10-KPeriod: FY2019

CURTISS WRIGHT CORP Annual Report, Year Ended Dec 31, 2019

Filed February 27, 2020For Securities:CW

Summary

Curtiss-Wright Corporation (CW) reported solid performance in its 2019 10-K filing, demonstrating revenue growth driven by its Defense and Power segments. The company's diversified business model, spanning defense, commercial aerospace, general industrial, and power generation markets, showcased resilience. Notably, the Defense segment saw increased sales from naval and aerospace programs, while the Power segment benefited from naval defense programs and aftermarket services for commercial nuclear power plants. The company also highlighted strategic acquisitions and a strong backlog, indicating positive future prospects. Management's focus on margin improvement initiatives and operational efficiencies contributed to operating income growth. CW's financial health appears robust, with adequate liquidity and cash flow from operations to support ongoing investments and shareholder returns.

Financial Highlights

56 data points
Beta

Revenue

$2.49B

36.1% Gross Margin

Net Income

$307.58M

12.4% Net Margin

EPS (Diluted)

$7.15

Total Assets

$3.76B

Cash & Equivalents

$391.03M

Free Cash Flow

$351.65M

Financial Statements
Beta
Revenue$2.49B
Cost of Revenue$1.59B
Gross Profit$898.75M
R&D Expenses$72.52M
Operating Income$403.95M
Interest Expense$31.35M
Net Income$307.58M
EPS (Basic)$7.20
EPS (Diluted)$7.15
Shares Outstanding (Basic)42.74M
Shares Outstanding (Diluted)43.02M

Key Highlights

  • 1Total net sales increased by 3% to $2.49 billion in 2019 compared to 2018.
  • 2Operating income increased by 8% to $404 million in 2019, with operating margin improving by 70 basis points to 15.8%.
  • 3The Defense segment experienced a 12% increase in sales, driven by strong performance in naval and aerospace defense markets.
  • 4Two strategic acquisitions were completed in 2019, contributing to sales growth and market expansion.
  • 5The company ended the year with a significant backlog of $2.17 billion, indicating strong future demand for its products and services.
  • 6Cash provided by operating activities increased by $85 million to $421 million in 2019.
  • 7The company declared and paid dividends of $0.66 per share in 2019, an increase from $0.60 in 2018.

Frequently Asked Questions

Curtiss-Wright operates across three main segments: Commercial/Industrial, Defense, and Power. These segments serve a diverse range of end markets including defense (aerospace, ground, naval), commercial aerospace, power generation (commercial nuclear), and general industrial (transportation, oil & gas, medical, agriculture, construction).

In 2019, Curtiss-Wright reported total net sales of $2.49 billion, a 3% increase from $2.41 billion in 2018. This growth was supported by increases in sales across all three segments, particularly the Defense segment which saw a 12% rise in sales due to strong performance in naval and aerospace defense markets.

Curtiss-Wright's Defense segment is significantly influenced by U.S. government funding and spending. The filing indicates a stabilized defense spending environment, with recent bipartisan budget agreements providing increased security to federal agencies and setting solid topline spending figures for 2020 and 2021. The company highlights continued solid funding for U.S. shipbuilding programs and increased funding levels for C4ISR, electronic warfare, and unmanned systems programs.

The company manages financial risks primarily through its operational strategies and, when deemed appropriate, through the use of derivative financial instruments. Key risks include interest rate fluctuations and foreign currency exchange rates. Curtiss-Wright uses forward foreign currency contracts and may use interest rate swaps to manage these exposures, and it maintains strong credit standards for counterparties.