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UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C.   20549

_________________

FORM 10-Q

  QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF
THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended April 29, 2005                               

OR

  TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF
THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from _____________________ to ________________________

Commission file number  1-6357

ESTERLINE TECHNOLOGIES CORPORATION
(Exact name of registrant as specified in its charter)



                   Delaware                   
(State or other Jurisdiction
of incorporation or organization)		                    13-2595091                   
(I.R.S. Employer
Identification No.)


500 108th Avenue NE, Bellevue, Washington 98004
(Address of principal executive offices)    (Zip Code)



        Registrant’s telephone number, including area code 425/453-9400

Indicate by check mark whether the registrant:  (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.

Yes      X        No          

Indicate by check mark whether the registrant is an accelerated filer (as defined in Rule 12b-2 of the Exchange Act).

Yes      X        No          

As of June 3, 2005, 25,181,597 shares of the issuer’s common stock were outstanding.

 


 

PART 1 – FINANCIAL INFORMATION

Item 1.           Financial  Statements

ESTERLINE TECHNOLOGIES CORPORATION
CONSOLIDATED BALANCE SHEET
As of April 29, 2005 and October 29, 2004
(In thousands, except share amounts)



April 29,
2005
 October 29,
2004
ASSETS       (Unaudited)        
                 
Current Assets    
     Cash and cash equivalents     $ 137,704   $ 29,479  
     Cash in escrow       7,537     8,511  
     Short-term investments       45,486     —  
     Accounts receivable, net of allowances    
         of $4,163 and $3,687       128,212     132,206  
     Inventories    
         Raw materials and purchased parts       67,288     58,736  
         Work in process       46,324     43,326  
         Finished goods       18,485     16,992  
        132,097     119,054  
                 
     Deferred income tax benefits       22,324     20,984  
     Prepaid expenses       8,733     9,441  
     Other current assets       288     435  
         Total Current Assets       482,381     320,110  
                 
Property, Plant and Equipment    273,817    275,437  
     Accumulated depreciation    136,468    130,302  
        137,349     145,135  
                 
Other Non-Current Assets    
     Goodwill       246,032     247,817  
     Intangibles, net       166,593     169,876  
     Debt issuance costs, net of accumulated    
         amortization of $1,265 and $928       5,481     5,818  
     Deferred income tax benefits      9,986     11,216  
     Other assets       28,266     32,861  
      $ 1,076,088   $ 932,833  


-2-

ESTERLINE TECHNOLOGIES CORPORATION
CONSOLIDATED BALANCE SHEET
As of April 29, 2005 and October 29, 2004
(In thousands, except share amounts)



April 29,
2005
 October 29,
2004
LIABILITIES AND SHAREHOLDERS’ EQUITY       (Unaudited)      
                 
Current Liabilities    
     Accounts payable     $ 42,387   $ 37,867  
     Accrued liabilities       95,388     97,038  
     Credit facilities       2,567     6,977  
     Current maturities of long-term debt       30,901     1,031  
     Federal and foreign income taxes       7,213     6,678  
         Total Current Liabilities       178,456     149,591  
                 
Long-Term Liabilities    
     Long-term debt, net of current maturities       217,722     249,056  
     Deferred income taxes       45,280     43,443  
     Other liabilities       26,185     29,852  
                 
Commitments and Contingencies       —     —  
                 
Minority Interest       2,427     2,378  
                 
Shareholders’ Equity    
     Common stock, par value $.20 per share,    
         authorized 60,000,000 shares, issued and    
         outstanding 25,154,109 and 21,319,698 shares       5,031     4,264  
     Additional paid-in capital       231,130     120,553  
     Retained earnings       340,428     309,155  
     Accumulated other comprehensive income       29,429     24,541  
         Total Shareholders’ Equity       606,018     458,513  
      $ 1,076,088   $ 932,833  


-3-

ESTERLINE TECHNOLOGIES CORPORATION
CONSOLIDATED STATEMENT OF OPERATIONS
For the Three and Six Month Periods Ended April 29, 2005 and April 30, 2004
(Unaudited)
(In thousands, except per share amounts)



Three Months Ended
 Six Months Ended
April 29,
2005
 April 30,
2004
 April 29,
2005
 April 30,
2004
                             
Net Sales     $ 211,592   $ 146,474   $ 401,384   $ 275,840  
Cost of Sales       143,054     97,890     274,746     188,664  
        68,538     48,584     126,638     87,176  
Expenses    
     Selling, general & administrative       34,455     26,027     65,765     55,887  
     Research, development &    
        engineering       9,866     6,015     19,113     11,438  
        Total Expenses       44,321     32,042     84,878     67,325  
                             
Operating Earnings From    
     Continuing Operations       24,217     16,542     41,760     19,851  
                             
     Other (income) expense       28     (19 )   66     (575 )
     Interest income       (1,025 )   (284 )   (1,560 )   (597 )
     Interest expense       4,097     4,163     8,779     8,455  
Other Expense, Net       3,100     3,860     7,285     7,283  
                             
Income From Continuing Operations    
     Before Income Taxes       21,117     12,682     34,475     12,568  
Income Tax Expense       6,415     3,730     10,119     1,912  
Income From Continuing Operations    
   Before Minority Interest       14,702     8,952     24,356     10,656  
                             
Minority Interest       (35 )   —     (48 )   —  
Income From Continuing Operations       14,667     8,952     24,308     10,656  
                             
Income (Loss) From Discontinued    
     Operations, Net of Tax       (562 )   960     6,965     1,134  
                             
Net Earnings     $ 14,105   $ 9,912   $ 31,273   $ 11,790  


-4-

ESTERLINE TECHNOLOGIES CORPORATION
CONSOLIDATED STATEMENT OF OPERATIONS
For the Three and Six Month Periods Ended April 29, 2005 and April 30, 2004
(Unaudited)
(In thousands, except per share amounts)



Three Months Ended
 Six Months Ended
April 29,
2005
 April 30,
2004
 April 29,
2005
 April 30,
2004
Earnings (Loss) Per Share – Basic:                            
     Continuing operations     $ .58   $ .42   $ .99   $ .50  
     Discontinued operations       (.02 )   .05     .28     .06  
     Earnings per share – basic     $ .56   $ .47   $ 1.27   $ .56  
                             
Earnings (Loss) Per Share – Diluted:  
     Continuing operations     $ .58   $ .42   $ .97   $ .50  
     Discontinued operations       (.03 )   .04     .28     .05  
     Earnings per share – diluted     $ .55   $ .46   $ 1.25   $ .55  


-5-

ESTERLINE TECHNOLOGIES CORPORATION
CONSOLIDATED STATEMENT OF CASH FLOWS
For the Six Month Periods Ended April 29, 2005 and April 30, 2004
(Unaudited)
(In thousands)



Six Months Ended
April 29,
2005
 April 30,
2004
Cash Flows Provided (Used) by Operating Activities            
     Net earnings     $ 31,273   $ 11,790  
     Minority interest       49     —  
     Depreciation and amortization       19,835     14,936  
     Deferred income taxes       1,592     (876 )
     Gain on sale of discontinued operations       (9,456 )   —  
     Loss on sale of building       59     —  
     Gain on sale of land       —     (577 )
     Working capital changes, net of effect of acquisitions    
         Accounts receivable       3,040     14,482  
         Inventories       (14,535 )   (6,392 )
         Prepaid expenses       773     (1,933 )
         Accounts payable       4,214     (1,457 )
         Accrued liabilities       754     (203 )
         Federal and fo