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Curtiss-Wright Corp.$123.35$3.112.59%

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 Curtiss-Wright Reports Fourth Quarter and Full-Year 2015 Financial Results and Issues 2016 Guidance
   Wednesday, February 24, 2016 4:31:27 PM ET

Curtiss-Wright Corporation (CW ) reported financial results for the fourth quarter and full-year ended December 31, 2015.

Fourth Quarter 2015 Highlights

-- Net sales increased 3% to $589 million, from $573 million in 2014; Organic (excluding effects of foreign currency translation, acquisitions and divestitures) sales up 4%;

-- Operating income increased 45% to $109 million, from $75 million in 2014;

-- Operating margin increased 530 basis points to 18.4% from 13.1% in 2014;

-- Net earnings from continuing operations increased 53% to $71 million, or $1.53 per diluted share, from $46 million, or $0.94 per diluted share, in 2014;

-- Free cash flow decreased 6% to $156 million, from $166 million in 2014, generating a free cash flow conversion of 220%; and

-- The Company invested more than $100 million in share repurchases in the fourth quarter.

Full-Year 2015 Highlights

-- Net sales decreased 2% to $2.21 billion, from $2.24 billion in 2014;

-- Operating income increased 10% to $311 million, from $282 million in 2014;

-- Operating margin increased 150 basis points to 14.1%, from 12.6% in 2014;

-- Net earnings from continuing operations increased 13% to $192 million, or $4.04 per diluted share, from $170 million, or $3.46 per diluted share, in 2014;

-- Adjusted free cash flow (excluding the first quarter 2015 pension contribution of $145 million) increased 3% to $272 million, from $265 million in 2014, generating a free cash flow conversion of 141%; and

-- The Company substantially completed its $300 million share repurchase program in 2015, buying back approximately 4.3 million shares.

"We were pleased with our fourth quarter results, which reflect the benefit of the China AP1000 reactor coolant pump (RCP) order received in late December and an overall solid performance in our defense markets, despite weaker global economic conditions and lower oil prices impacting several of our industrial markets," said David C. Adams, Chairman and CEO of Curtiss-Wright Corporation. "Our full-year 2015 results reflect a 10% improvement in operating income, despite a 2% drop in sales, while full-year operating margin of 14.1% represents an increase of 150 basis points over 2014 reported results, reflecting the benefits of our ongoing margin improvement initiatives and the new AP1000 order. We are delivering on our long-term strategy and continue to drive solid operating margin expansion and free cash flow generation.

"For 2016, we’re forecasting a mixed performance across our businesses, as continued strength in our defense markets will essentially be offset by reduced sales expectations across our industrial markets. The combination of slower economic growth and the low oil price environment are driving weaker demand in our industrial businesses, particularly those serving the energy markets. Meanwhile, our operational teams remain intensely focused on driving efficiencies to become leaner and more profitable despite the top-line pressures, while also continuing to invest in our future. As a result, we are forecasting 2016 sales ranging from -1% to +1%, operating margin of 14.0% to 14.2%, and free cash flow of $280 to $300 million, as we continue to pursue top-quartile financial performance.

"Further, we remained true to our commitment to our shareholders by returning more than $300 million in capital during 2015 through consistent share repurchases and dividend distributions. Share repurchases in the fourth quarter well exceeded $100 million and included both planned and opportunistic repurchases. In 2016, we will continue to actively repurchase shares under the currently authorized share buyback program and expect to repurchase at least $100 million in stock this year.

"Overall, we remain focused on driving long-term shareholder value by expanding operating margins, generating strong free cash flow and maintaining a balanced capital allocation strategy."

<span data-mce-style="text-decoration: underline;" style="text-decoration: underline;">Fourth Quarter 2015 Operating Results from Continuing Operations</span>

(In thousands)    4Q-2015        4Q-2014        % Change
Sales             $  588,755     $  572,586        3  %
Operating income     108,527        74,931         45 %
Operating margin     18.4    %      13.1    %   530 bps

Sales

Sales of $589 million in the fourth quarter increased $16 million, or 3%, compared to the prior year, reflecting a 4% increase in organic sales, partially offset by $9 million, or 1%, in unfavorable foreign currency translation. Fourth quarter sales included a benefit of $33 million from the receipt of the new AP1000 RCP order, which included the recognition of a one-time fee of $20 million.

From an end market perspective, sales to the commercial markets increased 4%, while sales to the defense markets increased 1%, compared to 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 $34 million, or 45%, compared to the prior year. This performance was primarily driven by higher operating income in the Power segment mainly due to a one-time fee of $20 million related to the new AP1000 RCP order, as well as higher AP1000 program production volumes. In the Defense segment, we experienced higher organic operating income, despite lower sales, along with the benefit of favorable foreign currency translation.

Operating margin was 18.4%, an increase of 530 basis points over the prior year, primarily reflecting higher segment operating income, the aforementioned AP1000 order and the benefits of our ongoing margin improvement initiatives.

Non-segment expense

Non-segment expenses decreased 4% compared with the prior year, primarily due to lower pension expenses.

Net Earnings

Fourth quarter net earnings increased 53% from the comparable prior year period, reflecting higher operating income. Interest expense of $9 million was in-line with the prior year period.

Our effective tax rate for the current quarter was 28.8%, a decrease from 30.8% in the prior year, principally driven by increased foreign rate differential and the enhancement of certain tax deductions.

Free Cash Flow

(In thousands)                                4Q-2015        4Q-2014
Net cash generated from operating activities  $  167,170     $  178,593
Capital expenditures                             (11,664 )      (12,635 )
Free cash flow                                $  155,506     $  165,958

Free cash flow, defined as cash flow from operations less capital expenditures, was $156 million for the fourth quarter of 2015, compared to $166 million in the prior year period, or a decrease of $10 million. Net cash generated from operating activities decreased $11 million to $167 million, primarily due to lower cash collections, partially offset by higher cash earnings and deferred revenues. Capital expenditures of $12 million were $1 million lower than the prior year period.

New Orders and Backlog

New orders of $937 million increased 77% in the fourth quarter, primarily due to the receipt of a new AP1000 order within the Power segment, offsetting reduced orders within the Commercial/Industrial and Defense segments.

Backlog of $1.93 billion increased 15% from December 31, 2014, primarily due to the aforementioned AP1000 order within the Power segment.

Other Items - Share Repurchase

During the fourth quarter, the Company repurchased 1.6 million shares of its common stock for approximately $109 million.

For full-year 2015, the Company repurchased 4.3 million shares of its common stock for approximately $300 million, completing the entirety of its planned share repurchase program for 2015.

<span data-mce-style="text-decoration: underline;" style="text-decoration: underline;">Full-Year 2016 Guidance</span>

The Company’s full-year 2016 financial guidance reflects growth rates compared to 2015 Pro Forma results, which exclude the one-time China AP1000 fee of $20 million recognized in the fourth quarter of 2015:

                           2015 Pro Forma     2016 Guidance         Chg vs. 2015
Total sales                $2.19 billion      $2.17 - $2.22 billion -1% to +1%
Operating income           $291 million       $304 - $315 million   Up 5 - 8%
Operating margin                       13.3 % 14.0% - 14.2%         Up 70 - 90 bps
Diluted earnings per share           $ 3.74   $4.00 - $4.15         Up 7 - 11%
Diluted shares outstanding 47.6 million       46.0 million
Adjusted free cash flow    $272 million       $280 - 300 million    Up 3 - 10%

Notes:

Adjusted free cash flow for 2015 excludes the Company’s $145 million pension contribution to its corporate defined benefit pension plan on January 30, 2015.

A more detailed breakdown of our 2016 guidance by segment and by market can be found in the attached accompanying schedules.

<span data-mce-style="text-decoration: underline;" style="text-decoration: underline;">Fourth Quarter 2015 Segment Performance</span>

Commercial/Industrial

(In thousands)    4Q-2015        4Q-2014        % Change
Sales             $  289,882     $  300,538        (4 %)
Operating income     42,724         43,369         (1 %)
Operating margin     14.7    %      14.4    %   30 bps

Sales for the fourth quarter were $290 million, a decrease of $11 million, or 4%, over the comparable prior year period. Organic sales decreased 2% over the prior year period, excluding $5 million in unfavorable foreign currency translation, primarily within the energy sector of the general industrial market, and a $1 million benefit from acquisitions. Within the commercial aerospace market, sales were flat as improved OEM production sales of sensors and controls equipment to Boeing and Airbus were offset by lower sales of surface technology services, most notably to Airbus. In the general industrial market, sales declined 8% reflecting continued lower sales of severe-service valves serving the energy markets resulting from the steady decline in the price of crude oil, along with a modest reduction in sales for industrial vehicle products. Those reductions were partially offset by higher actuation system sales supporting the F-35 Joint Strike Fighter program in the aerospace defense market.

Operating income in the fourth quarter was $43 million, down 1% from the comparable prior year period, while operating margin increased 30 basis points to 14.7%. Our results principally reflect improved profitability for industrial valves and vehicle products, despite lower sales volumes, due to ongoing cost reduction initiatives, as well as higher sales volumes of sensors and controls products. This performance was partially offset by lower profitability for surface treatment services, based on lower sales volumes.

Defense

(In thousands)    4Q-2015        4Q-2014        % Change
Sales             $  126,818     $  131,918        (4 %)
Operating income     31,000         26,286         18 %
Operating margin     24.4    %      19.9    %   450 bps

Sales for the fourth quarter were $127 million, a decrease of $5 million, or 4%, over the comparable prior year period. Organic sales decreased 1% over the prior year period, excluding $3 million in unfavorable foreign currency translation. In the aerospace defense market, we experienced lower sales of embedded computing products as expected, based on the timing of production on various helicopter and Intelligence, Surveillance and Reconnaissance (ISR) programs. In the ground defense market, our performance was driven by higher sales of ground combat and communications programs domestically, most notably for the G/ATOR program. Within the naval defense market, we experienced higher embedded computing product sales as well as increased helicopter handling systems sales on the DDG-51 program. Within the commercial aerospace market, our results reflect lower revenues related to flight test equipment, primarily due to reduced rotorcraft and regional jet sales.

Operating income in the fourth quarter was $31 million, an increase of $5 million, or 18%, compared to the prior year period, while operating margin improved 450 basis points to 24.4%. On an organic basis, operating income increased 5% while operating margin increased 140 basis points as compared to the prior year, excluding $3 million in favorable foreign currency translation. This improvement in operating income and margin was driven primarily by continued solid profitability for our Commercial Off-the-Shelf (COTS) electronics products, as well as the benefits of our ongoing operational and margin improvement initiatives.

Power

(In thousands)    4Q-2015        4Q-2014        % Change
Sales             $  172,055     $  140,130         23  %
Operating income     40,476         11,188          262 %
Operating margin     23.5    %      8.0     %   1,550 bps

Sales for the fourth quarter were $172 million, an increase of $32 million, or 23%, over the comparable prior year period. Within the power generation market, our results reflect the receipt of the new AP1000 order, which included the recognition of the one-time fee, as well as higher AP1000 production revenues. Aftermarket sales supporting domestic nuclear operating reactors were essentially flat during the period. In the naval defense market, we experienced lower sales of pumps and generators supporting the Virginia-class submarine program, based on the timing of production.

Operating income in the fourth quarter was $40 million, an increase of $29 million, or 262%, compared to the prior year period, while operating margin improved 1,550 basis points to 23.5%. This improvement in operating income and margin was primarily driven by the receipt of the new AP1000 order and one-time fee, as well as the higher AP1000 production volumes. We also experienced higher profitability in our aftermarket power generation business, despite relatively flat sales volumes, reflecting our ongoing operational and margin improvement initiatives.

<span data-mce-style="text-decoration: underline;" style="text-decoration: underline;">Conference Call Information</span>

The Company will host a conference call to discuss fourth quarter and full-year 2015 financial results and expectations for 2016 guidance at 9:00 a.m. EST on Thursday, February 25, 2016. A live webcast of the call and the accompanying financial presentation will be made available on the internet by visiting the Investor Relations section of the Company’s website at www.curtisswright.com.

(Tables to Follow)

 CURTISS-WRIGHT CORPORATION and SUBSIDIARIES
 CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS (UNAUDITED)
 ($’s in thousands, except per share data)
                                               Three Months Ended                                 Year Ended
                                               December 31,                  Change               December 31,                  Change
                                                  2015           2014        $          %           2015           2014         $           %
 Product sales                                 $  483,512     $  463,902     $ 19,610     4   %   $ 1,796,802    $ 1,815,028    $ (18,226 )   (1  %)
 Service sales                                    105,243        108,684       (3,441 )   (3  %)    408,881        428,098        (19,217 )   (4  %)
 Total net sales                                  588,755        572,586       16,169     3   %     2,205,683      2,243,126      (37,443 )   (2  %)
 Cost of product sales                            291,895        300,663       (8,768 )   (3  %)    1,156,596      1,190,714      (34,118 )   (3  %)
 Cost of service sales                            72,546         71,583        963        1   %     265,832        275,896        (10,064 )   (4  %)
 Total cost of sales                              364,441        372,246       (7,805 )   (2  %)    1,422,428      1,466,610      (44,182 )   (3  %)
 Gross profit                                     224,314        200,340       23,974     12  %     783,255        776,516        6,739       1   %
 Research and development expenses                15,204         16,692        (1,488 )   (9  %)    60,837         67,842         (7,005  )   (10 %)
 Selling expenses                                 31,042         32,665        (1,623 )   (5  %)    121,482        128,005        (6,523  )   (5  %)
 General and administrative expenses              69,541         76,052        (6,511 )   (9  %)    290,319        298,296        (7,977  )   (3  %)
 Operating income                                 108,527        74,931        33,596     45  %     310,617        282,373        28,244      10  %
 Interest expense                                 (9,085  )      (8,740  )     (345   )   (4  %)    (36,038   )    (35,794   )    (244    )   (1  %)
 Other income, net                                10             435           (425   ) NM          615            365            250       NM
 Earnings before income taxes                     99,452         66,626        32,826     49  %     275,194        246,944        28,250      11  %
 Provision for income taxes                       28,690         20,494        8,196      40  %     82,946         76,995         5,951       8   %
 Earnings from continuing operations           $  70,762      $  46,132      $ 24,630     53  %   $ 192,248      $ 169,949      $ 22,299      13  %
 Loss from discontinued operations, net of tax    (913    )      (29,382 )     28,469   NM          (46,787   )    (56,611   )    9,824     NM
 Net earnings                                  $  69,849      $  16,750      $ 53,099     317 %   $ 145,461      $ 113,338      $ 32,123      28  %
 Basic earnings per share
 Earnings from continuing operations           $  1.56        $  0.96                             $ 4.12         $ 3.54
 Earnings from discontinued operations            (0.02   )      (0.61   )                          (1.00     )    (1.18     )
 Total                                         $  1.54        $  0.35                             $ 3.12         $ 2.36
 Diluted earnings per share
 Earnings from continuing operations           $  1.53        $  0.94                             $ 4.04         $ 3.46
 Earnings from discontinued operations            (0.02   )      (0.60   )                          (0.99     )    (1.15     )
 Total                                         $  1.51        $  0.34                             $ 3.05         $ 2.31
 Dividends per share                           $  0.13        $  0.13                             $ 0.52         $ 0.52
 Weighted average shares outstanding:
 Basic                                            45,245         47,927                             46,624         48,019
 Diluted                                          46,143         48,905                             47,616         49,075
 NM- not meaningful
CURTISS-WRIGHT CORPORATION and SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED)
($’s in thousands, except par value)
                                                                              December 31,         December 31,         Change
                                                                                   2015                 2014            %
Assets
Current assets:
                            Cash and cash equivalents                         $    288,697         $    450,116             (36  %)
                            Receivables, net                                       566,289              495,480             14   %
                            Inventories                                            379,591              388,670             (2   %)
                            Deferred tax assets, net                               41,737               44,311              (6   %)
                            Assets held for sale                                   -                    147,347             (100 %)
                            Other current assets                                   40,306               45,151              (11  %)
                            Total current assets                                   1,316,620            1,571,075           (16  %)
Property, plant, and equipment, net                                                413,644              458,919             (10  %)
Goodwill                                                                           972,606              998,506             (3   %)
Other intangible assets, net                                                       310,763              349,227             (11  %)
Other assets                                                                       15,745               21,784              (28  %)
                            Total assets                                      $    3,029,378       $    3,399,511           (11  %)
Liabilities
Current liabilities:
                            Current portion of long-term and short term debt  $    1,259           $    1,069               18   %
                            Accounts payable                                       163,286              152,266             7    %
                            Accrued expenses                                       131,863              145,938             (10  %)
                            Income taxes payable                                   7,956                22,472              (65  %)
                            Deferred revenue                                       181,671              176,693             3    %
                            Liabilities held for sale                              -                    35,392              (100 %)
                            Other current liabilities                              39,152               38,163              3    %
                            Total current liabilities                              525,187              571,993             (8   %)
Long-term debt                                                                     953,083              953,279             (0   %)
Deferred tax liabilities, net                                                      91,115               51,554              77   %
Accrued pension and other postretirement benefit costs                             103,723              226,687             (54  %)
Long-term portion of environmental reserves                                        14,017               14,911              (6   %)
Other liabilities                                                                  86,830               102,654             (15  %)
                            Total liabilities                                      1,773,955            1,921,078           (8   %)
Stockholders’ equity
Common stock, $1 par value                                                         49,190               49,190              0    %
Additional paid in capital                                                         144,923              158,043             (8   %)
Retained earnings                                                                  1,590,645            1,469,306           8    %
Accumulated other comprehensive loss                                               (225,928  )          (128,411  )         76   %
Less:  cost of treasury stock                                                      (303,407  )          (69,695   )         335  %
                            Total stockholders’ equity                             1,255,423            1,478,433           (15  %)
                            Total liabilities and stockholders’ equity        $    3,029,378       $    3,399,511           (11  %)
 CURTISS-WRIGHT CORPORATION and SUBSIDIARIES
 SEGMENT INFORMATION (UNAUDITED)
 ($’s in thousands)
                              Three Months Ended                   Year Ended
                              December 31,                         December 31,
                                                        Change                                   Change
                                2015         2014       %            2015           2014         %
 Sales:
 Commercial/Industrial        $ 289,882    $ 300,538       (4  %)  $ 1,184,791    $ 1,228,097       (4  %)
 Defense                        126,818      131,918       (4  %)    477,413        489,857         (3  %)
 Power                          172,055      140,130       23  %     543,479        525,172         3   %
 Total sales                  $ 588,755    $ 572,586       3   %   $ 2,205,683    $ 2,243,126       (2  %)
 Operating income (expense):
 Commercial/Industrial        $ 42,724     $ 43,369        (1  %)  $ 171,525      $ 178,684         (4  %)
 Defense                        31,000       26,286        18  %     98,895         82,552          20  %
 Power                          40,476       11,188        262 %     74,987         51,449          46  %
 Total segments               $ 114,200    $ 80,843        41  %   $ 345,407      $ 312,685         10  %
 Corporate and other            (5,673  )    (5,912  )     4   %     (34,790   )    (30,312   )     (15 %)
 Total operating income       $ 108,527    $ 74,931        45  %   $ 310,617      $ 282,373         10  %
 Operating margins:
 Commercial/Industrial          14.7    %    14.4    %               14.5      %    14.5      %
 Defense                        24.4    %    19.9    %               20.7      %    16.9      %
 Power                          23.5    %    8.0     %               13.8      %    9.8       %
 Total Curtiss-Wright           18.4    %    13.1    %               14.1      %    12.6      %
 Segment margins                19.4    %    14.1    %               15.7      %    13.9      %
 CURTISS-WRIGHT CORPORATION and SUBSIDIARIES
 SALES BY END MARKET (UNAUDITED)
 ($’s in thousands)
                       Three Months Ended                 Year Ended
                       December 31,                       December 31,
                                               Change                                 Change
                         2015        2014      %            2015          2014        %
 Defense markets:
 Aerospace             $ 75,656    $ 82,421       (8  %)  $ 304,521     $ 290,604        5  %
 Ground                  24,307      18,739       30  %     85,722        74,066         16 %
 Naval                   103,797     100,053      4   %     388,304       381,335        2  %
 Other                   2,155       2,406        (10 %)    8,723         8,610          1  %
 Total Defense         $ 205,915   $ 203,619      1   %   $ 787,270     $ 754,615        4  %
 Commercial markets:
 Commercial Aerospace  $ 105,710   $ 107,270      (1  %)  $ 398,538     $ 422,888        (6 %)
 Power Generation        141,547     111,758      27  %     436,396       429,779        2  %
 General Industrial      135,583     149,939      (10 %)    583,479       635,844        (8 %)
 Total Commercial      $ 382,840   $ 368,967      4   %   $ 1,418,413   $ 1,488,511      (5 %)
 Total Curtiss-Wright  $ 588,755   $ 572,586      3   %   $ 2,205,683   $ 2,243,126      (2 %)

Use of Non-GAAP Financial Information

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

<span data-mce-style="text-decoration: underline;" style="text-decoration: underline;">Organic Revenue and Organic Operating income</span>

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,
                 2015 vs 2014
                 Commercial/Industrial     Defense               Power                     Total Curtiss-Wright
                 Sales        Operating    Sales    Operating    Sales    Operating        Sales     Operating
                              income                income                income                     income
Organic              (2  %)       (3  %)     (1 %)      5   %      23 %       261       %     4  %       40  %
Acquisitions         0   %        1   %      0  %       0   %      0  %       0         %     0  %       0   %
Foreign Currency     (2  %)       1   %      (3 %)      13  %      (0 %)          1   %       (1 %)      5   %
Total                (4  %)       (1  %)     (4 %)      18  %      23 %       262       %     3  %       45  %
                 Year Ended
                 December 31,
                 2015 vs 2014
                 Commercial/Industrial     Defense               Power                     Total Curtiss-Wright
                 Sales        Operating    Sales    Operating    Sales    Operating        Sales     Operating
                              income                income                income                     income
Organic              (1  %)       (5  %)     0  %       6   %      3  %       46        %     0  %       6   %
Acquisitions         0   %        1   %      0  %       0   %      0  %       (0        %)    0  %       0   %
Foreign Currency     (3  %)       (0  %)     (3 %)      14  %      (0 %)          0   %       (2 %)      4   %
Total                (4  %)       (4  %)     (3 %)      20  %      3  %       46        %     (2 %)      10  %

<span data-mce-style="text-decoration: underline;" style="text-decoration: underline;">Free Cash Flow</span>

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

 CURTISS-WRIGHT CORPORATION and SUBSIDIARIES
 NON-GAAP FINANCIAL DATA (UNAUDITED)
 ($’s in thousands)
                                           Three Months Ended             Year Ended
                                           December 31,                   December 31,
                                                  2015         2014              2015         2014
 Net cash provided by operating activities $      167,170    $ 178,593    $      162,479    $ 331,766
 Capital expenditures                             (11,664 )    (12,635 )         (35,512 )    (67,115 )
 Free cash flow                            $      155,506    $ 165,958    $      126,967    $ 264,651
 Pension Payment                                  -            -                 145,000      39,800
 Adjusted free cash flow                   $      155,506    $ 165,958    $      271,967    $ 304,451
 Cash conversion *                                220     %    360     %         141     %    179     %
 *Cash conversion is calculated as adjusted free cash flow divided by earnings from continuing operations
 CURTISS-WRIGHT CORPORATION
 2016 Guidance (from Continuing Operations)
 As of February 24, 2016
 ($’s in millions, except per share data)
                                                     2015                                 2015 Pro                   2016 Guidance
                                                     Reported                             Forma*
                                                                                                                     Low                        High
 Sales:
 Commercial/Industrial                               $           1,185                    $           1,185          $           1,145          $           1,170
 Defense                                                         477                                  477                        490                        500
 Power                                                           543                                  523                        535                        550
 Total sales                                         $           2,206                    $           2,186          $           2,170          $           2,220
 Operating income:
 Commercial/Industrial                               $           172                      $           172            $           168                        173
 Defense                                                         99                                   99                         93                         97
 Power                                                           75                                   55                         69                         72
 Total segments                                                  345                                  325                        330                        342
 Corporate and other                                             (35         )                        (35         )              (26         )              (27         )
 Total operating income                              $           311                      $           291            $           304            $           315
 Interest expense                                    $           (36         )            $           (36         )  $           (38         )  $           (39         )
 Earnings before income taxes                                    275                                  255                        267                        276
 Provision for income taxes                                      (83         )                        (77         )              (83         )              (86         )
 Net earnings                                        $           192                      $           178            $           184            $           191
 Reported diluted earnings per share                 $           4.04                     $           3.74           $           4.00           $           4.15
 Diluted shares outstanding                                      47.6                                 47.6                       46.0                       46.0
 Effective tax rate                                              30.1        %                        30.1        %              31.0        %              31.0        %
 Operating margins:
 Commercial/Industrial                                           14.5        %                        14.5        %              14.6        %              14.8        %
 Defense                                                         20.7        %                        20.7        %              19.1        %              19.3        %
 Power                                                           13.8        %                        10.5        %              12.9        %              13.1        %
 Total operating margin                                          14.1        %                        13.3        %              14.0        %              14.2        %
 Note: Full year amounts may not add due to rounding
 * Excludes the one-time China AP1000 fee of $20 million recognized as revenue and operating income in the fourth quarter of 2015.  This affects the Power segment and Total Curtiss-Wright.
 CURTISS-WRIGHT CORPORATION
 2016 Sales Growth Guidance by End Market (from Continuing Operations)
 As of February 24, 2016
                                           2016 % Change (vs 2015)
                                           Low                                    High
 Defense Markets
 Aerospace                                                                 1  %        3  %
 Ground                                                                    4  %        6  %
 Navy                                                                      0  %        2  %
 Total Defense  (Including Other Defense)                                  2  %        4  %
 Commercial Markets
 Commercial Aerospace                                                      (4 %)       (2 %)
 Power Generation                                                          4  %        6  %
 General Industrial                                                        (6 %)       (2 %)
 Total Commercial                                                          (3 %)       (1 %)
 Total Curtiss-Wright Sales                                                (1 %)       1  %
 Note: Full year amounts may not add due to rounding
 * The Company’s full-year 2016 guidance reflects sales growth rates compared to 2015 Pro Forma results, which exclude the one-time China AP1000 fee of $20 million recognized as revenue in the fourth quarter of 2015.  This affects 2016 growth rates for Power Generation, Total Commercial and Total Curtiss-Wright sales.

About Curtiss-Wright Corporation

Curtiss-Wright Corporation (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 8,400 people worldwide. For more information, visit www.curtisswright.com.

Certain statements made in this release, including statements about future revenue, financial performance guidance, quarterly and annual revenue, net income, operating income growth, future business opportunities, cost saving initiatives, the successful integration of our acquisitions, the successful sale of our businesses held for sale, and future cash flow from operations, are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements present management’s expectations, beliefs, plans and objectives regarding future financial performance, and assumptions or judgments concerning such performance. Any discussions contained in this press release, except to the extent that they contain historical facts, are forward-looking and accordingly involve estimates, assumptions, judgments and uncertainties. Such forward-looking statements are subject to certain risks and uncertainties that could cause actual results to differ materially from those expressed or implied. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date hereof. Such risks and uncertainties include, but are not limited to: a reduction in anticipated orders; an economic downturn; changes in competitive marketplace and/or customer requirements; a change in government spending; an inability to perform customer contracts at anticipated cost levels; and other factors that generally affect the business of aerospace, defense contracting, electronics, marine, and industrial companies. Such factors are detailed in the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2014, and subsequent reports filed with the Securities and Exchange Commission.

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

Jim Ryan
(704) 869-4621
Jim.Ryan@curtisswright.com

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