CIRCOR Announces Record Second Quarter Earnings of $0.60 per share

CIRCOR Announces Record Second Quarter Earnings of $0.60 per share

- Company posts new records for orders and backlog.

- Operational performance improves in both segments.

- End markets remain healthy, raising expectations for second half results.

BURLINGTON, Mass., Aug. 1 /PRNewswire-FirstCall/ — CIRCOR International, Inc. CIR, a leading provider of valves and other fluid control devices for the instrumentation, aerospace, thermal fluid and energy markets, today announced results for the second quarter and six months ended July 1, 2007.

Revenues for the 2007 second quarter were $165.9 million, an increase of 15% from $144.4 million for the second quarter 2006 period. Net income for the second quarter of 2007 increased 55% to $10.0 million, or $0.60 per diluted share, which included $0.03 per diluted share of special charges primarily related to the consolidation of manufacturing facilities. Net income for the second quarter of 2006 was $6.5 million, or $0.40 per diluted share.

For the six months ended July 1, 2007, revenues were $327.2 million, an increase of 20% from $271.7 million for the comparable period in 2006. Net income for the first half of 2007 was $17.4 million, or $1.05 per diluted share, an increase of 50% from $11.6 million, or $0.71 per diluted share, in the same period last year. Results for the first half of 2007 include $0.05 per diluted share of special charges.

The Company received a record level of orders totaling $228.4 million during the second quarter of 2007, increasing 18% over the second quarter of 2006, and a 22% increase from the first quarter of 2007. For the first six months of 2007, orders totaled $415.2 million with July 1, 2007, backlog reaching another record level of $373.7 million, representing increases of 5% and 28%, respectively, over the same periods in 2006.

During the second quarter of 2007, the Company generated $5.4 million of free cash flow (defined as net cash from operating activities, less capital expenditures and dividends paid) and, for the first six months of 2007, the Company had positive free cash flow of less than $0.1 million despite higher working capital needed to support the Company’s record orders and backlog. This compares favorably to the first six months of 2006 during which the Company used $4.8 million of free cash flow. The improvement from 2006 largely resulted from the sharp increase in profitability.