Curtiss-Wright Reports Fourth Quarter and Full-Year 2021 Financial Results; Full-Year 2022 Guidance Reflects Higher Sales, Operating Margin and EPS
Curtiss-Wright Corporation reported strong financial results for Q4 and full-year 2021, achieving record metrics. Q4 sales reached $667 million, with diluted EPS of $1.94 and adjusted EPS of $2.40, representing a 6% increase. Full-year sales were $2.5 billion, a 7% growth, with an adjusted operating margin of 17%, up 70 basis points. New orders totaled $676 million, up 19%. The company also completed $350 million in annual share repurchases. For 2022, guidance suggests total sales growth of 3% to 5% and adjusted EPS growth of 10% to 12%.
- Record full-year adjusted operating margin of 17.0%, up 70 basis points.
- New orders increased 19% to $676 million in Q4.
- Adjusted diluted EPS rose 11% year-over-year to $7.34.
- Record share repurchases totaling $350 million in 2021.
- Reported free cash flow decreased 11% year-over-year to $219 million.
- Naval & Power segment sales declined 6% in Q4.
Company Achieves Record Full-Year Adjusted Operating Margin of
Fourth Quarter 2021 Highlights:
-
Reported sales of
, diluted earnings per share (EPS) of$667 million , and free cash flow (FCF) of$1.94 ;$219 million -
Adjusted sales of
, up$655 million 2% ; -
Adjusted diluted EPS of
, up$2.40 6% ; -
New orders of
, up$676 million 19% ; -
Adjusted FCF of
, with$219 million 230% FCF conversion; and -
Record share repurchases of approximately
.$258 million
Full-Year 2021 Highlights:
-
Reported sales of
, operating income of$2.5 billion , operating margin of$383 million 15.3% , diluted EPS of , and FCF of$6.58 ;$347 million -
Adjusted sales of
, up$2.5 billion 7% ; -
Adjusted operating income of
, up$420 million 12% ; -
Record Adjusted operating margin of
17.0% , up 70 basis points; -
Adjusted diluted EPS of
, up$7.34 11% ; -
New orders of
, up$2.5 billion 11% ; Backlog up3% ; -
Adjusted FCF of
, with$347 million 116% FCF conversion; and -
Record annual share repurchases of
.$350 million
“Curtiss-Wright delivered strong fourth quarter results with better-than-expected profitability, strong free cash flow and tremendous order growth,” said
“We continue to utilize our strong and healthy balance sheet to implement a disciplined capital deployment strategy. Throughout the past year, we delivered on our commitment to drive returns to our shareholders by executing record annual share repurchases of
“Over the past few weeks, we resolved two significant legacy matters. First, we have reached an agreement with Westinghouse to settle all outstanding legal matters covering both the
“Looking to 2022, we are projecting total sales growth of
Fourth Quarter 2021 Operating Results
(In millions) |
Q4-2021 |
Q4-2020 |
Change |
||||
Reported |
|
|
|
||||
Sales |
$ |
667 |
$ |
668 |
|
||
Operating income |
$ |
105 |
$ |
76 |
|
||
Operating margin |
|
|
|
|
440 bps |
||
|
|
|
|
||||
Adjusted (1) |
|
|
|
||||
Sales |
$ |
655 |
$ |
641 |
|
||
Operating income |
$ |
129 |
$ |
126 |
|
||
Operating margin |
|
|
|
|
- |
(1) |
Reconciliations of Reported to Adjusted operating results are available in the Appendix. |
-
Adjusted sales of
, up$655 million , or$14 million 2% ; -
Total Aerospace & Defense (A&D) market sales were flat, while total Commercial market sales increased6% ; - In our A&D markets, strong double-digit growth in commercial aerospace and the contribution from the PacStar acquisition in ground defense were offset by reductions in the aerospace defense and naval defense markets due to the timing of sales and ongoing supply chain headwinds;
- In our Commercial markets, we experienced continued strong demand in the general industrial market, as well as higher sales within the power & process markets, despite the wind down on the China Direct AP1000 program;
-
Adjusted operating income of
improved$129 million 2% , while Adjusted operating margin remained flat at19.7% . Higher operating income was driven by favorable overhead absorption on higher revenues in our Aerospace & Industrial and Defense Electronics segments, as well as the benefits of our ongoing company-wide operational excellence initiatives. These improvements were partially offset by lower revenues and unfavorable mix in the Naval & Power segment; and -
Non-segment expenses of
, up$12 million , primarily due to higher environmental costs.$2 million
Fourth Quarter 2021 Segment Performance
Aerospace & Industrial
(In millions) |
Q4-2021 |
Q4-2020 |
Change |
||||
Reported |
|
|
|
||||
Sales |
$ |
210 |
$ |
213 |
( |
||
Operating income |
$ |
40 |
$ |
34 |
|
||
Operating margin |
|
|
|
|
300 bps |
||
|
|
|
|
||||
Adjusted (1) |
|
|
|
||||
Sales |
$ |
208 |
$ |
192 |
|
||
Operating income |
$ |
40 |
$ |
34 |
|
||
Operating margin |
|
|
|
|
200 bps |
(1) |
Reconciliations of Reported to Adjusted operating results are available in the Appendix. |
-
Adjusted sales of
, up approximately$208 million , or$15 million 8% ; - Higher general industrial market revenue was principally driven by the continued strong rebound in demand for industrial vehicle products for on- and off-highway platforms;
- Higher commercial aerospace market revenue reflected higher sales of sensors products and surface treatment services on narrowbody platforms, partially offset by lower actuation sales on widebody platforms;
- Aerospace defense market revenue increased primarily due to higher sales of actuation products and surface treatment services on the F-35 program; and
-
Adjusted operating income of
, up$40 million 20% from the prior year, while Adjusted operating margin increased 200 basis points to19.5% , reflecting strong absorption on higher sales and the benefits of our ongoing operational excellence initiatives.
Defense Electronics
(In millions) |
Q4-2021 |
Q4-2020 |
Change |
||||
Reported |
|
|
|
||||
Sales |
$ |
199 |
$ |
181 |
|
||
Operating income |
$ |
52 |
$ |
35 |
|
||
Operating margin |
|
|
|
|
710 bps |
||
|
|
|
|
||||
Adjusted (1) |
|
|
|
||||
Sales |
$ |
200 |
$ |
182 |
|
||
Operating income |
$ |
53 |
$ |
45 |
|
||
Operating margin |
|
|
|
|
160 bps |
(1) |
Reconciliations of Reported to Adjusted operating results are available in the Appendix. |
-
Adjusted sales of
, up approximately$200 million , or$17 million 10% ; - Lower aerospace defense market revenues reflected the timing of sales of our embedded computing equipment on various programs, as certain revenues shifted into 2022 due to ongoing supply chain headwinds. This decrease was partially offset by higher production revenues on the F-35 program;
- Higher ground defense market revenue was principally driven by the contribution from the PacStar acquisition for tactical battlefield communications equipment;
- Higher commercial aerospace market revenue reflected increased sales of avionics and electronic systems on various domestic and international platforms; and
-
Adjusted operating income of
, up$53 million 17% from the prior year, while Adjusted operating margin increased 160 basis points to26.5% , as solid absorption on higher sales and favorable mix in defense electronics more than offset unfavorable foreign currency translation.
Naval & Power
(In millions) |
Q4-2021 |
Q4-2020 |
Change |
||||
Reported |
|
|
|
||||
Sales |
$ |
258 |
$ |
274 |
( |
||
Operating income |
$ |
25 |
$ |
18 |
|
||
Operating margin |
|
|
|
|
330 bps |
||
|
|
|
|
||||
Adjusted (1) |
|
|
|
||||
Sales |
$ |
248 |
$ |
267 |
( |
||
Operating income |
$ |
48 |
$ |
57 |
( |
||
Operating margin |
|
|
|
|
(210 bps) |
(1) |
Reconciliations of Reported to Adjusted operating results are available in the Appendix. |
-
Adjusted sales of
, down$248 million , or$19 million 7% ; - Naval defense market revenue declines primarily reflected lower revenues on the Virginia-class submarine program, partially offset by higher revenues on the CVN-81 aircraft carrier program;
- Higher power & process market sales reflected solid industrial valve demand in the oil and gas market and higher domestic nuclear aftermarket revenues, partially offset by the timing of production on the China Direct AP1000 program; and
-
Adjusted operating income of
, down$48 million 16% from the prior year, while Adjusted operating margin decreased 210 basis points to19.3% , driven by unfavorable absorption on lower revenues and unfavorable mix in the power & process market.
Free Cash Flow
(In millions) |
Q4-2021 |
Q4-2020 |
Change |
||||
Net cash provided by operating activities |
$ | 232 |
$ |
257 |
( |
||
Capital expenditures |
(13) |
|
(11) |
( |
|||
Reported free cash flow |
$ | 219 |
$ |
246 |
( |
||
Adjusted free cash flow (1) |
$ | 219 |
$ |
256 |
( |
(1) |
A reconciliation of Reported to Adjusted free cash flow is available in the Appendix. |
-
Reported free cash flow of
decreased approximately$219 million , or$28 million 11% , primarily due to higher working capital and higher taxes; -
Capital expenditures increased
compared with the prior year, primarily due to higher capital investments within the Naval & Power segment; and$2 million -
Adjusted free cash flow of
decreased$219 million , or approximately$37 million 15% , compared with record free cash flow achieved in the prior year period.
New Orders and Backlog
-
New orders of
increased$676 million 19% and generated an overall book-to-bill that exceeded 1.0x, principally driven by solid demand within our A&D markets for our commercial aerospace and naval defense products; and -
Backlog of
, up$2.2 billion 3% fromDecember 31, 2020 , reflects higher demand in both our A&D and commercial markets.
Share Repurchase and Dividends
-
During the fourth quarter, the Company repurchased 1.96 million shares of its common stock for approximately
;$258 million -
During full-year 2021, the Company repurchased 2.70 million shares for a record
; and$350 million -
The Company also declared a quarterly dividend of
a share, unchanged from the previous quarter.$0.18
Other Items – Business Held for Sale
-
In
January 2022 , the Company completed the sale of its German valves business.
Other Items – Westinghouse Legal Settlement
-
In
February 2022 , the Company and Westinghouse reached an agreement to settle all open claims and counterclaims under the AP1000U.S. andChina contracts. Based on the terms of the settlement, the Company recorded full-year charges of approximately related to this matter for the year ended$13 million December 31, 2021 ; and - The Company’s 2021 non-GAAP results have been adjusted for this legal matter.
Full-Year 2022 Guidance
The Company’s full-year 2022 Adjusted financial guidance(1) is as follows:
(In millions, except EPS) |
2022 Adjusted
|
% Chg vs 2021 |
Total Sales |
|
Up |
Operating Income |
|
Up |
Operating Margin |
|
Up 10 - 30 bps |
Diluted EPS |
|
Up |
Free Cash Flow(2) |
|
Up |
(1) |
Reconciliations of Reported to Adjusted 2021 operating results and 2022 financial guidance are available in the Appendix. |
(2) |
2022 Adjusted Free Cash Flow includes |
A more detailed breakdown of the Company’s 2022 financial guidance by segment and by market, as well as all reconciliations of Reported GAAP amounts to Adjusted non-GAAP amounts can be found in the accompanying schedules. Historical financial results are available in the Investor Relations section of Curtiss-Wright’s website.
Conference Call & Webcast Information
The Company will host a conference call to discuss fourth quarter and full-year 2021 financial results and expectations for 2022 guidance at
(Tables to Follow)
|
||||||||||||||||
CONSOLIDATED STATEMENTS OF EARNINGS (UNAUDITED) |
||||||||||||||||
($'s in thousands, except per share data) |
||||||||||||||||
|
|
|
|
|
|
|
|
|
||||||||
|
|
Three Months Ended |
|
Year Ended |
||||||||||||
|
|
|
|
|
||||||||||||
|
|
2021 |
|
2020 |
|
2021 |
|
2020 |
||||||||
Product sales |
|
$ |
556,911 |
|
|
$ |
583,314 |
|
|
$ |
2,109,617 |
|
|
$ |
2,041,086 |
|
Service sales |
|
|
109,847 |
|
|
|
85,130 |
|
|
|
396,314 |
|
|
|
350,250 |
|
Total net sales |
|
|
666,758 |
|
|
|
668,444 |
|
|
|
2,505,931 |
|
|
|
2,391,336 |
|
|
|
|
|
|
|
|
|
|
||||||||
Cost of product sales |
|
|
340,432 |
|
|
|
373,676 |
|
|
|
1,330,191 |
|
|
|
1,319,562 |
|
Cost of service sales |
|
|
64,454 |
|
|
|
52,967 |
|
|
|
242,384 |
|
|
|
230,547 |
|
Total cost of sales |
|
|
404,886 |
|
|
|
426,643 |
|
|
|
1,572,575 |
|
|
|
1,550,109 |
|
|
|
|
|
|
|
|
|
|
||||||||
Gross profit |
|
|
261,872 |
|
|
|
241,801 |
|
|
|
933,356 |
|
|
|
841,227 |
|
|
|
|
|
|
|
|
|
|
||||||||
Research and development expenses |
|
|
21,814 |
|
|
|
20,653 |
|
|
|
88,489 |
|
|
|
74,816 |
|
Selling expenses |
|
|
27,729 |
|
|
|
27,887 |
|
|
|
116,956 |
|
|
|
109,537 |
|
General and administrative expenses |
|
|
96,532 |
|
|
|
72,773 |
|
|
|
326,140 |
|
|
|
303,288 |
|
Impairment of assets held for sale |
|
|
10,432 |
|
|
|
33,043 |
|
|
|
19,088 |
|
|
|
33,043 |
|
Restructuring expenses |
|
|
— |
|
|
|
10,965 |
|
|
|
— |
|
|
|
31,695 |
|
|
|
|
|
|
|
|
|
|
||||||||
Operating income |
|
|
105,365 |
|
|
|
76,480 |
|
|
|
382,683 |
|
|
|
288,848 |
|
|
|
|
|
|
|
|
|
|
||||||||
Interest expense |
|
|
10,146 |
|
|
|
10,486 |
|
|
|
40,240 |
|
|
|
35,545 |
|
Other income, net |
|
|
3,157 |
|
|
|
2,904 |
|
|
|
12,067 |
|
|
|
9,748 |
|
|
|
|
|
|
|
|
|
|
||||||||
Earnings before income taxes |
|
|
98,376 |
|
|
|
68,898 |
|
|
|
354,510 |
|
|
|
263,051 |
|
Provision for income taxes |
|
|
(21,797 |
) |
|
|
(14,905 |
) |
|
|
(87,351 |
) |
|
|
(61,659 |
) |
Net earnings |
|
$ |
76,579 |
|
|
$ |
53,993 |
|
|
$ |
267,159 |
|
|
$ |
201,392 |
|
|
|
|
|
|
|
|
|
|
||||||||
Net earnings per share: |
|
|
|
|
|
|
|
|
||||||||
Basic earnings per share |
|
$ |
1.95 |
|
|
$ |
1.31 |
|
|
$ |
6.61 |
|
|
$ |
4.83 |
|
Diluted earnings per share |
|
$ |
1.94 |
|
|
$ |
1.30 |
|
|
$ |
6.58 |
|
|
$ |
4.80 |
|
|
|
|
|
|
|
|
|
|
||||||||
Dividends per share |
|
$ |
0.18 |
|
|
$ |
0.17 |
|
|
$ |
0.71 |
|
|
$ |
0.68 |
|
|
|
|
|
|
|
|
|
|
||||||||
Weighted average shares outstanding: |
|
|
|
|
|
|
|
|
||||||||
Basic |
|
|
39,309 |
|
|
|
41,209 |
|
|
|
40,417 |
|
|
|
41,738 |
|
Diluted |
|
|
39,524 |
|
|
|
41,459 |
|
|
|
40,602 |
|
|
|
41,999 |
|
|
||||||||
CONSOLIDATED BALANCE SHEETS (UNAUDITED) |
||||||||
($'s in thousands, except par value) |
||||||||
|
|
|
|
|
||||
|
|
|
|
|
||||
|
|
2021 |
|
2020 |
||||
Assets |
|
|
|
|
||||
Current assets: |
|
|
|
|
||||
Cash and cash equivalents |
|
$ |
171,004 |
|
|
$ |
198,248 |
|
Receivables, net |
|
|
647,148 |
|
|
|
588,718 |
|
Inventories, net |
|
|
411,567 |
|
|
|
428,879 |
|
Assets held for sale |
|
|
10,988 |
|
|
|
27,584 |
|
Other current assets |
|
|
67,101 |
|
|
|
57,395 |
|
Total current assets |
|
|
1,307,808 |
|
|
|
1,300,824 |
|
Property, plant, and equipment, net |
|
|
360,031 |
|
|
|
378,200 |
|
|
|
|
1,463,026 |
|
|
|
1,455,137 |
|
Other intangible assets, net |
|
|
538,077 |
|
|
|
609,630 |
|
Operating lease right-of-use assets, net |
|
|
143,613 |
|
|
|
150,898 |
|
Prepaid pension asset |
|
|
256,422 |
|
|
|
92,531 |
|
Other assets |
|
|
34,568 |
|
|
|
34,114 |
|
Total assets |
|
$ |
4,103,545 |
|
|
$ |
4,021,334 |
|
|
|
|
|
|
||||
Liabilities |
|
|
|
|
||||
Current liabilities: |
|
|
|
|
||||
Current portion of long-term and short term debt |
|
$ |
— |
|
|
$ |
100,000 |
|
Accounts payable |
|
|
211,640 |
|
|
|
201,237 |
|
Accrued expenses |
|
|
144,466 |
|
|
|
140,200 |
|
Income taxes payable |
|
|
3,235 |
|
|
|
6,633 |
|
Deferred revenue |
|
|
260,157 |
|
|
|
253,411 |
|
Liabilities held for sale |
|
|
12,655 |
|
|
|
10,141 |
|
Other current liabilities |
|
|
102,714 |
|
|
|
98,755 |
|
Total current liabilities |
|
|
734,867 |
|
|
|
810,377 |
|
Long-term debt, net |
|
|
1,050,610 |
|
|
|
958,292 |
|
Deferred tax liabilities |
|
|
147,349 |
|
|
|
115,007 |
|
Accrued pension and other postretirement benefit costs |
|
|
91,329 |
|
|
|
98,345 |
|
Long-term operating lease liability |
|
|
127,152 |
|
|
|
133,069 |
|
Long-term portion of environmental reserves |
|
|
13,656 |
|
|
|
15,422 |
|
Other liabilities |
|
|
112,092 |
|
|
|
103,248 |
|
Total liabilities |
|
|
2,277,055 |
|
|
|
2,233,760 |
|
|
|
|
|
|
||||
Stockholders' equity |
|
|
|
|
||||
Common stock, |
|
$ |
49,187 |
|
|
$ |
49,187 |
|
Additional paid in capital |
|
|
127,104 |
|
|
|
122,535 |
|
Retained earnings |
|
|
2,908,827 |
|
|
|
2,670,328 |
|
Accumulated other comprehensive loss |
|
|
(190,465 |
) |
|
|
(310,856 |
) |
Less: cost of treasury stock |
|
|
(1,068,163 |
) |
|
|
(743,620 |
) |
Total stockholders' equity |
|
|
1,826,490 |
|
|
|
1,787,574 |
|
|
|
|
|
|
||||
Total liabilities and stockholders' equity |
|
$ |
4,103,545 |
|
|
$ |
4,021,334 |
|
Use and Definitions of Non-GAAP Financial Information (Unaudited)
The Corporation supplements its financial information determined under
The following definitions are provided:
Adjusted Sales, Operating Income, Operating Margin, Net Earnings and Diluted EPS
These Adjusted financials are defined as Reported Sales, Operating Income, Operating Margin, Net Earnings and Diluted Earnings per Share under GAAP excluding: (i) the impact of first year purchase accounting costs associated with acquisitions, specifically one-time inventory step-up, backlog amortization, deferred revenue adjustments and transaction costs; (ii) one-time transition and IT security costs associated with the relocation of a business in the prior year period; (iii) the non-cash impairment of capitalized development costs in the prior year period; (iv) significant restructuring costs in 2020 associated with its operations; (v) the sale or divestiture of a business or product line; (vi) pension settlement charges; and (vii) significant legal settlements and impairment costs.
|
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RECONCILIATION OF AS REPORTED TO ADJUSTED (UNAUDITED) |
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($'s in thousands) |
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|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
|
Three Months Ended |
|
Three Months Ended |
|
|
|
|
||||||||||||||||||||
|
|
|
|
|
% Change |
||||||||||||||||||||||
|
As Reported |
|
Adjustments |
|
Adjusted |
|
As Reported |
|
Adjustments |
|
Adjusted |
|
Reported |
|
Adjusted |
||||||||||||
Sales: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Aerospace & Industrial (1) |
$ |
209,994 |
|
|
$ |
(2,418 |
) |
|
$ |
207,576 |
|
|
$ |
212,766 |
|
|
$ |
(20,553 |
) |
|
$ |
192,213 |
|
|
(1)% |
|
|
Defense Electronics (2) |
|
199,259 |
|
|
|
360 |
|
|
|
199,619 |
|
|
|
181,239 |
|
|
|
935 |
|
|
|
182,174 |
|
|
|
|
|
Naval & Power (3) |
|
257,505 |
|
|
|
(9,401 |
) |
|
|
248,104 |
|
|
|
274,439 |
|
|
|
(7,360 |
) |
|
|
267,079 |
|
|
(6)% |
|
(7)% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Total sales |
$ |
666,758 |
|
|
$ |
(11,459 |
) |
|
$ |
655,299 |
|
|
$ |
668,444 |
|
|
$ |
(26,978 |
) |
|
$ |
641,466 |
|
|
—% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Operating income (expense): |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Aerospace & Industrial (1) |
$ |
39,943 |
|
|
$ |
493 |
|
|
$ |
40,436 |
|
|
$ |
34,079 |
|
|
$ |
(362 |
) |
|
$ |
33,717 |
|
|
|
|
|
Defense Electronics (2) |
|
52,433 |
|
|
|
442 |
|
|
|
52,875 |
|
|
|
34,846 |
|
|
|
10,492 |
|
|
|
45,338 |
|
|
|
|
|
Naval & Power (3) |
|
25,025 |
|
|
|
22,802 |
|
|
|
47,827 |
|
|
|
17,528 |
|
|
|
39,513 |
|
|
|
57,041 |
|
|
|
|
(16)% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Total segments |
$ |
117,401 |
|
|
$ |
23,737 |
|
|
$ |
141,138 |
|
|
$ |
86,453 |
|
|
$ |
49,643 |
|
|
$ |
136,096 |
|
|
|
|
|
Corporate and other |
|
(12,036 |
) |
|
|
(22 |
) |
|
|
(12,058 |
) |
|
|
(9,973 |
) |
|
|
65 |
|
|
|
(9,908 |
) |
|
(21)% |
|
(22)% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Total operating income |
$ |
105,365 |
|
|
$ |
23,715 |
|
|
$ |
129,080 |
|
|
$ |
76,480 |
|
|
$ |
49,708 |
|
|
$ |
126,188 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Operating margins: |
As Reported |
|
|
|
Adjusted |
|
As
|
|
|
|
Adjusted |
|
Reported |
|
Adjusted |
||||||||||||
Aerospace & Industrial |
|
19.0 |
% |
|
|
|
|
19.5 |
% |
|
|
16.0 |
% |
|
|
|
|
17.5 |
% |
|
300 bps |
|
200 bps |
||||
Defense Electronics |
|
26.3 |
% |
|
|
|
|
26.5 |
% |
|
|
19.2 |
% |
|
|
|
|
24.9 |
% |
|
710 bps |
|
160 bps |
||||
Naval & Power |
|
9.7 |
% |
|
|
|
|
19.3 |
% |
|
|
6.4 |
% |
|
|
|
|
21.4 |
% |
|
330 bps |
|
(210 bps) |
||||
Total Curtiss-Wright |
|
15.8 |
% |
|
|
|
|
19.7 |
% |
|
|
11.4 |
% |
|
|
|
|
19.7 |
% |
|
440 bps |
|
— bps |
||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Segment margins |
|
17.6 |
% |
|
|
|
|
21.5 |
% |
|
|
12.9 |
% |
|
|
|
|
21.2 |
% |
|
470 bps |
|
30 bps |
||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
(1) Excludes our build-to-print actuation product line supporting the Boeing 737 Max program in both periods, and restructuring costs incurred in the prior period. |
|||||||||||||||||||||||||||
(2) Excludes first year purchase accounting adjustments in both periods and restructuring costs incurred in the prior period. |
|||||||||||||||||||||||||||
(3) Excludes the results of operations and related impairments from our German valves business in both periods, one-time legal settlement costs in the current period, first year purchase accounting adjustments in the prior period, and restructuring costs in the prior period. |
|
|||||||||||||||||||||||||||
RECONCILIATION OF AS REPORTED TO ADJUSTED (UNAUDITED) |
|||||||||||||||||||||||||||
($'s in thousands) |
|||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
|
Twelve Months Ended |
|
Twelve Months Ended |
|
|
|
|
||||||||||||||||||||
|
|
|
|
|
% Change |
||||||||||||||||||||||
|
As
|
|
Adjustments |
|
Adjusted |
|
As
|
|
Adjustments |
|
Adjusted |
|
Reported |
|
Adjusted |
||||||||||||
Sales: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Aerospace & Industrial (1) |
$ |
786,334 |
|
|
$ |
(11,182 |
) |
|
$ |
775,152 |
|
|
$ |
805,673 |
|
|
$ |
(67,482 |
) |
|
$ |
738,191 |
|
|
(2)% |
|
|
Defense Electronics (2) |
|
724,326 |
|
|
|
3,600 |
|
|
|
727,926 |
|
|
|
608,757 |
|
|
|
1,884 |
|
|
|
610,641 |
|
|
|
|
|
Naval & Power (3) |
|
995,271 |
|
|
|
(29,869 |
) |
|
|
965,402 |
|
|
|
976,906 |
|
|
|
(25,963 |
) |
|
|
950,943 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Total sales |
$ |
2,505,931 |
|
|
$ |
(37,451 |
) |
|
$ |
2,468,480 |
|
|
$ |
2,391,336 |
|
|
$ |
(91,562 |
) |
|
$ |
2,299,774 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Operating income (expense): |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Aerospace & Industrial (1) |
$ |
121,817 |
|
|
$ |
(1,586 |
) |
|
$ |
120,231 |
|
|
$ |
99,714 |
|
|
$ |
(1,879 |
) |
|
$ |
97,835 |
|
|
|
|
|
Defense Electronics (2) |
|
159,089 |
|
|
|
5,134 |
|
|
|
164,223 |
|
|
|
118,748 |
|
|
|
25,625 |
|
|
|
144,373 |
|
|
|
|
|
Naval & Power (3) |
|
141,660 |
|
|
|
34,139 |
|
|
|
175,799 |
|
|
|
108,151 |
|
|
|
62,715 |
|
|
|
170,866 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Total segments |
$ |
422,566 |
|
|
$ |
37,687 |
|
|
$ |
460,253 |
|
|
$ |
326,613 |
|
|
$ |
86,461 |
|
|
$ |
413,074 |
|
|
|
|
|
Corporate and other |
|
(39,883 |
) |
|
|
53 |
|
|
|
(39,830 |
) |
|
|
(37,765 |
) |
|
|
186 |
|
|
|
(37,579 |
) |
|
(6)% |
|
(6)% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Total operating income |
$ |
382,683 |
|
|
$ |
37,740 |
|
|
$ |
420,423 |
|
|
$ |
288,848 |
|
|
$ |
86,647 |
|
|
$ |
375,495 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Operating margins: |
As
|
|
|
|
Adjusted |
|
As
|
|
|
|
Adjusted |
|
Reported |
|
Adjusted |
||||||||||||
Aerospace & Industrial |
|
15.5 |
% |
|
|
|
|
15.5 |
% |
|
|
12.4 |
% |
|
|
|
|
13.3 |
% |
|
310 bps |
|
220 bps |
||||
Defense Electronics |
|
22.0 |
% |
|
|
|
|
22.6 |
% |
|
|
19.5 |
% |
|
|
|
|
23.6 |
% |
|
250 bps |
|
(100 bps) |
||||
Naval & Power |
|
14.2 |
% |
|
|
|
|
18.2 |
% |
|
|
11.1 |
% |
|
|
|
|
18.0 |
% |
|
310 bps |
|
20 bps |
||||
Total Curtiss-Wright |
|
15.3 |
% |
|
|
|
|
17.0 |
% |
|
|
12.1 |
% |
|
|
|
|
16.3 |
% |
|
320 bps |
|
70 bps |
||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Segment margins |
|
16.9 |
% |
|
|
|
|
18.6 |
% |
|
|
13.7 |
% |
|
|
|
|
18.0 |
% |
|
320 bps |
|
60 bps |
||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
(1) Excludes our build-to-print actuation product line supporting the Boeing 737 Max program in both periods and restructuring costs in the prior period. |
|||||||||||||||||||||||||||
(2) Excludes first year purchase accounting adjustments in both periods, a non-cash impairment of capitalized development costs related to a commercial aerospace program in the prior period, and restructuring costs in the prior period. |
|||||||||||||||||||||||||||
(3) Excludes the results of operations and related impairments from our German valves business in both periods, one-time legal settlement costs in the current period, one-time costs in the prior period associated with the relocation of our DRG business, first year purchase accounting adjustments in the prior period, and restructuring costs in the prior period. |
|
|||||||||||||||||||||||
RECONCILIATION OF AS REPORTED SALES TO ADJUSTED SALES BY END MARKET (UNAUDITED) |
|||||||||||||||||||||||
($'s in thousands) |
|||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
|
|
Three Months Ended |
|
Three Months Ended |
|
|
|
||||||||||||||||
|
|
|
|
|
|
2021 vs. 2020 |
|||||||||||||||||
|
|
Reported
|
|
Adjustments |
|
Adjusted
|
|
Reported
|
|
Adjustments |
|
Adjusted
|
|
Change in
|
Change in
|
||||||||
Aerospace & Defense markets: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Aerospace Defense (1) |
|
$ |
124,815 |
|
$ |
— |
|
|
$ |
124,815 |
|
$ |
130,570 |
|
$ |
215 |
|
|
$ |
130,785 |
|
( |
( |
Ground Defense (1) |
|
|
61,199 |
|
|
360 |
|
|
|
61,559 |
|
|
44,243 |
|
|
720 |
|
|
|
44,963 |
|
|
|
Naval Defense |
|
|
179,259 |
|
|
— |
|
|
|
179,259 |
|
|
195,995 |
|
|
— |
|
|
|
195,995 |
|
( |
( |
|
|
|
71,437 |
|
|
(2,418 |
) |
|
|
69,019 |
|
|
82,810 |
|
|
(20,553 |
) |
|
|
62,257 |
|
( |
|
|
|
$ |
436,710 |
|
$ |
(2,058 |
) |
|
$ |
434,652 |
|
$ |
453,618 |
|
$ |
(19,618 |
) |
|
$ |
434,000 |
|
( |
|
|
|||||||||||||||||||||||
Commercial markets: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Power & Process (3) |
|
|
129,916 |
|
|
(9,401 |
) |
|
|
120,515 |
|
|
124,210 |
|
|
(7,360 |
) |
|
|
116,850 |
|
|
|
|
|
|
100,132 |
|
|
— |
|
|
|
100,132 |
|
|
90,616 |
|
|
— |
|
|
|
90,616 |
|
|
|
Total Commercial |
|
|
230,048 |
|
|
(9,401 |
) |
|
|
220,647 |
|
|
214,826 |
|
|
(7,360 |
) |
|
|
207,466 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Total Curtiss-Wright |
|
$ |
666,758 |
|
$ |
(11,459 |
) |
|
$ |
655,299 |
|
$ |
668,444 |
|
$ |
(26,978 |
) |
|
$ |
641,466 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
|
|
Twelve Months Ended |
|
Twelve Months Ended |
|
|
|
||||||||||||||||
|
|
|
|
|
|
2021 vs. 2020 |
|||||||||||||||||
|
|
Reported
|
|
Adjustments |
|
Adjusted
|
|
Reported
|
|
Adjustments |
|
Adjusted
|
|
Change in
|
Change in
|
||||||||
Aerospace & Defense markets: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Aerospace Defense (1) |
|
$ |
452,661 |
|
$ |
— |
|
|
$ |
452,661 |
|
$ |
463,690 |
|
$ |
1,164 |
|
|
$ |
464,854 |
|
( |
( |
Ground Defense (1) |
|
|
220,290 |
|
|
3,600 |
|
|
|
223,890 |
|
|
107,448 |
|
|
720 |
|
|
|
108,168 |
|
|
|
Naval Defense |
|
|
710,688 |
|
|
— |
|
|
|
710,688 |
|
|
692,152 |
|
|
— |
|
|
|
692,152 |
|
|
|
|
|
|
267,722 |
|
|
(11,182 |
) |
|
|
256,540 |
|
|
325,518 |
|
|
(67,482 |
) |
|
|
258,036 |
|
( |
( |
|
|
$ |
1,651,361 |
|
$ |
(7,582 |
) |
|
$ |
1,643,779 |
|
$ |
1,588,808 |
|
$ |
(65,598 |
) |
|
$ |
1,523,210 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Commercial markets: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Power & Process (3) |
|
|
473,489 |
|
|
(29,869 |
) |
|
|
443,620 |
|
|
474,842 |
|
|
(25,964 |
) |
|
|
448,878 |
|
|
( |
|
|
|
381,081 |
|
|
— |
|
|
|
381,081 |
|
|
327,686 |
|
|
— |
|
|
|
327,686 |
|
|
|
Total Commercial |
|
$ |
854,570 |
|
$ |
(29,869 |
) |
|
$ |
824,701 |
|
$ |
802,528 |
|
$ |
(25,964 |
) |
|
$ |
776,564 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Total Curtiss-Wright |
|
$ |
2,505,931 |
|
$ |
(37,451 |
) |
|
$ |
2,468,480 |
|
$ |
2,391,336 |
|
$ |
(91,562 |
) |
|
$ |
2,299,774 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
(1) Excludes first year purchase accounting adjustments. |
|||||||||||||||||||||||
(2) Excludes our build-to-print actuation product line supporting the Boeing 737 MAX program which we exited in the fourth quarter of 2020. |
|||||||||||||||||||||||
(3) Excludes our German valves business which was classified as held for sale in the fourth quarter of 2020. |
|
||||||||||||||||
RECONCILIATION OF AS REPORTED TO ADJUSTED (UNAUDITED) |
||||||||||||||||
|
|
|
|
|
|
|
|
|
||||||||
|
|
Three Months Ended |
|
Year Ended |
||||||||||||
|
|
|
|
|
||||||||||||
|
|
2021 |
|
2020 |
|
2021 |
|
2020 |
||||||||
Diluted earnings per share - As Reported |
|
$ |
1.94 |
|
$ |
1.30 |
|
|
$ |
6.58 |
|
|
$ |
4.80 |
|
|
First year purchase accounting adjustments |
|
|
0.02 |
|
|
0.21 |
|
|
|
0.11 |
|
|
|
0.69 |
|
|
Exit of build-to-print actuation product line |
|
|
0.01 |
|
|
(0.04 |
) |
|
|
(0.02 |
) |
|
|
(0.17 |
) |
|
German valves business held for sale |
|
|
0.11 |
|
|
0.59 |
|
|
|
0.30 |
|
|
|
0.61 |
|
|
Charges related to legal settlement |
|
|
0.32 |
|
|
— |
|
|
|
0.31 |
|
|
|
|||
Restructuring costs |
|
|
— |
|
|
0.21 |
|
|
|
— |
|
|
|
0.66 |
|
|
Pension settlement charges |
|
|
— |
|
|
— |
|
|
|
0.06 |
|
|
|
— |
|
|
Diluted earnings per share - Adjusted (1) |
|
$ |
2.40 |
|
$ |
2.27 |
|
|
$ |
7.34 |
|
|
$ |
6.59 |
|
|
|
|
|
|
|
|
|
|
|
||||||||
(1) All adjustments are presented net of income taxes. |
Organic Sales and Organic Operating Income
The Corporation discloses organic sales and organic operating income because the Corporation believes it provides investors with insight as to the Company’s ongoing business performance. Organic sales and organic operating income are defined as sales and operating income excluding the impact of restructuring costs, impairment of assets held for sale, foreign currency fluctuations and contributions from acquisitions made during the last twelve months.
|
Three Months Ended |
||||||||||||||
|
|
||||||||||||||
|
2021 vs. 2020 |
||||||||||||||
|
Aerospace & Industrial |
|
Defense Electronics |
|
Naval & Power |
|
Total Curtiss-Wright |
||||||||
|
Sales |
|
Operating
|
|
Sales |
|
Operating
|
|
Sales |
|
Operating
|
|
Sales |
|
Operating
|
As Reported |
(1)% |
|
|
|
|
|
|
|
(6)% |
|
|
|
|
|
|
Less: Acquisitions |
|
|
|
|
(6)% |
|
(3)% |
|
|
|
|
|
(2)% |
|
(1)% |
Impairment of assets held for sale |
|
|
|
|
|
|
|
|
|
|
(129)% |
|
|
|
(30)% |
Restructuring |
|
|
(16)% |
|
|
|
(1)% |
|
|
|
(40)% |
|
|
|
(16)% |
Foreign Currency |
|
|
|
|
|
|
|
|
|
|
(2)% |
|
|
|
|
Organic |
(1)% |
|
|
|
|
|
|
|
(6)% |
|
(128)% |
|
(2)% |
|
(8)% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year Ended |
||||||||||||||
|
|
||||||||||||||
|
2021 vs. 2020 |
||||||||||||||
|
Aerospace & Industrial |
|
Defense Electronics |
|
Naval & Power |
|
Total Curtiss-Wright |
||||||||
|
Sales |
|
Operating
|
|
Sales |
|
Operating
|
|
Sales |
|
Operating
|
|
Sales |
|
Operating
|
As Reported |
(2)% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Less: Acquisitions |
|
|
|
|
(19)% |
|
(12)% |
|
|
|
|
|
(5)% |
|
(5)% |
Impairment of assets held for sale |
|
|
|
|
|
|
|
|
|
|
(13)% |
|
|
|
(5)% |
Restructuring |
|
|
(14)% |
|
|
|
(3)% |
|
|
|
(22)% |
|
|
|
(14)% |
Foreign Currency |
(2)% |
|
|
|
|
|
|
|
(1)% |
|
|
|
(1)% |
|
|
Organic |
(4)% |
|
|
|
|
|
|
|
|
|
(3)% |
|
(1)% |
|
|
Free Cash Flow and Free Cash Flow Conversion
The Corporation discloses free cash flow because it measures cash flow available for investing and financing activities. Free cash flow represents cash available to repay outstanding debt, invest in the business, acquire businesses, return capital to shareholders and make other strategic investments. Free cash flow is defined as net cash provided by operating activities less capital expenditures. Adjusted free cash flow for 2020 excludes: (i) a capital investment in the Naval & Power segment related to the new, state-of-the-art naval facility principally for DRG; (ii) a voluntary contribution to the Company’s corporate defined benefit pension plan made in the first quarter of 2020; and (iii) the cash impact from significant restructuring in 2020. The Corporation discloses adjusted free cash flow conversion because it measures the proportion of net earnings converted into free cash flow and is defined as adjusted free cash flow divided by adjusted net earnings.
|
||||||||||||||||
NON-GAAP FINANCIAL DATA (UNAUDITED) |
||||||||||||||||
($'s in thousands) |
||||||||||||||||
|
|
|
|
|
|
|
|
|
||||||||
|
|
|
|
|
|
|
|
|
||||||||
|
|
Three Months Ended |
|
Year Ended |
||||||||||||
|
|
|
|
|
||||||||||||
|
|
|
2021 |
|
|
|
2020 |
|
|
|
2021 |
|
|
|
2020 |
|
Net cash provided by operating activities |
|
$ |
231,907 |
|
|
$ |
257,396 |
|
|
$ |
387,668 |
|
|
$ |
261,180 |
|
Capital expenditures |
|
|
(13,250 |
) |
|
|
(11,158 |
) |
|
|
(41,108 |
) |
|
|
(47,499 |
) |
Free cash flow |
|
$ |
218,657 |
|
|
$ |
246,238 |
|
|
$ |
346,560 |
|
|
$ |
213,681 |
|
Voluntary pension contribution |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
150,000 |
|
Adjustment to capital expenditures (DRG facility investment) |
|
|
— |
|
|
|
139 |
|
|
|
— |
|
|
|
10,251 |
|
Restructuring |
|
|
— |
|
|
|
9,582 |
|
|
|
— |
|
|
|
20,258 |
|
Adjusted free cash flow |
|
$ |
218,657 |
|
|
$ |
255,959 |
|
|
$ |
346,560 |
|
|
$ |
394,190 |
|
Adjusted free cash flow conversion |
|
|
230 |
% |
|
|
272 |
% |
|
|
116 |
% |
|
|
142 |
% |
2022 Guidance | |||||||||||||||||||||||||||||||||
As of |
|||||||||||||||||||||||||||||||||
($'s in millions, except per share data) | |||||||||||||||||||||||||||||||||
2021 Reported (GAAP) |
2021 Adjustments (1) (Non-GAAP) |
2021 Adjusted (1) (Non-GAAP) |
2022 Reported Guidance (GAAP) |
2022 Adjustments (2,3) (Non-GAAP) |
2022 Adjusted Guidance (1,2,3) (Non-GAAP) |
||||||||||||||||||||||||||||
Low | High | Low | High | 2022 Chg vs 2021 Adjusted |
|||||||||||||||||||||||||||||
Sales: | |||||||||||||||||||||||||||||||||
Aerospace & Industrial | $ |
786 |
|
$ |
(11 |
) |
$ |
775 |
|
$ |
805 |
|
$ |
825 |
|
|
- |
|
$ |
805 |
|
$ |
825 |
|
4 - |
||||||||
Defense Electronics |
|
724 |
|
|
4 |
|
|
728 |
|
|
745 |
|
|
760 |
|
|
- |
|
|
745 |
|
|
760 |
|
2 - |
||||||||
Naval & Power |
|
995 |
|
|
(30 |
) |
|
965 |
|
|
980 |
|
|
995 |
|
|
- |
|
|
980 |
|
|
995 |
|
2 - |
||||||||
Total sales | $ |
2,506 |
|
$ |
(37 |
) |
$ |
2,468 |
|
$ |
2,530 |
|
$ |
2,580 |
|
$ |
2,530 |
|
$ |
2,580 |
|
3 to |
|||||||||||
|
|||||||||||||||||||||||||||||||||
Operating income: |
|
||||||||||||||||||||||||||||||||
Aerospace & Industrial | $ |
122 |
|
$ |
(2 |
) |
$ |
120 |
|
$ |
131 |
|
$ |
135 |
|
|
- |
|
$ |
131 |
|
$ |
135 |
|
9 - |
||||||||
Defense Electronics |
|
159 |
|
|
5 |
|
|
164 |
|
|
164 |
|
|
169 |
|
|
- |
|
|
164 |
|
|
169 |
|
0 - |
||||||||
Naval & Power |
|
142 |
|
|
34 |
|
|
176 |
|
|
177 |
|
|
182 |
|
|
- |
|
|
177 |
|
|
182 |
|
1 - |
||||||||
Total segments |
|
423 |
|
|
38 |
|
|
460 |
|
|
472 |
|
|
486 |
|
|
- |
|
|
472 |
|
|
486 |
|
|
||||||||
Corporate and other |
|
(40 |
) |
|
- |
|
|
(40 |
) |
|
(39 |
) |
|
(40 |
) |
|
- |
|
|
(39 |
) |
|
(40 |
) |
|
||||||||
Total operating income | $ |
383 |
|
$ |
38 |
|
$ |
420 |
|
$ |
432 |
|
$ |
446 |
|
|
- |
|
$ |
432 |
|
$ |
446 |
|
3 to |
||||||||
|
|||||||||||||||||||||||||||||||||
Interest expense | $ |
(40 |
) |
$ |
- |
|
$ |
(40 |
) |
$ |
(39 |
) |
$ |
(40 |
) |
|
- |
|
$ |
(39 |
) |
$ |
(40 |
) |
|
||||||||
Other income, net |
|
12 |
|
|
3 |
|
|
15 |
|
|
8 |
|
|
9 |
|
$ |
9 |
|
|
17 |
|
|
18 |
|
|
||||||||
Earnings before income taxes |
|
355 |
|
|
41 |
|
|
396 |
|
|
401 |
|
|
415 |
|
|
9 |
|
|
410 |
|
|
424 |
|
|
||||||||
Provision for income taxes |
|
(87 |
) |
|
(10 |
) |
|
(97 |
) |
|
(96 |
) |
|
(100 |
) |
|
(2 |
) |
|
(98 |
) |
|
(102 |
) |
|
||||||||
Net earnings | $ |
267 |
|
$ |
31 |
|
$ |
298 |
|
$ |
305 |
|
$ |
315 |
|
$ |
7 |
|
$ |
312 |
|
$ |
322 |
|
|
||||||||
|
|||||||||||||||||||||||||||||||||
Diluted earnings per share | $ |
6.58 |
|
$ |
0.76 |
|
$ |
7.34 |
|
$ |
7.87 |
|
$ |
8.08 |
|
$ |
0.18 |
|
$ |
8.05 |
|
$ |
8.25 |
|
10 to |
||||||||
Diluted shares outstanding |
|
40.6 |
|
|
40.6 |
|
|
38.8 |
|
|
39.0 |
|
|
38.8 |
|
|
39.0 |
|
|
||||||||||||||
Effective tax rate |
|
24.6 |
% |
|
24.6 |
% |
|
24.0 |
% |
|
24.0 |
% |
|
24.0 |
% |
|
24.0 |
% |
|
||||||||||||||
|
|||||||||||||||||||||||||||||||||
Operating margins: |
|
||||||||||||||||||||||||||||||||
Aerospace & Industrial |
|
15.5 |
% |
|
15.5 |
% |
|
16.2 |
% |
|
16.4 |
% |
|
16.2 |
% |
|
16.4 |
% |
70 to 90 bps |
||||||||||||||
Defense Electronics |
|
22.0 |
% |
|
22.6 |
% |
|
22.0 |
% |
|
22.2 |
% |
|
22.0 |
% |
|
22.2 |
% |
(40 to 60 bps) |
||||||||||||||
Naval & Power |
|
14.2 |
% |
|
18.2 |
% |
|
18.1 |
% |
|
18.3 |
% |
|
18.1 |
% |
|
18.3 |
% |
(10) to 10 bps |
||||||||||||||
Total operating margin |
|
15.3 |
% |
|
17.0 |
% |
|
17.1 |
% |
|
17.3 |
% |
|
17.1 |
% |
|
17.3 |
% |
10 to 30 bps |
||||||||||||||
Free cash flow | $ |
347 |
|
$ |
347 |
|
$ |
308 |
|
$ |
328 |
|
$ |
37 |
|
$ |
345 |
|
$ |
365 |
|
||||||||||||
Notes: Full year amounts may not add due to rounding. | |||||||||||||||||||||||||||||||||
(1) 2021 Adjusted financials excludes the impact of first year purchase accounting adjustments; our build-to-print actuation product line supporting the Boeing 737 Max program; the results of operations and related impairments from our German valves business; one-time, pension settlement charges related to the retirement of two former executives (within non-operating income); and one-time legal settlement costs. | |||||||||||||||||||||||||||||||||
(2) 2022 Adjusted financials exclude one-time, pension settlement charges related to the retirement of two former executives (within non-operating income). | |||||||||||||||||||||||||||||||||
(3) Free Cash Flow is defined as cash flow from operations less capital expenditures. 2022 Adjusted Free Cash Flow guidance excludes one-time, pension settlement payments of |
2022 Sales Growth Guidance by End Market | |||||
As of |
|||||
Aerospace & Defense Markets | 2022 % Change vs 2021 Adjusted(1) |
% Total Sales |
|||
Aerospace Defense |
0 - |
|
|||
Ground Defense |
2 - |
|
|||
Naval Defense |
1 - |
|
|||
9 - |
|
||||
2 - |
|
||||
|
|
||||
Commercial Markets |
|
|
|||
Power & Process |
1 - |
|
|||
6 - |
|
||||
Total Commercial |
4 - |
|
|||
|
|
||||
Total |
3 - |
|
About
Certain statements made in this press release, including statements about future revenue, financial performance guidance, quarterly and annual revenue, net income, operating income growth, future business opportunities, cost saving initiatives, the successful integration of the Company’s acquisitions, future cash flow from operations, and potential impacts of the COVID-19 pandemic are forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended ("Securities Act"), Section 21E of the Securities Exchange Act of 1934, as amended ("Exchange Act") and the Private Securities Litigation Reform Act of 1995. These statements present management's expectations, beliefs, plans and objectives regarding future financial performance, and assumptions or judgments concerning such performance. Any discussions contained in this press release, except to the extent that they contain historical facts, are forward-looking and accordingly involve estimates, assumptions, judgments and uncertainties. Such forward-looking statements are subject to certain risks and uncertainties that could cause actual results to differ materially from those expressed or implied. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date hereof. Such risks and uncertainties include, but are not limited to: a reduction in anticipated orders; an economic downturn; changes in the competitive marketplace and/or customer requirements; a change in government spending; an inability to perform customer contracts at anticipated cost levels; the impact of a global pandemic or national epidemic, and other factors that generally affect the business of aerospace, defense contracting, electronics, marine, and industrial companies. Such factors are detailed in the Company's Annual Report on Form 10-K for the fiscal year ended
This press release and additional information are available at www.curtisswright.com.
View source version on businesswire.com: https://www.businesswire.com/news/home/20220223006125/en/
(704) 869-4621
Jim.Ryan@curtisswright.com
Source:
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