Curtiss-Wright Earnings Increase 16% From Normalized First Quarter of 2000

Apr 26, 2001, 01:00 ET from Curtiss-Wright Corporation

    LYNDHURST, N.J., April 26 /PRNewswire/ -- Curtiss-Wright Corporation
 (NYSE:   CW) announced today its financial results for the first quarter of
 2001.  The first quarter's highlights are as follows:
 
     * Net earnings of $9,219,000 or $0.90 per diluted share, represent an
       increase of 16% over the normalized net earnings for the first quarter
       of 2000 of $7,977,000 or $0.79 per diluted share.
 
     * Operating income for the first quarter of 2001 totaled $11,265,000 as
       compared with normalized operating income of $10,042,000 for the same
       period last year, a 12% increase.
 
     * Sales for the first quarter in 2001 declined 3% to $79,917,000 from
       $82,237,000 for the same period last year.
 
     Last year's first quarter contained some unusual items; the net effect of
 which had a favorable impact of $2,047,000 on pre-tax earnings and $1,252,000
 on after-tax earnings.   Excluding the unusual items, net earnings in the
 first quarter of 2000 would have been $7,977,000, or $0.79 per diluted share.
 Relative foreign currency exchange rates in the first quarter of 2001 as
 compared to last year negatively affected sales by approximately $1,261,000,
 and operating income by approximately $520,000.
     Martin Benante, Chairman and CEO of Curtiss-Wright, stated, "We are
 pleased to report higher operating income for the first quarter of 2001 over
 normalized operating income for the same period last year.  We were able to
 achieve this increase despite the adverse impacts of foreign currency exchange
 rates on sales and profits and some weakness in a few of our served markets
 which further reduced revenues.  Benefits from our cost-reduction programs
 offset our lower sales volume."
     Mr. Benante added,  "We have seen some of the benefits of the Company's
 market diversification in the first quarter as improved volume in our
 aerospace and petrochemical markets offset declines for our automotive-related
 activities.  Based upon current delivery schedules in most of our markets, we
 expect stronger sales for our OEM products and services for the balance of the
 year. Also this quarter we made a small but strategic acquisition of Solent &
 Pratt, an English valve manufacturer that gave us a complementary product line
 and a very strong distribution network in the European petrochemical valve
 market.  We also made some other strategic changes in the way we address the
 petrochemical flow control market.  We made a number of changes in the firms
 that distribute our products to this market. We have sold our distribution
 business in Western Canada to a well-position distribution firm in the area.
 These changes should increase our volume and improve our cost structure.  We
 also rolled out our business-to-business initiative to have our distributors
 order and monitor their order status over the Internet."
     Provided below are the financial results for the first quarter of 2001 and
 2000:
 
                  CURTISS-WRIGHT CORPORATION and SUBSIDIARIES
                      CONSOLIDATED STATEMENTS OF EARNINGS
                                  (UNAUDITED)
                      (In thousands except per share data)
 
 
                                    Three Months Ended
                                         March 31,             Change
                                      2001     2000          $        %
 
     Net sales                      $79,917  $82,237     $(2,320)   -2.8%
     Cost of sales                   49,906   53,308      (3,402)   -6.4%
     Gross profit                    30,011   28,929       1,082     3.7%
 
     Research and development costs     897    1,388        (491)  -35.4%
     Selling expenses                 4,593    4,756        (163)   -3.4%
     General and administrative
       expenses                      13,338   10,579       2,759    26.1%
     Environmental remediation
       and administration
       expenses, net of recovery        (82)     117        (199) -170.1%
 
     Operating income                11,265   12,089        (824)   -6.8%
 
     Investment income, net             843      505         338    66.9%
     Rental income, net                 743    1,160        (417)  -35.9%
     Pension income, net              2,344    1,744         600    34.4%
     Other expense, net                (167)     (32)       (135)  421.9%
     Interest income (expense)         (249)    (376)        127   -33.8%
 
     Earnings before income taxes    14,779   15,090        (311)   -2.1%
     Provision for income taxes       5,560    5,861        (301)   -5.1%
 
     Net earnings                    $9,219   $9,229        $(10)   -0.1%
 
     Basic earnings per
       common share                   $0.92    $0.92           -       -
     Diluted earnings per
       common share                   $0.90    $0.91           -       -
 
     Dividends per common share       $0.13    $0.13           -       -
 
     Weighted average shares
       outstanding
       Basic:                        10,039   10,035           -       -
       Diluted:                      10,212   10,132           -       -
 
 
                  CURTISS-WRIGHT CORPORATION and SUBSIDIARIES
                          CONSOLIDATED BALANCE SHEETS
                                 (In thousands)
 
                                  (UNAUDITED)
 
                                    March 31, December 31,       Change
                                      2001       2000          $        %
     Assets:
     Current assets:
       Cash and cash equivalents    $12,635     $8,692       $3,943   45.4%
       Short-term investments        59,578     62,766       (3,188)  -5.1%
       Receivables, net              65,290     67,815       (2,525)  -3.7%
       Inventories                   48,390     50,002       (1,612)  -3.2%
       Deferred tax assets            9,431      9,378           53    0.6%
       Other current assets           4,186      3,419          767   22.4%
     Total current assets           199,510    202,072       (2,562)  -1.3%
 
     Property, plant and
       equipment, at cost           253,249    246,896        6,353    2.6%
     Less: accumulated depreciation 158,005    156,443        1,562    1.0%
     Property, plant and
       equipment, net                95,244     90,453        4,791    5.3%
 
     Prepaid pension costs           62,106     59,765        2,341    3.9%
     Goodwill, net                   46,704     47,543         (839)  -1.8%
     Other assets                     9,233      9,583         (350)  -3.7%
 
     Total assets                  $412,797   $409,416       $3,381    0.8%
 
     Liabilities:
     Current Liabilities:
       Current portion of
         long-term debt              $1,300     $5,347      $(4,047) -75.7%
       Dividends payable              1,302          0        1,302    n/a
       Accounts payable              13,747     13,766          (19)  -0.1%
       Accrued expenses              17,969     19,389       (1,420)  -7.3%
       Income taxes payable           4,393      4,157          236    5.7%
       Other current liabilities      9,327      9,634         (307)  -3.2%
     Total current liabilities       48,038     52,293       (4,255)  -8.1%
 
     Long-term debt                  22,847     24,730       (1,883)  -7.6%
     Deferred income taxes           22,996     21,689        1,307    6.0%
     Other liabilities               22,368     20,480        1,888    9.2%
 
     Total liabilities              116,249    119,192       (2,943)  -2.5%
 
     Stockholders' Equity:
     Common stock, $1 par value      15,000     15,000            0    0.0%
     Capital surplus                 50,682     51,506         (824)  -1.6%
     Retained earnings              419,783    411,866        7,917    1.9%
     Unearned portion of
       restricted stock                 (18)       (22)           4  -18.2%
     Accumulated other
       comprehensive income          (7,852)    (5,626)      (2,226)  39.6%
       Total                        477,595    472,724        4,871    1.0%
     Less, treasury stock at cost   181,047    182,500       (1,453)  -0.8%
     Total stockholders' equity     296,548    290,224        6,324    2.2%
 
     Total liabilities and
       stockholders' equity        $412,797   $409,416       $3,381    0.8%
 
 
     Business Segment Commentary
 
                  CURTISS-WRIGHT CORPORATION and SUBSIDIARIES
                              SEGMENT INFORMATION
                                  (UNAUDITED)
                                 (In thousands)
 
                                       Three Months Ended
                                            March 31,             Change
                                        2001        2000        $        %
 
     Sales:
     Motion Control                   $29,957      $27,344   $2,613     9.6%
     Metal Treatment                   27,872       28,224     (352)   -1.3%
     Flow Control                      22,088       26,669   (4,581)  -17.2%
 
     Total Segments                   $79,917      $82,237  $(2,320)   -2.8%
 
 
     Operating Income:
     Motion Control                    $4,583       $1,409   $3,174   225.3%
     Metal Treatment                    5,463        6,832   (1,369)  -20.0%
     Flow Control                       1,219        2,545   (1,326)  -52.1%
 
     Total Segments                   $11,265      $10,786     $479     4.4%
     Corporate and other                    0        1,303   (1,303)   -100%
 
     Total operating income           $11,265      $12,089    $(824)   -6.8%
 
     Operating Margins:
     Motion Control                      15.3%         5.2%       -       -
     Metal Treatment                     19.6%        24.2%       -       -
     Flow Control                         5.5%         9.5%       -       -
 
     Total Curtiss-Wright                14.1%        13.1%       -       -
 
     Motion Control
     Sales in the first quarter of 2001 showed a 9.6% increase from 2000
 partially due to shipments of production hardware for the F-22 Raptor tactical
 fighter and light armored vehicles.  The increase in operating margin to 15.3%
 in the first quarter from 5.2% in the same period in 2000 was principally due
 to increased effectiveness of lean manufacturing initiatives.  The component
 overhaul and repair business is still experiencing sluggish demand.
     The outlook for commercial OEM product sales is that sales will increase
 for the balance of the year.
 
     Metal Treatment
     The first quarter's decline in sales from the same period last year was
 the result of unfavorable foreign currency exchange rate movements which
 adversely impacted sales by approximately $1,023,000.  These foreign currency
 exchange rate movements negatively affected operating income by approximately
 $465,000 when compared to the rates that existed in the first quarter of 2000.
     The Metal Treatment business segment experienced softness in
 automotive/truck and agricultural equipment markets. These weaknesses were
 offset by improvements in the oil and gas market as well as the aerospace
 sector, which represents about 50% of the business activity for Metal
 Treatment.  Operating margins normalized for the adverse influence of foreign
 currency exchange rates would have been 21.3% for the first quarter 2001, as
 compared with 24.2% for the first quarter of 2000 and 21.9% for the fourth
 quarter of 2000.  This year's performance was affected by increases in the
 cost of natural gas for heat-treating operations, transition costs associated
 with an acquisition completed in December of last year, start-up costs for a
 new facility in Indianapolis, and lower volume at some of the Company's
 facilities that had a high concentration of business related to the automotive
 sector.
 
     Flow Control
     Reduced sales during the first quarter of 2001 versus the same period last
 year were due to lower sales to the Asian market. The lower sales are
 primarily the result of delay in the timing of new construction programs for
 nuclear power plants and delays in the release of nuclear Navy contracts.  The
 Company expects the Navy business to be made up during the course of this
 year.  Based on contractual delivery schedules to the Navy, the Flow Control
 segment is anticipated to have strong sales for the remainder of the year.  It
 is expected that sales to the Navy should exceed last year's sales by 15%. The
 business segment was also affected by the slowdown in the automotive and heavy
 truck markets, offset by very strong demand for product going to the
 petrochemical and oil and gas markets for maintenance, repair and overhaul
 applications.
     Curtiss-Wright Corporation is a diversified provider of highly engineered
 products and services to the Motion Control, Flow Control and Metal Treatment
 industries.  The firm employs approximately 2,245 people.  More information on
 Curtiss-Wright can be found on the Internet at www.curtisswright.com .
     Forward-looking statements in this release related to expectations of
 continued high revenues related to new commercial aircraft and continued sales
 and income growth, and are made pursuant to the Safe Harbor provisions of the
 Private Securities Litigation Reform Act of 1995.  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 need for additional machinery and equipment and/or in
 the cost for the expansion of the Corporation's operations; changes in the
 competitive marketplace and/or customer requirements; an inability to perform
 customer contracts at anticipated cost levels; and other factors that
 generally affect the business of aerospace, defense, marine, and industrial
 companies.  Please refer to the Company's SEC filings under the Securities and
 Exchange Act of 1934, as amended, for further information.
 
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SOURCE Curtiss-Wright Corporation
    LYNDHURST, N.J., April 26 /PRNewswire/ -- Curtiss-Wright Corporation
 (NYSE:   CW) announced today its financial results for the first quarter of
 2001.  The first quarter's highlights are as follows:
 
     * Net earnings of $9,219,000 or $0.90 per diluted share, represent an
       increase of 16% over the normalized net earnings for the first quarter
       of 2000 of $7,977,000 or $0.79 per diluted share.
 
     * Operating income for the first quarter of 2001 totaled $11,265,000 as
       compared with normalized operating income of $10,042,000 for the same
       period last year, a 12% increase.
 
     * Sales for the first quarter in 2001 declined 3% to $79,917,000 from
       $82,237,000 for the same period last year.
 
     Last year's first quarter contained some unusual items; the net effect of
 which had a favorable impact of $2,047,000 on pre-tax earnings and $1,252,000
 on after-tax earnings.   Excluding the unusual items, net earnings in the
 first quarter of 2000 would have been $7,977,000, or $0.79 per diluted share.
 Relative foreign currency exchange rates in the first quarter of 2001 as
 compared to last year negatively affected sales by approximately $1,261,000,
 and operating income by approximately $520,000.
     Martin Benante, Chairman and CEO of Curtiss-Wright, stated, "We are
 pleased to report higher operating income for the first quarter of 2001 over
 normalized operating income for the same period last year.  We were able to
 achieve this increase despite the adverse impacts of foreign currency exchange
 rates on sales and profits and some weakness in a few of our served markets
 which further reduced revenues.  Benefits from our cost-reduction programs
 offset our lower sales volume."
     Mr. Benante added,  "We have seen some of the benefits of the Company's
 market diversification in the first quarter as improved volume in our
 aerospace and petrochemical markets offset declines for our automotive-related
 activities.  Based upon current delivery schedules in most of our markets, we
 expect stronger sales for our OEM products and services for the balance of the
 year. Also this quarter we made a small but strategic acquisition of Solent &
 Pratt, an English valve manufacturer that gave us a complementary product line
 and a very strong distribution network in the European petrochemical valve
 market.  We also made some other strategic changes in the way we address the
 petrochemical flow control market.  We made a number of changes in the firms
 that distribute our products to this market. We have sold our distribution
 business in Western Canada to a well-position distribution firm in the area.
 These changes should increase our volume and improve our cost structure.  We
 also rolled out our business-to-business initiative to have our distributors
 order and monitor their order status over the Internet."
     Provided below are the financial results for the first quarter of 2001 and
 2000:
 
                  CURTISS-WRIGHT CORPORATION and SUBSIDIARIES
                      CONSOLIDATED STATEMENTS OF EARNINGS
                                  (UNAUDITED)
                      (In thousands except per share data)
 
 
                                    Three Months Ended
                                         March 31,             Change
                                      2001     2000          $        %
 
     Net sales                      $79,917  $82,237     $(2,320)   -2.8%
     Cost of sales                   49,906   53,308      (3,402)   -6.4%
     Gross profit                    30,011   28,929       1,082     3.7%
 
     Research and development costs     897    1,388        (491)  -35.4%
     Selling expenses                 4,593    4,756        (163)   -3.4%
     General and administrative
       expenses                      13,338   10,579       2,759    26.1%
     Environmental remediation
       and administration
       expenses, net of recovery        (82)     117        (199) -170.1%
 
     Operating income                11,265   12,089        (824)   -6.8%
 
     Investment income, net             843      505         338    66.9%
     Rental income, net                 743    1,160        (417)  -35.9%
     Pension income, net              2,344    1,744         600    34.4%
     Other expense, net                (167)     (32)       (135)  421.9%
     Interest income (expense)         (249)    (376)        127   -33.8%
 
     Earnings before income taxes    14,779   15,090        (311)   -2.1%
     Provision for income taxes       5,560    5,861        (301)   -5.1%
 
     Net earnings                    $9,219   $9,229        $(10)   -0.1%
 
     Basic earnings per
       common share                   $0.92    $0.92           -       -
     Diluted earnings per
       common share                   $0.90    $0.91           -       -
 
     Dividends per common share       $0.13    $0.13           -       -
 
     Weighted average shares
       outstanding
       Basic:                        10,039   10,035           -       -
       Diluted:                      10,212   10,132           -       -
 
 
                  CURTISS-WRIGHT CORPORATION and SUBSIDIARIES
                          CONSOLIDATED BALANCE SHEETS
                                 (In thousands)
 
                                  (UNAUDITED)
 
                                    March 31, December 31,       Change
                                      2001       2000          $        %
     Assets:
     Current assets:
       Cash and cash equivalents    $12,635     $8,692       $3,943   45.4%
       Short-term investments        59,578     62,766       (3,188)  -5.1%
       Receivables, net              65,290     67,815       (2,525)  -3.7%
       Inventories                   48,390     50,002       (1,612)  -3.2%
       Deferred tax assets            9,431      9,378           53    0.6%
       Other current assets           4,186      3,419          767   22.4%
     Total current assets           199,510    202,072       (2,562)  -1.3%
 
     Property, plant and
       equipment, at cost           253,249    246,896        6,353    2.6%
     Less: accumulated depreciation 158,005    156,443        1,562    1.0%
     Property, plant and
       equipment, net                95,244     90,453        4,791    5.3%
 
     Prepaid pension costs           62,106     59,765        2,341    3.9%
     Goodwill, net                   46,704     47,543         (839)  -1.8%
     Other assets                     9,233      9,583         (350)  -3.7%
 
     Total assets                  $412,797   $409,416       $3,381    0.8%
 
     Liabilities:
     Current Liabilities:
       Current portion of
         long-term debt              $1,300     $5,347      $(4,047) -75.7%
       Dividends payable              1,302          0        1,302    n/a
       Accounts payable              13,747     13,766          (19)  -0.1%
       Accrued expenses              17,969     19,389       (1,420)  -7.3%
       Income taxes payable           4,393      4,157          236    5.7%
       Other current liabilities      9,327      9,634         (307)  -3.2%
     Total current liabilities       48,038     52,293       (4,255)  -8.1%
 
     Long-term debt                  22,847     24,730       (1,883)  -7.6%
     Deferred income taxes           22,996     21,689        1,307    6.0%
     Other liabilities               22,368     20,480        1,888    9.2%
 
     Total liabilities              116,249    119,192       (2,943)  -2.5%
 
     Stockholders' Equity:
     Common stock, $1 par value      15,000     15,000            0    0.0%
     Capital surplus                 50,682     51,506         (824)  -1.6%
     Retained earnings              419,783    411,866        7,917    1.9%
     Unearned portion of
       restricted stock                 (18)       (22)           4  -18.2%
     Accumulated other
       comprehensive income          (7,852)    (5,626)      (2,226)  39.6%
       Total                        477,595    472,724        4,871    1.0%
     Less, treasury stock at cost   181,047    182,500       (1,453)  -0.8%
     Total stockholders' equity     296,548    290,224        6,324    2.2%
 
     Total liabilities and
       stockholders' equity        $412,797   $409,416       $3,381    0.8%
 
 
     Business Segment Commentary
 
                  CURTISS-WRIGHT CORPORATION and SUBSIDIARIES
                              SEGMENT INFORMATION
                                  (UNAUDITED)
                                 (In thousands)
 
                                       Three Months Ended
                                            March 31,             Change
                                        2001        2000        $        %
 
     Sales:
     Motion Control                   $29,957      $27,344   $2,613     9.6%
     Metal Treatment                   27,872       28,224     (352)   -1.3%
     Flow Control                      22,088       26,669   (4,581)  -17.2%
 
     Total Segments                   $79,917      $82,237  $(2,320)   -2.8%
 
 
     Operating Income:
     Motion Control                    $4,583       $1,409   $3,174   225.3%
     Metal Treatment                    5,463        6,832   (1,369)  -20.0%
     Flow Control                       1,219        2,545   (1,326)  -52.1%
 
     Total Segments                   $11,265      $10,786     $479     4.4%
     Corporate and other                    0        1,303   (1,303)   -100%
 
     Total operating income           $11,265      $12,089    $(824)   -6.8%
 
     Operating Margins:
     Motion Control                      15.3%         5.2%       -       -
     Metal Treatment                     19.6%        24.2%       -       -
     Flow Control                         5.5%         9.5%       -       -
 
     Total Curtiss-Wright                14.1%        13.1%       -       -
 
     Motion Control
     Sales in the first quarter of 2001 showed a 9.6% increase from 2000
 partially due to shipments of production hardware for the F-22 Raptor tactical
 fighter and light armored vehicles.  The increase in operating margin to 15.3%
 in the first quarter from 5.2% in the same period in 2000 was principally due
 to increased effectiveness of lean manufacturing initiatives.  The component
 overhaul and repair business is still experiencing sluggish demand.
     The outlook for commercial OEM product sales is that sales will increase
 for the balance of the year.
 
     Metal Treatment
     The first quarter's decline in sales from the same period last year was
 the result of unfavorable foreign currency exchange rate movements which
 adversely impacted sales by approximately $1,023,000.  These foreign currency
 exchange rate movements negatively affected operating income by approximately
 $465,000 when compared to the rates that existed in the first quarter of 2000.
     The Metal Treatment business segment experienced softness in
 automotive/truck and agricultural equipment markets. These weaknesses were
 offset by improvements in the oil and gas market as well as the aerospace
 sector, which represents about 50% of the business activity for Metal
 Treatment.  Operating margins normalized for the adverse influence of foreign
 currency exchange rates would have been 21.3% for the first quarter 2001, as
 compared with 24.2% for the first quarter of 2000 and 21.9% for the fourth
 quarter of 2000.  This year's performance was affected by increases in the
 cost of natural gas for heat-treating operations, transition costs associated
 with an acquisition completed in December of last year, start-up costs for a
 new facility in Indianapolis, and lower volume at some of the Company's
 facilities that had a high concentration of business related to the automotive
 sector.
 
     Flow Control
     Reduced sales during the first quarter of 2001 versus the same period last
 year were due to lower sales to the Asian market. The lower sales are
 primarily the result of delay in the timing of new construction programs for
 nuclear power plants and delays in the release of nuclear Navy contracts.  The
 Company expects the Navy business to be made up during the course of this
 year.  Based on contractual delivery schedules to the Navy, the Flow Control
 segment is anticipated to have strong sales for the remainder of the year.  It
 is expected that sales to the Navy should exceed last year's sales by 15%. The
 business segment was also affected by the slowdown in the automotive and heavy
 truck markets, offset by very strong demand for product going to the
 petrochemical and oil and gas markets for maintenance, repair and overhaul
 applications.
     Curtiss-Wright Corporation is a diversified provider of highly engineered
 products and services to the Motion Control, Flow Control and Metal Treatment
 industries.  The firm employs approximately 2,245 people.  More information on
 Curtiss-Wright can be found on the Internet at www.curtisswright.com .
     Forward-looking statements in this release related to expectations of
 continued high revenues related to new commercial aircraft and continued sales
 and income growth, and are made pursuant to the Safe Harbor provisions of the
 Private Securities Litigation Reform Act of 1995.  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 need for additional machinery and equipment and/or in
 the cost for the expansion of the Corporation's operations; changes in the
 competitive marketplace and/or customer requirements; an inability to perform
 customer contracts at anticipated cost levels; and other factors that
 generally affect the business of aerospace, defense, marine, and industrial
 companies.  Please refer to the Company's SEC filings under the Securities and
 Exchange Act of 1934, as amended, for further information.
 
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 SOURCE  Curtiss-Wright Corporation