Curtiss-Wright Annual Report 2010

FY2010 Annual Report · Curtiss-Wright

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Uniquely Positioned for

Growth

2010 BUSINESS OVERVIEW 1

2010 BUSINESS OVERVIEW
2010 BUSINESS OVERVIEW

2 2010 BUSINESS OVERVIEW

Curtiss-Wright continually invests in the advanced technologies,
physical facilities, equipment and talent needed to maintain
a global leadership position in our core defense, energy and
commercial/industrial markets.

We are developing technologies that enhance our ability to deliver future generations of
systems and products for high-performance platforms in our markets. We are expanding
our capacity to meet the breadth of offerings and rigorous quality standards our customers
require. We are broadening our global footprint to stay aligned with our customers, and our
leadership and management development initiatives ensure our people have the skills and
expertise to be successful.

This is why Curtiss-Wright is uniquely positioned for growth.

Table of Contents

Letter to Shareholders

Technology Advancement

Facility Enhancement

Talent Development

Segment Information

Historical Financial Performance

Auditor’s Opinion

Consolidated Statements of Earnings

Consolidated Balance Sheets

Consolidated Statements of Cash Flows

2010 BUSINESS OVERVIEW 1

Power Generation
Curtiss-Wright plays a vital role in the nuclear energy
market by supplying critical equipment to support both
existing and new nuclear power plants worldwide. Our
reactor coolant pumps for the AP1000TM Generation III+
nuclear power plants are the largest, most advanced
canned motor pumps ever produced.

Aerospace Defense
Through our embedded computing technology, we
are at the forefront of Intelligence, Surveillance and
Reconnaissance platforms such as the Global Hawk
unmanned aerial vehicle, for which our integrated
sensor and mission management systems essentially
serve as the operational brain of the aircraft.

Oil and Gas
For oil and gas processing, we improve the reliability,
effi ciency and safety of catalytic cracking processes
with our large reactors and high-temperature slide
valves and for delayed coking processes with our
coke drum unheading devices, actuator systems and
process control technologies.

Naval Defense
An advanced arresting gear system will be providing
enhanced safety, reduced maintenance and improved
fl exibility to the U.S. Navy’s carrier fl eet in the years
ahead. Curtiss-Wright applied its expertise in electric
motors to develop and supply a key component of
this system.

Commercial Aerospace
Curtiss-Wright improves the fatigue life of turbine
engine components and forms the complex
aerodynamic shapes of commercial aircraft wing
skins through our shot peening and advanced
laser peening services.

2 2010 BUSINESS OVERVIEW

Dear Shareholders:

2010 served as a year of transition for
Curtiss-Wright. As a company that was
founded on innovation, advanced technologies
and high-performance engineering, we were
faced with the daunting task of overcoming
one of the most challenging economic periods
in history.

With a management team intensely focused
on driving execution and controlling costs,
we ended 2010 with strong profi tability and
a solid base upon which we can continue
to grow our business. We also continued to
build our company through acquisitions,
strategic investments, facility expansions
and consolidations, all of which, we believe,
strengthened our overall competitiveness.
It is our continued drive that enabled us
to weather the downturn, and we have
emerged a stronger company.

We are truly a global company, with
international sales now representing 30% of
our total business, and our diversifi cation
remains a key component of our long-term
success. When combined with our focus on
innovation and advanced technologies, the
expansion of our global footprint and our
continuous leadership and management
development initiatives, it is clear why we
believe we are uniquely positioned for growth.

in our general industrial, naval and aerospace
defense and commercial aerospace markets,
all of which produced double-digit increases
over the prior year. Despite the increased
demand, we did encounter a few challenges,
including large defense program cancellations
that negatively impacted our defense
businesses and the continued slowness in the
oil and gas market.

Improving operating effi ciency is a continual
priority at Curtiss-Wright. We succeeded in
growing our operating margin slightly to 9.5%
with strong contributions from each of our
three segments, despite the signifi cant impact
that foreign exchange had on our operating
results. Although our margins are not yet
back to our peak levels from a few years ago,
our ongoing cost reduction and restructuring
initiatives, many of which began in 2009,
have led to a leaner, more effi cient company,
and we intend to continue to take strides to
improve our profi tability going forward.

2010 Performance
We concluded 2010 with strong profi tability
across our segments, as our profi t once again
grew faster than sales.

Net earnings of $107 million, or $2.30 per fully
diluted share, refl ect a 12% increase from the
prior year. We also generated signifi cant free
cash fl ow of $119 million.

Net sales of $1.89 billion represented a 5%
increase from the prior year, primarily driven
by a solid rebound in our commercial markets,
which are more sensitive to economic
conditions. Our sales were led by strong gains

We fi nished the year with a solid backlog of
nearly $1.7 billion, driven by an 11% increase
in new orders, setting the stage for future
sales and allowing us to stay on the path
towards continuous, long-term growth.

Martin R. Benante, Chairman and Chief Executive Offi cer

Focus on our Technology, Facilities
and Talent Development
There is always the temptation in diffi cult
economic times to reduce spending on
innovation, capacity and people, a course
of action that all too frequently can leave
a company unprepared to participate
effectively when conditions improve. Our
strong fi nancial position and the effi ciency
of our product-development programs
enabled us to preserve our tradition of
innovation despite the tough economy.

The heart of our technological innovation
is knowing what our customers want today
and will require tomorrow, an understanding
grounded in our history of long-standing
relationships with our global customers.
We have a long and successful history of
putting together in timely fashion the right
components for future success through new
development, acquisition or partnership.

For example, we are building a $36 million,
state-of-the-art manufacturing facility to
produce large, thick-walled vessels, such
as coke drums, fractionators, fl uid catalytic
cracking units and hydrotreaters, to serve
our future growth in the refi ning, chemical
and nuclear power industries. We also made
a pair of small but important acquisitions
within our Motion Control business that
signifi cantly enhance our capabilities in

Net Sales
Dollars in millions

1,830

1,810

1,893

1,592

1,282

$2,000

$1,500

$1,000

$500

Operating Income
Dollars in millions

$200

197

179

180

169

$150

141

$100

$50

2010 BUSINESS OVERVIEW 3

Net Income
Dollars in millions

109

104

107

$120

$90

$60

$30

’06

’07

’08

’09

’10

’06

’07

’08

’09

’10

’06

’07

’08

’09

’10

advanced defense electronics and improve
the company’s portfolio of products
serving Intelligence, Surveillance and
Reconnaissance (ISR) applications.

We accelerated our talent-development
initiatives last year through leadership-
development programs aimed at promoting a
common culture and providing the necessary
tools and skills to align with and execute the
company’s vision and strategies. Our programs
recognize that talent and imagination are
crucial to success.

Focus on our Strategic Markets
In defense, we experienced 3% growth,
led by sales to the U.S. Navy as it began
expansion of its submarine fl eet and
production on a new aircraft carrier. We also
benefi ted from higher demand in aerospace
defense for our embedded computing and
sensors and controls products, principally
for ISR applications on the Global Hawk and
other unmanned aerial vehicles as well as
various helicopter programs. Our strategic
diversifi cation and strong positions on key
defense programs enabled us to offset some
of the expected weakness related to the
termination of the Future Combat Systems
and F-22 programs, signifi cantly lower
Bradley sales due to reduced modernization
efforts and the completion of the DDG1000
program. Overall, we were relatively pleased

with our performance in 2010, as we
overcame numerous headwinds facing the
defense industry.

In our commercial markets, our 6% growth
stemmed from an economy that continued
to show signs of improvement. The largest
benefi ciary of this turnaround was our general
industrial market, which generated a solid
increase of 18%, aided by strong sales to the
automotive industry. Commercial aerospace
was another bright spot in 2010, as we
benefi tted from increased orders from Boeing
and Airbus. Our energy markets remained
mixed, as strong sales related to maintenance
and upgrades on various projects throughout
our power generation and oil and gas markets
were mainly offset by lower capital spending
worldwide on larger projects.

Diversifi cation is paramount to our overall
success and to our ability to overcome
several end-market pressures. We remain well
positioned within our core markets and well
capitalized to capture future opportunities.
We continue to strategically invest in both
our technologies and select acquisitions in
order to fortify our business portfolio.

We also maintained our annual dividend,
refl ecting the Board’s confi dence in
our ability to continue to generate
earnings growth and provide a consistent
distribution of value to our shareholders.

In Recognition
It is with sincere best wishes that we
announce the retirement of our colleague and
close friend William B. Mitchell from our Board
of Directors. Bill has been an integral member
of our Board for 15 years, providing a wealth
of insight and vital counsel, as we guided the
company through diversifi cation and growth.
For the past 11 years, he served as Chair of
the Finance Committee and a member of the
Executive Compensation Committee. We also
say farewell to Carl G. Miller, who departs
from our Board of Directors after seven years
of valuable counsel. During his tenure, Carl
served as a dedicated member of our Audit and
Finance Committees. I personally would like
to thank Bill and Carl for their dedication and
service to Curtiss-Wright and wish them well in
their future endeavors.

As we look to 2011, I remain confi dent
that Curtiss-Wright is uniquely positioned
for growth in all of our end markets and
committed to enhancing shareholder value.

Martin R. Benante
Chairman and Chief Executive Offi cer

Uniquely Positioned for Growth through
4 2010 BUSINESS OVERVIEW
Technology Advancement

Curtiss-Wright is renowned for its innovation and advanced technologies.
Always adaptive, we focus the expertise of our Flow Control, Motion
Control and Metal Treatment businesses on the unique demands the
21st century presents to our customers.

2010 BUSINESS OVERVIEW 5

We take a comprehensive approach to technology development,
ever mindful that new technology widens our opportunities
and expands our potential for growth. Our close, long-standing
relationships with customers across industries and geographies
provide insight into their current and future needs. Moreover,
we also seek to leverage our success by broadening our footprint
within key growth markets and continually look to apply our
technology to adjacent markets.

The richness of Curtiss-Wright’s technology portfolio can be seen
through the benefi ts it brings to key parts of our customers’ most
vital programs.

Our defense products are critical components in a wide variety of
air, sea and ground platforms in new development programs, those
currently in production and for upgrades and replacement orders.

Curtiss-Wright supplies a wide variety of advanced products on
numerous platforms that support the ISR functions of collection,
communication, processing and presentation of information of
interest that supports military users. Examples of our involvement
in ISR systems include unmanned aerial vehicles (Global Hawk),
dedicated ISR manned airborne platforms (P-8A Poseidon Multi-
mission Maritime Aircraft) and tactical fi ghter aircraft (F-35 Joint
Strike Fighter).

On manned aircraft, Curtiss-Wright provides critical fl ight-control
actuation systems and stealth-capable weapons bay door systems.
Our video displays, recorders and video/radar converters enable
observers and pilots to select, view and record the images they
need simply and with maximum fi delity. Military, police, search and
rescue, border protection, coast guard and customs personnel use
our video systems on helicopters in a variety of countries.

Recovery of information recorded by our Crash Survivable
Memory Unit assists air accident investigators in determining
the events leading up to an incident. To protect the solid-state
memory that performs this critical function, Curtiss-Wright
designs each recorder to withstand the harshest operating
conditions, whether that means withstanding a 5,000-pound
crushing force, enduring one hour engulfed by a 2,000ºF fl ame
or being submerged in 20,000 feet of water.

For more than 50 years, Curtiss-Wright has supplied critical
components and systems to the U.S. Navy’s nuclear-powered ships.
Our pumps, valves, generators, motors and control systems are
aboard nuclear-powered submarines and aircraft carriers throughout
the Navy’s fl eet. We have earned a reputation that will enable us
to play a critical role as the Navy begins work on a planned class
of 12 next-generation Ohio-class ballistic missile submarines to
replace 14 mature submarines.

The Broad Area Maritime Surveillance Unmanned Aircraft System
(BAMS UAS) will provide the U.S. Navy with a persistent maritime
Intelligence, Surveillance and Reconnaissance system to protect
the fl eet and the capability to detect, track, classify and identify
maritime and littoral targets. Curtiss-Wright supports this signifi cant
defense platform by supplying the Advanced Mission Management
System for the aircraft.

6 2010 BUSINESS OVERVIEW

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A recognized leader in the design, development, manufacture and
integration of motion and fi re controls, Curtiss-Wright technology
is widely represented in the most advanced military ground vehicle
electronics platforms, from individual components to integrated
subsystems. Our technologies play a prominent role in such key
platforms as the M1A2 Abrams main battle tank, the Bradley
Fighting Vehicle, the Stryker Mobile Gun System, the Hoefyster
modular fi ghting vehicle and the Pizarro fi ghting vehicle.

We are actively advancing electronic systems and motion control
technologies for tomorrow’s sophisticated defense platforms. From
intelligent power controllers and vehicle power distribution to
network-centric, open-system electronics architectures that reduce
size, weight and power consumption, Curtiss-Wright is poised to
offer solutions for the evolving needs in the next generation of
modern ground combat vehicles.

To address the threat to service personnel posed by buried,
unexploded ordnance, U.S., European and Southeast Asian military
customers are using our advanced Ground Penetrating Radar (GPR)
technology. GPR uses microwave radar pulses to generate high-
resolution, three-dimensional images of buried objects, ideal for
the identifi cation of unexploded ordnance as well as variations in
subsurface structures.

(Above Left) Our Skyquest video management system
(VMS) maximizes the effectiveness of airborne ISR
missions by enabling multiple operators to view, control
and record live video and mapping information in
helicopters. Our VMS has been chosen by leading security
forces and militaries the world over, including the U.S.
Army for its new Lakota light utility helicopter fl eet.

(Above) The U.S. Marine Corps will deploy the Sikorsky
CH-53K from amphibious platforms to transport
personnel and equipment and carry heavy external
cargo loads. Curtiss-Wright transducers will be used in
the fl y-by-wire systems that control the helicopter’s
main and tail rotors. Our data concentrator units
will receive and provide various discrete, digital and
analog inputs for monitoring, processing data and
controlling various subsystem components. Our blade
fold technology will process the required information
to execute the folding or spreading of the main rotor
blades, key to the CH-53K’s compatibility for effective
shipboard deployment.

(Right) Curtiss-Wright’s Ground Penetrating Radar
can detect unexploded ordnance and variations
in subsurface structures. When equipped with a
realtime view feature, operators can view data within
milliseconds of the initial GPR capture.

(Below) This wound stator core is an integral
component for one of the largest motors
manufactured by Curtiss-Wright. It will be part of
the AP1000TM reactor coolant pump (RCP), one of
the largest canned motor pumps manufactured in
the world. These RCPs are highly reliable, low-
maintenance, hermetically sealed motor pumps that
circulate reactor coolant through the reactor core,
loop piping and steam generators for the AP1000TM
nuclear power plant design.

2010 BUSINESS OVERVIEW 7

Curtiss-Wright’s fl ow control expertise positions
us well as industries and nations seek the most
advanced technology with which to build or
upgrade their critical energy infrastructure.
Curtiss-Wright is the world’s premier designer and
builder of reactor coolant pumps, supporting the
future of nuclear power generation. With rising
interest in non-fossil fuel energy sources, demand
for upgrading existing and building new nuclear
plants is rising around the globe. In support of
the new nuclear plant revival, we are on schedule
to deliver the world’s largest canned motor reactor
coolant pumps for use in the Westinghouse
AP1000TM nuclear power plants, under construction
in China, by the end of 2011.

A key issue for operators of nuclear facilities
is managing their growing stockpile of spent
nuclear fuel. We are a leader in spent fuel storage

8 2010 BUSINESS OVERVIEW

technology, supplying products and services that extend the
safe and useful life of spent fuel pools and addressing regulatory
requirements related to the safe, effi cient operation of nuclear
power plants.

Curtiss-Wright’s product portfolio for the oil and gas market has
evolved from that of a customized component supplier to an
integrated system provider — important to both new refi neries
in emerging markets and mature facilities. The success of our
coke-drum unheading system for the delayed coking process has
stimulated demand for our other related technologies, including
isolation valves, cutting tools to remove coke and control
and automation systems that manage coker operations. Our
integrated solutions optimize operations and enhance safety for
our customers.

Advances in equipment performance bring with them greater
demands on component materials, and nowhere is this more

(Left) Curtiss-Wright is a leading authority and supplier of
critical components needed to maintain the effi cient, safe
operation of nuclear power plants around the world. We
provide unique spent nuclear fuel management products and
services, including a patented neutron-absorbing product,
the NETCO-SNAP-IN® insert, that extends the useful life of
fuel storage racks submerged in spent fuel pools.

(Below) With an engineering legacy that originated
with Glenn Curtiss and the Wright brothers, Curtiss-Wright
technology is found on the latest generation of commercial
airliners.

In collaboration with some of the world’s leading aerospace
partners, Curtiss-Wright is supporting Boeing’s 787
“Dreamliner” — the world’s fi rst major aircraft to use
composite materials for a majority of its structure — by
supplying the large cargo door mechanisms, aft strut fairing
module, linear and rotary position sensors for primary and
secondary fl ight controls, solenoids and components for nose
wheel steering control and the environmental control system.

For the Airbus A380 — the world’s largest commercial
aircraft — Curtiss-Wright shot peens structural
components, including the wing skins, ribs, spars and
stringers. We also supply the cabin pressure relief valve
actuators, linear position sensors and solenoids.

2010 BUSINESS OVERVIEW 9

apparent than with aerospace technology. By
capitalizing on our metal treatment expertise,
original equipment manufacturers can signifi cantly
improve the stress limits and fatigue life of critical
airframe structures and turbine engine components.
Advancements in our laser peening technology will
enable us to establish a mobile laser peening facility
in Southern California in 2011 to provide services
directly on the F-22 Raptor aircraft structure. Similar
mobile laser peening units will be deployed in
Singapore and elsewhere in the Far East to support
that region’s growing turbine engine manufacturing
infrastructure.

Technological advancements require more than just
operational excellence. We have continued to make
major investments in new technologies and products,
and we have simultaneously deepened and expanded
the reach of our core competencies.

(Above) Currently undergoing in-store
testing with an international home
improvement center retail chain, the
MicroBlend Automated Paint Machine™
system is a revolutionary approach to the
paint sales process. The system ensures
greater process repeatability and more
effi cient dispensing of paint for retailers,
while providing customers with superior
color matching, greater color selection
and faster service. Custom automated
controls and software from our Benshaw
business unit are integral to reducing the
system’s setup time, improving process
consistency and safeguarding accuracy.

(Right) Parylene coatings applied by
Curtiss-Wright are utilized by the medical
device industry on coronary artery stents,
rubber/silicone seals and wire forming
mandrels used in the manufacture of
catheters. The coating has unique
end-use properties of lubricity, moisture
impermeability, solvent resistance and
biocompatibility. Parylene coatings are also
used in electronic, oil and gas and general
industrial applications.

Uniquely Positioned for Growth through
10 2010 BUSINESS OVERVIEW
Facility Enhancement

Market leadership requires investment of capital in the construction
of new facilities that are compatible with new technologies as well
as expansion of existing operations to meet increased demand and to
improve productivity.

Curtiss-Wright’s new state-of-the-art manufacturing facility is
strategically located to supply large vessels and valves for the global
oil and gas, petrochemical, power, water, desalination and chemical
industries. The Texas site spans 12 acres, is located near convenient
barge transportation and includes a 118,000-square-foot manufacturing
facility that will house some of the most modern machining and
fabrication equipment available.

The facility is capable of producing pressure vessels up to 38 feet in
diameter inside the building, with unlimited size restraints in the lay-down
yard. This expanded capacity will provide the fl exibility to expand into new
products and markets, increase our competitiveness on large-scale refi nery
projects and enhance our global market reach.

2010 BUSINESS OVERVIEW 11

Investment fuels both our adoption of the latest production
technologies to maintain high effi ciencies and the opening
of facilities in new geographic markets that are served more
effi ciently on a local basis. Investment in expansion is a
competitive advantage in growing and high-value markets.

A new, state-of-the-art facility in Texas will be Curtiss-Wright’s
manufacturing center of excellence for the construction of super
vessels, thick-walled pressure vessels, reactors and hydrotreaters and
for modular fabrication in support of the global oil and gas industry.
This facility will increase our manufacturing capacity and reduce our
costs, while improving our overall competitiveness and expanding
our product offerings. The commitment to build this facility, which is
scheduled to open in 2011, demonstrates the critical role that energy
markets will play in our future growth.

Curtiss-Wright supports the growth of manufacturing in rapidly
developing economies by establishing local surface treatment
capabilities. Our Metal Treatment facility in Jiangsu Province,
China, serves the aerospace, automotive, medical and chemical
industries in and around the industrial center in Shanghai with
controlled shot peening services, as well as advanced lubrication
and corrosion protection coatings technology.

Our new surface treatment facility in Galway, Ireland, supports
that country’s signifi cant medical device industry. This new
facility offers parylene coatings technology, wherein thin
polymeric coatings are applied in vacuum chamber environments.
These biocompatible coatings provide moisture and electrical
protection for medical as well as electronic devices. After
originally adding this technology to our portfolio of services
through an acquisition, we are migrating the parylene coating
capability to other sites in the U.S. to capitalize on geographic
market opportunities.

A key part of success requires a strong commitment to developing
capabilities in-country and building long-term relationships in
target global markets.

Along with a new sales offi ce in Shanghai, a new business center
in Suzhou, China, supports our rapidly expanding Motion Control
presence and activities in China and throughout the Far East.
Our 23,000-square-foot Suzhou facility will signifi cantly enhance
our ability to deliver locally manufactured products to industrial
and aerospace customers and thereby strengthen our global
competitiveness in the motion control market.

Likewise, the Curtiss-Wright Flow Control segment is opening
a sales offi ce in the China World Center in Beijing to facilitate
better access to key customers in the commercial nuclear, oil
and gas and petrochemical industries.

12 2010 BUSINESS OVERVIEW

Our Flow Control segment is also consolidating the motor controls
and drives operation in Shanghai into its existing facility in Tianjin,
China. This strategic integration will better position the company
for increased customer support and continued growth in China. The
Flow Control operation in Tianjin earned ASME certifi cation for its
spring-loaded and pilot-operated pressure relief valves, allowing
valves manufactured, set and tested within China to be sold into any
market requiring ASME certifi cation.

In North America, Motion Control’s Embedded Computing
division completed a signifi cant expansion at its Ottawa,
Ontario, manufacturing facility, adding 30,000 square feet
of space to accommodate an expansion of engineering and
production capabilities.

In response to unprecedented growth in the digital signal
processing and high-density processing product lines,
Embedded Computing also relocated its headquarters to a new

(Right) Benshaw is a market leader in supplying critical motor control and protection
solutions for leading OEMs and industrial customers. This business unit has reinforced our
competitive position by integrating all facets of its U.S.-based manufacturing process —
previously dispersed among fi ve different locations — into a single 183,000-square-foot
facility. Benshaw now designs, develops, manufactures and delivers its advanced industrial
motor controls and drives from one lean, state-of-the-art environment.

(Below) In 2010, Curtiss-Wright opened a new dedicated coating facility in Galway,
Ireland, to service the U.K. region’s medical device industry. The facility has the
capability to apply parylene coatings in a clean room environment to a broad variety
of medical device components. We now offer specialty parylene conformal coatings in
fi ve North American and European facilities.

2010 BUSINESS OVERVIEW 13

(Above) The Metal Treatment facility in China successfully achieved
Nadcap accreditations in 2010 for Surface Enhancement and Chemical
Processing. These approvals demonstrate the facility’s ability to meet
the demanding quality system and process control requirements of the
international aerospace community. By combining shot peening and
coating application processes in one plant, Curtiss-Wright’s Suzhou,
China, facility provides its aerospace customers with a “one-stop shop”
for surface treatment services.

(Left) Our Integrated Sensing division is upgrading the CNC machining
infrastructure at its Tempe, AZ facility to reduce costs through
effi ciency improvements while increasing capabilities. This initiative,
along with a lean and continuous improvement culture, will continue to
enhance our manufacturing leadership for the aerospace market.

20,000-square-foot facility in Ashburn, VA that is strategically
located closer to a number of key customers.

Motion Control’s Electronic Systems division completed an
expansion at its Littleton, MA facility to accommodate the
integration of the Hybricon engineered electronic packaging
group acquired in June 2010.

To meet increasing demand from our commercial aerospace,
defense and industrial customers, we expanded our Integrated
Sensing division’s manufacturing facility in Nogales, Mexico,
adding 26,000 square feet of space to the existing facility, which
is ISO 9002 and AS9100 certifi ed.

Our capital investments refl ect our history of adapting to
changing demand by continually reshaping our facilities’
infrastructure in order to meet the critical current and future
advanced needs of our global customers.

14 2010 BUSINESS OVERVIEW

Uniquely Positioned for Growth through
Talent Development

Curtiss-Wright is accelerating its talent development through a variety
of programs to ensure that the organization’s skills and knowledge
keep pace with the continuing expansion of our businesses.

2010 BUSINESS OVERVIEW 15

Curtiss-Wright created an in-depth curriculum designed to accelerate
leadership development and promote a common culture. The
leadership development curriculum provides leaders at every level
with new tools and skills to align with and execute the company’s
vision and strategies. Since these programs began in 2007, more
than 800 participants have attended one or more sessions.

We also develop leadership competencies that tie to the company’s
values and success profi les for every leadership role. A key
component of this initiative is an Executive Leadership Development
Program, in which over 100 high-potential employees have
participated. The program provides insight into each individual’s
leadership style by utilizing assessment tools in conjunction with
personalized coaching.

Other programs focus on enhancing our core capabilities and raising
the performance of critical functions, such as project management,
to the next level through the creation of professional development
programs. To date, nearly 300 executives, line managers and project
managers have attended one or more of the programs offered.

Curtiss-Wright’s Technical Fellow Program aims to develop and retain
in-house expertise to support current and future organizational
objectives, and to better position the company to respond to future
technical challenges. The program recognizes technical experts
who are authorities in specifi c engineering fi elds that are of major
importance to Curtiss-Wright. This program allows the company
to leverage expertise more effectively while providing program
participants the opportunity for high‐level career growth and
development outside of the management stream. These individuals
represent the top-tier of engineering excellence, matching industry
benchmarks and standards.

In addition, we tailor talent development programs to support the
more localized nature of some of our operating facilities. Facility-based
education and training programs focus on increasing productivity,
energy effi ciency and safety. They incorporate use of visual
management, lean manufacturing techniques and the development of
more effi cient equipment designs to streamline part fl ow and decrease
turn times. All activities support a culture of continuous productivity
improvement, which is critical to maintaining a competitive advantage
in quality, price and turn times.

As exemplifi ed by legendary aviation pioneers Glenn Curtiss and the
Wright brothers, engineering is based on knowledge, technical skill
and imagination. In that tradition, Curtiss-Wright continues to take
the actions needed to maintain and expand our employees’ capacity
for professional excellence in the face of the world’s most critical
business and engineering challenges.

Our success depends on acute business knowledge,
engineering innovation, refi ned technical skills and
imagination. Curtiss-Wright is continually focused on
maintaining and expanding our employees’ capacity for
professional excellence through rigorous programs that
nourish individual talent, expand team effectiveness,
leverage experience and knowledge and enhance
technical and management skills.

16 2010 BUSINESS OVERVIEW

Segment Financial Information

Year ended December 31, (In millions; unaudited)

2010

2009

Change

Sales

Flow Control

Motion Control

Metal Treatment

Total Sales
Operating Income

Flow Control

Motion Control

Metal Treatment

Total Segments

Corporate and Other

Total Operating Income
Operating Margins

Flow Control

Motion Control

Metal Treatment

Total Segments

Consolidated Margin

Note: Amounts may not add to the total due to rounding.

$1,024.8

647.0

221.3

$985.2

621.0

203.5

$1,893.1

$1,809.7

104.4

80.4

25.8

210.6

(30.8)

$179.8

10.2%

12.4%

11.7%

11.1%

9.5%

92.7

80.9

19.9

193.6

(24.2)

$169.3

9.4%

13.0%

9.8%

10.7%

9.4%

4.0%

4.2%

8.7%

4.6%

12.6%

(0.7%)

29.9%

8.8%

27.1%

6.2%

80 bps

(60) bps

190 bps

40 bps

10 bps

Segment Information
Flow Control

Specializes in the design and manufacture of highly
engineered valves, pumps, motors, generators, electronics,
systems and related products that regulate the fl ow of
liquids and gases in severe service environments in power
generation, oil and gas processing, naval defense and general
industrial applications. Divisions include:

Electro-Mechanical Systems
High-performance pumps, motors, generators, power conditioning
electronics, electronic control integration and protection solutions.

Nuclear Group
Engineered solutions supporting critical components, systems
integration, qualifi cation/dedication and related services that
set the standard for safety, quality and high performance on
operating reactors and for new plant construction.

Oil & Gas Systems
Design and manufacture of valves, vessel products, valve
automation and control systems, coke unheading systems and
fl uidic catalytic cracking unit components. Specialized valve
solutions and web-enabled software that control the fl ow of
liquids and gases and prevent over-pressurization of vessels,
pipelines and equipment.

Marine & Power Products
Specialized valves that control the fl ow of liquids and gases and
prevent over-pressurization of equipment. Shipboard helicopter
and cable handling systems. Electronic instrumentation and
control equipment, including custom and commercial off-the-
shelf electronic circuit boards and systems.

2010 BUSINESS OVERVIEW 17

Electro-Mechanical Systems
Reactor Coolant Pump

Nuclear Group
Performance Hardware and Software

Oil & Gas Systems
Fractionator

Marine & Power Products
Shipboard Helicopter Handling System

Flow Control Sales

General Industrial
9%

Power Generation
34%

Naval Defense
32%

Oil and Gas
25%

18 2010 BUSINESS OVERVIEW

Segment Information
Motion Control

Integrates complex elements for use in fl ight control,
mechanical actuation and drive systems, sensing and electronic
computing system applications. Divisions include:

Embedded Computing
Rugged deployed commercial off-the-shelf (COTS) open standards
based electronics boards and subsystems for demanding
computing, networking and data processing applications, as
well as custom software design and hardware manufacturing for
aerospace, ground and naval defense markets.

Electronic Systems
Rugged, integrated electronics for defense, aerospace and general
industrial markets. Product and service expertise includes motion
control, network-centric computing, vehicle management, sensor
management, power management, high-speed data recording
and storage, electro-mechanical solutions, electronic contract
manufacturing and engineered packaging solutions.

Flight Systems
Electro-mechanical, electro-hydraulic and hydro-mechanical
actuation control components and systems for defense and
commercial aerospace applications such as trailing and
leading-edge fl ap actuators for passenger aircraft, weapons
handling systems, weapons bay door drive systems, lead edge
fl ight controls and canopy actuators for military fi ghter aircraft.

Integrated Sensing
Position, pressure and temperature sensors; smoke and ice
detection sensors; solenoids and solenoid valves; air data
computers; fl ight data recorders and joysticks for defense and
commercial aerospace, along with general industrial markets.

Embedded Computing
Rugged COTS Boards and Subsystems

Electronic Systems
Network-Centric Computing Products

Flight Systems
Commercial Aircraft High-Lift Actuation
Components

Integrated Sensing
Linear Displacement Transducers

Motion Control Sales

General Industrial
10%

Commercial Aerospace
25%

Aerospace Defense
38%

Other Government
3%

Naval Defense
5%

Ground Defense
19%

Segment Information
Metal Treatment

Provides services that enhance the performance and extend
the life of critical components utilized in aerospace,
automotive/transportation, power generation and general
industrial markets. Its four primary surface treatment
technologies include:

Shot Peening
Spherical metallic, ceramic or glass balls are directed at a
metal component in a controlled manner to impart a benefi cial
compressive stress layer on the surface that improves the fatigue
resistance and durability of the part. Shot peening is also used to
shape the complex aerodynamic curvatures of the wing skins of
commercial and business aircraft.

Laser Peening
A high-energy laser beam generates shock waves at the surface of
a metal component to induce benefi cial compressive stresses that
are four times deeper than can be achieved by traditional metal
treatment processes. This technology provides the highest level
of fatigue protection for mission-critical components.

Specialty Coatings
Solid fi lm lubricant and zinc-rich coating services provide sliding wear,
anti-seizing and corrosion resistance in automotive/transportation,
commercial aerospace and defense applications. Parylene
coating services provide lubricity, moisture barrier resistance and
biocompatibility in medical device and electronic applications.

Thermal Treatment
Air, inert gas and vacuum furnaces are utilized to heat treat
metal parts in controlled heating and cooling cycles to improve
overall strength, ductility and other mechanical properties.

2010 BUSINESS OVERVIEW 19

Controlled Shot Peening

Laser Peening

Solid Film Lubricant Coatings

Vacuum Heat Treating

Metal Treatment Sales

General Industrial
39%

Defense
13%

Power Generation
6%

Oil and Gas
3%

Commercial Aerospace
39%

20 2010 BUSINESS OVERVIEW

Historical Financial Performance

Five-Year Review

For the years ended December 31, (In millions, except per share data; unaudited)

2010

2009

2008

2007

2006

Performance
Net sales

Earnings before interest, taxes, depreciation and amortization

Net earnings

Cash fl ow from operations

Earnings per share(1)

Basic

Diluted

Dividends per share(1)

Return on sales

Return on invested capital(2)

New orders

Backlog at year end
Year-end fi nancial position
Working capital

Current ratio

Total assets

Total debt

Stockholders’ equity

Stockholders’ equity per share(1)
Other year-end data
Free cash fl ow(3)

Depreciation and amortization

Capital expenditures

Shares of stock outstanding at December 31,(1)

Number of registered shareholders

Number of employees

$1,893.1

$1,809.7

$1,830.1

$1,592.1

$1,282.2

260.3

106.6

171.7

$2.33

2.30

0.32

5.6%

8.3%

246.8

95.2

196.6

$2.10

2.08

0.32

5.3%

8.1%

272.4

109.4

179.8

$2.45

2.41

0.32

6.0%

9.5%

244.3

104.3

139.1

$2.35

2.32

0.28

6.6%

10.3%

191.3

80.6

143.9

$1.84

1.82

0.24

6.3%

9.9%

$1,918.5

$1,730.5

$2,232.1

$1,870.4

$1,333.0

$1,670.0

$1,626.9

$1,679.2

$1,303.8

$875.5

$472.1

$313.2

$350.0

$359.6

$330.5

2.1 to 1

1.6 to 1

1.8 to 1

1.9 to 1

2.1 to 1

$2,242.0

$2,142.0

$2,042.0

$1,985.6

$1,592.2

$396.6

$465.1

$1,160.1

$1,026.8

$25.15

$22.50

$118.7

$120.9

$79.9

$53.0

$76.5

$75.6

46,134

45,624

5,470

7,588

5,797

7,572

$516.7

$866.8

$19.23

$76.2

$74.3

$103.7

45,065

6,193

7,968

$511.9

$914.8

$20.51

$84.7

$62.7

$54.4

$364.9

$762.1

$17.31

$103.7

$50.8

$40.2

44,593

44,023

6,331

7,471

6,762

6,233

Note: Amounts may not add to the total due to rounding.
(1) Per share data for all years have been adjusted to refl ect a 2-for-1 stock split on April 21, 2006.
(2) Return on invested capital is net operating profi t after tax over average net debt plus equity.
(3) Free cash fl ow is defi ned as net cash fl ow provided by operating activities less capital expenditures. The Corporation discloses free cash fl ow because the Corporation believes
that it is a measurement of cash fl ow that is available for investing and fi nancing activities. Free cash fl ow represents cash generated after paying for interest on borrowings,
income taxes, capital expenditures and working capital requirements but before repaying outstanding debt and investing cash or utilizing debt credit lines to acquire businesses
and make other strategic investments.

Stock Price Range
Common

2010

2009

Dividends per Share
Common

First quarter

Second quarter

Third quarter

Fourth quarter

High

Low

High

Low

$36.48

$28.32

$36.06

$22.62

First quarter

37.54

31.49

34.01

28.92

26.11

28.78

33.20

36.67

35.20

27.33

27.52

27.97

Second quarter

Third quarter

Fourth quarter

2010

2009

$0.08

0.08

2010 BUSINESS OVERVIEW 21

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, 2010 and 2009, and the related consolidated statements of
earnings, stockholders’ equity and cash fl ows for each of the three years in the period ended
December 31, 2010. Such consolidated fi nancial statements and our report thereon dated
February 24, 2011, expressing an unqualifi ed opinion (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, 2010. The
accompanying condensed consolidated fi nancial statements are the responsibility of the Company’s
management. Our responsibility is to express an opinion on such condensed consolidated fi nancial
statements in relation to the complete consolidated fi nancial statements.

In our opinion, the information set forth in the accompanying condensed consolidated balance sheets
as of December 31, 2010 and 2009, and the related condensed consolidated statements of earnings and
of cash fl ows for each of the three years in the period ended December 31, 2010, is fairly stated in all
material respects in relation to the consolidated fi nancial statements from which it has been derived.

Parsippany, New Jersey
February 24, 2011

22 2010 BUSINESS OVERVIEW

Condensed Consolidated Statements of Earnings

For the years ended December 31, (In thousands, except share and per share data)

2010

2009

2008

Net sales

Cost of sales

Gross profi t

Research and development expenses

Selling expenses

General and administrative expenses

Operating income

Interest expense

Other income

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

$1,893,134

$1,809,690

$1,830,140

(1,271,381)

(1,214,159)

(1,214,061)

621,753

(54,131)

(111,773)

(276,026)

179,823

(22,107)

579

158,295

(51,697)

$106,598

$2.33

$2.30

45,823

46,322

595,531

(54,645)

(106,187)

(265,380)

169,319

(25,066)

1,006

145,259

(50,038)

$95,221

$2.10

$2.08

45,237

45,695

616,079

(49,615)

(107,308)

(262,594)

196,562

(29,045)

1,585

169,102

(59,712)

$109,390

$2.45

$2.41

44,716

45,374

2010 BUSINESS OVERVIEW 23

Condensed Consolidated Balance Sheets

At December 31, (In thousands, except share data)

2010

2009

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

Goodwill

Other intangible assets, net

Deferred tax assets, net

Other assets

Total assets

Liabilities
Current liabilities

Current portion of long-term and 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 benefi t costs

Long-term portion of environmental reserves

Other liabilities

Total liabilities

Contingencies and Commitments
Stockholders’ equity

$68,119

461,632

281,103

48,568

40,605

900,027

397,280

693,572

240,197

1,033

9,909

$65,010

404,539

285,608

48,777

33,567

837,501

401,149

648,452

242,506

1,994

10,439

$2,242,018

$2,142,041

$2,602

133,180

99,966

3,111

146,770

42,310

427,939

394,042

26,815

166,591

19,091

47,437

$80,981

129,880

90,855

4,212

167,683

50,708

524,319

384,112

25,549

120,930

18,804

41,570

1,081,915

1,115,284

Com mon stock, $1 par value, 100,000,000 shares authorized at December 31, 2010 and 2009;

48,558

48,214

48,557,638 and 48,213,472 shares issued at December 31, 2010 and 2009, respectively;
outstanding shares were 46,133,766 at December 31, 2010 and 45,624,179 at December 31, 2009

Additional paid in capital

Retained earnings

Accumulated other comprehensive loss

Less: Common treasury stock, at cost (2,423,872 shares at December 31, 2010 and 2,589,293 shares at

December 31, 2009)

Total stockholders’ equity

Total liabilities and stockholders’ equity

130,093

1,072,459

(2,813)

1,248,297

(88,194)

111,707

980,590

(19,605)

1,120,906

(94,149)

1,160,103

$2,242,018

1,026,757

$2,142,041

24 2010 BUSINESS OVERVIEW

Condensed Consolidated Statements
of Cash Flows

For the years ended December 31, (In thousands)
Cash fl ows from operating activities
Net earnings

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

Gain on bargain purchase

Deferred income taxes

Share-based compensation

Changes in operating assets and liabilities, net of businesses acquired and disposed of:

(Increase) decrease in receivables

Decrease (increase) in inventories

Increase (decrease) in progress payments

Increase (decrease) in accounts payable and accrued expenses

(Decrease) increase in deferred revenue

Decrease in income taxes payable

Increase in net pension and postretirement liabilities

Decrease in other current and long-term assets

Decrease in other current and long-term liabilities

Total adjustments

Net cash provided by operating activities

Cash fl ows from investing activities
Proceeds from sales and disposals of long-lived assets

Acquisitions of intangible assets

Additions to property, plant and equipment

Acquisition of businesses, net of cash acquired

Net cash used for investing activities

Cash fl ows from fi nancing activities
Borrowings of debt

Principal payments on debt

Proceeds from exercise of share-based payments

Dividends paid

Excess tax benefi ts from share-based compensation

Net cash used for fi nancing activities

Effect of exchange-rate changes on cash

Net increase (decrease) 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

Fair value of assets acquired from current-year acquisitions

Additional consideration paid (received) on prior year acquisitions

Liabilities assumed from current year acquisitions

Cash acquired

Gain on bargain purchase

Acquisition of businesses, net of cash acquired

2010

2009

2008

$106,598

$95,221

$109,390

79,946

1,446

–

2,828

13,378

(60,208)

10,640

6,493

9,925

(20,913)

(1,122)

24,528

1,205

(3,304)

65,112

171,710

744

(1,608)

(52,980)

(42,200)

(96,044)

76,480

1,917

(1,937)

(6,470)

15,264

9,250

17,819

(8,573)

(30,565)

28,724

(11,326)

19,654

2,319

(11,198)

101,358

196,579

3,789

(673)

(75,643)

(68,623)

74,251

804

–

(6,370)

13,663

(20,230)

(46,564)

8,227

8,582

33,332

(4,044)

11,416

2,250

(4,886)

70,431

179,821

8,143

(311)

(103,657)

(48,557)

(141,150)

(144,382)

513,100

711,059

598,000

(581,771)

(762,759)

(622,580)

10,560

(14,729)

985

10,557

(14,559)

378

(71,855)

(55,324)

(702)

3,109

65,010

$68,119

4,200

4,305

60,705

$65,010

9,905

(14,381)

1,544

(27,512)

(13,742)

(5,815)

66,520

$60,705

$49,939

$81,103

$133,159

1,153

(8,206)

(686)

–

$42,200

1,835

(12,102)

(276)

(1,937)

$68,623

(1,447)

(75,156)

(7,999)

–

$48,557

Shareholder Information

Corporate Headquarters
10 Waterview Boulevard, 2nd Floor
Parsippany, New Jersey 07054
www.curtisswright.com
Tel: (973) 541-3700

Annual Meeting
The 2011 annual meeting of stockholders will be held on May 6, 2011 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, 2010 the approximate number of holders of record of common stock, par
value of $1.00 per share of the Corporation, was 5,470.

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 2010 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.

Stock Transfer Agent and Registrar
For services such as changes of address, replacement of lost certifi cates 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.

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 (800) 416-3743.

Investor Information
Investors, stockbrokers, security analysts and others seeking information about Curtiss-Wright
Corporation should contact James M. Ryan, Director of Investor Relations, at the Corporate Headquarters.

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 fi nancial information required to be on fi le with the
Securities and Exchange Commission. The Corporation also fi les an Annual Report on Form 10-K,
a copy of which may be obtained free of charge. These reports, as well as additional fi nancial
documents such as quarterly shareholder reports, proxy statements and quarterly reports on Form
10-Q, may be obtained by written request to James M. Ryan, Director of Investor Relations, at the
Corporate Headquarters or at the Corporation’s website: www.curtisswright.com.

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Directors
Martin R. Benante
Chairman of the Board of Directors

S. Marce Fuller
Former President and
Chief Executive Offi cer of
Mirant Corporation, Inc. (formerly
known as Southern Energy, Inc.)
Director, Earthlink, Inc.

Dr. Allen A. Kozinski
Former Vice President of Global
Refi ning of British Petroleum PLC

Carl G. Miller
Former Chief Financial Offi cer
of TRW, Inc.

William B. Mitchell
Trustee, Mitre Corporation
Former Vice Chairman of Texas
Instruments Inc.

John R. Myers
Former Chairman and
Chief Executive Offi cer 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
Director, Tetra Tech, Inc.
Former Executive Vice President
and Offi cer of Lockheed Martin
Corporation

Offi cers
Martin R. Benante
Chief Executive Offi cer

David C. Adams
Co-Chief Operating Offi cer

David J. Linton
Co-Chief Operating Offi cer

Thomas P. Quinly
Vice President

Glenn E. Tynan
Vice President and
Chief Financial Offi cer

Michael J. Denton
Vice President,
General Counsel and
Corporate Secretary

Harry S. Jakubowitz
Vice President and
Treasurer

Glenn G. Coleman
Vice President and
Corporate Controller

26 2010 BUSINESS OVERVIEW

Curtiss-Wright Corporation
10 Waterview Boulevard
Parsippany, New Jersey 07054