Curtiss-wright Corporation · NYSE:CW
Curtiss-wright — Q4 2019 Earnings Presentation
21 slides from Curtiss-wright's earnings presentation, Feb 27, 2020
Slide 1: 4Q & FY 2019 Earnings Conference Call
4Q & FY 2019 Earnings Conference CallFebruary 27, 2020 NYSE: CW
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: Fourth Quarter 2019 Highlights
Fourth Quarter 2019 Highlights Net Sales of $656 million, up 1% Strong growth in defense markets, up 9% (8% organic)Mainly offset by lower power generation and general industrial revenuesAdjusted Operating Income up 12%; Adjusted Operating Margin of 18.8%, up 180 bpsReflects margin expansion in all
Slide 4: Full-Year 2019 Highlights
Full-Year 2019 Highlights Net Sales of $2.5 billion, up 3% Strong growth in defense markets, up 12% (9% organic)Partially offset by lower power generation and general industrial revenuesAdjusted Operating Income up 7%; Adjusted Operating Margin of 16.5%, up 70 bps Solid profitability in C/I and Powe
Slide 5: 901D Acquisition
901D Acquisition Completed acquisition of 901D Holdings, LLC (901D) on Dec. 31, 2019Benefits of 901D acquisitionLeading designer and manufacturer of MIL-SPEC Naval Shipboard (surface and submarine) ruggedized enclosure and electronic subsystemsIncreases our footprint on critical U.S. Navy shipbuildi
Slide 6: 2020E End Market Sales Growth
2020E End Market Sales Growth (Guidance as of February 26, 2020) 2019 2020E 2020E % Total Sales Key Drivers Aero Defense 11% 4% - 6% 16% Favorable growth on key platforms (esp. F-35) Ground Defense (4%) 5% - 7% 4% Modernization of U.S. ground platforms Naval Defense 17% 12% - 14% 25% Strong DoD supp
Slide 7: 2020E Financial Outlook: 2019 Old vs New Structure
($ in millions) 2019 Adjusted (1)(Old Structure) 2019 Adjusted (1)(New Structure) Commercial / Industrial $1,240 $1,138 Defense $581 $628 Power $669 $724 Total Sales $2,490 $2,490 Commercial / IndustrialMargin $19615.8% $18015.8% DefenseMargin $132 22.7% $140 22.3% PowerMargin $11717.5% $12617.4% Co
Slide 8: 2020E Financial Outlook by Segment
($ in millions) 2019 Adjusted (1)(New Structure) 2020E Adjusted (2) 2020E Change vs 2019 Adjusted (1)(2) 2020 Key Drivers Commercial / Industrial $1,138 $1,140 - 1,160 0% - 2% Modest growth in commercial & industrial markets Defense $628 $690 - 700 10% - 12% Solid growth in all defense marketsContri
Slide 9: 2020E Financial Outlook
2020E Financial Outlook (Guidance as of February 26, 2020) ($ in millions, except EPS) 2019 Adjusted (2) 2020E Adjusted (3) 2020E Change vs 2019 Adjusted (2)(3) 2020 Key Drivers Total Operating Income $411 $428 - 437 4% - 6% Higher profitability on strong defense revenues Other Income/(Expense) $24
Slide 10: Positioned to Deliver Solid 2020 Results
Positioned to Deliver Solid 2020 Results Strong defense revenues driving overall sales growth of 4% - 6%Continued adjusted operating margin expansion to reach 16.5% - 16.6% Driven by solid defense revenues and benefit of ongoing margin improvement initiativesRestructuring actions to drive approximat
Slide 11: Appendix: Non-GAAP Financial Results
Appendix Non-GAAP Financial Results The company reports its financial performance in accordance with accounting principles generally accepted in the United States of America ("GAAP"). This press release refers to "Adjusted" amounts, which are Non-GAAP financial measures described below. We utilize a
Slide 12: Fourth Quarter 2019 End Market Sales Growth
Fourth Quarter 2019 End Market Sales Growth Notes: Percentages in chart relate to Fourth Quarter 2019 sales compared with the prior year. Amounts may not add due to rounding.Any references to organic growth exclude the effects of foreign currency translation, acquisitions and divestitures, unless ot
Slide 13: Full-Year 2019 End Market Sales Growth
Full-Year 2019 End Market Sales Growth Notes: Percentages in chart relate to Full-Year 2019 sales compared with the prior year. Amounts may not add due to rounding.Any references to organic growth exclude the effects of foreign currency translation, acquisitions and divestitures, unless otherwise no
Slide 14: 2019 Sales by Segment vs. End Market: Realignment to New Structure
2019 Sales by Segment vs. End Market: Realignment to New Structure Power Segment (OLD) Commercial Aerospace 31% Commercial Aerospace 9% Ground Defense 15% Commercial Aerospace 8% Commercial / Industrial Segment (NEW) Defense Segment (OLD) Defense Segment (NEW) Commercial / Industrial Segment (OLD) P
Slide 15: FY2019 End Market Sales Waterfall
FY2019 End Market Sales Waterfall Non-Nuclear:Fossil power gen equipment; Surface Technologies services (peening/coatings) Industrial Pumps & Valves:65% O&G, 35% Chem/Petro75% MRO, 25% Projects Industrial Vehicles:“Own the Cab” strategy50% On-highway,50% Off-Highway Industrial Controls:Medical Mobil
Slide 16: FY2020E Guidance: Sales Waterfall
FY2020E Guidance: Sales Waterfall (as of February 26, 2020) Non-Nuclear:Fossil power gen equipment; Surface Technologies services (peening/coatings) Industrial Pumps & Valves:65% O&G, 35% Chem/Petro70% MRO, 30% Projects90% Valves, 10% Pumps Industrial Vehicles:“Own the Cab” strategy50% On-highway,50
Slide 17: Non-GAAP Reconciliation – Organic Results
Non-GAAP Reconciliation – Organic Results 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 orga
Slide 18: Non-GAAP Reconciliations – 4Q 2019 Results
Non-GAAP Reconciliations – 4Q 2019 Results (In millions, except EPS) 4Q-2019 4Q-2018 Change Sales $ 655.8 $ 648.6 1% Reported operating income (GAAP) $ 120.7 $ 110.0 10% Adjustments (1) 2.5 0.4 - Adjusted operating income (Non-GAAP) $ 123.2 $ 110.4 12% Adjusted operating margin (Non-GAAP) 18.8% 17.0
Slide 19: Non-GAAP Reconciliation – 2019 vs. 2018 (Adjusted)
Non-GAAP Reconciliation – 2019 vs. 2018 (Adjusted)
Slide 20: Non-GAAP Reconciliation – 2020 Segment Reorganization
Non-GAAP Reconciliation – 2020 Segment Reorganization
Slide 21: Non-GAAP Reconciliation – 2020 vs. 2019 (Adjusted)
Non-GAAP Reconciliation – 2020 vs. 2019 (Adjusted)