Circor International (CIR) 8-K CIRCOR Announces Record Second Quarter Earnings of $0.60 per share

EXHIBIT 99.1

PRESS RELEASE

Contact:	Kenneth W. Smith
	Chief Financial Officer
	CIRCOR International, Inc.
	(781) 270-1200

CIRCOR Announces Record Second Quarter Earnings of $0.60 per share

• Company posts new records for orders and backlog.

• Operational performance improves in both segments.

• End markets remain healthy, raising expectations for second half results.

Burlington, MA, August 1, 2007

CIRCOR International, Inc. (NYSE: CIR), a leading provider of valves and other fluid control devices for the instrumentation, aerospace, thermal fluid and energy markets, today announced results for the second quarter and six months ended July 1, 2007.

Revenues for the 2007 second quarter were $165.9 million, an increase of 15% from $144.4 million for the second quarter 2006 period. Net income for the second quarter of 2007 increased 55% to $10.0 million, or $0.60 per diluted share, which included $0.03 per diluted share of special charges primarily related to the consolidation of manufacturing facilities. Net income for the second quarter of 2006 was $6.5 million, or $0.40 per diluted share.

For the six months ended July 1, 2007, revenues were $327.2 million, an increase of 20% from $271.7 million for the comparable period in 2006. Net income for the first half of 2007 was $17.4 million, or $1.05 per diluted share, an increase of 50% from $11.6 million, or $0.71 per diluted share, in the same period last year. Results for the first half of 2007 include $0.05 per diluted share of special charges.

The Company received a record level of orders totaling $228.4 million during the second quarter of 2007, increasing 18% over the second quarter of 2006, and a 22% increase from the first quarter of 2007. For the first six months of 2007, orders totaled $415.2 million with July 1, 2007, backlog reaching another record level of $373.7 million, representing increases of 5% and 28%, respectively, over the same periods in 2006.

During the second quarter of 2007, the Company generated $5.4 million of free cash flow (defined as net cash from operating activities, less capital expenditures and dividends paid) and, for the first six months of 2007, the Company had positive free cash flow of less than $0.1 million despite higher working capital needed to support the Company’s record orders and backlog. This compares favorably to the first six months of 2006 during which the Company used $4.8 million of free cash flow. The improvement from 2006 largely resulted from the sharp increase in profitability.

Circor’s Instrumentation and Thermal Fluid Controls Products segment revenues increased 8% to $85.7 million from $79.5 million in the second quarter of 2006. Incoming orders for this segment were a quarterly record $99.1 million, while this segment’s backlog at July 1, 2007, reached a record $130.2 million, a 15% increase from one year ago, and an 11% increase from the end of the first quarter of 2007. This segment’s operating margin for the second quarter was 8.7% excluding special charges for a U.S. facility closure, compared to the 8.6% operating margin achieved in the second quarter of 2006. However, the second quarter margin represented an 80 basis point increase from the first quarter of 2007, excluding special charges, reflecting higher unit shipments and improved pricing.

Circor’s Energy Products segment revenues increased 24% to $80.2 million from $64.9 million in the second quarter of last year. Incoming orders for the quarter were $129.3 million and ending backlog totaled another record at $243.5 million compared to incoming orders of $113.4 million and ending backlog of $179.1 million in the same periods last year. This segment’s operating margin reached a record 16.3% during the second quarter of 2007 compared to 11.4% for the second quarter of 2006, reflecting shipments of high-margin projects.

David A. Bloss, Sr., Circor’s Chairman and Chief Executive Officer, said, “Oil and gas exploration and processing activity has once again exceeded our expectations this past quarter, despite some softness experienced in Western Canada. Our profitability also benefited from a favorable mix of international project shipments as well as increased sourcing from our facility in China and productivity improvements worldwide. We expect to see this strong market activity continue into 2008 with some dampening effect for near-term seasonal wet weather conditions in North America and for distributor inventory replenishment cycles, since they are now approaching target on-hand quantity levels.”

Mr. Bloss continued, “Results for our Instrumentation and Thermal Fluid Control Products segment were in line with our expectations. The primary markets for this segment are showing mixed trends, but are positive overall due to the strength of the general aviation and European industrial process controls sectors. Operating margins for this segment improved from the first quarter trough and we expect to post quarterly improvements going forward as our cost reduction and customer delivery performance initiatives continue to be realized with stronger leadership in place at all major facilities.”

Circor provided guidance for its third quarter 2007 results, indicating it expects earnings to be in the range of $0.53 to $0.56 per diluted share, with no expected special charges. The guidance compares favorably to earnings in the third quarter of 2006 of $0.45 per diluted share, but is lower than second quarter 2007 results due to an anticipated less-favorable mix of product revenues within the Energy Products segment that will be partially offset by higher operational performance of the Instrumentation and Thermal Fluid Controls Products segment.

CIRCOR International has scheduled a conference call to review its results for the second quarter of 2007 tomorrow, August 2, 2007, at 10:30 am ET. Interested parties may access the call by dialing (800) 289-0544 from the US and Canada and (913) 981-5533 from international locations. A replay of the call will be available from 1:30 pm ET on August 2, 2007, through midnight on August 8, 2007. To access the replay, interested parties should dial (888) 203-1112 or (719) 457-0820 and enter confirmation code # 4597912 when prompted. The presentation

slides that will be discussed in the conference call are expected to be available on Wednesday, August 1, 2007, 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/quarterlyearnings/. An audio recording of the conference call also is expected to be posted on the company’s website by August 6, 2007.

This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Reliance should not be placed on forward-looking statements because they involve unknown risks, uncertainties and other factors, which are, in some cases, beyond the control of CIRCOR. Actual events, performance or results could differ materially from the anticipated events, performance or results expressed or implied by such forward-looking statements.BEFORE MAKING ANY INVESTMENT DECISIONS REGARDING OUR COMPANY, WE STRONGLY ADVISE YOU TO READ THE SECTION ENTITLED “RISK FACTORS” IN OUR MOST RECENT ANNUAL REPORT ON FORM 10-K, WHICH CAN BE ACCESSED UNDER THE “INVESTORS” LINK OF OUR WEBSITE AT WWW.CIRCOR.COM. 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						Six Months Ended
	July 1, 2007			July 2, 2006			July 1, 2007			July 2, 2006
Net revenues	$	165,937		$	144,389		$	327,200		$	271,684
Cost of revenues		116,116			102,268			232,587			191,225
GROSS PROFIT		49,821			42,121			94,613			80,459
Selling, general and administrative expenses		33,376			31,409			65,464			61,259
Special charges		615			—			1,305			—
OPERATING INCOME		15,830			10,712			27,844			19,200
Other (income) expense:
Interest income		(77	)		(89	)		(130	)		(197	)
Interest expense		961			1,553			2,232			2,686
Other (income) expense, net		214			(248	)		118			(380	)
Total other expense		1,098			1,216			2,220			2,109
INCOME BEFORE INCOME TAXES		14,732			9,496			25,624			17,091
Provision for income taxes		4,714			3,038			8,200			5,469
NET INCOME	$	10,018		$	6,458		$	17,424		$	11,622
Earnings per common share:
Basic	$	0.61		$	0.40		$	1.07		$	0.73
Diluted	$	0.60		$	0.40		$	1.05		$	0.71
Weighted average common shares outstanding:
Basic		16,390			15,968			16,301			15,911
Diluted		16,679			16,332			16,582			16,266

CIRCOR INTERNATIONAL, INC.

CONSOLIDATED STATEMENTS OF CASH FLOWS

(in thousands)

UNAUDITED

	Six Months Ended
	July 1, 2007			July 2, 2006
OPERATING ACTIVITIES
Net income	$	17,424		$	11,622
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation		5,620			5,788
Amortization		1,258			1,082
Compensation expense of stock-based plans		1,711			1,580
Tax effect of share based compensation		(2,065	)		(957	)
Loss on sale of assets held for sale		210			—
Gain on disposal of property, plant and equipment		(28	)		(80	)
Equity in undistributed income of affiliates		43			(8	)
Changes in operating assets and liabilities, net of effects from business acquisitions:
Trade accounts receivable		938			(8,472	)
Inventories		(15,276	)		(24,471	)
Prepaid expenses and other assets		(6,927	)		(1,213	)
Accounts payable, accrued expenses and other liabilities		2,367			14,833
Net cash provided by (used in) operating activities		5,275			(296	)
INVESTING ACTIVITIES
Additions to property, plant and equipment		(4,042	)		(3,320	)
Proceeds from disposal of property, plant and equipment		412			304
Proceeds from sale of assets held for sale		508			100
Business acquisitions, net of cash acquired		—			(60,989	)
Purchase of investments		—			(5,734	)
Proceeds from sale of investments		—			3,195
Net cash used in investing activities		(3,122	)		(66,444	)
FINANCING ACTIVITIES
Proceeds from debt borrowings		45,994			65,547
Payments of debt		(55,616	)		(7,038	)
Dividends paid		(1,223	)		(1,195	)
Proceeds from the exercise of stock options		2,611			1,708
Tax effect of share based compensation		2,065			957
Net cash (used in) provided by financing activities		(6,169	)		59,979
Effect of exchange rate changes on cash and cash equivalents		645			1,615
DECREASE IN CASH AND CASH EQUIVALENTS		(3,371	)		(5,146	)
Cash and cash equivalents at beginning of year		28,652			31,112
CASH AND CASH EQUIVALENTS AT END OF PERIOD	$	25,281		$	25,966

CIRCOR INTERNATIONAL, INC.

CONSOLIDATED BALANCE SHEETS

(in thousands, except share data)

UNAUDITED

	July 1, 2007		December 31, 2006
ASSETS
Current Assets:
Cash & cash equivalents	$	25,281	$	28,652
Investments		94		86
Trade accounts receivable, less allowance for doubtful accounts of $ 2,842 and $2,523, respectively		109,054		108,689
Inventories		167,420		150,160
Prepaid expenses and other current assets		10,258		2,926
Deferred income taxes		6,649		7,305
Assets held for sale		2,647		3,132
Total Current Assets		321,403		300,950
Property, Plant and Equipment, net		77,927		79,039
Other Assets:
Goodwill		165,099		163,720
Intangibles, net		48,599		49,226
Other assets		12,792		12,740
Total Assets	$	625,820	$	605,675
LIABILITIES AND SHAREHOLDERS’ EQUITY
Current Liabilities:
Accounts payable	$	78,913	$	71,788
Accrued expenses and other current liabilities		48,165		54,359
Accrued compensation and benefits		17,176		15,325
Income taxes payable		3,259		6,027
Notes payable and current portion of long-term debt		238		415
Total Current Liabilities		147,751		147,914
Long-Term Debt, net of current portion		54,985		64,411
Deferred Income Taxes		22,880		21,674
Other Non-Current Liabilities		14,666		14,375
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 16,442,319 and 16,181,070 issued and outstanding, respectively		164		162
Additional paid-in capital		230,599		224,508
Retained earnings		125,398		109,251
Accumulated other comprehensive income		29,377		23,380
Total Shareholders’ Equity		385,538		357,301
Total Liabilities and Shareholders’ Equity	$	625,820	$	605,675

CIRCOR INTERNATIONAL, INC.

SUMMARY OF ORDERS AND BACKLOG

(in thousands)

UNAUDITED

	Three Months Ended					Six Months Ended
	July 1, 2007		July 2, 2006			July 1, 2007		July 2, 2006
ORDERS
Instrumentation & Thermal Fluid Controls	$	99,057	$	80,218	*	$	183,828	$	165,706	*
Energy Products		129,345		113,440			231,416		229,419
Total orders	$	228,402	$	193,658		$	415,244	$	395,125
	July 1, 2007		December 31, 2006
BACKLOG
Instrumentation & Thermal Fluid Controls	$	130,224	$	113,434
Energy Products		243,490		172,235
Total backlog	$	373,714	$	285,669

Note: Backlog includes all unshipped customer orders.

* Orders for the Instrumentation & Thermal Fluid Controls Products segment have been reduced by $2,489 and $4,265 for the 3-months ended July 2, 2006 and the 6-months ended July 2, 2006, respectively, for the sale in December 2006 of the small, French business, Societe Alsacienne Regulaves Thermiques von Rohr (“Sart”).

CIRCOR INTERNATIONAL, INC.

SUMMARY REPORT BY SEGMENT

(in thousands, except earnings per share)

UNAUDITED

	2006															2007
	1ST QTR			2ND QTR			3RD QTR			4TH QTR			YTD			1ST QTR			2ND QTR			YTD
NET REVENUES
Instrumentation & Thermal Fluid Controls (TFC)	$	72,434		$	79,470		$	79,205		$	81,591		$	312,700		$	81,296		$	85,740		$	167,036
Energy Products		54,861			64,919			71,207			88,024			279,011			79,967			80,197			160,164
Total		127,295			144,389			150,412			169,615			591,711			161,263			165,937			327,200
OPERATING MARGIN
Instrumentation & TFC		9.1	%		8.6	%		9.5	%		8.2	%		8.8	%		7.9	%		8.7	%		8.3	%
Energy Products		10.4	%		11.4	%		13.2	%		15.7	%		13.0	%		12.7	%		16.3	%		14.5	%
Segment operating margin		9.7	%		9.9	%		11.3	%		12.1	%		10.8	%		10.3	%		12.4	%		11.3	%
Corporate expenses		-3.0	%		-2.5	%		-2.8	%		-2.4	%		-2.7	%		-2.4	%		-2.4	%		-2.4	%
Special charges		0.0	%		0.0	%		-0.3	%		-0.1	%		-0.1	%		-0.4	%		-0.4	%		-0.4	%
Total operating margin		6.7	%		7.4	%		8.1	%		9.5	%		8.0	%		7.4	%		9.5	%		8.5	%
OPERATING INCOME
Instrumentation & TFC (excl. special & unusual charges)		6,595			6,861			7,522			6,680			27,658			6,433			7,438			13,871
Energy Products (excl. special & unusual charges)		5,702			7,429			9,420			13,797			36,348			10,125			13,063			23,188
Segment operating income (excl. special & unusual charges)		12,297			14,290			16,942			20,477			64,006			16,558			20,501			37,059
Corporate expenses		(3,809	)		(3,578	)		(4,284	)		(4,146	)		(15,817	)		(3,853	)		(4,056	)		(7,909	)
Special charges		—						(479	)		(200	)		(679	)		(691	)		(615	)		(1,306	)
Total operating income		8,488			10,712			12,179			16,131			47,510			12,014			15,830			27,844
INTEREST EXPENSE, NET		(1,024	)		(1,464	)		(1,383	)		(1,246	)		(5,117	)		(1,218	)		(884	)		(2,102	)
OTHER (EXPENSE) INCOME, NET		131			248			(27	)		(486	)		(134	)		97			(214	)		(117	)
PRETAX INCOME		7,595			9,496			10,769			14,399			42,259			10,893			14,732			25,625
PROVISION FOR INCOME TAXES		(2,431	)		(3,038	)		(3,446	)		(4,016	)		(12,931	)		(3,486	)		(4,714	)		(8,200	)
EFFECTIVE TAX RATE		32.0	%		32.0	%		32.0	%		27.9	%		30.6	%		32.0	%		32.0	%		32.0	%
NET INCOME	$	5,164		$	6,458		$	7,323		$	10,383		$	29,328		$	7,407		$	10,018		$	17,425
Weighted Average Common Shares Outstanding (Diluted)		16,197			16,332			16,368			16,438			16,291			16,533			16,679			16,582
EARNINGS PER COMMON SHARE (Diluted)	$	0.32		$	0.40		$	0.45		$	0.63		$	1.80		$	0.45		$	0.60		$	1.05
EARNINGS PER COMMON SHARE (Diluted) excluding special charges	$	0.32		$	0.40		$	0.47		$	0.64		$	1.83		$	0.48		$	0.63		$	1.10
EBIT	$	8,619		$	10,960		$	12,152		$	15,645		$	47,376		$	12,111		$	15,616		$	27,727
Depreciation		2,619			3,169			2,901			2,517			11,206			2,808			2,812			5,620
Amortization of intangibles		515			567			709			603			2,394			626			632			1,258
EBITDA	$	11,753		$	14,696		$	15,762		$	18,765		$	60,976		$	15,545		$	19,060		$	34,605
EBITDA AS A PERCENT OF SALES		9.2	%		10.2	%		10.5	%		11.1	%		10.3	%		9.6	%		11.5	%		10.6	%
CAPITAL EXPENDITURES	$	1,578		$	1,742		$	3,823		$	2,790		$	9,933		$	1,776		$	2,266		$	4,042

CIRCOR INTERNATIONAL, INC.

RECONCILIATION OF KEY PERFORMANCE MEASURES TO COMMONLY USED

GENERALLY ACCEPTED ACCOUNTING PRINCIPLE TERMS

(in thousands)

UNAUDITED

	2006															2007
	1ST QTR			2ND QTR			3RD QTR			4TH QTR			YTD			1ST QTR			2ND QTR			YTD
FREE CASH FLOW [NET CASH FLOW FROM OPERATING ACTIVITIES LESS CAPITAL EXPENDITURES LESS DIVIDENDS PAID]	$	(5,213	)	$	402		$	8,865		$	13,476		$	17,530		$	(5,429	)	$	5,439		$	10
ADD: Capital expenditures		1,578			1,742			3,823			2,790			9,933			1,776			2,266			4,042
Dividends paid		595			600			600			600			2,395			609			614			1,223
NET CASH PROVIDED BY (USED IN) OPERATING ACTIVITIES	$	(3,040	)	$	2,744		$	13,288		$	16,866		$	29,858		$	(3,044	)	$	8,319		$	5,275
NET (CASH) DEBT [TOTAL DEBT LESS CASH & CASH EQUIVALENTS LESS INVESTMENTS]	$	68,271		$	64,336		$	55,157		$	36,088		$	36,088		$	39,366		$	29,848		$	29,848
ADD: Cash & cash equivalents		27,069			25,966			33,265			28,652			28,652			27,050			25,281			25,281
Investments		—			2,639			90			86			86			87			94			94
TOTAL DEBT	$	95,340		$	92,941		$	88,512		$	64,826		$	64,826		$	66,503		$	55,223		$	55,223
NET DEBT AS % OF NET CAPITALIZATION		17.7	%		16.2	%		13.9	%		9.2	%		9.2	%		9.6	%		7.2	%		7.2	%
NET CAPITALIZATION [TOTAL DEBT PLUS SHAREHOLDERS’ EQUITY LESS CASH & CASH EQUIVALENTS, LESS INVESTMENTS]	$	385,659		$	397,814		$	397,012		$	393,389		$	393,389		$	408,944		$	415,386		$	415,386
LESS: Total debt		(95,340	)		(92,941	)		(88,512	)		(64,826	)		(64,826	)		(66,503	)		(55,223	)		(55,223	)
ADD: Cash & cash equivalents		27,069			25,966			33,265			28,652			28,652			27,050			25,281			25,281
Investments		—			2,639			90			86			86			87			94			94
TOTAL SHAREHOLDERS’ EQUITY		317,388			333,478			341,855			357,301			357,301			369,578			385,538			385,538
ADD: Total debt		95,340			92,941			88,512			64,826			64,826			66,503			55,223			55,223
TOTAL CAPITAL	$	412,728		$	426,419		$	430,367		$	422,127		$	422,127		$	436,081		$	440,761		$	440,761
TOTAL DEBT / TOTAL CAPITAL		23.1	%		21.8	%		20.6	%		15.4	%		15.4	%		15.3	%		12.5	%		12.5	%
EBIT [NET INCOME LESS INTEREST EXPENSE, NET]	$	8,619		$	10,960		$	12,152		$	15,645		$	47,376		$	12,111		$	15,616		$	27,727
LESS: Interest expense, net		(1,024	)		(1,464	)		(1,383	)		(1,246	)		(5,117	)		(1,218	)		(884	)		(2,102	)
Provision for income taxes		(2,431	)		(3,038	)		(3,446	)		(4,016	)		(12,931	)		(3,486	)		(4,714	)		(8,200	)
NET INCOME	$	5,164		$	6,458		$	7,323		$	10,383		$	29,328		$	7,407		$	10,018		$	17,425
EBITDA [NET INCOME LESS INTEREST EXPENSE, NET LESS DEPRECIATION LESS AMORTIZATION LESS TAXES]	$	11,753		$	14,696		$	15,762		$	18,765		$	60,976		$	15,545		$	19,060		$	34,605
LESS:
Interest expense, net		(1,024	)		(1,464	)		(1,383	)		(1,246	)		(5,117	)		(1,218	)		(884	)		(2,102	)
Depreciation		(2,619	)		(3,169	)		(2,901	)		(2,517	)		(11,206	)		(2,808	)		(2,812	)		(5,620	)
Amortization of intangibles		(515	)		(567	)		(709	)		(603	)		(2,394	)		(626	)		(632	)		(1,258	)
Provision for income taxes		(2,431	)		(3,038	)		(3,446	)		(4,016	)		(12,931	)		(3,486	)		(4,714	)		(8,200	)
NET INCOME	$	5,164		$	6,458		$	7,323		$	10,383		$	29,328		$	7,407		$	10,018		$	17,425
INCOME EXCLUDING SPECIAL CHARGES [NET INCOME LESS SPECIAL CHARGES, NET OF TAX]	$	5,164		$	6,458		$	7,649		$	10,527		$	29,799		$	7,877		$	10,436		$	18,313
LESS: Special charges, net of tax		—			—			(326	)		(144	)		(471	)		(470	)		(418	)		(888	)
NET INCOME	$	5,164		$	6,458		$	7,323		$	10,383		$	29,328		$	7,407		$	10,018		$	17,425
Weighted average common shares outstanding (diluted)		16,197			16,332			16,368			16,438			16,291			16,533			16,679			16,582
EARNINGS PER SHARE EXCLUDING SPECIAL CHARGES	$	0.32		$	0.40		$	0.47		$	0.64		$	1.83		$	0.48		$	0.63		$	1.10