10-KPeriod: FY2008

CURTISS WRIGHT CORP Annual Report, Year Ended Dec 31, 2008

Filed March 2, 2009For Securities:CW

Summary

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 billion, 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.

Financial Highlights

27 data points
Beta

Revenue

$1.83B

33.7% Gross Margin

Net Income

$109.39M

6.0% Net Margin

EPS (Diluted)

$2.41

Cash & Equivalents

$60.70M

Free Cash Flow

$76.16M

Financial Statements
Beta
Revenue$1.83B
Cost of Revenue$1.21B
Gross Profit$616.08M
R&D Expenses$49.62M
Operating Income$196.56M
Interest Expense$29.05M
Net Income$109.39M
EPS (Basic)$2.45
EPS (Diluted)$2.41

Key Highlights

  • 1Net sales increased by 15% year-over-year to $1.83 billion in 2008.
  • 2Net earnings rose by 5% to $109 million ($2.41 per diluted share).
  • 3Organic sales growth of 6% was achieved across the base business, with the Flow Control segment leading at 9% growth.
  • 4The company benefited from strong demand in the power generation (nearly 50% organic growth) and defense markets.
  • 5Acquisitions made in 2007 and 2008 contributed $152 million in incremental sales.
  • 6Operating income grew by 10% to $197 million, with operating margins at 10.7%.
  • 7Backlog increased significantly to $1.68 billion at year-end 2008, up from $1.30 billion in 2007.

Frequently Asked Questions

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%.

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.

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.

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.