Delaware
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13-0612970
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(State or other jurisdiction of incorporation or organization)
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(I.R.S. Employer Identification No.)
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10 Waterview Boulevard
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||
Parsippany, New Jersey
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07054
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(Address of principal executive offices)
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(Zip Code)
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Large accelerated filer
x
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Accelerated filer
o
|
|
Non-accelerated filer
o
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(Do not check if a smaller reporting company)
|
Smaller reporting company
o
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PAGE
|
|||
PART I – FINANCIAL INFORMATION
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|||
Item 1.
|
Financial Statements (Unaudited):
|
||
3
|
|||
4
|
|||
5
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|||
6
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|||
7
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|||
8 - 19
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Item 2.
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20 -28
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Item 3.
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29
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||
Item 4.
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29
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||
PART II – OTHER INFORMATION
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|||
Item 1.
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30
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||
Item 1A.
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Risk Factors
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30
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Item 2.
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Unregistered Sales of Equity Securities and Use of Proceeds
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30
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Item 4.
|
Mine Safety Disclosures
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30
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Item 5.
|
Other Information
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31
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Item 6.
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Exhibits
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32
|
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33
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Three Months Ended
|
|||||||
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March 31,
|
|||||||
|
2012
|
2011
|
||||||
Net sales
|
$ | 501,661 | $ | 452,931 | ||||
Cost of sales
|
342,387 | 307,028 | ||||||
Gross profit
|
159,274 | 145,903 | ||||||
|
||||||||
Research and development expenses
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15,347 | 13,597 | ||||||
Selling expenses
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32,481 | 29,223 | ||||||
General and administrative expenses
|
75,887 | 63,892 | ||||||
Operating income
|
35,559 | 39,191 | ||||||
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||||||||
Interest expense
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(6,482 | ) | (5,121 | ) | ||||
Other income, net
|
102 | 52 | ||||||
|
||||||||
Earnings from continuing operations before income taxes
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29,179 | 34,122 | ||||||
Provision for income taxes
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9,337 | 11,155 | ||||||
Earnings from continuing operations
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19,842 | 22,967 | ||||||
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||||||||
Discontinued operations, net of taxes
|
||||||||
Earnings from discontinued operations
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3,059 | 1,549 | ||||||
Gain on divestiture
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18,411 | - | ||||||
Earnings from discontinued operations
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21,470 | 1,549 | ||||||
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||||||||
Net earnings
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$ | 41,312 | $ | 24,516 | ||||
|
||||||||
Basic earnings per share
|
||||||||
Earnings from continuing operations
|
$ | 0.42 | $ | 0.50 | ||||
Earnings from discontinued operations
|
0.46 | 0.03 | ||||||
Total
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$ | 0.88 | $ | 0.53 | ||||
|
||||||||
Diluted earnings per share
|
||||||||
Earnings from continuing operations
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$ | 0.42 | $ | 0.49 | ||||
Earnings from discontinued operations
|
0.45 | 0.03 | ||||||
Total
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$ | 0.87 | $ | 0.52 | ||||
|
||||||||
Dividends per share
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$ | 0.08 | $ | 0.08 | ||||
|
||||||||
Weighted-average shares outstanding:
|
||||||||
Basic
|
46,687 | 46,195 | ||||||
Diluted
|
47,571 | 46,974 | ||||||
|
||||||||
See notes to condensed consolidated financial statements
|
|
Three Months Ended
|
|||||||
|
March 31,
|
|||||||
|
2012
|
2011
|
||||||
Net earnings
|
$ | 41,312 | $ | 24,516 | ||||
Other comprehensive income
|
||||||||
Foreign currency translation
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$ | 19,769 | $ | 17,694 | ||||
Pension and postretirement adjustments
|
1,454 | 471 | ||||||
Other comprehensive income, net of tax
|
21,223 | 18,165 | ||||||
Comprehensive income
|
$ | 62,535 | $ | 42,681 | ||||
|
||||||||
See notes to condensed consolidated financial statements
|
|
March 31,
|
December 31,
|
||||||
|
2012
|
2011
|
||||||
Assets
|
|
|
||||||
Current assets:
|
|
|
||||||
Cash and cash equivalents
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$ | 231,064 | $ | 194,387 | ||||
Receivables, net
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581,991 | 556,026 | ||||||
Inventories, net
|
342,741 | 320,633 | ||||||
Deferred tax assets, net
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53,877 | 54,275 | ||||||
Other current assets
|
39,738 | 41,813 | ||||||
Total current assets
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1,249,411 | 1,167,134 | ||||||
Property, plant, and equipment, net
|
440,545 | 443,555 | ||||||
Goodwill
|
763,960 | 759,442 | ||||||
Other intangible assets, net
|
257,844 | 261,448 | ||||||
Deferred tax assets, net
|
12,615 | 12,137 | ||||||
Other assets
|
9,350 | 9,121 | ||||||
Total assets
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$ | 2,733,725 | $ | 2,652,837 | ||||
|
||||||||
Liabilities
|
||||||||
Current liabilities:
|
||||||||
Current portion of long-term and short-term debt
|
$ | 2,466 | $ | 2,502 | ||||
Accounts payable
|
132,813 | 150,281 | ||||||
Dividends payable
|
3,757 | - | ||||||
Accrued expenses
|
104,673 | 105,196 | ||||||
Income taxes payable
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17,752 | 4,161 | ||||||
Deferred revenue
|
217,804 | 200,268 | ||||||
Other current liabilities
|
41,942 | 42,976 | ||||||
Total current liabilities
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521,207 | 505,384 | ||||||
Long-term debt
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571,186 | 583,928 | ||||||
Deferred tax liabilities, net
|
25,575 | 24,980 | ||||||
Accrued pension and other postretirement benefit costs
|
233,397 | 232,794 | ||||||
Long-term portion of environmental reserves
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19,978 | 19,067 | ||||||
Other liabilities
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62,850 | 57,645 | ||||||
Total liabilities
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1,434,193 | 1,423,798 | ||||||
Contingencies and commitments (Note 14)
|
||||||||
|
||||||||
Stockholders' Equity
|
||||||||
Common stock, $1 par value
|
49,021 | 48,879 | ||||||
Additional paid in capital
|
144,902 | 143,192 | ||||||
Retained earnings
|
1,225,544 | 1,187,989 | ||||||
Accumulated other comprehensive loss
|
(43,908 | ) | (65,131 | ) | ||||
|
1,375,559 | 1,314,929 | ||||||
Less: Cost of treasury stock
|
(76,027 | ) | (85,890 | ) | ||||
Total stockholders' equity
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1,299,532 | 1,229,039 | ||||||
Total liabilities and stockholders' equity
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$ | 2,733,725 | $ | 2,652,837 | ||||
|
||||||||
See notes to condensed consolidated financial statements
|
|
Three Months Ended
|
|||||||||
|
|
March 31,
|
||||||||
|
2012
|
2011
|
||||||||
Cash flows from operating activities:
|
|
|
||||||||
Net earnings
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$ | 41,312 | $ | 24,516 | ||||||
Adjustments to reconcile net earnings to net cash used for operating activities:
|
||||||||||
Depreciation and amortization
|
23,534 | 20,522 | ||||||||
Gain on divestiture
|
(29,583 | ) | - | |||||||
Net gain on sales and disposals of long-lived assets
|
(669 | ) | (46 | ) | ||||||
Deferred income taxes
|
(1,373 | ) | (2,743 | ) | ||||||
Share-based compensation
|
2,681 | 2,793 | ||||||||
Change in operating assets and liabilities, net of businesses acquired:
|
||||||||||
Accounts receivable, net
|
(27,999 | ) | (35,100 | ) | ||||||
Inventories, net
|
(19,931 | ) | (22,551 | ) | ||||||
Progress payments
|
(398 | ) | (407 | ) | ||||||
Accounts payable and accrued expenses
|
(29,574 | ) | (34,207 | ) | ||||||
Deferred revenue
|
17,536 | 5,581 | ||||||||
Income taxes payable
|
19,052 | 7,745 | ||||||||
Net pension and postretirement liabilities
|
2,722 | (10,337 | ) | |||||||
Other current and long-term assets and liabilities
|
(2,029 | ) | 1,449 | |||||||
Total adjustments
|
(46,031 | ) | (67,301 | ) | ||||||
Net cash used for operating activities
|
(4,719 | ) | (42,785 | ) | ||||||
Cash flows from investing activities:
|
||||||||||
Proceeds from sales and disposals of long-lived assets
|
- | 118 | ||||||||
Proceeds from divestiture
|
51,225 | - | ||||||||
Acquisitions of intangible assets
|
(1,929 | ) | - | |||||||
Additions to property, plant, and equipment
|
(20,167 | ) | (19,245 | ) | ||||||
Acquisition of businesses, net of cash acquired
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- | (13,250 | ) | |||||||
Net cash provided by (used for) investing activities
|
29,129 | (32,377 | ) | |||||||
Cash flows from financing activities:
|
||||||||||
Borrowings on debt
|
- | 273,500 | ||||||||
Principal payments on debt
|
(25 | ) | (220,524 | ) | ||||||
Proceeds from exercise of stock options
|
8,340 | 5,895 | ||||||||
Excess tax benefits from share-based compensation
|
20 | 3 | ||||||||
Net cash provided by financing activities
|
8,335 | 58,874 | ||||||||
Effect of exchange-rate changes on cash
|
3,932 | 135 | ||||||||
Net increase (decrease) in cash and cash equivalents
|
36,677 | (16,153 | ) | |||||||
Cash and cash equivalents at beginning of period
|
194,387 | 68,119 | ||||||||
Cash and cash equivalents at end of period
|
$ | 231,064 | $ | 51,966 | ||||||
Supplemental disclosure of non-cash investing activities:
|
||||||||||
Capital expenditures incurred but not yet paid
|
$ | 4,223 | $ | 746 | ||||||
|
||||||||||
See notes to condensed consolidated financial statements
|
|
Common Stock
|
Additional Paid in Capital
|
Retained Earnings
|
Accumulated Other Comprehensive Loss
|
Treasury Stock
|
|||||||||||||||
|
|
|
|
|
|
|||||||||||||||
December 31, 2010
|
$ | 48,558 | $ | 130,093 | $ | 1,072,459 | $ | (2,813 | ) | $ | (88,194 | ) | ||||||||
Net earnings
|
- | - | 130,423 | - | - | |||||||||||||||
Other comprehensive income, net
|
- | - | - | (62,318 | ) | - | ||||||||||||||
Dividends paid
|
- | - | (14,893 | ) | - | - | ||||||||||||||
Stock options exercised, net
|
321 | 5,312 | - | - | 8,648 | |||||||||||||||
Share-based compensation
|
- | 8,046 | - | - | 1,575 | |||||||||||||||
Repurchase of common stock
|
- | - | - | - | (8,178 | ) | ||||||||||||||
Other
|
- | (259 | ) | - | - | 259 | ||||||||||||||
December 31, 2011
|
$ | 48,879 | $ | 143,192 | $ | 1,187,989 | $ | (65,131 | ) | $ | (85,890 | ) | ||||||||
Net earnings
|
- | - | 41,312 | - | - | |||||||||||||||
Other comprehensive income, net
|
- | - | - | 21,223 | - | |||||||||||||||
Dividends declared
|
- | - | (3,757 | ) | - | - | ||||||||||||||
Stock options exercised, net
|
142 | 3,406 | - | - | 5,486 | |||||||||||||||
Share-based compensation
|
- | (1,306 | ) | - | - | 3,987 | ||||||||||||||
Repurchase of common stock
|
- | - | - | - | - | |||||||||||||||
Other
|
- | (390 | ) | - | - | 390 | ||||||||||||||
March 31, 2012
|
$ | 49,021 | $ | 144,902 | $ | 1,225,544 | $ | (43,908 | ) | $ | (76,027 | ) | ||||||||
|
||||||||||||||||||||
|
||||||||||||||||||||
See notes to condensed consolidated financial statements
|
|
(In thousands)
|
|||||||
|
Three Months Ended
|
|||||||
|
March 31,
|
|||||||
|
2012
|
2011
|
||||||
Net sales
|
$ | 10,785 | $ | 8,919 | ||||
Earnings from discontinued operations before income taxes
|
4,929 | 2,496 | ||||||
Provision for income taxes
|
(1,870 | ) | (947 | ) | ||||
Gain on divestiture, net of taxes of $11,172
|
18,411 | - | ||||||
Earnings from discontinued operations
|
$ | 21,470 | $ | 1,549 |
|
(In thousands)
|
|||||||
|
March 31,
|
December 31,
|
||||||
|
2012
|
2011
|
||||||
Billed receivables:
|
|
|
||||||
Trade and other receivables
|
$ | 389,866 | $ | 369,109 | ||||
Less: Allowance for doubtful accounts
|
(6,334 | ) | (6,880 | ) | ||||
Net billed receivables
|
383,532 | 362,229 | ||||||
Unbilled receivables:
|
||||||||
Recoverable costs and estimated earnings not billed
|
232,272 | 227,957 | ||||||
Less: Progress payments applied
|
(33,813 | ) | (34,160 | ) | ||||
Net unbilled receivables
|
198,459 | 193,797 | ||||||
Receivables, net
|
$ | 581,991 | $ | 556,026 | ||||
|
|
(In thousands)
|
|||||||
|
March 31,
|
December 31,
|
||||||
|
2012
|
2011
|
||||||
Raw materials
|
$ | 183,261 | $ | 168,619 | ||||
Work-in-process
|
99,424 | 97,420 | ||||||
Finished goods and component parts
|
80,812 | 81,544 | ||||||
Inventoried costs related to U.S. Government and other long-term contracts
|
40,868 | 35,347 | ||||||
Gross inventories
|
404,365 | 382,930 | ||||||
Less: Inventory reserves
|
(47,848 | ) | (48,547 | ) | ||||
Progress payments applied, principally related to long-term contracts
|
(13,776 | ) | (13,750 | ) | ||||
Inventories, net
|
$ | 342,741 | $ | 320,633 | ||||
|
|
(In thousands)
|
|||||||||||||||
|
Flow Control
|
Motion Control
|
Metal Treatment
|
Consolidated
|
||||||||||||
December 31, 2011
|
$ | 328,219 | $ | 385,784 | $ | 45,439 | $ | 759,442 | ||||||||
Divestitures
|
- | - | (3,649 | ) | (3,649 | ) | ||||||||||
Goodwill adjustments
|
8 | 40 | - | 48 | ||||||||||||
Foreign currency translation adjustment
|
1,321 | 6,676 | 122 | 8,119 | ||||||||||||
March 31, 2012
|
$ | 329,548 | $ | 392,500 | $ | 41,912 | $ | 763,960 |
|
(In thousands)
|
|||||||||||
March 31, 2012
|
Gross
|
Accumulated Amortization
|
Net
|
|||||||||
Technology
|
$ | 157,128 | $ | (68,163 | ) | $ | 88,965 | |||||
Customer related intangibles
|
222,571 | (82,764 | ) | 139,807 | ||||||||
Other intangible assets
|
44,814 | (15,742 | ) | 29,072 | ||||||||
Total
|
$ | 424,513 | $ | (166,669 | ) | $ | 257,844 | |||||
|
||||||||||||
|
(In thousands)
|
|||||||||||
December 31, 2011
|
Gross
|
Accumulated Amortization
|
Net
|
|||||||||
Technology
|
$ | 155,406 | $ | (65,291 | ) | $ | 90,115 | |||||
Customer related intangibles
|
219,498 | (77,945 | ) | 141,553 | ||||||||
Other intangible assets
|
44,555 | (14,775 | ) | 29,780 | ||||||||
Total
|
$ | 419,459 | $ | (158,011 | ) | $ | 261,448 |
|
(In thousands)
|
|||||||
|
March 31,
|
December 31,
|
||||||
|
2012
|
2011
|
||||||
Assets
|
|
|
||||||
Undesignated for hedge accounting
|
|
|
||||||
Forward exchange contracts
|
$ | 1 | $ | 13 | ||||
Total asset derivatives (A)
|
$ | 1 | $ | 13 | ||||
|
||||||||
Liabilities
|
||||||||
Designated for hedge accounting
|
||||||||
Interest rate swaps
|
$ | 12,713 | $ | - | ||||
Undesignated for hedge accounting
|
||||||||
Forward exchange contracts
|
$ | 264 | $ | 356 | ||||
Total liability derivatives (B)
|
$ | 12,977 | $ | 356 |
(B)
|
|
Gain/(Loss) on Swap
|
Gain/(Loss) on Borrowings
|
||||||||||||||
|
Three Months Ended
|
Three Months Ended
|
||||||||||||||
|
March 31,
|
March 31,
|
||||||||||||||
Income Statement Classification
|
2012
|
2011
|
2012
|
2011
|
||||||||||||
Other income, net
|
$ | (12,713 | ) | $ | - | $ | 12,713 | $ | - |
|
|
|
(In thousands)
|
||||
|
|
|
Three Months Ended
|
||||
|
|
|
March 31,
|
||||
Derivatives not designated as hedging instrument
|
|
2012
|
|
|
2011
|
||
Forward exchange contracts:
|
|
|
|
|
|
|
|
|
General and administrative expenses
|
|
$976 |
|
$892 |
|
March 31,
|
December 31,
|
||||||||||||||
|
2012
|
2011
|
||||||||||||||
Carrying Value
|
Estimated Fair Value
|
Carrying Value
|
Estimated Fair Value
|
|||||||||||||
|
|
|
|
|
||||||||||||
Industrial revenue bonds, due from 2012 through 2023
|
$ | 8,843 | $ | 8,843 | $ | 9,004 | $ | 9,004 | ||||||||
5.74% Senior notes due 2013
|
125,021 | 131,861 | 125,024 | 134,982 | ||||||||||||
5.51% Senior notes due 2017
|
150,000 | 173,476 | 150,000 | 172,871 | ||||||||||||
3.84% Senior notes due 2021
|
99,452 | 99,452 | 100,000 | 101,886 | ||||||||||||
4.24% Senior notes due 2026
|
187,835 | 187,835 | 200,000 | 204,965 | ||||||||||||
Other debt
|
2,501 | 2,501 | 2,402 | 2,402 | ||||||||||||
|
$ | 573,652 | $ | 603,968 | $ | 586,430 | $ | 626,110 |
|
(In thousands)
|
|||||||
|
2012
|
2011
|
||||||
Warranty reserves at January 1,
|
$ | 16,076 | $ | 14,841 | ||||
Provision for current year sales
|
1,663 | 1,781 | ||||||
Current year claims
|
(1,269 | ) | (1,610 | ) | ||||
Change in estimates to pre-existing warranties
|
(695 | ) | (333 | ) | ||||
Foreign currency translation adjustment
|
148 | 106 | ||||||
Warranty reserves at March 31,
|
$ | 15,923 | $ | 14,785 |
|
(In thousands)
|
|||||||
|
Three Months Ended
|
|||||||
|
March 31,
|
|||||||
|
2012
|
2011
|
||||||
Service cost
|
$ | 10,155 | $ | 9,315 | ||||
Interest cost
|
6,455 | 6,542 | ||||||
Expected return on plan assets
|
(8,414 | ) | (7,967 | ) | ||||
Amortization of:
|
||||||||
Prior service cost
|
301 | 299 | ||||||
Unrecognized actuarial loss
|
2,496 | 1,243 | ||||||
Net periodic benefit cost
|
$ | 10,993 | $ | 9,432 |
|
(In thousands)
|
|||||||
|
Three Months Ended
|
|||||||
|
March 31,
|
|||||||
|
2012
|
2011
|
||||||
Service cost
|
$ | 110 | $ | 94 | ||||
Interest cost
|
232 | 250 | ||||||
Amortization of:
|
||||||||
Prior service cost
|
(157 | ) | (157 | ) | ||||
Unrecognized actuarial gain
|
(180 | ) | (231 | ) | ||||
Net periodic postretirement benefit cost (income)
|
$ | 5 | $ | (44 | ) |
|
(In thousands)
|
|||||||
|
Three Months Ended
|
|||||||
|
March 31,
|
|||||||
|
2012
|
2011
|
||||||
Basic weighted-average shares outstanding
|
46,687 | 46,195 | ||||||
Dilutive effect of stock options and deferred stock compensation
|
884 | 779 | ||||||
Diluted weighted-average shares outstanding
|
47,571 | 46,974 |
|
(In thousands)
|
|||||||
|
Three Months Ended
|
|||||||
|
March 31,
|
|||||||
|
2012
|
2011
|
||||||
Net sales
|
|
|
||||||
Flow Control
|
$ | 266,791 | $ | 239,142 | ||||
Motion Control
|
168,145 | 160,270 | ||||||
Metal Treatment
|
70,089 | 54,342 | ||||||
Less: Intersegment revenues
|
(3,364 | ) | (823 | ) | ||||
Total consolidated
|
$ | 501,661 | $ | 452,931 | ||||
|
||||||||
Operating income (expense)
|
||||||||
Flow Control
|
$ | 18,527 | $ | 18,632 | ||||
Motion Control
|
12,929 | 16,286 | ||||||
Metal Treatment
|
9,856 | 7,565 | ||||||
Corporate and eliminations (1)
|
(5,753 | ) | (3,292 | ) | ||||
Total consolidated
|
$ | 35,559 | $ | 39,191 |
|
|
|
||||||
|
(In thousands)
|
|||||||
|
Three Months Ended
|
|||||||
|
March 31,
|
|||||||
|
2012
|
2011
|
||||||
Total operating income
|
$ | 35,559 | $ | 39,191 | ||||
Interest expense
|
(6,482 | ) | (5,121 | ) | ||||
Other income, net
|
102 | 52 | ||||||
Earnings from continuing operations before income taxes
|
$ | 29,179 | $ | 34,122 | ||||
|
|
(In thousands)
|
|||||||
|
March 31,
|
December 31,
|
||||||
|
2012
|
2011
|
||||||
Identifiable assets
|
|
|
||||||
Flow Control
|
$ | 1,258,981 | $ | 1,257,142 | ||||
Motion Control
|
1,031,897 | 1,034,225 | ||||||
Metal Treatment
|
279,688 | 286,084 | ||||||
Corporate and Other
|
163,159 | 75,386 | ||||||
Total consolidated
|
$ | 2,733,725 | $ | 2,652,837 |
|
(In thousands)
|
|||||||||||
|
Foreign currency translation adjustments, net
|
Total pension and postretirement adjustments
|
Accumulated other comprehensive loss
|
|||||||||
December 31, 2011
|
$ | 39,768 | $ | (104,899 | ) | $ | (65,131 | ) | ||||
Current period other comprehensive income
|
19,769 | 1,454 | 21,223 | |||||||||
March 31, 2012
|
$ | 59,537 | $ | (103,445 | ) | $ | (43,908 | ) |
Consolidated Statements of Earnings
|
||||||||||||
|
(In thousands)
|
|||||||||||
|
Three Months Ended
|
|||||||||||
|
March 31,
|
|||||||||||
|
2012
|
2011
|
% change
|
|||||||||
|
|
|
|
|||||||||
Sales
|
|
|
|
|||||||||
Flow Control
|
$ | 266,791 | $ | 239,140 | 12 | % | ||||||
Motion Control
|
165,086 | 159,780 | 3 | % | ||||||||
Metal Treatment
|
69,784 | 54,011 | 29 | % | ||||||||
Total sales
|
$ | 501,661 | $ | 452,931 | 11 | % | ||||||
|
||||||||||||
Operating income
|
||||||||||||
Flow Control
|
$ | 18,527 | $ | 18,632 | (1 | %) | ||||||
Motion Control
|
12,929 | 16,286 | (21 | %) | ||||||||
Metal Treatment
|
9,856 | 7,565 | 30 | % | ||||||||
Corporate and eliminations
|
(5,753 | ) | (3,292 | ) | 75 | % | ||||||
Total operating income
|
$ | 35,559 | $ | 39,191 | (9 | %) | ||||||
|
||||||||||||
Interest expense
|
(6,482 | ) | (5,121 | ) | 27 | % | ||||||
Other income, net
|
102 | 52 | 96 | % | ||||||||
|
||||||||||||
Earnings before taxes
|
29,179 | 34,122 | (14 | %) | ||||||||
Provision for income taxes
|
(9,337 | ) | (11,155 | ) | (16 | %) | ||||||
|
||||||||||||
Net earnings from continuing operations
|
$ | 19,842 | $ | 22,967 | ||||||||
|
||||||||||||
New orders
|
$ | 515,100 | $ | 480,217 |
|
(In thousands)
|
|||||||||||
|
Three Months Ended
|
|||||||||||
|
March 31,
|
|||||||||||
|
2012
|
2011
|
% change
|
|||||||||
|
|
|
|
|||||||||
Defense markets:
|
|
|
|
|||||||||
Aerospace
|
$ | 63,823 | $ | 65,722 | (3 | %) | ||||||
Ground
|
24,032 | 27,089 | (11 | %) | ||||||||
Naval
|
89,483 | 83,378 | 7 | % | ||||||||
Other
|
8,031 | 6,752 | 19 | % | ||||||||
Total Defense
|
$ | 185,369 | $ | 182,941 | 1 | % | ||||||
|
||||||||||||
Commercial markets:
|
||||||||||||
Aerospace
|
$ | 90,425 | $ | 63,253 | 43 | % | ||||||
Oil and Gas
|
60,303 | 52,653 | 15 | % | ||||||||
Power Generation
|
98,782 | 90,753 | 9 | % | ||||||||
General Industrial
|
66,782 | 63,331 | 5 | % | ||||||||
Total Commercial
|
$ | 316,292 | $ | 269,990 | 17 | % | ||||||
|
||||||||||||
Total Curtiss-Wright
|
$ | 501,661 | $ | 452,931 | 11 | % |
|
2012 vs. 2011
|
|||||||
|
Sales
|
Operating Income
|
||||||
Organic
|
3 | % | (13 | %) | ||||
Acquisitions/divestitures
|
8 | % | 3 | % | ||||
Foreign currency
|
0 | % | 1 | % | ||||
Total
|
11 | % | (9 | %) |
|
(In thousands)
|
|||||||||||
|
Three Months Ended
|
|||||||||||
|
March 31,
|
|||||||||||
|
2012
|
2011
|
% change
|
|||||||||
Sales
|
$ | 266,791 | $ | 239,140 | 12 | % | ||||||
Operating income
|
18,527 | 18,632 | (1 | %) | ||||||||
Operating margin
|
6.9 | % | 7.8 | % |
-90 bps
|
|||||||
New orders
|
$ | 289,916 | $ | 251,640 | 15 | % |
|
2012 vs. 2011
|
|||||||
|
Sales
|
Operating Income
|
||||||
Organic
|
6 | % | (3 | %) | ||||
Acquisitions/divestitures
|
6 | % | 2 | % | ||||
Foreign currency
|
0 | % | 0 | % | ||||
Total
|
12 | % | (1 | %) |
|
(In thousands)
|
|||||||||||
|
Three Months Ended
|
|||||||||||
|
March 31,
|
|||||||||||
|
2012
|
2011
|
% change
|
|||||||||
Sales
|
$ | 165,086 | $ | 159,780 | 3 | % | ||||||
Operating income
|
12,929 | 16,286 | (21 | %) | ||||||||
Operating margin
|
7.8 | % | 10.2 | % |
-240 bps
|
|||||||
New orders
|
$ | 154,351 | $ | 173,007 | (11 | %) |
|
2012 vs. 2011
|
|||||||
|
Sales
|
Operating Income
|
||||||
Organic
|
(3 | %) | (26 | %) | ||||
Acquisitions/divestitures
|
6 | % | 3 | % | ||||
Foreign currency
|
0 | % | 2 | % | ||||
Total
|
3 | % | (21 | %) |
|
(In thousands)
|
|||||||||||
|
Three Months Ended
|
|||||||||||
|
March 31,
|
|||||||||||
|
2012
|
2011
|
% change
|
|||||||||
Sales
|
$ | 69,784 | $ | 54,011 | 29 | % | ||||||
Operating income
|
9,856 | 7,565 | 30 | % | ||||||||
Operating margin
|
14.1 | % | 14.0 | % |
10 bps
|
|||||||
New orders
|
$ | 70,833 | $ | 55,570 | 27 | % |
|
2012 vs. 2011
|
|||||||
|
Sales
|
Operating Income
|
||||||
Organic
|
9 | % | 25 | % | ||||
Acquisitions/divestitures
|
21 | % | 8 | % | ||||
Foreign currency
|
(1 | %) | (3 | %) | ||||
Total
|
29 | % | 30 | % |
Operating Activities
|
|
|
||||||
|
March 31, 2012
|
December 31, 2011
|
||||||
Working Capital
|
$ | 728,204 | $ | 661,750 | ||||
Ratio of Current Assets to Current Liabilities
|
2.4 to 1
|
2.3 to 1
|
||||||
Cash and Cash Equivalents
|
$ | 231,064 | $ | 194,387 | ||||
Days Sales Outstanding
|
62 days
|
54 days
|
||||||
Inventory Turns
|
4.3 | 4.6 |
|
Total Number of shares purchased
|
Average Price Paid per Share
|
Total Number of Shares Purchased as Part of a Publicly Announced Program
|
Maximum Number of Shares that may yet be Purchased Under the Program
|
||||||||||||
January 1 - January 31
|
- | $ | - | - | 3,458,200 | |||||||||||
February 1- February 29
|
- | - | - | 3,458,200 | ||||||||||||
March 1- March 31
|
- | - | - | 3,458,200 | ||||||||||||
For the quarter ended
|
- | $ | - | - | 3,458,200 |
Exhibit 3.1
|
Amended and Restated Certificate of Incorporation of the Registrant (incorporated by reference to the Registrant’s Registration Statement on Form 8-A/A filed May 24, 2005)
|
|
Exhibit 3.2
|
Amended and Restated Bylaws of the Registrant (incorporated by reference to Form 8-K filed March 23, 2012)
|
|
Exhibit 10.1
|
Form of Indemnification Agreement entered into by the Registrant with each of its directors and officers (filed herewith)
|
|
Exhibit 31.1
|
Certification of Martin R. Benante, Chairman and CEO, Pursuant to Rules 13a – 14(a) and 15d-14(a) under the Securities Exchange Act of 1934, as amended (filed herewith)
|
|
Exhibit 31.2
|
Certification of Glenn E. Tynan, Chief Financial Officer, Pursuant to Rules 13a – 14(a) and 15d-14(a) under the Securities Exchange Act of 1934, as amended (filed herewith)
|
|
Exhibit 32
|
Certification of Martin R. Benante, Chairman and CEO, and Glenn E. Tynan, Chief Financial Officer, Pursuant to 18 U.S.C. Section 1350 (filed herewith)
|
|
Exhibit 101.INS
|
XBRL Instance Document (furnished herewith)
(1)
|
|
Exhibit 101.SCH
|
XBRL Taxonomy Extension Schema Document (furnished herewith)
(1)
|
|
Exhibit 101.CAL
|
XBRL Taxonomy Extension Calculation Linkbase Document (furnished herewith)
(1)
|
|
Exhibit 101.DEF
|
XBRL Taxonomy Extension Definition Linkbase Document (furnished herewith)
(1)
|
|
Exhibit 101.LAB
|
XBRL Taxonomy Extension Label Linkbase Document (furnished herewith)
(1)
|
|
Exhibit 101.PRE
|
XBRL Taxonomy Extension Presentation Linkbase Document (furnished herewith)
(1)
|
|
(1)
In accordance with Rule 406T of Regulation S-T, the XBRL related information in Exhibit 101 to this Quarterly Report on Form 10-Q shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to liability of that section and shall not be incorporated by reference into any filing or other document filed under the Securities Act of 1933, as amended, or the Exchange Act, except as shall be expressly set forth by specific reference in such filing or document.
|
1.
|
I have reviewed this quarterly report on Form 10-Q of Curtiss-Wright Corporation;
|
2.
|
Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
|
3.
|
Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
|
4.
|
The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:
|
a)
|
Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
|
b)
|
Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
|
c)
|
Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
|
d)
|
Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and
|
5.
|
The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):
|
a)
|
All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and
|
b)
|
Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.
|
1.
|
I have reviewed this quarterly report on Form 10-Q of Curtiss-Wright Corporation;
|
2.
|
Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
|
3.
|
Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
|
4.
|
The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:
|
a)
|
Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
|
b)
|
Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
|
c)
|
Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
|
d)
|
Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and
|
5.
|
The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):
|
a)
|
All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and
|
b)
|
Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.
|