Slide 1: 1Q 2017 Earnings Conference Call
1Q 2017 Earnings Conference Call May 4, 2017 NYSE: CW 1 | May 4, 2017 | © 2017 Curtiss-Wright
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 website from one to twelve months following the initial presentation, but content will not be updated to reflect n
Slide 3: First Quarter 2017 Highlights
First Quarter 2017 Highlights Diluted EPS of $0.73, ahead of expectations, reflecting: – Stronger than expected sales growth in C/I and Power segments (1) – Discrete tax benefit of $0.09 Net Sales up 4% overall (3% organic) – Improved industrial demand and higher AP1000 China Direct revenues (2)
Slide 4: First Quarter 2017 End Market Sales
First Quarter 2017 End Market Sales Key Drivers 1Q’17 % of Total Defense Markets (5% sales growth, 1% organic) Change Sales Aerospace Defense: Higher flight test equipment on fighter jets (TTC acquisition) Aero Defense 7% 13% Ground Defense: Higher turret drive stabilization Ground Defense 3% 4%
Slide 5: First Quarter 2017 Operating Income / Margin Drivers
First Quarter 2017 Operating Income / Margin Drivers ($ in millions) Change 1Q’17 1Q’16 vs. 2016 Organic Change Commercial / Industrial $30.6 $30.1 2% vs. 2016: Margin 11.0% 10.9% 10 bps Defense 11.2 16.8 (34%) 2% Margin 9.7% 16.0% (630 bps) +20 bps Power 16.5 14.6 13% Margin 12.7% 11.9% 80 bps Tota
Slide 6: 2017E End Market Sales Growth Outlook
(1) 2017E End Market Sales Growth Outlook (Guidance as of May 3, 2017) Updated (in blue) FY2017E FY2017E % of Total (Prior) (Current) Sales Aero Defense 28 - 30% 23 - 25% 17% Ground Defense (4 - 6%) Flat 4% Naval Defense (3 - 5%) (1 - 3%) 18% Total Defense 7 - 9% No change 39% Including Other Defens
Slide 7: 2017E Financial Outlook No Change
(1) 2017E Financial Outlook (Guidance as of May 3, 2017) No Change FY2017E Change vs ($ in millions, except EPS) FY2016A (Current) 2016 Commercial / Industrial $1,119 $1,100 - 1,120 (0 - 2%) Defense $467 $540 - 550 16 - 18% Power $524 $525 - 535 0 - 2% Total Sales $2,109 $2,165 - 2,205 3 - 5% Commer
Slide 8: 2017E Financial Outlook Updated
2017E Financial Outlook(1) (Guidance as of May 3, 2017) Updated (in blue) ($ in millions, except EPS) FY2017E FY2017E Change vs (Prior) (Current) 2016 Total Operating Income $316 - 325 No change 3 - 5% Pension/401K Expense $17 - 18 No change Interest Expense $40 - 41 No change Provision for Income T
Slide 9: 2017E Financial Outlook: Free Cash Flow
2017E Financial Outlook (Guidance as of May 3, 2017) Updated (in blue) ($ in millions) FY2017E FY2017E (Prior) (Current) Free Cash Flow (1) $260 - 280 No change Free Cash Flow Conversion(2) 135 - 142% 132 - 139% Capital Expenditures $45 - 55 No change Depreciation & Amortization $105 - 115 No change
Slide 10: Positioned to Deliver Solid 2017 Results
Positioned to Deliver Solid 2017 Results Expect solid sales growth in defense and power markets, mitigating industrial headwinds – Improving trends in industrial vehicle markets Continued organic operating margin expansion, up 50 - 60 bps (excluding TTC) – Led by operational improvement and cost
Slide 11: Appendix
Appendix 11 | May 4, 2017 | © 2017 Curtiss-Wright
Slide 12: Non-GAAP Reconciliation
Non-GAAP Reconciliation Three Months Ended March 31, 2017 vs. 2016 Commercial/Industrial Defense Power Total Curtiss-Wright Operating Operating Operating Operating Sales income Sales income Sales income Sales income Organic 3% 0% 0% 2% 5% 13% 3% (1%) Acquisitions 0% 0% 9% (34%) 0% 0% 2% (10%) Foreig
Slide 13: 2017 End Market Sales Waterfall
2017 End Market Sales Waterfall (Guidance as of May 3, 2017) Guidance: ($ Millions) Total CW End Markets Defense Markets up 7-9% $2,165 - 2,205 Comm’l Markets up 0-2% Defense Markets Commercial Markets 39% 61% Naval Commercial Aerospace Power Generation General Industrial 18% 18% 20% 23% Aerospace A