Curtiss-Wright Reports 2004 Third Quarter and Nine Month Financial Results

Curtiss-Wright Reports 2004 Third Quarter and Nine Month
Financial Results
Sales Increased 25% and 22% and Operating Income 19% & 21% in the Third Quarter
and First Nine Months of 2004, Respectively



ROSELAND, N.J., Oct. 28  /PRNewswire-FirstCall/ -- Curtiss-Wright Corporation
(NYSE:CWNYSE:CW.B) today reports financial results for the quarter and nine
months ended September 30, 2004. The highlights are as follows:

  Third Quarter 2004 Operating Highlights

   * Net sales for the third quarter of 2004 increased 25% to
     $236.6 million from $189.6 million in the third quarter of 2003.
     Acquisitions made in the second half of 2003 and in 2004 contributed
     $43.0 million in incremental sales in the third quarter of 2004.

   * Operating income in the third quarter of 2004 increased 19% to
     $25.5 million from $21.4 million in the third quarter of 2003.
     Acquisitions made in the second half of 2003 and in 2004 contributed
     $2.8 million in incremental operating income in the third quarter of
     2004. The increase in operating income was achieved despite a
     $0.8 million decrease in pension income from the third quarter of 2003
     and approximately $1.3 million of costs related to compliance with
     Sarbanes-Oxley Section 404.

   * Net earnings for the third quarter of 2004 increased 18% to
     $14.7 million, or $0.68 per diluted share, from $12.5 million, or $0.60
     per diluted share, in the third quarter of 2003 (adjusted for the
     2-for-1 stock split in December 2003).  The net earnings for the third
     quarter of 2004 include a tax benefit of $0.6 million (approximately
     $0.03 per diluted share) resulting from the recognition of a previously
     unprovided for deferred tax asset. In addition, the increase in net
     earnings in the third quarter of 2004 was achieved despite a decrease
     in pension income (approximately $0.02 per diluted share) and
     Sarbanes-Oxley costs (approximately $0.04 per diluted share).

   * New orders received in the third quarter of 2004 were $239.7 million,
     up 89% compared to the third quarter of 2003.

  Nine Months 2004 Operating Highlights

   * Net sales for the first nine months of 2004 increased 22% to
     $673.9 million from $552.4 million in the first nine months of 2003.
     Acquisitions made in 2003 and 2004 contributed $101.4 million in
     incremental sales in the first nine months of 2004.

   * Operating income in the first nine months of 2004 increased 21% to
     $76.4 million from $63.2 million in the first nine months of 2003.
     Acquisitions made in 2003 and 2004 contributed $7.5 million in
     incremental operating income in the first nine months of 2004. The
     increase in operating income was achieved despite a $2.0 million
     decrease in pension income from the first nine months of 2003 and
     approximately $1.7 million of costs related to compliance with
     Sarbanes-Oxley Section 404.

   * Net earnings for the first nine months of 2004 increased 19% to
     $44.7 million, or $2.08 per diluted share, from $37.5 million, or $1.80
     per diluted share, in the first nine months of 2003 (adjusted for the
     2-for-1 stock split in December 2003).  In addition, the increase in
     2004 net earnings was achieved despite a decrease in pension income
     (approximately $0.06 per diluted share) and Sarbanes-Oxley costs
     (approximately $0.05 per diluted share).

   * New orders received in the first nine months of 2004 were
     $683.2 million, up 32% compared to the first nine months of 2003.
     Backlog increased 13% to a new record high of $570.9 million from
     $505.5 million at December 31, 2003.



"We are pleased to again report higher sales and operating income for the third
quarter and first nine months of 2004," commented Martin R. Benante, Chairman
and CEO of Curtiss-Wright Corporation. "We experienced organic growth in some
of our base businesses, as well as solid performance from our acquisitions. 
Overall our acquisitions are meeting our expectations, however, they do
generate lower operating margins than those of our base businesses during the
early periods of ownership.  Our diversification strategy has provided growth
in the first nine months of 2004 for both our core defense markets, which grew
21%, and commercial and industrial markets, which grew 23%, over the prior year
period. We also experienced strong organic sales growth from our Metal
Treatment segment, which grew 21% year-to-date, and strong organic operating
income growth in our Metal Treatment and Motion Control segments, which grew
67% and 24%, respectively, for the first nine months of 2004."

Sales

Sales growth in 2004 for the three and nine months ended September 30th as
compared to 2003, was driven by contributions from acquisitions and organic
growth in some of our base businesses. Acquisitions made in 2003 and 2004 have
contributed $43.0 million and $101.4 million in incremental sales for the
quarter and nine months ended September 30, 2004, respectively, over the
comparable periods in 2003.  Excluding the overall sales from these
acquisitions, we experienced organic growth of 2% and 4% for the three and nine
months ended September 30, 2004, respectively, over the prior year periods. The
organic sales growth was driven by our Metal Treatment and Motion Control
segments, which experienced organic growth of 21% and 4%, respectively, for the
first nine months of 2004.

In our base businesses, higher sales of global shot and laser peening from our
Metal Treatment segment, higher sales from our Flow Control segment to the
commercial power generation and oil and gas markets, and higher repair and
overhaul sales from our Motion Control segment to the global commercial
aerospace market, all contributed to the organic growth.  In addition, foreign
currency translation favorably impacted sales by $4.1 million and $11.8 million
for the three and nine months ended September 30, 2004, respectively, compared
to the prior year periods.

Operating Income

Operating income for the three and nine months ended September 30, 2004
increased 19% and 21%, respectively, over the 2003 prior year periods. The
increases were due to higher sales volumes, favorable sales mix and previously
implemented cost control initiatives.  Overall, organic growth was 7% and 12%
for the three and nine months ended September 30, 2004, respectively, compared
to the prior year periods. The strong year-to-date performance was driven by
our Metal Treatment and Motion Control segments, which produced organic growth
of 67% and 24%, respectively. The solid segment operating income growth was
achieved despite the absorption of consulting costs associated with Sarbanes-
Oxley Rule 404 compliance which primarily occurred in the third quarter.

The higher segment operating income was partially offset by lower pension
income of $0.8 million and $2.0 million for the three and nine months ended
September 30, 2004, respectively, over the comparable prior year periods.  In
addition, foreign currency translation favorably impacted operating income by
$0.7 million and $1.9 million for the three and nine months ended September 30,
2004, respectively, compared to the prior year periods.

On a consolidated basis, our operating margin was 10.8% in the third quarter of
2004 versus 11.3% in the prior year.  Our year to date operating margin was
11.3% versus 11.4% last year.  Our operating margins continue to be affected by
higher amortization expense due to our robust acquisition activity over the
past couple of years.  Approximately 40% of the amortization expense for the
first nine months of 2004, or $2.6 million, occurred in the third quarter and
caused a drag on our earnings.

Net Earnings

Net earnings increased 18% and 19% for the three and nine months ended
September 30, 2004, respectively, over the comparable prior year periods. This
was achieved as a result of strong operating income from our business segments,
which increased $6.1 million and $16.8 million for the three and nine months
ended September 30, 2004, respectively, over the prior year periods.

Net earnings for the first nine months includes two one-time tax benefits
totaling $2.1 million,  a change in legal structure of one of our subsidiaries
in the first quarter ($1.5 million) and the recognition of a previously
unprovided for deferred tax asset in the third quarter ($0.6 million). These
improvements were partially offset by higher interest expense associated with
the debt incurred to fund our acquisition program and from higher interest
rates.

Segment Performance

Flow Control - Sales for the third quarter of 2004 were $94.2 million, up 12%
over the comparable period last year, principally due to the contributions from
the 2004 acquisitions.  Sales growth was achieved in the commercial power
generation, oil and gas, and defense electronics markets.  This growth was
mostly offset by lower sales of flow control products to the US Navy primarily
due to the timing of contractual revenues.  Sales of this business segment also
benefited from favorable foreign currency translation of $0.5 million in the
third quarter of 2004 as compared to the prior year period.

Operating income for this segment increased 39% in the third quarter of 2004
compared to the prior year period.  The improvement was due to strong organic
growth of 47%, lead by favorable sales mix, implemented cost reduction
initiatives, and higher sales volume of our commercial power generation, oil
and gas, and defense electronic products. The improvement was partially offset
by the profit impact related to lower sales of flow control product to the US
Navy.

Motion Control - Sales for the third quarter of 2004 of $97.7 million increased
39% over last year, principally due to the contributions from the 2003 and 2004
acquisitions.  Sales from the base businesses decreased 5% in the third quarter
of 2004 as compared to the prior year period. This reduction was due to lower
sales of F-16 spares and lower ground defense sales associated with the Bradley
Fighting Vehicle. Higher sales associated with repair and overhaul services and
our integrated sensor group partially offset the decrease in military sales. 
Sales of this business segment also benefited from favorable foreign currency
translation of $2.0 million in the third quarter of 2004 as compared to the
prior year period.

Operating income for this segment increased 9% for the third quarter of 2004
compared to the prior year period. The improvement was driven by higher sales
volume previously mentioned, favorable sales mix, and implemented cost control
initiatives. Additionally, the operating margins for the repair and overhaul
business improved substantially over the comparable period last year, mainly as
a result of higher volume and implemented cost control initiatives.

Metal Treatment - Sales for the third quarter of 2004 of $44.6 million were 26%
higher than the comparable period last year.  The improvement was mainly due to
organic growth of 21% driven by higher overall laser and shot peening revenues,
and the contributions from the 2004 acquisitions. This segment achieved
exceptional sales growth from our new laser peening technology as well as
strong growth in our global shot peening businesses. Favorable foreign currency
translation positively impacted sales by $1.6 million in the third quarter of
2004 as compared to the prior year period.

Operating income increased 58% for the third quarter of 2004 as compared to the
prior year period.  Margins improved substantially in our shot peening
businesses primarily as a result of higher sales volume, especially for our
higher margin laser peening business.  In addition, favorable sales mix, cost
reduction programs, and favorable foreign currency translation also contributed
to the higher operating income.

Mr. Benante concluded, "In 2004, we continue to demonstrate our ability to
generate long-term shareholder value by growing our sales and earnings.  Our
strong performance in the first nine months of 2004 exemplifies our ability to
execute our strategy and achieve our financial targets. We expect the fourth
quarter of 2004 to be strong as it has been historically, and the full year
results to be in line with our guidance. Our successful growth is the result of
our diversification and ability to deliver the high performance,
technologically advanced products for which Curtiss-Wright is world renowned.
We continue to experience increasing demand for our new technologies, many of
which are only at the beginning of their life cycle, which should continue to
provide superior returns to our shareholders into the future."

The Company will host a conference call to discuss the third quarter 2004
results at 10:00 EDT Friday, October 29, 2004.  A live webcast of the call can
be heard on the Internet by visiting the company's website at
http://www.curtisswright.com/ and clicking on the investor information page or
by visiting other websites that provide links to corporate webcasts.

                 CURTISS-WRIGHT CORPORATION and SUBSIDIARIES
                     CONSOLIDATED STATEMENTS OF EARNINGS
                    (In thousands, except per share data)

                                      Three Months Ended  Nine Months Ended
                                        September 30,       September 30,
                                        2004      2003      2004      2003

  Net sales                          $236,574  $189,618  $673,935  $552,408
  Cost of sales                       154,725   132,601   444,469   379,677
    Gross profit                       81,849    57,017   229,466   172,731

  Research & development expenses       8,443     5,417    24,409    16,494
  Selling expenses                     17,413     9,612    44,760    28,887
  General and administrative
   expenses                            30,033    20,740    83,071    65,320
  Environmental remediation and
   administrative expenses, net           200       380       491       380
  Pension expense (income), net           295      (527)      377    (1,580)

    Operating income                   25,465    21,395    76,358    63,230

  Other income (expenses), net            185       (91)      (11)      182
  Interest expense                     (3,135)   (1,113)   (8,418)   (2,906)

  Earnings before income taxes         22,515    20,191    67,929    60,506
  Provision for income taxes            7,795     7,672    23,276    22,992

  Net earnings                        $14,720   $12,519   $44,653   $37,514

  Basic earnings per share              $0.69     $0.61     $2.11     $1.82
  Diluted earnings per share            $0.68     $0.60     $2.08     $1.80

  Dividends per share                   $0.09     $0.08     $0.27     $0.23

  Weighted average shares outstanding:
     Basic                             21,359    20,656    21,122    20,608
     Diluted                           21,715    20,936    21,476    20,856


                 CURTISS-WRIGHT CORPORATION and SUBSIDIARIES
                     CONSOLIDATED STATEMENTS OF EARNINGS
                    (In thousands, except per share data)


                                        Three Months        Nine Months
                                           Change              Change
                                         $         %         $         %

  Net sales                           $46,956    24.76%  $121,527    22.00%
  Cost of sales                        22,124    16.68%    64,792    17.07%
    Gross profit                       24,832    43.55%    56,735    32.85%

  Research & development expenses       3,026    55.86%     7,915    47.99%
  Selling expenses                      7,801    81.16%    15,873    54.95%
  General and administrative expenses   9,293    44.81%    17,751    27.18%
  Environmental remediation and
   administrative expenses, net          (180)     N/A        111      N/A
  Pension expense (income), net           822  -155.98%     1,957  -123.86%

    Operating income                    4,070    19.02%    13,128    20.76%

  Other income (expenses), net            276  -303.30%      (193) -106.04%
  Interest expense                     (2,022)  181.67%    (5,512)  189.68%

  Earnings before income taxes          2,324    11.51%     7,423    12.27%
  Provision for income taxes              123     1.61%       284     1.24%

  Net earnings                         $2,201    17.58%    $7,139    19.03%

   Share and per share amounts have been restated to reflect the
   Corporation's 2-for-1 stock split on December 17, 2003.

   Certain prior year information has been reclassified to conform to
   current presentation.


                 CURTISS-WRIGHT CORPORATION and SUBSIDIARIES
                         CONSOLIDATED BALANCE SHEETS
                                (In thousands)

                                       September  December
                                           30,       31,         Change
                                          2004      2003        $       %
  Assets
    Current Assets:
    Cash and cash equivalents           $38,537   $98,672  $(60,135) -60.9%
    Receivables, net                    184,559   143,362    41,197   28.7%
    Inventories, net                    116,837    97,880    18,957   19.4%
    Deferred income taxes                24,307    23,630       677    2.9%
    Other current assets                 13,697    10,979     2,718   24.8%

      Total current assets              377,937   374,523     3,414    0.9%
    Property, plant, and equipment, net 251,086   238,139    12,947    5.4%
    Prepaid pension costs                77,821    77,877       (56)  -0.1%
    Goodwill, net                       346,367   220,058   126,309   57.4%
    Other intangible assets, net        110,063    48,268    61,795  128.0%
    Other assets                         18,846    14,800     4,046   27.3%

      Total Assets                   $1,182,120  $973,665  $208,455   21.4%

  Liabilities
    Current Liabilities:
    Short-term debt                        $957      $997      $(40)  -4.0%
    Accounts payable                     55,716    43,776    11,940   27.3%
    Accrued expenses                     47,441    44,938     2,503    5.6%
    Income taxes payable                  4,975     6,748    (1,773) -26.3%
    Other current liabilities            45,103    39,424     5,679   14.4%

      Total current liabilities         154,192   135,883    18,309   13.5%

    Long-term debt                      348,226   224,151   124,075   55.4%
    Deferred income taxes                20,618    21,798    (1,180)  -5.4%
    Accrued pension & other
     postretirement benefit costs        79,427    75,633     3,794    5.0%
    Long-term portion of
     environmental reserves              19,364    21,083    (1,719)  -8.2%
    Other liabilities                    21,183    16,236     4,947   30.5%

      Total Liabilities                 643,010   494,784   148,226   30.0%


  Stockholders' Equity
    Common stock, $1 par value           16,646    16,611        35    0.2%
    Class B common stock, $1 par value    8,765     8,765         0    0.0%
    Capital surplus                      52,911    52,998       (87)  -0.2%
    Retained earnings                   582,579   543,670    38,909    7.2%
    Unearned portion of restricted
     stock                                  (39)      (55)       16  -29.1%
    Accumulated other comprehensive
     income                              23,037    22,634       403    1.8%
                                        683,899   644,623    39,276    6.1%
    Less:  cost of treasury stock       144,789   165,742   (20,953) -12.6%

      Total Stockholders' Equity        539,110   478,881    60,229   12.6%

      Total Liabilities and
       Stockholders' Equity          $1,182,120  $973,665  $208,455   21.4%


                 CURTISS-WRIGHT CORPORATION and SUBSIDIARIES
                             SEGMENT INFORMATION
                                (In thousands)

                                                Three Months Ended
                                                   September 30,
                                                                      %
                                             2004        2003      Change
  Sales:
  Flow Control                             $94,204     $84,167      11.9%
  Motion Control                            97,727      70,157      39.3%
  Metal Treatment                           44,643      35,294      26.5%

  Total Sales                             $236,574    $189,618      24.8%

  Operating Income:
  Flow Control                              $9,845      $7,110      38.5%
  Motion Control                            10,399       9,537       9.0%
  Metal Treatment                            6,817       4,321      57.8%

  Total Segments                            27,061      20,968      29.1%
  Pension (Expense)/Income                    (295)        527    -156.0%
  Corporate & Other                         (1,301)       (100)   1201.0%

  Total Operating Income                   $25,465     $21,395      19.0%


  Operating Margins:
  Flow Control                               10.5%        8.4%
  Motion Control                             10.6%       13.6%
  Metal Treatment                            15.3%       12.2%
  Total Curtiss-Wright                       10.8%       11.3%


                 CURTISS-WRIGHT CORPORATION and SUBSIDIARIES
                             SEGMENT INFORMATION
                                (In thousands)

                                                  Nine Months Ended
                                                    September 30,
                                                                      %
                                             2004        2003      Change
  Sales:
  Flow Control                            $269,804    $263,125       2.5%
  Motion Control                           272,649     188,181      44.9%
  Metal Treatment                          131,482     101,102      30.0%

  Total Sales                             $673,935    $552,408      22.0%

  Operating Income:
  Flow Control                             $29,122     $30,176      -3.5%
  Motion Control                            28,700      18,734      53.2%
  Metal Treatment                           20,971      13,102      60.1%

  Total Segments                            78,793      62,012      27.1%
  Pension (Expense)/Income                    (377)      1,580    -123.9%
  Corporate & Other                         (2,058)       (362)    468.5%

  Total Operating Income                   $76,358     $63,230      20.8%


  Operating Margins:
  Flow Control                               10.8%       11.5%
  Motion Control                             10.5%       10.0%
  Metal Treatment                            15.9%       13.0%
  Total Curtiss-Wright                       11.3%       11.4%


  About Curtiss-Wright


Curtiss-Wright Corporation is a diversified company headquartered in Roseland,
New Jersey.  The Company designs, manufactures and overhauls products for
motion control and flow control applications and provides a variety of metal
treatment services.  The firm employs approximately 5,500 people.  More
information on Curtiss-Wright can be found at http://www.curtisswright.com/.

Forward-looking statements in this release 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 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. Please refer to the Company's current SEC filings under
the Securities and Exchange Act of 1934, as amended, for further information.

This press release and additional information is available at
http://www.curtisswright.com/. 

DATASOURCE: Curtiss-Wright Corporation



CONTACT:  Alexandra M. Deignan of Curtiss-Wright Corporation,

[phone], or  



Web site:  http://www.curtisswright.com/ 

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