Circor International (CIR) 8-K CIRCOR Reports Third Quarter Earnings of $1.16 Per Share

EXHIBIT 99.1

PRESS RELEASE

Contact:	Frederic M. Burditt
	Chief Financial Officer CIRCOR International, Inc. (781) 270-1200

CIRCOR Reports Third Quarter Earnings of $1.16 Per Share

• Company posts record quarterly operating margins at 13.9%

• Diluted earnings per share increased 87% over the third quarter of 2007 on revenue growth of 27%

Burlington, MA, October 29, 2008

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 third quarter ended September 28, 2008.

Revenues for the 2008 third quarter were $208.7 million, an increase of 27% from $164.0 million for the third quarter 2007. Net income for the third quarter of 2008 increased 91% to $19.8 million, or $1.16 per diluted share. Net income for the third quarter of 2007 was $10.4 million, or $0.62 per diluted share, which included special charges of $0.13 per diluted share primarily related to executive retirement expenses.

For the nine months ended September 28, 2008, revenues were $591.9 million, an increase of 21% from $491.2 million for the comparable period in 2007. Net income for the first nine months of 2008 was $51.1 million, or $3.01 per diluted share, an increase of 84% from $27.8 million, or $1.67 per diluted share, from the first nine months of 2007.

The Company reported orders totaling $164.3 million during the third quarter of 2008, a decrease of 12% from the third quarter of 2007, of which 10% declined due to the backlog revaluation from currency changes. Instrumentation and Thermal Fluid Controls segment orders remained strong, increasing 13% during the third quarter of 2008 compared to the same period in 2007, and increasing 1% compared to the second quarter of 2008. Energy segment orders declined 35% in the third quarter of 2008 compared to the same quarter in 2007 and declined 35% compared to the second quarter of 2008. Currency revaluation of the Euro-denominated backlog contributed to 15%, or $14.6 million of the Energy segment’s order decline. The remaining order drop in the Energy segment of $18.7 million is primarily the result of lower bookings for large projects for the Middle East. These lower bookings are the direct result of a short-term selective quoting approach targeted at large projects in the Middle East and implemented to enable the supply chain to alleviate past due deliveries caused by capacity constraints. The level of Middle East inquiries remains high and Energy segment orders in North America remained strong during the third quarter of 2008.

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For the first nine months of 2008, orders totaled $599.2 million with a third quarter 2008 ending backlog of $401.6 million. This compares to 2007 orders for the first nine months of $601.2 million and a third quarter 2007 ending backlog of $395.7 million.

During the third quarter of 2008, the Company consumed $2.1 million of free cash flow (defined as net cash from operating activities, less capital expenditures and dividends paid) and, for the first nine months of 2008, the Company had free cash flow of $24.1 million. This compares favorably to the first nine months of 2007 during which the Company generated $11.5 million of free cash flow. The improvement from 2007 largely resulted from the sharp increase in profitability partially off-set by an increase in working capital needs.

Revenue for Circor’s Instrumentation and Thermal Fluid Controls Products segment increased 13%, to $96.3 million from $85.1 million in the third quarter of 2007, with approximately 1% of the increase due to favorable currency adjustments. Incoming orders for this segment were $101.6 million for the third quarter 2008, an increase of 13% from $90.0 million in the third quarter 2007. This segment’s operating margin for the third quarter 2008 was 7.9% compared to 7.1% in the third quarter of 2007, and 10.9% in the second quarter of 2008. Removing the impact of asbestos-related charges from all periods, this segment’s operating margin for the third quarter 2008 was 12.3% compared to 9.3% in the third quarter of 2007 and 12.6% in the second quarter of 2008. Compared to the third quarter of 2007, improvement primarily came from higher unit volume, favorable product mix, customer price increases and improved productivity as well as the Motor Technologies, Inc. acquisition. However these increases were partially offset by continuing increases in raw material costs.

Circor’s Energy Products segment revenues increased by $33.5 million, or 42%, to $112.4 million for the quarter ended September 28, 2008 compared to $78.9 million in the quarter ended September 30, 2007. Higher foreign exchange rates, primarily the higher Euro compared to the US dollar, accounted for approximately 7% of the incremental revenue increase. This segment’s operating margin was 23.2% during the third quarter of 2008 compared to 17.4% for the third quarter of 2007 and 20.4% for the second quarter of 2008. Consistent with the second quarter of 2008, margins benefited from favorable mix on large international oil and gas projects and increased unit volume, partially offset by material cost inflation and unfavorable currency impacts from China sourcing as the RMB continued to appreciate versus the US dollar.

Bill Higgins, Circor’s President and Chief Executive Officer, said, “Our third quarter results once again exceeded our expectations, producing another record quarter with operating margins of 13.9% compared to 7.8% for the similar period in 2007 and 13.3% in the second quarter of 2008. Also, free cash flow has greatly exceeded the first nine months of last year. Both segments continued to contribute with Instrumentation and Thermal Fluid Controls’ operating margins, excluding asbestos related expenses, 300 basis points over the third quarter of 2007 and Energy Products 580 basis points higher. We believe we are gaining market share in the Instrumentation and Thermal Fluid Controls segment as evidenced by strong bookings, and, although our large project business supplying the Middle East has been working through supply chain constraints, we are delivering great results. In addition, we continue to have a very strong balance sheet with 5% total debt to capital and $65 million of cash, cash equivalents and short-term investments.”

5

Circor provided guidance for its fourth quarter 2008 results, indicating it expects earnings, excluding special charges, to be in the range of $0.82 to $0.94 per diluted share. This fourth quarter guidance reflects a $0.09 reduction as a result of recent foreign currency devaluations against the US dollar since the end of the third quarter.

CIRCOR International will hold a conference call to review its results on Thursday, October 30, 2008, at 1:00 pm ET. Interested parties may access the call by dialing 888-221-3915 from the US and Canada and (913) 312-1498 from international locations. A replay of the call will be available from 4:00 pm ET on Thursday, October 30, 2008, through 4:00 pm ET on Thursday, November 6, 2008. To access the replay, interested parties should dial (888) 203-1112 or (719) 457-0820 and enter confirmation code 5254517 when prompted. The presentation slides that will be discussed in the conference call are expected to be available today, Wednesday, October 29, 2008, by 6:00 pm ET and may be downloaded from the quarterly earnings page of the investor section on the CIRCOR website athttp://www.circor.com/quarterlyearnings.

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.

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CIRCOR INTERNATIONAL, INC.

CONSOLIDATED STATEMENTS OF OPERATIONS

(in thousands, except per share data)

UNAUDITED

	Three Months Ended						Nine Months Ended
	September 28, 2008			September 30, 2007			September 28, 2008			September 30, 2007
Net revenues	$	208,680		$	164,017		$	591,860		$	491,217
Cost of revenues		141,369			116,465			402,752			349,052
GROSS PROFIT		67,311			47,552			189,108			142,165
Selling, general and administrative expenses		38,297			32,672			112,934			98,136
Special charges		—			2,131			160			3,436
OPERATING INCOME		29,014			12,749			76,014			40,593
Other (income) expense:
Interest income		(447	)		(129	)		(954	)		(259	)
Interest expense		265			873			894			3,105
Other (income) expense, net		11			(1,508	)		660			(1,390	)
Total other expense		(171	)		(764	)		600			1,456
INCOME BEFORE INCOME TAXES		29,185			13,513			75,414			39,137
Provision for income taxes		9,412			3,148			24,321			11,347
NET INCOME	$	19,773		$	10,365		$	51,093		$	27,790
Earnings per common share:
Basic	$	1.17		$	0.63		$	3.04		$	1.70
Diluted	$	1.16		$	0.62		$	3.01		$	1.67
Weighted average common shares outstanding:
Basic		16,853			16,509			16,789			16,369
Diluted		17,068			16,768			17,000			16,660

CIRCOR INTERNATIONAL, INC.

CONSOLIDATED STATEMENTS OF CASH FLOWS

(in thousands)

UNAUDITED

	Nine Months Ended
	September 28, 2008			September 30, 2007
OPERATING ACTIVITIES
Net income	$	51,093		$	27,790
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation		8,852			8,282
Amortization		2,012			1,917
Compensation expense of stock-based plans		3,428			4,769
Tax effect of share based compensation		(2,510	)		(3,570	)
Loss on sale of assets held for sale		1			210
Gain on disposal of property, plant and equipment		(93	)		(50	)
Gain on sale of affiliate		—			(1,605	)
Equity in undistributed income of affiliates		—			452
Changes in operating assets and liabilities, net of effects from business acquisitions:
Trade accounts receivable		(36,689	)		(680	)
Inventories		(3,233	)		(14,037	)
Prepaid expenses and other assets		(1,794	)		(8,031	)
Accounts payable, accrued expenses and other liabilities		15,091			4,759
Net cash provided by operating activities		36,158			20,206
INVESTING ACTIVITIES
Additions to property, plant and equipment		(10,162	)		(6,886	)
Proceeds from disposal of property, plant and equipment		202			435
Proceeds from sale of assets held for sale		311			2,259
Proceeds from sale of affiliate		—			1,605
Purchase of ST investments		(155,786	)		—
Proceeds from sale of ST investments		134,044			—
Business acquisitions, net of cash acquired		(7,263	)		(2,704	)
Net cash used in investing activities		(38,654	)		(5,291	)
FINANCING ACTIVITIES
Proceeds from debt borrowings		86,495			70,359
Payments of debt		(86,358	)		(93,415	)
Dividends paid		(1,888	)		(1,840	)
Proceeds from the exercise of stock options		2,342			6,296
Tax effect of share based compensation		2,510			3,570
Net cash provided by (used in) financing activities		3,101			(15,030	)
Effect of exchange rate changes on cash and cash equivalents		(90	)		1,637
INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS		515			1,522
Cash and cash equivalents at beginning of year		34,662			28,652
CASH AND CASH EQUIVALENTS AT END OF PERIOD	$	35,177		$	30,174

CIRCOR INTERNATIONAL, INC.

CONSOLIDATED BALANCE SHEETS

(in thousands, except share data)

UNAUDITED

	September 28, 2008		December 31, 2007
ASSETS
Current Assets:
Cash & cash equivalents	$	35,177	$	34,662
Investments		29,376		8,861
Trade accounts receivable, less allowance for doubtful accounts of $ 1,813 and $2,151, respectively		162,267		125,663
Inventories		176,125		171,661
Prepaid expenses and other current assets		6,388		3,990
Deferred income taxes		9,175		8,220
Insurance receivable		6,353		6,885
Assets held for sale		—		312
Total Current Assets		424,861		360,254
Property, Plant and Equipment, net		84,228		82,465
Other Assets:
Goodwill		178,932		169,110
Intangibles, net		47,789		47,373
Non-current insurance receivable		5,014		5,014
Other assets		1,907		12,253
Total Assets	$	742,731	$	676,469
LIABILITIES AND SHAREHOLDERS’ EQUITY
Current Liabilities:
Accounts payable	$	87,910	$	82,038
Accrued expenses and other current liabilities		78,844		72,481
Accrued compensation and benefits		21,900		21,498
Asbestos liability		12,723		9,697
Income taxes payable		10,972		7,900
Notes payable and current portion of long-term debt		338		201
Total Current Liabilities		212,687		193,815
Long-Term Debt, net of current portion		22,186		21,901
Deferred Income Taxes		18,571		19,106
Long-Term Asbestos Liability		7,062		7,062
Other Non-Current Liabilities		11,337		14,201
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 16,895,250 and 16,650,407 issued and outstanding, respectively		169		167
Additional paid-in capital		246,711		240,000
Retained earnings		193,977		144,644
Accumulated other comprehensive income		30,031		35,573
Total Shareholders’ Equity		470,888		420,384
Total Liabilities and Shareholders’ Equity	$	742,731	$	676,469

CIRCOR INTERNATIONAL, INC.

SUMMARY OF ORDERS AND BACKLOG

(in thousands)

UNAUDITED

	Three Months Ended				Nine Months Ended
	September 28, 2008		September 30, 2007		September 28, 2008		September 30, 2007
ORDERS
Instrumentation & Thermal Fluid Controls	$	101,593	$	90,014	$	313,760	$	273,842
Energy Products		62,689		95,998		285,426		327,404
Total orders	$	164,282	$	186,012	$	599,186	$	601,246
	September 28, 2008		September 30, 2007
BACKLOG
Instrumentation & Thermal Fluid Controls	$	169,554	$	135,146
Energy Products		232,022		260,555
Total backlog	$	401,576	$	395,701

Note: Backlog includes all unshipped customer orders.

CIRCOR INTERNATIONAL, INC.

SUMMARY REPORT BY SEGMENT

(in thousands, except earnings per share)

UNAUDITED

	2007															2008
	1ST QTR			2ND QTR			3RD QTR			4TH QTR			YTD			1ST QTR			2ND QTR			3RD QTR			YTD
NET REVENUES
Instrumentation & Thermal Fluid Controls (TFC)	$	81,296		$	85,740		$	85,094		$	91,466		$	343,596		$	88,450		$	98,867		$	96,298		$	283,615
Energy Products		79,967			80,197			78,923			83,057			322,144			88,125			107,738			112,382			308,245
Total		161,263			165,937			164,017			174,523			665,740			176,575			206,605			208,680			591,860
ADJUSTED OPERATING MARGIN
Instrumentation & TFC (excl. special & asbestos charges)		8.9	%		9.6	%		9.3	%		12.8	%		10.2	%		12.5	%		12.6	%		12.3	%		12.5	%
Energy Products (excl. special charges)		12.7	%		16.3	%		17.4	%		15.3	%		15.4	%		16.2	%		20.4	%		23.2	%		20.2	%
Segment operating income (excl. special & asbestos charges)		10.8	%		12.8	%		13.2	%		14.0	%		12.7	%		14.4	%		16.6	%		18.1	%		16.5	%
Corporate expenses (excl. special & asbestos charges)		-2.3	%		-2.3	%		-3.0	%		-3.1	%		-2.7	%		-2.6	%		-2.4	%		-2.4	%		-2.5	%
Asbestos charges (attributable to Instrumentation & TFC)		-0.6	%		-0.6	%		-1.1	%		-2.1	%		-1.1	%		-0.6	%		-1.0	%		-1.8	%		-1.2	%
Special charges		-0.4	%		-0.4	%		-1.3	%		0.5	%		-0.4	%		-0.1	%		0.0	%		0.0	%		0.0	%
Total operating margin		7.4	%		9.5	%		7.8	%		9.3	%		8.5	%		11.0	%		13.3	%		13.9	%		12.8	%
ADJUSTED OPERATING INCOME
Instrumentation & TFC (excl. special & asbestos charges)		7,271			8,204			7,913			11,681			35,069			11,069			12,451			11,803			35,323
Energy Products (excl. special charges)		10,125			13,063			13,745			12,675			49,608			14,303			21,938			26,023			62,264
Segment operating income (excl. special & asbestos charges)		17,396			21,267			21,658			24,356			84,677			25,372			34,389			37,826			97,587
Corporate expenses (excl. special & asbestos charges)		(3,653	)		(3,804	)		(4,942	)		(5,463	)		(17,862	)		(4,628	)		(4,890	)		(5,001	)		(14,519	)
Asbestos charges (attributable to Instrumentation & TFC)		(1,038	)		(1,018	)		(1,837	)		(3,641	)		(7,534	)		(1,075	)		(2,009	)		(3,810	)		(6,894	)
Special charges		(691	)		(615	)		(2,130	)		922			(2,514	)		(160	)		—			—			(160	)
Total operating income		12,014			15,830			12,749			16,174			56,767			19,509			27,490			29,015			76,014
INTEREST EXPENSE, NET		(1,218	)		(884	)		(744	)		(155	)		(3,001	)		(145	)		23			182			60
OTHER (EXPENSE) INCOME, NET		97			(215	)		1,508			(133	)		1,257			(401	)		(248	)		(11	)		(660	)
PRETAX INCOME		10,893			14,731			13,513			15,886			55,023			18,963			27,265			29,186			75,414
PROVISION FOR INCOME TAXES		(3,486	)		(4,713	)		(3,148	)		(5,765	)		(17,112	)		(6,068	)		(8,840	)		(9,413	)		(24,321	)
EFFECTIVE TAX RATE		32.0	%		32.0	%		23.3	%		36.3	%		31.1	%		32.0	%		32.4	%		32.3	%		32.2	%
NET INCOME	$	7,407		$	10,018		$	10,365		$	10,121		$	37,911		$	12,895		$	18,425		$	19,773		$	51,093
Weighted Average Common Shares Outstanding (Diluted)		16,533			16,679			16,768			16,925			16,730			16,872			17,053			17,068			17,000
EARNINGS PER COMMON SHARE (Diluted)	$	0.45		$	0.60		$	0.62		$	0.60		$	2.27		$	0.76		$	1.08		$	1.16		$	3.01
EBIT	$	12,111		$	15,615		$	14,257		$	16,041		$	58,024		$	19,108		$	27,242		$	29,004		$	75,354
Depreciation		2,808			2,812			2,662			2,588			10,870			2,874			2,977			3,001			8,852
Amortization of intangibles		626			632			659			662			2,579			656			676			680			2,012
EBITDA	$	15,545		$	19,059		$	17,578		$	19,291		$	71,473		$	22,638		$	30,895		$	32,685		$	86,218
EBITDA AS A PERCENT OF SALES		9.6	%		11.5	%		10.7	%		11.1	%		10.7	%		12.8	%		15.0	%		15.7	%		14.6	%
CAPITAL EXPENDITURES	$	1,776		$	2,266		$	2,844		$	5,097		$	11,983		$	2,851		$	3,433		$	3,878		$	10,162

CIRCOR INTERNATIONAL, INC.

RECONCILIATION OF KEY PERFORMANCE MEASURES TO COMMONLY USED

GENERALLY ACCEPTED ACCOUNTING PRINCIPLE TERMS

(in thousands)

UNAUDITED

	2007															2008
	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]	$	(5,429	)	$	5,439		$	11,470		$	30,989		$	42,469		$	(5,366	)	$	31,536		$	(2,062	)	$	24,108
ADD: Capital expenditures		1,776			2,266			2,844			5,097			11,983			2,851			3,433			3,878			10,162
Dividends paid		609			614			617			624			2,464			626			631			631			1,888
NET CASH PROVIDED BY (USED IN) OPERATING ACTIVITIES	$	(3,044	)	$	8,319		$	14,931		$	36,710		$	56,916		$	(1,889	)	$	35,600		$	2,447		$	36,158
NET (CASH) DEBT [TOTAL DEBT LESS CASH & CASH EQUIVALENTS LESS INVESTMENTS]	$	39,366		$	29,848		$	11,815		$	(21,421	)	$	(21,421	)	$	(21,709	)	$	(46,796	)	$	(42,029	)	$	(42,029	)
ADD: Cash & cash equivalents		27,050			25,281			30,174			34,662			34,662			42,690			38,835			35,177			35,177
Investments		87			94			100			8,861			8,861			4,036			31,590			29,376			29,376
TOTAL DEBT	$	66,503		$	55,223		$	42,089		$	22,102		$	22,102		$	25,017		$	23,629		$	22,524		$	22,524
NET DEBT AS % OF NET CAPITALIZATION		10	%		7	%		3	%		-5	%		-5	%		-5	%		-11	%		-10	%		-10	%
NET CAPITALIZATION [TOTAL DEBT PLUS SHAREHOLDERS’ EQUITY LESS CASH & CASH EQUIVALENTS, LESS INVESTMENTS]	$	408,944		$	415,386		$	420,951		$	398,963		$	398,963		$	424,670		$	419,162		$	428,859		$	428,859
LESS: Total debt		(66,503	)		(55,223	)		(42,089	)		(22,102	)		(22,102	)		(25,017	)		(23,629	)		(22,524	)		(22,524	)
ADD: Cash & cash equivalents		27,050			25,281			30,174			34,662			34,662			42,690			38,835			35,177			35,177
Investments		87			94			100			8,861			8,861			4,036			31,590			29,376			29,376
TOTAL SHAREHOLDERS’ EQUITY		369,578			385,538			409,136			420,384			420,384			446,379			465,958			470,888			470,888
ADD: Total debt		66,503			55,223			42,089			22,102			22,102			25,017			23,629			22,524			22,524
TOTAL CAPITAL	$	436,081		$	440,761		$	451,225		$	442,486		$	442,486		$	471,396		$	489,587		$	493,412		$	493,412
TOTAL DEBT / TOTAL CAPITAL		15	%		13	%		9	%		5	%		5	%		5	%		5	%		5	%		5	%
EBIT [NET INCOME LESS INTEREST EXPENSE, NET]	$	12,111		$	15,615		$	14,257		$	16,041		$	58,024		$	19,108		$	27,242		$	29,004		$	75,354
LESS: Interest expense, net		(1,218	)		(884	)		(744	)		(155	)		(3,001	)		(145	)		23			182			60
Provision for income taxes		(3,486	)		(4,713	)		(3,148	)		(5,765	)		(17,112	)		(6,068	)		(8,840	)		(9,413	)		(24,321	)
NET INCOME	$	7,407		$	10,018		$	10,365		$	10,121		$	37,911		$	12,895		$	18,425		$	19,773		$	51,093
EBITDA [NET INCOME LESS INTEREST EXPENSE, NET LESS DEPRECIATION LESS AMORTIZATION LESS TAXES]	$	15,545		$	19,059		$	17,578		$	19,291		$	71,473		$	22,638		$	30,895		$	32,685		$	86,218
LESS:
Interest expense, net		(1,218	)		(884	)		(744	)		(155	)		(3,001	)		(145	)		23			182			60
Depreciation		(2,808	)		(2,812	)		(2,662	)		(2,588	)		(10,870	)		(2,874	)		(2,977	)		(3,001	)		(8,852	)
Amortization of intangibles		(626	)		(632	)		(659	)		(662	)		(2,579	)		(656	)		(676	)		(680	)		(2,012	)
Provision for income taxes		(3,486	)		(4,713	)		(3,148	)		(5,765	)		(17,112	)		(6,068	)		(8,840	)		(9,413	)		(24,321	)
NET INCOME	$	7,407		$	10,018		$	10,365		$	10,121		$	37,911		$	12,895		$	18,425		$	19,773		$	51,093