Summary
Curtiss-Wright Corporation reported strong performance for the first quarter of 2019, with total net sales increasing by 6% to $578.3 million compared to the prior year period. This growth was driven by a significant 24% increase in the Power segment, largely attributable to the acquisition of Dresser-Rand Government Business (DRG) and increased naval defense sales. The Defense segment also saw a modest 2% sales increase, while the Commercial/Industrial segment experienced a slight 1% decrease. Operating income saw a robust 12% increase to $72.0 million, with operating margins improving to 12.5%. This improvement was bolstered by the DRG acquisition and favorable overhead absorption in the Power segment, partially offset by an unfavorable mix shift in the Defense segment. Net earnings rose by a significant 27% to $55.6 million, or $1.29 per diluted share, reflecting improved operational performance and a lower effective tax rate.
Financial Highlights
54 data points| Revenue | $578.31M |
| Cost of Revenue | $381.44M |
| Gross Profit | $196.87M |
| R&D Expenses | $17.24M |
| Operating Income | $72.05M |
| Interest Expense | $7.27M |
| Net Income | $55.59M |
| EPS (Basic) | $1.30 |
| EPS (Diluted) | $1.29 |
| Shares Outstanding (Basic) | 42.80M |
| Shares Outstanding (Diluted) | 43.06M |
Key Highlights
- 1Total net sales increased by 6% to $578.3 million, driven by growth in the Power segment (+24%) and Defense segment (+2%), partially offset by a slight decrease in Commercial/Industrial (-1%).
- 2Operating income grew by 12% to $72.0 million, with an improved operating margin of 12.5% from 11.8% in the prior year.
- 3Net earnings surged by 27% to $55.6 million, resulting in diluted EPS of $1.29, up from $0.98 in the prior year.
- 4The acquisition of Tactical Communications Group (TCG) for $49 million in March 2019, adding to the Defense segment and contributing $21.1 million in goodwill.
- 5New orders increased by 23% to $746.7 million, indicating strong future demand, particularly in naval defense.
- 6The effective tax rate decreased to 20.9% from 28.4% in the prior year, positively impacting net earnings.
- 7The company adopted ASC 842, Leases, effective January 1, 2019, resulting in an increase of approximately $151 million in both total assets and total liabilities.