Slide 1: 3Q 2017 Earnings Conference Call
3Q 2017 Earnings Conference Call October 26, 2017 NYSE: CW 1 | October 26, 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: 2017 Third Quarter Performance and Business Outlook
2017 Third Quarter Performance and Business Outlook 3Q’17 Highlights Diluted EPS of $1.43, ahead of expectations, reflecting: – Higher sales and operating income in all three segments – Benefit of lower tax rate (+$0.09) Net Sales up 12% overall (8% organic) – Higher organic sales in all end mar
Slide 4: Third Quarter 2017 End Market Sales
Third Quarter 2017 End Market Sales Key Drivers 3Q’17 % of Total Defense Markets (13% sales growth, 5% organic) Change Sales Aerospace Defense: Higher sales of flight test equipment (TTC) and embedded computing products Aero Defense 18% 16% (UAV programs) Ground Defense 42% 5% Ground Defense: Hi
Slide 5: Third Quarter 2017 Operating Income / Margin Drivers
Third Quarter 2017 Operating Income / Margin Drivers Change ($ in millions) 3Q’17 3Q’16 vs. 2016 Commercial / Industrial $46.8 $39.1 20% Margin 15.9% 14.2% 170 bps Defense 33.6 28.8 17% Margin 23.7% 25.3% (160 bps) Power 19.5 14.1 38% Margin 14.8% 12.0% 280 bps Total Segments $99.9 $82.0 22% Operati
Slide 6: 2017E End Market Sales Growth Outlook
2017E End Market Sales Growth Outlook(1)(Guidance as of Oct. 25, 2017) Updated (in blue) FY2017E FY2017E % of Total (Prior) (Current) Sales Aero Defense 23 - 25% 23 - 25% 16% Ground Defense Flat 4 - 6% 4% Naval Defense (1 - 3%) (0 - 2%) 18% Total Defense 7 - 9% 8 - 10% 39% Including Other Defense Co
Slide 7: 2017E Financial Outlook
(1) 2017E Financial Outlook (Guidance as of Oct. 25, 2017) Updated (in blue) ($ in millions, except EPS) FY2017E FY2017E Change vs (Prior) (Current) 2016 Commercial / Industrial $1,120 - 1,140 $1,130 - 1,150 1 - 3% Defense $540 - 550 $540 - 550 16 - 18% Power $525 - 535 $540 - 550 3 - 5% Total Sales
Slide 8: 2017E Financial Outlook
(1) 2017E Financial Outlook (Guidance as of Oct. 25, 2017) Updated (in blue) ($ in millions, except EPS) FY2017E FY2017E Change vs (Prior) (Current) 2016 Total Operating Income $321 - 329 $328 - 336 6 - 9% Pension/401K Expense $17 - 18 $17 - 18 Interest Expense $41 - 42 $41 - 42 Provision for Income
Slide 9: 2017E Financial Outlook
2017E Financial Outlook (Guidance as of Oct. 25, 2017) Updated (in blue) ($ in millions) FY2017E FY2017E (Prior) (Current) Free Cash Flow (1) $260 - 280 $270 - 290 Free Cash Flow Conversion(2) 130 - 137% 130 - 136% Capital Expenditures $45 - 55 No change Depreciation & Amortization $105 - 115 No cha
Slide 10: Positioned to Deliver Strong 2017 Results
Positioned to Deliver Strong 2017 Results Expect solid sales growth in commercial and defense markets – Led by improving trends in general industrial markets Continued organic operating margin expansion, up ~60bps (excluding TTC) – Improving sales outlook and benefit of operational and margin im
Slide 11: Appendix
Appendix 11 | October 26, 2017 | © 2017 Curtiss-Wright
Slide 12: Non-GAAP Reconciliation
Non-GAAP Reconciliation Three Months Ended September 30, 2017 vs. 2016 Commercial/Industrial Defense Power Total Curtiss-Wright Operating Operating Operating Operating Sales income Sales income Sales income Sales income Organic 6% 20% 8% 0% 12% 38% 8% 20% Acquisitions 0% 0% 16% 20% 0% 0% 4% 7% Forei
Slide 13: 2017 End Market Sales Waterfall
2017 End Market Sales Waterfall (Guidance as of Oct. 25, 2017) Guidance: ($ Millions) Total CW End Markets Defense Markets up 8-10% $2,210 - 2,250 Comm’l Markets up 3-5% Defense Markets Commercial Markets 39% 61% Naval Commercial Aerospace Power Generation General Industrial 18% 18% 19% 24% Aerospac