CW - Earnings call transcript Q3 2021 | Curtiss-Wright Corporation

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Operator

Good day, and thank you for standing by. Welcome to the Curtiss-Wright Third Quarter 2021 Financial Results Conference Call. At this time, all participants are in a listen-only mode. After the speaker presentation, there will be a question-and-answer session. [Operator Instructions] I would now like to hand the conference over to your speaker today, Jim Ryan, Senior Director, Investor Relations. ahead. go Please

Jim Ryan

and Quarter Laurie, everyone. to Welcome Thank Earnings good Conference Third XXXX Call. Curtiss-Wright's you, morning,

Joining me Chief on Executive the call today are Bamford; Farkas. Vice Chris Officer, President and President Officer, and Financial Lynn and Chief

found Our as also call the as certain download the presentation the will as Act www.curtisswright.com. projections on well associated with company and those through SEC. financial replay defined are expectations statements webcast, can with the in statements These of copy forward-looking this today's section XXXX. available A our not press Private that based website note of of our release Reform Please a is detail our are future Litigation today's is are and today include management's public We filings being be current and for webcast Investor of forward-looking and risks website. Securities Relations at uncertainties statements in on the of guarantees performance. discussion

held reconciliations As foreign was transparency for and classified a organic which of costs effects our our provide acquisitions our note release prior results an divestitures, both sale, to on adjusted for held guidance earnings exclude this references the and of in German XXXX. year in of current line operating restructuring, sale order Any the unless MAX excludes impairment business, to and greater include as translation, view valves non-GAAP that periods that to website. as build-to-print XXX presentation fourth end non-GAAP well noted. Curtiss-Wright's assets of in the are financial performance. for GAAP year the and actuation currency program certain ongoing at adjusted otherwise the and growth Also supported Company's exclude product that available quarter full into reminder, results the as our

to to like Lynn? things the get call started. to turn over I'd Lynn Now

Lynn Bamford

with I'll year outlook. begin more to our results the full and to I'll over of XXXX Chris call everyone. detailed quarter performance the morning, overview good and an of Then third of turn key our updates a review and year guidance. Jim, financial our you, Thank provide to highlights full our

wrap third remarks Starting organic. highlights. a Q&A. strong We up move was increase Finally, sales, X% before we our with I'll of prepared quarter to XX% in overall the which experienced

from well, its pleased just improved solid with on Having commercial in markets modernization another line that aerospace, A&D yet is is Our Army's is and and under growth very performance remains and closely naval to XX%, first continued business its our the track. for report I'm integration executing ownership, priorities. acquisition. top completed reflecting quarter of top Curtiss-Wright's defense year PacStar PacStar The positioned aligned strong well growth strong

by strong experienced our to rebound. and We markets. commercial industrial was which our to industries led continue markets process vehicle Turning both sharply growth, year-over-year as these

$X strong at with year. well Looking the income investment this improved across operational benefits we achieved that with performance segments as strategically It's income operating continue note initiatives. higher at and the excellence was to to prior million and of strong our all operating margins reflecting XX% XX.X%, adjusted operating our as sales our profitability, adjusted to research invest a compared as important while development in incremental

us flow to objectives. XXX% activity. flow consistent share our on year, of future As in was this organic R&D to expectations and above long-term exceeded third result, EPS conversion strong achieve was quarter, with track up benefits prior similarly repurchase the to due to operational was slightly $X.XX initiatives. in keeps track year and Free a with compared strong are strong, incremental diluted cash we our XX% million the $XX performance the cash the Adjusted invest free on which growth our our support that

experienced a our our to robust of achieved as continued a XX% onetime of orders as our our growth deeper, quarter of growth, segments. three A&D strong support sales, within well in providing we commercial market in increases third growth Digging We each backlog. market, little book-to-bill XX% driven and orders. solid by exceeded X% Turning our to

Next, I the chain challenging wanted business. our light supply address really am chain disruption to on in team's of proud strong this Overall, of the global supply I execution environment.

in with expected results, last team's in been untiring components, based and to XXXX essentially shortages and indicated segment. full to mitigate supply based to efforts by sales limited as continued both we immaterial and have be rather our disruptions far, our within preserve some As impacting Electronics lost electronic our quarter, principally delays operations sales timing these our container to caused chain profitability. to A&I Defense we and these to year than revenues Thus disruptions the upon shipments impacts

timing remain We and by chain continue manage to product encouraged aggressively the strong our supply of within our backlog.

we mid-September. million should our mid-September, in we move that revenue completed $XXX I'd press announced recently this the through strength this we back pushout, bought our we repurchase up a pleased our authorization share $XXX As from delays million. million We item shares. support where any program repurchase offsetting like encounter for to began million immediately X.X report of our than combined stock opportunistically watch to of and portfolio. increase Board's forward, substantial $XXX from anticipate release also us. I'm the address to we further And more to remains for in and a

with shareholders repurchases to least well are of at going million of complete in return for We positioned and track share $XXX XXXX, forward authorization. to the continued remain we of $XXX million on remaining capital our

year our adjusted guidance. Finally, turning full XXXX to

income, XXXX. expect strong strong compared maintained prior outlook EPS raised much repurchase to adjusted and our $X.XX we benefit in bottom operating and the performance very $X.XX, of and end now and between with essentially our our free results our based year tightened margin the growth the track We of double-digit on for range. we remain achieve activity. on year-to-date cash deliver guidance We sales, While flow, to

the provide to and third turn Chris to our to like Chris? XXXX. outlook performance I'd more over call review a for thorough of Now our quarter

Chris Farkas

everyone. segment. drivers morning, and increased our results in & I'll operating with the another quarter, begin the services increases where third of all good and XX% Lynn, in for in you, Starting again financial led Aerospace and income Sales we Industrial and aerospace products demand third delivered sales key in segments. by the higher strong our three markets. both strong commercial quarter with performance general industrial Thank in

increased as we increase solid well commercial year-over-year segment's the aerospace on as aircraft aftermarket sales. market, Narrowbody a than Within as more sales demand improved OEM XX% experienced in

our vehicle benefit both including off-highway, and and industrial products, improved strong demand experienced activity. which to on- continue also for We sales from higher order

basis income to the XX.X%. to Adjusted Turning profitability. operating increased XXX segment's XX% operating margin adjusted while points increased

results And Our savings segment, PacStar in for This segment's acquisition. mainly revenues fourth aerospace the computing reflect the various principally to experienced in defense which $XX embedded and increased quarter, favorable electronic incremental in $XX more mix revenues, our than $X sales offset reflecting third million quarter we third higher reflected shift to favorable due quarter, was organic was shortage margin Lower components. by margin operating global XXXX Electronics on segment's million about XX% our sales sales absorption million investments the of million CXISR generated which by absent year these $X prior line in performance. contribution and as strong Defense in timing quarter the from a reflect in third into impacts, the on system margin programs the lower-margin been prior would FX. two unfavorable R&D with restructuring unfavorable our year's the In this operating the and actions. strong about have

power segment's Next, to sales on where in higher margin XX of continue to quarter, This and demand. operating process in markets Power strong the margin the we the the increased sales To we overall, to quarter and in & naval XX in and Naval valve wind despite headwind while experience worth revenues market. that higher up increased in million income on our $X sum represents propulsion segment profitability of million both point sales Curtiss-Wright, on down absorption across adjusted segment, restructuring X% increased noting nuclear in program year-over-year $X XX.X%, higher adding XX%. basis while equipment we R&D XX third a profitability. which And savings. approximately income drove X% also operating points achieved overall reflecting our investments, this led expansion adjusted CAPXXXX third adjusted incremental basis commercial basis the It's increased sales results, by points operating favorable

remains XXXX naval I'll growth propulsion X% X% with market year our on some X%, sales end I where dynamics with order is we guidance. to wanted begin unchanged, and X% briefly our up see Curtiss-Wright to remains sales expect to to defense, guidance to at our while continue highlight which equipment few naval guidance of Starting total to flat full continue unchanged sales And of organic. specific Turning X%, for activity a our within our nuclear platforms. we markets. strong outlook, critical to

awarded Columbia-class September overall the growth U.S. carrier defense naval programs. approximately market as defense for $XXX aircraft visibility and for in our Curtiss-Wright valued only release, outlook for These was provide example, contracts in For and market provide submarine but to aerospace noted stability sales revenues. long-term support not XXXX, pumps Virginia-class our at million Ford-class press submarine Navy's and awards our also

industrial return year-to-date X%. where and overall the year orders we oil those end at on we previously customers. sales operating This about for remains ahead Next, industrial in market, the In to the at upon and is where a guidance. we gas we what growth levels our for vehicle May In a XXXX. levels in products, outlook, Day our to are to process industrial Investor our see of in communicated reaffirming to general market in principally year comments strong operating we sales, solid this markets growth few one XXXX margin are businesses, to XXXX. continue with X% expected full valve commercial our based our income reach activity MRO rebound Continuing now of to market, by track unchanged

XX% We I'd specific to Diving increase points Industrial operating exceed operating to XX% of the a guidance. share XXXX about & where to XX margin in levels our XXX to range margin basis us reminders expect to to basis is points, a operating year. income begin projected few of X% we're adjusted to growth XX% growth deeper, operating track Aerospace to XX.X%. this on to grow XXX to of segment adjusted income XX XX.X% and profitability I'll keeping while segment expecting like

the growth sales Defense segment, and the that for in operating maintaining supply we're the we've encountered our Electronics income challenges chain. in in despite solid outlook Next,

in earlier, the shift $XX the from noted we based the quarter timing million experienced revenue components. upon third of we and receipt As million into a to electronic $XX fourth

to expect to to the range the segment's now for and the continue, working guidance issue, dynamic impact to delays finish year look close It as these of on this very the expect is, We sales. and lower year. aggressively we our end business closer a however, out mitigate to we're

profitability, revenue timing segment's for strategic important are R&D. it's maintaining our issues the in increase million and note operating the Regarding investments year-over-year that in outlook despite $X to income we our

Lastly, line basis in XX in our the to diluted to $X.XX, Naval margin CAPXXXX in remains the XXXX new continue of growth solid financial bottom segment, XX of which on year unchanged, reflects guidance our adjusted guidance increased $X.XX with our to and growth to the end Power growth Continuing range with X% wind we income. down expansion where & points full despite XX%, we of operating of the a our of outlook, EPS sales to program. expect

on $XXX back some remain million. to for interest activity remarks. revolver of Our and turn now investments. where guidance over strong continue continued year our full $XXX well to Lynn? to maintain Lynn repurchase And share our updated the achieve of expense track the free share cash count generation a acquisitions guidance repurchase, from under operational sufficient we based on share flow capacity $XXX I'd call to lower million our And reflects free year-to-date as slightly as cash lower flow lastly, million, stemming ongoing closing to we like both for

Lynn Bamford

supply this like some key we Chris. ongoing recap strong to I'd the to generate growth, last the issues, to XX% contribution high guidance as and year. for positioned operating PacStar single-digit chain you, we year's pertains results the where expect Led despite growth drive of well some revenue including Thank takeaways our both by acquisition, EPS from diluted of are income in caution X% XXXX it to to this year.

focus operating excellence. execution margin our Our guidance to XXXX XX.X% of XX.X% reflects and solid on operational ongoing

basis XX results growth. in facilitate points investing those million future $XX achieve additional to expect We an while strategic or R&D organic to

we our flow addition, XXX% and on In consecutive than our free cash to free of adjusted conversion. track greater strong, year flow ninth achieve are cash remains

committed also allocation and to We our maintain continue healthy to sheet to and deploying disciplined strong balance pivot support remain a and to growth. capital balanced

driven on of deploy is ever for focused by well, possible to the strength full term. summary, deliver in combined are investing share In acquisitions business been profitably of And our and to remain confident to activities growth return effectively of value. portfolio. Meanwhile, highest pipeline best remain took capital our a to our We and on to our opportunities, recent have long grow shareholder will in track the we strategically repurchase announcement, our we XXXX, the and profitable Curtiss-Wright. for we I our capital our Curtiss-Wright case long-term strong for drive area. that up diversification continue priority will advantage and in ramp this the of remain the performing opportunities With

naval strong, our Our of reflecting defense backlog remains X.Xx particularly orders been And very commercial book-to-bill year-to-date. have defense. in sales resilient,

demonstrate to remain communicated on time, highest Day. our in place end open of agility this markets. to the like May achieve guidance today's continue questions. changes to to the the conference affords would call dynamic up Investor this track We in us our taking opportunity for At levels I response Altogether, long-term at our to

Operator

from first of Our Peter Baird. Instructions] [Operator question Arment is

Peter Arment

everyone, and Chris, nice Lynn results.

Lynn Bamford

Thank you.

Peter Arment

good kind risk. ratings job, the you mitigating dual guys I talk that think, little just in just your done I Is very past? working it. going that maybe supply a DPAS talked you're sourcing it have the of the of some could Maybe a bit you've or the Lynn, some you mean talk chain bigger levers of of then about forward. about and how about

Lynn Bamford

that is of top working real, for It a that's thank be clearly it you, headwind us continues we're topic It's And and to the a overcome. Peter, very Yes. mind. question. to towards

we some segment pushed Electronics due million $XX that revenues pressures. the into QX saw chain QX, around in You stated from Defense $XX we million to to had our supply

an people -- also area have fighting can. doing we notable less when in the container it's promised certain chips a we but focused and and it, probably that of So we're We're where also are that's everything lot the on biggest in area shipment. have. chips beginning We're the the feeling fight fighting some And received we've deallocation we've freight area to times. costs than arrive, where transit we're shipments been the we And the and levels. most

imagine, area. And as sort doing can that's very you absolutely we a so of things -- dynamic But you mentioned. a are that's the

dual of in We are areas. actually wherever capable. it's sourcing even some We're our working looking

those the in and where there's chips We along to looking chips have we're pressure recent -- that move activity different to chain. our some processor and things change lines, processor on so less supply

working And on mobility I'm and around of that. receiving being we're another people So of make are national area. security is really both important to try for the impact and really really sure the us ratings visible DPAS executive things world. the the products it's our creative, to products, or The critical teams proud them relationships

year end our And well a of see that even normal. applying and my chasing so see we And into have really the And well would team said 'XX with to creativity but that in I overdo would still in 'XX we'll the teams calendar job. remarks. and is that an But great and try more issues QX, are next a somewhat really hopefully, further back impressive out prepared historically into is only sometime beyond in this. not done. to the doing to the it's this the it, and chain other needs I manner I guess make managing supply working comment associated planning we're get

practices our can we to on we're of the adjusting do top it. to best So really stay

Peter Arment

and of is that to a a as your resolution just you obviously a us maybe that next for year? about could impacts regarding has think of growing number continuing manage how maybe And It's you remind lot another -- gone high-level impacts on defense you follow-up, just asking a you about are people risk years, how of portfolio and just had about But continuing that. been quite resolution. thoughts area

Lynn Bamford

Peter. you, Thank Sure.

should honestly, see for world in resolution. dynamic healthy for we're it's be country. any and to so along. is not into not much and It's primes, the to So but government pattern, the they're how things the this moving we blocks disappointing us It It's repeating and some as keep directly to resolution our continuing We're staying that's new selling healthy not defenses. the degree national continuing programs, a to insulated a managing of not place, the trying country. the our obviously to start

not the So But resolution the and some impact amount we supply absorb things continuing system. all obviously, of immediately. can through feel work chain

impact it eventually, proposed that. with positive defense top was have We're are we priorities funding we with the does by aligned budget. in They budget. know so pleased We're And that in President's us. -- the what

the have the Senate and good provided for Curtiss-Wright. House, through upside markups We went that the

So a to it believe just and matter I time. they're it's going passed, get of

we we for in continues us. will the good strong, support. that to that the we have I the be I have top does aligned bipartisan priorities support good that -- along Navy so And mean really think feel for ourselves the feel shipbuilding. really I be with like mean belief bipartisan

we'll passes, I good it think as be ultimately, shape. So in

Operator

Securities. Michael is question from Truist next Ciarmoli of our And

Michael Ciarmoli

resolution of But acquisitions? outs. some I some results. guess we on to two of for continuing Maybe quarters? of same going of performance of pressure in defense. customers calibrate a the due they bit their are growth were challenges? the ourselves the organic the to couple seeing little defense tempered the some of stay slide the speak guess here growth here, some challenged mean a most over but I of guess your Nice next quarters organic a I Should maybe and environment that down can row you And you expectations on create that's next can kind have year. of we I to just more touching pressure

Lynn Bamford

put the there's Investor feel is of Day. about bit a out there. uncertainty I forward we still we It -- guidance think good in

so really are really of changed mean most business far seeing not think seen Lockheed not That's what some have content we're it's chain we've been and we tempering challenges, the has away. seeing and has is outlook, delays of revenue, around F-XX. I going delays. supply -- where Martin obviously, we their the F-XX on I

forward. So going a might our mild overall portion be a that that's pretty minor X% for us But to something headwind X%. it's of revenues,

positions, that So positions, that one MOSA and go within and the we from to business have their we've our our great headwinds we have end new there to budget. -- have just naval customer area the Defense acquisition But investments lot again. we think have Electronics with that put a tailwinds that's we're the out seen in than feedback more I great really, support around how and continues capturing PacStar something

other good. that others F-XX, the we are than program pretty the notable So headwind only the really that's see

on forward. we the we about So the good to feel And acquisition. look guidance comment just

to across pleased but pretty well. reported out on the I and they're Sorry, budgets, board. to our we light defense green months of Board with our a the of performance overall And acquisitions. And performance all they doing the was much mean couple the ago obviously we're the of just a are it acquisitions, real just subject quick.

Michael Ciarmoli

totally then to And Got power. just it. Got shifting it. gears

much CAPXXXX called been get prepared go-forward be of of And through to capacity see other have the There's in should outside APXXXX What modeled you trying get and what about orders out any just anything in repurposed APXXXX, too else activity? reports of guys the in Ukraine a hearing, in basis. interested for? the Anything have if if Pittsburgh? should we we your you are a how out come of don't thinking. easily there sense chatter on Obviously, about kind countries. you preparing facilities just don't seeing, Can think being no remarks. You your we there they -- --

Lynn Bamford

an are where towards to -- a But capacity program, be we the very the we that If it of order. anticipation doesn't it's and believe much period that that. as labor through load be wind we're down. this ensure the plans very bit able order coming balancing of and that we without don't able definitely we come, we We're the the working -- dynamic load go APXXXX one it. wind we a to -- have we're the with mean that managing after issue, to comes capable much scaling down to as up would we're up I set

and You orders start with the material such.

in as mean there and you I and our -- it's signing that stated, it's our adjust say, mean And things between be NuScale going the our have It's I of that not people, But the talked Ukraine we that the announcement yesterday NuScale to one about it's exciting agreement. area an an so Obviously, we reactors content about Bulgaria not where is workforce was next-generation on. time. in we workforce on it. and there time hearing to anticipation. that -- -- are able to believe up will an have achieve I

carbon-free about Summit, the the just a realization think came I to build-out solution. lot the hear COPXX will that, potential be great that's part reports elsewhere. So even of of And of of the out it that nuclear just with

be much don't I this years will some a or 'XX, felt I definitely after mean, of think it's decade. for think dollars sentiment is so And Whether I years. I in it know. it's or shifting. 'XX of would lot the closer not But support, than And we flow 'XX

Operator

Jones question Stifel. Nathan next from our is of And

Nathan Jones

question short repurchase the designs just plan million here term? you authorization utilizing back to more to second XXXX. a Is of half the have in that with hundred the executed in some a the dilution? more on do on Start go of here offsetting of share Or couple

Lynn Bamford

what really to is to committed said value is to are provide most having not on think put we've it capital Board. deploying I our and acquisition the our we an So consistently shareholders --

had So forward. to we move far, capital available decided and

open We provide our priority. authorization, value we'll that we're to our highest to shareholders. But capital mean million with clearer light. into as have of acquisitions decisions it make is going our and to undoubtedly come $XXX make work I

Chris that, maybe the I'll with let kind make few landscape. on a So comments of

Chris Farkas

Yes. and I would only very what the can to support balance add, about Lynn, do strong strategy. sheet, think a that that we excited return And allocation our we're shareholders. have capital capital we with is most we effective to to the share buyback way

Over during $XXX $XXX Last pandemic, And this the years, And last was on also PacStar year, million. it to five acquisition. the it's we're been year million. the did million. we track $XXX

think I positioned. we're like we where

I might that recent we I minimum we have at thing out is think feel those add And Day when financial opportunity. that only the the targets set we other Investor there.

EPS we You'll that XX% CAGR. would said be there CAGR, that X% a notice that we said and minimum sales

you to of further absent do repurchase kind you hit capital acquisitions, through XX% to to need see can CAGR. share that EPS any the So return quickly and math that shareholders

to that our strategy. we peers We it. growth relative given our our a are pivot multiple great about excited we're time So position the and where and Curtiss-Wright stock it's of to feel to buy

we remain So committed.

Nathan Jones

term? pipeline of the say Or Does in the actionability the short M&A separate are anything kind issues? of repurchase they about the

Lynn Bamford

with acquisitions of that far. so for as become available. dry and work have I really much scenarios powder we that purchase acquisitions. about planned we coincidence able very lot And ability move a drive anything No, signal and not are to the and where very sit in to still model on to does closely done Chris be have We that to with our they it we buyback M&A

Nathan Jones

comment about give what the some made And markups markups those Can a were of for a budget being budget more then you believe positive just Curtiss-Wright. little positive one that on Curtiss-Wright? detail follow-up a are for you you on us

Lynn Bamford

Sure.

then support increases President, in two think part by a the most forth markups. was of additional modernization, network potential both a are And are it. the that within primary even notable from for another great the budget I Army but had further support And put the third which Virginia-class. DDG-XX is that already potential the really the for some

Operator

We Instructions] UBS. question [Operator of Myles have a Walton from

Louis Raffetto

You've got on Myles. Raffetto Lou for

we level? somewhere incremental how about XXXX? Or Do as elevated year, going the do between? we we in stay about think R&D that this at think back, $XX do million I we spending of -- step guess So how this into

Lynn Bamford

that's we're is we really for a couple forward going Yes, And is years. funded. engineering reasons of given there's that. and question and half a lot, IRAD spend, our not a is asked total have about spend the half for about guidance of One R&D of customer

the So we're go see always having return we customer-funded tying for -- IRAD. where on the versus best kind engineers ideas of work ebbing of through balance on programs, and as our Curtiss-Wright we putting to our to spend

make spend the to to a of really those. we look on best those our investments long-term growth. And trade-off between drive based really in it's -- And so that use

incremental the on betting long term, as not problem some saying ourselves a families, and to that, And but we'll extend so return let as putting make those decisions saying, as and spend each investments short fence the really for swings some organization, product projects term, up investment just the to some really some goes to come fixed available. amount the the

So I'm believer R&D. spending in a big

important. I it's think

to And steps R&D for us willing the being look long and continue, Company so taking I those to grow to term. spend

would not we're say I it's levels. but putting forth likely, specific any So

Chris Farkas

this I year. would add to margin committed next are that operating we only XX% achieve And

operational ours. also are investments. big But to focus our of is for across money working the a that we excellence organization continue initiatives So to up free

on February. provide in that to So color we'll more be able

Louis Raffetto

on Okay. there sale anything couple I interest the any to or lack there that update been just of? held a that Is Great. they've quick we need any for guess, indicate follow-ups. Does business. for And now mindful the of about a for other be one year. of assets like out

Chris Farkas

No.

think we're But we're I think we moving move sale specifics think process exactly go on I that pretty along property we've the in that well on going and term. not near into the in I well. I'm -- to yes, where the are. to from positioned And

Louis Raffetto

or last X% out then thought I quarter only and third commercial Great. has but was X% organic deck, for up organic growth one. XX Okay. in lays growth Page markets, sales Slide it's end market And quarter. growth the the organic just the I and growth A&D for then X% think for

I So am what missing?

Chris Farkas

sales in as really for year-over-year, Aerospace think to was contributor take was look Industrial. growth, you then the aerospace industrial And I seeing driven also of vehicles commercial and strength growth obviously a at the that by & biggest the our market quarter. Well, the we're within what QX

was biggest, mover Naval second we say, submarine. based organic defense, year-over-year particularly was The Power. that within Virginia-class in saw naval what upon the strength really And & I the would

at But Defense the while year-over-year, PacStar. electronic of the timing to majority substantially were roughly to down availability from pushout due We were up of $X was slightly into contribution million the fourth organically, the that really we year-over-year. the quarter Electronics, that Looking related was of components.

Louis Raffetto

All right.

X% that the growth indicated sort growth isn't organic slide? on defense for aerospace of So organic then as market the really

Chris Farkas

of No, our the we're I in assumptions full at think year, our holding all still guidance range.

probably range bit on indicated given we've we're that X% that, within those more and all say the But of we at expect anticipating look timing that to Defense be the the the to -- towards lower to of going end full ranges. we that little some it's as going to Electronics. issues within be while would think we a year, we're be X% at I

Louis Raffetto

to problem. Okay. third quarter, was thought specific not I but the I a guess that

Operator

question And Peter have a from of we Baird. Arment

Peter Arment

Yes.

us you're growth the market. visibility In it -- seeing maybe just and -- is? valves there? Lynn. do of process question, outlook how have area, to What remind the And quick you power about talked general, what in a process sustainable there how in what kind you Just strong the

Lynn Bamford

area Okay. don't Yes. Thank business we you. many It's as an usually the of get about. questions

it's it. So talk have nice to about

will we So with to service process XXXX. forecast our severe And in opportunities markets that definitely recovery full see mid- the continue for growth grow applications. high-single digits to the is

short-term fairly So our visibility, it's a business.

look market where going. where well market with really And is. tracked we we're to to anticipate the So we've outlook trends

XXXX back We in in seen XXXX, there GDP. some do good is we mixed one increases of which pandemic. feel But CapEx quarter with last definitely bags. the and the largest have are see the to tracking recovery XXXX. that our into MRO push generally as portion full industry We've tied project sales did in recovery work, from we so So trends is about the favorable full

Operator

And Securities. we Ciarmoli from Michael question a of Truist have

Michael Ciarmoli

in Just another to geographies of industrial, side end you're about. market you're kind color I in that wanted various customers Within there? is on surface are to treatment business? in seeing of maybe any what ask the with And relation prepandemic, the the different what seeing where and your trends

Chris Farkas

Yes.

drop. year, QX within one last we've of Certainly, orders that the say touching been the come vehicles, side most the to a about what that on say, have this the improvement to would have business upon up. within first of -- right lows the that continue bit to are surface the times outlook recover just businesses pick recovery we it not the Mike, us seen and of long-cycle upon it off support we the bellwether. as commercial mainly cycles. provide short-cycle really the So orders trajectory in the We've And the on businesses, business, of quarter-over-quarter. I is pretty are of which last be it that in in long-cycle business. past seeing that to be same technologies short aerospace we'll services. as we're the economic in due our of for this being, but of down Initially, months will there that was commercial business, on rate to the growth It's But periods a with But sequential optimism good. little does specifically grow. more in aerospace, since widebody. of rates the continue seeing in The But industrial steady that those steady started a We've soon. year will industrial that at talked had recession, based orders to we improvement, business, Even growth. because automation

Operator

now over Bamford, and to Executive turn And remarks. back for at are the time. no I Lynn there further this closing questions will President Officer, call Chief

Lynn Bamford

We earnings have conference again fourth Thank speaking joining you. today. our forward day. call, you a during for all us quarter with you to great and look Thank

Operator

participating. And you this concludes conference for call. Thank today's

disconnect. now may You

Curtiss-Wright (CW) 6 Nov 212021 Q3 Earnings call transcript