8-K

CURRENT REPORT

Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

Date of Report (Date of earliest event reported): October 28, 2010
CURTISS-WRIGHT CORPORATION
( Exact Name of Registrant as Specified in Its Charter)

Delaware	 
1-134
 	 
13-0612970
 	
State or Other
Jurisdiction of
Incorporation or
Organization	Commission File
Number	IRS Employer
Identification No.

 	
 
10 Waterview Boulevard                              
Parsippany, New Jersey                                                                            07054
Address of Principal Executive Offices                                                Zip Code

Registrant's telephone number, including area code: (973) 541-3700
--------------
(Former name or former address, if changed since last report)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):

[ ] Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
[ ] Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
[ ] Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

[ ] Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

 

SECTION 2 – FINANCIAL INFORMATION
  
ITEM 2.02.   RESULTS OF OPERATIONS AND FINANCIAL CONDITION .

On Thursday, October 28, 2010, the Company issued a press release announcing financial results for the third quarter ended September 30, 2010.  A copy of this press release is attached hereto as Exhibit 99.1.  A conference call and webcast presentation will be held on Friday, October 29, 2010 at 10:00 am EDT for management to discuss the Company's 2010 third quarter performance.  Martin R. Benante, Chairman and CEO, and Glenn E. Tynan, CFO, will host the call.

The financial press release and access to the webcast will be posted on Curtiss-Wright's website at www.curtisswright.com .  For those unable to participate, a webcast replay will be available for 90 days on the Company's website beginning one hour after the call takes place. A conference call replay will also be available for 30 days.

Conference Call Replay:

                                 Domestic                  (800) 642-1687

                                 International             (706) 645-9291

                                 Passcode                  13701492

 
The information contained in this Current Report, including Exhibit 99.1, is being furnished and shall not be deemed to be “filed” for the purposes of Section 18 of the Securities and Exchange Act of 1934 or otherwise subject to the liabilities of that Section. The information in this report shall not be incorporated by reference into any filing of the registrant with the SEC, whether made before or after the date hereof, regardless of any general incorporation language in such filings.

ITEM 9.01 FINANCIAL STATEMENTS AND EXHIBITS.

         (a)  Not applicable.

         (b)  Not applicable.

         (c)  Exhibits.

              99.1 Press Release dated October 28, 2010

 

 

 	 	 	 	

SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

                                                                             CURTISS-WRIGHT CORPORATION

                                                      By: /s/ Glenn E. Tynan
               Glenn E. Tynan.
                       Vice-President and Chief Financial Officer

Date:           October 28, 2010

 

 

EXHIBIT INDEX

Exhibit
Number	 	Description	 	
 	 	 	 	
99.1	 	                                      Press Release, dated October 28, 2010	 	

 

 

                                                                          EXHIBIT 99.1

                                                                                               

 FOR IMMEDIATE RELEASE

CURTISS-WRIGHT REPORTS THIRD QUARTER AND NINE MONTHS 2010 FINANCIAL RESULTS
- - -
Net Sales Increase 7%; Operating Income Increases 33%; Operating Margin Improves 200 Basis Points; Net Earnings Increase 38%
 
PARSIPPANY, NJ – October 28 , 2010 – Curtiss-Wright Corporation (NYSE: CW) today reports financial results for the third quarter and nine months ended September 30, 2010. The highlights are as follows (For discussion purposes the term “organic” excludes the year over year impact of foreign currency translation and the results of our acquisitions and divestitures over the past twelve months):

Third Quarter 2010 Operating Highlights
 
 	Net sales increased 7% to $466 million from $436 million in 2009;	

 	Operating income increased 33% to $48 million from $36 million in 2009;	
 
 	Net earnings increased 38% to $28 million, or $0.60 per diluted share, from $20 million, or $0.44 per diluted share, in 2009;  and	

  	New orders were $465 million, up 10% from 2009.	

Nine Months 2010 Operating Highlights

 	Net sales increased 5% to $1.37 billion from $1.31 billion in 2009;	

 	Operating income increased 10% to $123 million from $111 million in 2009; organic operating income, which excludes $8 million of negative foreign currency translation,  increased 18% to $131 million from $111 million in 2009;	
 
 	Net earnings increased 16% to $70 million, or $1.51 per diluted share, from $60 million, or $1.32 per diluted share, in 2009; and	

  	New orders were $1.36 billion, up 6% compared to 2009. At September 30, 2010, our backlog was $1.63 billion and was essentially flat with our backlog at December 31, 2009.	

 

“Curtiss-Wright delivered a strong third quarter with significantly higher revenues, operating income and operating margins across all three of our business segments,” commented Martin R. Benante, Chairman and CEO of Curtiss-Wright Corporation.  “I am particularly pleased with our strong operating performance despite having to overcome the cancellation of the F-22 and Future Combat Systems programs, delays in customer capital spending in certain areas of our oil and gas business and negative foreign currency translation. Despite these challenges, our revenues were up 7% and operating margin was up 200 basis points over the prior year quarter with each of our segments contributing a triple-digit basis point improvement. This operating margin expansion was driven by favorable absorption of fixed overhead costs and benefits generated from our cost reduction and restructuring programs.
 
From a market perspective, sales growth in our commercial markets increased 8%, led by a strong rebound in our general industrial market and solid gains in commercial aerospace. In addition, our defense markets grew 6% as strong double-digit growth in both our aerospace and naval defense markets more than offset the anticipated decline in ground defense. We continue to see a positive recovery in markets that are sensitive to general economic conditions, particularly in our general industrial market, which grew 35% over the prior year quarter, with each of our three segments contributing double-digit sales growth.”

Sales
 
Sales of $466 million in the third quarter of 2010 increased $30 million, or 7%, as compared to the prior year period.  The sales increase was driven by higher organic sales of 5%, or $24 million, and $8 million of incremental sales from our 2009 and 2010 acquisitions of Skyquest Systems Ltd., Hybricon Corporation, and Specialist Electronics Services, Ltd.  In addition, foreign currency translation negatively impacted sales by $2 million during the third quarter. The sales increase was generated across all three segments with increases in our Metal Treatment, Motion Control, and Flow Control segments of 10%, 9%, and 5%, respectively.

Sales in our commercial markets grew 8% in the third quarter of 2010, led by strong increases in our general industrial and commercial aerospace markets which grew 35% and 11%, respectively. These increases were partially offset by slight declines in our commercial power and oil and gas markets, which decreased 3% and 2%, respectively, as compared to the prior year period. Our defense markets also experienced growth of 6%, led by strong increases in both aerospace and naval defense, which grew 19% and 14%, respectively, over the prior year quarter. As expected, our ground defense market was down 33% due to the cancellation of the Future Combat Systems (“FCS”) and lower sales on the Bradley platform.
 
Operating Income
 
Operating income of $48 million in the third quarter of 2010 increased $12 million, or 33%, as compared to the prior year period. Organic operating income increased $13 million, or 35%, while foreign currency translation negatively impacted operating income by $1 million. Incremental operating income from our 2009 and 2010 acquisitions had a minimal impact on the third quarter of 2010. Operating income growth was generated across all three of our segments with increases of 32% in Motion Control, 30% in Metal Treatment and 17% in Flow Control.

In the third quarter of 2010, consolidated operating margin was 10.3%, a 200 basis point improvement from the prior year period, mainly driven by our segment operating margin performance which increased by 160 basis points to 11.5%.  The segment operating margin increase was due to favorable absorption of fixed overhead costs and benefits generated from our cost reduction and restructuring programs. Non-segment operating costs of $5 million in the third quarter of 2010 were lower by $2 million as compared to the prior year quarter. This decrease was due to foreign exchange transaction gains recognized in the third quarter of 2010 and lower pension costs due to a non-recurring unfavorable adjustment that was recorded in the third quarter of 2009. These improvements were partially offset by higher compensation and medical costs.
 
Net Earnings

Net earnings for the third quarter of 2010 increased 38% from the comparable prior year period.  The improvement was due to the strong overall operational performance. Interest expense for the third quarter of 2010 was down 2% as compared to the prior year quarter due to lower average debt levels. Our effective tax rate for the third quarter of 2010 was 34.4% versus 34.3% for the third quarter of 2009.

Cash Flow

Our free cash flow was $19 million for the third quarter of 2010, a $5 million decrease as compared to the prior year period. Net cash provided by operating activities in the third quarter of 2010 was $35 million, a decrease of $12 million from the prior year. This decrease was mainly due to lower deferred revenue and higher unbilled receivables on long-term contracts, partially offset by higher net earnings. Capital expenditures were $16 million in the third quarter of 2010 versus $23 million in the comparable prior year period. The AP1000 program accounted for the majority of the decrease as our facility expansion was completed in the fourth quarter of 2009.

Segment Performance
 
Flow Control – Sales for the third quarter of 2010 were $249 million, an increase of $11 million, or 5%, over the prior year period. Acquisitions and foreign currency translation had a minimal impact on the third quarter of 2010. The sales increase was mainly driven by strong double-digit growth in our naval defense market, which had strong increases in the Virginia class submarine program as we ramp up procurement from one to two submarines per year. In addition, we had higher sales resulting from increases in production on the CVN-79 Ford class aircraft carrier program, as well as increased sales of our helicopter handling systems. These increases were partially offset by a reduction in production on the DDG1000 destroyer program as we near completion on the third and final ship. Sales in our commercial markets were essentially flat, as strong growth in our general industrial market was mostly offset by a decline in commercial power. The increase in the general industrial market resulted from higher demand in the industrial heating, ventilation, and air conditioning (“HVAC”) industry.  The sales decline in our commercial power market was largely due to lower sales for the AP1000 nuclear reactors in China due to the timing of the project completion. Within our oil and gas market, our sales decreased slightly due to continued delays in customer capital spending.
 
Operating income in the third quarter of 2010 was $26 million, an increase of $4 million, or 17%, over the comparable prior year period. Acquisitions and foreign currency translation had a minimal impact on our third quarter operating income. Operating margin was 10.4%, an increase of 100 basis points over the prior year period. This significant improvement was due to improved absorption of fixed overhead costs and benefits generated by our cost reduction and restructuring programs.
 
Motion Control – Sales for the third quarter of 2010 were $162 million, an increase of $14 million, or 9%, over the prior year period. Organic sales increased $7 million, or 4%, as compared to the prior year period, while incremental sales from our 2009 and 2010 acquisitions added $8 million to the third quarter of 2010. In addition, unfavorable foreign currency translation reduced sales by $1 million during the third quarter of 2010, as compared to the prior year.

The organic sales increase was driven by higher sales in our commercial markets, in particular by our general industrial market which grew 80% over the prior year quarter.  Due to improving economic conditions, we have experienced year over year growth in this market for three consecutive quarters. In addition, commercial aerospace had higher sales due to increased demand for our products used on commercial aircraft, particularly on the Boeing 787 program as production levels continue to ramp up. The positive performance in our commercial markets was partially offset by a decline in defense due to an expected reduction in ground defense, mainly driven by the cancellation of the FCS program, as well as lower sales for the Bradley Fighting Vehicle. This sales decrease was largely mitigated by a strong performance in aerospace defense, primarily from higher sales on the Global Hawk Unmanned Aerial Vehicle program, as well as higher demand from international aircraft and helicopter programs.

Operating income for the third quarter of 2010 amounted to $22 million, an increase of $5 million, or 32%, as compared to the prior year period. Incremental operating income from our 2009 and 2010 acquisitions had a minimal impact during the third quarter of 2010, while foreign currency translation negatively impacted operating income by nearly $1 million as compared to the prior year. Operating margin was 13.4%, an increase of 230 basis points over the prior year period. This significant improvement was due to higher gross margins resulting from favorable absorption of fixed overhead costs and benefits generated by our cost reduction and restructuring programs.

Metal Treatment – Sales for the third quarter of 2010 were $54 million, an increase of $5 million, or 10%, as compared to the prior year period. Sales increased by $6 million, or 12%, excluding foreign currency translation, which negatively impacted sales by $1 million during the third quarter of 2010. There were no incremental sales from acquisitions during the third quarter of 2010. Organic sales increased across our major commercial markets, most notably general industrial, automotive and commercial aerospace.
 
Operating income in the third quarter of 2010 amounted to approximately $6 million, an increase of $1 million, or 30%, as compared to the prior year period. Foreign currency translation had a minimal impact on operating income during the third quarter of 2010.  Operating margin amounted to 10.4%, a 160 basis point improvement over the prior year. This significant improvement was primarily driven by higher volumes resulting in favorable absorption of fixed overhead costs as well as benefits generated from our cost reduction and restructuring programs, which were partially offset by higher compensation costs as well as start-up costs for expansion into international markets. 
 
Full Year 2010 Guidance

The Company is reaffirming its full year 2010 financial guidance as follows:

·	Total Sales	 	$1.80 - $1.85 billion	
·	Operating Income	 	$176 - $183 million	
·	Effective Tax  Rate	 	34.0%	
·	Diluted Earnings Per Share	 	$2.15 - $2.25	
·	Diluted Shares Outstanding	 	46.5 million	
·	Free Cash Flow	 	$85 - $95 million	

Mr. Benante concluded, “Our third quarter results met our expectations and we expect the momentum to continue into the fourth quarter, which is normally our largest quarter. As a result, we expect to be at the high end of our full year guidance range for sales, operating income and diluted earnings per share. This reflects the operational improvements we have been able to achieve in 2010 and positive trends we are seeing across our business, despite having to absorb an estimated $0.07 of earnings per diluted share from unplanned negative foreign currency translation and transaction losses for the full year 2010. Looking ahead to the fourth quarter, the benefits of our previous cost reduction and restructuring programs, on-going cost containment, and higher sales volumes should enable us to sequentially improve upon our strong operating margin performance in the third quarter as we finish out the year. In addition, our backlog and capitalization remain strong and we expect to continue to demonstrate our ability to produce long-term organic growth through our portfolio of highly engineered products and continue to strategically reinvest in both our technologies and select acquisitions in order to enhance our portfolio and market diversification.”

**********
Analytical Definitions

Organic results exclude the impact of year over year foreign currency translation and the results of our acquisitions and divestitures over the past twelve months.

The term “incremental” is used to highlight the net impact acquisitions and divestitures had on the current year results, for which there is no comparable prior year period.

Free cash flow is defined as cash flow from operations less capital expenditures.

**********

The Company will host a conference call to discuss the third quarter 2010 results at 10:00 A.M. EDT Friday, October 29, 2010.  A live webcast of the call can be heard on the Internet by visiting the company’s website at www.curtisswright.com and clicking on the investor information page or by visiting other websites that provide links to corporate webcasts.

(Tables to Follow)

**********

 

CURTISS-WRIGHT CORPORATION and SUBSIDIARIES	 	
CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS (UNAUDITED)	 	
(In thousands, except per share data)	 	

 	 	Three Months Ended	 	 	 	 	 	 	 	 	Nine Months Ended	 	 	 	 	 	 	 	
 	 	September 30,	 	 	Change	 	 	September 30,	 	 	Change	 	
 	 	2010	 	 	2009	 	 	  $	 	 	 	%	 	 	2010	 	 	2009	 	 	   $	 	 	 	%	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Net sales	 	$	465,813	 	 	$	435,750	 	 	$	30,063	 	 	 	6.9	%	 	$	1,369,753	 	 	$	1,306,913	 	 	$	62,840	 	 	 	4.8	%	
Cost of sales	 	 	310,096	 	 	 	293,435	 	 	 	16,661	 	 	 	5.7	%	 	 	921,669	 	 	 	884,256	 	 	 	37,413	 	 	 	4.2	%	
  Gross profit	 	 	155,717	 	 	 	142,315	 	 	 	13,402	 	 	 	9.4	%	 	 	448,084	 	 	 	422,657	 	 	 	25,427	 	 	 	6.0	%	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Research and development expenses	 	 	13,218	 	 	 	13,824	 	 	 	(606	)	 	 	(4.4	%)	 	 	40,894	 	 	 	40,148	 	 	 	746	 	 	 	1.9	%	
Selling expenses	 	 	27,560	 	 	 	25,407	 	 	 	2,153	 	 	 	8.5	%	 	 	83,900	 	 	 	78,685	 	 	 	5,215	 	 	 	6.6	%	
General and administrative expenses	 	 	66,853	 	 	 	66,866	 	 	 	(13	)	 	 	(0.0	%)	 	 	200,692	 	 	 	192,700	 	 	 	7,992	 	 	 	4.1	%	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
  Operating income	 	 	48,086	 	 	 	36,218	 	 	 	11,868	 	 	 	32.8	%	 	 	122,598	 	 	 	111,124	 	 	 	11,474	 	 	 	10.3	%	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Other income, net	 	 	86	 	 	 	309	 	 	 	(223	)	 	 	(72.2	%)	 	 	622	 	 	 	657	 	 	 	(35	)	 	 	(5.3	%)	
Interest expense	 	 	(5,815	)	 	 	(5,923	)	 	 	108	 	 	 	1.8	%	 	 	(17,182	)	 	 	(19,405	)	 	 	2,223	 	 	 	11.5	%	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Earnings before income taxes	 	 	42,357	 	 	 	30,604	 	 	 	11,753	 	 	 	38.4	%	 	 	106,038	 	 	 	92,376	 	 	 	13,662	 	 	 	14.8	%	
Provision for income taxes	 	 	14,573	 	 	 	10,489	 	 	 	4,084	 	 	 	38.9	%	 	 	36,021	 	 	 	32,002	 	 	 	4,019	 	 	 	12.6	%	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Net earnings	 	$	27,784	 	 	$	20,115	 	 	$	7,669	 	 	 	38.1	%	 	$	70,017	 	 	$	60,374	 	 	$	9,643	 	 	 	16.0	%	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Basic earnings per share	 	$	0.61	 	 	$	0.44	 	 	 	 	 	 	 	 	 	 	$	1.53	 	 	$	1.34	 	 	 	 	 	 	 	 	 	
Diluted earnings per share	 	$	0.60	 	 	$	0.44	 	 	 	 	 	 	 	 	 	 	$	1.51	 	 	$	1.32	 	 	 	 	 	 	 	 	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Dividends per share	 	$	0.08	 	 	$	0.08	 	 	 	 	 	 	 	 	 	 	$	0.24	 	 	$	0.24	 	 	 	 	 	 	 	 	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Weighted average shares outstanding:	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
   Basic	 	 	45,898	 	 	 	45,356	 	 	 	 	 	 	 	 	 	 	 	45,765	 	 	 	45,165	 	 	 	 	 	 	 	 	 	
   Diluted	 	 	46,276	 	 	 	45,828	 	 	 	 	 	 	 	 	 	 	 	46,253	 	 	 	45,617	 	 	 	 	 	 	 	 	 	

 

 

CURTISS-WRIGHT CORPORATION and SUBSIDIARIES	 	
NON-GAAP FINANCIAL DATA (UNAUDITED)	 	
(In thousands)	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	Three Months Ended	 	Nine Months Ended	 	
 	 	September 30,	 	 	September 30,	 	
 	 	 	 	 	 	 	 	Change	 	 	 	 	 	 	 	 	Change	 	
 	 	2010	 	 	2009	 	 	%	 	 	2010	 	 	2009	 	 	%	 	

Sales	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
    Organic	 	$	459,262	 	 	$	435,750	 	 	 	5.4	%	 	$	1,350,003	 	 	$	1,306,225	 	 	 	3.4	%	
    Incremental (1)	 	 	8,343	  (2)	 	 	 	 	 	 	 	 	 	 	16,251	  (3)	 	 	688	  (4)	 	 	 	 	
    Foreign Currency (5)	 	 	(1,792	)	 	 	 	 	 	 	 	 	 	 	3,499	 	 	 	 	 	 	 	 	 	
        Total	 	$	465,813	 	 	$	435,750	 	 	 	6.9	%	 	$	1,369,753	 	 	$	1,306,913	 	 	 	4.8	%	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Operating Income	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
    Organic	 	$	49,000	 	 	$	36,218	 	 	 	35.3	%	 	$	131,491	 	 	$	111,440	 	 	 	18.0	%	
       Margin %	 	 	10.7	%	 	 	8.3	%	 	240bps	 	 	 	9.7	%	 	 	8.5	%	 	120bps	 	
    Incremental (1)	 	 	345	  (2)	 	 	 	 	 	 	 	 	 	 	(507	) (3)	 	 	(316	) (4)	 	 	 	 	
    Foreign Currency (5)	 	 	(1,259	)	 	 	 	 	 	 	 	 	 	 	(8,386	)	 	 	 	 	 	 	 	 	
        Total	 	$	48,086	 	 	$	36,218	 	 	 	32.8	%	 	$	122,598	 	 	$	111,124	 	 	 	10.3	%	
       Margin %	 	 	10.3	%	 	 	8.3	%	 	200bps	 	 	 	9.0	%	 	 	8.5	%	 	50bps	 	

(1) The term incremental is used to highlight the impact acquisitions had on the current year results, for which there was no comparable prior year data. Therefore, the results of operations for acquisitions are incremental for the first twelve months  from the date of acquisition and are removed from our organic results.  Additionally, the results of operations for divested business are removed from the comparable prior year period for purposes of calculating organic results.  The remaining business are referred to as organic.

(2) Our organic growth calculations do not include the operating results for our June 1, 2010 acquisition of Hybricon Corporation, June 21, 2010 acquisition of Specialist Electronics Services, Ltd. (SES), and December 18, 2009 acquisition of Skyquest Systems Ltd.

(3) Our organic growth calculations do not include the operating results for our June 1, 2010 acquisition of Hybricon Corporation, June 21, 2010 acquisition of Specialist Electronics Services, Ltd. (SES), December 18, 2009 acquisition of Skyquest Systems Ltd., one month of operating results for our January 16, 2009 acquisition of Nu-Torque and two months of operating results for our March 5, 2009 acquisition of EST Group.

(4) We sold our Eaton product line located in Brecksville, Ohio on May 6, 2009.  The results of operations for this business have been removed from the comparable prior year period for purposes of calculating organic results.

(5) Organic results exclude the current period effects of foreign currency translation.

 

CURTISS-WRIGHT CORPORATION and SUBSIDIARIES	 	
CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED)	 	
(In thousands)	

 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	September 30,	 	 	December 31,	 	 	Change	 	
 	 	2010	 	 	2009	 	 	  $	 	 	 	%	 	
Assets	 	 	 	 	 	 	 	 	 	 	 	 	 	
  Current Assets:	 	 	 	 	 	 	 	 	 	 	 	 	 	
Cash and cash equivalents	 	$	83,913	 	 	$	65,010	 	 	$	18,903	 	 	 	29.1	%	
Receivables, net	 	 	472,680	 	 	 	404,539	 	 	 	68,141	 	 	 	16.8	%	
Inventories, net	 	 	301,720	 	 	 	285,608	 	 	 	16,112	 	 	 	5.6	%	
Deferred tax assets, net	 	 	47,157	 	 	 	48,777	 	 	 	(1,620	)	 	 	(3.3	%)	
Other current assets	 	 	39,458	 	 	 	33,567	 	 	 	5,891	 	 	 	17.5	%	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
  Total current assets	 	 	944,928	 	 	 	837,501	 	 	 	107,427	 	 	 	12.8	%	
  Property, plant, and equipment, net	 	 	395,370	 	 	 	401,149	 	 	 	(5,779	)	 	 	(1.4	%)	
  Goodwill	 	 	689,461	 	 	 	648,452	 	 	 	41,009	 	 	 	6.3	%	
  Other intangible assets, net	 	 	245,070	 	 	 	242,506	 	 	 	2,564	 	 	 	1.1	%	
  Deferred tax assets, net	 	 	1,128	 	 	 	1,994	 	 	 	(866	)	 	 	(43.4	%)	
  Other assets	 	 	10,651	 	 	 	10,439	 	 	 	212	 	 	 	2.0	%	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
  Total Assets	 	$	2,286,608	 	 	$	2,142,041	 	 	$	144,567	 	 	 	6.7	%	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Liabilities	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
  Current Liabilities:	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Current portion of long-term debt and short term debt	 	$	2,551	 	 	$	80,981	 	 	$	(78,430	)	 	 	(96.8	%)	
Accounts payable	 	 	111,013	 	 	 	129,880	 	 	 	(18,867	)	 	 	(14.5	%)	
Dividends payable	 	 	3,692	 	 	 	-	 	 	 	3,692	 	 	 	100.0	%	
Accrued expenses	 	 	97,088	 	 	 	90,855	 	 	 	6,233	 	 	 	6.9	%	
Income taxes payable	 	 	3,767	 	 	 	4,212	 	 	 	(445	)	 	 	(10.6	%)	
Deferred revenue	 	 	142,782	 	 	 	167,683	 	 	 	(24,901	)	 	 	(14.9	%)	
Other current liabilities	 	 	40,928	 	 	 	50,708	 	 	 	(9,780	)	 	 	(19.3	%)	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
  Total current liabilities	 	 	401,821	 	 	 	524,319	 	 	 	(122,498	)	 	 	(23.4	%)	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
  Long-term debt	 	 	524,071	 	 	 	384,112	 	 	 	139,959	 	 	 	36.4	%	
  Deferred tax liabilities, net	 	 	30,230	 	 	 	25,549	 	 	 	4,681	 	 	 	18.3	%	
  Accrued pension and other postretirement benefit costs	 	 	136,941	 	 	 	120,930	 	 	 	16,011	 	 	 	13.2	%	
  Long-term portion of environmental reserves	 	 	19,084	 	 	 	18,804	 	 	 	280	 	 	 	1.5	%	
  Other liabilities	 	 	47,015	 	 	 	41,570	 	 	 	5,445	 	 	 	13.1	%	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
  Total Liabilities	 	 	1,159,162	 	 	 	1,115,284	 	 	 	43,878	 	 	 	3.9	%	

Stockholders' Equity	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
  Common stock, $1 par value	 	 	48,558	 	 	 	48,214	 	 	 	344	 	 	 	0.7	%	
  Additional paid-in capital	 	 	125,529	 	 	 	111,707	 	 	 	13,822	 	 	 	12.4	%	
  Retained earnings	 	 	1,039,563	 	 	 	980,590	 	 	 	58,973	 	 	 	6.0	%	
  Accumulated other comprehensive income (loss)	 	 	4,018	 	 	 	(19,605	)	 	 	23,623	 	 	 	120.5	%	
 	 	 	1,217,668	 	 	 	1,120,906	 	 	 	96,762	 	 	 	8.6	%	
  Less:  cost of treasury stock	 	 	90,222	 	 	 	94,149	 	 	 	(3,927	)	 	 	(4.2	%)	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
  Total Stockholders' Equity	 	 	1,127,446	 	 	 	1,026,757	 	 	 	100,689	 	 	 	9.8	%	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
  Total Liabilities and Stockholders' Equity	 	$	2,286,608	 	 	$	2,142,041	 	 	$	144,567	 	 	 	6.7	%	

 

 

CURTISS-WRIGHT CORPORATION and SUBSIDIARIES	 	
SEGMENT INFORMATION (UNAUDITED)	 	
(In thousands)	 	

 	 	Three Months Ended	 	 	Nine Months Ended	 	
 	 	September 30,	 	 	September 30,	 	
 	 	 	 	 	 	 	 	Change	 	 	 	 	 	 	 	 	Change	 	
 	 	2010	 	 	2009	 	 	%	 	 	2010	 	 	2009	 	 	%	 	
Sales :	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Flow Control	 	$	249,255	 	 	$	237,931	 	 	 	4.8	%	 	$	741,841	 	 	$	710,717	 	 	 	4.4	%	
Motion Control	 	 	162,305	 	 	 	148,303	 	 	 	9.4	%	 	 	465,302	 	 	 	444,760	 	 	 	4.6	%	
Metal Treatment	 	 	54,253	 	 	 	49,516	 	 	 	9.6	%	 	 	162,610	 	 	 	151,436	 	 	 	7.4	%	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Total Sales	 	$	465,813	 	 	$	435,750	 	 	 	6.9	%	 	$	1,369,753	 	 	$	1,306,913	 	 	 	4.8	%	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Operating Income:	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Flow Control	 	$	26,030	 	 	$	22,274	 	 	 	16.9	%	 	$	67,554	 	 	$	57,333	 	 	 	17.8	%	
Motion Control	 	 	21,730	 	 	 	16,512	 	 	 	31.6	%	 	 	54,026	 	 	 	50,291	 	 	 	7.4	%	
Metal Treatment	 	 	5,639	 	 	 	4,354	 	 	 	29.5	%	 	 	18,136	 	 	 	15,426	 	 	 	17.6	%	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Total Segments	 	$	53,399	 	 	$	43,140	 	 	 	23.8	%	 	$	139,716	 	 	$	123,050	 	 	 	13.5	%	
Corporate and Other	 	 	(5,313	)	 	 	(6,922	)	 	 	23.2	%	 	 	(17,118	)	 	 	(11,926	)	 	 	(43.5	%)	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Total Operating Income	 	$	48,086	 	 	$	36,218	 	 	 	32.8	%	 	$	122,598	 	 	$	111,124	 	 	 	10.3	%	

Operating Margins:	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Flow Control	 	 	10.4	%	 	 	9.4	%	 	 	 	 	 	 	9.1	%	 	 	8.1	%	 	 	 	 	
Motion Control	 	 	13.4	%	 	 	11.1	%	 	 	 	 	 	 	11.6	%	 	 	11.3	%	 	 	 	 	
Metal Treatment	 	 	10.4	%	 	 	8.8	%	 	 	 	 	 	 	11.2	%	 	 	10.2	%	 	 	 	 	
Total Curtiss-Wright	 	 	10.3	%	 	 	8.3	%	 	 	 	 	 	 	9.0	%	 	 	8.5	%	 	 	 	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Segment Margins	 	 	11.5	%	 	 	9.9	%	 	 	 	 	 	 	10.2	%	 	 	9.4	%	 	 	 	 	

 

 

CURTISS-WRIGHT CORPORATION and SUBSIDIARIES	 	
NON-GAAP FINANCIAL DATA (UNAUDITED)	 	
(In thousands)	 	

 	 	Three Months Ended	 	 	Nine Months Ended	 	
 	 	September 30,	 	 	September 30,	 	
 	 	2010	 	 	2009	 	 	2010	 	 	2009	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	
Net Cash Provided by	 	 	 	 	 	 	 	 	 	 	 	 	
     Operating Activities	 	$	35,106	 	 	$	46,774	 	 	$	37,692	 	 	$	81,039	 	
Capital Expenditures	 	 	(16,459	)	 	 	(23,498	)	 	 	(38,802	)	 	 	(61,026	)	
Free Cash Flow (1)	 	$	18,647	 	 	$	23,276	 	 	$	(1,110	)	 	$	20,013	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Cash Conversion (1)	 	 	67	%	 	 	116	%	 	 	(2	%)	 	 	33	%	

(1) The Corporation discloses free cash flow and cash conversion because the Corporation believes that they are measurements of cash flow that are 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. Cash conversion is defined as free cash flow divided by net earnings.  Free cash flow, as we define it, may differ from similarly named measures used by entities and, consequently, could be misleading unless all entities calculate and define free cash flow in the same manner.

 

 

About Curtiss-Wright

Curtiss-Wright Corporation is a diversified company headquartered in Parsippany, New Jersey.  The Company designs, manufactures and overhauls products for motion control and flow control applications and provides a variety of metal treatment services.  The firm employs approximately 7,600 people.  More information on Curtiss-Wright can be found at www.curtisswright.com .

###

Certain statements made in this release, including statements about future revenue, organic revenue growth, quarterly and annual revenue, net income, organic operating income growth, future business opportunities, cost saving initiatives, 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, 2009, as amended, and subsequent reports filed with the Securities and Exchange Commission.

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

Contact:                   Glenn Tynan
(973) 541-3710
gtynan@curtisswright.com