10-KPeriod: FY2009

CURTISS WRIGHT CORP Annual Report, Year Ended Dec 31, 2009

Filed February 24, 2010For Securities:CW

Summary

Curtiss-Wright Corporation's 2009 10-K filing highlights a company navigating a challenging economic environment while demonstrating resilience through its diversified business segments. The company's primary markets are defense, energy, commercial aerospace, and general industrial. Defense sector sales showed robust growth, driven by increased demand across military branches, particularly naval programs like the Virginia-class submarines and aircraft carrier projects. Conversely, commercial markets, including general industrial, oil and gas, and commercial aerospace, experienced declines due to the global economic downturn. The company's strategy emphasizes diversification and the development of advanced technologies. Acquisitions played a significant role in 2009, with the company acquiring EST Group, Inc., Nu-Torque, and Skyquest Systems Ltd. to bolster its capabilities in key areas. Despite a challenging year for its commercial segments, Curtiss-Wright maintained a strong backlog, particularly in its Flow Control segment, bolstered by long-term defense contracts and significant orders for nuclear power plant components. The company also managed its debt effectively and maintained compliance with its credit facility covenants.

Financial Statements
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Key Highlights

  • 1Strong performance in the defense sector, with significant growth in naval programs and aircraft carrier projects, offsetting declines in commercial markets.
  • 2Diversification across defense, energy, commercial aerospace, and general industrial markets proved beneficial in a challenging economic climate.
  • 3Strategic acquisitions in 2009 (EST Group, Nu-Torque, Skyquest Systems) aimed at enhancing technological capabilities and market positions.
  • 4The Flow Control segment saw growth driven by power generation (nuclear) and defense markets, despite a downturn in oil and gas and general industrial sectors.
  • 5The Motion Control segment experienced growth, particularly in defense markets, driven by embedded computing technologies, though commercial aerospace and general industrial sectors declined.
  • 6The Metal Treatment segment faced significant sales declines due to the economic slowdown, impacting its performance.
  • 7The company maintained a healthy backlog, indicating continued demand, especially from long-term defense contracts and commercial nuclear power projects.

Frequently Asked Questions

Curtiss-Wright's revenue is driven by its highly engineered products and services across three segments: Flow Control, Motion Control, and Metal Treatment. The defense sector, particularly naval programs, showed strong growth in 2009, while commercial markets like general industrial, oil & gas, and commercial aerospace faced headwinds due to the economic downturn.

Curtiss-Wright made several strategic acquisitions in 2009, including EST Group, Inc., Nu-Torque, and Skyquest Systems Ltd. These acquisitions were aimed at strengthening the company's technological capabilities and market presence, particularly in its core segments.

Key risks include a substantial portion of revenue depending on U.S. government defense spending, which can be cyclical. Other risks include reliance on government contracts with specific procurement rules, potential fluctuations in operating results due to economic cycles and contract mix, and risks associated with integrating acquired businesses. Competition and the company's ability to develop new technologies are also significant factors.

The company maintained a strong backlog, especially in its defense and power generation segments. It also managed its debt effectively, with borrowings under its credit facility and adherence to debt covenants. Despite revenue pressure in commercial markets, the company focused on operational improvements and cost-reduction programs to mitigate the impact.