Slide 1: 2Q 2014 Earnings Conference Call
2Q 2014 Earnings Conference Call July 31, 2014 1 | July 31, 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 Second Quarter 2014 Results
Overview of Second Quarter 2014 Results Sales increased 9%, led by double-digit gains in the Commercial / Industrial and Energy segments – Commercial markets up 12%; Defense markets up 2% Operating income increased 27%, mostly organic Operating margin up 160 bps to 11.7% – Benefits of organiza
Slide 4: 2Q 2014 End Markets Summary
2Q 2014 End Markets Summary Power Key Positives Generation Ongoing ramp up in commercial Commercial 17% Aero aircraft production rates (notably 787) 17% Strong growth in industrial vehicles, aided by acquisitions Solid performance in Oil & Gas for Oil & Gas upstream and downstream equipment Ge
Slide 5: 2014E Market Outlook (Guidance as of July 30, 2014)
2014E Market Outlook (Guidance as of July 30, 2014) FY2014E FY2014E* % of Total (Prior) (Current) Sales Aero Defense 8 - 12% - 12% Ground Defense (7 - 11%) - 3% Naval Defense (2) - 2% - 14% Total Defense 1 - 5% No change 30% Including Other Defense Commercial Aero 6 - 10% - 17% Oil & Gas 11 - 15% -
Slide 6: 2014E Financial Outlook (Guidance as of July 30, 2014)
2014E Financial Outlook (Guidance as of July 30, 2014) FY2014E FY2014E* (Prior) (Current) Total Sales $2,650 - 2,700M $2,565 - 2,615M Commercial / Industrial $1,040 - 1,060M No change Defense $890 - 910M $810 - 830M Energy $720 - 730M $715 - 725M Total Operating Income $274 - 285M $285 - 295M CW Mar
Slide 7: 2014E Financial Outlook (Guidance as of July 30, 2014)
2014E Financial Outlook (Guidance as of July 30, 2014) FY2014E FY2014E* (Prior) (Current) Free Cash Flow (1) $170 - 190M $180 - 200M Free Cash Flow Conversion 103 - 112% 105 - 113% Depreciation & Amortization $130 - 140M No change Capital Expenditures $80 - 90M No change (1) Free Cash Flow is define
Slide 8: Strategic Margin Drivers
Strategic Margin Drivers Leveraging One Curtiss-Wright – Lean – Supply Chain Management – Shared Services Portfolio review and rationalization Operational and productivity improvement initiatives Steady organic sales growth 2018 Operating Margin Objective: 14% 8 | July 31, 2014 | © 2014 Curt
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 all commercial markets outweighs mixed performance in defense On track for significant operating margin expansion – Driven by operational improvem
Slide 10: Appendix
Appendix 10 | July 31, 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 5% 33% (4%) (21%) 13% 32% 4% 22% Acquisitions 7% 7% 2% 3% 0% (3%) 4% 5% Foreign Currency 2% (0%)