Slide 1: 1Q 2011 Earnings Conference Call
1Q 2011 Earnings Conference Call April 29, 2011
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 First Quarter 2011 Results
Overview of First Quarter 2011 Results • Solid sales, profitability and EPS growth • Earnings led by solid operating performance across all three segments Strong rebound in metal treatment sales • Continued focus on restructuring and cost control • Solid financial position Curtiss-Wright Corporati
Slide 4: First Quarter 2011 Results
First Quarter 2011 Results Key sales drivers: ($ in Millions) First Quarter % Change • Organic growth of 2%*, led by strong 2011 vs. Prior Yr metal treatment sales Sales: • Solid performance in general industrial Flow Control $ 239 (1%) and commercial aerospace, as well as Motion Control 160 8% nava
Slide 5: Segment Review – Flow Control
1Q 2011 Segment Review – Flow Control 1Q 2011 Results Oil & Gas 22% Navy • Sales down <1% Defense 31% • Operating income up 12% • Solid margin improvement • Led by strong sales in naval defense and general industrial, along with modest increase in power generation Gen Power Gen 36% Industrial • Dela
Slide 6: Segment Review – Motion Control
1Q 2011 Segment Review – Motion Control 1Q 2011 Results Comm Aero Aero • Sales up 8% 27% Defense 36% • Operating income up 17% • Solid margin improvement • Led by strong sales in aerospace defense, general industrial and Gen commercial aero Industrial 11% • Uncertainty in timing of U.S. Other Defens
Slide 7: Segment Review – Metal Treatment
1Q 2011 Segment Review – Metal Treatment 1Q 2011 Results • Sales up 17% Comm Aero Gen 39% • Operating income up 67% Industrial 40% • Strong margin improvement • Led by higher demand for shot peening, coatings and heat treating services • Strong sales to general industrial Other Aero Power Gen and co
Slide 8: End Markets Summary
1Q 2011 End Markets Summary Key Positives Aero Oil & Gas Defense • Commercial/Industrial markets ended 12% 14% strongly Ground • Naval defense remained solid Defense 6% • Continued demand for embedded Power Gen computing, and sensors and controls 20% products, most notably on helicopters • Strong su
Slide 9: Summary – Aerospace Defense
1Q 2011 Summary – Aerospace Defense Aero Defense 1Q 2011 Results 14% Oil & Gas • 10% growth in sales YOY 12% • Strength in helicopters, V-22 Osprey, Ground Defense P-8 Poseidon, Global Hawk and other 6% UAV programs Power Gen 20% • Solid sales performance offset the impact of the F-22 cancellation a
Slide 10: Summary – Ground Defense
1Q 2011 Summary – Ground Defense Aero 1Q 2011 Results Oil & Gas Defense 12% 14% Ground • 12% reduction in sales YOY Defense 6% • Impacted by lower sales on Bradley and winding down of FCS program Power Gen 20% • Offset by improved sales of turret drive aiming and stabilization Navy systems Defense 1
Slide 11: Summary – Naval Defense
1Q 2011 Summary – Naval Defense Aero 1Q 2011 Results Oil & Gas Defense 12% 14% • 9% growth in sales YOY Ground • Led by solid sales on VA class Defense submarine and CVN-79 aircraft 6% carrier Power Gen 20% • Increased sales on Advanced Arresting Gear (AAG) program Navy • Reduced sales related to wi
Slide 12: Summary – Commercial Aerospace
1Q 2011 Summary – Commercial Aerospace 1Q 2011 Results Aero Oil & Gas Defense • 11% growth in sales YOY 12% 14% • Strong sales due to increased Ground Defense demand from Boeing and Airbus 6% • Experienced solid gains in both Power Gen 20% single-aisle and wide-body aircraft • Performed metal treatm
Slide 13: Summary – Oil & Gas
1Q 2011 Summary – Oil & Gas Oil & Gas 12% Aero 1Q 2011 Results Defense 14% • 17% reduction in sales YOY Ground • Continued delays in capital Defense 6% spending worldwide Power Gen • Primarily conducted base 20% maintenance at U.S. refineries Navy • Solid MRO and upstream sales Defense 18% Outlook O
Slide 14: Summary – Power Generation
1Q 2011 Summary – Power Generation 1Q 2011 Results Aero Oil & Gas Defense • 3% growth in sales YOY 12% 14% • Strong demand for upgrades and Ground Power Gen Defense plant maintenance projects on 20% 6% existing U.S. operating reactors Outlook Navy Defense • Continued demand for content related 18% t
Slide 15: Summary – General Industrial
1Q 2011 Summary – General Industrial Aero 1Q 2011 Results Oil & Gas Defense 12% 14% • 22% growth in sales YOY Ground • Improving economy led to higher Defense sales volumes in HVAC, automotive 6% and transportation industries Power Gen 20% • Surge in demand for metal treatment services Navy Defense
Slide 16: 2011E Market Outlook
2011E Market Outlook (as of April 28, 2011) Management Guidance FY2011E Aero Defense 1 - 3% Ground Defense 8 - 10% Naval Defense 3 - 5% Total Defense 3 - 5% Including Other Defense Commercial Aero 18 - 20% Oil & Gas 1 - 3% Power Generation 1 - 2% General Industrial 19 - 21% Total Commercial 8 - 10%
Slide 17: 2011E Financial Outlook
2011E Financial Outlook (as of April 28, 2011) Management Guidance FY2011E Total Sales $2,010 - 2,040M 6% - 8% Flow Control $1,075 - 1,085M 5% - 6% Motion Control $670 - 680M 4% - 5% Metal Treatment $265 - 275M 20% - 24% Operating Income $207 - 214M 15% - 19% Diluted EPS $2.58 - 2.68 12% - 16% Dilut
Slide 18: 2011E Financial Outlook
2011E Financial Outlook (as of April 28, 2011) Management Guidance FY2011E Free Cash Flow $90 - 100M Depreciation & Amortization ~$82M CapEx ~$70M Pension Expense ~$23M Curtiss-Wright Corporation 18
Slide 19: Outlook for 2011 and Closing Comments
Outlook for 2011 and Closing Comments • Sales up 6-8% with 12-16% EPS growth • Continued execution and margin expansion • Solid performance expected across all end markets Defense business is stable and will start to overcome several 2010 headwinds Commercial markets rebounding as economy contin
Slide 20: Appendix
Appendix Curtiss-Wright Corporation 20
Slide 21: Non-GAAP Reconciliation
Non-GAAP Reconciliation 21 Curtiss-Wright Corporation