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

EXHIBIT 99.1

PRESS RELEASE

CIRCOR Reports Fourth-Quarter and 2010 Results

•    Q4 Revenue and Adjusted EPS in Line with Guidance Range

•    Q4 Revenues Grow 23% Year over Year to $194.1 Million

•    Q4 Orders Increase 22% on 50% Energy Bookings Growth over 2010

Burlington, MA – February 24, 2011 –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 fourth quarter and year ended December 31, 2010.

Management Comments on Fourth-Quarter Results

“CIRCOR concluded 2010 with solid top line growth for the fourth quarter,” said Chairman and Chief Executive Officer Bill Higgins. “Total revenues were up 23% from the fourth quarter of 2009 in line with our initial guidance, driven by strong short-cycle Energy segment growth. Adjusted earnings, excluding Leslie asbestos and bankruptcy charges, were also within our initial guidance range.”

“We are pleased with year-over-year order growth in the Energy segment of 50%, confirming that capital spending on large international projects is gradually coming off the cyclical bottom,” said Higgins.

“Finally, we are ecstatic with the affirmation by the U.S. Federal District Court of Leslie’s reorganization plan,” said Higgins. “We have now cleared the last major milestone for Leslie Controls to emerge from bankruptcy free of asbestos liabilities.”

Consolidated Results

Revenues for the fourth quarter of 2010 were $194.1 million, a 23% increase from $158.1 million generated in the fourth quarter of 2009. CIRCOR reported net income for the fourth quarter of 2010 of $7.7 million, or $0.44 per diluted share, compared with a net loss of $20.7 million, or $1.22 per share, for the fourth quarter of 2009.

Fourth-quarter 2010 net income included pretax Leslie asbestos and bankruptcy charges of $2.2 million, compared with charges during the fourth quarter of 2009 of $40.4 million of pretax Leslie asbestos charges and a $0.5 million intangible trade name impairment charge. Excluding special, impairment and Leslie asbestos and bankruptcy charges net of tax, adjusted earnings per diluted share increased 56% to $0.53 for the fourth quarter of 2010, compared with $0.34 in the fourth quarter of 2009.

Consolidated Orders and Free Cash Flow

The Company received orders totaling $212.4 million during the fourth quarter of 2010, an increase of 22% compared with the fourth quarter of 2009 and a 3% increase compared with the third quarter of 2010. Backlog as of December 31, 2010 was $404.3 million, up 28% from backlog of $316.7 million at December 31, 2009 and up 3% from $391.6 million at October 3, 2010.

During the fourth quarter of 2010, the Company generated $15.7 million of free cash flow (defined as net cash from operating activities, less capital expenditures and dividends paid) compared with generating $11.8 million in the fourth quarter of 2009, with the increase primarily due to higher net income. For full year 2010, the Company had free cash flow of $16.9 million compared with $33.0 million in 2009. The decline in free cash flow from 2009 largely resulted from working capital increases and higher capital expenditures.

Energy

CIRCOR’s Energy segment revenues of $90.2 million for the quarter ended December 31, 2010 represent a 37% increase from $66.1 million for the quarter ended December 31, 2009. The increase included 41% organic growth, which was partially offset by a negative foreign currency adjustment of 4%. The organic growth was primarily the result of strong shipment volume in the North American short-cycle business.

Incoming orders for the fourth quarter of 2010 were $120.8 million, an increase of 50% year over year and 23% sequentially. The year-over-year growth was primarily due to continued strength in the North American short-cycle business and a strong recovery in late-cycle large energy projects. Ending backlog totaled $179.9 million, a 35% increase year over year and an 18% increase sequentially.

For the fourth quarter of 2010, the Energy segment adjusted operating margin, which excludes the impact of special charges, of 6.7% compares with 3.0% for the fourth quarter of 2009 and 11.1% for the third quarter of 2010. The 2010 year-over-year increase in fourth-quarter adjusted operating margin was primarily driven by organic growth, associated operating leverage, and lack of severance and consolidation expenses which were incurred in the fourth quarter of 2009. This improvement was partially offset by severe pricing pressures and cost overruns in large international projects.

Aerospace

CIRCOR’s Aerospace segment revenues increased by 24% to $35.5 million for the fourth quarter of 2010 from $28.5 million in the fourth quarter of 2009. The increase in revenues was driven by 15% growth from acquisitions and 12% organic growth, which was partially offset by a 3% decline from foreign currency adjustments. The organic growth was from sales across most end markets.

Incoming orders for the fourth quarter of 2010 were $30.8 million, an increase of 24% year over year, but down 2% sequentially. The majority of the year-over-year increase in orders was due to the acquisition of Castle in August 2010. Ending backlog totaled $147.2 million, an increase of 28% year over year, but down 4% sequentially.

The Aerospace segment’s adjusted operating margin was 14.1% for the fourth quarter of 2010, compared with 14.7% for the fourth quarter of 2009, which excludes the impact of special charges, and 9.6% for the third quarter of 2010. Fourth-quarter 2010 adjusted operating margins decreased primarily due to higher operating expenses related to the support of new programs and acquisition integration costs.

Flow Technologies

CIRCOR’s Flow Technologies segment revenues increased 8% to $68.4 million for the fourth quarter of 2010 from $63.5 million in the fourth quarter of 2009. Fourth-quarter 2010 revenues reflected organic growth of 10%, primarily due to semiconductor, maritime, industrial and process strength, and growth from acquisitions of 1%, which was partially offset by foreign currency adjustments of 3%.

Incoming orders for this segment were $60.8 million for the fourth quarter of 2010, a decrease of 12% year over year and 21% sequentially. The year-over-year and sequential decrease was due to lower semiconductor and maritime orders offsetting moderate growth in most other markets. Ending backlog totaled $77.2 million, an increase of 14% year over year and a decrease of 10% sequentially.

This segment’s adjusted operating margin, which excludes the impact of Leslie asbestos and bankruptcy charges, for the fourth quarter of 2010 was 12.5%, compared with 11.7% in the fourth quarter of 2009 and 13.1% in the third quarter of 2010. The fourth-quarter year-over-year adjusted operating margin increase was due primarily to higher volumes and associated leverage in addition to a gain from a small asset disposition.

Business and Financial Outlook

“We executed well on our growth strategy in 2010,” said Higgins. “Our strategy is to strengthen our positions in targeted end-markets and build global capabilities in high-growth emerging markets through organic and acquisition growth while incrementally expanding margins. We believe this strategy will enable us to double the size of our company within the next three to five years.”

“We remain cautiously optimistic as we proceed in 2011. Most of the energy markets are rebounding although pricing of large projects continues to be competitive. Commercial aerospace looks stronger in general, but we expect weakness in military sales. Most of our industrial markets are continuing to show growth,” concluded Higgins.

CIRCOR currently expects revenues for the first quarter of 2011 in the range of $193 million to $203 million and adjusted earnings in the range of $0.41 to $0.51 per diluted share. CIRCOR’s guidance for adjusted earnings per share excludes $0.02 per diluted share in Leslie asbestos and bankruptcy charges and assumes a 30% tax rate and that exchange rates remain at present levels.

Conference Call Information

CIRCOR International will hold a conference call to review its financial results today, February 24, 2011, 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 first-quarter revenue and earnings guidance; the Company’s strategy to strengthen its positions in targeted end-markets and build global capabilities in high-growth emerging markets through organic and acquisition growth while incrementally expanding margins; belief that strategy will enable CIRCOR to double its size within the next three to five years; expectations for weak military sales; 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 7,000 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						Twelve Months Ended
	December 31, 2010			December 31, 2009			December 31, 2010			December 31, 2009
Net revenues	$	194,059		$	158,113		$	685,910		$	642,622
Cost of revenues		140,532			109,920			488,641			448,043
GROSS PROFIT		53,527			48,193			197,269			194,579
Selling, general and administrative expenses		40,483			39,855			149,508			137,982
Leslie asbestos and bankruptcy charges		2,173			40,397			32,775			54,079
Impairment charges		—			485			—			485
Special recoveries		—			—			—			(1,678	)
OPERATING INCOME (LOSS)		10,871			(32,544	)		14,986			3,711
Other expense (income):
Interest income		(82	)		(76	)		(244	)		(467	)
Interest expense		723			678			2,760			1,535
Other expense (income), net		608			967			(39	)		(441	)
Total other expense		1,249			1,569			2,477			627
INCOME (LOSS) BEFORE INCOME TAXES		9,622			(34,113	)		12,509			3,084
Provision (benefit) for income taxes		1,890			(13,386	)		(115	)		(2,786	)
NET INCOME (LOSS)	$	7,732		$	(20,727	)	$	12,624		$	5,870
Earnings (loss) per common share:
Basic	$	0.45		$	(1.22	)	$	0.74		$	0.35
Diluted	$	0.44		$	(1.22	)	$	0.73		$	0.34
Weighted average common shares outstanding:
Basic		17,165			17,033			17,137			17,008
Diluted		17,378			17,033			17,297			17,111

CIRCOR INTERNATIONAL, INC.

CONSOLIDATED STATEMENTS OF CASH FLOWS

(in thousands)

UNAUDITED

	Twelve Months Ended
	December 31, 2010			December 31, 2009
OPERATING ACTIVITIES
Net income	$	12,624		$	5,870
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation		13,075			13,307
Amortization		4,301			3,034
Goodwill and intangible impairment charges		—			485
Provision for future asbestos claims		—			39,800
Provision for Leslie bankruptcy settlement		24,974			—
Compensation expense of stock-based plans		3,430			2,717
Tax effect of share based compensation		(189	)		493
Deferred income taxes (benefit)		(9,868	)		(18,237	)
Loss (gain) on disposal of property, plant and equipment		315			(91	)
Changes in operating assets and liabilities, net of effects from business acquisitions:
Trade accounts receivable		(18,246	)		35,936
Inventories		(16,865	)		49,157
Prepaid expenses and other assets		2,059			509
Accounts payable, accrued expenses and other liabilities		18,867			(86,428	)
Net cash provided by operating activities		34,477			46,552
INVESTING ACTIVITIES
Additions to property, plant and equipment		(14,913	)		(11,032	)
Proceeds from the sale of property, plant and equipment		106			485
Purchase of investments		—			(300,431	)
Proceeds from sale of investments		21,427			315,917
Business acquisitions, net of cash acquired		(34,401	)		(37,516	)
Net cash used in investing activities		(27,781	)		(32,577	)
FINANCING ACTIVITIES
Proceeds from long-term debt		88,680			60,051
Payments of long-term debt		(95,370	)		(73,336	)
Debt issuance costs					(1,935	)
Dividends paid		(2,643	)		(2,568	)
Proceeds from the exercise of stock options		529			240
Tax effect of share based compensation		189			(493	)
Net cash used in financing activities		(8,615	)		(18,041	)
Effect of exchange rate changes on cash and cash equivalents		1,321			2,943
DECREASE IN CASH AND CASH EQUIVALENTS		(598	)		(1,123	)
Cash and cash equivalents at beginning of year		46,350			47,473
CASH AND CASH EQUIVALENTS AT END OF PERIOD	$	45,752		$	46,350

CIRCOR INTERNATIONAL, INC.

CONSOLIDATED BALANCE SHEETS

(in thousands, except share data)

UNAUDITED

	December 31, 2010		December 31, 2009
ASSETS
Current Assets:
Cash & cash equivalents	$	45,752	$	46,350
Short-term investments		101		21,498
Trade accounts receivable, less allowance for doubtful accounts of $822 and $1,992, respectively		138,860		115,260
Inventories		167,797		145,031
Income taxes refundable		1,625		726
Prepaid expenses and other current assets		5,749		4,195
Deferred income tax asset		20,111		15,847
Insurance receivables		38		4,614
Assets held for sale		542		1,167
Total Current Assets		380,575		354,688
Property, Plant and Equipment, net		95,768		95,167
Other Assets:
Goodwill		63,175		47,893
Intangibles, net		62,322		55,238
Deferred income tax asset		11,829		5,676
Other assets		2,526		3,391
Total Assets	$	616,195	$	562,053
LIABILITIES AND SHAREHOLDERS’ EQUITY
Current Liabilities:
Accounts payable	$	80,577	$	57,239
Accrued expenses and other current liabilities		51,248		46,736
Accrued compensation and benefits		22,305		18,617
Leslie asbestos and bankruptcy related liabilities		79,831		12,476
Income taxes payable		38		—
Notes payable and current portion of long-term debt		851		5,914
Total Current Liabilities		234,850		140,982
Long-Term Debt, net of current portion		684		1,565
Long-Term Leslie asbestos liability		—		47,785
Other Non-Current Liabilities		23,841		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 17,112,688 and 16,991,365 issued and outstanding, respectively		171		170
Additional paid-in capital		254,154		249,960
Retained earnings		96,389		86,408
Accumulated other comprehensive income		6,106		13,870
Total Shareholders’ Equity		356,820		350,408
Total Liabilities and Shareholders’ Equity	$	616,195	$	562,053

CIRCOR INTERNATIONAL, INC.

SUMMARY OF ORDERS AND BACKLOG

(in millions)

UNAUDITED

	Three Months Ended				Twelve Months Ended
	December 31, 2010		December 31, 2009		December 31, 2010		December 31, 2009
ORDERS 1
Energy	$	120.8	$	80.4	$	364.8	$	250.5
Aerospace		30.8		24.9		123.9		114.4
Flow Technologies		60.8		69.1		271.6		236.9
Total orders	$	212.4	$	174.4	$	760.3	$	601.8

	December 31, 2010		December 31, 2009
BACKLOG2
Energy	$	179.9	$	133.3
Aerospace		147.2		115.3
Flow Technologies		77.2		68.1
Total backlog	$	404.3	$	316.7

Note 1: Beginning in Q2 2010, orders have been adjusted to exclude the foreign exchange impact from backlog remeasurement

    The three and twelve months ended December 31, 2009 reflect an increase of $3.5 million and a decrease of $3.9 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			4TH QTR			YTD
NET REVENUES
Energy	$	89,307		$	76,814		$	61,185		$	66,113		$	293,419		$	57,722		$	77,305		$	80,613		$	90,229		$	305,869
Aerospace		28,344			30,243			26,234			28,506			113,327			27,274			27,811			28,316			35,465			118,866
Flow Technologies		57,996			57,478			56,908			63,494			235,876			61,273			62,889			68,648			68,365			261,175
Total		175,647			164,535			144,327			158,113			642,622			146,269			168,005			177,577			194,059			685,910
* ADJUSTED OPERATING MARGIN
Energy		18.1	%		12.3	%		10.9	%		3.0	%		11.7	%		3.5	%		8.3	%		11.1	%		6.7	%		7.7	%
Aerospace		15.4	%		16.2	%		13.2	%		14.7	%		14.9	%		13.2	%		14.6	%		9.6	%		14.1	%		13.0	%
Flow Technologies		11.6	%		9.5	%		10.9	%		11.7	%		11.0	%		10.2	%		10.1	%		13.1	%		12.5	%		11.5	%
Segment operating margin		15.5	%		12.1	%		11.3	%		8.6	%		12.0	%		8.1	%		10.0	%		11.7	%		10.1	%		10.1	%
Corporate expenses		-3.1	%		-3.4	%		-3.0	%		-3.3	%		-3.2	%		-3.1	%		-3.1	%		-2.7	%		-3.3	%		-3.1	%
* Adjusted operating margin		12.5	%		8.7	%		8.4	%		5.3	%		8.8	%		5.0	%		6.9	%		8.9	%		6.7	%		7.0	%
Leslie asbestos and bankruptcy charges (recoveries)		4.7	%		2.1	%		1.4	%		25.5	%		8.4	%		-0.4	%		17.2	%		1.3	%		1.1	%		4.8	%
Impairment charges		0.0	%		0.0	%		0.0	%		0.3	%		0.1	%		0.0	%		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	%		0.0	%
Total operating margin		8.4	%		6.6	%		7.4	%		-20.6	%		0.6	%		5.4	%		-10.3	%		7.6	%		5.6	%		2.2	%
* ADJUSTED OPERATING INCOME
Energy		16,169			9,461			6,696			1,966			34,292			2,025			6,424			8,968			6,024			23,441
Aerospace		4,372			4,905			3,461			4,195			16,933			3,607			4,067			2,726			5,002			15,402
Flow Technologies		6,744			5,484			6,197			7,444			25,869			6,276			6,367			8,997			8,512			30,152
Segment operating income		27,285			19,850			16,354			13,605			77,094			11,908			16,858			20,691			19,538			68,995
Corporate expenses		(5,365	)		(5,589	)		(4,276	)		(5,267	)		(20,497	)		(4,607	)		(5,274	)		(4,859	)		(6,494	)		(21,234	)
* Adjusted operating income		21,920			14,261			12,078			8,338			56,597			7,301			11,584			15,832			13,044			47,761
Leslie asbestos and bankruptcy charges (recoveries)		8,263			3,442			1,977			40,397			54,079			(648	)		28,908			2,343			2,173			32,776
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			10,871			14,986
INTEREST EXPENSE, NET		(32	)		(41	)		(394	)		(602	)		(1,069	)		(554	)		(586	)		(734	)		(641	)		(2,515	)
OTHER (EXPENSE) INCOME, NET		183			267			959			(967	)		442			51			(258	)		853			(608	)		38
PRETAX INCOME (LOSS)		14,943			11,045			11,209			(34,113	)		3,084			7,446			(18,169	)		13,609			9,622			12,508
(PROVISION) BENEFIT FOR INCOME TAXES		(4,483	)		(3,313	)		(2,804	)		13,386			2,786			(1,713	)		6,928			(3,210	)		(1,890	)		115
EFFECTIVE TAX RATE		30.0	%		30.0	%		25.0	%		39.2	%		-90.3	%		23.0	%		38.1	%		23.6	%		19.6	%		-0.9	%
NET (LOSS) INCOME	$	10,460		$	7,732		$	8,405		$	(20,727	)	$	5,870		$	5,733		$	(11,241	)	$	10,399		$	7,732		$	12,624
Weighted Average Common Shares Outstanding (Diluted)		17,014			17,066			17,116			17,033			17,111			17,193			17,109			17,258			17,378			17,297
EARNINGS PER COMMON SHARE (Diluted)	$	0.61		$	0.45		$	0.49		$	(1.22	)	$	0.34		$	0.33		$	(0.66	)	$	0.60		$	0.44		$	0.73
EBIT	$	14,975		$	11,086		$	11,603		$	(33,511	)	$	4,153		$	8,000		$	(17,583	)	$	14,343		$	10,263		$	15,024
Depreciation		2,839			3,245			3,536			3,687			13,307			3,228			3,115			3,166			3,566			13,075
Amortization of intangibles		622			627			707			1,078			3,034			979			964			1,122			1,236			4,301
EBITDA	$	18,436		$	14,958		$	15,846		$	(28,746	)	$	20,494		$	12,207		$	(13,504	)	$	18,631		$	15,065		$	32,400
EBITDA AS A PERCENT OF SALES		10.5	%		9.1	%		11.0	%		-18.2	%		3.2	%		8.3	%		-8.0	%		10.5	%		7.8	%		4.7	%
CAPITAL EXPENDITURES	$	2,576		$	1,925		$	1,605		$	4,926		$	11,032		$	3,606		$	4,580		$	3,213		$	3,513		$	14,913

* 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			4TH 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	)	$	15,560		$	16,921
ADD:	Capital expenditures		2,576			1,925			1,605			4,926			11,032			3,606			4,580			3,213			3,513			14,913
	Dividends paid		657			637			636			638			2,568			639			640			703			661			2,643
NET CASH PROVIDED BY (USED IN) OPERATING ACTIVITIES		$	(4,695	)	$	20,444		$	13,482		$	17,321		$	46,552		$	(2,774	)	$	17,167		$	350		$	19,734		$	34,477
NET DEBT (CASH) [TOTAL DEBT LESS CASH & CASH EQUIVALENTS LESS INVESTMENTS]		$	(49,519	)	$	(69,331	)	$	(77,081	)	$	(60,369	)	$	(60,369	)	$	(52,713	)	$	(55,976	)	$	(26,225	)	$	(44,318	)	$	(44,318	)
ADD:
	Cash & cash equivalents		36,113			33,038			83,708			46,350			46,350			37,812			60,857			68,526			45,752			45,752
	Investments		36,991			48,344			3,023			21,498			21,498			22,412			94			97			101			101
TOTAL DEBT		$	23,585		$	12,051		$	9,650		$	7,479		$	7,479		$	7,511		$	4,975		$	42,398		$	1,535		$	1,535
DEBT AS % OF EQUITY			7	%		3	%		3	%		2	%		2	%		2	%		2	%		12	%		0	%		0	%
TOTAL DEBT			23,585			12,051			9,650			7,479			7,479			7,511			4,975			42,398			1,535			1,535
TOTAL SHAREHOLDERS’ EQUITY			341,860			357,596			371,728			350,408			350,408			349,244			324,128			351,719			356,820			356,820
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		$	10,263		$	15,023
LESS:
	Interest expense, net		(32	)		(41	)		(394	)		(602	)		(1,069	)		(554	)		(586	)		(734	)		(641	)		(2,515	)
	Provision for income taxes		(4,483	)		(3,313	)		(2,804	)		13,386			2,786			(1,713	)		6,928			(3,210	)		(1,890	)		115
NET INCOME		$	10,460		$	7,732		$	8,405		$	(20,727	)	$	5,870		$	5,733		$	(11,241	)	$	10,399		$	7,732		$	12,624
EBITDA [NET INCOME LESS INTEREST EXPENSE, NET, LESS DEPRECIATION LESS AMORTIZATION LESS INCOME TAXES]		$	18,436		$	14,958		$	15,846	��	$	(28,746	)	$	20,494		$	12,207		$	(13,504	)	$	18,631		$	15,065		$	32,399
LESS:
	Interest expense, net		(32	)		(41	)		(394	)		(602	)		(1,069	)		(554	)		(586	)		(734	)		(641	)		(2,515	)
	Depreciation		(2,839	)		(3,245	)		(3,536	)		(3,687	)		(13,307	)		(3,228	)		(3,115	)		(3,166	)		(3,566	)		(13,075	)
	Amortization		(622	)		(627	)		(707	)		(1,078	)		(3,034	)		(979	)		(964	)		(1,122	)		(1,236	)		(4,301	)
	Provision for income taxes		(4,483	)		(3,313	)		(2,804	)		13,386			2,786			(1,713	)		6,928			(3,210	)		(1,890	)		115
NET INCOME		$	10,460		$	7,732		$	8,405		$	(20,727	)	$	5,870		$	5,733		$	(11,241	)	$	10,399		$	7,732		$	12,624
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		$	9,144		$	33,928
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			1,412			21,304
NET INCOME		$	10,460		$	7,732		$	8,405		$	(20,727	)	$	5,870		$	5,733		$	(11,241	)	$	10,399		$	7,732		$	12,624
ADJUSTED WEIGHTED AVERAGE SHARES			N/A			N/A			N/A			17,140			N/A			N/A			17,109			N/A			N/A			N/A
Adjustment for anti-dilutive conversion of shares			—			—			—			107			—			—			153			—			—			—
Weighted average common shares outstanding (diluted)			17,014			17,066			17,116			17,033			17,111			17,193			17,262			17,258			17,378			17,297
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		$	0.53		$	1.97
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			0.08			1.24
EARNINGS PER COMMON SHARE (Diluted)		$	0.61		$	0.45		$	0.49		$	(1.22	)	$	0.34		$	0.33		$	(0.66	)	$	0.60		$	0.44		$	0.73

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			4TH QTR			YTD
Quarterly Case Rollforward
Beginning open cases		968			1,103			1,158			1,143			968			1,104			1,150			1,214			1,340			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			1,340
Ending open mesothelioma cases		578			584			612			597			597			623			672			713			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			319			7,501
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			1,854			31,447
Net pre-tax Leslie asbestos and bankruptcy expense (recovery)	$	8,263		$	3,442		$	1,976		$	40,398		$	54,079		$	(648	)	$	28,908		$	2,343		$	2,173		$	32,776
Balance Sheet Amounts
Bankruptcy and indemnity liability	$	20,781		$	19,849		$	20,060		$	57,716					$	57,732		$	78,976		$	78,067		$	77,689
Incurred defense cost liability		4,212			5,169			3,615			2,544						2,099			3,455			1,997			2,142
Insurance recoveries receivable		(9,088	)		(7,426	)		(6,485	)		(4,614	)					(7,997	)		(1,180	)		(194	)		(38	)
Net Leslie asbestos liability	$	15,905		$	17,592		$	17,190		$	55,646					$	51,834		$	81,251		$	79,870		$	79,793

CIRCOR INTERNATIONAL, INC.

RECONCILIATION OF FUTURE PERFORMANCE MEASURES TO COMMONLY

USED GENERALLY ACCEPTED ACCOUNTING PRINCIPLE TERMS

UNAUDITED

	1st QTR 2011
	Low		High
EXPECTED ADJUSTED EARNINGS PER SHARE [EPS EXCLUDING SPECIAL, IMPAIRMENT, AND LESLIE ASBESTOS AND BANKRUPTCY CHARGES, NET OF TAX]	$	0.41	$	0.51
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	$	0.02	$	0.02
EXPECTED EARNINGS PER COMMON SHARE (Diluted)	$	0.39	$	0.49