Curtiss Wright Corp (CW) SEC Filing 10-Q Quarterly report for the period ending Sunday, September 30, 2018

Curtiss-Wright Reports Third Quarter 2018 Financial Results; Raises Full-Year Operating Margin, EPS and Free Cash Flow Guidance

DAVIDSON, N.C.--(BUSINESS WIRE)--October 30, 2018--Curtiss-Wright Corporation (NYSE: CW) reports financial results for the third quarter ended September 30, 2018.

Beginning in the second quarter of 2018, the Company elected to change the presentation of its financials and guidance to include an Adjusted (non-GAAP) view that excludes first year purchase accounting costs associated with its acquisitions.

Third Quarter 2018 Highlights

• Reported diluted earnings per share (EPS) of $1.68, with Adjusted diluted EPS of $1.70, up 19% compared with the prior year;
• Net sales of $595 million, up 5%, including 2% organic growth (defined below);
• Reported operating income of $97 million, with Adjusted operating income of $98 million, up 6%;
• Reported operating margin of 16.3%, with Adjusted operating margin of 16.5%, up 20 basis points;
• Free cash flow of $62 million, down 31%;
• New orders of $514 million, down 1%; and
• Share repurchases of approximately $33 million.

Full-Year 2018 Business Outlook

• Full-year 2018 Adjusted guidance reflects higher sales (now up 7-9%), operating income (up 11-14%), operating margin of 15.3% to 15.5% (now up 60-80 bps) and diluted EPS (now up 23-26%), compared with Adjusted 2017 financial results;
• Increased full-year 2018 Adjusted diluted EPS guidance by $0.10 to new range of $6.10 to $6.25, compared with prior range of $6.00 to $6.15, reflecting improved profitability in the Defense and Power segments, as well as expectations for a lower tax rate and share count; and
• Increased Reported free cash flow by $10 million to new range of $260 to $280 million and Adjusted free cash flow to a new range of $310 to $330 million, which excludes a $50 million voluntary pension contribution made in the first quarter of 2018.

“Our third quarter results exceeded our expectations, as we generated solid 5% top-line growth, led by a better than expected performance in the Power segment,” said David C. Adams, Chairman and CEO of Curtiss-Wright Corporation. “As a result, we delivered a strong Adjusted operating margin of 16.5% and Adjusted diluted EPS of $1.70.”