Strength • Performance • Diversification
Curtiss-Wright Corporation
2008 Annual Report
Curtiss-Wright 2008 Annual Report | FC1
Forward-Looking Statements
This brochure contains not only historical
information, but also forward-looking
statements regarding expectations of
future performance of the Corporation.
Forward-looking statements involve risk
and uncertainty. Please refer to the
Corporation’s 2008 Annual Report on
Form 10-K for a discussion relating to
forward-looking statements contained in
this brochure, and risk factors that
could cause future results to differ
from current expectations.
IFC2 | Curtiss-Wright 2008 Annual Report
Curtiss-Wright blends technological strength and high
performance with a market diversification strategy to deliver
profound customer value and long-term shareholder growth.
In the defense market, we have balanced participation on
naval, aerospace and ground platforms in support of current
and future programs. In the commercial market, we leverage
our expertise in critical performance requirements for vital
energy and aerospace operations. And, our product solutions
extend to specialized industrial applications where the
innovative, reliable and safe solutions that Curtiss-Wright
provides are essential.
Table of Contents
2
Strength
4
Performance
6
Diversification
8
Letter to Shareholders
12
Key Investment Considerations
14
Segment Information
16
Auditor’s Opinion
17
Consolidated Statements of Earnings
Consolidated Balance Sheets
18
Consolidated Statements of Cash Flows 19
20
Shareholder Information
Strength. Performance. Diversification.
Curtiss-Wright
Curtiss-Wright 2008 Annual Report | 1
Strength
computing technology, we are at the
forefront of platforms such as the
Global Hawk, for which we provide
the sensor and mission management
system that essentially serves as
the brains operating this unmanned
aerial vehicle. On military helicopters,
such as the Apache, Black Hawk and
Chinook, we provide radar warning
receiver systems, air data computers
and flight recorders. In addition,
numerous highly stressed components
on fighter aircraft and military
helicopters are protected from fatigue
and corrosion by our engineered metal
treatment services.
On the ground, our embedded
computing products and systems are
critical to the performance of the
Bradley Fighting Vehicle, Abrams
Tank, Stryker Mobile Gun System and
similar vehicles worldwide. We are
actively supporting the U.S. Army’s
Future Combat Systems program,
designed to create an interlinked,
wireless network of unmanned air
and ground vehicles. Curtiss-Wright
embedded electronic subsystems
provide real-time technology for
performing mission-critical operations
and communication functions.
From upgrading the performance
of older platforms to bringing the
capabilities of future programs to
reality, Curtiss-Wright’s innovative
products and technologies add strength
to all facets of the defense market.
From stabilizing the weapons systems on armored tanks,
to controlling the lift, flight and landing of aircraft and
managing the critical flow of liquids on nuclear-powered
submarines and aircraft carriers, Curtiss-Wright has the
advanced technologies and engineering strength to support
vital defense programs.
At sea, our products perform mission-critical functions that are at the very center
of the U.S. Navy’s current and future submarine, aircraft carrier and surface ship
platforms. Curtiss-Wright is the preferred supplier of sealed valves and critical function
pumps used in the nuclear propulsion system of U.S. Navy submarines and aircraft
carriers. We also supply the main generators that power the U.S. nuclear fleet, which
are the Navy’s largest electric components. And Curtiss-Wright embedded computing
electronics perform critical monitoring and control functions on-board every nuclear
submarine and aircraft carrier commissioned by the U.S. Navy.
For aircraft carriers, we have expanded our offerings to include advanced
systems for aircraft launch and landing operations. Our arresting gear system
accommodates a wider array of current and future aircraft, and our electro-
magnetic launching technology provides a more efficient alternative to currently
employed launch systems. On destroyers and other surface ships, our helicopter
landing systems enable the safe launch, recovery and maneuvering of ship-borne
helicopters in the most demanding sea-state conditions.
In the air, our advanced technology is used in an array of platforms covering fighter
aircraft, helicopters and unmanned aerial vehicles.
Curtiss-Wright provides the critical actuation systems to open and close the F-22
Raptor weapons bay doors to help maintain the aircraft’s stealth capability during
weapons deployment. We also supply the entire leading-edge flap actuation and
drive systems, which enable safe take-offs and landings. Our actuation equipment
for the Ordnance Hoist System (OHS) and Ordnance Quick Latch System (OQLS),
as well as embedded computing electronics and sensors, contribute to the
advanced avionics and firepower of the F-35 Lightning II. Through our embedded
2 | Curtiss-Wright 2008 Annual Report
Curtiss-Wright 2008 Annual Report | 3
Performance
Curtiss-Wright’s proprietary engineering and innovative
products achieve the demanding performance levels required
for ensuring optimal safety, efficiency and reliability in the
harsh operating conditions found in energy applications.
For more than 50 years, the commercial nuclear power industry has drawn from our
innovations, demonstrating a remarkable track record of product performance. Our
product offerings span plant operations, ranging from critical-duty motors, pumps,
valves and specialized containment equipment to broader scope solutions such
as plant performance services, all with the goal of improving safety and efficiency
and reducing personnel exposure to hazardous environments. In addition, our
engineering, analysis, manufacturing and testing capabilities are able to extend the
life and increase the power output of existing plants while our shot peening services
optimize the performance of long-endurance components. And we maintained, and
then expanded, our certifications to provide advanced technologies that meet the
stringent qualifications demanded by nuclear power regulators.
Today, we are playing an integral role in the emerging commercial nuclear power
revival. Curtiss-Wright’s next-generation reactor coolant pumps (RCPs) will be used
in the AP1000 Generation III+ nuclear power plants, which will signify a new
generation of construction. These pumps—the largest canned motor pumps ever
designed and manufactured by Curtiss-Wright—will be part of AP1000 plants to be
built in China and the United States.
Within the oil and gas market, our solutions for advanced, secondary processing
techniques, such as delayed coking, enable processing of heavier grades of crude
oil and enhanced extraction. Our DeltaGuard® coke-drum unheading device is an
automated, inherently safe alternative to traditionally dangerous manual processes.
Beyond improving safety, this innovative product yields significant economic
advantages by minimizing operation and maintenance costs, and enables refiners to
process less expensive grades of crude oil. Building on our initial success, we added
water-jet coke cutting tools, isolation valves and automation systems to provide a
total system solution for customers. Moreover, we improve reliability and efficiency in
the catalytic cracking process with our large reactors and vessels, combined with our
4 | Curtiss-Wright 2008 Annual Report
valve and actuator systems and process
control technology.
For pipelines and other critical
equipment, Curtiss-Wright pressure-relief
valves help prevent over pressurization.
Our digital valve controllers with
embedded sensors remotely monitor
and control operating conditions of
valves and actuators to achieve optimum
performance. Our hermetically sealed
valves eliminate fugitive emissions that
are hazardous to personnel and the
environment, and our process safety
management software ensures plant
safety systems are properly designed
and maintained. Our shot peening of
oil exploration equipment helps prevent
fatigue of highly stressed areas, and our
coatings are preventing the corrosion of
equipment used on offshore platforms.
Elsewhere, Curtiss-Wright is advancing
oil and gas production systems. Through
an adaptation of our reliable canned
motor technology, we have developed
a state-of-the-art submerged canned
electric motor and pumping system for
deep-sea oil recovery, and our high-speed
compressor motors provide a compact
and cost-effective solution on land or
in subsea applications. With renewable
energy sources becoming an important
part of the energy mix, we are supporting
numerous initiatives, such as geothermal
power generation and wind turbines.
Wherever there are innovation and high-
performance requirements, Curtiss-Wright
will continue to fuel the development
of technologies needed to keep energy
producers operating at peak performance.
Curtiss-Wright 2008 Annual Report | 5
Diversification
Consistent with our strategy of market diversification,
Curtiss-Wright brings highly engineered technologies to a
variety of high-performance commercial markets.
We apply the same design expertise, specialized manufacturing and stringent
quality standards to meet and exceed the expectations of our customers in
commercial aerospace, automotive, construction, industrial equipment and
various entertainment markets.
In aerospace, Curtiss-Wright provides an expansive array of products and services
to commercial airliners, business jets and helicopters. Our actuation systems
extend and retract a wing’s leading-edge and trailing-edge flaps, enabling the
aircraft to take off and land at lower speeds, thus reducing runway requirements.
We help ensure passenger safety with sensors and data recording products that
monitor flight operations and communicate vital data on conditions within and
surrounding an aircraft. Our integrated fire protection systems and smoke detection
and suppression controls are instrumental in maintaining aircraft safety, while our
rotor ice protection system senses and removes ice from helicopter blades. And our
cockpit pilot controls support the safe operation of aircraft.
With our advanced laser peening and shot peening services, we improve the
fatigue life of turbine engine components and form the complex aerodynamic
shapes of commercial aircraft wing skins. We lubricate and protect structural
fasteners through the application of our specialty coatings and enhance the
integrity of aluminum airframe structural parts with our heat treating processes.
Through these services, we also enhance the performance and extend the life
of critical components by helping to prevent structural fatigue and corrosion
failures. Whether it is applying shot peening or specialty coatings to protect
highly stressed engine and transmission components in automotive, construction
and recreational vehicles, or heat treating fabricated metal parts to improve
their overall strength and ductility, our capabilities are an integral part of the
manufacturing process for thousands of engineered products.
Curtiss-Wright products extend to a diverse range of commercial and industrial
applications. Our position sensors are utilized for vehicle steering, suspension,
6 | Curtiss-Wright 2008 Annual Report
gearbox and accelerator controls, and
in production assembly and material
handling functions. Our sensors and
joystick controllers guide construction
and other off-highway vehicles. Our
specialty fuel valves are used on large-
bore diesel engines for container ships.
Customers in HVAC, processing, power
generation, mining and transportation
industries benefit from our motor
and machine control and protection
products. Moreover, our stress analysis
technology signals the need for early
maintenance and helps diagnose the
root cause of a mechanical failure
in applications ranging from electric
motors in industrial plants to propulsion
systems of commercial ships.
As with our participation in the
defense and energy markets,
Curtiss-Wright not only satisfies
customer requirements on current
projects, but is also involved with
future programs. For example, we
are developing and supplying linear
drive motors, controls and a guidance
system for the demonstration phase
of a new transportation shuttle that
blends the strengths of the trucking
and railroad industry to move
containerized freight.
The performance and quality of
Curtiss-Wright’s highly engineered
and innovative solutions enables us
to compete in a multitude of markets
around the world. Our portfolio
diversification supports growth in robust
markets and lends stability to our
operations during unpredictable industry
cycles and varying economic climates.
Curtiss-Wright 2008 Annual Report | 7
Dear Shareholders:
Martin R. Benante
Chairman and Chief Executive Officer
renaissance, while defense and
commercial aerospace markets
continue to be solid. The U.S. Navy,
our largest defense customer, initiated
its procurement in 2008 for the next
Virginia-class submarines, and we
expect additional orders in 2009
to support the Navy’s accelerating
shipbuilding program.
In 2008, we executed key strategies
by reinvesting in our technologies,
including more than $60 million in
facility expansions, and by making
select acquisitions of Parylene Coating
Services, Mechetronics and VMETRO
to enhance our portfolio.
As we close the books on 2008, the
strength of Curtiss-Wright’s balance
sheet and cash flow cannot be
underestimated. Together, they enable
the company to continue to achieve
growth and profitability in varying
economic environments. Our balance
sheet remains strong with a net
debt to book capitalization of 34%,
including $350 million of private
senior notes and a $425 million
revolving credit facility. Our free
cash flow, defined as cash flow from
operations less capital expenditures,
was $76 million for the year, equating
to a 70% cash conversion. Our
cash flow included growth capital
expenditures of approximately $40
million specifically related to the
manufacturing facility expansion in
Cheswick, PA.
In times of uncertainty, balance sheet
liquidity and cash flow generation are
As I look back on 2008, the year brought us an astounding
combination of historic events that will reshape the future
of the global economy and our markets. From the dramatic
speed of the financial market decline to the unprecedented
reversal of global energy prices and demand, the economic
upheaval is far from settled. A new President in the White
House and a shifting of the geopolitical landscape add to
the climate of uncertainty.
As a 30-year veteran of this great company, it is clear to me that such an
environment yields great challenges yet significant opportunities. As we approach
the celebration of our 80th year as a publicly traded company, I like to remember
that our listing on the New York Stock Exchange is not the earliest milestone
in our history. Many of our businesses took root from innovations in the 19th
century, such as naval pumps, and the emergence of the aviation market.
While our technologies and markets have evolved through significant changes,
our management approach remains the same: focus on the customer, develop
innovative technologies and deliver unprecedented results.
Commitment to Financial Strength
In 2008, Curtiss-Wright delivered another year of strong growth and profitability,
once again demonstrating our commitment to generating shareholder value. In
particular, we delivered $1.8 billion in sales in 2008, which represents 15%
growth over 2007. Our performance is underpinned by strong organic growth of
6%, a result of robust demand for our unique and highly engineered products
and services across diversified markets. Operating income increased 10% to
$197 million and our net earnings rose 5% to $109 million, or $2.41 per
diluted share.
During 2008, we booked new orders of $2.2 billion, an increase of 19% over
the prior year, and our year-end backlog reached $1.7 billion. Our strong backlog
reflects the early stages of the commercial nuclear power new construction
8 | Curtiss-Wright 2008 Annual Report
critical. This fundamental strength
cannot be generated in an instant.
It is the result of relentless focus on
strategic capital deployment, lean
yet efficient operations, dedicated
employees and, most importantly,
satisfied customers. Producing
innovative, highly engineered,
mission-critical products requires the
utmost precision in planning, and a
similar commitment to our financial
strength is why we are confident in
our future performance.
Engineering Superior
Performance
Innovation, engineering expertise
and unparalleled performance are
the hallmarks of the advanced
technologies we strive to deliver.
Whether it is an advanced radar
warning system or a canned motor
pump, our products are vital to
critical operations and we never
forget the unyielding criteria of our
customers—reliability.
In our Flow Control segment, we
have designed nuclear technologies
since their earliest use by the U.S.
Navy. Today, our designs are at the
forefront of the commercial nuclear
power resurgence. In an industry
that has retrenched over the past
30 years, Curtiss-Wright supported
not only the existing infrastructure,
but also provided the industry with
substantial research and development
for advanced reactor designs. The
result was the Nuclear Regulatory
Commission’s approval of the
Westinghouse AP1000 Generation
III+ design in 2007, which coincided
with the demand for increasing
sources of clean energy. In 2008, we
signed a landmark agreement with
Westinghouse Electric Company, the
largest commercial power order in
Curtiss-Wright’s history, to provide
reactor coolant pumps (RCPs) for
up to four AP1000 Generation III+
commercial nuclear power plants.
As we evaluate opportunities in 2009 and beyond,
our strategy will remain committed to:
• Maintaining a strong financial foundation that
supports growth in any environment;
• Fostering innovation and expertise that yields
superior operational performance; and
• Leveraging diversification that affords talent
development and leadership opportunities for
our employees.
This agreement, representing orders
in excess of $300 million, came on
the heels of our 2007 award of $293
million to equip two AP1000 nuclear
plants in China. To better support
the technology development, we
implemented a $62 million expansion
of our facility in Cheswick, PA where
we will manufacture RCPs in a state-
of-the-art facility beginning in 2009.
In our Motion Control segment,
we have taken a leadership role in
developing embedded computing
products for current and future
defense programs. These products
integrate the simplicity of commercial-
grade architecture with the high
operational standards required by
rugged environments, ultimately
delivering the maximum performance
that is essential in critical military
applications. In 2008, our embedded
computing portfolio generated
our highest growth in the defense
market. We were awarded contracts
totaling nearly $50 million on
the Bradley Fighting Vehicle, by
providing technology insertions
and repairs. In addition, we were
awarded approximately $15 million
in development contracts for the
support of the U.S. Army’s Future
Combat Systems (FCS) program. In
May, we opened our Motion Control
facility in Ottawa, Canada, to the
investment community to highlight the
substantial design wins and vast range
of applications as well as the robust
capabilities of our technologies.
In our Metal Treatment segment, more
than 60 years of metal treatment
expertise, kindled with advanced laser
designs, enabled us to develop our
laser peening technology in the early
part of the decade. Establishing the
technology’s applications in such high
performance markets as commercial
aerospace took a high level of effort,
and in 2008 we were rewarded with a
contract from Boeing to provide laser
peen forming services to shape the
complex curvatures of wing sections
on one of Boeing’s newest aircraft
designs, the 747-8. Our laser peening
technology will help Boeing achieve
the improved aerodynamics of this
aircraft design. This award represents
a significant milestone in bringing our
proprietary laser peening technology
to market.
Diversification Enables Growth
One of Curtiss-Wright’s strengths
resides in its diversified markets,
spanning defense, energy, commercial
and general industry. While we focus
on common themes of innovative
technology and mission-critical
performance, diversification of our
markets provides a foundation of
Curtiss-Wright 2008 Annual Report | 9
stability and opportunities for growth
in varying economic climates. With
approximately one-third of our
portfolio in defense, one-third in
energy and one-third in commercial
aerospace and industrial markets,
we’ve only begun to tap the depth of
our product reach.
Defense
Strong defense spending by the
U.S. Department of Defense (DoD)
has been headline news since the
beginning of the decade, and yet it
is the breadth of programs
Curtiss-Wright participates in
which define a healthy outlook.
Naval defense represents the largest
portion of our defense revenues.
While the shipbuilding industry has
experienced limited growth in recent
years, we expect improved growth
in the future. Curtiss-Wright has
offset reduced procurements with
improved technologies on submarine
and aircraft carrier programs and
increased content on newer platforms
such as the next-generation destroyer.
Our investments in innovation and
continuous improvement programs
have assisted the U.S. Navy in
their operational efficiencies and
cost reduction goals. As a result, in
2008 our Flow Control segment was
awarded contracts in excess of $114
million to provide critical pumps
and valves for the U.S. Navy’s next
several Virginia-class submarines and
second Ford-class aircraft carrier. As
the U.S. Navy strives to accelerate
its build program, it is a particularly
noteworthy growth opportunity for
Curtiss-Wright in a market known for
its long-term stability.
Due to our role as primarily an
original equipment manufacturer
for aerospace defense programs,
Curtiss-Wright’s planned ramp up
of new programs, such as the U.S.
Army’s Future Combat Systems,
has been reduced as funds were
10 | Curtiss-Wright 2008 Annual Report
Annualized Five-Year Return
$250
200
150
100
50
’03
’04
’05
’06
’07
’08
Curtiss-Wright
S&P 500 Aerospace & Defense
S&P SmallCap
Russell 2000
diverted to essential operations and
maintenance spending. While we
continue to support every fighter jet
in production and in development,
we expanded our participation in the
development of future programs such
as the Global Hawk Unmanned Aerial
Vehicle and the P-8 Maritime Multi-
Mission Aircraft. Going forward, these
programs will represent a new frontier
in our military aerospace involvement.
Ground defense, which represents the
smallest but fastest growing portion
of our defense market, has provided
substantial growth due to the success
of our embedded computing products
and engineered actuation systems.
Here again, postponement of the
Future Combat Systems stalled one
growth lever, but the ingenuity of
our technology solutions yielded a
significant new market in upgrading
current forces such as the Bradley
Fighting Vehicle, the Stryker Mobile
Gun System and the Abrams Tank.
Internationally, we continue to
expand the markets for our military
technologies. We were selected to
provide ship-borne helicopter landing
systems for both the Italian
Navy’s FREMM frigate program and
Japan’s new Maritime Self-Defense
Force 19DD destroyer platform.
Currently in operation with the
U.S., Australian, Canadian, Italian,
Japanese and Turkish navies, our
most recent innovations enable
improved functionality with reduced
size and weight. In addition,
Curtiss-Wright received a $39 million
phased contract to supply the turret
drive system and mortar and missile
launcher actuation systems for the
South African Army’s new infantry
combat vehicles.
Energy
While the energy market supply
and demand dynamics appear to be
more volatile than ever as we begin
2009, the larger picture remains
the same. Demand will continue to
increase, but efforts to address both
environmental concerns and domestic
independence will result in new
market dynamics. Curtiss-Wright will
benefit from its focus on intrinsically
safe, automated technologies, which
increase operational efficiencies and
limit emissions.
Nuclear power is increasingly
recognized as a clean, reliable and
economic source of electricity that
will help build energy independence.
As a significant supplier in this
market for over 50 years, recently we
have witnessed strong signals that
nuclear power will be a major player
in meeting the growing demand for
electricity, as evidenced by our recent
awards domestically and in China.
Additionally, as operating power
plants apply for plant life extensions,
they are incorporating Curtiss-Wright’s
new technologies to increase their
power output.
And in refineries, Curtiss-Wright
continues to experience strong
demand for industry-leading designs
that provide unparalleled safety,
reduced cycle times, increased
throughput and minimized
maintenance costs. Taking people out
of harm’s way, providing the utmost
reliability and reducing environmental
emissions are profound value drivers
for our products in global oil and
gas production, refining, chemical,
petrochemical, industrial gas and
pharmaceutical markets.
Commercial & Industrial
Activity in our commercial aerospace
and industrial markets during 2008
was the most directly impacted by
the financial crisis that roiled global
markets. In commercial aerospace,
solid bookings and strong demand
for more efficient planes set healthy
expectations, but the aggregate effect
of the Boeing strike and continued
delays on new programs dampened
full-year results. Fortunately,
Curtiss-Wright is accustomed to swings
in any one market. Redeployment of
resources to other programs mitigated
the ultimate impact on our financial
performance, while enabling us to
continue to support our customers
in a timely fashion. The automotive
market was similarly affected by
strikes at supply chain vendors and
by the sharp economic downturn at
the close of the year. While we expect
a restructuring of this market to
invigorate demand, we will continue
to pursue growth in ancillary markets
such as transportation, construction
and medical equipment. In particular,
the new Administration’s economic
stimulus package could provide new
opportunities for growth.
Advancing Leadership
It is with great confidence that we
announce well-deserved promotions
of two seasoned executives with
strong records of accomplishment.
David C. Adams and David J. Linton
were promoted to the newly created
positions of Co-Chief Operating
Officers. These appointments are
part of a new organizational structure
designed to drive future growth in the
high-performance energy, defense and
aerospace markets that Curtiss-Wright
serves. As part of the realignment, Mr.
Adams also will assume responsibility
for the company’s Metal Treatment
segment. We are very pleased to
establish these executive positions
as it also lays the groundwork for the
development of key leadership across
the company.
It is with great appreciation that we
extend our best wishes to Ed Bloom
as he retires from his position of
President of our Metal Treatment
segment in April 2009. Mr. Bloom
joined Curtiss-Wright in 1973,
participated in its growth to become
the world leader in shot peening, and
guided the expansion of our metal
treatment services portfolio and its
geographic reach. It is a testament
to his leadership that the business
performed solidly under dynamic
market conditions to consistently
achieve its strategic goals. It is never
easy to accept the departure of
such an exceptional colleague and
friend, but we are thankful for his
contributions and wish him well in his
personal endeavors.
As we look to 2009, Curtiss-Wright
is well positioned in all of our
markets. We are a key contributor
to the emerging commercial new
build nuclear power plant market
and hold substantive positions on
long-term defense programs, some
of which are just entering new
procurement cycles. We continue to
invest in a number of military and
commercial development programs
in order to remain at the forefront
of technology development and
provide future growth opportunities.
Add to this a strong backlog,
which indicates the success of our
employees, products and programs,
and it is clear Curtiss-Wright heads
into 2009 with great momentum.
Sincerely,
Martin R. Benante
Chairman and Chief Executive Officer
Curtiss-Wright 2008 Annual Report | 11
Key Investment Considerations
Sales by Market
Net Sales
Dollars in millions
’08
’07
’06
’05
’04
Defense [36%]
Commercial & Industrial [29%]
Energy [35%]
0
500
1,830
1,592
1,282
1,131
955
1,000
1,500
2,000
Operating Income
Dollars in millions
’08
’07
’06
’05
’04
0
40
80
197
179
141
138
110
120
160
200
Net Income
Dollars in millions
’08
’07
’06
’05
’04
109
104
81
75
65
0
20
40
60
80
100
120
Curtiss-Wright is proud of
our track record of financial
performance and confident
in our ability to deliver
shareholder value.
Our balanced diversification
between defense, energy and
commercial markets provides
stability for our investors
and opportunities for growth.
High-level planning and
attention to detail produce
the innovative, highly
engineered, mission-critical
products synonymous with
Curtiss-Wright. We apply a
similar level of commitment
to our financial strength,
which is why we are confident
in our future performance.
12 | Curtiss-Wright 2008 Annual Report
Historical Financial Performance
11 Year Review
For the years ended December 31, (In millions, except per share data; unaudited)
Performance
Net sales
Earnings before interest, taxes,
depreciation & amortization
Net earnings
Cash flow from operations
Earnings per share (1)
2008
2007
2006
2005
2004
2003
2002
2001
2000
1999
1998
1,830
1,592
1,282
1,131
955
746
513
343
330
293
249
272
109
180
244
104
139
191
81
144
186
75
105
152
65
105
121
52
84
90
45
90
118
63
61
82
41
24
78
39
81
58
29
25
Basic
Diluted
$2.45
$2.35
$1.84
$1.74
$1.53
$1.27
$1.11
$1.56
$1.03
$0.97
$0.71
$2.41
$2.32
$1.82
$1.72
$1.51
$1.25
$1.08
$1.54
$1.61
$0.96
$0.71
Dividends per share (1)
$0.32
$0.28
$0.24
$0.20
$0.18
$0.16
$0.15
$0.14
$0.13
$0.13
$0.13
Return on sales
6.0%
6.6%
Return on invested capital (2)
9.5% 10.3%
6.3%
9.9%
6.7%
9.6%
New orders
Backlog at year-end
2,232
1,679
1,870
1,304
1,333
1,261
876
806
6.8%
9.8%
999
628
7.0%
9.9%
743
506
8.8% 18.3% 12.5% 13.3% 11.7%
9.0%
8.8% 10.9% 11.4%
9.1%
478
479
327
242
299
183
296
213
232
198
Year-end financial position
Working capital
Current ratio
Total assets
Total debt
Stockholders’ equity
350
360
331
269
212
239
137
149
150
124
131
1.8 to 1 1.9 to 1 2.1 to 1 2.2 to 1 2.1 to 1 2.8 to 1 1.8 to 1 3.0 to 1 3.9 to 1 3.2 to 1 2.9 to 1
2,042
1,986
1,592
1,400
1,278
517
867
512
915
365
762
365
638
343
576
974
225
479
810
152
411
500
21
350
409
30
290
387
38
258
353
41
230
Stockholders’ equity per share (1)
$19.23 $20.51 $17.31 $14.68 $13.43 $11.52 $10.01
$8.68
$7.24
$6.43
$5.63
Other year-end data
Depreciation & amortization
Capital expenditures
Shares of stock outstanding at
December 31 (1) (3)
Number of registered
shareholders
Number of employees
74
104
63
54
51
40
48
42
41
33
31
33
19
35
15
19
14
10
13
20
10
11
45,065 44,593 44,023 43,492 42,876 41,572 41,090 40,300 40,068 40,160 40,764
6,193
7,968
6,331
7,471
6,762
6,233
7,069
5,892
7,460
5,599
7,768
4,655
8,034
4,244
9,898
2,625
3,602
2,286
3,854
2,267
3,926
2,052
Note: Amounts may not sum to the total due to rounding.
(1) Per share data for all years have been adjusted to reflect a 2-for-1 stock split on April 21, 2006 and December 17, 2003. CW Class B shares, which were
converted to CW common shares in May 2005, have the same split and dividend history as the CW common shares.
(2) Return on invested capital is net operating profit after-tax over average net debt plus equity.
(3) In 2001 CW issued Class B common stock, which was converted to common stock in 2005.
Stock Price Range
Dividends Per Share
2008
2007
Common
Common
High
Low
High
Low
First quarter
First quarter
$50.16
$37.65
$40.44 $32.79
Second quarter
Second quarter
Third quarter
Fourth quarter
52.96
56.07
45.37
41.30
41.62
24.80
48.46
50.26
56.79
37.77
42.55
47.15
Third quarter
Fourth quarter
2008
$0.08
0.08
0.08
0.08
2007
$0.06
0.06
0.08
0.08
Curtiss-Wright 2008 Annual Report | 13
Segment Information
Sales by Market
Motion Control
Embedded Computing
Ruggedized custom and commercial-off-the-shelf electronic boards and
subsystems for high-density data processing, as well as custom software design
and hardware manufacturing for aerospace, ground and naval defense markets.
Engineered Systems
Flight control actuation components and systems; weapons handling systems;
utility actuation; military vehicle turret aiming and stabilization; suspension
systems for military vehicles and high-speed trains; shipboard helicopter
handling systems; rotary sensors; pilot controls for defense, commercial and
industrial markets.
Integrated Sensing
Position, pressure and temperature sensors; smoke and ice detection sensors;
solenoids and solenoid valves; air data computers; flight data recorders; joysticks
for defense aerospace, commercial aerospace and industrial markets.
Naval Defense [14%]
Aerospace Defense [29%]
Ground Defense [23%]
Commercial
Aerospace [25%]
General Industrial [9%]
Sales by Market
Defense [10%]
Power Generation [5%]
Oil & Gas [7%]
Commercial
Aerospace [38%]
General Industrial [40%]
Metal Treatment
Shot Peening
Process for enhancing the durability and reliability of critical metal components
such as aircraft landing gear, turbine engine airfoils, automotive suspension
and transmission parts, critical fasteners and welded structural supports. Also
used to shape the aerodynamic curvatures of the wing skins of commercial and
business aircraft.
Laser Peening
Advanced peening process that utilizes a high-energy laser to impart a beneficial
layer of compressive stress on metal surfaces that is four times deeper than can
be achieved by traditional metal treatment processes to extend the service life of
high-value critical components. It also is proving to be a complementary service
to shot peening.
Specialty Coatings
Solid film lubricant and zinc rich coating services for sliding wear, anti-seizing
and corrosion resistance in automotive/transportation, commercial aerospace
and defense markets. Parylene coating services for providing lubricity; moisture
barrier resistance and biocompatibility in medical device and electronic markets.
Heat Treating
Precision thermal processing that subjects metal objects to extreme heat and/
or cold temperatures, improving overall strength, ductility and hardness of
components utilized in automotive/transportation, commercial aerospace, oil and gas,
power generation and defense markets.
14 | Curtiss-Wright 2008 Annual Report
Sales by Market
Naval Defense [22%]
Oil & Gas [33%]
Power Generation [31%]
General Industrial [14%]
Flow Control
Electro-Mechanical Systems
Highly engineered pumps, motors, generators, power conditioning electronics and
electronic control integration and protection solutions for defense, power generation,
oil and gas, and general industrial markets.
Commercial Power & Services
Design, manufacture, distribution and qualification of critical components and
related services for new build and operating commercial nuclear power plants, fossil
fuel plants, hydroelectric energy producers and the U.S. Department of Energy.
Oil & Gas Systems
Design and manufacture of valves, vessel products, valve automation and control
systems, coke de-heading systems and fluidic catalytic cracking unit components for
the oil and gas refining market.
Valve Systems
High-performance specialized valve solutions and web-enabled software that control
the flow of liquids and gases and prevent over-pressurization of vessels, pipelines and
equipment for defense, power generation, process and general industrial markets.
Control Systems
Specialized electronic instrumentation and control equipment, including custom
and commercial-off-the-shelf electronic circuit boards and systems for defense and
processing markets.
Segment Information
Twelve months ended December 31, (In millions)
2008
2007
% Change
Sales:
Flow Control
Motion Control
Metal Treatment
Total Sales
Operating Income:
Flow Control
Motion Control
Metal Treatment
Total Segments
Corporate & Other
Total Operating Income
Operating Margins:
Flow Control
Motion Control
Metal Treatment
Total Segments
Consolidated Margin
Note: Amounts may not sum to the total due to rounding.
Margins shown as basis point change.
928.0
638.1
264.0
1830.1
97.2
65.5
52.1
214.9
(18.3)
196.6
10.5%
10.3%
19.7%
11.7%
10.7%
746.3
591.0
254.8
1592.1
73.5
64.8
50.9
189.2
(10.0)
179.2
9.8%
11.0%
20.0%
11.9%
11.3%
24%
8%
4%
15%
32%
1%
2%
14%
(83%)
10%
63
bps
(69) bps
(23) bps
(14) bps
(52) bps
Curtiss-Wright 2008 Annual Report | 15
Report of Independent
Registered Public Accounting Firm
To the Board of Directors and Stockholders of
Curtiss-Wright Corporation
Parsippany, New Jersey
We have audited the consolidated balance sheets of
Curtiss-Wright Corporation and subsidiaries (the
“Company”) as of December 31, 2008 and 2007, and the
related consolidated statements of earnings, stockholders’
equity, and cash flows for each of the three years in the
period ended December 31, 2008. Such consolidated
financial statements and our report thereon dated March 2,
2009, expressing an unqualified opinion and includes an
explanatory paragraph regarding the Company’s adoption
of Statement of Financial Accounting Standard (SFAS) No.
158, Employers’ Accounting for Defined Benefit Pension
and Other Postretirement Plans—an Amendment of FASB
Statements No. 87, 88, 106 and 132(R) and has adopted
FASB Interpretation No. 48, Accounting for Uncertainty in
Income Taxes—An Interpretation of FASB Statement No.
109 on January 1, 2007 (which are not included herein)
appear under Item 8 of the Company’s Annual Report on
Form 10-K for the year ended December 31, 2008. The
accompanying condensed consolidated financial statements
are the responsibility of the Company’s management. Our
responsibility is to express an opinion on such condensed
consolidated financial statements in relation to the
complete consolidated financial statements.
In our opinion, the information set forth in the
accompanying condensed consolidated balance sheets as of
December 31, 2008 and 2007, and the related condensed
consolidated statements of earnings and of cash flows for
each of the three years in the period ended December 31,
2008, is fairly stated in all material respects in relation
to the consolidated financial statements from which it has
been derived.
Parsippany, New Jersey
March 2, 2009
16 | Curtiss-Wright 2008 Annual Report
Condensed Consolidated Statements of Earnings
For the years ended December 31, (In thousands, except per share data)
2008
2007
2006
Net sales
Cost of sales
Gross profit
Research and development costs
Selling expenses
General and administrative expenses
Operating income
Interest expense
Other income (expense), net
Earnings before income taxes
Provision for income taxes
Net earnings
Net earnings per share:
Basic earnings per share
Diluted earnings per share
Weighted average shares outstanding:
Basic
Diluted
Shares and per share amounts have been adjusted for the April 21, 2006 2-for-1 stock split.
$ 1,830,140
$ 1,592,124
$ 1,282,155
1,214,061
1,068,500
851,076
616,079
523,624
431,079
(49,615)
(107,308)
(47,929)
(92,129)
(38,841)
(76,547)
(262,594)
(204,382)
(175,063)
196,562
179,184
140,628
(29,045)
1,585
(27,382)
(22,894)
2,369
(112)
169,102
154,171
117,622
(59,712)
(49,843)
(37,053)
$ 109,390
$ 104,328
$ 80,569
$
$
2.45
2.41
$
$
2.35
2.32
$
$
1.84
1.82
44,716
45,374
44,313
43,826
44,979
44,334
Curtiss-Wright 2008 Annual Report | 17
Condensed Consolidated Balance Sheets
At December 31, (In thousands, except share data)
2008
2007
Assets:
Current assets:
Cash and cash equivalents
Receivables, net
Inventories, net
Deferred tax assets, net
Other current assets
Total current assets
Property, plant, and equipment, net
Prepaid pension costs
Goodwill
Other intangible assets, net
Deferred tax assets, net
Other assets
Total assets
Liabilities:
Current liabilities:
Short-term debt
Accounts payable
Accrued expenses
Income taxes payable
Deferred revenue
Other current liabilities
Total current liabilities
Long-term debt
Deferred tax liabilities, net
Accrued pension and other postretirement benefit costs
Long-term portion of environmental reserves
Other liabilities
Total Liabilities
Contingencies and Commitments:
Stockholders’ Equity:
Common stock, $1 par value, 100,000,000 shares authorized at December 31, 2008 and 2007;
47,903,187 and 47,714,719 shares issued at December 31, 2008 and 2007, respectively;
outstanding shares were 45,064,839 at December 31, 2008 and 44,593,011 at December 31, 2007
Additional paid-in capital
Retained earnings
Accumulated other comprehensive (loss) income
Less: Common treasury stock, at cost (2,838,348 shares at December 31, 2008 and 3,121,708
shares at December 31, 2007)
Total stockholders’ equity
Total liabilities and stockholders’ equity
18 | Curtiss-Wright 2008 Annual Report
$
60,705
$ 66,520
395,659
392,918
281,508
241,728
37,314
26,833
30,208
26,807
802,019
758,181
364,032
329,657
—
73,947
608,898
570,419
234,596
240,842
23,128
526
9,357
11,988
$ 2,042,030
$ 1,985,560
$
3,249
$
923
140,954
137,401
103,973
103,207
8,213
13,260
138,753
105,421
56,542
38,403
451,684
398,615
513,460
510,981
26,850
62,416
125,762
39,501
20,377
37,135
20,856
38,406
1,175,268
1,070,775
47,903
94,500
47,715
79,550
899,928
807,413
(72,551)
93,327
969,780
1,028,005
(103,018)
(113,220)
866,762
914,785
$ 2,042,030
$ 1,985,560
Condensed Consolidated Statements of Cash Flows
For the years ended December 31, (In thousands)
Cash flows from operating activities:
2008
2007
2006
Net Earnings
$ 109,390
$ 104,328
$ 80,569
Adjustments to reconcile net earnings to net cash provided by operating activities:
Depreciation and amortization
Net loss on sales and disposals of long-lived assets
Deferred income taxes
Share-based compensation
Changes in operating assets and liabilities, net of businesses acquired and disposed of:
Increase in receivables
Increase in inventories
Increase (decrease) in progress payments
Increase in accounts payable and accrued expenses
Increase in deferred revenue
(Decrease) increase in income taxes payable
Increase in net pension and postretirement liabilities
Decrease (increase) in other current and long-term assets
(Decrease) increase in other current and long-term liabilities
Total adjustments
Net cash provided by operating activities
Cash flows from investing activities:
Proceeds from sales and disposals of long-lived assets
Acquisitions of intangible assets
Additions to property, plant, and equipment
Acquisition of new businesses, net of cash acquired
Net cash used for investing activities
Cash flows from financing activities:
Borrowings of debt
Principal payments on debt
Proceeds from exercise of stock options
Dividends paid
Excess tax benefits from share-based compensation
Effect of exchange-rate changes on cash
Net (decrease) increase in cash and cash equivalents
Cash and cash equivalents at beginning of year
Cash and cash equivalents at end of year
Supplemental disclosure of investing activities:
74,251
62,699
50,791
804
(6,370)
388
486
(8,144)
(11,419)
13,663
10,912
6,621
(20,230)
(46,564)
8,227
8,582
(63,998)
(50,290)
(2,274)
(20,489)
(11,245)
(7,024)
31,078
15,643
33,332
53,065
32,647
(4,044)
11,416
2,250
(4,886)
(6,020)
5,540
(2,668)
4,520
1,207
2,982
(2,667)
5,769
70,431
34,808
63,302
179,821
139,136
143,871
8,143
(311)
(103,657)
174
(3,722)
(54,433)
(48,557)
(289,348)
(144,382)
(347,329)
776
(1,664)
(40,202)
(39,522)
(80,612)
598,000
751,500
240,000
(622,580)
(604,560)
(240,058)
9,905
(14,381)
1,544
(13,742)
(5,815)
9,661
8,616
(12,440)
(10,538)
2,590
3,445
1,885
(95)
2,332
(57,997)
65,496
66,520
124,517
59,021
$
60,705
$ 66,520
$ 124,517
Net cash (used for) provided by financing activities
(27,512)
146,751
Fair value of assets acquired from current year acquisitions
$ 133,159
$ 315,842
$ 42,417
Additional consideration (received) paid on prior year acquisitions
Liabilities assumed from current year acquisitions
Cash acquired
(1,447)
(75,156)
(7,999)
9,433
(35,706)
(221)
4,546
(7,424)
(17)
Acquisition of new businesses, net of cash acquired
$
48,557
$ 289,348
$ 39,522
Curtiss-Wright 2008 Annual Report | 19
Shareholder Information
Corporate Headquarters
10 Waterview Boulevard, 2nd Floor
Parsippany, New Jersey 07054
www.curtisswright.com
Tel: (973) 541-3700
Annual Meeting
The 2009 annual meeting of stockholders will be held on May 8,
2009, at 10:00 a.m. at the Parsippany Sheraton Hotel, 199 Smith
Road, Parsippany, New Jersey 07054.
Stock Exchange Listing
The Corporation’s common stock is listed and traded on the New
York Stock Exchange under the symbol CW.
Common Shareholders
As of December 31, 2008, the approximate number of holders
of record of common stock, par value of $1.00 per share of the
Corporation was 6,193.
Stock Transfer Agent and Registrar
For services such as changes of address, replacement of lost
certificates or dividend checks, and changes in registered
ownership, or for inquiries as to account status, write to American
Stock Transfer & Trust Company at 59 Maiden Lane, New
York, New York 10038. Please include your name, address,
and telephone number with all correspondence. Telephone
inquiries may be made to (800) 937-5449 or (212) 936-5100
internationally. Internet inquiries should be directed to
www.amstock.com. Hearing-impaired shareholders are invited to
log on to the website and select the Live Chat option.
Directors
Martin R. Benante
Chairman of the Board of
Directors
S. Marce Fuller
Former President and
Chief Executive Officer of
Mirant Corporation, Inc. (formerly
known as Southern Energy, Inc.)
Director, Earthlink, Inc.
Dr. Allen A. Kozinski
Former Vice President of Global
Refining of British Petroleum PLC
Carl G. Miller
Former Chief Financial Officer
of TRW, Inc.
William B. Mitchell
Trustee, Mitre Corporation
Former Vice Chairman of Texas
Instruments Inc.
John R. Myers
Former Chairman and
Chief Executive Officer of
Tru-Circle Corporation
Management Consultant
Former Chairman of the Board
of Garrett Aviation Services
John B. Nathman
Admiral, U.S. Navy (Ret.)
Dr. William W. Sihler
Ronald E. Trzcinski Professor of
Business Administration
Darden Graduate School of
Business Administration
University of Virginia
Albert E. Smith
Chairman of Tetra Tech., Inc.
Former Executive Vice President
and Officer of Lockheed Martin
Corporation
20 | Curtiss-Wright 2008 Annual Report
Direct Stock Purchase Plan/Dividend Reinvestment Plan
A plan is available to purchase or sell shares of Curtiss-Wright
common stock. The plan provides a low-cost alternative to the
traditional methods of buying, holding, and selling stock. The plan
also provides for the automatic reinvestment of Curtiss-Wright
dividends. For more information, contact our transfer agent, American
Stock Transfer & Trust Company toll free at (877) 854-0844.
Investor Information
Investors, stockbrokers, security analysts and others seeking
information about Curtiss-Wright Corporation should contact
Alexandra M. Deignan, Director of Investor Relations, at the
Corporate Headquarters listed above.
Shareholder Communications
Any stockholder wishing to communicate directly with our
Board of Directors should write to Dr. William W. Sihler
at Southeastern Consultants Group, LTD, P.O. Box 5645,
Charlottesville, Virginia 22905.
Financial Reports
This brochure includes some of the periodic financial information
required to be on file with the Securities and Exchange
Commission. The Corporation also files an Annual Report on Form
10-K, a copy of which may be obtained free of charge. These
reports, as well as additional financial documents such as quarterly
shareholder reports, proxy statements, and quarterly reports on
Form 10-Q, may be obtained by written request to Alexandra
M. Deignan, Director of Investor Relations, at the Corporate
Headquarters, or at the Corporation’s website
www.curtisswright.com.
Officers
Martin R. Benante
Chief Executive Officer
David C. Adams
Co-Chief Operating Officer
David J. Linton
Co-Chief Operating Officer
Edward Bloom
Vice President
Glenn E. Tynan
Vice President and
Chief Financial Officer
Michael J. Denton
Vice President,
General Counsel and
Corporate Secretary
Harry Jakubowitz
Vice President and
Treasurer
Glenn Coleman
Vice President and
Corporate Controller
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Curtiss-Wright 2008 Annual Report | IBC1
Curtiss-Wright Corporation
10 Waterview Boulevard
Parsippany, New Jersey 07054
www.curtisswright.com
Curtiss-Wright 2008 Annual Report | BC1