News Details
CURTISS-WRIGHT ANNOUNCES SALE OF HEAT TREATING BUSINESS
April 02, 2012
COMPANY ALSO ANNOUNCES BUSINESS RESTRUCTURING WITHIN THE METAL TREATMENT SEGMENT
PARSIPPANY, N.J., April 2, 2012 (GLOBE NEWSWIRE) -- Curtiss-Wright Corporation (NYSE:CW) announced today that it has completed the sale of its heat treating business to Bodycote plc (LSE:BOY) for $52 million in cash.
"We are pleased to complete the sale of our heat treating business, as it enables Curtiss-Wright to focus on its core metal treatment businesses," said Martin R. Benante, Chairman and CEO of Curtiss-Wright Corporation. "Technical services such as shot and laser peening, specialty coatings and materials testing are highly complementary to the engineered product solutions that Curtiss-Wright is well known for in the industry."
The transaction resulted in a book gain on sale in the first quarter of approximately $18 million, net of tax, or approximately $0.37 per diluted share.
Curtiss-Wright entered the heat treating business in 1979 with the acquisition of Deibel Heat Treating and subsequently expanded the business through greenfield operations and numerous acquisitions, currently operating nine facilities across the United States.
The business concluded 2011 with approximately $36 million in sales. For the remaining nine months of 2012, sales and operating income for the heat treating business were expected to be approximately $30 million and $10 million, respectively. As a result, this will subsequently impact the Metal Treatment segment's full year 2012 guidance and also will reduce Curtiss-Wright's overall diluted earnings per share by $0.14.
Curtiss-Wright also announced its intent to complete business restructuring initiatives in the Metal Treatment segment in order to better position the business for long-term profitability and growth. As a result, the Company expects to incur charges of approximately $12 million, or $0.16 per diluted share. These restructuring activities are expected to be completed by December 31, 2012, and as a result, the majority of the charges will impact the Company's fourth quarter 2012 results.
FULL YEAR 2012 GUIDANCE
The Company is updating certain aspects of the Metal Treatment segment's full year 2012 financial guidance as follows:
| Prior Guidance | New Guidance | |
| Metal Treatment Sales | $310 - $320 million | $280 - $290 million |
| Metal Treatment Operating Income | $51 - $53 million | $29 - $31 million |
The Company also is updating certain aspects of Curtiss-Wright's full year 2012 financial guidance as follows:
| Prior Guidance | New Guidance | New % Growth | |
| Total Curtiss-Wright Sales | $2.23 - $2.27 billion | $2.20 - $2.24 billion | 7-9% |
| Operating Income | $240 - $248 million | $218 - $226 million | 6-10% |
| Diluted Earnings per Share* | $2.95 - $3.05 | $3.02 - $3.12 | 12-16% |
*Diluted Earnings per Share calculation excludes prior year R&D tax credit.
ABOUT CURTISS-WRIGHT CORPORATION
Curtiss-Wright Corporation is an innovative engineering company that provides highly engineered, critical function products, systems and services in the areas of flow control, motion control and metal treatment to the defense, energy and commercial/industrial markets. The legacy company of Glenn Curtiss and the Wright brothers, Curtiss-Wright has a long tradition of design and manufacturing innovation along with long-standing customer relationships. The company employs approximately 8,900 people worldwide. For more information, visit curtisswright2014.q4web.com.
The Curtiss-Wright Corporation logo is available at http://www.globenewswire.com/newsroom/prs/?pkgid=7709
ABOUT CURTISS-WRIGHT METAL TREATMENT SEGMENT
Metal Improvement Company, headquartered in Paramus, NJ, is the Metal Treatment business segment of Curtiss-Wright Corporation. This business segment provides precision shot peening, laser peening, protective coatings and analytical services to the aerospace, automotive, power generation and general industrial markets through a global network of locations.
Certain statements made in this release, including statements about future revenue, financial performance guidance, annual revenue, net income, operating income, and earnings per share, are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements present management's expectations, beliefs, plans and objectives regarding future financial performance, and assumptions or judgments concerning such performance. Any discussions contained in this press release, except to the extent that they contain historical facts, are forward-looking and accordingly involve estimates, assumptions, judgments and uncertainties. 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. Such factors are detailed in the Company's Annual Report on Form 10-K for the fiscal year ended December 31, 2011 and subsequent reports filed with the Securities and Exchange Commission.
CONTACT: Jim Ryan (973) 541-3766