MajorAccomplishments

AP1000® Reactor Coolant Pumps (RCPs)
Portfolio Optimization
Key Contracts
Balanced Capital Allocation
Innovation

AP1000® Reactor CoolantPumps (RCPs)

Completed all required RCP testing

Jun. 2015: Successfully completed engineering and endurance testing, and implemented final design modifications to support safe and reliable AP1000 plant operation.

Secured order exceeding $450M to provide AP1000 plant RCPs to China

Began shipment of RCPs

Nov. 2015: Began shipping RCPs for Sanmen Unit 1 in China, the world's first AP1000 nuclear power plant. In total, 16 RCPs will be shipped to two plants in China, as well as 16 to two U.S. plants.

Successfully reached full qualification

Oct. 2015: Completed extensive China regulator reviews and post-test inspections confirming that our RCP performed as required during the final performance testing to reach full qualification.

Received new order to supply RCPs to China

Dec. 2015: Awarded contracts valued in excess of $450 million, with a total potential value of approximately $500 million including incentives, to provide 16 RCPs for Generation III commercial nuclear power plants in China.

Portfolio Optimization

In December 2013, we committed to improving our operating margins in order to reach upper quartile performance compared to our peer group. One of the key initiatives was portfolio rationalization. We began in 2014 to drive an improved focus on core businesses and better align with our long-term objectives of operating margin expansion and free cash flow generation, while also positioning Curtiss-Wright for sustained future growth.

By mid-2015, we completed our planned divestitures including:

Oil & Gas downstream: Several of our project-oriented downstream oil and gas businesses, where we did not possess sufficient critical mass to achieve leading positions. (The Company previously divested its entire upstream processing operation in 2014.)

Engineered Packaging: Provider of electronic packaging solutions for military and aerospace customers.

Douglas Equipment: Manufacturer of ground support equipment for the aviation industry.

Key Contracts

Pilatus 1st flight

Celebrated the successful first flight of the Pilatus twin-engine PC-24 business jet, which is supported by critical Curtiss-Wright flight control equipment, including the Electro-Mechanical (EM) Spoiler and Flap Actuation System, as well as the Hydraulic Power Generation System.

Virginia Class submarines

Awarded $480 million in contracts to supply pumps, valves, generators and propulsors for the U.S. Navy's Block IV Virginia Class Submarine Program.

U.K. Scout TDSS

Received $49 million contract to provide the Turret Drive Servo System (TDSS), a weapon aiming and stabilization system, for use in the British Army’s new SCOUT Reconnaissance vehicle.

U.S. Army MML

Awarded contract with $75 million lifetime value to supply elevation and hatch control electomechanical actuators for the U.S. Army's Multi-Mission Launcher (MML) program, a next generation air defense launcher system.

Balanced Capital Allocation

Curtiss-Wright remains committed to a disciplined and balanced capital allocation strategy that consists of reinvesting in our business, supplementing our organic growth with strategic bolt-on acquisitions, and returning capital to shareholders through share repurchase and dividend distributions to drive long-term shareholder value.

Active share repurchase program

The Company completed $300 million in share repurchases in 2015, under a previous program authorized in late 2014, buying back 4.3 million shares of our common stock.

In December 2015, our Board of Directors authorized a new $200 million share repurchase program, under which the Company expects to repurchase at least $100 million in stock during 2016.

Acquisition of Bolt’s Metallizing

On March 16, we acquired Bolt's Metallizing, a leading provider of thermal spray coatings for critical aerospace applications, including high velocity oxygen fuel (HVOF) and plasma spray coating capabilities.

Innovation

Machine Learning for Advanced System Diagnostics

For large Data Acquisition Systems, sensor and wiring fault tracking is very time consuming and difficult to achieve in a modern accelerated flight test schedule. However, aerospace is an unforgiving environment, and it is absolutely critical to ensure flight test data is valid. Curtiss-Wright developed new ways to reduce time and increase efficiency in ensuring the accuracy of on-board sensor networks.

Our Data Acquisition Instrumentation engineers are radically reducing network testing time by creating automated anomaly detection algorithms based on Machine Learning techniques — a significant departure from current diagnostic approaches.

Advanced Control Systems Improving Quality of Life

Curtiss-Wright is a leader in the “rehabilitation” wheelchair marketplace, helping provide ways for the severely disabled to better interact with the environment. Our innovative control system manages the speed, direction and other key functions in these sophisticated chairs, including connectivity to appliances and smart devices leveraging Internet of Things technologies.

Human-Machine Interface in Commercial Vehicles

Curtiss-Wright is driving innovation in the area of Human Machine Interface (“HMI“) systems for commercial vehicles — a connector between the operator and the operating environment. Our products are leveraged to extend existing HMI sub-systems by replacing mechanical controls with electro-mechanical solutions in a variety of specialty vehicles. These fully-integrated systems improve safety and efficiency by linking various HMI components, thus reducing the form factor and improving functionality.