Summary
Curtiss-Wright Corporation (CW) reported strong third-quarter and year-to-date performance for the period ending September 30, 2013. Total net sales increased significantly, driven by a substantial contribution from recent acquisitions, particularly in the Flow Control segment. This strategic acquisition growth, combined with organic sales increases in commercial markets, paints a positive picture of the company's expansion and market penetration. Profitability also saw a marked improvement, with operating income and margins increasing across most segments, notably in Flow Control and Surface Technologies. This was supported by the successful integration of acquired businesses and benefits from prior-year restructuring initiatives. While defense market sales experienced a slight decline, the robust growth in commercial sectors, especially Oil & Gas and General Industrial, demonstrates the company's diversification strategy yielding positive results. The company also highlighted a dividend increase, signaling confidence in its financial health and commitment to shareholder returns.
Financial Highlights
56 data points| Revenue | $511.38M |
| Cost of Revenue | $333.73M |
| Gross Profit | $178.67M |
| R&D Expenses | $14.69M |
| Operating Income | $65.63M |
| Interest Expense | $9.70M |
| Net Income | $36.36M |
| EPS (Basic) | $0.77 |
| EPS (Diluted) | $0.76 |
| Shares Outstanding (Basic) | 47.08M |
| Shares Outstanding (Diluted) | 48.06M |
Key Highlights
- 1Total net sales for the nine months ended September 30, 2013, increased by 20% to $1.81 billion, driven largely by acquisitions contributing 20% to this growth.
- 2Operating income for the nine months increased by 60% to $158.7 million, with operating margin improving to 8.8% from 6.6% in the prior year.
- 3The Flow Control segment showed significant growth, with sales up 21% and operating income more than doubling to $76.7 million, benefiting from acquisitions and favorable market conditions in naval defense and power generation.
- 4The Controls segment reported a 22% increase in sales and a 22% rise in operating income, driven by acquisitions and organic growth in commercial aerospace.
- 5Surface Technologies segment also saw strong performance, with sales up 12% and operating income increasing by 61%, largely due to acquisitions and increased coating services in commercial aerospace.
- 6The company repurchased no shares in the first nine months of 2013, compared to $5 million in the prior year, and increased its quarterly dividend by 11.1%.
- 7Cash flow from operations was strong, increasing to $134.4 million for the nine months ended September 30, 2013, up from $53.9 million in the prior year.