Highlights from Full Year 2017 Results and 2018 Guidance:
- GAAP earnings per diluted share (EPS) of $2.84 compared to $2.07 in 2016. Excluding Special Items, EPS of $4.53 increased 7% compared to last year.
- Record free cash flow (cash provided by operating activities less capital spending) of $269 million.
- Revising 2018 GAAP EPS guidance range to $4.65-$4.85. Excluding Special Items, the new guidance range is $5.35-$5.55.
- Guidance now includes the impact of the Crane Currency acquisition, the impacts of the 2017 U.S. tax reform legislation, a new repositioning program, and expenses associated with acceleration of growth investments enabled by tax reform.
Crane Co. (NYSE: CR), a diversified manufacturer of highly engineered
industrial products, reported full year and fourth quarter 2017
financial results, and provided an update on its 2018 outlook.
"We delivered three new records in 2017: adjusted EPS of $4.53, adjusted
operating margins of 15.2%, and free cash flow of $269 million," said
Max Mitchell, Crane Co. President and Chief Executive Officer. "I am
very proud of our 2017 performance, and I have never been more excited
about Crane's multi-year earnings outlook than I am today. Our core
business is executing extremely well; the recently completed Crane
Currency acquisition is off to a great start; the recent tax reform
legislation will not only improve our profitability, but it will enable
us to accelerate investments for future growth; and we continue to focus
on margin improvement through productivity and certain new repositioning
actions.
"While there is a lot of exciting activity in our core business,
including strong execution on growth and productivity initiatives,
several other developments are also contributing to our positive
outlook. Earlier this month, we closed on the Crane Currency
acquisition, the second largest transaction in Crane's history. Crane
Currency is the fastest growing, fully integrated global currency
provider in the global banknote supply and security industry, and it is
an excellent fit to complement our expanding presence in the currency
and payment markets, bringing proprietary and differentiated technology.
We believe that the combined businesses will be stronger together,
offering end-to-end currency and security solutions, from substrate
manufacturing and banknote design and printing to micro-optics and
banknote validation. The integration is well underway, and we expect
Crane Currency to contribute $0.15 of adjusted EPS in 2018, growing to
approximately $1.00 of EPS annually by 2021.
"We also view the recently enacted Tax Cuts and Jobs Act (TCJA) as a
very favorable development with an annual EPS benefit of approximately
$0.50. The TCJA should also improve our global competitiveness by
enabling increased flexibility to deploy capital in the United States.
Because of the benefits and related flexibility we expect from this
legislation, we have decided to accelerate strategic growth investments
across several of our businesses over the next two years. These
investments will offset approximately $0.25 per share of the tax benefit
in 2018, and then decline to approximately $0.15 in 2019, with the full
$0.50 annual EPS benefit from the TCJA reading through by 2020.
"In addition, our relentless focus on continuously improving our
operations has resulted in a significant opportunity to execute
proactive facility consolidations within our Fluid Handling, Aerospace &
Electronics, and Payment & Merchandising businesses. We believe that
these actions will not only improve our cost position, but enable us to
meet higher expected future demand and provide the footprint that best
serves our customers. These actions should contribute approximately
$0.10 of EPS, excluding Special Items, in 2018, growing to an annualized
EPS run-rate of approximately $0.35 by the end of 2020."
Mr. Mitchell concluded, "The growth potential of our core business,
combined with the benefits from the Crane Currency acquisition, tax
reform, accelerated growth investments, and repositioning activities,
will position Crane for double-digit annual adjusted earnings growth for
at least the next several years, with further upside possible from
additional capital deployment. We also announced today that we are
raising our dividend for the first time since 2014, further reflecting
confidence in our outlook." (Please see the attached Non-GAAP Financial
Measures tables.)
Fourth Quarter 2017 Results
The fourth quarter 2017 GAAP net loss was $0.48 per share, compared to a
fourth quarter 2016 GAAP net loss of $1.09 per share. Fourth quarter
2017 results include: a tax charge of $87 million, or $1.44 per diluted
share, related to the TCJA; an after-tax charge of $8 million, or $0.13
per diluted share, related to repositioning, net; and, an after-tax
charge of $5 million, or $0.08 per diluted share, for M&A related items.
Fourth quarter 2016 results include an after-tax net asbestos provision
of $125 million, or $2.13 per diluted share. Excluding Special Items,
fourth quarter 2017 EPS was $1.18, compared to $1.02 in 2016. (Please
see the attached Non-GAAP Financial Measures tables.)
Fourth quarter 2017 sales were $714 million, up 5% compared to 2016.
Core sales increased $13 million, or 2%, with $14 million, or 2%, of
favorable foreign exchange, and a $5 million, or 1%, net acquisition
benefit.
Fourth quarter 2017 operating profit was $91 million compared to an
operating loss of $92 million in 2016. Excluding Special Items, fourth
quarter 2017 operating profit was $109 million, an increase of 8%
compared to 2016. (Please see the attached Non-GAAP Financial Measures
tables.)
Full Year 2017 Results
Full year 2017 GAAP EPS was $2.84, compared to $2.07 in 2016. Full year
2017 results include: a tax charge of $87 million, or $1.44 per share,
related to the TCJA; an after-tax charge of $8 million, or $0.13 per
share, related to repositioning, net; and, an after-tax charge of $7
million, or $0.11 per share, for M&A related items. Full year 2016
results include an after-tax net asbestos provision of $125 million, or
$2.11 per share, and a $3 million net after-tax legal settlement charge,
or $0.05 per share. Excluding Special Items, 2017 EPS of $4.53 increased
7% compared to $4.23 in 2016. (Please see the attached Non-GAAP
Financial Measures tables.)
Full year 2017 sales were $2.8 billion, up 1% compared to 2016. Core
sales increased $31 million, or 1%, and net acquisitions contributed $14
million, partially offset by $7 million of unfavorable foreign exchange.
Full year 2017 operating profit was $402 million compared to $200
million in 2016. Excluding Special Items, full year 2017 operating
profit was $423 million, an increase of 6% compared to $398 million in
2016. Full year 2017 adjusted operating margin of 15.2% increased 70
basis points compared to 14.5% in 2016. (Please see the attached
Non-GAAP Financial Measures tables.)
Cash Flow and Other Financial Metrics
Cash provided by operating activities for full year 2017 was $318
million, flat compared to $318 million in 2016. Free cash flow (cash
provided by operating activities less capital spending) was $269 million
in 2017, compared to $267 million in 2016. The Company's cash position
was $706 million at December 31, 2017, compared to $510 million at
December 31, 2016. Total debt was $743 million at December 31, 2017,
compared to $745 million at December 31, 2016. On January 10, 2018,
Crane Co. acquired Crane Currency for $800 million on a cash free and
debt free basis using a combination of short-term debt and cash on hand.
Tax Reform Bill Enabling Accelerated Growth Investments
On December 22, 2017, the TCJA was signed into law, significantly
changing U.S. corporate tax law. As a result, the fourth quarter of 2017
included a one-time tax charge of $87 million related to both the
remeasurement of U.S. deferred tax balances and to taxation of
unremitted earnings of non-U.S. subsidiaries.
For 2018, we expect a GAAP tax rate of approximately 22%. Excluding
Special Items, we expect a 2018 effective tax rate of approximately 22%,
a decrease of approximately eight to nine percentage points compared to
Crane's typical effective tax rate prior to the TCJA.
As a result of the tax savings and greater flexibility to repatriate
foreign cash related to the TCJA, Crane Co. is accelerating growth
investments across its businesses. On a pre-tax basis, these incremental
growth investments are expected to be approximately $20 million in 2018
and $10 million in 2019.
Repositioning Initiatives
2018 benefits from repositioning actions in our Fluid Handling, Payment
& Merchandising Technologies, and Aerospace & Electronics businesses are
expected to be approximately $8 million, increasing to an annual
run-rate of approximately $30 million by the end of 2020. Net pre-tax
charges associated with these repositioning activities are expected to
be approximately $30 million through 2020, including the $13 million net
charge in the fourth quarter of 2017 and $11 million expected during
2018.
Raising 2018 Guidance
On December 5, 2017, Crane Co. introduced preliminary 2018 full year
earnings guidance of $4.85-$5.05 per diluted share, excluding any
potential impact from the then-pending Crane Currency acquisition.
(Please see the attached Non-GAAP Financial Measures tables.)
We now expect 2018 full year GAAP EPS of $4.65-$4.85. Excluding Special
Items, we expect 2018 full year EPS of $5.35-$5.55. Guidance assumes
core sales growth of +2% to +4%, a modest benefit from favorable foreign
exchange, and approximately $400 million of sales contribution from the
Crane Currency acquisition.
Full year 2018 free cash flow (cash provided by operating activities
less capital spending) is expected to be in a range of $220-$250
million, including capital expenditures of approximately $125 million.
Capital expenditures are expected to be elevated in 2018 primarily due
to repositioning activities, further investments enabled by the TCJA,
and investment activity at Crane Currency.
Segment Results
All comparisons detailed in this section refer to operating results for
the fourth quarter 2017 versus the fourth quarter 2016.
Fluid Handling
|
|
|
|
|
|
|
|
|
Fourth Quarter
|
|
Change
|
|
(dollars in millions)
|
|
2017
|
|
2016
|
|
|
|
|
|
|
|
Sales
|
|
$
|
|
|
272
|
|
|
$
|
|
|
240
|
|
|
$
|
|
|
32
|
|
|
|
|
13
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating Profit
|
|
$
|
|
|
20
|
|
|
$
|
|
|
28
|
|
|
$
|
|
|
(8
|
)
|
|
|
|
(27
|
%)
|
|
Operating Profit, before Special Items*
|
|
$
|
|
|
31
|
|
|
$
|
|
|
28
|
|
|
$
|
|
|
3
|
|
|
|
|
12
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Profit Margin
|
|
7.5
|
%
|
|
11.6
|
%
|
|
|
|
|
|
|
|
Profit Margin, before Special Items*
|
|
11.5
|
%
|
|
11.6
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
*Please see the attached Non-GAAP Financial Measures tables
|
|
|
|
|
|
|
Sales increased $32 million, driven by $16 million, or 7%, core growth,
a $6 million, or 2.5%, contribution from net acquisitions, and $10
million, or 4%, of favorable foreign exchange. Operating margin declined
to 7.5%, compared to 11.6% last year, reflecting the impact of
repositioning charges. Excluding Special Items, operating margin was
11.5%, approximately flat compared to 11.6% in 2016. Fluid Handling
order backlog was $262 million at December 31, 2017, compared to $228
million at December 31, 2016.
Payment & Merchandising Technologies
|
|
|
|
|
|
|
|
|
Fourth Quarter
|
|
Change
|
|
(dollars in millions)
|
|
2017
|
|
2016
|
|
|
|
|
|
|
|
Sales
|
|
$
|
|
|
194
|
|
|
$
|
|
|
195
|
|
|
$
|
|
|
—
|
|
|
|
|
—
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating Profit
|
|
$
|
|
|
25
|
|
|
$
|
|
|
38
|
|
|
$
|
|
|
(13
|
)
|
|
|
|
(34
|
%)
|
|
Operating Profit, before Special Items*
|
|
$
|
|
|
38
|
|
|
$
|
|
|
38
|
|
|
$
|
|
|
(1
|
)
|
|
|
|
(2
|
%)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Profit Margin
|
|
13.1
|
%
|
|
19.7
|
%
|
|
|
|
|
|
|
|
Profit Margin, before Special Items*
|
|
19.4
|
%
|
|
19.7
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
*Please see the attached Non-GAAP Financial Measures tables
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Sales were flat, with a $4 million core sales decline approximately
offset by favorable foreign exchange. Operating margin declined to
13.1%, from 19.7% last year, reflecting the impact of repositioning
charges. Excluding Special Items, operating margin of 19.4% declined
slightly from 19.7% last year.
Aerospace & Electronics
|
|
|
|
|
|
|
|
|
Fourth Quarter
|
|
Change
|
|
(dollars in millions)
|
|
2017
|
|
2016
|
|
|
|
|
|
|
|
Sales
|
|
$
|
|
|
185
|
|
|
$
|
|
|
187
|
|
|
$
|
|
|
(2
|
)
|
|
|
|
(1
|
)%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating Profit
|
|
$
|
|
|
55
|
|
|
$
|
|
|
39
|
|
|
$
|
|
|
16
|
|
|
|
|
41
|
%
|
|
Operating Profit, before Special Items*
|
|
$
|
|
|
46
|
|
|
$
|
|
|
39
|
|
|
$
|
|
|
6
|
|
|
|
|
16
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Profit Margin
|
|
29.9
|
%
|
|
21.0
|
%
|
|
|
|
|
|
|
|
Profit Margin, before Special Items*
|
|
24.7
|
%
|
|
21.0
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
*Please see the attached Non-GAAP Financial Measures tables
|
|
|
|
|
|
|
Sales decreased $2 million, or 1%, primarily as a result of unfavorable
comparisons related to shipments for a large military program in the
fourth quarter of 2016. Operating margin increased to 29.9%, from 21.0%
last year, primarily as a result of a gain on the sale of an asset
related to repositioning activities. Excluding Special Items, operating
margin increased 370 basis points to 24.7%, primarily as a result of
strong productivity. Aerospace & Electronics order backlog was $374
million at December 31, 2017, compared to $353 million at December 31,
2016.
Engineered Materials
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fourth Quarter
|
|
Change
|
|
(dollars in millions)
|
|
|
|
|
|
|
|
2017
|
|
2016
|
|
|
|
|
|
|
|
Sales
|
|
|
|
|
|
|
|
$
|
|
|
63
|
|
|
$
|
|
|
60
|
|
|
$
|
|
|
3
|
|
|
|
|
5
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating Profit
|
|
|
|
|
|
|
|
$
|
|
|
10
|
|
|
$
|
|
|
10
|
|
|
$
|
|
|
—
|
|
|
|
|
(4
|
)%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Profit Margin
|
|
|
|
|
|
|
|
15.9
|
%
|
|
17.4
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Sales increased $3 million, or 5%, driven primarily by higher sales to
the Recreational Vehicle market. Operating margin declined 150 basis
points to 15.9%, as the higher volumes and productivity were more than
offset by higher material costs.
Additional Information
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 fourth quarter
financial results on Tuesday, January 30, 2018 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. Slides that accompany the
conference call will be available on 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 hydrocarbon processing, petrochemical, chemical, power
generation, unattended payment, banknote design and production,
automated merchandising, aerospace, electronics, transportation and
other markets. The Company has four business segments: Fluid Handling,
Payment & Merchandising Technologies, Aerospace & Electronics and
Engineered Materials. Crane has approximately 12,000 employees in the
Americas, Europe, the Middle East, 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, 2016 and subsequent reports filed with
the Securities and Exchange Commission.
(CR-E)
(Financial Tables Follow)
|
|
|
|
|
|
|
|
CRANE CO.
|
|
Income Statement Data
|
|
(in millions, except per share data)
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
|
|
Twelve Months Ended
|
|
|
|
|
December 31,
|
|
December 31,
|
|
|
|
|
|
|
2017
|
|
|
|
2016
|
|
|
|
2017
|
|
|
|
2016
|
|
|
Net Sales:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fluid Handling
|
|
$
|
|
272.2
|
|
|
$
|
|
240.4
|
|
|
$
|
|
1,042.5
|
|
|
$
|
|
999.5
|
|
|
|
Payment & Merchandising Technologies
|
|
|
|
194.4
|
|
|
|
|
194.6
|
|
|
|
|
776.7
|
|
|
|
|
745.8
|
|
|
|
Aerospace & Electronics
|
|
|
|
184.9
|
|
|
|
|
186.5
|
|
|
|
|
691.4
|
|
|
|
|
745.7
|
|
|
|
Engineered Materials
|
|
|
|
62.7
|
|
|
|
|
59.9
|
|
|
|
|
275.4
|
|
|
|
|
257.0
|
|
|
|
Total Net Sales
|
|
$
|
|
714.2
|
|
|
$
|
|
681.4
|
|
|
$
|
|
2,786.0
|
|
|
$
|
|
2,748.0
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating Profit (Loss):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fluid Handling
|
|
$
|
|
20.4
|
|
|
$
|
|
28.0
|
|
|
$
|
|
111.8
|
|
|
$
|
|
119.5
|
|
|
|
Payment & Merchandising Technologies
|
|
|
|
25.4
|
|
|
|
|
38.4
|
|
|
|
|
148.5
|
|
|
|
|
135.5
|
|
|
|
Aerospace & Electronics
|
|
|
|
55.4
|
|
|
|
|
39.2
|
|
|
|
|
160.2
|
|
|
|
|
149.8
|
|
|
|
Engineered Materials
|
|
|
|
10.0
|
|
|
|
|
10.4
|
|
|
|
|
49.5
|
|
|
|
|
49.0
|
|
|
|
Corporate
|
|
|
|
(20.3
|
)
|
|
|
|
(15.2
|
)
|
|
|
|
(68.1
|
)
|
|
|
|
(61.1
|
)
|
*
|
|
Asbestos Provision
|
|
|
|
—
|
|
|
|
|
(192.4
|
)
|
|
|
|
—
|
|
|
|
|
(192.4
|
)
|
|
|
Total Operating Profit (Loss)
|
|
|
|
90.9
|
|
|
|
|
(91.6
|
)
|
|
|
|
401.9
|
|
|
|
|
200.3
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest Income
|
|
|
|
0.7
|
|
|
|
|
0.5
|
|
|
|
|
2.5
|
|
|
|
|
1.9
|
|
|
|
Interest Expense
|
|
|
|
(8.8
|
)
|
|
|
|
(9.0
|
)
|
|
|
|
(36.1
|
)
|
|
|
|
(36.5
|
)
|
|
|
Miscellaneous- Net
|
|
|
|
0.1
|
|
|
|
|
(1.1
|
)
|
|
|
|
(0.8
|
)
|
|
|
|
(1.6
|
)
|
|
|
Income (Loss) Before Income Taxes
|
|
|
|
82.9
|
|
|
|
|
(101.2
|
)
|
|
|
|
367.5
|
|
|
|
|
164.1
|
|
|
|
Provision for (Benefit from) Income Taxes
|
|
|
|
111.4
|
|
|
|
|
(37.6
|
)
|
|
|
|
195.0
|
|
|
|
|
40.3
|
|
|
|
Net (loss) income before allocation to noncontrolling interests
|
|
|
|
(28.5
|
)
|
|
|
|
(63.6
|
)
|
|
|
|
172.5
|
|
|
|
|
123.8
|
|
|
|
Less: Noncontrolling interest in subsidiaries' earnings
|
|
|
|
0.2
|
|
|
|
|
0.4
|
|
|
|
|
0.7
|
|
|
|
|
1.0
|
|
|
|
Net (loss) income attributable to common shareholders
|
|
$
|
|
(28.7
|
)
|
|
$
|
|
(64.0
|
)
|
|
$
|
|
171.8
|
|
|
$
|
|
122.8
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Share Data:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Loss) Earnings per Diluted Share
|
|
$
|
|
(0.48
|
)
|
|
$
|
|
(1.09
|
)
|
|
$
|
|
2.84
|
|
|
$
|
|
2.07
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average Diluted Shares Outstanding
|
|
|
|
59.4
|
|
|
|
|
58.8
|
|
|
|
|
60.4
|
|
|
|
|
59.3
|
|
|
|
Average Basic Shares Outstanding
|
|
|
|
59.4
|
|
|
|
|
58.8
|
|
|
|
|
59.4
|
|
|
|
|
58.5
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Supplemental Data:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of Sales
|
|
$
|
|
455.6
|
|
|
$
|
|
433.7
|
|
|
$
|
|
1,770.9
|
|
|
$
|
|
1,758.3
|
|
|
|
Asbestos Provision
|
|
|
|
—
|
|
|
|
|
192.4
|
|
|
|
|
—
|
|
|
|
|
192.4
|
|
|
|
Selling, General & Administrative
|
|
|
|
150.0
|
|
|
|
|
146.9
|
|
|
|
|
592.4
|
|
|
|
|
597.0
|
|
*
|
|
Transaction Related Charges (see non-GAAP measures)
|
|
|
|
4.7
|
|
|
|
|
—
|
|
|
|
|
7.8
|
|
|
|
|
—
|
|
|
|
Repositioning Charges, net of gain on property sale (see non-GAAP
measures)
|
|
|
|
13.0
|
|
|
|
|
—
|
|
|
|
|
13.0
|
|
|
|
|
—
|
|
|
|
Depreciation and Amortization **
|
|
|
|
18.7
|
|
|
|
|
16.6
|
|
|
|
|
72.7
|
|
|
|
|
67.4
|
|
|
|
Stock-Based Compensation Expense **
|
|
|
|
5.3
|
|
|
|
|
4.9
|
|
|
|
|
21.8
|
|
|
|
|
21.7
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
* Includes a $5 million legal settlement.
|
|
|
|
|
** Amount included within cost of sales and selling, general &
administrative costs.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CRANE CO.
|
|
Condensed Balance Sheets
|
|
(in millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
December 31,
2017
|
|
December 31,
2016
|
|
ASSETS
|
|
|
|
|
|
|
|
Current Assets
|
|
|
|
|
|
|
|
Cash and Cash Equivalents
|
|
|
|
$
|
706.2
|
|
|
$
|
509.7
|
|
Accounts Receivable, net
|
|
|
|
418.4
|
|
|
396.4
|
|
Current Insurance Receivable - Asbestos
|
|
|
|
25.0
|
|
|
18.0
|
|
Inventories, net
|
|
|
|
349.3
|
|
|
342.5
|
|
Other Current Assets
|
|
|
|
19.6
|
|
|
49.1
|
|
Total Current Assets
|
|
|
|
1,518.5
|
|
|
1,315.7
|
|
|
|
|
|
|
|
|
|
Property, Plant and Equipment, net
|
|
|
|
282.4
|
|
|
278.9
|
|
Long-Term Insurance Receivable - Asbestos
|
|
|
|
90.1
|
|
|
125.2
|
|
Other Assets
|
|
|
|
495.6
|
|
|
559.0
|
|
Goodwill
|
|
|
|
1,206.9
|
|
|
1,149.2
|
|
|
|
|
|
|
|
|
|
Total Assets
|
|
|
|
$
|
3,593.5
|
|
|
$
|
3,428.0
|
|
|
|
|
|
|
|
|
|
LIABILITIES AND EQUITY
|
|
|
|
|
|
|
|
Current Liabilities
|
|
|
|
|
|
|
|
Notes Payable and Current Maturities of Long-Term Debt
|
|
|
|
$
|
249.4
|
|
|
$
|
—
|
|
Accounts Payable
|
|
|
|
247.4
|
|
|
223.2
|
|
Current Asbestos Liability
|
|
|
|
85.0
|
|
|
71.0
|
|
Accrued Liabilities
|
|
|
|
252.1
|
|
|
223.1
|
|
Income Taxes
|
|
|
|
3.6
|
|
|
3.5
|
|
Total Current Liabilities
|
|
|
|
837.5
|
|
|
520.8
|
|
|
|
|
|
|
|
|
|
Long-Term Debt
|
|
|
|
494.1
|
|
|
745.3
|
|
Long-Term Deferred Tax Liability
|
|
|
|
44.9
|
|
|
42.4
|
|
Long-Term Asbestos Liability
|
|
|
|
520.3
|
|
|
624.9
|
|
Other Liabilities
|
|
|
|
348.2
|
|
|
348.9
|
|
|
|
|
|
|
|
|
|
Total Equity
|
|
|
|
1,348.5
|
|
|
1,145.7
|
|
|
|
|
|
|
|
|
|
Total Liabilities and Equity
|
|
|
|
$
|
3,593.5
|
|
|
$
|
3,428.0
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CRANE CO.
|
|
Condensed Statements of Cash Flows
|
|
(in millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
December 31,
|
|
Twelve Months Ended
December 31,
|
|
|
|
|
|
2017
|
|
2016
|
|
2017
|
|
2016
|
|
Operating Activities:
|
|
|
|
|
|
|
|
|
|
|
|
Net (loss) income attributable to common shareholders
|
|
|
|
$
|
(28.7
|
)
|
|
$
|
(64.0
|
)
|
|
$
|
171.8
|
|
|
$
|
122.8
|
|
|
Noncontrolling interest in subsidiaries' earnings
|
|
|
|
0.2
|
|
|
0.4
|
|
|
0.7
|
|
|
1.0
|
|
|
Net (loss) income before allocations to noncontrolling interests
|
|
|
|
(28.5
|
)
|
|
(63.6
|
)
|
|
172.5
|
|
|
123.8
|
|
|
Asbestos Provision
|
|
|
|
—
|
|
|
192.4
|
|
|
—
|
|
|
192.4
|
|
|
Gain on deconsolidation of joint venture
|
|
|
|
(1.0
|
)
|
|
—
|
|
|
(1.0
|
)
|
|
—
|
|
|
Gain on sale of property related to facility consolidation
|
|
|
|
(11.1
|
)
|
|
—
|
|
|
(11.1
|
)
|
|
—
|
|
|
Depreciation and amortization
|
|
|
|
18.7
|
|
|
16.6
|
|
|
72.7
|
|
|
67.4
|
|
|
Stock-based compensation expense
|
|
|
|
5.3
|
|
|
4.9
|
|
|
21.8
|
|
|
21.7
|
|
|
Defined benefit plans and postretirement credit
|
|
|
|
(2.2
|
)
|
|
(1.8
|
)
|
|
(8.5
|
)
|
|
(9.1
|
)
|
|
Deferred income taxes
|
|
|
|
88.3
|
|
|
(41.2
|
)
|
|
104.3
|
|
|
(25.1
|
)
|
|
Cash provided by operating working capital
|
|
|
|
92.0
|
|
|
61.4
|
|
|
54.0
|
|
|
27.0
|
|
|
Defined benefit plans and postretirement contributions
|
|
|
|
(3.3
|
)
|
|
(2.4
|
)
|
|
(13.2
|
)
|
|
(8.8
|
)
|
|
Environmental payments, net of reimbursements
|
|
|
|
(1.9
|
)
|
|
(3.4
|
)
|
|
(6.3
|
)
|
|
(11.6
|
)
|
|
Other
|
|
|
|
2.8
|
|
|
1.3
|
|
|
(5.2
|
)
|
|
(3.6
|
)
|
|
Subtotal
|
|
|
|
159.1
|
|
|
164.2
|
|
|
380.0
|
|
|
374.1
|
|
|
Asbestos related payments, net of insurance recoveries
|
|
|
|
(15.7
|
)
|
|
(14.5
|
)
|
|
(62.5
|
)
|
|
(56.0
|
)
|
|
Total provided by operating activities
|
|
|
|
143.4
|
|
|
149.7
|
|
|
317.5
|
|
|
318.1
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Investing Activities:
|
|
|
|
|
|
|
|
|
|
|
|
Capital expenditures
|
|
|
|
(14.7
|
)
|
|
(13.0
|
)
|
|
(49.0
|
)
|
|
(51.5
|
)
|
|
Proceeds from disposition of capital assets
|
|
|
|
22.3
|
|
|
0.1
|
|
|
22.3
|
|
|
0.9
|
|
|
Impact of deconsolidation of joint ventures
|
|
|
|
(5.2
|
)
|
|
—
|
|
|
(5.2
|
)
|
|
—
|
|
|
Payments for acquisitions, net of cash acquired
|
|
|
|
—
|
|
|
—
|
|
|
(54.8
|
)
|
|
—
|
|
|
Total provided by (used for) investing activities
|
|
|
|
2.4
|
|
|
(12.9
|
)
|
|
(86.7
|
)
|
|
(50.6
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Financing Activities:
|
|
|
|
|
|
|
|
|
|
|
|
Dividends paid
|
|
|
|
(19.6
|
)
|
|
(19.4
|
)
|
|
(78.4
|
)
|
|
(77.2
|
)
|
|
Reacquisition of shares on open market
|
|
|
|
—
|
|
|
—
|
|
|
(25.0
|
)
|
|
—
|
|
|
Stock options exercised - net of shares reacquired
|
|
|
|
4.5
|
|
|
16.8
|
|
|
25.2
|
|
|
26.4
|
|
|
Debt issuance costs
|
|
|
|
(2.6
|
)
|
|
—
|
|
|
(2.6
|
)
|
|
—
|
|
|
Repayment of commercial paper
|
|
|
|
—
|
|
|
(34.0
|
)
|
|
—
|
|
|
(49.6
|
)
|
|
Total used for financing activities
|
|
|
|
(17.7
|
)
|
|
(36.6
|
)
|
|
(80.8
|
)
|
|
(100.4
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Effect of exchange rate on cash and cash equivalents
|
|
|
|
5.9
|
|
|
(26.8
|
)
|
|
46.5
|
|
|
(20.9
|
)
|
|
Increase in cash and cash equivalents
|
|
|
|
134.0
|
|
|
73.4
|
|
|
196.5
|
|
|
146.2
|
|
|
Cash and cash equivalents at beginning of period
|
|
|
|
572.2
|
|
|
436.3
|
|
|
509.7
|
|
|
363.5
|
|
|
Cash and cash equivalents at end of period
|
|
|
|
$
|
706.2
|
|
|
$
|
509.7
|
|
|
$
|
706.2
|
|
|
$
|
509.7
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CRANE CO.
|
|
Order Backlog
|
|
(in millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
December 31,
2017
|
|
|
September 30,
2017
|
|
|
June 30,
2017
|
|
|
March 31,
2017
|
|
December 31,
2016
|
|
Fluid Handling
|
|
$
|
262.1
|
|
*
|
|
$
|
268.8
|
|
*
|
|
$
|
|
|
|
|
258.9
|
|
*
|
|
$
|
|
|
|
|
249.8
|
|
|
$
|
228.3
|
|
Payment & Merchandising Technologies
|
|
76.4
|
|
**
|
|
87.6
|
|
**
|
|
87.0
|
|
**
|
|
85.8
|
|
|
94.0
|
|
Aerospace & Electronics
|
|
373.6
|
|
|
|
348.4
|
|
|
|
328.2
|
|
|
|
352.4
|
|
|
353.4
|
|
Engineered Materials
|
|
13.6
|
|
|
|
13.9
|
|
|
|
14.9
|
|
|
|
17.8
|
|
|
15.7
|
|
Total Backlog
|
|
$
|
725.7
|
|
|
|
$
|
718.7
|
|
|
|
$
|
|
|
|
|
689.0
|
|
|
|
$
|
|
|
|
|
705.8
|
|
|
$
|
691.4
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
* Includes $3.4 million, $3.5 million and $4.1 million as of each of
December 31, 2017, September 30, 2017 and June 30, 2017,
respectively, of backlog pertaining to the Westlock business
acquired in April 2017.
|
|
|
|
** Includes $0.2 million, $0.2 million and $0.3 million as of each
of December 31, 2017, September 30, 2017 and June 30, 2017,
respectively, of backlog pertaining to the Microtronic business
acquired in June 2017.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CRANE CO.
|
|
Non-GAAP Financial Measures
|
|
(in millions, except per share data)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
December 31,
|
|
Twelve Months Ended
December 31,
|
|
Percent
Change
December
31, 2017
|
|
Percent
Change
December
31, 2017
|
|
|
|
2017
|
|
2016
|
|
2017
|
|
2016
|
|
Three
Months
|
|
Twelve
Months
|
|
INCOME ITEMS
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Sales
|
|
$
|
714.2
|
|
|
$
|
681.4
|
|
|
$
|
2,786.0
|
|
|
$
|
2,748.0
|
|
|
4.8
|
%
|
|
1.4
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating Profit (Loss)
|
|
90.9
|
|
|
(91.6
|
)
|
|
401.9
|
|
|
200.3
|
|
|
(199.2
|
)%
|
|
100.7
|
%
|
|
Percentage of Sales
|
|
12.7
|
%
|
|
(13.4
|
)%
|
|
14.4
|
%
|
|
7.3
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Special Items impacting Operating Profit:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Asbestos provision
|
|
|
|
192.4
|
|
|
|
|
192.4
|
|
|
|
|
|
|
Transaction related charges
|
|
4.7
|
|
|
—
|
|
|
7.8
|
|
|
—
|
|
|
|
|
|
|
Repositioning charges, net of gain on property sale
|
|
13.0
|
|
|
—
|
|
|
13.0
|
|
|
—
|
|
|
|
|
|
|
Legal settlement charge
|
|
—
|
|
|
—
|
|
|
—
|
|
|
5.0
|
|
|
|
|
|
|
Operating Profit before Special Items
|
|
$
|
108.6
|
|
|
$
|
100.8
|
|
|
$
|
422.7
|
|
|
$
|
397.7
|
|
|
7.8
|
%
|
|
6.3
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Percentage of Sales
|
|
15.2
|
%
|
|
14.8
|
%
|
|
15.2
|
%
|
|
14.5
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net (Loss) Income Attributable to Common Shareholders
|
|
$
|
(28.7
|
)
|
|
$
|
(64.0
|
)
|
|
$
|
171.8
|
|
|
$
|
122.8
|
|
|
|
|
|
|
Per Share
|
|
$
|
(0.48
|
)
|
|
$
|
(1.09
|
)
|
|
$
|
2.84
|
|
|
$
|
2.07
|
|
|
(55.6
|
)%
|
|
37.3
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Special Items Impacting Net Income
Attributable to Common Shareholders:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Asbestos provision
|
|
—
|
|
|
125.1
|
|
|
—
|
|
|
125.1
|
|
|
|
|
|
|
Per Share
|
|
|
|
2.13
|
|
|
|
|
2.11
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Transaction related charges - Net of Tax
|
|
4.6
|
|
|
—
|
|
|
6.7
|
|
|
—
|
|
|
|
|
|
|
Per Share
|
|
$
|
0.08
|
|
|
|
|
$
|
0.11
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Repositioning charges, net of gain on property sale - Net of Tax
|
|
8.0
|
|
|
—
|
|
|
8.0
|
|
|
—
|
|
|
|
|
|
|
Per Share
|
|
0.13
|
|
|
|
|
0.13
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Legal settlement charge - Net of Tax
|
|
—
|
|
|
—
|
|
|
—
|
|
|
3.3
|
|
|
|
|
|
|
Per Share
|
|
|
|
|
|
|
|
0.05
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Impact of Tax Law Change
|
|
87.1
|
|
|
—
|
|
|
87.1
|
|
|
—
|
|
|
|
|
|
|
Per Share
|
|
$
|
1.44
|
|
|
|
|
$
|
1.44
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Income Attributable To Common Shareholders Before Special Items
|
|
$
|
71.0
|
|
|
$
|
61.1
|
|
|
$
|
273.6
|
|
|
$
|
251.1
|
|
|
16.1
|
%
|
|
8.9
|
%
|
|
Per Basic Share
|
|
$
|
1.20
|
|
|
$
|
1.04
|
|
|
$
|
4.61
|
|
|
$
|
4.30
|
|
|
14.9
|
%
|
|
7.2
|
%
|
|
Per Diluted Share
|
|
$
|
1.18
|
|
|
$
|
1.02
|
|
|
$
|
4.53
|
|
|
$
|
4.23
|
|
|
|
|
|
|
In the three months ended December 31, 2017 and December 31, 2016,
Average Shares Outstanding excluding the effect of diluted stock
options were used to compute the per share amounts since these
periods were in a loss position. Had Net Income Attributable To
Common Shareholders been reported for these periods, Average Shares
Outstanding would have included the effect of diluted stock options
when computing per share amounts (see chart below).
|
|
|
|
|
|
(in thousands)
|
|
(in thousands)
|
|
Average Basic Shares Outstanding
|
|
59,373
|
|
58,768
|
|
Effect of Diluted Stock Options
|
|
1,041
|
|
991
|
|
Average Shares Outstanding including the effect of Stock Options
|
|
60,414
|
|
59,759
|
|
|
|
|
When considering the effect of dilutive stock options on shares
outstanding, Net Income Attributable To Common Shareholders Before
Special Items is $1.18 per share and $1.02 per share for the three
months ended December 31, 2017 and 2016, respectively.
|
|
|
|
Special Items Impacting Provision for Income
Taxes
|
|
|
|
|
|
|
|
|
|
Provision for Income Taxes - GAAP Basis
|
|
$
|
|
|
111.4
|
|
|
$
|
|
|
(37.6
|
)
|
|
$
|
|
|
195.0
|
|
|
$
|
|
|
40.3
|
|
Tax effect of asbestos provision
|
|
—
|
|
|
67.3
|
|
|
—
|
|
|
67.3
|
|
Tax effect of transaction related charges
|
|
0.1
|
|
|
—
|
|
|
1.1
|
|
|
—
|
|
Tax effect of repositioning charges, net of gain on property sale
|
|
4.9
|
|
|
—
|
|
|
4.9
|
|
|
—
|
|
Tax effect of legal settlement charge
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1.7
|
|
Impact of tax law change
|
|
(87.1
|
)
|
|
—
|
|
|
(87.1
|
)
|
|
—
|
|
Provision for Income Taxes - non-GAAP Basis
|
|
$
|
|
|
29.4
|
|
|
$
|
|
|
29.7
|
|
|
$
|
|
|
113.9
|
|
|
$
|
|
|
109.3
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Segment Information:
|
|
For the three months ended December 31, 2017
|
|
|
|
Fluid
Handling
|
|
Payment &
Merchandising
Technologies
|
|
Aerospace
&
Electronics
|
|
Engineered
Materials
|
|
Corporate
|
|
Total
Company
|
|
Net Sales
|
|
$
|
|
|
272.2
|
|
|
$
|
|
|
194.4
|
|
|
$
|
|
|
184.9
|
|
|
$
|
|
|
62.7
|
|
|
$
|
|
|
—
|
|
|
$
|
|
|
714.2
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating Profit - GAAP
|
|
20.4
|
|
|
25.4
|
|
|
55.4
|
|
|
10.0
|
|
|
(20.3
|
)
|
|
90.9
|
|
|
Transaction related charges
|
|
0.4
|
|
|
0.1
|
|
|
—
|
|
|
—
|
|
|
4.2
|
|
|
4.7
|
|
|
Repositioning charges, net of gain on property sale
|
|
10.6
|
|
|
12.2
|
|
|
(9.8
|
)
|
|
—
|
|
|
—
|
|
|
13.0
|
|
|
Operating Profit before Special Items
|
|
31.4
|
|
|
37.7
|
|
|
45.6
|
|
|
10.0
|
|
|
(16.1
|
)
|
|
108.6
|
|
|
Percentage of Sales
|
|
11.5
|
%
|
|
19.4
|
%
|
|
24.7
|
%
|
|
15.9
|
%
|
|
|
|
15.2
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Segment Information:
|
|
|
|
|
|
|
|
|
|
|
|
For the three months ended December 31, 2016
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fluid
Handling
|
|
Payment &
Merchandising
Technologies
|
|
Aerospace
&
Electronics
|
|
Engineered
Materials
|
|
Corporate
|
|
Total
Company
|
|
Net Sales
|
|
|
|
|
|
|
|
|
|
|
|
$
|
|
|
240.4
|
|
|
$
|
|
|
194.6
|
|
|
$
|
|
|
186.5
|
|
|
$
|
|
|
59.9
|
|
|
$
|
|
|
—
|
|
|
$
|
|
|
681.4
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating Profit - GAAP
|
|
|
|
|
|
|
|
|
|
|
|
28.0
|
|
|
38.4
|
|
|
39.2
|
|
|
10.4
|
|
|
(207.6
|
)
|
|
(91.6
|
)
|
|
Asbestos provision
|
|
|
|
|
|
|
|
|
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
192.4
|
|
|
192.4
|
|
|
Operating Profit before Special Items
|
|
|
|
|
|
|
|
|
|
|
|
28.0
|
|
|
38.4
|
|
|
39.2
|
|
|
10.4
|
|
|
(15.2
|
)
|
|
100.8
|
|
|
Percentage of Sales
|
|
|
|
|
|
|
|
|
|
|
|
11.6
|
%
|
|
19.7
|
%
|
|
21.0
|
%
|
|
17.4
|
%
|
|
|
|
14.8
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CRANE CO.
|
|
Guidance
|
|
(in millions, except per share data)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2018 Full Year Guidance
|
|
2018 Earnings Per Share Guidance
|
|
|
|
|
|
|
|
Low
|
|
High
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings Per Share - GAAP basis
|
|
|
|
|
|
|
|
4.65
|
|
|
4.85
|
|
Repositioning Costs
|
|
|
|
|
|
|
|
0.15
|
|
|
0.15
|
|
Acquisition Integration Costs
|
|
|
|
|
|
|
|
$
|
|
|
|
0.55
|
|
|
$
|
|
|
|
0.55
|
|
Earnings Per Share - Non-GAAP basis
|
|
|
|
|
|
|
|
$
|
|
|
|
5.35
|
|
|
$
|
|
|
|
5.55
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
December 31,
|
|
Twelve Months
Ended
December 31,
|
|
2018 Full Year
Guidance
|
|
|
|
2017
|
|
2016
|
|
2017
|
|
2016
|
|
Low
|
|
High
|
|
CASH FLOW ITEMS
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash Provided by Operating Activities before Asbestos - Related
Payments
|
|
$
|
|
|
159.1
|
|
|
$
|
|
|
164.2
|
|
|
$
|
|
|
380.0
|
|
|
$
|
|
|
374.1
|
|
|
$
|
|
|
405.0
|
|
|
$
|
|
|
435.0
|
|
|
Asbestos Related Payments, Net of Insurance Recoveries
|
|
(15.7
|
)
|
|
(14.5
|
)
|
|
(62.5
|
)
|
|
(56.0
|
)
|
|
(60.0
|
)
|
|
(60.0
|
)
|
|
Cash Provided by Operating Activities
|
|
143.4
|
|
|
149.7
|
|
|
317.5
|
|
|
318.1
|
|
|
345.0
|
|
|
375.0
|
|
|
Less: Capital Expenditures
|
|
(14.7
|
)
|
|
(13.0
|
)
|
|
(49.0
|
)
|
|
(51.5
|
)
|
|
(125.0
|
)
|
|
(125.0
|
)
|
|
Free Cash Flow
|
|
$
|
|
|
128.7
|
|
|
$
|
|
|
136.7
|
|
|
$
|
|
|
268.5
|
|
|
$
|
|
|
266.6
|
|
|
$
|
|
|
220.0
|
|
|
$
|
|
|
250.0
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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.
|
|
|
Crane Co.
Jason D. Feldman, 203-363-7329
Director, Investor Relations
www.craneco.com