Summary
Curtiss-Wright Corporation (CW) reported strong performance for the first six months of 2014, with total net sales increasing by 10% to $1.28 billion, driven by significant growth in its Commercial/Industrial and Energy segments. Net earnings from continuing operations rose 47% to $84.3 million. The company's strategic realignment into Commercial/Industrial, Defense, and Energy segments appears to be contributing positively, with the Commercial/Industrial segment showing robust 17% sales growth and improved operating margins. The company also demonstrated solid cash flow generation, with operating activities providing $84.4 million. Despite overall positive trends, the Defense segment experienced flat sales, though new orders saw a substantial increase of 47%. The company also completed several strategic acquisitions, including CCRS and Engemasa, which are expected to contribute to future growth. Management highlighted an increase in the quarterly dividend by 30% and actively engaged in share repurchases, indicating confidence in the company's financial health and future prospects. However, investors should note the ongoing legal proceedings with Canadian Natural Resources Limited, which could potentially impact future financial results.
Financial Highlights
56 data points| Revenue | $569.20M |
| Cost of Revenue | $370.97M |
| Gross Profit | $198.23M |
| R&D Expenses | $17.36M |
| Operating Income | $72.16M |
| Interest Expense | $8.99M |
| Net Income | $36.39M |
| EPS (Basic) | $0.76 |
| EPS (Diluted) | $0.74 |
| Shares Outstanding (Basic) | 48.17M |
| Shares Outstanding (Diluted) | 49.24M |
Key Highlights
- 1Total net sales increased 10% year-over-year to $1.28 billion for the first six months of 2014.
- 2Net earnings from continuing operations grew significantly by 47% to $84.3 million for the same period.
- 3Commercial/Industrial segment sales grew 17%, and Energy segment sales grew 10%, demonstrating strong performance in these areas.
- 4Operating income increased 39% to $140.5 million, with operating margin improving by 230 basis points.
- 5The company repurchased $24 million of its common stock and increased its quarterly dividend by 30%.
- 6New orders increased by 20% year-over-year to $1.41 billion, signaling future revenue potential.
- 7Divestitures of Benshaw and 3D Radar businesses, and reclassification of the Vessels business as held for sale, are noted as part of ongoing strategic adjustments.