Curtiss-Wright Corporation (NYSE: CW) reported financial results for the second quarter and six months ended June 30, 2016.

Second Quarter 2016 Highlights
  • Earnings per diluted share of $0.88, exceeding expectations;
  • Free cash flow increased 49% to $79 million, resulting in free cash flow conversion of 199%, as defined in table below;
  • Net sales of $533 million;
  • Operating income of $68 million;
  • Operating margin of 12.8%, up 80 basis points;
  • Backlog of $2.0 billion increased 6% from December 31, 2015; and
  • Share repurchase of approximately $25 million.

Business Outlook
  • Increasing full-year 2016 operating margin guidance by 20 basis points to new range of 14.2% to 14.4%, despite lowering sales guidance;
  • Increasing free cash flow guidance by $10 million to new range of $300 million to $320 million; and
  • Maintaining full-year 2016 expectations for diluted earnings per share (EPS) of $4.00 to $4.15.

"Our second quarter results were ahead of our expectations, as we continue to focus on ongoing margin improvement initiatives and generate significant value for our shareholders despite challenging market conditions," said David C. Adams, Chairman and CEO of Curtiss-Wright Corporation. "Our performance was led by the Power segment, where we produced strong profitability aided by higher AP1000 program revenues, as we continue to support new nuclear power plant construction in the U.S. and China."

"Looking to the balance of 2016, we continue to anticipate steady, sequential margin improvement as we advance our drive to top-quartile financial performance. We are maintaining our full-year diluted EPS guidance of $4.00 to $4.15, despite having modified our sales outlook based on slowing conditions affecting several of our businesses, particularly those with exposure to the energy markets. In addition, as a result of our on-going cost control actions aimed at mitigating the challenging end market conditions, we are increasing our full-year operating margin guidance by another 20 basis points to a new range of 14.2% to 14.4%, a 90 to 110 basis point improvement compared to pro forma 2015 results. In addition, as a result of strong first half free cash flow and efficient working capital management, we are raising our full-year guidance by $10 million to a new range of $300 to $320 million."

"We remain committed to increasing shareholder value by improving profitability, generating strong free cash flow and maintaining a balanced capital allocation strategy. Thus far in 2016, we have returned more than $50 million to our shareholders through consistent share repurchases and dividend distributions. We continue to actively repurchase shares under our buyback program and expect to repurchase at least $100 million this year."

Second Quarter 2016 Operating Results from Continuing Operations
(In thousands)   2Q-2016     2Q-2015     % Change
Sales $ 532,766 $ 545,194 (2%)
Operating income 68,089 65,442 4%
Operating margin 12.8% 12.0% 80 bps

Sales

Sales of $533 million in the second quarter decreased $12 million, or 2%, compared to the prior year, primarily reflecting a $10 million decrease in organic sales as well as $2 million, or less than 1%, in unfavorable foreign currency translation. Second quarter 2016 sales primarily reflect continued lower demand in the energy sector within the Commercial/Industrial segment, as well as lower international ground defense sales in the Defense segment. Those decreases were partially offset by higher AP1000 program and naval defense revenues in the Power segment.

From an end market perspective, sales to the defense markets increased 1%, while sales to the commercial markets decreased 4%, compared to the prior year.

Please refer to the accompanying tables for a breakdown of sales by end market.

Operating Income

Operating income in the second quarter was $68 million, an increase of $3 million, or 4%, compared to the prior year. In the Power segment, our results reflect a solid improvement in operating income resulting from higher AP1000 program revenues and prior year AP1000 testing and design costs that did not recur in 2016. This improvement was partially offset by lower international ground defense sales in the Defense segment, as well as lower operating income in the Commercial/Industrial segment resulting from lower sales volumes.

Operating margin was 12.8%, an increase of 80 basis points over the prior year, primarily reflecting higher overall segment operating income, led by the strong performance in the Power segment, as well as the benefits of our ongoing margin improvement initiatives, despite lower sales.

Non-segment Expense

Non-segment expenses were essentially flat compared with the prior year, as lower pension expenses were offset by higher corporate expenses.

Net Earnings

Second quarter net earnings were essentially flat compared to the prior year, as higher operating income was partially offset by higher interest expense, which increased by $1 million compared to the prior year. In addition, the effective tax rate for the current quarter was 31.0%, an increase from 28.9% in the prior year, principally driven by increased foreign research and development tax benefits and favorable adjustments to certain valuation allowances in the prior year that did not recur.

Free Cash Flow
(In thousands)     2Q-2016     2Q-2015
Net cash generated from operating activities $ 86,371 $ 59,821
Capital expenditures   (6,908 )   (6,593 )
Free cash flow $ 79,463 $ 53,228

Free cash flow, defined as cash flow from operations less capital expenditures, was $79 million for the second quarter of 2016, an increase of $26 million compared to $53 million in the prior year. Net cash generated from operating activities increased $27 million to $86 million, primarily driven by higher advanced payments related to the new China AP1000 order. Capital expenditures of $7 million were essentially flat with the prior year.

New Orders and Backlog

New orders of $524 million in the second quarter were essentially flat compared to the prior year, primarily due to lower orders within the Defense segment where a significant international ground defense contract was received in the prior year, partially offset by higher orders within the Commercial/Industrial and Power segments. Backlog of $2.0 billion increased 6% from December 31, 2015, led by growth in our naval defense businesses.

Other Items - Share Repurchase

During the second quarter, the Company repurchased 315,500 shares of its common stock for approximately $25 million.

Full-Year 2016 Guidance

The Company is updating its full-year 2016 financial guidance as follows:
Prior Guidance     Current Guidance     Chg vs. 2015
Total sales $2.17 - $2.22 billion $2.12 - $2.17 billion Down 1 - 3%
Operating income $304 - $315 million $301 - $313 million Up 4 - 8%
Operating margin 14.0% - 14.2% 14.2% - 14.4% Up 90 - 110 bps
Interest expense $38 - $39 million $40 - $41 million
Diluted earnings per share $4.00 - $4.15 No change Up 7 - 11%
Diluted shares outstanding 46.0 million 45.2 million
Free cash flow $290 - $310 million $300 - $320 million Up 10 - 18%

Notes:

Full-year 2016 growth rates reflect comparisons to 2015 Pro Forma results, which exclude the one-time China AP1000 fee of $20 million recognized in the fourth quarter of 2015.

Additionally, 2016 growth in free cash flow is comparable to adjusted free cash flow for 2015, which excludes the contribution to the Company's corporate defined benefit pension plan of $145 million in 2015.

A more detailed breakdown of the Company's 2016 guidance by segment and by market can be found in the attached accompanying schedules.

Second Quarter 2016 Segment Performance

Commercial/Industrial
(In thousands)   2Q-2016     2Q-2015     % Change
Sales $ 290,046 $ 304,465 (5%)
Operating income 38,957 45,253 (14%)
Operating margin 13.4% 14.9% (150 bps)

Sales for the second quarter were $290 million, a decrease of $14 million, or 5%, over the prior year. Organic sales decreased 4% over the prior year, excluding $2 million in unfavorable foreign currency translation. In the general industrial market, our results primarily reflect the expected reduction in sales of severe-service valves serving the oil and gas markets, as well as lower sales for industrial vehicle products. Within the commercial aerospace market, higher sales to Boeing for actuation systems and sensors and controls products were partially offset by lower sales of surface technology services to Airbus.

Operating income in the second quarter was $39 million, down 14% from the prior year, while operating margin decreased 150 basis points to 13.4%. These results primarily reflect decreased profitability for industrial valves due to lower sales volumes, more than offsetting the benefit of higher sales of sensors and controls products. We also achieved higher operating margin for industrial vehicle products and surface treatment services, despite lower sales volumes, due to ongoing margin improvement initiatives. In addition, favorable foreign currency translation added $1 million to current quarter results.

Defense
(In thousands)   2Q-2016     2Q-2015     % Change
Sales $ 113,961 $ 119,651 (5%)
Operating income 18,609 24,391 (24%)
Operating margin 16.3% 20.4% (410 bps)

Sales for the second quarter were $114 million, a decrease of $6 million, or 5%, from the prior year. Organic sales decreased 4% from the prior year, excluding $1 million in unfavorable foreign currency translation. In the aerospace defense market, we experienced higher sales of embedded computing products on various fighter jet, helicopter and UAV programs, including the Global Hawk, Apache and P-8 programs, which were principally offset by lower foreign military sales. In the ground defense market, second quarter 2016 results primarily reflect lower turret drive stabilization systems sales. We also experienced lower revenues related to avionics and electronics equipment within the commercial aerospace market.

Operating income in the second quarter was $19 million, a decrease of $6 million, or 24%, compared to the prior year, while operating margin declined 410 basis points to 16.3%. The decrease was primarily driven by the transition from a development to a production contract for our turret drive stabilization systems, which provided a net one-time benefit of $4 million in the prior year. These results also reflect lower sales volumes in our commercial avionics and electronics business. Favorable foreign currency translation added $2 million to current quarter results.

Power
(In thousands)   2Q-2016     2Q-2015     % Change
Sales $ 128,759 $ 121,078 6%
Operating income 16,114 1,454 1,008%
Operating margin 12.5% 1.2% 1,130 bps

Sales for the second quarter were $129 million, an increase of $8 million, or 6%, over the prior year. Within the power generation market, our results reflect higher production revenues from the U.S. and China AP1000 programs, which were partially offset by lower aftermarket sales primarily supporting domestic nuclear operating reactors. In the naval defense market, we experienced higher development sales of pumps and generators supporting the ramp-up on the new Ohio-class replacement submarine program, partially offset by lower sales of pumps and valves on the CVN-79 aircraft carrier program as production is nearing completion.

Operating income in the second quarter was $16 million, an increase of $15 million, or 1,008%, compared to the prior year, while operating margin increased 1,130 basis points to 12.5%. These results reflect higher AP1000 production revenues in the current year and approximately $11 million in AP1000 testing and design costs incurred in the prior year to complete engineering and endurance testing that did not recur. These improvements were partially offset by reduced profitability in our aftermarket power generation business due to lower sales volumes.

Conference Call Information

The Company will host a conference call to discuss second quarter 2016 financial results at 9:00 a.m. EDT on Thursday, July 28, 2016. A live webcast of the call and the accompanying financial presentation will be made available on the internet by visiting the Investor Relations section of the Company's website at www.curtisswright.com.
CURTISS-WRIGHT CORPORATION and SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS (UNAUDITED)
($'s in thousands, except per share data)
                 
 
Three Months Ended Six Months Ended
June 30, Change June 30, Change
2016 2015 $   % 2016 2015 $   %
Product sales $ 427,324 $ 439,871 $ (12,547 ) (3 %) $ 830,242 $ 885,558 $ (55,316 ) (6 %)
Service sales   105,442     105,323     119   0 %   206,031     205,835     196   0 %
Total net sales 532,766 545,194 (12,428 ) (2 %) 1,036,273 1,091,393 (55,120 ) (5 %)
 
Cost of product sales 279,869 287,685 (7,816 ) (3 %) 544,604 580,694 (36,090 ) (6 %)
Cost of service sales   67,518     75,158     (7,640 ) (10 %)   134,387     137,252     (2,865 ) (2 %)
Total cost of sales 347,387 362,843 (15,456 ) (4 %) 678,991 717,946 (38,955 ) (5 %)
 
Gross profit 185,379 182,351 3,028 2 % 357,282 373,447 (16,165 ) (4 %)
 
Research and development expenses 15,236 15,321 (85 ) (1 %) 30,396 30,583 (187 ) (1 %)
Selling expenses 29,126 29,105 21 0 % 58,752 60,193 (1,441 ) (2 %)
General and administrative expenses   72,928     72,483     445   1 %   142,782     144,394     (1,612 ) (1 %)
 
Operating income 68,089 65,442 2,647 4 % 125,352 138,277 (12,925 ) (9 %)
 
Interest expense (10,273 ) (8,985 ) (1,288 ) 14 % (20,206 ) (17,981 ) (2,225 ) 12 %
Other income, net   101     (37 )   138   NM   335     444     (109 ) NM
 
Earnings before income taxes 57,917 56,420 1,497 3 % 105,481 120,740 (15,259 ) (13 %)
Provision for income taxes   (17,954 )   (16,299 )   (1,655 ) 10 %   (32,699 )   (37,396 )   4,697   (13 %)
Earnings from continuing operations $ 39,963   $ 40,121   $ (158 ) (0 %) $ 72,782   $ 83,344   $ (10,562 ) (13 %)
 
Loss from discontinued operations, net of tax - (14,384 ) 14,384 NM - (41,616 ) 41,616 NM
           
Net earnings $ 39,963   $ 25,737   $ 14,226   55 % $ 72,782   $ 41,728   $ 31,054   74 %
 
Basic earnings per share
Earnings from continuing operations $ 0.90 $ 0.85 $ 1.63 $ 1.76
Earnings from discontinued operations   -     (0.31 )   -     (0.88 )
Total $ 0.90   $ 0.54   $ 1.63   $ 0.88  
 
Diluted earnings per share
Earnings from continuing operations $ 0.88 $ 0.83 $ 1.61 $ 1.72
Earnings from discontinued operations   -     (0.30 )   -     (0.86 )
Total $ 0.88   $ 0.53   $ 1.61   $ 0.86  
 
 
Dividends per share $ 0.13   $ 0.13   $ 0.26   $ 0.26  
 
Weighted average shares outstanding:
Basic 44,487 47,224 44,526 47,466
Diluted 45,164 48,258 45,195 48,487
 
NM- not meaningful
 

CURTISS-WRIGHT CORPORATION and SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED)
($'s in thousands, except par value)
       
 
 
June 30, December 31, Change
2016 2015 %
Assets
Current assets:
Cash and cash equivalents $ 383,151 $ 288,697 33 %
Receivables, net 477,018 566,289 (16 %)
Inventories 397,562 379,591 5 %
Other current assets   52,561     40,306   30 %
Total current assets   1,310,292     1,274,883   3 %
Property, plant, and equipment, net 393,909 413,644 (5 %)
Goodwill 967,850 972,606 (0 %)
Other intangible assets, net 292,498 310,763 (6 %)
Other assets   14,631     17,715   (17 %)
Total assets $ 2,979,180   $ 2,989,611   (0 %)
 
Liabilities
Current liabilities:
Current portion of long-term and short term debt $ 1,113 $ 1,259 (12 %)
Accounts payable 133,483 163,286 (18 %)
Accrued expenses 108,796 131,863 (17 %)
Income taxes payable 6,601 7,956 (17 %)
Deferred revenue 190,825 181,671 5 %
Other current liabilities   41,500     37,190   12 %
Total current liabilities   482,318     523,225   (8 %)
Long-term debt, net 966,451 951,946 2 %
Deferred tax liabilities, net 58,870 54,447 8 %
Accrued pension and other postretirement benefit costs 101,720 103,723 (2 %)
Long-term portion of environmental reserves 14,512 14,017 4 %
Other liabilities   81,038     86,830   (7 %)
Total liabilities   1,704,909     1,734,188   (2 %)
 
Stockholders' equity
Common stock, $1 par value 49,187 49,190 (0 %)
Additional paid in capital 132,374 144,923 (9 %)
Retained earnings 1,651,851 1,590,645 4 %
Accumulated other comprehensive loss (237,337 ) (225,928 ) 5 %
Less: cost of treasury stock   (321,804 )   (303,407 ) 6 %
Total stockholders' equity   1,274,271     1,255,423   2 %
   
Total liabilities and stockholders' equity $ 2,979,180   $ 2,989,611   (0 %)
 

CURTISS-WRIGHT CORPORATION and SUBSIDIARIES
SEGMENT INFORMATION (UNAUDITED)
($'s in thousands)
             
 
Three Months Ended Six Months Ended
June 30, June 30,
Change Change
2016 2015 % 2016 2015 %

Sales:
Commercial/Industrial $ 290,046 $ 304,465 (5 %) $ 564,773 $ 602,352 (6 %)
Defense 113,961 119,651 (5 %) 219,352 233,151 (6 %)
Power   128,759     121,078   6 %   252,148     255,890   (1 %)
 
Total sales $ 532,766 $ 545,194 (2 %) $ 1,036,273 $ 1,091,393 (5 %)
 
Operating income (expense):
Commercial/Industrial $ 38,957 $ 45,253 (14 %) $ 69,009 $ 88,542 (22 %)
Defense 18,609 24,391 (24 %) 35,454 42,418 (16 %)
Power   16,114     1,454   1008 %   30,742     20,966   47 %
 
Total segments $ 73,680 $ 71,098 4 % $ 135,205 $ 151,926 (11 %)
Corporate and other   (5,591 )   (5,656 ) 1 %   (9,853 )   (13,649 ) 28 %
 
Total operating income $ 68,089   $ 65,442   4 % $ 125,352   $ 138,277   (9 %)
 
 

Operating margins:
Commercial/Industrial 13.4 % 14.9 % 12.2 % 14.7 %
Defense 16.3 % 20.4 % 16.2 % 18.2 %
Power 12.5 % 1.2 % 12.2 % 8.2 %
Total Curtiss-Wright 12.8 % 12.0 % 12.1 % 12.7 %
 
Segment margins 13.8 % 13.0 % 13.0 % 13.9 %
 

CURTISS-WRIGHT CORPORATION and SUBSIDIARIES  
SALES BY END MARKET (UNAUDITED)
($'s in thousands)
         
 
Three Months Ended Six Months Ended
June 30, June 30,    
Change

Change
2016 2015 % 2016 2015

%
Defense markets:
Aerospace $ 76,167 $ 75,766 1 % $ 137,715 $ 147,107

(6

%)
Ground 19,886 24,233 (18 %) 39,062 42,893

(9

%)
Naval 104,509 100,117 4 % 197,460 189,884

4

%
Other   2,415   1,529 58 %   3,669   3,550

3

%
Total Defense $ 202,977 $ 201,645 1 % $ 377,906 $ 383,434

(1

%)
 
Commercial markets:
Commercial Aerospace $ 104,062 $ 98,889 5 % $ 206,249 $ 200,078

3

%
Power Generation 95,768 94,242 2 % 195,618 207,478

(6

%)
General Industrial   129,959   150,418 (14 %)   256,500   300,403

(15

%)
Total Commercial $ 329,789 $ 343,549 (4 %) $ 658,367 $ 707,959

(7

%)
       
Total Curtiss-Wright $ 532,766 $ 545,194 (2 %) $ 1,036,273 $ 1,091,393

(5

%)
 

Use of Non-GAAP Financial Information

The Corporation supplements its financial information determined under U.S. generally accepted accounting principles (GAAP) with certain non-GAAP financial information. Curtiss-Wright believes that these non-GAAP measures provide investors with additional insight into the Company's ongoing business performance. These non-GAAP measures should not be considered in isolation or as a substitute for the related GAAP measures, and other companies may define such measures differently. Curtiss-Wright encourages investors to review its financial statements and publicly-filed reports in their entirety and not to rely on any single financial measure. The following definitions are provided:

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 income are defined as revenue and operating income excluding the impact of foreign currency fluctuations and contributions from acquisitions made during the last twelve months.
Three Months Ended
June 30,
2016 vs 2015
Commercial/Industrial     Defense     Power     Total Curtiss-Wright
Sales  

Operatingincome
Sales  

Operatingincome
Sales  

Operatingincome
Sales  

Operatingincome
Organic (4 %) (16 %) (4 %) (30 %) 6 % 1011 % (2 %) 0 %
Acquisitions 0 % 0 % 0 % 0 % 0 % 0 % 0 % 0 %
Foreign Currency (1 %) 2 % (1 %) 6 % (0 %) (3 %) (0 %) 4 %
Total (5 %) (14 %) (5 %) (24 %) 6 % 1008 % (2 %) 4 %
 
Six Months Ended
June 30,
2016 vs 2015
Commercial/Industrial Defense Power Total Curtiss-Wright
Sales

Operatingincome
Sales

Operatingincome
Sales

Operatingincome
Sales

Operatingincome
Organic (6 %) (24 %) (5 %) (25 %) (1 %) 47 % (5 %) (13 %)
Acquisitions 1 % 1 % 0 % 0 % 0 % 0 % 1 % 0 %
Foreign Currency (1 %) 1 % (1 %) 9 % (0 %) 0 % (1 %) 4 %
Total (6 %) (22 %) (6 %) (16 %) (1 %) 47 % (5 %) (9 %)
 

Free Cash Flow and Free Cash Flow Conversion

The Corporation discloses free cash flow because it measures cash flow available for investing and financing activities. Free cash flow represents cash available to repay outstanding debt, invest in the business, acquire businesses, return capital to shareholders and make other strategic investments. Free cash flow is defined as cash flow provided by operating activities less capital expenditures. The Corporation discloses free cash flow conversion because it measures the proportion of net earnings converted into free cash flow and is defined as free cash flow divided by net earnings from continuing operations.
CURTISS-WRIGHT CORPORATION and SUBSIDIARIES
NON-GAAP FINANCIAL DATA (UNAUDITED)
($'s in thousands)
       
 
Three Months Ended Six Months Ended
June 30, June 30,
2016 2015 2016 2015
 
Net cash provided by operating activities $ 86,371 $ 59,821 $ 156,631 $ (111,270 )
Capital expenditures   (6,908 )   (6,593 )   (15,733 )   (15,689 )
Free cash flow $ 79,463   $ 53,228   $ 140,898   $ (126,959 )
 
Pension Payment - - - 145,000
       
Adjusted free cash flow $ 79,463   $ 53,228   $ 140,898   $ 18,041  
 
Free Cash Flow Conversion   199 %   133 %   194 %   22 %
 

CURTISS-WRIGHT CORPORATION
2016 Guidance (from Continuing Operations)
As of July 27, 2016
($'s in millions, except per share data)
     
 

2015

Reported

2015 Pro

Forma*
2016 Guidance (Current)
Low High

Sales:
Commercial/Industrial $ 1,185 $ 1,185 $ 1,130 $ 1,155
Defense 477 477 475 485
Power   543     523     515     530  
Total sales $ 2,206 $ 2,186 $ 2,120 $ 2,170
 

Operating income:
Commercial/Industrial $ 172 $ 172 $ 165 $ 170
Defense 99 99 92 96
Power   75     55     68     71  
Total segments 345 325 325 337
Corporate and other   (35 )   (35 )   (24 )   (25 )
Total operating income $ 311   $ 291   $ 301   $ 313  
 
Interest expense $ (36 ) $ (36 ) $ (40 ) $ (41 )
Earnings before income taxes 275 255 262 272
Provision for income taxes   (83 )   (77 )   (81 )   (84 )
Net earnings $ 192   $ 178   $ 181   $ 188  
 
Reported diluted earnings per share $ 4.04 $ 3.74 $ 4.00 $ 4.15
Diluted shares outstanding 47.6 47.6 45.2 45.2
Effective tax rate 30.1 % 30.1 % 31.0 % 31.0 %
 
 

Operating margins:
Commercial/Industrial 14.5 % 14.5 % 14.6 % 14.8 %
Defense 20.7 % 20.7 % 19.5 % 19.7 %
Power 13.8 % 10.5 % 13.2 % 13.4 %
Total operating margin 14.1 % 13.3 % 14.2 % 14.4 %
 

Note: Full year amounts may not add due to rounding

* Excludes the one-time China AP1000 fee of $20 million recognized as revenue and operating income in the fourth quarter of 2015. This affects the Power segment and Total Curtiss-Wright.

CURTISS-WRIGHT CORPORATION
2016 Sales Growth Guidance by End Market (from Continuing Operations)
As of July 27, 2016
   
(Prior) (Current)
2016 % Change vs 2015 2016 % Change vs 2015
 

Defense Markets
Aerospace 1 - 3% Flat
Ground 4 - 6% (2 - 4%)
Navy 0 - 2% 0 - 2%

Total Defense

(Including Other Defense)
2 - 4% Flat
 

Commercial Markets
Commercial Aerospace (2 - 4%) Flat
Power Generation 4 - 6% 0 - 2%
General Industrial (2 - 6%) (5 - 9%)
Total Commercial (1 - 3%) (2 - 4%)
 
Total Curtiss-Wright Sales Down 1% to Up 1% Down 1% to 3%

Note: Full year amounts may not add due to rounding

* The Company's full-year 2016 guidance reflects sales growth rates compared to 2015 Pro Forma results, which exclude the one-time China AP1000 fee of $20 million recognized as revenue in the fourth quarter of 2015. This affects 2016 growth rates for Power Generation, Total Commercial and Total Curtiss-Wright sales.

About Curtiss-Wright Corporation

Curtiss-Wright Corporation (NYSE: CW) is a global innovative company that delivers highly engineered, critical function products and services to the commercial, industrial, defense and energy markets. Building on the heritage of Glenn Curtiss and the Wright brothers, Curtiss-Wright has a long tradition of providing reliable solutions through trusted customer relationships. The company employs approximately 8,400 people worldwide. For more information, visit www.curtisswright.com.

Certain statements made in this press release, including statements about future revenue, financial performance guidance, quarterly and annual revenue, net income, operating income growth, future business opportunities, cost saving initiatives, the successful integration of the Company's acquisitions, and future cash flow from operations, are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements present management's expectations, beliefs, plans and objectives regarding future financial performance, and assumptions or judgments concerning such performance. Any discussions contained in this press release, except to the extent that they contain historical facts, are forward-looking and accordingly involve estimates, assumptions, judgments and uncertainties. Such forward-looking statements are subject to certain risks and uncertainties that could cause actual results to differ materially from those expressed or implied. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date hereof. Such risks and uncertainties include, but are not limited to: a reduction in anticipated orders; an economic downturn; changes in the competitive marketplace and/or customer requirements; a change in government spending; an inability to perform customer contracts at anticipated cost levels; and other factors that generally affect the business of aerospace, defense contracting, electronics, marine, and industrial companies. Such factors are detailed in the Company's Annual Report on Form 10-K for the fiscal year ended December 31, 2015, and subsequent reports filed with the Securities and Exchange Commission.

This press release and additional information are available at www.curtisswright.com .

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