Summary
Curtiss-Wright Corporation reported solid financial results for the first quarter of 2021, with total net sales slightly declining by 1% to $597.1 million compared to the prior year. However, operating income saw a significant increase of 17% to $85.1 million, driven by improved operating margins, particularly in the Defense Electronics and Naval & Power segments. Net earnings rose by 15% to $59.5 million, or $1.45 per diluted share, reflecting strong operational execution and cost management initiatives. The company's diversified business model, with a significant portion of revenue from defense markets, provided resilience. While the Aerospace & Industrial segment faced headwinds due to the commercial aerospace downturn, the strong performance in Defense Electronics and Naval & Power segments, supported by ongoing defense spending and strategic acquisitions, offset these challenges.
Financial Highlights
53 data points| Revenue | $597.06M |
| Cost of Revenue | $387.30M |
| Gross Profit | $209.76M |
| R&D Expenses | $21.86M |
| Operating Income | $85.07M |
| Interest Expense | $9.96M |
| Net Income | $59.47M |
| EPS (Basic) | $1.45 |
| EPS (Diluted) | $1.45 |
| Shares Outstanding (Basic) | 40.93M |
| Shares Outstanding (Diluted) | 41.10M |
Key Highlights
- 1Total net sales were $597.1 million, a slight decrease of 1% year-over-year, impacted by lower sales in the Aerospace & Industrial segment.
- 2Operating income increased significantly by 17% to $85.1 million, with operating margin expanding by 220 basis points to 14.2%, driven by strong performance in Defense Electronics and Naval & Power.
- 3Net earnings grew 15% to $59.5 million, translating to $1.45 in diluted earnings per share, up from $1.21 in the prior year.
- 4The Defense Electronics segment showed robust growth with a 30% increase in sales to $181.2 million and a 52% surge in operating income, benefiting from acquisitions and increased demand.
- 5The Naval & Power segment reported flat sales at $235.5 million but saw a substantial 35% increase in operating income, driven by favorable product mix and cost savings.
- 6Cash used in operating activities was $(26.6) million, a significant improvement from $(192.6) million in the prior year, mainly due to the absence of a large pension contribution.
- 7The company maintained a strong liquidity position with $147.1 million in cash and cash equivalents and substantial unused credit facility availability.