Summary
Curtiss-Wright Corporation's 2018 10-K filing highlights a year of solid growth and strategic execution. The company reported a 6% increase in total net sales, reaching $2.41 billion, driven by robust performance in the Power and Commercial/Industrial segments. Operating income saw a significant 15% increase, with operating margins improving across all segments due to higher volumes, favorable overhead absorption, and ongoing margin improvement initiatives. The Defense segment remained stable, while acquisitions in the Power segment contributed positively to sales and income. The company's strategy focuses on leveraging its diversified portfolio across aerospace, defense, general industrial, and power generation markets to mitigate business cycle volatility and drive long-term shareholder value. Curtiss-Wright continues to invest in research and development, with R&D expenses increasing to $65 million in 2018, underscoring its commitment to technological innovation. Management expressed cautious optimism regarding future growth, citing stable U.S. defense spending and continued demand in commercial aerospace, while acknowledging global economic uncertainties. The company also actively manages its capital structure, evidenced by significant share repurchases and a well-covered dividend, indicating a commitment to returning value to shareholders.
Financial Highlights
56 data points| Revenue | $2.41B |
| Cost of Revenue | $1.54B |
| Gross Profit | $871.26M |
| R&D Expenses | $64.53M |
| Operating Income | $373.63M |
| Interest Expense | $33.98M |
| Net Income | $275.75M |
| EPS (Basic) | $6.28 |
| EPS (Diluted) | $6.22 |
| Shares Outstanding (Basic) | 43.89M |
| Shares Outstanding (Diluted) | 44.32M |
Key Highlights
- 1Total net sales increased by 6% to $2.41 billion in 2018, compared to $2.27 billion in 2017.
- 2Operating income grew by 15% to $374 million in 2018, with operating margins expanding by 120 basis points to 15.5%.
- 3The Power segment showed strong sales growth of 17%, primarily driven by acquisitions and higher production on nuclear programs.
- 4The Commercial/Industrial segment experienced a 4% sales increase, supported by demand in industrial vehicle and valve products.
- 5The Defense segment's sales were flat year-over-year, but operating income and margin improved due to favorable contract adjustments and the absence of acquisition-related accounting costs.
- 6Research and development expenses increased to $65 million in 2018, reflecting investment in future technologies.
- 7The company repurchased approximately 1.7 million shares of its common stock for $199 million in 2018, demonstrating a commitment to capital return.