Crane Co. (NYSE:CR), a diversified manufacturer of highly engineered
industrial products, reported that third quarter 2012 earnings per
diluted share from continuing operations on a GAAP basis increased 12%
to $.97 compared to $.87 in the third quarter of 2011. Third quarter
2012 results include $.02 per share of repositioning costs associated
with previously announced actions initiated in the second quarter to
improve the profitability of the Company in 2013. Excluding
repositioning costs, third quarter 2012 earnings per diluted share from
continuing operations increased 14% to $.99 compared to $.87 in the
third quarter of 2011. (Please see the attached Non-GAAP Financial
Measures table for pre-tax, after-tax and earnings per share amounts of
Special Items.)
Third quarter 2012 sales from continuing operations of $646 million were
approximately equal to the third quarter of 2011, with a core sales
increase of $13 million (2%), offset by unfavorable foreign currency
translation of $14 million (-2%).
Third quarter 2012 operating profit from continuing operations on a GAAP
basis (which includes the $1.4 million of repositioning costs) increased
8% to $86.6 million, compared to $80.3 million in the third quarter of
2011. Excluding repositioning costs, third quarter 2012 operating profit
from continuing operations increased 10% to $87.9 million, and operating
profit margin increased to 13.6%, compared to 12.4% in the third quarter
of 2011. (Please see the attached Non-GAAP Financial Measures table.)
"Crane reported record earnings per share in the third quarter, with
strong execution across the organization, and I am particularly pleased
with the margin improvement we achieved in our Fluid Handling segment,"
said Crane Co. president and chief executive officer Eric C. Fast. "We
are on track to complete our previously announced repositioning actions
by year end, which will positively impact 2013 earnings. Given our
cautious outlook on the global economy, we continue to drive
productivity initiatives and a cost conscious culture across the
Company."
Updated 2012 Guidance
Sales from continuing operations for 2012 are expected to increase
approximately 4%, or at the low end of the prior sales guidance range of
4-5%. 2012 EPS is expected to be in the lower half of the previously
communicated guidance range of $3.75 - $3.85, excluding Special Items.
The EPS guidance includes $0.04 associated with the first half profits
from discontinued operations, but excludes the gain from the sale of
these businesses and repositioning costs. Full year 2012 free cash flow
(cash provided by operating activities less capital spending) remains in
a range of $150 - $180 million.
Cash Flow and Financial Position
Cash provided by operating activities in the third quarter of 2012 was
$63.2 million, compared to $49.8 million in the third quarter of 2011.
Cash provided by operating activities in the first nine months of 2012
was $79.3 million, compared to $65.0 million in the first nine months of
2011. Free cash flow for the nine months of 2012 was $59.3 million,
compared to $37.3 million in the nine months of 2011. (Please see the
Condensed Statement of Cash Flows and Non-GAAP table.)
The Company repurchased 499,267 shares of its common stock during the
third quarter of 2012 at a cost of $20 million. The Company’s cash
position was $281 million at September 30, 2012, as compared to $252
million at June 30, 2012 and $245 million at December 31, 2011.
Repositioning Actions
In the second quarter, the Company initiated repositioning actions
primarily directed at improving the profitability of its European
businesses. Following a pre-tax charge of $14.7 million recorded in the
second quarter, the Company, as planned, incurred pre-tax repositioning
costs of $1.4 million, or $0.9 million on an after-tax basis ($0.02 per
share) in the third quarter of 2012. In addition to the amounts recorded
thus far, the Company expects to incur additional pre-tax repositioning
costs in the fourth quarter of 2012 of approximately $4 million, or
$0.04 per share, primarily associated with equipment relocation and
personnel costs in Fluid Handling. These repositioning actions are
expected to be completed by year end. Pre-tax savings associated with
all of these repositioning actions are expected to approximate $12
million annually for the Company beginning in 2013, of which $10 million
relates to Fluid Handling.
Segment Results
All comparisons detailed in this section refer to continuing operations
for the third quarter 2012 versus the third quarter 2011.
Aerospace & Electronics
|
|
|
|
|
|
Third Quarter
|
|
Change
|
|
(dollars in millions)
|
|
|
|
|
2012
|
|
2011
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Sales
|
|
|
|
|
$171.4
|
|
$172.2
|
|
($0.8)
|
|
(0%)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating Profit
|
|
|
|
|
$39.8
|
|
$35.6
|
|
$4.2
|
|
12%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Profit Margin
|
|
|
|
|
23.2%
|
|
20.7%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Third quarter 2012 sales were similar to year ago levels, reflecting
flat Aerospace Group sales and a slight decline in Electronics Group
revenue. Within the Aerospace Group, both OEM and aftermarket
sales were approximately equal to the prior year. Segment operating
profit of $39.8 million increased by $4.2 million, or 12%, primarily
reflecting lower engineering spending, and operating margin improved to
23.2%.
Aerospace & Electronics order backlog was $393 million at September 30,
2012, as compared to $423 million at June 30, 2012 and $411 million at
December 31, 2011.
Engineered Materials
|
|
|
|
Third Quarter
|
|
Change
|
|
(dollars in millions)
|
|
|
2012
|
|
2011
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Sales
|
|
|
$57.0
|
|
$53.1
|
|
$3.9
|
|
7%
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating Profit
|
|
|
$7.2
|
|
$5.9
|
|
$1.3
|
|
22%
|
|
Operating Profit, before Special Items*
|
|
|
$8.3
|
|
$5.9
|
|
$2.4
|
|
41%
|
|
|
|
|
|
|
|
|
|
|
|
|
Profit Margin
|
|
|
12.7%
|
|
11.1%
|
|
|
|
|
|
Profit Margin, before Special Items*
|
|
|
14.7%
|
|
11.1%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
* Repositioning charges primarily associated with the closure of a
manufacturing facility.
|
|
|
Segment sales of $57.0 million increased $3.9 million, or 7%, compared
to the third quarter of 2011, driven by higher sales to recreational
vehicle customers. Operating profit before Special Items increased 41%,
primarily reflecting the higher sales and effective cost controls.
As part of its repositioning actions, the Company closed a small
manufacturing facility in England. Repositioning costs of $1.1 million
on a pre-tax basis were incurred in the third quarter of 2012.
Merchandising Systems
|
|
|
|
|
|
Third Quarter
|
|
Change
|
|
(dollars in millions)
|
|
|
|
|
2012
|
|
2011
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Sales
|
|
|
|
|
$92.5
|
|
$98.8
|
|
($6.3)
|
|
(6%)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating Profit
|
|
|
|
|
$9.5
|
|
$10.8
|
|
($1.3)
|
|
(12%)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Profit Margin
|
|
|
|
|
10.3%
|
|
11.0%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Merchandising Systems sales of $92.5 million decreased $6.3 million, or
6%, reflecting lower sales in Vending and, to a lesser extent, Payment
Solutions. Operating profit decreased $1.3 million, reflecting
deleverage of the lower sales.
Fluid Handling
|
|
|
|
Third Quarter
|
|
Change
|
|
(dollars in millions)
|
|
|
2012
|
|
2011
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Sales
|
|
|
$303.1
|
|
$299.1
|
|
$4.0
|
|
1%
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating Profit
|
|
|
$42.9
|
|
$39.9
|
|
$3.0
|
|
8%
|
|
Operating Profit, before Special Items*
|
|
|
$43.1
|
|
$39.9
|
|
$3.2
|
|
8%
|
|
|
|
|
|
|
|
|
|
|
|
|
Profit Margin
|
|
|
14.2%
|
|
13.3%
|
|
|
|
|
|
Profit Margin, before Special Items*
|
|
|
14.2%
|
|
13.3%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
* Repositioning charges primarily associated with transferring
production to lower cost Company facilities.
|
|
|
|
|
Third quarter 2012 sales increased $4 million, or 1%, including a core
sales increase of $15 million (5%), partially offset by unfavorable
foreign currency translation of $11 million (-4%). Before Special Items,
operating profit increased to $43.1 million and operating margin
increased from 13.3% to 14.2%, reflecting better project execution,
price increases, and improved productivity. Backlog was $331 million at
September 30, 2012, compared to $335 million at June 30, 2012 and $314
million at December 31, 2011.
The Company’s repositioning actions are primarily focused on its
European Fluid Handling operations, to reduce costs through headcount
reductions and process improvements, principally at its Krombach
operations in Kreuztal, Germany. In addition, as part of a continuing
cost reduction strategy, certain manufacturing operations are being
transferred from facilities in Germany to Company facilities in lower
cost regions. Repositioning costs of $0.2 million on a pre-tax basis
were recorded in the third quarter of 2012.
Controls
|
|
|
|
|
|
Third Quarter
|
|
Change
|
|
(dollars in millions)
|
|
|
|
|
2012
|
|
2011
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Sales
|
|
|
|
|
$22.1
|
|
$23.8
|
|
($1.8)
|
|
(7%)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating Profit
|
|
|
|
|
$2.8
|
|
$3.8
|
|
($0.9)
|
|
(25%)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Profit Margin
|
|
|
|
|
12.9%
|
|
15.9%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Third quarter 2012 sales from continuing operations of $22.1 million
decreased 7%. Operating profit decreased 25%, reflecting deleverage of
the lower sales volume.
Additional Information
Please see the condensed financial statements and the Non-GAAP Financial
Measures table attached to this press release for supporting details.
Additional information with respect to the Company’s asbestos liability
and related accounting provisions and cash requirements is set forth in
the Current Report on Form 8-K filed with a copy of this press release.
Conference Call
Crane Co. has scheduled a conference call to discuss the third quarter
financial results on Tuesday, October 23, 2012 at 10:00 A.M. (Eastern).
All interested parties may listen to a live webcast of the call at http://www.craneco.com.
An archived webcast will also be available to replay this conference
call directly from the Company’s website.
Crane Co. is a diversified manufacturer of highly engineered industrial
products. Founded in 1855, Crane provides products and solutions to
customers in the aerospace, electronics, hydrocarbon processing,
petrochemical, chemical, power generation, automated merchandising,
transportation and other markets. The Company has five business
segments: Aerospace & Electronics, Engineered Materials, Merchandising
Systems, Fluid Handling, and Controls. Crane has approximately 11,000
employees in North America, South America, Europe, Asia and Australia.
Crane Co. is traded on the New York Stock Exchange (NYSE:CR). For more
information, visit www.craneco.com.
This press release may contain forward-looking statements as defined
by the Private Securities Litigation Reform Act of 1995. These
statements present management’s expectations, beliefs, plans and
objectives regarding future financial performance, and assumptions or
judgments concerning such performance. Any discussions contained
in this press release, except to the extent that they contain historical
facts, are forward-looking and accordingly involve estimates,
assumptions, judgments and uncertainties. There are a number of
factors that could cause actual results or outcomes to differ materially
from those addressed in the forward-looking statements. Such
factors are detailed in the Company’s Annual Report on Form 10-K for the
fiscal year ended December 31, 2011 and subsequent reports filed with
the Securities and Exchange Commission.
|
CRANE CO.
|
|
Income Statement Data
|
|
(in thousands, except per share data)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
|
|
Nine Months Ended
|
|
|
|
September 30,
|
|
September 30,
|
|
|
|
|
2012
|
|
2011
|
|
|
2012
|
|
2011
|
|
|
Net Sales:
|
|
|
|
|
|
|
|
|
|
|
|
|
Aerospace & Electronics
|
|
$
|
171,368
|
|
$
|
172,216
|
|
|
$
|
525,127
|
|
$
|
505,690
|
|
|
|
Engineered Materials
|
|
|
56,956
|
|
|
53,101
|
|
|
|
169,603
|
|
|
175,034
|
|
|
|
Merchandising Systems
|
|
|
92,489
|
|
|
98,815
|
|
|
|
277,741
|
|
|
287,703
|
|
|
|
Fluid Handling
|
|
|
303,080
|
|
|
299,118
|
|
|
|
903,617
|
|
|
845,929
|
|
|
|
Controls
|
|
|
22,088
|
|
|
23,838
|
|
|
|
73,192
|
|
|
66,209
|
|
|
|
Total Net Sales
|
|
$
|
645,981
|
|
$
|
647,088
|
|
|
$
|
1,949,280
|
|
$
|
1,880,565
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating Profit (Loss) from Continuing Operations:
|
|
|
|
|
|
|
|
|
|
|
|
|
Aerospace & Electronics
|
|
$
|
39,833
|
|
$
|
35,640
|
|
|
$
|
116,834
|
|
$
|
106,839
|
|
|
|
Engineered Materials
|
|
|
7,226
|
|
|
5,919
|
|
|
|
21,178
|
|
|
25,192
|
|
|
|
Merchandising Systems
|
|
|
9,496
|
|
|
10,845
|
|
|
|
23,324
|
|
|
22,632
|
|
|
|
Fluid Handling
|
|
|
42,892
|
|
|
39,870
|
|
|
|
108,920
|
|
|
111,474
|
|
|
|
Controls
|
|
|
2,844
|
|
|
3,789
|
|
|
|
10,513
|
|
|
8,892
|
|
|
|
Corporate
|
|
|
(15,707
|
)
|
|
(15,773
|
)
|
|
|
(46,511
|
)
|
|
(44,453
|
)
|
|
|
Total Operating Profit from Continuing Operations
|
|
|
86,584
|
|
|
80,290
|
|
|
|
234,258
|
|
|
230,576
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest Income
|
|
|
443
|
|
|
442
|
|
|
|
1,292
|
|
|
1,121
|
|
|
|
Interest Expense
|
|
|
(6,618
|
)
|
|
(6,474
|
)
|
|
|
(20,114
|
)
|
|
(19,525
|
)
|
|
|
Miscellaneous- Net
|
|
|
(6
|
)
|
|
(73
|
)
|
|
|
(704
|
)
|
|
3,262
|
|
*
|
|
Income from Continuing Operations Before Income Taxes
|
|
|
80,403
|
|
|
74,185
|
|
|
|
214,732
|
|
|
215,434
|
|
|
|
Provision for Income Taxes
|
|
|
23,997
|
|
|
22,966
|
|
|
|
64,515
|
|
|
66,936
|
|
|
|
Income from Continuing Operations
|
|
|
56,406
|
|
|
51,219
|
|
|
|
150,217
|
|
|
148,498
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Profit from Discontinued Operations attributable to common
shareholders (a)
|
|
|
-
|
|
|
1,826
|
|
|
|
3,777
|
|
|
4,343
|
|
|
|
Gain from Sales of Discontinued Operations attributable to common
shareholders (b)
|
|
|
1,385
|
|
|
-
|
|
|
|
29,445
|
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Profit from Discontinued Operations attributable to common
shareholders, net of tax (a)
|
|
|
-
|
|
|
1,187
|
|
|
|
2,456
|
|
|
2,823
|
|
|
|
Gain from Sales of Discontinued Operations attributable to common
shareholders, net of tax (b)
|
|
|
900
|
|
|
-
|
|
|
|
19,176
|
|
|
-
|
|
|
|
Gain / Profit from Discontinued Operations, net of tax
|
|
|
900
|
|
|
1,187
|
|
|
|
21,632
|
|
|
2,823
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income before allocation to noncontrolling interests
|
|
|
57,307
|
|
|
52,406
|
|
|
|
171,850
|
|
|
151,321
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Less: Noncontrolling interest in subsidiaries' earnings
|
|
|
182
|
|
|
(134
|
)
|
|
|
501
|
|
|
(123
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income attributable to common shareholders
|
|
$
|
57,125
|
|
$
|
52,540
|
|
|
$
|
171,349
|
|
$
|
151,444
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Share Data:
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per share from Continuing Operations
|
|
$
|
0.97
|
|
$
|
0.87
|
|
|
$
|
2.56
|
|
$
|
2.50
|
|
|
|
Earnings per share from Discontinued Operations
|
|
|
0.02
|
|
|
0.02
|
|
|
|
0.37
|
|
|
0.05
|
|
|
|
Earnings per Diluted Share
|
|
$
|
0.99
|
|
$
|
0.89
|
|
|
$
|
2.93
|
|
$
|
2.55
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average Diluted Shares Outstanding
|
|
|
57,873
|
|
|
59,058
|
|
|
|
58,435
|
|
|
59,330
|
|
|
|
Average Basic Shares Outstanding
|
|
|
57,123
|
|
|
58,048
|
|
|
|
57,565
|
|
|
58,202
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Supplemental Data:
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of Sales
|
|
$
|
424,954
|
|
$
|
428,524
|
|
|
$
|
1,290,671
|
|
$
|
1,235,288
|
|
|
|
Selling, General & Administrative
|
|
|
133,089
|
|
|
138,274
|
|
|
|
408,250
|
|
|
414,701
|
|
|
|
Repositioning Charges
|
|
|
1,354
|
|
|
-
|
|
|
|
16,101
|
|
|
-
|
|
|
|
Depreciation and Amortization **
|
|
|
13,174
|
|
|
15,581
|
|
|
|
43,122
|
|
|
47,208
|
|
|
|
Stock-Based Compensation Expense
|
|
|
4,402
|
|
|
3,858
|
|
|
|
12,860
|
|
|
11,132
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
* Primarily related to the sale of a building and the divestiture of
a small product line in the three months ended March 31, 2011.
|
|
** Amount included within cost of sales and selling, general &
administrative costs.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(a) Amounts represent the operating profit, and after-tax profit,
from the Houston Service Center and Azonix Corporation businesses
divested in June 2012.
|
|
(b) Amounts represent the pre-tax and after-tax gains from the June
2012 sales of both the Houston Service Center and the Azonix
Corporation.
|
|
|
|
CRANE CO.
|
|
Condensed Balance Sheets
|
|
(in thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
September 30,
|
|
|
December 31,
|
|
|
|
|
2012
|
|
|
2011
|
|
|
|
|
|
|
|
|
|
ASSETS
|
|
|
|
|
|
|
|
Current Assets
|
|
|
|
|
|
|
|
Cash and Cash Equivalents
|
|
$
|
280,536
|
|
$
|
245,089
|
|
Accounts Receivable, net
|
|
|
403,688
|
|
|
349,250
|
|
Current Insurance Receivable - Asbestos
|
|
|
16,345
|
|
|
16,345
|
|
Inventories, net
|
|
|
366,845
|
|
|
360,689
|
|
Other Current Assets
|
|
|
65,063
|
|
|
60,859
|
|
Total Current Assets
|
|
|
1,132,477
|
|
|
1,032,232
|
|
|
|
|
|
|
|
|
|
Property, Plant and Equipment, net
|
|
|
271,384
|
|
|
284,146
|
|
Long-Term Insurance Receivable - Asbestos
|
|
|
199,264
|
|
|
208,952
|
|
Other Assets
|
|
|
456,934
|
|
|
497,377
|
|
Goodwill
|
|
|
812,453
|
|
|
820,824
|
|
|
|
|
|
|
|
|
|
Total Assets
|
|
$
|
2,872,512
|
|
$
|
2,843,531
|
|
|
|
|
|
|
|
|
|
LIABILITIES AND EQUITY
|
|
|
|
|
|
|
|
Current Liabilities
|
|
|
|
|
|
|
|
Notes Payable and Current Maturities of Long-Term Debt
|
|
$
|
1,114
|
|
$
|
1,112
|
|
Accounts Payable
|
|
|
173,328
|
|
|
194,158
|
|
Current Asbestos Liability
|
|
|
100,943
|
|
|
100,943
|
|
Accrued Liabilities
|
|
|
217,261
|
|
|
226,717
|
|
Income Taxes
|
|
|
28,618
|
|
|
10,165
|
|
Total Current Liabilities
|
|
|
521,264
|
|
|
533,095
|
|
|
|
|
|
|
|
|
|
Long-Term Debt
|
|
|
399,048
|
|
|
398,914
|
|
Long-Term Deferred Tax Liability
|
|
|
42,545
|
|
|
41,668
|
|
Long-Term Asbestos Liability
|
|
|
722,962
|
|
|
792,701
|
|
Other Liabilities
|
|
|
253,941
|
|
|
255,097
|
|
|
|
|
|
|
|
|
|
Total Equity
|
|
|
932,752
|
|
|
822,056
|
|
|
|
|
|
|
|
|
|
Total Liabilities and Equity
|
|
$
|
2,872,512
|
|
$
|
2,843,531
|
|
|
|
|
|
|
|
|
|
CRANE CO.
|
|
Condensed Statements of Cash Flows
|
|
(in thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
|
|
Nine Months Ended
|
|
|
|
September 30,
|
|
September 30,
|
|
|
|
2012
|
|
2011
|
|
2012
|
|
2011
|
|
Operating Activities:
|
|
|
|
|
|
|
|
|
|
Net income attributable to common shareholders
|
|
$
|
57,125
|
|
|
$
|
52,540
|
|
|
$
|
171,349
|
|
|
$
|
151,444
|
|
|
Noncontrolling interest in subsidiaries' earnings
|
|
|
182
|
|
|
|
(134
|
)
|
|
|
501
|
|
|
|
(123
|
)
|
|
Net income before allocations to noncontrolling interests
|
|
|
57,307
|
|
|
|
52,406
|
|
|
|
171,850
|
|
|
|
151,321
|
|
|
Gain on divestiture
|
|
|
(1,385
|
)
|
|
|
-
|
|
|
|
(29,445
|
)
|
|
|
(4,258
|
)
|
|
Restructuring - Non Cash
|
|
|
16
|
|
|
|
-
|
|
|
|
2,777
|
|
|
|
-
|
|
|
Depreciation and amortization
|
|
|
13,174
|
|
|
|
15,581
|
|
|
|
43,122
|
|
|
|
47,208
|
|
|
Stock-based compensation expense
|
|
|
4,402
|
|
|
|
3,858
|
|
|
|
12,860
|
|
|
|
11,132
|
|
|
Defined benefit plans and postretirement expense
|
|
|
4,796
|
|
|
|
1,811
|
|
|
|
14,769
|
|
|
|
5,403
|
|
|
Deferred income taxes
|
|
|
8,674
|
|
|
|
8,219
|
|
|
|
24,417
|
|
|
|
21,739
|
|
|
Cash provided by (used for) operating working capital
|
|
|
11,292
|
|
|
|
8,479
|
|
|
|
(79,322
|
)
|
|
|
(76,912
|
)
|
|
Defined benefit plans and postretirement contributions
|
|
|
(1,642
|
)
|
|
|
(6,696
|
)
|
|
|
(4,463
|
)
|
|
|
(17,054
|
)
|
|
Environmental payments, net of reimbursements
|
|
|
(3,953
|
)
|
|
|
(2,601
|
)
|
|
|
(11,256
|
)
|
|
|
(8,735
|
)
|
|
Other
|
|
|
(8,696
|
)
|
|
|
(7,654
|
)
|
|
|
(6,005
|
)
|
|
|
(5,617
|
)
|
|
Subtotal
|
|
|
83,985
|
|
|
|
73,403
|
|
|
|
139,304
|
|
|
|
124,227
|
|
|
Asbestos related payments, net of insurance recoveries
|
|
|
(20,834
|
)
|
|
|
(23,612
|
)
|
|
|
(60,051
|
)
|
|
|
(59,233
|
)
|
|
Total provided by operating activities
|
|
|
63,151
|
|
|
|
49,791
|
|
|
|
79,253
|
|
|
|
64,994
|
|
|
|
|
|
|
|
|
|
|
|
|
Investing Activities:
|
|
|
|
|
|
|
|
|
|
Capital expenditures
|
|
|
(6,164
|
)
|
|
|
(9,421
|
)
|
|
|
(19,944
|
)
|
|
|
(27,703
|
)
|
|
Proceeds from disposition of capital assets
|
|
|
396
|
|
|
|
190
|
|
|
|
2,254
|
|
|
|
4,720
|
|
|
Payment for acquisition, net of cash acquired
|
|
|
-
|
|
|
|
(35,594
|
)
|
|
|
-
|
|
|
|
(35,594
|
)
|
|
Proceeds from divestiture
|
|
|
934
|
|
|
|
-
|
|
|
|
53,599
|
|
|
|
1,000
|
|
|
Total provided by (used for) investing activities
|
|
|
(4,834
|
)
|
|
|
(44,825
|
)
|
|
|
35,909
|
|
|
|
(57,577
|
)
|
|
|
|
|
|
|
|
|
|
|
|
Financing Activities:
|
|
|
|
|
|
|
|
|
|
Dividends paid
|
|
|
(15,923
|
)
|
|
|
(15,098
|
)
|
|
|
(45,998
|
)
|
|
|
(41,957
|
)
|
|
Reacquisition of shares on open market
|
|
|
(20,000
|
)
|
|
|
-
|
|
|
|
(49,991
|
)
|
|
|
(49,999
|
)
|
|
Stock options exercised - net of shares reacquired
|
|
|
-
|
|
|
|
2,913
|
|
|
|
8,426
|
|
|
|
19,937
|
|
|
Excess tax benefit from stock-based compensation
|
|
|
(45
|
)
|
|
|
347
|
|
|
|
3,233
|
|
|
|
5,706
|
|
|
Change in short-term debt
|
|
|
-
|
|
|
|
(806
|
)
|
|
|
-
|
|
|
|
(1,336
|
)
|
|
Total used for financing activities
|
|
|
(35,968
|
)
|
|
|
(12,644
|
)
|
|
|
(84,330
|
)
|
|
|
(67,649
|
)
|
|
|
|
|
|
|
|
|
|
|
|
Effect of exchange rate on cash and cash equivalents
|
|
|
5,888
|
|
|
|
(12,504
|
)
|
|
|
4,615
|
|
|
|
(1,526
|
)
|
|
Increase (decrease) in cash and cash equivalents
|
|
|
28,237
|
|
|
|
(20,182
|
)
|
|
|
35,447
|
|
|
|
(61,758
|
)
|
|
Cash and cash equivalents at beginning of period
|
|
|
252,299
|
|
|
|
231,365
|
|
|
|
245,089
|
|
|
|
272,941
|
|
|
Cash and cash equivalents at end of period
|
|
$
|
280,536
|
|
|
$
|
211,183
|
|
|
$
|
280,536
|
|
|
$
|
211,183
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CRANE CO.
|
|
Order Backlog
|
|
(in thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
September 30,
|
|
June 30,
|
|
March 31,
|
|
December 31,
|
|
September 30,
|
|
|
|
|
2012
|
|
2012
|
|
2012
|
|
2011
|
|
2011
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Aerospace & Electronics
|
|
$
|
392,862
|
|
$
|
423,282
|
|
$
|
437,822
|
|
$
|
410,794
|
|
$
|
409,284
|
|
|
Engineered Materials
|
|
|
11,357
|
|
|
13,884
|
|
|
11,129
|
|
|
11,110
|
|
|
9,879
|
|
|
Merchandising Systems
|
|
|
19,957
|
|
|
23,587
|
|
|
30,033
|
|
|
15,212
|
|
|
20,929
|
|
|
Fluid Handling
|
|
|
330,824
|
|
|
334,696
|
|
|
337,538
|
*
|
|
313,715
|
*
|
|
328,757
|
*
|
|
Controls
|
|
|
17,296
|
|
|
16,187
|
|
|
29,770
|
**
|
|
27,120
|
**
|
|
32,145
|
**
|
|
Total Backlog
|
|
$
|
772,296
|
|
$
|
811,636
|
|
$
|
846,292
|
|
$
|
777,951
|
|
$
|
800,994
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
* Includes Order Backlog of $2.9 million at March 31, 2012, $1.9
million at December 31, 2011 and September 30, 2011 pertaining to a
business divested in June 2012.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
** Includes Order Backlog of $11.3 million at March 31, 2012, $9.6
million at December 31, 2011 and $11.8 million at September 30, 2011
pertaining to a business divested in June 2012.
|
|
|
|
CRANE CO.
|
|
Non-GAAP Financial Measures
|
|
(in thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
|
|
|
Nine Months Ended
|
|
Percent Change
|
|
Percent Change
|
|
|
|
September 30,
|
|
|
September 30,
|
|
September 30, 2012
|
|
September 30, 2012
|
|
|
|
2012
|
|
2011
|
|
|
2012
|
|
2011
|
|
Three Months
|
|
Nine Months
|
|
INCOME ITEMS
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Sales
|
|
$
|
645,981
|
|
|
$
|
647,088
|
|
|
|
$
|
1,949,280
|
|
|
$
|
1,880,565
|
|
|
-0.2
|
%
|
|
3.7
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating Profit from Continuing Operations
|
|
|
86,584
|
|
|
|
80,290
|
|
|
|
|
234,258
|
|
|
|
230,576
|
|
|
7.8
|
%
|
|
1.6
|
%
|
|
Percentage of Sales
|
|
|
13.4
|
%
|
|
|
12.4
|
%
|
|
|
|
12.0
|
%
|
|
|
12.3
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Special Items impacting Operating Profit
from Continuing Operations:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Repositioning Charges (a)
|
|
|
1,354
|
|
|
|
|
|
|
16,101
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating Profit from Continuing Operations before Special Items
|
|
$
|
87,938
|
|
|
$
|
80,290
|
|
|
|
$
|
250,359
|
|
|
$
|
230,576
|
|
|
9.5
|
%
|
|
8.6
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Percentage of Sales
|
|
|
13.6
|
%
|
|
|
12.4
|
%
|
|
|
|
12.8
|
%
|
|
|
12.3
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Income Attributable to Common Shareholders
|
|
$
|
57,125
|
|
|
$
|
52,540
|
|
|
|
$
|
171,349
|
|
|
$
|
151,444
|
|
|
|
|
|
|
Per Share
|
|
$
|
0.99
|
|
|
$
|
0.89
|
|
|
|
$
|
2.93
|
|
|
$
|
2.55
|
|
|
11.0
|
%
|
|
14.9
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Special Items impacting Net Income
Attributable to Common Shareholders:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Repositioning Charges - Net of Tax (a)
|
|
|
948
|
|
|
|
|
|
|
12,828
|
|
|
|
|
|
|
|
|
Per Share
|
|
$
|
0.02
|
|
|
|
|
|
$
|
0.22
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gain on Divestitures - Net of Tax (b)
|
|
|
(900
|
)
|
|
|
|
|
|
(19,176
|
)
|
|
|
|
|
|
|
|
Per Share
|
|
$
|
(0.02
|
)
|
|
|
|
|
$
|
(0.33
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Income Attributable To Common Shareholders Before Special Items
|
|
$
|
57,173
|
|
|
$
|
52,540
|
|
|
|
$
|
165,001
|
|
|
$
|
151,444
|
|
|
8.8
|
%
|
|
9.0
|
%
|
|
Per Basic Share
|
|
$
|
1.00
|
|
|
$
|
0.91
|
|
|
|
$
|
2.87
|
|
|
$
|
2.60
|
|
|
|
|
|
|
Per Diluted Share
|
|
$
|
0.99
|
|
|
$
|
0.89
|
|
(c)
|
|
$
|
2.82
|
|
|
$
|
2.55
|
|
|
11.0
|
%
|
|
10.6
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(a) The Company incurred repositioning charges in the second quarter
and third quarter of 2012, associated with productivity actions. The
charges included severance and impairment costs related to the
shutdown of certain facilities, the transfer of certain
manufacturing operations, and staff reduction actions.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(b) In June 2012, the Company divested of a business within the
Fluid Handling segment (Houston Service Center) and a business
within the Controls segment (Azonix Corporation). The associated
gains were included in the "Gain from Sale of Discontinued
Operations attributable to common shareholders, net of tax"
section on the accompanying Income Statement Data. In September
2012, the Company recorded a favorable price adjustment associated
with the Azonix Corporation divestiture.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(c) For the three months ended September 30, 2011, the $0.89 of
earnings per diluted share included $0.87 of earnings per diluted
share from continuing operations and $0.02 of earnings per diluted
share from discontinued operations. Therefore, the $0.99 of
earnings per diluted shares before Special Items for the three
months ended September 30, 2012 represents a 14% increase when
compared to the $0.87 of earnings per diluted share from
continuing operations for the three months ended September 30,
2011.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
|
|
|
Nine Months Ended
|
|
|
|
|
|
|
|
September 30,
|
|
|
September 30,
|
|
|
|
|
|
|
|
2012
|
|
2011
|
|
|
2012
|
|
2011
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CASH FLOW ITEMS
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash Provided from Operating Activities before Asbestos - Related
Payments
|
|
$
|
83,985
|
|
|
$
|
73,403
|
|
|
|
$
|
139,304
|
|
|
$
|
124,227
|
|
|
|
|
|
|
Asbestos Related Payments, Net of Insurance Recoveries
|
|
|
(20,834
|
)
|
|
|
(23,612
|
)
|
|
|
|
(60,051
|
)
|
|
|
(59,233
|
)
|
|
|
|
|
|
Cash Provided from Operating Activities
|
|
|
63,151
|
|
|
|
49,791
|
|
|
|
|
79,253
|
|
|
|
64,994
|
|
|
|
|
|
|
Less: Capital Expenditures
|
|
|
(6,164
|
)
|
|
|
(9,421
|
)
|
|
|
|
(19,944
|
)
|
|
|
(27,703
|
)
|
|
|
|
|
|
Free Cash Flow
|
|
$
|
56,987
|
|
|
$
|
40,370
|
|
|
|
$
|
59,309
|
|
|
$
|
37,291
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Certain non-GAAP measures have been provided to facilitate
comparison with the prior year.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
The Company reports its financial results in accordance with U.S.
generally accepted accounting principles (GAAP). However, management
believes that non-GAAP financial measures which exclude certain
non-recurring items present additional useful comparisons between
current results and results in prior operating periods, providing
investors with a clearer view of the underlying trends of the
business. Management also uses these non-GAAP financial measures in
making financial, operating, planning and compensation decisions and
in evaluating the Company's performance.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
In addition, Free Cash Flow provides supplemental information to
assist management and investors in analyzing the Company's ability
to generate liquidity from its operating activities. The measure
of Free Cash Flow does not take into consideration certain other
non-discretionary cash requirements such as, for example,
mandatory principal payments on the Company's long-term debt.
Non-GAAP financial measures, which may be inconsistent with
similarly captioned measures presented by other companies, should
be viewed in addition to, and not as a substitute for, the
Company's reported results prepared in accordance with GAAP.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP financial measures, which may be inconsistent with
similarly captioned measures presented by other companies, should
be viewed in the context of the definitions of the elements of
such measures we provide and in addition to, and not as a
substitute for, the Company's reported results prepared in
accordance with GAAP.
|
Crane Co.
Richard E. Koch, 203-363-7352
Director, Investor Relations and Corporate Communications
www.craneco.com