Slide 1: 3Q 2014 Earnings Conference Call
3Q 2014 Earnings Conference Call October 30, 2014 1 | October 30, 2014 | © 2014 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 web site from one to twelve months following the initial presentation, but content will not be updated to reflect
Slide 3: Overview of Third Quarter 2014 Results
Overview of Third Quarter 2014 Results Sales increased 9%, led by double-digit gains in the Commercial / Industrial segment – Commercial markets up 8%; Defense markets up 11% Operating income increased 13%, led by 7% organic growth Operating margin up 50 bps to 13.3% – Benefits of ongoing marg
Slide 4: 3Q 2014 End Markets Summary
3Q 2014 End Markets Summary Commercial Key Positives Aero 19% Strong growth in industrial vehicles, Power aided by acquisition Generation 18% Ongoing ramp up in commercial General aircraft production rates (notably 787) Industrial 19% Solid performance in Oil & Gas for aftermarket equipment Oi
Slide 5: 2014E Market Outlook (Guidance as of October 29, 2014)
2014E Market Outlook (Guidance as of October 29, 2014) FY2014E FY2014E* % of Total (Prior) (Current) Sales Aero Defense 8 - 12% 11 - 13% 13% Ground Defense (7 - 11%) (6 - 8%) 3% Naval Defense (2) - 2% 3 - 5% 17% Total Defense 1 - 5% 3 - 5% 34% Including Other Defense Commercial Aero 6 - 10% 6 - 8% 1
Slide 6: 2014E Financial Outlook (Guidance as of October 29, 2014)
2014E Financial Outlook (Guidance as of October 29, 2014) FY2014E FY2014E* (Prior) (Current) Total Sales $2,565 - 2,615M $2,250 - 2,300M Commercial / Industrial $1,040 - 1,060M $1,070 - 1,090M Defense $810 - 830M $755 - 775M Energy $715 - 725M $425 - 435M Total Operating Income $285 - 295M $276 - 28
Slide 7: 2014E Financial Outlook (Guidance as of October 29, 2014)
2014E Financial Outlook (Guidance as of October 29, 2014) FY2014E FY2014E* (Prior) (Current) Free Cash Flow (1) $180 - 200M No change Free Cash Flow Conversion 105 - 113% 108 - 117% Depreciation & Amortization $130 - 140M No change Capital Expenditures $80 - 90M No change (1) Free Cash Flow is defin
Slide 8: Strategic Margin Drivers
Strategic Margin Drivers Reshaping through portfolio review and rationalization Leveraging the benefits of One Curtiss-Wright – Lean – Supply Chain Management – Shared Services – Consolidation Programs Operational and productivity improvement initiatives Steady organic sales growth 2018 Oper
Slide 9: 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 both commercial and defense markets On track for significant operating margin expansion – Driven by operational improvement and cost reduction ini
Slide 10: Appendix
Appendix 10 | October 30, 2014 | © 2014 Curtiss-Wright
Slide 11: Non-GAAP Reconciliation
Non-GAAP Reconciliation Three Months Ended 2014 vs 2013 Commercial Defense Energy Total Curtiss-Wright Operating Operating Operating Operating Sales Sales Sales Sales income income income income Organic 6% 23% (0%) (1%) 4% 16% 4% 7% Acquisitions 7% 6% 4% 5% 3% (1%) 5% 5% Foreign Currency 1% (0%) 0%