Curtiss-Wright Corp. (CW: Quote) said Thursday that a strike by 300 employees at its flow control segment's electro-mechanical division facility in Cheswick, Pennsylvania, is likely to have a significant adverse impact on its financial results for fiscal 2012. The striking employees belong to the International Brotherhood of Electrical Workers or IBEW.
The Parsippany, New Jersey-based maker of aerospace and defense components noted that contractual agreements between the electro-mechanical division facility or EMD and its two local unions expired on August 18.
The unions were Local Union 1914 of the IBEW, and the Association of Westinghouse Salaried Employees or AWSE District 16, an affiliate of the Federation of Independent Salaried Unions, which represents 130 employees.
According to Curtiss-Wright, members of the AWSE continued to work throughout the negotiation process. However, IBEW members elected to commence a work stoppage after the company submitted its initial wage offer.
Curtiss-Wright immediately implemented contingency plans and its EMD facility remained open. The company has reached a tentative agreement with the AWSE.
The company will update the financial community once the strike has concluded.
In early August, Curtiss-Wright reported a decline in profit for the second quarter to $22.7 million or $0.48 per share from $31.8 million or $0.68 per share in the prior-year period. Net sales for the quarter grew 4 percent to $526.39 million from $505.67 million in the same period last year.
At that time, the company maintained its forecast for fiscal 2012 earnings from continuing operations in a range of $2.50 to $2.60 per share, but lowered its sales outlook to a range of $2.15 billion to $2.19 billion.
On average, analysts polled by Thomson Reuters expect the company to earn $2.53 per share for the year on revenues of $2.17 billion.
In Thursday's regular session, CW is trading at $32.07, down $0.36 or 1.11 percent on a volume of 36,408 shares.
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by RTT Staff Writer
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