Summary
Curtiss-Wright Corporation (CW) reported solid top-line growth for the nine months ended September 30, 2014, with total net sales increasing by 9% to $1.67 billion compared to the same period in 2013. This growth was driven by strong performance in the Commercial/Industrial and Energy segments. The company also saw a significant increase in operating income, up 25% to $207 million, indicating effective cost management and margin improvement initiatives. Despite a notable increase in earnings from continuing operations, net earnings were lower than the prior year due to a substantial loss from discontinued operations, largely driven by impairments on assets held for sale. Financially, the company maintained a strong liquidity position, with cash and cash equivalents increasing to $222 million. The company reduced its debt levels and strengthened its balance sheet, with total liabilities decreasing. A key strategic move during the period was the divestiture of non-core businesses and the classification of others as held for sale, streamlining the company's operations and focusing on core markets. The company also announced a new share repurchase program, signaling confidence in its future prospects and commitment to returning value to shareholders.
Financial Highlights
57 data points| Revenue | $558.38M |
| Cost of Revenue | $365.05M |
| Gross Profit | $193.33M |
| R&D Expenses | $16.91M |
| Operating Income | $74.25M |
| Interest Expense | $9.01M |
| Net Income | $25.03M |
| EPS (Basic) | $0.52 |
| EPS (Diluted) | $0.51 |
| Shares Outstanding (Basic) | 48.07M |
| Shares Outstanding (Diluted) | 49.10M |
Key Highlights
- 1Total net sales increased by 9% to $1.67 billion for the nine months ended September 30, 2014, driven by strong performance in Commercial/Industrial and Energy segments.
- 2Operating income grew by 25% to $207 million, reflecting effective cost management and margin improvement initiatives.
- 3Net earnings were impacted by a significant loss from discontinued operations ($27 million), largely due to impairment charges on assets held for sale.
- 4Cash from operating activities increased to $153 million, supporting overall liquidity, with cash and cash equivalents ending at $222 million.
- 5The company actively managed its portfolio by divesting non-core businesses and classifying others as held for sale.
- 6Debt levels were reduced, and the company maintained compliance with debt covenants.
- 7A new share repurchase program authorizing up to $300 million was announced, indicating positive future outlook and commitment to shareholder returns.