Circor International (CIR) 8-K CIRCOR Announces Earnings Rise of 29% to $0.27 Per Share in the Third Quarter

EXHIBIT 99.1

PRESS RELEASE

Contact:     Kenneth W. Smith

Chief Financial Officer

CIRCOR International, Inc.

(781) 270-1200

CIRCOR Announces Earnings Rise of 29% to $0.27 Per Share in the Third Quarter

• Earnings before charges total $0.29 per share as revenues increase 22%

• Nine-month earnings rise 34% on revenue increase of 20%

• Incoming orders increase 18% while backlogs rise 12% as primary markets remain strong

Burlington, MA, November 3, 2005

CIRCOR International, Inc. (NYSE: CIR), a leading provider of valves and other fluid control products for the instrumentation, aerospace, thermal fluid and energy markets, today announced results for the third quarter ended October 2, 2005. Net income for the third quarter of 2005 was $4.3 million, or $0.27 per diluted share, compared to $3.3 million, or $0.21 per diluted share, for the 2004 third quarter. Revenues for the 2005 third quarter were $109.2 million, an increase of 22% from $89.8 million for the third quarter of 2004.

For the nine months ended October 2, 2005, net income rose 34% to $15.6 million, or $0.97 per diluted share. Net income for the nine months ended September 26, 2004, totaled $11.7 million, or $0.73 per diluted share. Revenues for the first nine months of 2005 were $330.1 million, an increase of 20% from $275.0 million for the first nine months of 2004.

David A. Bloss, Sr., Chairman and Chief Executive Officer, said, “We continue to benefit from higher industrial, aerospace and oilfield activity while our commercial HVAC, U.S. Navy and process steam markets remain relatively flat. While we are pleased with our results, they were at the lower end of our expectations due in large part to constraints on the supply of certain key components as well as continuing raw material cost pressures.”

Mr. Bloss also commented on the Company’s progress in implementing internal operational improvements saying, “We currently have a number of facility consolidation projects in various stages of completion and, in addition, we are in our first year of transformation to lean operating practices. These actions are designed to substantially improve our profitability, asset utilization and cash flow as fewer facilities will be needed and our inventory cycles improve. In addition to special charges for facility consolidations, we incurred incremental costs during the quarter associated with the lean initiatives of approximately $0.4 million and $1.4 million year-to-date. Financial benefits from our efforts in these areas are expected to be realized in 2006 and beyond.”

During the first nine months of 2005, the Company generated $17.5 million of free cash flow (defined as net cash from operating activities, less capital expenditures and dividends paid), an increase of 25% from $14.0 million of free cash flow generated in the same period last year. Included in free cash flow for 2005 are incremental capital expenditures totaling $6.1 million related to two new facilities, one in the Netherlands and a new and expanded facility being constructed in China.

Revenues for the Company’s CIRCOR Energy Products segment increased 36% to $50.2 million from $36.8 million in the third quarter of last year and were up 27% on a year-to-date basis primarily due to increased shipments to international oil and gas projects. Incoming orders for the quarter increased 20% compared to third quarter 2004 and, sequentially, increased 19%. Excluding special charges, this segment achieved operating margins of 11.3% for third quarter 2005 compared to 7.8% the same period last year, on the strength of higher shipments from the Company’s Pibiviesse business unit in Italy that serves the international project markets as well as profitability improvements in North American operations.

CIRCOR’s Instrumentation and Thermal Fluid Controls Products segment revenues were up 11% to $59.0 million for the third quarter compared to $53.0 million for the same period last year and up 15% on a year-to-date basis. Incoming orders for this segment were up 16% in the third quarter and the first nine months of 2005 compared to the same periods last year, while backlog at quarter-end increased 59% versus last year (up 9% excluding acquisitions), and increased 2% sequentially. Operating margin for this segment, excluding special charges, was 9.4% for the third quarter of 2005 compared to 10.9% during the same period last year. The results for this segment benefited from stronger industrial market conditions that were offset by continuing high metal costs and unabsorbed manufacturing expenses due to manufacturing process improvement activities. Our lean manufacturing implementation has been accelerating at our Instrumentation products group’s highest volume plant and, as a result, this product group has realized a year-to-date inventory decrease of 13% or nearly $3.0 million. Results for the quarter were also negatively affected by supplier delivery delays of key components for certain aerospace products, thereby reducing shipments of these high-margin products.

CIRCOR provided guidance for its fourth quarter 2005 results, indicating that it expects earnings to be in the range of $0.34 to $0.37 per diluted share excluding special charges and other costs associated with ongoing facility consolidations compared to earnings of $0.01 per diluted share in the fourth quarter last year, which included an inventory obsolescence charge and fixed asset write-off totaling $0.29 per share. The Company indicated that its forecast for the fourth quarter assumes that their primary markets continue at this year’s healthy pace. However, raw material costs and availability as well as on-going changes in production processes and inventory reduction will continue to negatively affect the performance of the Instrumentation and Thermal Fluid Controls segment. In addition, specific tax planning and other project costs at the corporate level will be incurred during the fourth quarter, adding an additional $0.6 million to $0.8 million of pre-tax expenses during the period.

CIRCOR International has scheduled a conference call to review its results for the third quarter of 2005 on Friday, November 4, 2005, at 10:30 am ET. Interested parties may access the call by dialing (800) 406-5356 for US & Canada and (913) 981-5572 for International locations. A replay of the call will be available from 1:30 pm ET on November 4, 2005 through midnight on November 10, 2005. To access the replay, interested parties should dial (888) 203-1112 or (719)

457-0820 and enter confirmation code # 5408053 when prompted. The presentation slides that will be discussed in the conference call are expected to be available on Thursday, November 3, 2005, by 6:00 pm ET. The presentation slides may be downloaded from the quarterly earnings page of the investor section on the CIRCOR website:http://www.CIRCOR.com. An audio recording of the conference call also is expected to be posted on the company’s website by November 8, 2005.

CIRCOR International, Inc. is a leading provider of valves and fluid control products that allow customers around the world to use fluids safely and efficiently in the instrumentation, thermal fluid regulation and petrochemical markets. CIRCOR’s executive headquarters are located at 25 Corporate Drive, Burlington, MA 01803.

This press release contains certain statements that are “forward-looking statements” as that term is defined under the Private Securities Litigation Reform Act of 1995 (the “Act”) and releases issued by the Securities and Exchange Commission (SEC). The words “may,” “hope,” “should,” “expect,” “plan,” “anticipate,” “intend,” “believe,” “estimate,” “predict,” “potential,” “continue,” and other expressions which are predictions of or indicate future events and trends and which do not relate to historical matters identify forward-looking statements. We believe that it is important to communicate our future expectations to our stockholders, and we, therefore, make forward-looking statements in reliance upon the safe harbor provisions of the Act. However, there may be events in the future that we are not able to accurately predict or control, and our actual results, performance or achievements may differ materially from the expectations we describe in our forward-looking statements. Factors that could cause or contribute to such differences include, but are not limited to, the cyclicality and highly competitive nature of some of our end markets, changes in the price of and demand for oil and gas in both domestic and international markets, variability of raw material and component pricing, fluctuations in foreign currency exchange rates, and our ability to continue operating our manufacturing facilities at efficient levels and to successfully implement our lean and acquisition strategies. We advise you to read further about these and other risk factors set forth under the caption “Certain Risk Factors That May Affect Future Results” in our SEC filings. We undertake no obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future events or otherwise.

CIRCOR INTERNATIONAL, INC.

CONSOLIDATED STATEMENTS OF OPERATIONS

(in thousands, except per share data)

UNAUDITED

	Three Months Ended						Nine Months Ended
	October 2, 2005			September 26, 2004			October 2, 2005			September 26, 2004
Net revenues	$	109,222		$	89,760		$	330,117		$	275,009
Cost of revenues		77,894			63,091			231,312			192,373
GROSS PROFIT		31,328			26,669			98,805			82,636
Selling, general and administrative expenses		23,669			20,591			71,802			61,673
Special charges		496			265			934			303
OPERATING INCOME		7,163			5,813			26,069			20,660
Other (income) expense:
Interest income		(172	)		(181	)		(486	)		(536	)
Interest expense		900			1,182			2,668			3,529
Other (income) expense, net		174			(241	)		197			(291	)
Total other expense		902			760			2,379			2,702
INCOME BEFORE INCOME TAXES		6,261			5,053			23,690			17,958
Provision for income taxes		1,955			1,770			8,055			6,285
NET INCOME	$	4,306		$	3,283		$	15,635		$	11,673
Earnings per common share:
Basic	$	0.27		$	0.21		$	1.00		$	0.76
Diluted	$	0.27		$	0.21		$	0.97		$	0.73
Weighted average common shares outstanding:
Basic		15,744			15,371			15,646			15,338
Diluted		16,228			15,825			16,079			15,885

CIRCOR INTERNATIONAL, INC.

CONSOLIDATED STATEMENTS OF CASH FLOWS

(in thousands)

UNAUDITED

	Nine Months Ended
	October 2, 2005			September 26, 2004
OPERATING ACTIVITIES
Net income	$	15,635		$	11,673
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation		7,633			7,561
Amortization		330			153
Compensation expense of stock-based plans		764			461
Loss on disposal of property, plant and equipment		20			191
Loss on write-down of assets held for sale		—			238
Gain on disposal of assets held for sale		(113	)		(387	)
Equity in undistributed earnings of affiliates		(141	)		(86	)
Changes in operating assets and liabilities, net of effects from business acquisitions:
Trade accounts receivable		56			6,172
Inventories		(6,402	)		(12,092	)
Prepaid expenses and other assets		2,325			736
Accounts payable, accrued expenses and other liabilities		10,571			4,698
Net cash provided by operating activities		30,678			19,318
INVESTING ACTIVITIES
Additions to property, plant and equipment		(11,453	)		(3,626	)
Proceeds from disposal of property, plant and equipment		7			820
Proceeds from sale of assets held for sale		1,472			3,030
Business acquisitions, net of cash acquired		(41,277	)		(12,198	)
Purchase price escrow release payments		(829	)		(1,260	)
Purchase of investments		(2,535	)		(5,408	)
Proceeds from sale of investments		2,535			5,408
Other					—
Net cash used in investing activities		(52,080	)		(13,234	)
FINANCING ACTIVITIES
Proceeds from debt borrowings		4,580			322
Payments of debt		(3,221	)		(3,559	)
Dividends paid		(1,765	)		(1,725	)
Proceeds from the exercise of stock options		3,757			1,098
Net cash provided by (used in) financing activities		3,351			(3,864	)
Effect of exchange rate changes on cash and cash equivalents		(1,448	)		(367	)
(DECREASE) INCREASE IN CASH AND CASH EQUIVALENTS		(19,499	)		1,853
Cash and cash equivalents at beginning of year		58,653			58,202
CASH AND CASH EQUIVALENTS AT END OF PERIOD	$	39,154		$	60,055

CIRCOR INTERNATIONAL, INC.

CONSOLIDATED BALANCE SHEETS

(in thousands, except share data)

UNAUDITED

	October 2, 2005		December 31, 2004
ASSETS
Current Assets:
Cash and cash equivalents	$	39,154	$	58,653
Investments		4,308		4,155
Trade accounts receivable, less allowance for doubtful accounts of $2,171 and $2,549, respectively		63,967		64,521
Inventories		111,963		105,150
Prepaid expenses and other current assets		3,604		2,414
Deferred income taxes		4,810		6,953
Assets held for sale		473		—
Total Current Assets		228,279		241,846
Property, Plant and Equipment, net		61,807		59,302
Other Assets:
Goodwill		144,475		120,307
Intangibles, net		4,808		1,424
Other assets		9,892		5,539
Total Assets	$	449,261	$	428,418
LIABILITIES AND SHAREHOLDERS’ EQUITY
Current Liabilities:
Accounts payable	$	40,557	$	38,023
Accrued expenses and other current liabilities		35,762		30,490
Income taxes payable		2,351		1,362
Notes payable and current portion of long-term debt		17,459		15,051
Total Current Liabilities		96,129		84,926
Long-Term Debt, net of current portion		28,057		27,829
Deferred Income Taxes		7,553		6,932
Other Non-Current Liabilities		9,813		10,646
Minority Interest		—		4,650
Shareholders’ Equity:
Preferred stock, $.01 par value; 1,000,000 shares authorized; no shares issued and outstanding		—		—
Common stock, $.01 par value; 29,000,000 shares authorized; and 15,822,383 and 15,430,305 issued and outstanding, respectively		158		154
Additional paid-in capital		214,990		208,392
Retained earnings		78,164		64,293
Accumulated other comprehensive income		14,397		20,596
Total Shareholders’ Equity		307,709		293,435
Total Liabilities and Shareholders’ Equity	$	449,261	$	428,418

CIRCOR INTERNATIONAL, INC.

SUMMARY OF ORDERS AND BACKLOG

(in thousands)

UNAUDITED

	Three Months Ended				Nine Months Ended
	October 2, 2005		September 26, 2004		October 2, 2005		September 26, 2004
ORDERS
Instrumentation & Thermal Fluid Controls	$	60,213	$	51,688	$	188,734	$	162,941
Energy Products		50,029		41,755		137,742		123,228
Total orders	$	110,242	$	93,443	$	326,476	$	286,169
	October 2, 2005		December 31, 2004
BACKLOG
Instrumentation & Thermal Fluid Controls	$	63,153	$	39,819
Energy Products		66,513		75,923
Total backlog	$	129,666	$	115,742

Note: Backlog includes all unshipped customer orders.

CIRCOR INTERNATIONAL, INC.

SUMMARY REPORT BY SEGMENT

(in thousands, except earnings per share)

UNAUDITED

	2004															2005
	1ST QTR			2ND QTR			3RD QTR			4TH QTR			YTD			1ST QTR			2ND QTR			3RD QTR			YTD
NET REVENUES
Instrumentation & Thermal Fluid Controls (TFC)	$	51,639		$	54,864		$	52,966		$	59,187		$	218,656		$	61,025		$	62,908		$	59,031		$	182,964
Energy Products		39,058			39,688			36,794			47,638			163,178			41,213			55,749			50,191			147,153
Total		90,697			94,552			89,760			106,825			381,834			102,238			118,657			109,222			330,117
OPERATING MARGIN
Instrumentation & TFC		11.2	%		11.4	%		10.9	%		10.5	%		11.0	%		14.8	%		12.1	%		9.4	%		12.1	%
Energy Products		10.9	%		7.7	%		7.8	%		-2.3	%		5.6	%		8.0	%		10.7	%		11.3	%		10.1	%
Segment operating margin		11.1	%		9.8	%		9.7	%		4.7	%		8.7	%		12.0	%		11.5	%		10.3	%		11.2	%
Corporate expenses		-2.5	%		-2.3	%		-2.9	%		-3.6	%		-2.8	%		-3.4	%		-2.6	%		-3.3	%		-3.1	%
Special charges		0.0	%		0.0	%		-0.3	%		0.0	%		-0.1	%		-0.3	%		-0.1	%		-0.5	%		-0.3	%
Total operating margin		8.5	%		7.5	%		6.5	%		1.2	%		5.7	%		8.4	%		8.7	%		6.6	%		7.9	%
OPERATING INCOME
Instrumentation & TFC (excl. special charges)		5,776			6,239			5,786			6,188			23,989			9,004			7,641			5,532			22,177
Energy Products (excl. special charges)		4,251			3,066			2,877			(1,116	)		9,078			3,290			5,957			5,680			14,927
Segment operating income (excl. special charges)		10,027			9,305			8,663			5,072			33,067			12,294			13,598			11,212			37,104
Corporate expenses		(2,259	)		(2,188	)		(2,585	)		(3,798	)		(10,830	)		(3,443	)		(3,105	)		(3,553	)		(10,101	)
Special charges		(38	)		—			(265	)		—			(303	)		(305	)		(133	)		(496	)		(934	)
Total operating income		7,730			7,117			5,813			1,274			21,934			8,546			10,360			7,163			26,069
INTEREST EXPENSE, NET		(1,020	)		(972	)		(1,001	)		(697	)		(3,690	)		(787	)		(667	)		(728	)		(2,182	)
OTHER (EXPENSE) INCOME, NET		(143	)		193			241			(57	)		234			181			(204	)		(174	)		(197	)
PRETAX INCOME		6,567			6,338			5,053			520			18,478			7,940			9,489			6,261			23,690
PROVISION FOR INCOME TAXES		(2,299	)		(2,216	)		(1,770	)		(390	)		(6,675	)		(2,779	)		(3,321	)		(1,955	)		(8,055	)
EFFECTIVE TAX RATE		35.0	%		35.0	%		35.0	%		75.0	%		36.1	%		35.0	%		35.0	%		31.2	%		34.0	%
NET INCOME	$	4,268		$	4,122		$	3,283		$	130		$	11,803		$	5,161		$	6,168		$	4,306		$	15,635
Weighted Average Common Shares Outstanding (Diluted)		16,001			15,908			15,825			15,932			15,877			16,054			16,171			16,228			16,079
EARNINGS PER COMMON SHARE (Diluted)	$	0.27		$	0.26		$	0.21		$	0.01		$	0.74		$	0.32		$	0.38		$	0.27		$	0.97
EARNINGS PER COMMON SHARE (Diluted) excluding special charges	$	0.27		$	0.26		$	0.22		$	0.01		$	0.76		$	0.33		$	0.39		$	0.29		$	1.01
EBIT	$	7,587		$	7,310		$	6,054		$	1,217		$	22,168		$	8,727		$	10,156		$	6,989		$	25,872
Depreciation		2,680			2,353			2,528			2,103			9,664			2,597			2,586			2,450			7,633
Amortization of intangibles		77			38			38			39			192			38			227			65			330
EBITDA	$	10,344		$	9,701		$	8,620		$	3,359		$	32,024		$	11,362		$	12,969		$	9,504		$	33,835
EBITDA AS A PERCENT OF SALES		11.4	%		10.3	%		9.6	%		3.1	%		8.4	%		11.1	%		10.9	%		8.7	%		10.2	%
CAPITAL EXPENDITURES	$	1,294		$	1,575		$	757		$	1,661		$	5,287		$	3,668		$	3,136		$	4,649		$	11,453

CIRCOR INTERNATIONAL, INC.

RECONCILIATION OF KEY PERFORMANCE MEASURES TO COMMONLY USED

GENERALLY ACCEPTED ACCOUNTING PRINCIPLE TERMS

(in thousands)

UNAUDITED

	2004															2005
	1ST QTR			2ND QTR			3RD QTR			4TH QTR			YTD			1ST QTR			2ND QTR			3RD QTR			YTD
FREE CASH FLOW [NET CASH FLOW FROM OPERATING ACTIVITIES LESS CAPITAL EXPENDITURES LESS DIVIDENDS PAID]	$	2,254		$	7,275		$	4,438		$	7,692		$	21,659		$	(412	)	$	12,565		$	5,307		$	17,460
ADD: Capital expenditures		1,294			1,575			757			1,661			5,287			3,668			3,136			4,649			11,453
Dividends paid		573			576			576			578			2,303			586			589			590			1,765
NET CASH PROVIDED BY OPERATING ACTIVITIES	$	4,121		$	9,426		$	5,771		$	9,931		$	29,249		$	3,842		$	16,290		$	10,546		$	30,678
NET (CASH) DEBT [TOTAL DEBT LESS CASH AND CASH EQUIVALENTS LESS INVESTMENTS]	$	(8,706	)	$	(4,054	)	$	(9,918	)	$	(19,928	)	$	(19,928	)	$	15,367		$	10,371		$	2,054		$	2,054
ADD: Cash and cash equivalents		59,963			54,527			60,055			58,653			58,653			24,942			29,269			39,154			39,154
Investments		7,679			7,517			7,953			4,155			4,155			4,117			4,026			4,308			4,308
TOTAL DEBT	$	58,936		$	57,990		$	58,090		$	42,880		$	42,880		$	44,426		$	43,666		$	45,516		$	45,516
NET DEBT AS % OF NET CAPITALIZATION		-3.3	%		-1.5	%		-3.6	%		-7.3	%		-7.3	%		4.9	%		3.3	%		0.7	%		0.7	%
NET CAPITALIZATION [TOTAL DEBT PLUS SHAREHOLDERS’ EQUITY LESS CASH AND CASH EQUIVALENTS, LESS INVESTMENTS]	$	267,728		$	276,260		$	275,870		$	273,507		$	273,507		$	313,378		$	310,514		$	309,763		$	309,763
LESS: Total debt		(58,936	)		(57,990	)		(58,090	)		(42,880	)		(42,880	)		(44,426	)		(43,666	)		(45,516	)		(45,516	)
ADD:   Cash and cash equivalents		59,963			54,527			60,055			58,653			58,653			24,942			29,269			39,154			39,154
Investments		7,679			7,517			7,953			4,155			4,155			4,117			4,026			4,308			4,308
TOTAL SHAREHOLDERS’ EQUITY		276,434			280,314			285,788			293,435			293,435			298,011			300,143			307,709			307,709
ADD: Total debt		58,936			57,990			58,090			42,880			42,880			44,426			43,666			45,516			45,516
TOTAL CAPITAL	$	335,370		$	338,304		$	343,878		$	336,315		$	336,315		$	342,437		$	343,809		$	353,225		$	353,225
TOTAL DEBT / TOTAL CAPITAL		17.6	%		17.1	%		16.9	%		12.7	%		12.7	%		13.0	%		12.7	%		12.9	%		12.9	%
EBIT [NET INCOME LESS INTEREST EXPENSE, NET]	$	7,587		$	7,310		$	6,054		$	1,217		$	22,168		$	8,727		$	10,156		$	6,989		$	25,872
LESS:   Interest expense, net		(1,020	)		(972	)		(1,001	)		(697	)		(3,690	)		(787	)		(667	)		(728	)		(2,182	)
Provision for income taxes		(2,299	)		(2,216	)		(1,770	)		(390	)		(6,675	)		(2,779	)		(3,321	)		(1,955	)		(8,055	)
NET INCOME	$	4,268		$	4,122		$	3,283		$	130		$	11,803		$	5,161		$	6,168		$	4,306		$	15,635
EBITDA [NET INCOME LESS INTEREST EXPENSE, NET LESS DEPRECIATION LESS AMORTIZATION LESS TAXES]	$	10,344		$	9,701		$	8,620		$	3,359		$	32,024		$	11,362		$	12,969		$	9,504		$	33,835
LESS: Interest expense, net		(1,020	)		(972	)		(1,001	)		(697	)		(3,690	)		(787	)		(667	)		(728	)		(2,182	)
Depreciation		(2,680	)		(2,353	)		(2,528	)		(2,103	)		(9,664	)		(2,597	)		(2,586	)		(2,450	)		(7,633	)
Amortization of intangibles		(77	)		(38	)		(38	)		(39	)		(192	)		(38	)		(227	)		(65	)		(330	)
Provision for income taxes		(2,299	)		(2,216	)		(1,770	)		(390	)		(6,675	)		(2,779	)		(3,321	)		(1,955	)		(8,055	)
NET INCOME	$	4,268		$	4,122		$	3,283		$	130		$	11,803		$	5,161		$	6,168		$	4,306		$	15,635
INCOME EXCLUDING SPECIAL CHARGES [NET INCOME LESS SPECIAL CHARGES, NET OF TAX]	$	4,293		$	4,122		$	3,455		$	130		$	11,997		$	5,359		$	6,254		$	4,647		$	16,251
LESS: Special charges, net of tax		(25	)		—			(172	)		—			(194	)		(198	)		(86	)		(341	)		(616	)
NET INCOME	$	4,268		$	4,122		$	3,283		$	130		$	11,803		$	5,161		$	6,168		$	4,306		$	15,635