BELLEVUE, WA--(Marketwire - February 24, 2011) - Esterline Corporation (NYSE: ESL) (www.esterline.com), a leading specialty manufacturer serving aerospace/defense markets, today reported fiscal 2011 first quarter (ended January 28) income from continuing operations of $30.0 million, or $0.97 per diluted share, on sales of $370.8 million. This represents a 10.6% growth in sales over last year's $335.3 million, and a 142.1% growth in income over last year's $12.4 million. Diluted earnings per share of $0.97 were up 136.6% over the prior year's level of $0.41 per diluted share.

Brad Lawrence, Esterline's Chief Executive Officer, said he was encouraged by the revenue strength that materialized in the quarter and was "...pleased with our ability to leverage that strength into enhanced levels of profitability in all three of our business segments." Lawrence said, "...the combination of increased activity in military retrofit programs with a healthier commercial aircraft market -- including strong OEM positions, important retrofit programs and improving spare parts trends -- is driving our performance."

On the commercial aerospace side, Lawrence said the stronger spare parts market was a key driver of Esterline's results in the first quarter of 2011. While the company continues to have some exposure to the timing of certain new production models, including the Boeing 787 and the slow recovery of the business jet market, Lawrence said he "...remains optimistic about expected production rates for new aircraft." He noted increasing build rates for both Airbus and Boeing single-aisle aircraft and also pointed to recent contract wins for Gulfstream aircraft as well as the recent certification of Esterline's Flight Management System for the Sukhoi Super Jet 100.

With respect to aerospace business for defense customers, Lawrence noted that the company continued to benefit from strength in retrofit work for C130s, UH-60 Blackhawks and other legacy platforms. Similar strength was also evident across a variety of international customers, including those in Brazil, India and other countries where defense budgets continue to increase. Regarding new platform work, Lawrence said that Esterline remains well positioned on several platforms, including the F-35 Joint Strike Fighter and the T-6B military trainer.

Lawrence noted that the current uncertainty surrounding the U.S. defense budget could "...affect the timing of certain programs, including our combustible ordnance and countermeasure flares businesses." However, he said, "We believe that this is a manageable risk that should not prevent us from delivering overall solid financial results in this fiscal year." Lawrence reiterated the company's recently raised full-year earnings guidance range of $4.55 to $4.80 per share.

In addition to Esterline's principal aerospace/defense business, Lawrence cited the relatively broad-based strength from applications of its core technology into such diverse end-markets as medical capital equipment, high-speed rail networks and nuclear power generation.

Lawrence emphasized that as markets improve and new growth opportunities emerge, "...Esterline is focused on operational excellence. We are clearly demonstrating continuous progress in achieving both world-class product quality and service for our customers and increased profitability and returns for our shareholders."

Gross profit dollars increased 28.7% compared to the same period last year. Gross margin as a percentage of sales increased to 35.6% in the first quarter compared with 30.6% in the first quarter of last year. Selling, general and administrative expenses were 17.8% of sales in the first quarter compared with 18.3% in the first quarter of FY10.

First quarter research, development and engineering (R&D) expense totaled $19.6 million, or 5.3% of sales, compared with $16.7 million, or 5.0% of sales in the same quarter a year ago. Lawrence said, "We continue to regard a forward-leaning research and development effort as key to our competitive advantage, a point reflected in our solid backlog of business. These efforts have enabled Esterline to capture new programs, keep our incumbency status intact on existing programs, and open doors to new categories and markets."

New orders for the first quarter rose 18.1% to $399.3 million, compared with $338.0 million for the same period in 2010. Backlog held steady at $1.1 billion.

Net income was $30.0 million, or $0.97 per diluted share compared with $12.7 million or $0.42 per diluted share in the prior year period, which includes $0.01 per diluted share of income from discontinued operations.

Conference Call Information

Esterline will host a conference call to discuss this announcement today at 5:00 p.m. Eastern Time (2:00 p.m. Pacific Time). The U.S. dial-in number is 800.706.7749; outside the U.S., use 617.614.3474. The pass code for the call is: 96512840.

This press release contains "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. These statements relate to future events or our future financial performance. In some cases, you can identify forward-looking statements by terminology such as "anticipate," "believe," "continue," "could," "estimate," "expect," "intend," "may," "might," "plan," "potential," "predict," "should" or "will," or the negative of such terms, or other comparable terminology. These forward-looking statements are only predictions based on the current intent and expectations of the management of Esterline, are not guarantees of future performance or actions, and involve risks and uncertainties that are difficult to predict and may cause Esterline's or its industry's actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements. Esterline's actual results and the timing and outcome of events may differ materially from those expressed in or implied by the forward-looking statements due to risks detailed in Esterline's public filings with the Securities and Exchange Commission including its most recent Annual Report on Form 10-K.

ESTERLINE TECHNOLOGIES CORPORATION
Consolidated Statement of Operations (unaudited)
In thousands, except per share amounts

                                                     Three months ended
                                                   -----------------------
                                                     Jan 28,       Jan 29,
                                                      2011          2010
                                                   ----------    ---------
Segment Sales
  Avionics & Controls                              $  192,467    $ 170,257
  Sensors & Systems                                    77,055       70,692
  Advanced Materials                                  101,277       94,361
                                                   ----------    ---------

Net Sales                                             370,799      335,310

Cost of Sales                                         238,677      232,639
                                                   ----------    ---------
                                                      132,122      102,671
Expenses
  Selling, general and administrative                  66,092       61,295
  Research, development and engineering                19,619       16,749
  Other expense                                            --           41
                                                   ----------    ---------
  Total Expenses                                       85,711       78,085
                                                   ----------    ---------

Operating Earnings From Continuing Operations          46,411       24,586
  Interest income                                        (340)        (383)
  Interest expense                                      9,137        7,961
                                                   ----------    ---------

Income From Continuing Operations
     Before Income Taxes                               37,614       17,008
Income Tax Expense                                      7,654        4,569
                                                   ----------    ---------
Income From Continuing Operations
     Including Noncontrolling Interests                29,960       12,439
Loss (Income) Attributable to Noncontrolling
 Interests                                                 23          (54)
                                                   ----------    ---------
Income From Continuing Operations                      29,983       12,385

Income From Discontinued Operations, Net of Tax             8          340
                                                   ----------    ---------

Net Earnings                                       $   29,991    $  12,725
                                                   ==========    =========

Earnings Per Share - Basic:
  Continuing Operations                            $      .99    $     .42
  Discontinued Operations                                  --          .01
                                                   ----------    ---------

Earnings Per Share - Basic                         $      .99    $     .43
                                                   ==========    =========

Earnings Per Share - Diluted:
  Continuing Operations                            $      .97    $     .41
  Discontinued Operations                                  --          .01
                                                   ----------    ---------

Earnings Per Share - Diluted                       $      .97    $     .42
                                                   ==========    =========

Weighted Average Number
  of Shares Outstanding - Basic                        30,349       29,789

Weighted Average Number
  of Shares Outstanding - Diluted                      31,011       30,218




ESTERLINE TECHNOLOGIES CORPORATION
Consolidated Sales and Income from Continuing Operations by Segment
(unaudited)
In thousands


                                                      Three months ended
                                                  ------------------------
                                                   Jan 28,        Jan 29,
                                                     2011          2010
                                                  ----------     ---------

Segment Sales
  Avionics & Controls                             $  192,467     $ 170,257
  Sensors & Systems                                   77,055        70,692
  Advanced Materials                                 101,277        94,361
                                                  ----------     ---------
Net Sales                                         $  370,799     $ 335,310
                                                  ==========     =========

Income from Continuing Operations
  Avionics & Controls                             $   31,004     $  19,432
  Sensors & Systems                                   10,971         4,556
  Advanced Materials                                  15,268         8,730
                                                  ----------     ---------
                                                      57,243        32,718

  Corporate expense                                  (10,832)       (8,091)
  Other expense                                           --           (41)
  Interest Income                                        340           383
  Interest expense                                    (9,137)       (7,961)
                                                  ----------     ---------
Income From Continuing Operations
  Before Income Taxes                             $   37,614     $  17,008
                                                  ==========     =========





ESTERLINE TECHNOLOGIES CORPORATION
Consolidated Balance Sheet (unaudited)
In thousands                                       Jan 28,       Jan 29,
                                                     2011          2010
                                                 -----------   -----------
Assets
Current Assets
  Cash and cash equivalents                      $   351,481   $   187,050
  Cash in escrow                                      14,000            --
  Accounts receivable, net                           263,666       245,527
  Inventories                                        303,605       271,989
  Income tax refundable                               22,084         7,581
  Deferred income tax benefits                        38,644        31,059
  Prepaid expenses                                    16,464        19,291
  Other current assets                                10,617        11,635
                                                 -----------   -----------
    Total Current Assets                           1,020,561       774,132

Property, Plant and Equipment, Net                   280,349       270,367

Other Non-Current Assets
  Goodwill                                           806,338       731,792
  Intangibles, net                                   447,644       409,204
  Debt issuance costs, net                             7,413         6,659
  Deferred income tax benefits                        88,866        79,593
  Other assets                                        10,677        12,307
                                                 -----------   -----------
                                                 $ 2,661,848   $ 2,284,054
                                                 ===========   ===========

Liabilities and Shareholders' Equity
Current Liabilities
  Accounts payable                               $    76,225   $    76,980
  Accrued liabilities                                228,378       172,636
  Credit facilities                                       --         1,439
  Current maturities of long-term debt                14,259         6,816
  Deferred income tax liabilities                      6,843         5,932
  Federal and foreign income taxes                     4,513           936
                                                 -----------   -----------
    Total Current Liabilities                        330,218       264,739

Long-Term Liabilities
  Long-term debt, net of current maturities          594,145       525,737
  Deferred income tax liabilities                    149,990       127,571
  Pension and post-retirement obligations            107,047        93,665
  Other liabilities                                   25,955        21,984


Total Shareholders' Equity                         1,454,493     1,250,358
                                                 -----------   -----------
                                                 $ 2,661,848   $ 2,284,054
                                                 ===========   ===========