Slide 1: 2Q 2017 Earnings Conference Call
2Q 2017 Earnings Conference Call July 27, 2017 NYSE: CW 1 | July 27, 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 Second Quarter Performance and Business Outlook
2017 Second Quarter Performance and Business Outlook 2Q’17 Highlights Diluted EPS of $1.13, ahead of expectations, reflecting: – Higher sales and profitability in all three segments Net Sales up 7% overall (5% organic) – Strong power generation sales and improved industrial demand – Benefit of T
Slide 4: Second Quarter 2017 End Market Sales
Second Quarter 2017 End Market Sales Key Drivers 2Q’17 % of Total Defense Markets (4% sales growth, (1%) organic) Change Sales Aerospace Defense: Higher flight test (TTC acquisition) and embedded computing sales on UAVs and ISR Aero Defense 15% 16% programs Ground Defense (12%) 3% Ground Defense
Slide 5: Second Quarter 2017 Operating Income / Margin Drivers
Second Quarter 2017 Operating Income / Margin Drivers Change 2Q’17 Margin ex. ($ in millions) 2Q’17 2Q’16 vs. 2016 TTC acquisition dilution: Commercial / Industrial $43.7 $39.0 12% Margin 15.0% 13.4% 160 bps Defense $21.2 $18.6 14% Margin 16.8% 16.3% 50 bps 19.8% Power $24.9 $16.1 54% Margin 16.6% 1
Slide 6: 2017E End Market Sales Growth Outlook
2017E End Market Sales Growth Outlook(1)(Guidance as of July 26, 2017) Updated (in blue) FY2017E FY2017E % of Total (Prior) (Current) Sales Aero Defense 23 - 25% No change 17% Ground Defense Flat No change 4% Naval Defense (1 - 3%) No change 18% Total Defense 7 - 9% No change 39% Including Other Def
Slide 7: 2017E Financial Outlook
(1) 2017E Financial Outlook (Guidance as of July 26, 2017) Updated (in blue) ($ in millions, except EPS) FY2017E FY2017E Change vs (Prior) (Current) 2016 Commercial / Industrial $1,100 - 1,120 $1,120 - 1,140 0 - 2% Defense $540 - 550 No change 16 - 18% Power $525 - 535 No change 0 - 2% Total Sales $
Slide 8: 2017E Financial Outlook
(1) 2017E Financial Outlook (Guidance as of July 26, 2017) Updated (in blue) ($ in millions, except EPS) FY2017E FY2017E Change vs (Prior) (Current) 2016 Total Operating Income $316 - 325 $321 - 329 4 - 7% Pension/401K Expense $17 - 18 No change Interest Expense $40 - 41 $41 - 42 Provision for Incom
Slide 9: 2017E Financial Outlook
2017E Financial Outlook (Guidance as of July 26, 2017) Updated (in blue) ($ in millions) FY2017E FY2017E (Prior) (Current) Free Cash Flow (1) $260 - 280 No change Free Cash Flow Conversion(2) 132 - 139% 130 - 137% Capital Expenditures $45 - 55 No change Depreciation & Amortization $105 - 115 No chan
Slide 10: Positioned to Deliver Solid 2017 Results
Positioned to Deliver Solid 2017 Results Expect solid sales growth in commercial and defense markets – Improving trends in general industrial markets Continued organic operating margin expansion, up ~50bps (excluding TTC) – Led by operational and margin improvement initiatives – Mitigating impac
Slide 11: Appendix
Appendix 11 | July 27, 2017 | © 2017 Curtiss-Wright
Slide 12: Non-GAAP Reconciliation
Non-GAAP Reconciliation Organic Revenue and Organic Operating Income The Corporation discloses organic revenue and organic operating income because the Corporation believes it provides investors with insight as to the Company’s ongoing business performance. Organic revenue and organic operating inco
Slide 13: 2017 End Market Sales Waterfall
2017 End Market Sales Waterfall (Guidance as of July 26, 2017) Guidance: ($ Millions) Total CW End Markets Defense Markets up 7-9% $2,185 - 2,225 Comm’l Markets up 1-3% Defense Markets Commercial Markets 39% 61% Naval Commercial Aerospace Power Generation General Industrial 18% 18% 19% 24% Aerospace