First Quarter 2019 Highlights:
- GAAP earnings per diluted share (EPS) of $1.36 compared to $1.13 in 2018; excluding Special Items, EPS of $1.45 increased 11% compared to last year.
- Sales of $832 million increased 4% compared to 2018, with core sales growth of 6%.
- Reaffirming full-year GAAP EPS guidance of $6.05-$6.25; excluding Special Items, 2019 EPS guidance is $6.25-$6.45.
STAMFORD, Conn.--(BUSINESS WIRE)--Crane Co. (NYSE: CR), a diversified manufacturer of highly engineered
industrial products, reported first quarter 2019 GAAP earnings per
diluted share (EPS) of $1.36, compared to $1.13 per diluted share in the
first quarter of 2018. Excluding Special Items, first quarter 2019 EPS
increased 11% to $1.45, compared to $1.31 in the first quarter of 2018.
(Please see the attached Non-GAAP Financial Measures tables for a
detailed reconciliation of reported results to adjusted measures.)
First quarter 2019 sales were $832 million, an increase of 4% compared
to the first quarter of 2018. The sales increase was comprised of $46
million, or 6%, from core growth and a $7 million, or 1%, benefit from
net acquisitions, partially offset by $20 million, or 3%, of unfavorable
foreign exchange.
First quarter 2019 operating profit was $114 million, an increase of 21%
compared to $94 million in the first quarter of 2018. Operating profit
margin of 13.7% compared to 11.8% last year. Excluding Special Items,
first quarter 2019 operating profit was $120 million, an increase of 12%
compared to $107 million in the first quarter of 2018. Excluding Special
Items, operating profit margin of 14.4% compared to 13.4% last year.
(Please see the attached Non-GAAP Financial Measures tables for a
detailed reconciliation of reported results to adjusted measures.)
Max Mitchell, Crane Co. President and Chief Executive Officer commented:
"We had a strong start to the year, with operating results slightly
better than expected. All of our businesses are performing well, and we
continue to execute on our growth initiatives, as well as productivity
and repositioning activities."
First Quarter 2019 Segment Results
All comparisons detailed in this section refer to operating results for
the first quarter 2019 versus the first quarter 2018.
|
|
|
Fluid Handling
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
First Quarter
|
|
Change
|
|
(dollars in millions)
|
|
|
|
|
|
|
|
2019
|
|
2018
|
|
|
|
|
|
Sales
|
|
|
|
|
|
|
|
$
|
274
|
|
|
$
|
267
|
|
|
$
|
7
|
|
|
3
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating Profit
|
|
|
|
|
|
|
|
$
|
34
|
|
|
$
|
28
|
|
|
$
|
6
|
|
|
21
|
%
|
|
Operating Profit, before Special Items*
|
|
|
|
|
|
|
|
$
|
36
|
|
|
$
|
29
|
|
|
$
|
8
|
|
|
26
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Profit Margin
|
|
|
|
|
|
|
|
12.5
|
%
|
|
10.5
|
%
|
|
|
|
|
|
Profit Margin, before Special Items*
|
|
|
|
|
|
|
|
13.3
|
%
|
|
10.8
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
*Please see the attached Non-GAAP Financial Measures tables
|
|
|
Sales increased $7 million, or 3%, driven by $17 million, or 6%, of core
growth, partially offset by $10 million, or 4%, of unfavorable foreign
exchange. Operating margin increased to 12.5%, compared to 10.5% last
year, primarily reflecting productivity, operating leverage on higher
volumes, and repositioning benefits. Excluding Special Items, operating
margin increased to 13.3%, a 250 basis point increase compared to 10.8%
last year. Fluid Handling order backlog was $285 million at March 31,
2019, $280 million at December 31, 2018, and $281 million at March 31,
2018.
|
|
|
Payment & Merchandising Technologies
|
|
|
|
|
|
|
|
|
|
First Quarter
|
|
Change
|
|
(dollars in millions)
|
|
2019
|
|
2018
|
|
|
|
|
|
Sales
|
|
$
|
304
|
|
|
$
|
292
|
|
|
$
|
11
|
|
|
4
|
%
|
|
|
|
|
|
|
|
|
|
|
|
Operating Profit
|
|
$
|
43
|
|
|
$
|
37
|
|
|
$
|
7
|
|
|
18
|
%
|
|
Operating Profit, before Special Items*
|
|
$
|
47
|
|
|
$
|
48
|
|
|
$
|
(1
|
)
|
|
(3
|
%)
|
|
|
|
|
|
|
|
|
|
|
|
Profit Margin
|
|
14.2
|
%
|
|
12.5
|
%
|
|
|
|
|
|
Profit Margin, before Special Items*
|
|
15.4
|
%
|
|
16.5
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
*Please see the attached Non-GAAP Financial Measures tables
|
|
|
|
|
|
|
|
|
|
|
Sales increased $11 million, or 4%, driven by $14 million, or 5%, of
core growth and a $7 million, or 2%, benefit from net acquisitions,
partially offset by $10 million, or 3%, of unfavorable foreign exchange.
Operating margin improved to 14.2%, from 12.5% last year, primarily
reflecting lower acquisition related expenses, benefits from
repositioning, and operating leverage on higher volumes, partially
offset by unfavorable mix and the timing of certain costs. Excluding
Special Items, operating margins of 15.4% declined from 16.5% last year,
primarily reflecting unfavorable mix and the timing of certain costs,
partially offset by operating leverage on higher volumes.
|
|
|
Aerospace & Electronics
|
|
|
|
|
|
|
|
|
|
First Quarter
|
|
Change
|
|
(dollars in millions)
|
|
2019
|
|
2018
|
|
|
|
|
|
Sales
|
|
$
|
195
|
|
|
$
|
170
|
|
|
$
|
24
|
|
|
14
|
%
|
|
|
|
|
|
|
|
|
|
|
|
Operating Profit
|
|
$
|
45
|
|
|
$
|
34
|
|
|
$
|
11
|
|
|
31
|
%
|
|
Operating Profit, before Special Items*
|
|
$
|
45
|
|
|
$
|
34
|
|
|
$
|
11
|
|
|
32
|
%
|
|
|
|
|
|
|
|
|
|
|
|
Profit Margin
|
|
23.0
|
%
|
|
20.1
|
%
|
|
|
|
|
|
Profit Margin, before Special Items*
|
|
23.3
|
%
|
|
20.2
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
*Please see the attached Non-GAAP Financial Measures tables
|
|
|
Sales increased $24 million, or 14%, driven by higher core sales.
Operating margin improved to 23.0%, from 20.1% last year, primarily
reflecting operating leverage on higher volumes and productivity.
Excluding Special Items, operating margin improved to 23.3%, from 20.2%
last year. Aerospace & Electronics order backlog was $487 million at
March 31, 2019, $447 million at December 31, 2018, and $381 million at
March 31, 2018.
|
|
|
Engineered Materials
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
First Quarter
|
|
Change
|
|
(dollars in millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
2019
|
|
2018
|
|
|
|
|
|
Sales
|
|
|
|
|
|
|
|
|
|
|
|
|
$
|
60
|
|
|
$
|
70
|
|
|
$
|
(10
|
)
|
|
(14
|
%)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating Profit
|
|
|
|
|
|
|
|
|
|
|
|
|
$
|
9
|
|
|
$
|
12
|
|
|
$
|
(3
|
)
|
|
(24
|
%)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Profit Margin
|
|
|
|
|
|
|
|
|
|
|
|
|
15.8
|
%
|
|
17.8
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Sales decreased $10 million, or 14%, driven primarily by lower sales to
Recreational Vehicle customers. Operating margin declined to 15.8%, from
17.8%, primarily reflecting lower volumes.
Reaffirming Full Year 2019 Guidance
We are reaffirming our full year 2019 GAAP EPS guidance in a range of
$6.05-$6.25. Excluding Special Items, full year 2019 EPS guidance is
$6.25-$6.45. Sales for 2019 are expected to be approximately $3.3
billion, reflecting a slight decline in core sales and an unfavorable
foreign exchange impact of approximately 2%. Full year 2019 free cash
flow (cash provided by operating activities less capital spending) is
expected to be in a range of $335 million to $365 million. (Please see
the attached Non-GAAP Financial Measures tables.)
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 first quarter
financial results on Tuesday, April 30, 2019 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 under Investors, Events &
Presentations. 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 Co. provides products and solutions to
customers in the chemicals, oil & gas, power, automated payment
solutions, banknote design and production and aerospace & defense
markets, along with a wide range of general industrial and consumer
related end markets. The Company has four business segments: Fluid
Handling, Payment & Merchandising Technologies, Aerospace & Electronics
and Engineered Materials. Crane Co. 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 are based on the management’s current beliefs, expectations,
plans, assumptions and objectives regarding Crane Co.’s future financial
performance and are subject to significant risks and uncertainties. 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 these forward-looking
statements. Such factors are detailed in the Company’s Annual
Report on Form 10-K for the fiscal year ended December 31, 2018 and
subsequent reports filed with the Securities and Exchange Commission.
Such reports are available on the Securities Exchange Commission’s
website (
www.sec.gov
).
Crane Co. does not undertake to update any forward-looking statements.
(Financial Tables Follow)
|
|
|
CRANE CO.
|
|
Income Statement Data
|
|
(in millions, except per share data)
|
|
|
|
|
|
Three Months Ended
|
|
|
|
March 31,
|
|
|
|
|
2019
|
|
|
2018
|
|
Net sales:
|
|
|
|
|
|
|
|
Fluid Handling
|
|
$
|
273.7
|
|
|
$
|
266.6
|
|
|
Payment & Merchandising Technologies
|
|
|
303.8
|
|
|
|
292.4
|
|
|
Aerospace & Electronics
|
|
|
194.6
|
|
|
|
170.4
|
|
|
Engineered Materials
|
|
|
59.6
|
|
|
|
69.7
|
|
|
Total net sales
|
|
$
|
831.7
|
|
|
$
|
799.1
|
|
|
|
|
|
|
|
|
|
|
Operating profit:
|
|
|
|
|
|
|
|
Fluid Handling
|
|
$
|
34.1
|
|
|
$
|
28.1
|
|
|
Payment & Merchandising Technologies
|
|
|
43.2
|
|
|
|
36.5
|
|
|
Aerospace & Electronics
|
|
|
44.8
|
|
|
|
34.2
|
|
|
Engineered Materials
|
|
|
9.4
|
|
|
|
12.4
|
|
|
Corporate
|
|
|
(17.8
|
)
|
|
|
(16.9
|
)
|
|
Total operating profit
|
|
|
113.7
|
|
|
|
94.3
|
|
|
|
|
|
|
|
|
|
|
Interest income
|
|
|
0.6
|
|
|
|
0.8
|
|
|
Interest expense
|
|
|
(11.9
|
)
|
|
|
(14.6
|
)
|
|
Miscellaneous, Net
|
|
|
2.0
|
|
|
|
3.9
|
|
|
Income before income taxes
|
|
|
104.4
|
|
|
|
84.4
|
|
|
Provision for income taxes
|
|
|
21.9
|
|
|
|
15.7
|
|
|
Net income before allocation to noncontrolling interests
|
|
|
82.5
|
|
|
|
68.7
|
|
|
Less: Noncontrolling interest in subsidiaries' earnings
|
|
|
0.1
|
|
|
|
—
|
|
|
Net income attributable to common shareholders
|
|
$
|
82.4
|
|
|
$
|
68.7
|
|
|
|
|
|
|
|
|
|
|
Share Data:
|
|
|
|
|
|
|
|
Earnings per diluted share
|
|
$
|
1.36
|
|
|
$
|
1.13
|
|
|
|
|
|
|
|
|
|
|
Average diluted shares outstanding
|
|
|
60.7
|
|
|
|
61.0
|
|
|
Average basic shares outstanding
|
|
|
59.8
|
|
|
|
59.7
|
|
|
|
|
|
|
|
|
|
|
Supplemental Data:
|
|
|
|
|
|
|
|
Cost of Sales
|
|
$
|
528.0
|
|
|
$
|
521.2
|
|
|
Selling, General & Administrative
|
|
|
190.0
|
|
|
|
177.6
|
|
|
Acquisition & Integration Related Charges *
|
|
|
1.1
|
|
|
|
5.2
|
|
|
Repositioning Related charges *
|
|
|
5.3
|
|
|
|
0.8
|
|
|
Depreciation and Amortization *
|
|
|
27.7
|
|
|
|
27.9
|
|
|
Stock-Based Compensation Expense *
|
|
|
5.5
|
|
|
|
5.6
|
|
|
|
|
|
|
|
|
|
|
* Amount included within cost of sales and selling, general &
administrative costs.
|
|
|
|
|
|
CRANE CO.
|
|
Condensed Balance Sheets
|
|
(in millions)
|
|
|
|
|
|
|
|
|
|
March 31,
2019
|
|
December 31,
2018
|
|
ASSETS
|
|
|
|
|
|
Current assets
|
|
|
|
|
|
Cash and cash equivalents
|
|
$
|
256.8
|
|
|
$
|
343.4
|
|
Accounts receivable, net
|
|
573.8
|
|
|
515.8
|
|
Current insurance receivable - asbestos
|
|
16.0
|
|
|
16.0
|
|
Inventories, net
|
|
440.6
|
|
|
411.5
|
|
Other current assets
|
|
84.1
|
|
|
76.2
|
|
Total current assets
|
|
1,371.3
|
|
|
1,362.9
|
|
|
|
|
|
|
|
Property, plant and equipment, net
|
|
595.8
|
|
|
599.1
|
|
Long-term insurance receivable - asbestos
|
|
71.9
|
|
|
75.0
|
|
Other assets
|
|
691.7
|
|
|
602.0
|
|
Goodwill
|
|
1,411.6
|
|
|
1,403.7
|
|
|
|
|
|
|
|
Total assets
|
|
$
|
4,142.3
|
|
|
$
|
4,042.7
|
|
|
|
|
|
|
|
LIABILITIES AND EQUITY
|
|
|
|
|
|
Current liabilities
|
|
|
|
|
|
Notes payable and current maturities of long-term debt
|
|
$
|
63.1
|
|
|
$
|
6.9
|
|
Accounts payable
|
|
263.2
|
|
|
329.2
|
|
Current asbestos liability
|
|
66.0
|
|
|
66.0
|
|
Accrued liabilities
|
|
310.3
|
|
|
337.1
|
|
Income taxes
|
|
1.1
|
|
|
1.0
|
|
Total current liabilities
|
|
703.7
|
|
|
740.2
|
|
|
|
|
|
|
|
Long-term debt
|
|
940.2
|
|
|
942.3
|
|
Long-term deferred tax liability
|
|
53.7
|
|
|
53.2
|
|
Long-term asbestos liability
|
|
438.5
|
|
|
451.3
|
|
Other liabilities
|
|
413.2
|
|
|
328.6
|
|
|
|
|
|
|
|
Total equity
|
|
1,593.0
|
|
|
1,527.1
|
|
|
|
|
|
|
|
Total liabilities and equity
|
|
$
|
4,142.3
|
|
|
$
|
4,042.7
|
|
|
|
|
|
|
|
|
|
|
|
|
CRANE CO.
|
|
Condensed Statements of Cash Flows
|
|
(in millions)
|
|
|
|
|
|
|
|
Three Months Ended
March 31,
|
|
|
|
2019
|
|
2018
|
|
Operating activities:
|
|
|
|
|
|
Net income attributable to common shareholders
|
|
$
|
82.4
|
|
|
$
|
68.7
|
|
|
Noncontrolling interest in subsidiaries' earnings
|
|
0.1
|
|
|
—
|
|
|
Net income before allocations to noncontrolling interests
|
|
82.5
|
|
|
68.7
|
|
|
Loss on deconsolidation of joint venture
|
|
1.2
|
|
|
—
|
|
|
Depreciation and amortization
|
|
27.7
|
|
|
27.9
|
|
|
Stock-based compensation expense
|
|
5.5
|
|
|
5.6
|
|
|
Defined benefit plans and postretirement credit
|
|
(2.0
|
)
|
|
(3.9
|
)
|
|
Deferred income taxes
|
|
5.4
|
|
|
12.7
|
|
|
Cash used for operating working capital
|
|
(203.4
|
)
|
|
(29.5
|
)
|
|
Defined benefit plans and postretirement contributions
|
|
(4.3
|
)
|
|
(4.5
|
)
|
|
Environmental payments, net of reimbursements
|
|
(1.6
|
)
|
|
(2.3
|
)
|
|
Other
|
|
(1.7
|
)
|
|
2.4
|
|
|
Subtotal
|
|
(90.7
|
)
|
|
77.1
|
|
|
Asbestos related payments, net of insurance recoveries
|
|
(9.7
|
)
|
|
(2.9
|
)
|
|
Total (used for) provided by operating activities
|
|
(100.4
|
)
|
|
74.2
|
|
|
|
|
|
|
|
|
Investing activities:
|
|
|
|
|
|
Capital expenditures
|
|
(19.8
|
)
|
|
(27.5
|
)
|
|
Proceeds from disposition of capital assets
|
|
—
|
|
|
0.3
|
|
|
Impact of deconsolidation of joint venture
|
|
(0.2
|
)
|
|
—
|
|
|
Payments for acquisitions, net of cash acquired
|
|
—
|
|
|
(672.3
|
)
|
|
Total used for investing activities
|
|
(20.0
|
)
|
|
(699.5
|
)
|
|
|
|
|
|
|
|
Financing activities:
|
|
|
|
|
|
Dividends paid
|
|
(23.4
|
)
|
|
(20.9
|
)
|
|
Stock options exercised, net of shares reacquired
|
|
(0.4
|
)
|
|
4.5
|
|
|
Debt issuance costs
|
|
—
|
|
|
(5.4
|
)
|
|
Repayment of long-term debt
|
|
(1.4
|
)
|
|
(250.0
|
)
|
|
Repayment of short-term debt
|
|
—
|
|
|
(100.0
|
)
|
|
Proceeds from issuance of long-term debt
|
|
3.0
|
|
|
550.0
|
|
|
Proceeds from issuance of short-term debt
|
|
—
|
|
|
100.0
|
|
|
Proceeds from issuance of commercial paper, net
|
|
55.5
|
|
|
272.7
|
|
|
Total used for financing activities
|
|
33.3
|
|
|
550.9
|
|
|
|
|
|
|
|
|
Effect of exchange rate on cash and cash equivalents
|
|
0.5
|
|
|
10.5
|
|
|
Decrease in cash and cash equivalents
|
|
(86.6
|
)
|
|
(63.9
|
)
|
|
Cash and cash equivalents at beginning of period
|
|
343.4
|
|
|
706.2
|
|
|
Cash and cash equivalents at end of period
|
|
$
|
256.8
|
|
|
$
|
642.3
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CRANE CO.
|
|
Order Backlog
|
|
(in millions)
|
|
|
|
|
|
March 31,
2019
|
|
December 31,
2018
|
|
September 30,
2018
|
|
June 30,
2018
|
|
March 31,
2018
|
|
Fluid Handling
|
|
$
|
284.8
|
|
|
$
|
279.6
|
|
|
$
|
297.7
|
|
|
$
|
291.6
|
|
|
$
|
281.2
|
|
Payment & Merchandising Technologies
|
|
322.2
|
|
|
331.5
|
|
|
359.0
|
|
|
350.5
|
|
|
301.0
|
|
Aerospace & Electronics
|
|
487.1
|
|
|
446.6
|
|
|
445.1
|
|
|
441.3
|
|
|
381.2
|
|
Engineered Materials
|
|
12.3
|
|
|
14.9
|
|
|
10.3
|
|
|
13.2
|
|
|
13.4
|
|
Total Backlog
|
|
$
|
1,106.4
|
|
|
$
|
1,072.6
|
|
|
$
|
1,112.1
|
|
|
$
|
1,096.6
|
|
|
$
|
976.8
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CRANE CO.
|
|
Non-GAAP Financial Measures
|
|
(in millions, except per share data)
|
|
|
|
|
|
Three Months Ended
March 31,
|
|
Percent
Change
March 31,
2019
|
|
|
|
2019
|
|
2018
|
|
Three
Months
|
|
INCOME ITEMS
|
|
|
|
|
|
|
|
|
Net sales
|
|
$
|
831.7
|
|
|
$
|
799.1
|
|
|
4.1
|
%
|
|
|
|
|
|
|
|
|
|
|
Operating profit
|
|
|
113.7
|
|
|
94.3
|
|
|
20.6
|
%
|
|
Percentage of sales
|
|
|
13.7
|
%
|
|
11.8
|
%
|
|
|
|
Special items impacting operating profit:
|
|
|
|
|
|
|
|
|
Inventory step-up and backlog amortization
|
|
|
—
|
|
|
6.6
|
|
|
|
|
Acquisition & Integration Related Charges
|
|
|
1.1
|
|
|
5.2
|
|
|
|
|
Repositioning Related charges
|
|
|
5.3
|
|
|
0.8
|
|
|
|
|
Operating profit before special items
|
|
$
|
120.1
|
|
|
$
|
106.9
|
|
|
12.3
|
%
|
|
Percentage of sales
|
|
|
14.4
|
%
|
|
13.4
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income attributable to common shareholders
|
|
$
|
82.4
|
|
|
$
|
68.7
|
|
|
|
|
Per share
|
|
$
|
1.36
|
|
|
$
|
1.13
|
|
|
20.4
|
%
|
|
|
|
|
|
|
|
|
|
|
Special items impacting net income
attributable to common shareholders:
|
|
|
|
|
|
|
Inventory step-up and Backlog amortization - Net Of Tax
|
|
|
—
|
|
|
5.1
|
|
|
|
|
Per Share
|
|
|
|
|
$
|
0.08
|
|
|
|
|
Acquisition & Integration Related Charges - Net of Tax
|
|
|
0.9
|
|
|
4.0
|
|
|
|
|
Per Share
|
|
$
|
0.01
|
|
|
$
|
0.06
|
|
|
|
|
Repositioning Related charges - Net of Tax
|
|
|
4.2
|
|
|
0.6
|
|
|
|
|
Per Share
|
|
$
|
0.07
|
|
|
$
|
0.01
|
|
|
|
|
Incremental financing costs associated with acquisition - Net of Tax
|
|
|
—
|
|
|
1.4
|
|
|
|
|
Per Share
|
|
|
|
|
$
|
0.02
|
|
|
|
|
Deconsolidation of joint venture - Net of Tax
|
|
|
0.8
|
|
|
—
|
|
|
|
|
Per Share
|
|
$
|
0.01
|
|
|
|
|
|
|
Impact of Tax Law Change
|
|
|
—
|
|
|
0.3
|
|
|
|
|
Per Share
|
|
|
|
|
$
|
0.00
|
|
|
|
|
Net Income Attributable To Common Shareholders Before Special Items
|
|
$
|
88.3
|
|
|
$
|
80.1
|
|
|
10.2
|
%
|
|
Per Diluted Share
|
|
$
|
1.45
|
|
|
$
|
1.31
|
|
|
10.6
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
March 31,
|
|
|
|
2019
|
|
2018
|
|
|
|
|
|
|
|
Provision for income taxes - GAAP Basis
|
|
$
|
21.9
|
|
|
$
|
15.7
|
|
|
Tax effect of inventory step-up and backlog amortization
|
|
—
|
|
|
1.5
|
|
|
Tax effect of acquisition & integration related charges
|
|
0.2
|
|
|
1.2
|
|
|
Tax effect of repositioning related charges
|
|
1.1
|
|
|
0.2
|
|
|
Tax effect of incremental financing costs associated with acquisition
|
|
—
|
|
|
0.4
|
|
|
Tax effect of deconsolidation of joint venture
|
|
0.4
|
|
|
—
|
|
|
Impact of tax law change
|
|
—
|
|
|
(0.3
|
)
|
|
Provision for income taxes - non-GAAP basis
|
|
$
|
23.6
|
|
|
$
|
18.7
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
SEGMENT INFORMATION:
|
|
|
|
|
|
For the three months ended March 31, 2019
|
|
|
|
Fluid
Handling
|
|
Payment &
Merchandising
Technologies
|
|
Aerospace
&
Electronics
|
|
Engineered
Materials
|
|
Corporate
|
|
Total
Company
|
|
Net sales
|
|
$
|
273.7
|
|
|
$
|
303.8
|
|
|
$
|
194.6
|
|
|
$
|
59.6
|
|
|
$
|
—
|
|
|
$
|
831.7
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating Profit - GAAP
|
|
34.1
|
|
|
43.2
|
|
|
44.8
|
|
|
9.4
|
|
|
(17.8
|
)
|
|
113.7
|
|
|
Acquisition & Integration Related Charges
|
|
—
|
|
|
1.1
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1.1
|
|
|
Repositioning Related charges
|
|
2.2
|
|
|
2.6
|
|
|
0.6
|
|
|
—
|
|
|
—
|
|
|
5.3
|
|
|
Operating Profit before Special Items
|
|
36.3
|
|
|
46.9
|
|
|
45.4
|
|
|
9.4
|
|
|
(17.8
|
)
|
|
120.1
|
|
|
Percentage of Sales
|
|
13.3
|
%
|
|
15.4
|
%
|
|
23.3
|
%
|
|
15.8
|
%
|
|
|
|
14.4
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the three months ended March 31, 2018
|
|
|
|
Fluid
Handling
|
|
Payment &
Merchandising
Technologies
|
|
Aerospace
&
Electronics
|
|
Engineered
Materials
|
|
Corporate
|
|
Total
Company
|
|
Net Sales
|
|
$
|
266.6
|
|
|
$
|
292.4
|
|
|
$
|
170.4
|
|
|
$
|
69.7
|
|
|
$
|
—
|
|
|
$
|
799.1
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating Profit - GAAP
|
|
28.1
|
|
|
36.5
|
|
|
34.2
|
|
|
12.4
|
|
|
(16.9
|
)
|
|
94.3
|
|
|
Inventory step-up and backlog amortization
|
|
0.2
|
|
|
6.4
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
6.6
|
|
|
Acquisition & Integration Related Charges
|
|
—
|
|
|
5.2
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
5.2
|
|
|
Repositioning Related charges
|
|
0.4
|
|
|
0.2
|
|
|
0.2
|
|
|
—
|
|
|
—
|
|
|
0.8
|
|
|
Operating Profit before Special Items
|
|
$
|
28.7
|
|
|
$
|
48.3
|
|
|
$
|
34.4
|
|
|
$
|
12.4
|
|
|
$
|
(16.9
|
)
|
|
$
|
106.9
|
|
|
Percentage of Sales
|
|
10.8
|
%
|
|
16.5
|
%
|
|
20.2
|
%
|
|
17.8
|
%
|
|
|
|
13.4
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CRANE CO.
|
|
Guidance
|
|
(in millions, except per share data)
|
|
|
|
|
|
2019 Full Year Guidance
|
|
2019 Earnings Per Share Guidance
|
|
Low
|
|
High
|
|
|
|
|
|
|
|
Earnings Per Share - GAAP basis
|
|
$
|
6.05
|
|
|
$
|
6.25
|
|
Repositioning Costs
|
|
0.13
|
|
|
0.13
|
|
Acquisition Integration Costs
|
|
0.07
|
|
|
0.07
|
|
Earnings Per Share - Non-GAAP basis
|
|
$
|
6.25
|
|
|
$
|
6.45
|
|
|
|
|
|
|
|
|
|
|
|
|
CASH FLOW ITEMS
|
|
|
|
|
|
Three Months Ended
March 31,
|
|
2019 Full Year
Guidance
|
|
|
|
2019
|
|
2018
|
|
Low
|
|
High
|
|
|
|
|
|
|
|
|
|
|
|
Cash Provided by Operating Activities
before Asbestos-Related Payments
|
|
$
|
(90.7
|
)
|
|
$
|
77.1
|
|
|
$
|
475.0
|
|
|
$
|
505.0
|
|
|
Asbestos-related payments, net of insurance recoveries
|
|
(9.7
|
)
|
|
(2.9
|
)
|
|
(50.0
|
)
|
|
(50.0
|
)
|
|
Cash Provided by Operating Activities
|
|
(100.4
|
)
|
|
74.2
|
|
|
425.0
|
|
|
455.0
|
|
|
Less: Capital Expenditures
|
|
(19.8
|
)
|
|
(27.5
|
)
|
|
(90.0
|
)
|
|
(90.0
|
)
|
|
Free Cash Flow
|
|
$
|
(120.2
|
)
|
|
$
|
46.7
|
|
|
$
|
335.0
|
|
|
$
|
365.0
|
|
|
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.
|
|
|
Jason D. Feldman
Director, Investor Relations
203-363-7329
www.craneco.com