Summary
Curtiss-Wright Corporation (CW) reported strong financial performance for the six months ended June 30, 2018, with total net sales increasing by 7% to $1,167.8 million and net earnings rising significantly by 42% to $118.4 million compared to the prior year period. This growth was driven by robust performance across its segments, particularly in Defense and Commercial/Industrial, with notable increases in operating income and margins. The company also saw a substantial increase in new orders, indicating strong future demand. The company successfully integrated the Dresser-Rand Government Business (DRG) acquisition in the Power segment, which contributed positively to sales, though it incurred some initial purchase accounting costs. While the Power segment experienced a slight decline in operating income due to these costs and lower production on the AP1000 U.S. program, overall operational efficiency improvements and favorable contract adjustments in other segments, coupled with the benefits of the Tax Cuts and Jobs Act, contributed to improved profitability. Investors should note the company's continued focus on strategic acquisitions and margin improvement initiatives, alongside its disciplined capital allocation, including share repurchases and dividends.
Financial Highlights
55 data points| Revenue | $620.30M |
| Cost of Revenue | $393.80M |
| Gross Profit | $226.50M |
| R&D Expenses | $15.05M |
| Operating Income | $102.08M |
| Interest Expense | $9.57M |
| Net Income | $74.79M |
| EPS (Basic) | $1.69 |
| EPS (Diluted) | $1.68 |
| Shares Outstanding (Basic) | 44.12M |
| Shares Outstanding (Diluted) | 44.55M |
Key Highlights
- 1Total net sales for the first six months of 2018 increased by 7% to $1.168 billion, compared to $1.091 billion in the prior year.
- 2Net earnings grew by 42% to $118.4 million for the first six months of 2018, up from $83.2 million in the prior year.
- 3Operating income saw a substantial increase of 31% to $166.6 million for the six-month period, with operating margin improving by 260 basis points.
- 4New orders increased by 9% to $1.305 billion for the first six months of 2018, signaling strong future revenue potential.
- 5The Defense segment showed exceptional growth with sales up 10% and operating income up 81% for the six-month period.
- 6The company completed a significant acquisition of the Dresser-Rand Government Business (DRG) for $212.7 million, integrating it into the Power segment.
- 7The effective tax rate decreased due to the U.S. corporate income tax rate reduction from 35% to 21% under the Tax Cuts and Jobs Act.