Crane Co. (NYSE:CR), a diversified manufacturer of highly engineered industrial products, reported second quarter 2016 GAAP earnings of $1.15 per diluted share, compared to $0.95 per share in the second quarter of 2015. Excluding Special Items, second quarter 2016 earnings per diluted share were $1.21, compared to $1.06 per share in the second quarter of 2015. (Please see the attached Non-GAAP Financial Measures tables.)
Second quarter 2016 sales were $712 million, approximately flat compared to $711 million in the second quarter of 2015. Core sales increased $7 million, or 1%, offset by a $6 million, or 1%, impact from unfavorable foreign exchange.
Operating profit in the second quarter was $103 million, up 14% compared to $90 million in the second quarter of 2015. Excluding Special Items, operating profit was $108 million in the second quarter of 2016, up 9% compared to $99 million in the second quarter of 2015. (Please see the attached Non-GAAP Financial Measures tables.)
The effective tax rate in the second quarter was 27.0%, down from 31.5% last year. The lower rate primarily reflects the resolution of a tax audit during the quarter. Excluding Special Items, the effective tax rate was 27.4%, down from 31.0% last year. (Please see the attached Non-GAAP Financial Measures tables.)
“We are pleased with our second quarter results. We drove strong execution across all segments, order trends were consistent with our expectations, and EPS benefited from a lower tax rate. We are cautiously optimistic about the remainder of 2016 tempered only by continued economic uncertainty, including volatility in foreign exchange and commodity markets. Balancing these factors, we are raising the midpoint of our full-year adjusted EPS guidance range by $0.10,” said Max Mitchell, Crane Co. President and Chief Executive Officer.
Segment Results
All comparisons detailed in this section refer to operating results for the second quarter 2016 versus the second quarter 2015, excluding Special Items.
Fluid Handling
| Second Quarter | Change | |||||||||||||||||||
| (dollars in millions) | 2016 | 2015 | ||||||||||||||||||
| Sales | $ | 266 | $ | 292 | $ | (26 | ) | (9 | )% | |||||||||||
| Operating Profit | $ | 35 | $ | 33 | $ | 3 | 9 | % | ||||||||||||
| Operating Profit, before Special Items* | $ | 35 | $ | 38 | $ | (2 | ) | (6 | )% | |||||||||||
| Profit Margin | 13.3 | % | 11.1 | % | ||||||||||||||||
| Profit Margin, before Special Items* | 13.3 | % | 12.9 | % | ||||||||||||||||
| *Please see the attached Non-GAAP Financial Measures tables | ||||||||||||||||||||
Sales decreased $26 million, driven by a $21 million, or -7%, core sales decline, and $5 million, or -2%, of unfavorable foreign exchange. Operating margin improved to 13.3%, compared to 12.9% last year, primarily reflecting the impact of productivity, repositioning benefits and favorable mix, partially offset by lower volumes, and to a lesser extent, competitive pricing. Fluid Handling order backlog was $246 million at June 30, 2016, compared to $267 million at December 31, 2015 and $287 million at June 30, 2015.
Payment & Merchandising Technologies
| Second Quarter | Change | ||||||||||||||||||||
| (dollars in millions) | 2016 | 2015 | |||||||||||||||||||
| Sales | $ | 193 | $ | 187 | $ | 6 | 3 | % | |||||||||||||
| Operating Profit | $ | 34 | $ | 26 | $ | 8 | 32 | % | |||||||||||||
| Operating Profit, before Special Items* | $ | 34 | $ | 28 | $ | 7 | 23 | % | |||||||||||||
| Profit Margin | 17.9 | % | 14.0 | % | |||||||||||||||||
| Profit Margin, before Special Items* | 17.9 | % | 15.0 | % | |||||||||||||||||
| *Please see the attached Non-GAAP Financial Measures tables | |||||||||||||||||||||
Sales increased $6 million, or 3%, driven by $8 million, or 4%, of core growth, partially offset by a $2 million, or -1%, impact from unfavorable foreign exchange. Operating margin expanded 290 basis points to 17.9%, driven primarily by integration synergies, higher volumes and strong productivity.
Aerospace & Electronics
| Second Quarter | Change | |||||||||||||||||||
| (dollars in millions) | 2016 | 2015 | ||||||||||||||||||
| Sales | $ | 189 | $ | 167 | $ | 22 | 13 | % | ||||||||||||
| Operating Profit | $ | 39 | $ | 32 | $ | 7 | 22 | % | ||||||||||||
| Operating Profit, before Special Items* | $ | 39 | $ | 32 | $ | 6 | 19 | % | ||||||||||||
| Profit Margin | 20.4 | % | 18.9 | % | ||||||||||||||||
| Profit Margin, before Special Items* | 20.4 | % | 19.4 | % | ||||||||||||||||
| *Please see the attached Non-GAAP Financial Measures tables | ||||||||||||||||||||
Sales increased $22 million, driven by a 13% increase in core sales. Operating margin improved 100 basis points to 20.4%, primarily reflecting higher volumes and productivity, partially offset by higher planned engineering spending and unfavorable mix. Aerospace & Electronics order backlog was $436 million at June 30, 2016, compared to $436 million at December 31, 2015 and $448 million at June 30, 2015.
Engineered Materials
| Second Quarter | Change | ||||||||||||||||||
| (dollars in millions) | 2016 | 2015 | |||||||||||||||||
| Sales | $ | 64 | $ | 66 | $ | (1 | ) | (2 | )% | ||||||||||
| Operating Profit | $ | 14 | $ | 12 | $ | 1 | 11 | % | |||||||||||
| Profit Margin | 21.0 | % | 18.5 | % | |||||||||||||||
Sales decreased $1 million, driven by lower sales to the Recreational Vehicle and Transportation markets, partially offset by higher sales to the Building Product market. Operating margin increased 250 basis points to 21.0%, primarily reflecting strong productivity and lower material costs, partially offset by competitive pricing.
Raising 2016 Guidance
The Company is raising its 2016 GAAP EPS guidance to a range of $3.95-$4.15, versus a prior range of $3.85-$4.15. Excluding Special Items, EPS is now expected to be in a range of $4.00-$4.20, from the prior range of $3.85-$4.15. Management continues to expect that sales for 2016 will approximate $2.7 billion, reflecting core sales in a range of -1.5% to +1.5% compared to 2015. Full year 2016 free cash flow (cash provided by operating activities less capital spending) is now expected to be in a range of $195 to $220 million versus prior guidance of $190 to $220 million. (Please see the attached Non-GAAP Financial Measures tables.)
Non-GAAP Items
Special Items in the second quarter of 2016 totaled $3.3 million in net after tax charges, or $0.05 per share, related to a legal settlement of the previously disclosed Huttig matter. Special Items in the second quarter of 2015 included $5 million in after-tax charges, or $0.09 per share, related to repositioning activities, and $1 million, or $0.02 per share, of after-tax restructuring and integration-related charges associated with the MEI acquisition. For additional information, 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 second quarter financial results on Tuesday, July 26, 2016 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, 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 11,000 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, 2015 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 | Six Months Ended | ||||||||||||||||
June 30, | June 30, | ||||||||||||||||
2016 | 2015 | 2016 | 2015 | ||||||||||||||
| Net Sales: | |||||||||||||||||
| Fluid Handling | $ | 265.9 | $ | 291.8 | $ | 513.9 | $ | 567.3 | |||||||||
| Payment & Merchandising Technologies | 192.6 | 186.5 | 364.5 | 358.4 | |||||||||||||
| Aerospace & Electronics | 189.2 | 167.1 | 361.0 | 328.7 | |||||||||||||
| Engineered Materials | 64.5 | 65.8 | 132.8 | 135.5 | |||||||||||||
| Total Net Sales | $ | 712.2 | $ | 711.2 | $ | 1,372.2 | $ | 1,390.0 | |||||||||
| Operating Profit (Loss): | |||||||||||||||||
| Fluid Handling | $ | 35.4 | $ | 32.5 | $ | 60.8 | $ | 66.8 | |||||||||
| Payment & Merchandising Technologies | 34.5 | 26.1 | 62.5 | 47.3 | |||||||||||||
| Aerospace & Electronics | 38.6 | 31.7 | 71.7 | 61.7 | |||||||||||||
| Engineered Materials | 13.5 | 12.2 | 27.2 | 26.4 | |||||||||||||
| Corporate | (19.4 | ) | * | (12.3 | ) | (34.1 | ) | * | (26.1 | ) | |||||||
| Total Operating Profit | 102.6 | 90.2 | 188.1 | 176.2 | |||||||||||||
| Interest Income | 0.5 | 0.5 | 1.0 | 1.0 | |||||||||||||
| Interest Expense | (9.2 | ) | (9.5 | ) | (18.3 | ) | (19.4 | ) | |||||||||
| Miscellaneous- Net | (0.2 | ) | 0.4 | (0.6 | ) | 0.0 | |||||||||||
| Income Before Income Taxes | 93.7 | 81.5 | 170.2 | 157.8 | |||||||||||||
| Provision for Income Taxes | 25.2 | 25.7 | 46.6 | 50.6 | |||||||||||||
| Net income before allocation to noncontrolling interests | 68.4 | 55.9 | 123.6 | 107.2 | |||||||||||||
| Less: Noncontrolling interest in subsidiaries' earnings | 0.2 | 0.1 | 0.3 | 0.4 | |||||||||||||
| Net income attributable to common shareholders | $ | 68.2 | $ | 55.8 | $ | 123.3 | $ | 106.8 | |||||||||
| Share Data: | |||||||||||||||||
| Earnings per Diluted Share | $ | 1.15 | $ | 0.95 | $ | 2.09 | $ | 1.82 | |||||||||
| Average Diluted Shares Outstanding | 59.2 | 58.8 | 59.0 | 58.8 | |||||||||||||
| Average Basic Shares Outstanding | 58.3 | 58.0 | 58.3 | 58.0 | |||||||||||||
Supplemental Data: | |||||||||||||||||
| Cost of Sales | $ | 449.1 | $ | 470.8 | $ | 875.2 | $ | 910.8 | |||||||||
| Selling, General & Administrative | 160.5 | * | 141.5 | 308.9 | * | 289.8 | |||||||||||
| Repositioning Charges (see non-GAAP measures) | - | 7.1 | - | 9.7 | |||||||||||||
| Acquisition Related Charges (see non-GAAP measures) | - | 1.8 | - | 3.6 | |||||||||||||
| Depreciation and Amortization ** | 17.6 | 17.4 | 34.1 | 33.9 | |||||||||||||
| Stock-Based Compensation Expense ** | 5.3 | 5.0 | 11.4 | 10.8 | |||||||||||||
* Includes a $5 million legal settlement charge. | |||||||||||||||||
| ** Amount included within cost of sales and selling, general & administrative costs. | |||||||||||||||||
| CRANE CO. | |||||||||||
| Condensed Balance Sheets | |||||||||||
| (in millions) | |||||||||||
June 30, | December 31, | ||||||||||
2016 | 2015 | ||||||||||
| ASSETS | |||||||||||
| Current Assets | |||||||||||
| Cash and Cash Equivalents | $ | 408.9 | $ | 363.5 | |||||||
| Accounts Receivable, net | 435.2 | 397.6 | |||||||||
| Current Insurance Receivable - Asbestos | 20.5 | 20.5 | |||||||||
| Inventories, net | 389.4 | 376.9 | |||||||||
| Other Current Assets | 54.5 | 45.0 | |||||||||
| Total Current Assets | 1,308.5 | 1,203.5 | |||||||||
| Property, Plant and Equipment, net | 281.7 | 276.0 | |||||||||
| Long-Term Insurance Receivable - Asbestos | 100.6 | 108.7 | |||||||||
| Other Assets | 564.7 | 580.8 | |||||||||
| Goodwill | 1,176.9 | 1,167.9 | |||||||||
| Total Assets | $ | 3,432.4 | $ | 3,336.9 | |||||||
| LIABILITIES AND EQUITY | |||||||||||
| Current Liabilities | |||||||||||
| Notes Payable and Current Maturities of Long-Term Debt | $ | 100.9 | $ | 49.6 | |||||||
| Accounts Payable | 205.9 | 223.3 | |||||||||
| Current Asbestos Liability | 75.0 | 75.0 | |||||||||
| Accrued Liabilities | 215.3 | 218.6 | |||||||||
| Income Taxes | 4.5 | 6.3 | |||||||||
| Total Current Liabilities | 601.6 | 572.8 | |||||||||
| Long-Term Debt | 745.0 | 744.6 | |||||||||
| Long-Term Deferred Tax Liability | 52.5 | 50.0 | |||||||||
| Long-Term Asbestos Liability | 436.7 | 470.5 | |||||||||
| Other Liabilities | 326.8 | 348.1 | |||||||||
| Total Equity | 1,269.8 | 1,150.8 | |||||||||
| Total Liabilities and Equity | $ | 3,432.4 | $ | 3,336.9 | |||||||
| CRANE CO. | |||||||||||||||||||
| Condensed Statements of Cash Flows | |||||||||||||||||||
| (in millions) | |||||||||||||||||||
| Three Months Ended | Six Months Ended | ||||||||||||||||||
| June 30, | June 30, | ||||||||||||||||||
| 2016 | 2015 | 2016 | 2015 | ||||||||||||||||
| Operating Activities: | |||||||||||||||||||
| Net income attributable to common shareholders | $ | 68.2 | $ | 55.8 | $ | 123.3 | $ | 106.8 | |||||||||||
| Noncontrolling interest in subsidiaries' earnings | 0.2 | 0.1 | 0.3 | 0.4 | |||||||||||||||
| Net income before allocations to noncontrolling interests | 68.4 | 55.9 | 123.6 | 107.2 | |||||||||||||||
| Restructuring - Non Cash | - | 1.2 | - | 1.4 | |||||||||||||||
| Depreciation and amortization | 17.6 | 17.4 | 34.1 | 33.9 | |||||||||||||||
| Stock-based compensation expense | 5.3 | 5.0 | 11.4 | 10.8 | |||||||||||||||
| Defined benefit plans and postretirement credit | (2.4 | ) | (2.0 | ) | (4.8 | ) | (3.6 | ) | |||||||||||
| Deferred income taxes | 2.3 | 3.7 | 7.6 | 8.0 | |||||||||||||||
| Cash provided by (used for) operating working capital | 0.9 | 2.4 | (81.1 | ) | (54.7 | ) | |||||||||||||
| Defined benefit plans and postretirement contributions | (2.2 | ) | (5.2 | ) | (4.4 | ) | (8.2 | ) | |||||||||||
| Environmental payments, net of reimbursements | (4.6 | ) | (3.5 | ) | (6.6 | ) | (7.6 | ) | |||||||||||
| Other | (0.6 | ) | (3.0 | ) | (2.3 | ) | (16.4 | ) | |||||||||||
| Subtotal | 84.7 | 71.9 | 77.5 | 70.8 | |||||||||||||||
| Asbestos related payments, net of insurance recoveries | (14.9 | ) | (14.1 | ) | (25.7 | ) | (24.8 | ) | |||||||||||
| Total provided by operating activities | 69.8 | 57.8 | 51.8 | 46.0 | |||||||||||||||
| Investing Activities: | |||||||||||||||||||
| Capital expenditures | (15.6 | ) | (9.9 | ) | (26.6 | ) | (20.1 | ) | |||||||||||
| Proceeds from disposition of capital assets | 0.2 | 0.5 | 0.7 | 1.9 | |||||||||||||||
| Total used for investing activities | (15.4 | ) | (9.4 | ) | (25.9 | ) | (18.2 | ) | |||||||||||
| Financing Activities: | |||||||||||||||||||
| Dividends paid | (19.3 | ) | (19.2 | ) | (38.5 | ) | (38.3 | ) | |||||||||||
| Reacquisition of shares on open market | - | - | - | (25.0 | ) | ||||||||||||||
| Stock options exercised - net of shares reacquired | 3.6 | 0.3 | 2.2 | 7.0 | |||||||||||||||
| Excess tax shortfall from stock-based compensation | - | (1.1 | ) | - | (0.2 | ) | |||||||||||||
| Repayment of credit facility | - | - | - | (100.0 | ) | ||||||||||||||
| Proceeds from issuance (repayment) of commercial paper | 22.8 | (4.8 | ) | 51.3 | 121.9 | ||||||||||||||
| Total provided by (used for) financing activities | 7.1 | (24.8 | ) | 15.0 | (34.6 | ) | |||||||||||||
| Effect of exchange rate on cash and cash equivalents | (6.6 | ) | 5.7 | 4.5 | (13.3 | ) | |||||||||||||
| Increase (decrease) in cash and cash equivalents | 54.9 | 29.4 | 45.4 | (20.0 | ) | ||||||||||||||
| Cash and cash equivalents at beginning of period | 354.0 | 296.9 | 363.5 | 346.3 | |||||||||||||||
| Cash and cash equivalents at end of period | $ | 408.9 | $ | 326.3 | $ | 408.9 | $ | 326.3 | |||||||||||
| CRANE CO. | ||||||||||||||||
| Order Backlog | ||||||||||||||||
| (in millions) | ||||||||||||||||
| June 30, | March 31, | December 31, | September 30, | June 30, | ||||||||||||
| 2016 | 2016 | 2015 | 2015 | 2015 | ||||||||||||
| Fluid Handling | $ | 246.3 | $ | 263.4 | $ | 267.2 | $ | 278.6 | $ | 287.3 | ||||||
| Payment & Merchandising Technologies | 65.8 | 60.4 | 62.6 | 55.5 | 61.1 | |||||||||||
| Aerospace & Electronics | 435.9 | 418.7 | 436.4 | 459.9 | 448.1 | |||||||||||
| Engineered Materials | 15.4 | 16.0 | 15.2 | 13.7 | 15.4 | |||||||||||
| Total Backlog | $ | 763.5 | $ | 758.6 | $ | 781.5 | $ | 807.8 | $ | 811.9 | ||||||
| CRANE CO. | ||||||||||||||||||||||||||||
| Non-GAAP Financial Measures | ||||||||||||||||||||||||||||
| (in millions, except per share data) | ||||||||||||||||||||||||||||
INCOME ITEMS | ||||||||||||||||||||||||||||
| Three Months Ended | Six Months Ended | Percent Change | Percent Change | |||||||||||||||||||||||||
| June 30, | June 30, | June 30, 2016 | June 30, 2016 | |||||||||||||||||||||||||
| 2016 | 2015 | 2016 | 2015 | Three Months | Six Months | |||||||||||||||||||||||
| Net Sales | $ | 712.2 | $ | 711.2 | $ | 1,372.2 | $ | 1,390.0 | 0.1 | % | (1.3 | %) | ||||||||||||||||
| Operating Profit | 102.6 | 90.2 | 188.1 | 176.2 | 13.8 | % | 6.8 | % | ||||||||||||||||||||
| Percentage of Sales | 14.4 | % | 12.7 | % | 13.7 | % | 12.7 | % | ||||||||||||||||||||
Special Items impacting Operating Profit: | ||||||||||||||||||||||||||||
MEI Acquistion related integration charges | - | 1.8 | - | 3.4 | ||||||||||||||||||||||||
MEI Acquistion related restructuring charges | - | - | - | 0.2 | ||||||||||||||||||||||||
| Repositioning charges | - | 7.1 | - | 9.7 | ||||||||||||||||||||||||
| Legal settlement charge | 5.0 | - | 5.0 | - | ||||||||||||||||||||||||
| Operating Profit before Special Items | $ | 107.6 | $ | 99.1 | $ | 193.1 | $ | 189.5 | 8.6 | % | 1.9 | % | ||||||||||||||||
| Percentage of Sales | 15.1 | % | 13.9 | % | 14.1 | % | 13.6 | % | ||||||||||||||||||||
| Net Income Attributable to Common Shareholders | $ | 68.2 | $ | 55.8 | $ | 123.3 | $ | 106.8 | ||||||||||||||||||||
| Per Share | $ | 1.15 | $ | 0.95 | $ | 2.09 | $ | 1.82 | 21.6 | % | 15.0 | % | ||||||||||||||||
Special Items Impacting Net Income Attributable to Common Shareholders: | ||||||||||||||||||||||||||||
| MEI acquisition related integration charges - Net of Tax | - | 1.2 | - | 2.3 | ||||||||||||||||||||||||
| Per Share | $ | 0.02 | $ | 0.04 | ||||||||||||||||||||||||
| MEI acquisition related restructuring charges - Net of Tax | - | - | - | 0.1 | ||||||||||||||||||||||||
| Per Share | $ | 0.00 | ||||||||||||||||||||||||||
| Repositioning charges - Net of Tax | - | 5.4 | - | 7.2 | ||||||||||||||||||||||||
| Per Share | $ | 0.09 | $ | 0.12 | ||||||||||||||||||||||||
| Legal settlement charge - Net of Tax | 3.3 | - | 3.3 | - | ||||||||||||||||||||||||
| Per Share | $ | 0.05 | $ | 0.05 | ||||||||||||||||||||||||
| Net Income Attributable To Common Shareholders Before Special Items | $ | 71.5 | $ | 62.3 | $ | 126.5 | $ | 116.4 | 14.8 | % | 8.7 | % | ||||||||||||||||
| Per Share | $ | 1.21 | $ | 1.06 | $ | 2.14 | $ | 1.98 | 14.1 | % | 8.3 | % | ||||||||||||||||
Special Items Impacting Provision for Income Taxes | ||||||||||||||||||||||||||||
| Provision for Income Taxes - GAAP Basis | $ | 25.2 | $ | 25.7 | $ | 46.6 | $ | 50.6 | ||||||||||||||||||||
| Tax effect of MEI acquisition related integration charges | - | 0.6 | - | 1.1 | ||||||||||||||||||||||||
| Tax effect of MEI acquisition related restructuring charges | - | - | - | - | ||||||||||||||||||||||||
| Tax effect of repositioning charges | - | 1.7 | - | 2.5 | ||||||||||||||||||||||||
| Tax effect of legal settlement charge | 1.8 | - | 1.8 | - | ||||||||||||||||||||||||
| Provision for Income Taxes - non-GAAP Basis | $ | 27.0 | $ | 28.0 | $ | 48.4 | $ | 54.2 | ||||||||||||||||||||
For the three months ended June 30, 2016 | |||||||||||||
Segment Information: | |||||||||||||
| Fluid Handling | Payment & Merchandising Technologies | Aerospace & Electronics | Engineered Materials | Corporate | Total Company | ||||||||
| Net Sales | 265.9 | 192.6 | 189.2 | 64.5 | - | 712.2 | |||||||
| Operating Profit - GAAP | 35.4 | 34.5 | 38.6 | 13.5 | (19.4) | 102.6 | |||||||
| Legal settlement charge | - | - | - | - | 5.0 | 5.0 | |||||||
| Operating Profit before Special Items | 35.4 | 34.5 | 38.6 | 13.5 | (14.4) | 107.6 | |||||||
| Percentage of Sales | 13.3% | 17.9% | 20.4% | 21.0% | 15.1% | ||||||||
For the three months ended June 30, 2015 | |||||||||||||
| Fluid Handling | Payment & Merchandising Technologies | Aerospace & Electronics | Engineered Materials | Corporate | Total Company | ||||||||
| Net Sales | 291.8 | 186.5 | 167.1 | 65.8 | - | 711.2 | |||||||
| Operating Profit - GAAP | 32.5 | 26.1 | 31.7 | 12.2 | (12.3) | 90.2 | |||||||
Acquisition related integration charges | - | 1.8 | - | - | - | 1.8 | |||||||
| Repositioning Charges | 5.1 | - | 0.8 | - | 1.1 | 7.1 | |||||||
| Operating Profit before Special Items | 37.7 | 28.0 | 32.5 | 12.2 | (11.2) | 99.1 | |||||||
| Percentage of Sales | 12.9% | 15.0% | 19.4% | 18.5% | 13.9% | ||||||||
| CRANE CO. | |||||||||||||||||||||||||||
| Guidance | |||||||||||||||||||||||||||
| (in millions, except per share data) | |||||||||||||||||||||||||||
| 2016 Full Year Guidance | |||||||||||||||||||||||||||
| 2016 Earnings Per Share Guidance | Low | High | |||||||||||||||||||||||||
| Earnings Per Share - GAAP basis | $ | 3.95 | $ | 4.15 | |||||||||||||||||||||||
| Legal settlement charge - Net of Tax | 0.05 | 0.05 | |||||||||||||||||||||||||
| Earnings Per Share - Non-GAAP basis | $ | 4.00 | $ | 4.20 | |||||||||||||||||||||||
CASH FLOW ITEMS | |||||||||||||||||||||||||||
| Three Months Ended | Six Months Ended | ||||||||||||||||||||||||||
| June 30, | June 30, | 2016 Full Year Guidance | |||||||||||||||||||||||||
| 2016 | 2015 | 2016 | 2015 | Low | High | ||||||||||||||||||||||
| Cash Provided by Operating Activities | |||||||||||||||||||||||||||
| before Asbestos - Related Payments | $ | 84.7 | $ | 71.9 | $ | 77.5 | $ | 70.8 | $ | 300.0 | $ | 325.0 | |||||||||||||||
| Asbestos Related Payments, Net of Insurance Recoveries | (14.9 | ) | (14.1 | ) | (25.7 | ) | (24.8 | ) | (55.0 | ) | (55.0 | ) | |||||||||||||||
| Cash Provided by Operating Activities | 69.8 | 57.8 | 51.8 | 46.0 | 245.0 | 270.0 | |||||||||||||||||||||
| Less: Capital Expenditures | (15.6 | ) | (9.9 | ) | (26.6 | ) | (20.1 | ) | (50.0 | ) | (50.0 | ) | |||||||||||||||
| Free Cash Flow | $ | 54.2 | $ | 47.9 | $ | 25.2 | $ | 26.0 | $ | 195.0 | $ | 220.0 | |||||||||||||||
| 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. |
View source version on businesswire.com: http://www.businesswire.com/news/home/20160725006296/en/
Contacts:
Jason D. Feldman, 203-363-7329
Director, Investor
Relations
www.craneco.com
