Curtiss-Wright reports first quarter 2019 financial results
Published by John Williams,
Curtiss-Wright has announced the acquisition of Tactical Communications Group, LLC (TCG), a leading supplier of tactical data link software solutions for critical military communication systems.
In addition to the reported results, the company has included an adjusted view that excludes first year purchase accounting costs associated with this acquisition, as well as one-time transition and IT security costs associated with the relocation of the DRG business.
- Reported diluted earnings per share (EPS) of US$1.29, with adjusted diluted EPS of US$1.30 (defined below), up 32% and 33%, respectively, compared with the prior year.
- Net sales of US$578 million, up 6%.
- Reported and adjusted operating income of US$72 million, up 12%.
- Reported and adjusted operating margin of 12.5%, up 70 basis points.
- New orders of US$747 million increased 23%, led by strong naval defense orders, while Backlog of US$2.2 billion increased 7% from 31 December 2018.
- Share repurchases of approximately US$12 million.
Full-year 2019 business outlook (compared with adjusted full-year 2018)
- Increased adjusted diluted EPS guidance by US$0.20 to new range of US$7.00 to US$7.15, up 10–12%, due to expectations for higher sales and profitability in the commercial/industrial segment, contribution from the TCG acquisition, exclusion of one-time costs associated with the relocation of the DRG business, and a slight reduction to share count.
- Increased sales guidance to new range of 4–6% growth (previously up 3–5%) and Adjusted operating income guidance to new range of 6–9% growth (previously up 4–6%).
- Increased adjusted operating margin guidance to new range of 16.2% to 16.3%, up 40–50 basis points (previously 15.9% to 16.0%, up 10–20 basis points).
- Increased Reported free cash flow by US$10 million to new range of US$310 to US$320 million and Adjusted free cash flow range to new range of US$330 to US$340 million, excluding a US$20 million capital investment in the power segment related to construction of and move to a new naval facility for the DRG business, generating a free cash flow conversion rate of approximately 110%.
“We delivered a strong start to the year, allowing us to increase our full-year guidance for sales, operating income, operating margin, diluted EPS and free cash flow,” said David Adams, chairman and CEO of Curtiss-Wright Corporation. “First quarter Adjusted diluted EPS was US$1.30, as we delivered solid 6% top-line growth driven by strong defence market sales, as well as improved profitability led by a strong performance in the Power segment. Our results also reflected solid new order growth of 23%, primarily based on the timing of naval defence orders, which provides increased confidence in achieving our overall sales expectations.”
“Looking ahead to the remainder of 2019, we anticipate steady, sequential improvement in operating margin, diluted EPS and free cash flow. Further, the recently completed acquisition of TCG supports our objectives for long-term profitable growth and strong free cash flow generation. Overall, we continue to exe-cute on our long-term strategy to deliver top-quartile financial performance, which will enable us to deliver significant value for our shareholders.”
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Read the article online at: https://www.worldfertilizer.com/special-reports/10052019/curtiss-wright-reports-first-quarter-2019-financial-results/
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