Executing on Growth
In a year of weakening demand and program disruptions, we've continued to make investments throughout the company. We completed the build-out of our facilities in Cheswick, Pennsylvania, to meet the expansion of the AP1000 and naval development programs. We completed the consolidation of our industrial controls business from nine locations to one state-of-the-art manufacturing facility. We invested nearly $55 million in research and development for new product innovations across our core markets of defense, energy and general industry, while continuing to stay active in the acquisition market, spending an aggregate $67 million for five companies in 2009. While our solid balance sheet and cash flow are primed for more significant opportunities, if we stay true to our disciplined approach, I am confident it will continue to prove to be an attractive growth engine.
Most importantly, we continued our focus on employee development with training initiatives at all levels and leadership programs to convey best practices throughout the organization. Innovation, operational excellence and customer satisfaction are more than values at Curtiss-Wright. They are everyday passions and key to our formula for success.
Our efforts are best demonstrated by our $1.7 billion in new orders, which solidifies backlog at $1.6 billion and provides the foundation for significant momentum as demand rebuilds.
Strategic Markets Sustain Shareholder Value
In defense, our 15% growth was fueled by demand for improved surveillance and reconnaissance technologies in all branches of the military. In addition, our proprietary, power-dense propulsion technologies are at the heart of the U.S. Navy's expanding fleet of aircraft carriers, submarines and destroyers, and we are providing next-generation marine landing systems for helicopters and jets.
In our commercial markets, we experienced a 10% decline, mainly stemming from the lack of liquidity in the financial markets, instability in energy prices and the global recession. Most significantly, automotive demand was cut in half, mirroring North American automotive production, and we had reduced demand across all markets, echoing the double-digit decline in U.S. industrial production that has occurred over the past two years. In positive contrast, commercial nuclear power market gains of 15% mitigated a more negative impact, and we continue to view our unique leverage to this market as a valuable differentiator.
It is in such tumultuous times that our diversification strategy truly demonstrates its long-term value. As we adapted to the rapid change in market dynamics, we benefited from the base load demand generated by our nuclear and defense technologies. As the commercial markets stabilize, their leverage will be further enhanced by the operational improvements we have enacted. As a testament to our confidence in our ability to continue to generate earnings growth, we maintained our dividend, providing a consistent distribution of value to our shareholders. Ultimately, there is room for tremendous growth as our markets rebound, and we are uniquely positioned within our core markets and well capitalized to capture the opportunities.
80th Anniversary and Counting
Fewer than 20 companies whose shares changed hands on the New York Stock Exchange in 1929 still trade under their original listing. Curtiss-Wright is proud to be one of them. We've not only persevered, we've continued to succeed and innovate through some of the most volatile periods in American history.
As always, I would like to thank the enduring dedication of our 7,600 employees, whose profound drive and dedication will keep Curtiss-Wright soaring to new heights.
Martin R. Benante
Chairman and Chief Executive Officer