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Curtiss-Wright Reports Fourth Quarter and Full-Year 2021 Financial Results; Full-Year 2022 Guidance Reflects Higher Sales, Operating Margin and EPS

News Details

CURTISS-WRIGHT REPORTS FOURTH QUARTER AND FULL-YEAR 2021 FINANCIAL RESULTS; FULL-YEAR 2022 GUIDANCE REFLECTS HIGHER SALES, OPERATING MARGIN AND EPS

February 23, 2022

 

company achieves record full-year adjusted operating margin of 17.0% and completes record $350 million in annual share repurchases

Curtiss-Wright Corporation (NYSE: CW) reports financial results for the fourth quarter and full-year ended December 31, 2021.

fourth quarter 2021 highlights:

  • Reported sales of $667 million, diluted earnings per share (EPS) of $1.94, and free cash flow (FCF) of $219 million;
  • Adjusted sales of $655 million, up 2%;
  • Adjusted diluted EPS of $2.40, up 6%;
  • New orders of $676 million, up 19%;
  • Adjusted FCF of $219 million, with 230% FCF conversion; and
  • Record share repurchases of approximately $258 million.

Full-year 2021 highlights:

  • Reported sales of $2.5 billion, operating income of $383 million, operating margin of 15.3%, diluted EPS of $6.58, and FCF of $347 million;
  • Adjusted sales of $2.5 billion, up 7%;
  • Adjusted operating income of $420 million, up 12%;
  • Record Adjusted operating margin of 17.0%, up 70 basis points;
  • Adjusted diluted EPS of $7.34, up 11%;
  • New orders of $2.5 billion, up 11%; Backlog up 3%;
  • Adjusted FCF of $347 million, with 116% FCF conversion; and
  • Record annual share repurchases of $350 million.

“Curtiss-Wright delivered strong fourth quarter results with better-than-expected profitability, strong free cash flow and tremendous order growth,” said Lynn M. Bamford, President and CEO of Curtiss-Wright Corporation. “For the full year, we grew sales by 7% to nearly $2.5 billion, in line with our expectations, as we leveraged the strength and resilience of our combined portfolio to minimize the impact of the challenging supply chain environment. I’m proud of the team’s focus and continued strong execution of our operational excellence initiatives, which enabled us to generate 70 basis points in full-year operating margin expansion and meet our 17% operating margin objective one full year ahead of schedule.”

 

“We continue to utilize our strong and healthy balance sheet to implement a disciplined capital deployment strategy. Throughout the past year, we delivered on our commitment to drive returns to our shareholders by executing record annual share repurchases of $350 million. We also recently announced our pending acquisition of Safran’s aerospace arresting systems business for $240 million, which will increase the breadth of our global defense portfolio and is expected to yield significant opportunities for revenue growth”

“Over the past few weeks, we resolved two significant legacy matters. First, we have reached an agreement with Westinghouse to settle all outstanding legal matters covering both the U.S. and China AP1000 Reactor Coolant Pump (RCP) contracts dating back to 2007. As a result, we have secured Westinghouse’s commitment to Curtiss-Wright’s RCP technology in future AP1000 power plants globally, including their next multi-unit project in Eastern Europe. We now have a clear path moving forward and the potential to generate new RCP orders within the next three to five years. Second, we recently completed the divestiture of the German valves business which had been classified as held for sale since the fourth quarter of 2020. We are pleased to move past these matters with a well-defined focus on advancing our strategic priorities to generate long-term profitable growth.”

“Looking to 2022, we are projecting total sales growth of 3% to 5% driven by growth in all of our A&D and Commercial markets, continued operating margin expansion, and double-digit Adjusted diluted EPS growth of 10% to 12%. We remain on track to achieve our 3-year financial targets for 2023 that we communicated at last year’s investor day and successfully execute on our Pivot to Growth strategy to drive long-term shareholder value.”

fourth quarter 2021 operating results

(In millions)

Q4-2021

 

Q4-2020

 

Change

Reported

 

 

 

 

 

Sales

$

667

 

$

668

 

0%

Operating income

$

105

 

$

76

 

38%

Operating margin

 

15.8%

 

 

11.4%

 

440 bps

 

 

 

 

 

 

Adjusted (1)

 

 

 

 

 

Sales

$

655

 

$

641

 

2%

Operating income

$

129

 

$

126

 

2%

Operating margin

 

19.7%

 

 

19.7%

 

-

(1)

Reconciliations of Reported to Adjusted operating results are available in the Appendix.

  • Adjusted sales of $655 million, up $14 million, or 2%;
  • Total Aerospace & Defense (A&D) market sales were flat, while total Commercial market sales increased 6%;
  • In our A&D markets, strong double-digit growth in commercial aerospace and the contribution from the PacStar acquisition in ground defense were offset by reductions in the aerospace defense and naval defense markets due to the timing of sales and ongoing supply chain headwinds;
  • In our Commercial markets, we experienced continued strong demand in the general industrial market, as well as higher sales within the power & process markets, despite the wind down on the China Direct AP1000 program;
  • Adjusted operating income of $129 million improved 2%, while Adjusted operating margin remained flat at 19.7%. Higher operating income was driven by favorable overhead absorption on higher revenues in our Aerospace & Industrial and Defense Electronics segments, as well as the benefits of our ongoing company-wide operational excellence initiatives. These improvements were partially offset by lower revenues and unfavorable mix in the Naval & Power segment; and
  • Non-segment expenses of $12 million, up $2 million, primarily due to higher environmental costs.
 

Fourth quater 2021 segment performance

Aerospace & Industrial

(In millions)

Q4-2021

 

Q4-2020

 

Change

Reported

 

 

 

 

 

Sales

$

210

 

$

213

 

(1%)

Operating income

$

40

 

$

34

 

17%

Operating margin

 

19.0%

 

 

16.0%

 

300 bps

 

 

 

 

 

 

Adjusted (1)

 

 

 

 

 

Sales

$

208

 

$

192

 

8%

Operating income

$

40

 

$

34

 

20%

Operating margin

 

19.5%

 

 

17.5%

 

200 bps

(1)

Reconciliations of Reported to Adjusted operating results are available in the Appendix.

  • Adjusted sales of $208 million, up approximately $15 million, or 8%;
  • Higher general industrial market revenue was principally driven by the continued strong rebound in demand for industrial vehicle products for on- and off-highway platforms;
  • Higher commercial aerospace market revenue reflected higher sales of sensors products and surface treatment services on narrowbody platforms, partially offset by lower actuation sales on widebody platforms;
  • Aerospace defense market revenue increased primarily due to higher sales of actuation products and surface treatment services on the F-35 program; and
  • Adjusted operating income of $40 million, up 20% from the prior year, while Adjusted operating margin increased 200 basis points to 19.5%, reflecting strong absorption on higher sales and the benefits of our ongoing operational excellence initiatives. 
 

Defense Electronics

(In millions)

Q4-2021

 

Q4-2020

 

Change

Reported

 

 

 

 

 

Sales

$

199

 

$

181

 

10%

Operating income

$

52

 

$

35

 

50%

Operating margin

 

26.3%

 

 

19.2%

 

710 bps

 

 

 

 

 

 

Adjusted (1)

 

 

 

 

 

Sales

$

200

 

$

182

 

10%

Operating income

$

53

 

$

45

 

17%

Operating margin

 

26.5%

 

 

24.9%

 

160 bps

(1)

Reconciliations of Reported to Adjusted operating results are available in the Appendix.

  • Adjusted sales of $200 million, up approximately $17 million, or 10%;
  • Lower aerospace defense market revenues reflected the timing of sales of our embedded computing equipment on various programs, as certain revenues shifted into 2022 due to ongoing supply chain headwinds. This decrease was partially offset by higher production revenues on the F-35 program;
  • Higher ground defense market revenue was principally driven by the contribution from the PacStar acquisition for tactical battlefield communications equipment;
  • Higher commercial aerospace market revenue reflected increased sales of avionics and electronic systems on various domestic and international platforms; and
  • Adjusted operating income of $53 million, up 17% from the prior year, while Adjusted operating margin increased 160 basis points to 26.5%, as solid absorption on higher sales and favorable mix in defense electronics more than offset unfavorable foreign currency translation.
 

Naval & Power

(In millions)

Q4-2021

 

Q4-2020

 

Change

Reported

 

 

 

 

 

Sales

$

258

 

$

274

 

(6%)

Operating income

$

25

 

$

18

 

43%

Operating margin

 

9.7%

 

 

6.4%

 

330 bps

 

 

 

 

 

 

Adjusted (1)

 

 

 

 

 

Sales

$

248

 

$

267

 

(7%)

Operating income

$

48

 

$

57

 

(16%)

Operating margin

 

19.3%

 

 

21.4%

 

(210 bps)

(1)

Reconciliations of Reported to Adjusted operating results are available in the Appendix.

  • Adjusted sales of $248 million, down $19 million, or 7%;
  • Naval defense market revenue declines primarily reflected lower revenues on the Virginia-class submarine program, partially offset by higher revenues on the CVN-81 aircraft carrier program;
  • Higher power & process market sales reflected solid industrial valve demand in the oil and gas market and higher domestic nuclear aftermarket revenues, partially offset by the timing of production on the China Direct AP1000 program; and
  • Adjusted operating income of $48 million, down 16% from the prior year, while Adjusted operating margin decreased 210 basis points to 19.3%, driven by unfavorable absorption on lower revenues and unfavorable mix in the power & process market.
 

Free cash flow

(In millions)

Q4-2021

 

Q4-2020

 

Change

Net cash provided by operating activities

$

232

 

$

257

 

(10%)

Capital expenditures

 

(13)

 

 

(11)

 

(19%)

Reported free cash flow

$

219

 

$

246

 

(11%)

Adjusted free cash flow (1)

$

219

 

$

256

 

(15%)

(1)

A reconciliation of Reported to Adjusted free cash flow is available in the Appendix.

  • Reported free cash flow of $219 million decreased approximately $28 million, or 11%, primarily due to higher working capital and higher taxes;
  • Capital expenditures increased $2 million compared with the prior year, primarily due to higher capital investments within the Naval & Power segment; and
  • Adjusted free cash flow of $219 million decreased $37 million, or approximately 15%, compared with record free cash flow achieved in the prior year period.

new orders and backlog

  • New orders of $676 million increased 19% and generated an overall book-to-bill that exceeded 1.0x, principally driven by solid demand within our A&D markets for our commercial aerospace and naval defense products; and
  • Backlog of $2.2 billion, up 3% from December 31, 2020, reflects higher demand in both our A&D and commercial markets.

share repurchase and dividends

  • During the fourth quarter, the Company repurchased 1.96 million shares of its common stock for approximately $258 million;
  • During full-year 2021, the Company repurchased 2.70 million shares for a record $350 million; and
  • The Company also declared a quarterly dividend of $0.18 a share, unchanged from the previous quarter.

other items - business held for sale

  • In January 2022, the Company completed the sale of its German valves business.

other items - westinghouse legal statement

  • In February 2022, the Company and Westinghouse reached an agreement to settle all open claims and counterclaims under the AP1000 U.S. and China contracts. Based on the terms of the settlement, the Company recorded full-year charges of approximately $13 million related to this matter for the year ended December 31, 2021; and
  • The Company’s 2021 non-GAAP results have been adjusted for this legal matter.
 

Full-year 2022 guidance

The Company’s full-year 2022 Adjusted financial guidance(1) is as follows:

(In millions, except EPS)

2022 Adjusted
Non-GAAP Guidance

% Chg vs 2021

Total Sales

$2,530 - $2,580

Up 3% - 5%

Operating Income

$432 - $446

Up 3% - 6%

Operating Margin

17.1% - 17.3%

Up 10 - 30 bps

Diluted EPS

$8.05 - $8.25

Up 10% - 12%

Free Cash Flow(2)

$345 - $365

Up 0% - 5%

(1)

Reconciliations of Reported to Adjusted 2021 operating results and 2022 financial guidance are available in the Appendix.

(2)

2022 Adjusted Free Cash Flow includes $50 - $60 million in capital expenditures compared with $41 million in 2021.

A more detailed breakdown of the Company’s 2022 financial guidance by segment and by market, as well as all reconciliations of Reported GAAP amounts to Adjusted non-GAAP amounts can be found in the accompanying schedules. Historical financial results are available in the Investor Relations section of Curtiss-Wright’s website.

conference call & webcast information

The Company will host a conference call to discuss fourth quarter and full-year 2021 financial results and expectations for 2022 guidance at 10:00 a.m. ET on Thursday, February 24, 2022. A live webcast of the call and the accompanying financial presentation, as well as a replay of the call, will be made available on the internet by visiting the Investor Relations section of the Company’s website at www.curtisswright.com.

(Tables to Follow)

 

CURTISS-WRIGHT CORPORATION and SUBSIDIARIES

CONSOLIDATED STATEMENTS OF EARNINGS (UNAUDITED)

($'s in thousands, except per share data)

 

 

Three Months Ended

 

Year Ended

 

 

December 31,

 

December 31,

 

 

2021

 

2020

 

2021

 

2020

Product sales

 

$

556,911

 

 

$

583,314

 

 

$

2,109,617

 

 

$

2,041,086

 

Service sales

 

 

109,847

 

 

 

85,130

 

 

 

396,314

 

 

 

350,250

 

Total net sales

 

 

666,758

 

 

 

668,444

 

 

 

2,505,931

 

 

 

2,391,336

 

 

 

 

 

 

 

 

 

 

Cost of product sales

 

 

340,432

 

 

 

373,676

 

 

 

1,330,191

 

 

 

1,319,562

 

Cost of service sales

 

 

64,454

 

 

 

52,967

 

 

 

242,384

 

 

 

230,547

 

Total cost of sales

 

 

404,886

 

 

 

426,643

 

 

 

1,572,575

 

 

 

1,550,109

 

 

 

 

 

 

 

 

 

 

Gross profit

 

 

261,872

 

 

 

241,801

 

 

 

933,356

 

 

 

841,227

 

 

 

 

 

 

 

 

 

 

Research and development expenses

 

 

21,814

 

 

 

20,653

 

 

 

88,489

 

 

 

74,816

 

Selling expenses

 

 

27,729

 

 

 

27,887

 

 

 

116,956

 

 

 

109,537

 

General and administrative expenses

 

 

96,532

 

 

 

72,773

 

 

 

326,140

 

 

 

303,288

 

Impairment of assets held for sale

 

 

10,432

 

 

 

33,043

 

 

 

19,088

 

 

 

33,043

 

Restructuring expenses

 

 

 

 

 

10,965

 

 

 

 

 

 

31,695

 

 

 

 

 

 

 

 

 

 

Operating income

 

 

105,365

 

 

 

76,480

 

 

 

382,683

 

 

 

288,848

 

 

 

 

 

 

 

 

 

 

Interest expense

 

 

10,146

 

 

 

10,486

 

 

 

40,240

 

 

 

35,545

 

Other income, net

 

 

3,157

 

 

 

2,904

 

 

 

12,067

 

 

 

9,748

 

 

 

 

 

 

 

 

 

 

Earnings before income taxes

 

 

98,376

 

 

 

68,898

 

 

 

354,510

 

 

 

263,051

 

Provision for income taxes

 

 

(21,797

)

 

 

(14,905

)

 

 

(87,351

)

 

 

(61,659

)

Net earnings

 

$

76,579

 

 

$

53,993

 

 

$

267,159

 

 

$

201,392

 

 

 

 

 

 

 

 

 

 

Net earnings per share:

 

 

 

 

 

 

 

 

Basic earnings per share

 

$

1.95

 

 

$

1.31

 

 

$

6.61

 

 

$

4.83

 

Diluted earnings per share

 

$

1.94

 

 

$

1.30

 

 

$

6.58

 

 

$

4.80

 

 

 

 

 

 

 

 

 

 

Dividends per share

 

$

0.18

 

 

$

0.17

 

 

$

0.71

 

 

$

0.68

 

 

 

 

 

 

 

 

 

 

Weighted average shares outstanding:

 

 

 

 

 

 

 

 

Basic

 

 

39,309

 

 

 

41,209

 

 

 

40,417

 

 

 

41,738

 

Diluted

 

 

39,524

 

 

 

41,459

 

 

 

40,602

 

 

 

41,999

 

 

CURTISS-WRIGHT CORPORATION and SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS (UNAUDITED)

($'s in thousands, except par value)

 

 

December 31,

 

December 31,

 

 

2021

 

2020

Assets

 

 

 

 

Current assets:

 

 

 

 

Cash and cash equivalents

 

$

171,004

 

 

$

198,248

 

Receivables, net

 

 

647,148

 

 

 

588,718

 

Inventories, net

 

 

411,567

 

 

 

428,879

 

Assets held for sale

 

 

10,988

 

 

 

27,584

 

Other current assets

 

 

67,101

 

 

 

57,395

 

Total current assets

 

 

1,307,808

 

 

 

1,300,824

 

Property, plant, and equipment, net

 

 

360,031

 

 

 

378,200

 

Goodwill

 

 

1,463,026

 

 

 

1,455,137

 

Other intangible assets, net

 

 

538,077

 

 

 

609,630

 

Operating lease right-of-use assets, net

 

 

143,613

 

 

 

150,898

 

Prepaid pension asset

 

 

256,422

 

 

 

92,531

 

Other assets

 

 

34,568

 

 

 

34,114

 

Total assets

 

$

4,103,545

 

 

$

4,021,334

 

 

 

 

 

 

Liabilities

 

 

 

 

Current liabilities:

 

 

 

 

Current portion of long-term and short term debt

 

$

 

 

$

100,000

 

Accounts payable

 

 

211,640

 

 

 

201,237

 

Accrued expenses

 

 

144,466

 

 

 

140,200

 

Income taxes payable

 

 

3,235

 

 

 

6,633

 

Deferred revenue

 

 

260,157

 

 

 

253,411

 

Liabilities held for sale

 

 

12,655

 

 

 

10,141

 

Other current liabilities

 

 

102,714

 

 

 

98,755

 

Total current liabilities

 

 

734,867

 

 

 

810,377

 

Long-term debt, net

 

 

1,050,610

 

 

 

958,292

 

Deferred tax liabilities

 

 

147,349

 

 

 

115,007

 

Accrued pension and other postretirement benefit costs

 

 

91,329

 

 

 

98,345

 

Long-term operating lease liability

 

 

127,152

 

 

 

133,069

 

Long-term portion of environmental reserves

 

 

13,656

 

 

 

15,422

 

Other liabilities

 

 

112,092

 

 

 

103,248

 

Total liabilities

 

 

2,277,055

 

 

 

2,233,760

 

 

 

 

 

 

Stockholders' equity

 

 

 

 

Common stock, $1 par value

 

$

49,187

 

 

$

49,187

 

Additional paid in capital

 

 

127,104

 

 

 

122,535

 

Retained earnings

 

 

2,908,827

 

 

 

2,670,328

 

Accumulated other comprehensive loss

 

 

(190,465

)

 

 

(310,856

)

Less: cost of treasury stock

 

 

(1,068,163

)

 

 

(743,620

)

Total stockholders' equity

 

 

1,826,490

 

 

 

1,787,574

 

 

 

 

 

 

Total liabilities and stockholders' equity

 

$

4,103,545

 

 

$

4,021,334

 

 

Use and Definitions of Non-GAAP Financial Information (Unaudited)

The Corporation supplements its financial information determined under U.S. generally accepted accounting principles (GAAP) with certain non-GAAP financial information. Curtiss-Wright believes that these Adjusted (non-GAAP) measures provide investors with improved transparency in order to better measure Curtiss-Wright’s ongoing operating and financial performance and better comparisons of our key financial metrics to our peers. These non-GAAP measures should not be considered in isolation or as a substitute for the related GAAP measures, and other companies may define such measures differently. Curtiss-Wright encourages investors to review its financial statements and publicly filed reports in their entirety and not to rely on any single financial measure. Reconciliations of “As Reported” GAAP amounts to “Adjusted” non-GAAP amounts are furnished within this release.

The following definitions are provided:

Adjusted Sales, Operating Income, Operating Margin, Net Earnings and Diluted EPS

These Adjusted financials are defined as Reported Sales, Operating Income, Operating Margin, Net Earnings and Diluted Earnings per Share under GAAP excluding: (i) the impact of first year purchase accounting costs associated with acquisitions, specifically one-time inventory step-up, backlog amortization, deferred revenue adjustments and transaction costs; (ii) one-time transition and IT security costs associated with the relocation of a business in the prior year period; (iii) the non-cash impairment of capitalized development costs in the prior year period; (iv) significant restructuring costs in 2020 associated with its operations; (v) the sale or divestiture of a business or product line; (vi) pension settlement charges; and (vii) significant legal settlements and impairment costs.

 

CURTISS-WRIGHT CORPORATION and SUBSIDIARIES

RECONCILIATION OF AS REPORTED TO ADJUSTED (UNAUDITED)

($'s in thousands)

 

Three Months Ended

 

Three Months Ended

 

 

 

 

 

December 31, 2021

 

December 31, 2020

 

% Change

 

As Reported

 

Adjustments

 

Adjusted

 

As Reported

 

Adjustments

 

Adjusted

 

Reported

 

Adjusted

Sales:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Aerospace & Industrial (1)

$

209,994

 

 

$

(2,418

)

 

$

207,576

 

 

$

212,766

 

 

$

(20,553

)

 

$

192,213

 

 

(1)%

 

8%

Defense Electronics (2)

 

199,259

 

 

 

360

 

 

 

199,619

 

 

 

181,239

 

 

 

935

 

 

 

182,174

 

 

10%

 

10%

Naval & Power (3)

 

257,505

 

 

 

(9,401

)

 

 

248,104

 

 

 

274,439

 

 

 

(7,360

)

 

 

267,079

 

 

(6)%

 

(7)%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total sales

$

666,758

 

 

$

(11,459

)

 

$

655,299

 

 

$

668,444

 

 

$

(26,978

)

 

$

641,466

 

 

—%

 

2%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating income (expense):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Aerospace & Industrial (1)

$

39,943

 

 

$

493

 

 

$

40,436

 

 

$

34,079

 

 

$

(362

)

 

$

33,717

 

 

17%

 

20%

Defense Electronics (2)

 

52,433

 

 

 

442

 

 

 

52,875

 

 

 

34,846

 

 

 

10,492

 

 

 

45,338

 

 

50%

 

17%

Naval & Power (3)

 

25,025

 

 

 

22,802

 

 

 

47,827

 

 

 

17,528

 

 

 

39,513

 

 

 

57,041

 

 

43%

 

(16)%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total segments

$

117,401

 

 

$

23,737

 

 

$

141,138

 

 

$

86,453

 

 

$

49,643

 

 

$

136,096

 

 

36%

 

4%

Corporate and other

 

(12,036

)

 

 

(22

)

 

 

(12,058

)

 

 

(9,973

)

 

 

65

 

 

 

(9,908

)

 

(21)%

 

(22)%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total operating income

$

105,365

 

 

$

23,715

 

 

$

129,080

 

 

$

76,480

 

 

$

49,708

 

 

$

126,188

 

 

38%

 

2%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating margins:

As Reported

 

 

 

Adjusted

 

As
Reported

 

 

 

Adjusted

 

Reported

 

Adjusted

Aerospace & Industrial

 

19.0

%

 

 

 

 

19.5

%

 

 

16.0

%

 

 

 

 

17.5

%

 

300 bps

 

200 bps

Defense Electronics

 

26.3

%

 

 

 

 

26.5

%

 

 

19.2

%

 

 

 

 

24.9

%

 

710 bps

 

160 bps

Naval & Power

 

9.7

%

 

 

 

 

19.3

%

 

 

6.4

%

 

 

 

 

21.4

%

 

330 bps

 

(210 bps)

Total Curtiss-Wright

 

15.8

%

 

 

 

 

19.7

%

 

 

11.4

%

 

 

 

 

19.7

%

 

440 bps

 

— bps

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Segment margins

 

17.6

%

 

 

 

 

21.5

%

 

 

12.9

%

 

 

 

 

21.2

%

 

470 bps

 

30 bps

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(1) Excludes our build-to-print actuation product line supporting the Boeing 737 Max program in both periods, and restructuring costs incurred in the prior period.

(2) Excludes first year purchase accounting adjustments in both periods and restructuring costs incurred in the prior period.

(3) Excludes the results of operations and related impairments from our German valves business in both periods, one-time legal settlement costs in the current period, first year purchase accounting adjustments in the prior period, and restructuring costs in the prior period.

 

CURTISS-WRIGHT CORPORATION and SUBSIDIARIES

RECONCILIATION OF AS REPORTED TO ADJUSTED (UNAUDITED)

($'s in thousands)

 

Twelve Months Ended

 

Twelve Months Ended

 

 

 

 

 

December 31, 2021

 

December 31, 2020

 

% Change

 

As
Reported

 

Adjustments

 

Adjusted

 

As
Reported

 

Adjustments

 

Adjusted

 

Reported

 

Adjusted

Sales:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Aerospace & Industrial (1)

$

786,334

 

 

$

(11,182

)

 

$

775,152

 

 

$

805,673

 

 

$

(67,482

)

 

$

738,191

 

 

(2)%

 

5%

Defense Electronics (2)

 

724,326

 

 

 

3,600

 

 

 

727,926

 

 

 

608,757

 

 

 

1,884

 

 

 

610,641

 

 

19%

 

19%

Naval & Power (3)

 

995,271

 

 

 

(29,869

)

 

 

965,402

 

 

 

976,906

 

 

 

(25,963

)

 

 

950,943

 

 

2%

 

2%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total sales

$

2,505,931

 

 

$

(37,451

)

 

$

2,468,480

 

 

$

2,391,336

 

 

$

(91,562

)

 

$

2,299,774

 

 

5%

 

7%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating income (expense):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Aerospace & Industrial (1)

$

121,817

 

 

$

(1,586

)

 

$

120,231

 

 

$

99,714

 

 

$

(1,879

)

 

$

97,835

 

 

22%

 

23%

Defense Electronics (2)

 

159,089

 

 

 

5,134

 

 

 

164,223

 

 

 

118,748

 

 

 

25,625

 

 

 

144,373

 

 

34%

 

14%

Naval & Power (3)

 

141,660

 

 

 

34,139

 

 

 

175,799

 

 

 

108,151

 

 

 

62,715

 

 

 

170,866

 

 

31%

 

3%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total segments

$

422,566

 

 

$

37,687

 

 

$

460,253

 

 

$

326,613

 

 

$

86,461

 

 

$

413,074

 

 

29%

 

11%

Corporate and other

 

(39,883

)

 

 

53

 

 

 

(39,830

)

 

 

(37,765

)

 

 

186

 

 

 

(37,579

)

 

(6)%

 

(6)%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total operating income

$

382,683

 

 

$

37,740

 

 

$

420,423

 

 

$

288,848

 

 

$

86,647

 

 

$

375,495

 

 

32%

 

12%