Slide 1: 3Q 2012 Earnings Conference Call
3Q 2012 Earnings Conference Call Third Quarter 2012
Slide 2: Safe Harbor Statement
Safe Harbor Statement Please note that the information provided in this presentation is accurate as of the date of the original presentation. The presentation will remain posted on this web site from one to twelve months following the initial presentation, but content will not be updated to reflect
Slide 3: Overview of Third Quarter 2012 Results
Overview of Third Quarter 2012 Results • Sales declined 6% despite solid demand in Metal Treatment segment and continued growth in Commercial OEM market • Operating income impacted by labor strike, AP1000 strategic investments and modest softening of new orders • Adjusted operating income increased
Slide 4: Third Quarter 2012 Results (Continuing Operations)
Third Quarter 2012 Results (Continuing Operations) ($ in Millions) Third Key sales highlights: Quarter % Change • Sales declined 6%, despite solid performance in 2012 vs. Prior Yr Metal Treatment segment Sales: • Commercial markets mixed, led by 12% growth in Flow Control $ 236.7 (11%) commercial ae
Slide 5: Third Quarter 2012 Operating Income Drivers
Third Quarter 2012 Operating Income Drivers Strike, AP1000 & 3Q’12 Adjusted % Change vs. 3Q’12 Reported Restruct. Charges Excl. Charges 3Q’11 Flow Control $1.2 $24.0 $25.2 2% Motion Control $22.8 $0.4 $23.2 21% Metal Treatment $8.2 $0.8 $9.0 10% Corp & Other ($8.8) - ($8.8) (47%) Total $23.4M $25.2M
Slide 6: Third Quarter 2012 Flow Control Bridge
Third Quarter 2012 Flow Control Bridge 2012 2011 Operating Operating ($ millions) Sales Income OI % Sales Income OI % Reported 3Q’12 $236.7 $1.2 0.5% $265.2 $24.8 9.4% Adjustments: AP1000 - $12.2 4.8% Strike Impact $18.0 $11.3 4.4% Restructuring - $0.5 0.2% Adjusted 3Q’12 $254.7 $25.2 9.9% $265.2 $2
Slide 7: End Markets Summary Defense
Third Quarter 2012 End Markets Summary Defense Key Positives • Higher CVN-79 aircraft carrier revenues for pumps Aero and valves Oil & Gas Defense 13% 16% • Ground defense sales flat with slight uptick in Abrams and Stryker, as well as higher sales of ammunition handling systems to international Gro
Slide 8: End Markets Summary Commercial
Third Quarter 2012 End Markets Summary Commercial Key Positives • Commercial growth led by ongoing ramp up in Oil & Gas Aero commercial aircraft production rates 13% Defense 16% • Oil and gas slightly higher, led by strong MRO demand Ground • General industrial market benefiting from higher Defense
Slide 9: 2012E Market Outlook
2012E Market Outlook (as of November 6, 2012) FY2012E FY2012E Management Guidance (Prior) (Current) Aero Defense 2 - 4% 2 - 4% Ground Defense (12) - (14%) (21) - (23%) Naval Defense 6 - 8% 2 - 4% Total Defense 2 - 4% 0% Including Other Defense Commercial Aero 18 - 20% 18 - 20% Oil & Gas 3 - 5% (3) -
Slide 10: 2012E Financial Outlook
2012E Financial Outlook (as of November 6, 2012) FY2012E FY2012E Management Guidance (Prior Qtr.) (Current) Total Sales $2,150 - 2,190M $2,080 - 2,120M Flow Control $1,160 - 1,170M $1,100 - 1,110M Motion Control $720 - 740M $710 - 730M Metal Treatment $270 - 280M $270 - 280M Operating Income $207 -
Slide 11: 2012E Financial Outlook
2012E Financial Outlook (as of November 6, 2012) FY2012E FY2012E Management Guidance (Prior Qtr.) (Current) Operating Income $207 - 215M $170 - 178M Pension Expense ~$27.0M ~$27.0M Interest Expense $32 - 33M $27 - 28M Diluted EPS $2.50 - 2.60 $2.05 - 2.15 Diluted Shares Outstanding 47.8M 47.8M Effec
Slide 12: Outlook for 2012 and Closing Comments
Outlook for 2012 and Closing Comments • Progressing through recent challenges to position Curtiss- Wright for solid future growth organically and through strategic acquisitions • Strong performances anticipated in commercial aerospace and power generation markets • Mixed performance in defense led b
Slide 13: Appendix
Appendix 13 Third Quarter 2012
Slide 14: Non-GAAP Reconciliation
Non-GAAP Reconciliation 14 Third Quarter 2012
Slide 15: 3Q 2012 Segment Review – Flow Control
3Q 2012 Segment Review – Flow Control Oil & Gas Naval 24% Defense 29% Gen Industrial 10% Power Gen 35% Comm Aero 2% Segment Sales: $237 M 15 Third Quarter 2012
Slide 16: 3Q 2012 Segment Review – Motion Control
3Q 2012 Segment Review – Motion Control Comm Aero 31% Aero Defense 39% Gen Industrial 9% Other Defense & Ground Gov't. Naval Defense 3% Defense 14% 4% Segment Sales: $175 M 16 Third Quarter 2012
Slide 17: 3Q 2012 Segment Review – Metal Treatment
3Q 2012 Segment Review – Metal Treatment Comm Aero 40% Gen Industrial 33% Other Defense & Aero Defense Power Gen Gov't. 15% 7% 2% Oil & Gas 3% Segment Sales: $68 M 17 Third Quarter 2012