Circor International (CIR) 8-K CIRCOR Reports Third-Quarter 2010 Results

EXHIBIT 99.1

PRESS RELEASE

CIRCOR Reports Third-Quarter 2010 Results

• 23% Revenue Growth Driven by Year-Over-Year Increase in Energy Sales

• 51% Orders Increase Due to Strength in Short-Cycle Energy and Earlier Cycle End Markets, as well as Acquisitions

• Adjusted EPS Above Guidance Primarily from Operating Performance, Currency Impacts and Favorable Tax Rate

Burlington, MA – November 4, 2010 –CIRCOR International, Inc. (NYSE: CIR), a provider of valves and other highly engineered products and subsystems that control the flow of fluids safely and efficiently in the aerospace, energy and industrial markets, today announced financial results for the third quarter ended October 3, 2010.

Management Comments on Third-Quarter Results

“Our third-quarter financial results demonstrate continuing improvements on the top and bottom line,” said Chairman and Chief Executive Officer Bill Higgins. “Revenues came in at the high end of our guidance, while earnings, exclusive of Leslie bankruptcy and asbestos charges, surpassed our expectations. Revenue growth was primarily driven by continued strength at the short cycle Energy business and earlier-cycle Flow Technologies end markets. Earnings benefited from segment performance, currency impacts and a reduced tax rate.”

“We are particularly pleased with our bookings performance, with orders up 51% year-over-year, which includes 17% from acquisitions,” said Higgins. “We achieved order growth across all three business segments, but saw particular strength in our short-cycle Energy business. While we had expected further sequential pick up in Energy’s longer cycle international project businesses, orders remained essentially flat. Flow Technologies experienced increased orders across most end markets. The increase in orders at Aerospace was primarily driven by the acquisition of Castle Precision Industries.”

“As previously announced, we have obtained the asbestos claimant votes necessary for approval of Leslie Controls’ pre-negotiated Chapter 11 reorganization and the U.S. Bankruptcy Court has entered an order confirming the plan,” said Higgins. “We are now focused on obtaining district court approval and then winning any appeals that may be pursued.”

Leslie’s final emergence from bankruptcy would not occur until any appeals are favorably resolved, although CIRCOR and Leslie believe that any such appeals would be without merit. Leslie is continuing to conduct business as usual during the Chapter 11 process.

Consolidated Results

Revenues for the third quarter of 2010 were $177.6 million, a 23% increase from $144.3 million generated in the third quarter of 2009. CIRCOR reported net income for the third quarter of 2010 of $10.4 million, or $0.60 per diluted share, compared with net income of $8.4 million, or $0.49 per diluted share, for the third quarter of 2009.

Pre-tax Leslie bankruptcy and asbestos charges were $2.3 million for the three months ended October 3, 2010, compared with $2.0 million of non-bankruptcy asbestos charges for the year-earlier period. Excluding special charges and Leslie bankruptcy and asbestos charges net of tax, adjusted earnings per diluted share were $0.70 for the third quarter of 2010, an increase of 27% compared with $0.54 in the third quarter of 2009.

Consolidated Orders and Free Cash Flow

The Company received orders totaling $207.1 million during the third quarter of 2010, an increase of 51% compared with the third quarter of 2009 and a 21% increase compared with the second quarter of 2010. Backlog as of October 3, 2010 was $391.6 million, up 32% from backlog of $297.9 million at September 27, 2009 and up 23% from $317.6 million at July 4, 2010.

During the third quarter of 2010, the Company used $3.3 million of free cash flow (defined as net cash from operating activities, less capital expenditures and dividends paid) compared with generating $11.2 million in the third quarter of 2009 due primarily to changes in working capital and increased capital expenditures.

Energy

CIRCOR’s Energy segment revenues of $80.6 million for the quarter ended October 3, 2010 represent a 32% increase from $61.2 million for the quarter ended September 27, 2009. The increase included 24% organic growth and 12% from acquisitions, which was partially offset by a negative foreign currency adjustment of 4%. The organic growth was the result of a strong year-over-year rebound in the North American short-cycle business.

Incoming orders for the third quarter of 2010 were $98.5 million, an increase of 95% year over year and 24.0% sequentially. The year-over-year growth was due to strength in the North American short-cycle business and the acquisition of Pipeline Engineering in the fourth quarter of 2009. Ending backlog totaled $153.0 million, a 34% increase year over year and a 23% increase sequentially.

The Energy segment adjusted operating margin, which excludes the impact of special charges, was 11.1% during the third quarter of 2010 compared with 10.9% for the third quarter of 2009 and 8.3% for the second quarter of 2010. The increase in third-quarter 2010 operating margin was primarily driven by organic growth, associated operating leverage, favorable penalty reserve adjustments and productivity improvements. This was partially offset by continued pricing pressures - especially for large international projects - unfavorable mix and acquisition impacts.

Aerospace

CIRCOR’s Aerospace segment revenues increased by 8% to $28.3 million for the third quarter of 2010 from $26.2 million in the third quarter of 2009. The increase in revenues was driven by 9% growth from acquisitions and 2% organic growth, which was partially offset by a 2% decline from foreign currency adjustments. The organic growth was from sales of military landing gear, which offset small declines in other end markets.

Incoming orders for the third quarter of 2010 were $31.3 million, an increase of 15% year over year and 16% sequentially. The majority of the increase in orders was due to the acquisition of Castle in August. Ending backlog totaled $152.8 million, an increase of 27% year over year and 30% sequentially.

The Aerospace segment’s adjusted operating margin, which excludes the impact of special charges, was 9.6% for the third quarter of 2010 compared with 13.2% for the third quarter of 2009 and 14.6% for the second quarter of 2010. Third-quarter 2010 margins decreased primarily due to higher operating expenses related to support of new programs and acquisition transaction costs, partially offset by productivity gains and favorable pricing.

Flow Technologies

CIRCOR’s Flow Technologies segment revenues increased 21% to $68.6 million from $56.9 million in the third quarter of 2009. Third-quarter 2010 revenues reflected organic growth of 22%, primarily due to semiconductor, maritime, instrumentation and process strength, and growth from acquisitions of 2%, which was partially offset by foreign currency adjustments of 3%.

Incoming orders for this segment were $77.4 million for the third quarter of 2010, an increase of 30% year over year and 20% sequentially. The year-over-year increase was due to strength in all markets, with the exception of petrochemical and refining. Ending backlog totaled $85.9 million, an increase of 36% year over year and 14% sequentially.

This segment’s adjusted operating margin, which excludes the impact of special and Leslie asbestos and bankruptcy charges, for the third quarter of 2010 was 13.1% compared with 10.9% in the third quarter of 2009, and 10.1% in the second quarter of 2010. The third-quarter year-over-year margin increase was due to higher volumes, productivity and favorable mix.

Business and Financial Outlook

“Our sales and bookings trends are both positive, led by the short-cycle Energy and early-cycle Flow Technologies businesses,” said Higgins. “While the long-cycle businesses have recently stabilized, we have not seen a meaningful pick up at this point. Our balance sheet remains strong and will enable us to fund the Leslie reorganization plan and continue to invest in organic growth and strategic acquisitions.”

CIRCOR currently expects revenues for the fourth quarter of 2010 in the range of $192 million to $202 million and adjusted earnings in the range of $0.50 to $0.63 per diluted share. CIRCOR’s guidance for adjusted earnings per share excludes $0.06 per diluted share in Leslie asbestos and bankruptcy charges and assumes that exchange rates remain at present levels.

Conference Call Information

CIRCOR International will hold a conference call to review its financial results today, November 4, 2010, at 10:00 a.m. ET. Those who wish to listen to the conference call and view the accompanying presentation slides should visit“Webcasts & Presentations” in the“Investors” portion of the CIRCOR website. The live call also can be accessed by dialing (877) 407-5790 or (201) 689-8328. If you are unable to listen to the live call, the webcast will be archived for one year on the Company’s website.

Use of Non-GAAP Financial Measures

Adjusted net income, adjusted earnings per diluted share, adjusted operating margin, and free cash flow are non-GAAP financial measures and are intended to serve as a complement to results provided in accordance with accounting principles generally accepted in the United States. CIRCOR believes that such information provides an additional measurement and consistent historical comparison of the Company’s performance. A reconciliation of the non-GAAP financial measures to the most directly comparable GAAP measures is available in this news release.

Safe Harbor Statement

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. Any statements in this press release that are not statements of historical fact are forward-looking statements, including, but not limited to, those relating to CIRCOR’s future performance, including fourth-quarter revenue and earnings guidance; and the

Company’s expectations related to the process for Leslie Controls’ emergence from bankruptcy. 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 AND SUBSEQUENT REPORTS ON FORMS 10-Q, 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.

About CIRCOR International, Inc.CIRCOR International, Inc. designs, manufactures and markets valves and other highly engineered products and subsystems that control the flow of fluids safely and efficiently in the aerospace, energy and industrial markets. With more than 9,000 customers in over 100 countries, CIRCOR has a diversified product portfolio with recognized, market-leading brands. CIRCOR’s culture, built on the CIRCOR Business System, is defined by the Company’s commitment to attracting, developing and retaining the best talent and pursuing continuous improvement in all aspects of its business and operations. The Company’s strategy includes growing organically by investing in new, differentiated products; adding value to component products; and increasing the development of mission-critical subsystems and solutions. CIRCOR also plans to leverage its strong balance sheet to acquire strategically complementary businesses. For more information, visit the Company’s investor relations web site athttp://investors.circor.com.

Contact:

Frederic M. Burditt

Chief Financial Officer

CIRCOR International

(781) 270-1200

CIRCOR INTERNATIONAL, INC.

CONSOLIDATED STATEMENTS OF OPERATIONS

(in thousands, except per share data)

UNAUDITED

	Three Months Ended						Nine Months Ended
	October 3, 2010			September 27, 2009			October 3, 2010			September 27, 2009
Net revenues	$	177,577		$	144,327		$	491,851		$	484,509
Cost of revenues		126,096			102,462			348,109			338,123
GROSS PROFIT		51,481			41,865			143,742			146,386
Selling, general and administrative expenses		35,648			29,787			109,024			98,127
Leslie asbestos and bankruptcy charges		2,343			1,977			30,603			13,682
Special recoveries		—			(543	)		—			(1,678	)
OPERATING INCOME		13,490			10,644			4,115			36,255
Other (income) expense:
Interest income		(69	)		(77	)		(162	)		(391	)
Interest expense		803			471			2,036			857
Other income, net		(853	)		(959	)		(646	)		(1,409	)
Total other (income) expense		(119	)		(565	)		1,228			(943	)
INCOME BEFORE INCOME TAXES		13,609			11,209			2,887			37,198
Provision (benefit) for income taxes		3,210			2,804			(2,005	)		10,601
NET INCOME	$	10,399		$	8,405		$	4,892		$	26,597
Earnings per common share:
Basic	$	0.61		$	0.49		$	0.29		$	1.56
Diluted	$	0.60		$	0.49		$	0.28		$	1.56
Weighted average common shares outstanding:
Basic		17,123			17,023			17,095			17,003
Diluted		17,258			17,116			17,238			17,050

CIRCOR INTERNATIONAL, INC.

CONSOLIDATED STATEMENTS OF CASH FLOWS

(in thousands)

UNAUDITED

	Nine Months Ended
	October 3, 2010			September 27, 2009
OPERATING ACTIVITIES
Net income	$	4,892		$	26,597
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation		9,509			9,620
Amortization		3,065			1,956
Provision for Leslie bankruptcy settlement		24,974			—
Compensation expense of stock-based plans		2,445			2,351
Tax effect of share based compensation		(114	)		412
Loss (gain) on disposal of property, plant and equipment		248			(60	)
Changes in operating assets and liabilities, net of effects from business acquisitions:
Trade accounts receivable		(13,734	)		30,690
Inventories		(20,727	)		40,836
Prepaid expenses and other assets		5,368			8,546
Accounts payable, accrued expenses and other liabilities		(1,183	)		(91,717	)
Net cash provided by operating activities		14,743			29,231
INVESTING ACTIVITIES
Additions to property, plant and equipment		(11,400	)		(6,106	)
Proceeds from the sale of property, plant and equipment		75			95
Purchase of investments		—			(278,916	)
Proceeds from sale of investments		21,427			312,918
Business acquisitions, net of cash acquired		(34,401	)		(10,428	)
Net cash (used in) provided by investing activities		(24,299	)		17,563
FINANCING ACTIVITIES
Proceeds from long-term debt		91,750			57,372
Payments of long-term debt		(60,202	)		(64,703	)
Debt issuance costs					(2,814	)
Dividends paid		(1,982	)		(1,930	)
Proceeds from the exercise of stock options		329			37
Tax effect of share based compensation		114			(412	)
Net cash provided by (used in) financing activities		30,009			(12,450	)
Effect of exchange rate changes on cash and cash equivalents		1,723			1,891
INCREASE IN CASH AND CASH EQUIVALENTS		22,176			36,235
Cash and cash equivalents at beginning of year		46,350			47,473
CASH AND CASH EQUIVALENTS AT END OF PERIOD	$	68,526		$	83,708

CIRCOR INTERNATIONAL, INC.

CONSOLIDATED BALANCE SHEETS

(in thousands, except share data)

UNAUDITED

	October 3, 2010		December 31, 2009
ASSETS
Current Assets:
Cash & cash equivalents	$	68,526	$	46,350
Short-term investments		97		21,498
Trade accounts receivable, less allowance for doubtful accounts of $1,208 and $1,992, respectively		135,199		115,260
Inventories		172,543		145,031
Income taxes refundable		—		726
Prepaid expenses and other current assets		8,324		4,195
Deferred income tax asset		43,177		15,847
Insurance receivables		194		4,614
Assets held for sale		542		1,167
Total Current Assets		428,602		354,688
Property, Plant and Equipment, net		96,547		95,167
Other Assets:
Goodwill		60,437		47,893
Intangibles, net		63,943		55,238
Deferred income tax asset		—		5,676
Other assets		5,351		3,391
Total Assets	$	654,880	$	562,053
LIABILITIES AND SHAREHOLDERS’ EQUITY
Current Liabilities:
Accounts payable	$	80,841	$	57,239
Accrued expenses and other current liabilities		44,694		46,736
Accrued compensation and benefits		21,658		18,617
Leslie asbestos and bankruptcy related liabilities		80,064		12,476
Income taxes payable		1,471		—
Notes payable and current portion of long-term debt		10,613		5,914
Total Current Liabilities		239,341		140,982
Long-Term Debt, net of current portion		31,785		1,565
Deferred income taxes		11,786		—
Long-Term Leslie asbestos liability		—		47,785
Other Non-Current Liabilities		20,249		21,313
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 17,098,925 and 16,991,365 issued and outstanding, respectively		171		170
Additional paid-in capital		252,471		249,960
Retained earnings		89,328		86,408
Accumulated other comprehensive income		9,749		13,870
Total Shareholders’ Equity		351,719		350,408
Total Liabilities and Shareholders’ Equity	$	654,880	$	562,053

CIRCOR INTERNATIONAL, INC.

SUMMARY OF ORDERS AND BACKLOG

(in thousands)

UNAUDITED

	Three Months Ended				Nine Months Ended
	October 3, 2010		September 27, 2009		October 3, 2010		September 27, 2009
ORDERS 1
Energy	$	98,456	$	50,574	$	244,070	$	170,100
Aerospace		31,280		27,231		93,109		89,415
Flow Technologies		77,367		59,688		210,787		167,902
Total orders	$	207,103	$	137,493	$	547,966	$	427,417
	October 3, 2010		September 27, 2009
BACKLOG2
Energy	$	152,968	$	114,139
Aerospace		152,790		120,453
Flow Technologies		85,859		63,280
Total backlog	$	391,617	$	297,872

Note 1: Beginning in Q2 2010, orders have been adjusted to exclude the foreign exchange impact from backlog remeasurement The three and nine months ended September 27, 2009 reflect a decrease of $6.1 million and $7.4 million, respectively

Note 2: Backlog includes all unshipped customer orders.

CIRCOR INTERNATIONAL, INC.

SUMMARY REPORT BY SEGMENT

(in thousands, except earnings per share)

UNAUDITED

	2009															2010
	1ST QTR			2ND QTR			3RD QTR			4TH QTR			YTD			1ST QTR			2ND QTR			3RD QTR			YTD
NET REVENUES
Energy	$	89,307		$	76,814		$	61,185		$	66,113		$	293,419		$	57,722		$	77,305		$	80,613		$	215,640
Aerospace		28,344			30,243			26,234			28,506			113,327			27,274			27,811			28,316			83,401
Flow Technologies		57,996			57,478			56,908			63,494			235,876			61,273			62,889			68,648			192,810
Total		175,647			164,535			144,327			158,113			642,622			146,269			168,005			177,577			491,851
* ADJUSTED OPERATING MARGIN
Energy		18.1	%		12.3	%		10.9	%		3.0	%		11.7	%		3.5	%		8.3	%		11.1	%		8.1	%
Aerospace		15.4	%		16.2	%		13.2	%		14.7	%		14.9	%		13.2	%		14.6	%		9.6	%		12.5	%
Flow Technologies		11.6	%		9.5	%		10.9	%		11.7	%		11.0	%		10.2	%		10.1	%		13.1	%		11.2	%
Segment operating margin		15.5	%		12.1	%		11.3	%		8.6	%		12.0	%		8.1	%		10.0	%		11.7	%		10.1	%
Corporate expenses		-3.1	%		-3.4	%		-3.0	%		-3.3	%		-3.2	%		-3.1	%		-3.1	%		-2.7	%		-3.0	%
* Adjusted operating margin		12.5	%		8.7	%		8.4	%		5.3	%		8.8	%		5.0	%		6.9	%		8.9	%		7.1	%
Leslie asbestos and bankruptcy charges (recoveries)		4.7	%		2.1	%		1.4	%		25.5	%		8.4	%		-0.4	%		17.2	%		1.3	%		6.2	%
Impairment charges		0.0	%		0.0	%		0.0	%		0.3	%		0.1	%		0.0	%		0.0	%		0.0	%		0.0	%
Special charges (recoveries)		-0.6	%		0.0	%		-0.4	%		0.0	%		-0.3	%		0.0	%		0.0	%		0.0	%		0.0	%
Total operating margin		8.4	%		6.6	%		7.4	%		-20.6	%		0.6	%		5.4	%		-10.3	%		7.6	%		0.8	%
* ADJUSTED OPERATING INCOME
Energy		16,169			9,461			6,696			1,966			34,292			2,025			6,424			8,968			17,417
Aerospace		4,372			4,905			3,461			4,195			16,933			3,607			4,067			2,726			10,400
Flow Technologies		6,744			5,484			6,197			7,444			25,869			6,276			6,367			8,997			21,640
Segment operating income		27,285			19,850			16,354			13,605			77,094			11,908			16,858			20,691			49,457
Corporate expenses		(5,365	)		(5,589	)		(4,276	)		(5,267	)		(20,497	)		(4,607	)		(5,274	)		(4,859	)		(14,740	)
* Adjusted operating income		21,920			14,261			12,078			8,338			56,597			7,301			11,584			15,832			34,717
Leslie asbestos and bankruptcy charges (recoveries)		8,263			3,442			1,977			40,397			54,079			(648	)		28,908			2,343			30,603
Impairment charges		—			—			—			485			485			—			—			—			—
Special charges (recoveries)		(1,135	)		—			(543	)		—			(1,678	)		—			—			—			—
Total operating income		14,792			10,819			10,644			(32,544	)		3,711			7,949			(17,325	)		13,490			4,115
INTEREST EXPENSE, NET		(32	)		(41	)		(394	)		(602	)		(1,069	)		(554	)		(586	)		(734	)		(1,874	)
OTHER (EXPENSE) INCOME, NET		183			267			959			(967	)		442			51			(258	)		853			646
PRETAX INCOME (LOSS)		14,943			11,045			11,209			(34,113	)		3,084			7,446			(18,169	)		13,609			2,886
(PROVISION) BENEFIT FOR INCOME TAXES		(4,483	)		(3,313	)		(2,804	)		13,386			2,786			(1,713	)		6,928			(3,210	)		2,005
EFFECTIVE TAX RATE		30.0	%		30.0	%		25.0	%		39.2	%		-90.3	%		23.0	%		38.1	%		23.6	%		-69.5	%
NET (LOSS) INCOME	$	10,460		$	7,732		$	8,405		$	(20,727	)	$	5,870		$	5,733		$	(11,241	)	$	10,399		$	4,892
Weighted Average Common Shares Outstanding (Diluted)		17,014			17,066			17,116			17,033			17,111			17,193			17,109			17,258			17,238
EARNINGS PER COMMON SHARE (Diluted)	$	0.61		$	0.45		$	0.49		$	(1.22	)	$	0.34		$	0.33		$	(0.66	)	$	0.60		$	0.28
EBIT	$	14,975		$	11,086		$	11,603		$	(33,511	)	$	4,153		$	8,000		$	(17,583	)	$	14,343		$	4,761
Depreciation		2,839			3,245			3,536			3,687			13,307			3,228			3,115			3,166			9,509
Amortization of intangibles		622			627			707			1,078			3,034			979			964			1,122			3,064
EBITDA	$	18,436		$	14,958		$	15,846		$	(28,746	)	$	20,494		$	12,207		$	(13,504	)	$	18,631		$	17,334
EBITDA AS A PERCENT OF SALES		10.5	%		9.1	%		11.0	%		-18.2	%		3.2	%		8.3	%		-8.0	%		10.5	%		3.5	%
CAPITAL EXPENDITURES	$	2,576		$	1,925		$	1,605		$	4,926		$	11,032		$	3,606		$	4,580		$	3,213		$	11,400

* Adjusted Operating Income & Margin excludes Special, Impairment, and Leslie asbestos and bankruptcy charges

CIRCOR INTERNATIONAL, INC.

RECONCILIATION OF KEY PERFORMANCE MEASURES TO COMMONLY USED

GENERALLY ACCEPTED ACCOUNTING PRINCIPLE TERMS

(in thousands)

UNAUDITED

	2009															2010
	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]	$	(7,928	)	$	17,882		$	11,241		$	11,757		$	32,952		$	(7,019	)	$	11,947		$	(3,566	)	$	1,361
ADD:    Capital expenditures		2,576			1,925			1,605			4,926			11,032			3,606			4,580			3,213			11,400
Dividends paid		657			637			636			638			2,568			639			640			703			1,982
NET CASH PROVIDED BY (USED IN) OPERATING ACTIVITIES	$	(4,695	)	$	20,444		$	13,482		$	17,321		$	46,552		$	(2,774	)	$	17,167		$	350		$	14,743
NET (CASH) DEBT [TOTAL DEBT LESS CASH & CASH EQUIVALENTS LESS INVESTMENTS]	$	(49,519	)	$	(69,331	)	$	(77,081	)	$	(60,369	)	$	(60,369	)	$	(52,713	)	$	(55,976	)	$	(26,225	)	$	(26,225	)
ADD:
Cash & cash equivalents		36,113			33,038			83,708			46,350			46,350			37,812			60,857			68,526			68,526
Investments		36,991			48,344			3,023			21,498			21,498			22,412			94			97			97
TOTAL DEBT	$	23,585		$	12,051		$	9,650		$	7,479		$	7,479		$	7,511		$	4,975		$	42,398		$	42,398
DEBT AS % OF EQUITY		7	%		3	%		3	%		2	%		2	%		2	%		2	%		12	%		12	%
TOTAL DEBT		23,585			12,051			9,650			7,479			7,479			7,511			4,975			42,398			42,398
TOTAL SHAREHOLDERS’ EQUITY		341,860			357,596			371,728			350,408			350,408			349,244			324,128			351,719			351,719
EBIT [NET INCOME LESS INCOME TAXES LESS INTEREST EXPENSE, NET]	$	14,975		$	11,086		$	11,603		$	(33,511	)	$	4,153		$	8,000		$	(17,583	)	$	14,343		$	4,760
LESS:
Interest expense, net		(32	)		(41	)		(394	)		(602	)		(1,069	)		(554	)		(586	)		(734	)		(1,874	)
Provision for income taxes		(4,483	)		(3,313	)		(2,804	)		13,386			2,786			(1,713	)		6,928			(3,210	)		2,005
NET INCOME	$	10,460		$	7,732		$	8,405		$	(20,727	)	$	5,870		$	5,733		$	(11,241	)	$	10,399		$	4,892
EBITDA [NET INCOME LESS INTEREST EXPENSE, NET, LESS DEPRECIATION LESS AMORTIZATION LESS INCOME LESS DEPRECIATION LESS AMORTIZATION LESS INCOME TAXES] TAXES]	$	18,436		$	14,958		$	15,846		$	(28,746	)	$	20,494		$	12,207		$	(13,504	)	$	18,631		$	17,334
LESS:
Interest expense, net		(32	)		(41	)		(394	)		(602	)		(1,069	)		(554	)		(586	)		(734	)		(1,874	)
Depreciation		(2,839	)		(3,245	)		(3,536	)		(3,687	)		(13,307	)		(3,228	)		(3,115	)		(3,166	)		(9,509	)
Amortization		(622	)		(627	)		(707	)		(1,078	)		(3,034	)		(979	)		(964	)		(1,122	)		(3,065	)
Provision for income taxes		(4,483	)		(3,313	)		(2,804	)		13,386			2,786			(1,713	)		6,928			(3,210	)		2,005
NET INCOME	$	10,460		$	7,732		$	8,405		$	(20,727	)	$	5,870		$	5,733		$	(11,241	)	$	10,399		$	4,891
ADJUSTED INCOME [NET INCOME EXCLUDING SPECIAL, IMPAIRMENT, AND LESLIE ASBESTOS AND BANKRUPTCY CHARGES, NET OF TAX]	$	15,037		$	9,969		$	9,285		$	5,826		$	40,117		$	5,312		$	7,549		$	11,922		$	24,784
LESS:
Special charges (recoveries), net of tax		(794	)		—			(405	)		—			(1,199	)		—			—			—			—
Impairment charges		—			—			—			295			295
Leslie asbestos and bankruptcy charges (recoveries), net of tax		5,371			2,237			1,285			26,258			35,151			(421	)		18,790			1,523			19,892
NET INCOME	$	10,460		$	7,732		$	8,405		$	(20,727	)	$	5,870		$	5,733		$	(11,241	)	$	10,399		$	4,892
ADJUSTED WEIGHTED AVERAGE SHARES		N/A			N/A			N/A			17,140			N/A			N/A			17,109			N/A			17,095
Adjustment for anti-dilutive conversion of shares		—			—			—			107			—			—			153			—			143
Weighted average common shares outstanding (diluted)		17,014			17,066			17,116			17,033			17,111			17,193			17,262			17,258			17,238
ADJUSTED EARNINGS PER SHARE [EPS EXCLUDING SPECIAL, IMPAIRMENT, AND LESLIE ASBESTOS AND BANKRUPTCY CHARGES, NET OF TAX]	$	0.88		$	0.58		$	0.54		$	0.34		$	2.34		$	0.31		$	0.44		$	0.69		$	1.45
LESS:    Special charges (recoveries), net of tax impact on EPS	$	(0.05	)	$	—		$	(0.02	)	$	—		$	(0.07	)	$	—		$	—		$	—		$	—
Impairment charges	$	—		$	—		$	—		$	0.02		$	0.02
Leslie asbestos and bankruptcy charges (recoveries), net of tax impact on EPS	$	0.32		$	0.13		$	0.08		$	1.54		$	2.05		$	(0.02	)	$	1.10		$	0.09		$	1.16
EARNINGS PER COMMON SHARE (Diluted)	$	0.61		$	0.45		$	0.49		$	(1.22	)	$	0.34		$	0.33		$	(0.66	)	$	0.60		$	0.28

CIRCOR INTERNATIONAL, INC

Leslie Controls Asbestos Items

(in thousands, except case information)

	2009															2010
	1ST QTR			2ND QTR			3RD QTR			4TH QTR			YTD			1ST QTR			2ND QTR			3RD QTR			YTD
Quarterly Case Rollforward
Beginning open cases		968			1,103			1,158			1,143			968			1,104			1,150			1,214			1,104
Cases filed		222			203			131			131			687			150			169			132			451
Cases resolved and dismissed		(87	)		(148	)		(146	)		(170	)		(551	)		(104	)		(105	)		(6	)		(215	)
Ending open cases		1,103			1,158			1,143			1,104			1,104			1,150			1,214			1,340			1,340
Ending open mesothelioma cases		578			584			612			597			597			623			672			713			713
Income Statement Amounts
Indemnity costs accrued (cases filed)	$	4,602		$	2,109		$	1,140		$	39,810		$	47,661		$	699		$	1,797		$	—		$	2,496
Adverse verdict costs (recoveries)		90			97			95			(1,308	)		(1,026	)		65			(2,455	)		—			(2,390	)
Defense costs incurred		3,166			3,275			3,009			2,862			12,312			3,731			3,435			16			7,182
Insurance recoveries adjustment		2,069			—			—			—			2,069			(3,652	)		—			—			(3,652	)
Insurance recoveries accrued		(1,664	)		(2,039	)		(2,268	)		(966	)		(6,937	)		(1,491	)		(1,135	)		—			(2,626	)
Leslie Bankruptcy related charges, net		—			—			—			—			—			—			27,266			2,327			29,593
Net pre-tax Leslie asbestos and bankruptcy expense (recovery)	$	8,263		$	3,442		$	1,976		$	40,398		$	54,079		$	(648	)	$	28,908		$	2,343		$	30,603
Balance Sheet Amounts
Bankruptcy and indemnity liability	$	20,781		$	19,849		$	20,060		$	57,716					$	57,732		$	78,976		$	78,067
Incurred defense cost liability		4,212			5,169			3,615			2,544						2,099			3,455			1,997
Insurance recoveries receivable		(9,088	)		(7,426	)		(6,485	)		(4,614	)					(7,997	)		(1,180	)		(194	)
Net Leslie asbestos liability	$	15,905		$	17,592		$	17,190		$	55,646					$	51,834		$	81,251		$	79,870

CIRCOR INTERNATIONAL, INC.

RECONCILIATION OF FUTURE PERFORMANCE MEASURES TO COMMONLY

USED GENERALLY ACCEPTED ACCOUNTING PRINCIPLE TERMS

UNAUDITED

	4TH QTR 2010
	Low		High
EXPECTED ADJUSTED EARNINGS PER SHARE [EPS EXCLUDING SPECIAL, IMPAIRMENT, AND LESLIE ASBESTOS AND BANKRUPTCY CHARGES, NET OF TAX]	$	0.50	$	0.63
LESS:
Expected special charges (recoveries), net of tax impact on EPS	$	—	$	—
Expected impairment charges, net of tax impact on EPS	$	—	$	—
Expected Leslie asbestos and bankruptcy charges, net of tax impact on EPS	$	0.06	$	0.06
EXPECTED EARNINGS PER COMMON SHARE (Diluted)	$	0.44	$	0.57