Motion Control Resources
Curtiss-Wright Cuts Outlook After 3Q Profit Rise
ROSELAND, N.J. - Shares of Curtiss-Wright Corp. mostly recovered after earlier falling more than 5 percent Thursday after the industrial supplier to military and commercial customers posted a 9 percent increase in third-quarter profit but lowered its full-year earnings forecast.
Roseland, N.J.-based Curtiss-Wright said after markets closed Wednesday that net income rose to $27.5 million, or 60 cents per share, in the three months ended Sept. 30, matching the average estimate of analysts surveyed by Thomson Reuters. In the year-ago quarter, Curtiss-Wright posted a profit of $25.2 million, or 56 cents per share.
Revenue rose 10 percent to $435.7 million - below analysts' estimate of nearly $441.1 million - from $396.3 million.
But Curtiss-Wright - which makes flow-control and motion-control products and provides metal treatment services - cut its profit outlook for the full year. The company now expects a full-year profit of $2.45 to $2.50 per share, down from guidance the company offered in July for a profit of $2.55 to $2.65 per share.
Curtiss-Wright left unchanged its earlier forecast for total sales of $1.83 billion to $1.85 billion.
Analysts forecast a full-year profit of $2.62, on average, on revenue of $1.85 billion.
Oppenheimer & Co. analyst Myles Walton cut his price target for Curtiss-Wright's shares to $44 from $54. In a research note, Walton said the company faced "headwinds" on several fronts in the latest quarter, from a strike at a major customer, Boeing Co., to hurricane damage that hurt operations in Texas.
In midday trading, shares of Curtiss-Wright fell $1.76 to $31.25, but by early afternoon were down just 35 cents to $32.66.
While Curtiss-Wright enjoyed rising sales in the latest quarter, Chairman and Chief Executive Martin Benante said his company's prospects have been hurt by Boeing 787 and Eclipse program delays, as well as foreign currency losses linked to Curtiss-Wright's recent acquisition of Norway's Vmetro ASA, which makes computer components.
A vote Saturday by members of Boeing's striking Machinists union could end a walkout that began Sept. 6. But Benante said his company "will have further negative impacts from the Boeing strike and the continuing program delays."
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