10-KPeriod: FY2010

CURTISS WRIGHT CORP Annual Report, Year Ended Dec 31, 2010

Filed February 25, 2011For Securities:CW

Summary

Curtiss-Wright Corporation's 2010 10-K filing reveals a diversified, multinational provider of highly engineered products and services across defense, power generation, oil and gas, commercial aerospace, and general industrial markets. The company reported total net sales of $1.89 billion, a 4.6% increase from the prior year, driven by organic growth in its Flow Control and Metal Treatment segments, alongside contributions from recent acquisitions. Net earnings grew 12% to $107 million, with diluted earnings per share at $2.30. The company's strategy focuses on maintaining a balanced portfolio and leveraging its technical capabilities in demanding, harsh environments. The defense sector, representing 41% of revenues, saw growth in naval and aerospace defense, though tempered by a decline in ground defense spending. Commercial markets rebounded, with notable increases in general industrial and commercial aerospace, while the oil and gas sector experienced some pressure. The company's financial health remains robust, with strong cash flow from operations and manageable debt levels.

Financial Highlights

57 data points
Beta

Revenue

$1.85B

32.7% Gross Margin

Net Income

$102.18M

5.5% Net Margin

EPS (Diluted)

$2.21

Total Assets

$2.23B

Cash & Equivalents

$68.12M

Free Cash Flow

$118.73M

Financial Statements
Beta
Revenue$1.85B
Cost of Revenue$1.25B
Gross Profit$606.26M
R&D Expenses$54.13M
Operating Income$166.69M
Interest Expense$22.11M
Net Income$102.18M
EPS (Basic)$2.23
EPS (Diluted)$2.21
Shares Outstanding (Basic)45.82M
Shares Outstanding (Diluted)46.32M

Key Highlights

  • 1Total net sales increased by 4.6% to $1.89 billion in 2010, compared to $1.81 billion in 2009, driven by organic growth across segments and strategic acquisitions.
  • 2Net earnings rose by 12% to $107 million, with diluted earnings per share improving to $2.30 from $2.08 in the previous year.
  • 3The defense sector remains a significant revenue driver, accounting for 41% of total sales, with strong performance in naval and aerospace defense programs.
  • 4Commercial markets showed a rebound, with notable growth in general industrial (+18%) and commercial aerospace (+11%) segments, offsetting a slight decline in the oil and gas sector.
  • 5Curtiss-Wright's backlog increased by 3% to $1.67 billion at year-end 2010, indicating sustained demand for its engineered products and services.
  • 6The company's financial position is solid, with working capital increasing to $472 million and a debt-to-capitalization ratio that remains well within covenant limits.
  • 7Strategic acquisitions in 2010, including Specialist Electronics Services, Ltd. and Hybricon Corporation, are expected to contribute to future growth and market expansion.

Frequently Asked Questions

Curtiss-Wright's primary revenue drivers in 2010 were its three key segments: Flow Control, Motion Control, and Metal Treatment. The company experienced growth across these segments, with notable strength in the defense sector (naval and aerospace defense), and a rebound in commercial markets, particularly general industrial and commercial aerospace. Demand for highly engineered products and services in harsh environments underpinned this performance.

The defense sector represented 41% of Curtiss-Wright's revenue in 2010 and showed an overall sales growth of 3%. Specifically, the naval market grew by 12% due to increased demand for submarine and aircraft carrier programs, while aerospace defense grew by 11% driven by unmanned aerial vehicles and other aircraft programs. However, ground defense experienced a 28% decline due to reduced spending on certain vehicle programs and program cancellations.

The company's commercial markets grew by 6% in 2010. The general industrial market saw an 18% increase, commercial aerospace grew by 11%, and power generation increased by 3%. The oil and gas market saw a slight decrease of 4% due to customer delays and reduced capital spending. Management anticipates continued improvement in commercial aerospace and power generation, supported by global nuclear power construction and energy demand, while the oil and gas market is expected to see a gradual recovery.

Curtiss-Wright demonstrated solid financial health in 2010. The company generated strong operating cash flow, increased its working capital to $472 million, and maintained manageable debt levels. Total debt was $397 million, and the company remained well within its debt covenants, with significant flexibility under its credit agreement, indicating a stable financial position.