01—Abstract
Summary
Summary of the 10-K filed March 2, 2009. Cited figures are marked; the original filing is the authoritative source.
Curtiss-Wright Corporation's 2008 Form 10-K filing reveals a company experiencing robust growth, driven by strong performance across its three main segments: Flow Control, Motion Control, and Metal Treatment.
The company reported a significant increase in net sales to $1.83 billiona, a 15% rise from the previous year, with net earnings also showing an increase to $109 million. This growth was fueled by a combination of strong organic sales across key markets, particularly in power generation and defense, as well as the successful integration of several acquisitions made in 2007 and 2008. Curtiss-Wright's diversified business model, with a balanced exposure to defense, energy, commercial aerospace, and general industrial markets, proved resilient even amidst challenging macroeconomic conditions in 2008.
The company highlighted its strategic focus on high-performance, highly engineered products and services, which are critical in demanding environments. Looking ahead, Curtiss-Wright anticipates continued demand in its defense and energy sectors, supported by government spending and global energy needs, while navigating potential pressures in commercial markets due to the economic downturn.
02—Key points
Key Highlights
- Net sales increased by 15% year-over-year to $1.83 billion in 2008.
- Net earnings rose by 5% to $109 million ($2.41 per diluted share).
- Organic sales growth of 6% was achieved across the base business, with the Flow Control segment leading at 9% growth.
- The company benefited from strong demand in the power generation (nearly 50% organic growth) and defense markets.
- Acquisitions made in 2007 and 2008 contributed $152 million in incremental sales.
- Operating income grew by 10% to $197 million, with operating margins at 10.7%.
- Backlog increased significantly to $1.68 billion at year-end 2008, up from $1.30 billion in 2007.
03—One dollar
Follow one dollar
Of each $1.00 of revenue in FY2008, Curtiss Wright Corp kept $0.06.
- Revenue$1.83B100.0%
- Cost of revenue−$1.21B66.3%
- Gross profit$616.1M33.7%
- Operating costs−$419.5M22.9%
- Operating income$196.6M10.7%
- Interest, other & tax−$87.2M4.8%
- Net income$109.4M6.0%
Where FY2008 revenue went
$1.83B- Cost of revenue: $1.21B, 66% of revenue
- Other operating costs: $369.9M, 20% of revenue
- Net income: $109.4M, 6.0% of revenue
- R&D: $49.6M, 2.7% of revenue
- Interest, other & tax: $87.2M, 4.8% of revenue
Kept 6.0% as net income
Full revenue history →04—Financials
Financial Highlights
Figures from 10-KFY2008filed March 2, 2009Financial Statements
05—Questions
Frequently Asked Questions
What were the primary drivers of Curtiss-Wright's revenue growth in 2008?
Curtiss-Wright's revenue growth in 2008 was driven by a combination of strong organic sales, particularly in the power generation (up nearly 50%) and defense sectors, as well as the incremental sales of $152 million from acquisitions completed in 2007 and 2008. The company's Flow Control segment saw the most significant organic sales growth at 9%.
How did the company's diversification strategy impact its performance in 2008?
The company's strategy of diversifying into complementary markets like energy and defense, while minimizing dependence on commercial aerospace, proved beneficial. This balanced portfolio allowed Curtiss-Wright to achieve healthy sales and profit growth despite a challenging macroeconomic environment, with strong performances reported across its Flow Control, Motion Control, and Metal Treatment segments.
What is the company's outlook for its key markets in the near term?
Curtiss-Wright anticipates continued demand in its defense and energy markets, supported by government defense spending proposals and global energy needs. While the commercial aerospace market is expected to remain stable, the company foresees some pressure in its general industrial and oil & gas markets due to the global economic downturn, though it expects a base level of maintenance capital spending to continue.
How did the company's financial position change in terms of debt and cash flow in 2008?
Long-term debt remained relatively stable at $513 million. Cash and cash equivalents decreased slightly to $61 million from $67 million. Operating activities generated $180 million in cash, while investing activities used $144 million, largely for acquisitions and capital expenditures. Financing activities used $27 million. The company maintained compliance with its debt covenants and had significant unused credit availability.
06—Continue