Curtiss-wright Corporation · NYSE:CW

Curtiss-wright — Q1 2014 Earnings Presentation

14 slides from Curtiss-wright's earnings presentation, May 1, 2014

  1. Slide 1: 1Q 2014 Earnings Conference Call

    1Q 2014 Earnings Conference Call May 1, 2014 1 | May 1, 2014 | © 2014 Curtiss-Wright

  2. 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

  3. Slide 3: One Curtiss-Wright

    One Curtiss-Wright  Driven by a new integrated, market-facing structure  Focused on: – Operating margin expansion – Improved working capital management to deliver higher free cash flow – A balanced capital allocation strategy  Targeting top-quartile performance Dedicated to improving shareholder

  4. Slide 4: Overview of First Quarter 2014 Results

    Overview of First Quarter 2014 Results  Sales increased 8%, led by a double-digit gain in the Commercial / Industrial segment – Commercial markets up 11%; Defense markets up 3%  Operating income increased 55%, mostly organic  Operating margin up 280 bps to 9.2% – Benefits of organizational realig

  5. Slide 5: First Quarter 2014 Operating Income Drivers

    First Quarter 2014 Operating Income Drivers ($ in millions) 1Q’14 1Q’13 % Change Reported Reported vs. 1Q’13 Commercial/Industrial $33.0 $20.7 60% Defense 21.2 16.9 25% Energy 12.6 10.8 16% Total Segments $66.7 $48.3 38% Corp & Other (7.6) (10.3) 26% Total Curtiss-Wright $59.1 $38.0 55% 5 | May 1, 2

  6. Slide 6: 1Q 2014 End Markets Summary: Commercial

    1Q 2014 End Markets Summary: Commercial YTD 2014 Sales: 72% Commercial 28% Defense Key Positives Oil & Gas Aero Defense  Ongoing ramp up in commercial aircraft 11% 20% Ground production rates (notably 787) Defense 3%  Solid performance in Oil & Gas – Led by upstream demand for separation Naval Def

  7. Slide 7: 1Q 2014 End Markets Summary: Defense

    1Q 2014 End Markets Summary: Defense YTD 2014 Sales: 72% Commercial 28% Defense Key Positives Aero Defense 11% Ground  Higher sales on military helicopter Oil & Gas Defense 20% 3% programs (Chinook, Black Hawk)  Strong naval defense revenues led by Virginia-class submarine and DDG-51 Naval Defense

  8. Slide 8: 2014E Financial Outlook (Guidance as of April 30, 2014)

    2014E Financial Outlook (Guidance as of April 30, 2014) FY2014E FY2014E FY2013A (Prior) (Current) Total Sales $2,511M $2,650 - 2,700M No change Commercial / Industrial $960M $1,040 - 1,060M - Defense $891M $890 - 910M - Energy $660M $720 - 730M - Total Operating Income $234M $267 - 278M $274 - 285M

  9. Slide 9: 2014E Financial Outlook (Guidance as of April 30, 2014)

    2014E Financial Outlook (Guidance as of April 30, 2014) FY2014E FY2014E FY2013A (Prior) (Current) Pension/Post-Retirement Expense $33M $36 - 37M ~$30M Interest Expense $37M $39 - 40M - Diluted EPS $2.88 $3.30 - 3.40 $3.35 - 3.45 Diluted Shares Outstanding 47.9M 48.4M 49.1M Effective Tax Rate 30.3% 3

  10. Slide 10: Strategic Margin Drivers

    Strategic Margin Drivers 14.0% Volume Strategic Initiatives Segment Focus / Improvements Portfolio Review Shared Services 9.3% Competitiveness Programs 2013 2018 Achieving 14% Over the Planning Period 10 | May 1, 2014 | © 2014 Curtiss-Wright

  11. Slide 11: Outlook for 2014 and Closing Comments

    Outlook for 2014 and Closing Comments  Expect solid sales with strong, double-digit growth in operating income and diluted EPS – Growth anticipated in all commercial markets outweighs mixed performance in defense  On track for significant operating margin expansion – Driven by operational improvem

  12. Slide 12: Appendix

    Appendix 12 | May 1, 2014 | © 2014 Curtiss-Wright

  13. Slide 13: Non-GAAP Reconciliation

    Non-GAAP Reconciliation CURTISS-WRIGHT CORPORATION and SUBSIDIARIES NON-GAAP FINANCIAL DATA (UNAUDITED) ($ in millions) Three Months Ended March 31, Commercial/Industrial Defense Energy Corporate & Other Total Curtiss - Wright 2014 2013 Chg 2014 2013 Chg 2014 2013 Chg 2014 2013 Chg 2014 2013 Chg Sal

  14. Slide 14: 2014E Market Outlook (Guidance as of April 30, 2014)

    2014E Market Outlook (Guidance as of April 30, 2014) FY2014E FY2014E % of Total (Prior) (Current) Sales Aero Defense 8 - 12% - 11% Ground Defense (7 - 11%) - 3% Naval Defense (2) - 2% - 14% Total Defense 1 - 5% No change 29% Including Other Defense Commercial Aero 6 - 10% - 16% Oil & Gas 11 - 15% -

Curtiss-Wright — Q1 2014 Earnings Presentation on 6ix