Crane Co. Reports Fourth Quarter and Full-Year Results; Provides 2008 EPS Guidance of $3.45 to $3.60

By: Crane Co. via Business Wire News Releases

January 28, 2008 at 18:04 PM EST

Crane Co. (NYSE: CR), a diversified manufacturer of highly engineered industrial products, today reported fourth quarter 2007 net income was $45.2 million, or $0.74 per diluted share. Excluding special items, net income was $47.3 million, or $0.77 per diluted share, compared to $38.0 million, or $0.61 per diluted share in the fourth quarter of 2006. Fourth quarter 2007 operating profit was $64.8 million. Excluding special items, operating profit in the fourth quarter of 2007 was $64.6 million, an increase of $11.1 million, or 21%, from $53.5 million in the 2006 fourth quarter. Fourth quarter 2007 sales increased $84.3 million, or 15%, including core business growth of $43.2 million (8%), sales from acquired businesses (net of divestitures) of $16.3 million (3%) and favorable foreign currency translation of $24.8 million (4%). The special items for the quarter and full year are detailed in the accompanying non-GAAP table.

For the full year 2007, the Company reported a net loss of $62.3 million, or $1.04 per share, which included a previously disclosed $254 million after-tax provision, or $4.22 per share, to extend its asbestos liability to 2017. Net income in 2006 was $165.9 million, or $2.67 per diluted share. Excluding special items in 2007 and 2006, 2007 net income was $195.1 million, or $3.19 per diluted share, compared to $160.9 million, or $2.59 per diluted share in 2006. Sales for 2007 rose to $2.6 billion, an increase of 16% over 2006.

“In the fourth quarter, our operating profit grew 21% and operating margin improved by 50 basis points. Strong performance in our Fluid Handling and Merchandising Systems businesses, along with a lower than expected tax rate, more than offset higher engineering investment in our Aerospace & Electronics segment,” said Crane Co. President and Chief Executive Officer, Eric C. Fast. “We made significant progress in 2007, with full-year sales growing 16% and an even stronger increase in operating profit before special items. We enter 2008 with a record $283 million of cash, substantially strengthened businesses and see opportunities to continue our growth initiatives.”

Special Items Included in Fourth Quarter 2007 Results

Fourth quarter 2007 net income of $45.2 million and $0.74 per share includes a net after-tax gain of $18.4 million ($0.30 per share) related to the previously disclosed consolidation of the Company’s remaining foundry operations in the UK and Canada and an after-tax gain of $5.8 million ($0.10 per share) associated with the sale of the Company’s share of the Industrial Motion Control, LLC joint venture. These gains were substantially offset by 1) an after-tax charge of $12.3 million ($0.20 per share) related to an increase in the Company’s expected liability at its Goodyear, AZ Superfund site, 2) the $3.6 million ($0.06 per share) residual tax effect related to the impact of the third quarter 2007 asbestos charge on the Company’s effective tax rate for the remainder of 2007, and 3) a tax provision of $10.4 million ($0.17 per share) related to the Company’s recent determination of a potential repatriation of approximately $194 million of foreign cash balances. Excluding these items, fourth quarter 2007 net income was $47.3 million or $0.77 per diluted share. Please see the attached schedule of Non-GAAP Financial Measures for details.

The tax rate in the fourth quarter 2007 was 32.2%, primarily reflecting lower than expected foreign taxes offset partially by the net cost of the special items discussed above. The 2006 fourth quarter tax rate of 26.7% reflected the favorable impact of the reinstatement of the federal research and development tax credit.

Order backlog at December 31, 2007 totaled $720 million, 6% higher (5% higher excluding acquisitions) than the backlog of $677 million at December 31, 2006.

Cash Flow and Financial Position

Cash provided by operating activities was $86.5 million in the fourth quarter of 2007, compared to $78.8 million in 2006. Net debt to net capitalization was 11.5% at December 31, 2007, compared to 22.2% at December 31, 2006. In the fourth quarter of 2007, the Company did not repurchase any shares of its common stock. (Please also see the attached Condensed Statement of Cash Flows and Non-GAAP Financial Measures.)

Segment Results

All comparisons below refer to the fourth quarter 2007 versus the fourth quarter 2006, unless otherwise specified.

Aerospace & Electronics

	Fourth Quarter		Change
(dollars in millions)	2007	2006
Sales	$161.3	$145.9	$15.4	11%
Operating Profit	$17.7	$ 25.8	($8.1)	(31%)
Profit Margin	11.0%	17.7%

The fourth quarter 2007 sales increase of $15.4 million reflected a sales increase of $8.3 million in the Aerospace Group and an increase of $7.1 million in the Electronics Group. Segment operating profit declined by $8.1 million as a result of higher engineering expenses of $10.4 million which were primarily related to products for the Boeing 787 program.

Aerospace & Electronics segment backlog at the end of the fourth quarter was $393 million, slightly lower than the prior year because aerospace customers are now ordering more frequently and in smaller quantities.

Engineered Materials

	Fourth Quarter		Change
(dollars in millions)	2007	2006
Sales	$74.8	$69.3	$5.5	8%
Operating Profit	$8.6	$11.7	($3.1)	(26%)
Profit Margin	11.5%	16.9%

The fourth quarter 2007 sales increase of $5.5 million reflects $9.9 million of sales related to the September 2007 acquisition of the composite panel business of Owens Corning, partially offset by lower volumes to the Company’s traditional recreational vehicle and transportation customers. Operating profit in 2007 decreased 26% primarily reflecting lower core business sales and higher raw material costs.

Merchandising Systems

	Fourth Quarter		Change
(dollars in millions)	2007	2006
Sales	$91.8	$78.3	$13.5	17%
Operating Profit	$8.4	$ 0.4	$8.0	nm
Profit Margin	9.1%	0.5%

Strong organic sales growth of 17% was driven by increased sales in Vending Solutions, particularly in Europe, and continued strong global demand for Payment Solutions. Both the Vending and Payment Solutions businesses contributed to the strong increase in operating profit, reflecting continued improvement in the businesses acquired during 2006.

Fluid Handling

	Fourth Quarter		Change
(dollars in millions)	2007	2006
Sales	$300.9	$255.3	$45.6	18%

Operating Profit before Foundry Restructuring	$38.2	$22.8	$15.4	68%

Profit Margin before Foundry Restructuring	12.7%	8.9%

Gain on Foundry Restructuring	$19.1	-	$19.1	-

Operating Profit	$57.3	$22.8	$34.5	151%

Profit Margin	19.0%	8.9%

Fourth quarter 2007 sales increased $45.6 million, or 18%, including $28.8 million (11%) of core sales and favorable foreign currency translation of $18.3 million (7%), partially offset by lower sales from a divested business of $1.5 million. Based on strong sales growth from the global chemical / pharmaceutical and energy industries, and generally higher demand from many commercial applications, operating profit before the restructuring gain increased $15.4 million, or 68%, and margins increased to 12.7%.

In December 2007, the Fluid Handling segment recorded a net gain of $19.1 million ($18.4 million after-tax) related to the consolidation of foundry operations located in the UK and Canada, as it continues to transition to more low cost country sourcing as part of its plan to further improve margins to 15%. The net gain reflects the profit on the sale of the Company’s operating facility in Ipswich, England, partially offset by foundry workforce reduction expenses associated with the restructuring program. The Company will lease back part of the Ipswich property for up to two years until the ongoing manufacturing and office activities are transferred to new premises.

The Fluid Handling segment backlog was $243 million at December 31, 2007, 15% higher than $211 million at December 31, 2006, reflecting continued strong global demand.

Controls

	Fourth Quarter		Change
(dollars in millions)	2007	2006
Sales	$37.1	$32.9	$4.2	12.9%
Operating Profit	$ 1.6	$ 2.7	($1.1)	(41.8%)
Profit Margin	4.2%	8.2%

The fourth quarter 2007 sales increase of $4.2 million reflects $3.5 million of sales related to the August 2007 acquisition of the Mobile Rugged Business division of Kontron America, Inc. Operating profit in 2007 decreased primarily due to integration expenses and intangible amortization related to the acquisition.

Full Year 2008 Guidance

The Company continues to see strong demand in Fluid Handling, which represents approximately 43% of sales, and expects demand to remain robust in its long-cycle Aerospace & Electronics segment. Both Merchandising Systems and Engineered Materials have been materially strengthened from acquisitions and with their industry-leading positions are expected to continue to execute on key growth initiatives. The Company forecasts diluted earnings per share will increase to $3.45 - $3.60 in 2008, a record year for the Company. This guidance includes an estimated annual tax rate of approximately 31%. The Company notes that its earnings growth will be lower in the first half of 2008, reflecting continued elevated levels of engineering spending for several Boeing 787 new product programs.

Management expects cash flow provided from operating activities before asbestos in 2008 will be approximately $275 million, asbestos related payments net of insurance will be approximately $55 million, capital expenditures will be approximately $50 million and free cash flow will be $170 million. The 2008 estimated EBITDA will be $411 - $425 million.

Please see the Non-GAAP Financial Measures table attached to this press release for 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 fourth quarter and full year financial results on Tuesday, January 29, 2008 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 12,000 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, 2006 and subsequent reports filed with the Securities and Exchange Commission.

CRANE CO.
Income Statement Data
(in thousands, except per share data)

	Three Months Ended						Twelve Months Ended
	December 31,						December 31,
	2007			2006			2007			2006
Net Sales:
Aerospace & Electronics	$	161,296		$	145,892		$	628,859		$	566,372
Engineered Materials		74,850			69,328			331,030			309,258
Merchandising Systems		91,838			78,253			388,227			257,818
Fluid Handling		300,860			255,302			1,135,843			999,413
Controls		37,119			32,877			135,212			124,028
Total Net Sales	$	665,963		$	581,652		$	2,619,171		$	2,256,889

Operating Profit (Loss):
Aerospace & Electronics	$	17,695		$	25,767		$	86,176		$	99,181
Engineered Materials		8,626			11,700			58,339			50,252
Merchandising Systems		8,386			428			39,684			17,529

Fluid Handling		38,154			22,780			140,168			107,377
Foundry Restructuring		19,083			-			19,083			-
Total Fluid Handling		57,237			22,780			159,251			107,377
Controls		1,570			2,699			9,901			10,052
Corporate		(9,837	)		(9,909	)		(51,945	)		(36,455	)
Environmental Provision		(18,912	)		-			(18,912	)		-
Asbestos Provision		-			-			(390,150	)		-
Total Operating Profit (Loss)		64,765			53,465			(107,656	)		247,936

Interest Income		2,422			2,776			6,259			4,939
Interest Expense		(6,790	)		(6,748	)		(27,404	)		(23,015	)
Miscellaneous- Net		6,313			2,333			9,906			9,474
Income (Loss) Before Income Taxes		66,710			51,826			(118,895	)		239,334
Provision for Income Taxes		21,483			13,844			(56,553	)		73,447
Net Income (Loss)	$	45,227		$	37,982		$	(62,342	)	$	165,887

Share Data:
Net Income (Loss) per Diluted Share	$	0.74		$	0.61		$	(1.04	)	$	2.67

Average Diluted Shares Outstanding		61,221			61,880			60,037			62,103
Average Basic Shares Outstanding		60,093			60,839			60,037			60,906

Supplemental Data:
Cost of Sales - Operations	$	454,597		$	399,657		$	1,776,157		$	1,525,633
Environmental Provision		18,912			-			18,912			-
Asbestos Provision		-			-			390,150			-
Selling, General & Administrative		146,772			128,530			560,691			483,320
Foundry Restructuring		19,083			-			19,083			-
Depreciation and Amortization		16,570			15,229			61,310			54,285
Stock Compensation Expense		4,074			3,595			15,247			14,883

CRANE CO.
Condensed Balance Sheets
(in thousands)

					December 31,		December 31,
					2007		2006

ASSETS
	Current Assets
		Cash and Cash Equivalents		$	283,370	$	138,607
		Accounts Receivable			345,176		330,146
		Current Insurance Receivable - Asbestos			33,600		52,500
		Inventories			327,719		313,259
		Other Current Assets			47,757		45,897
			Total Current Assets		1,037,622		880,409

	Property, Plant and Equipment				292,683		289,555
	Long-Term Insurance Receivable - Asbestos				306,557		170,400
	Long-Term Deferred Tax Assets				220,370		171,164
	Other Assets				253,510		214,220
	Goodwill				766,550		704,736

	Total Assets			$	2,877,292	$	2,430,484

LIABILITIES AND SHAREHOLDERS' EQUITY
	Current Liabilities
		Notes Payable and Current Maturities of Long-Term Debt		$	548	$	9,505
		Accounts Payable			177,978		161,270
		Current Asbestos Liability			84,000		70,000
		Accrued Liabilities			230,295		196,723
		Income Taxes			731		24,428
			Total Current Liabilities		493,552		461,926

	Long-Term Debt				398,301		391,760
	Deferred Tax Liability				31,880		89,595
	Long-Term Asbestos Liability				942,776		459,567
	Other Liabilities				125,980		109,033
	Shareholders' Equity				884,803		918,603

	Total Liabilities and Shareholders' Equity			$	2,877,292	$	2,430,484

CRANE CO.
Condensed Statements of Cash Flows
(in thousands)

		Three Months Ended						Twelve Months Ended
		December 31,						December 31,
		2007			2006			2007			2006
Operating Activities:
	Net income	$	45,227		$	37,982		$	(62,342	)	$	165,887
	Asbestos provision		-			-			390,150			-
	Environmental provision		18,912			-			18,912			-
	Foundry restructuring		(27,838	)		-			(27,838	)		-
	Gain on sale of joint venture		(4,144	)		-			(4,144	)		-
	Income from joint venture		(1,524	)		(1,116	)		(5,322	)		(5,641	)
	Loss/(Gain) on divestitures		-			453			975			(8,478	)
	Depreciation and amortization		16,570			15,229			61,310			54,285
	Stock-based compensation expense		4,074			3,595			15,247			14,883
	Deferred income taxes		27,602			95			(112,641	)		5,049
	Cash (used for) provided by operating working capital		32,210			34,782			(7,322	)		(835	)
	Other		(7,065	)		(1,635	)		(23,954	)		(2,892	)
	Subtotal		104,024			89,385			243,031			222,258
	Asbestos related payments, net of insurance recoveries		(17,509	)		(10,606	)		(10,198	)		(40,563	)
	Total provided by operating activities		86,515			78,779			232,833			181,695

Investing Activities:
	Capital expenditures		(13,757	)		(4,859	)		(47,169	)		(27,171	)
	Proceeds from sale of equity investment		32,996			-			32,996			-
	Proceeds from disposition of capital assets		36,827			1,786			48,437			5,103
	Proceeds from divestitures		-			-			2,005			26,088
	Payment for acquisition, net of cash acquired		(332	)		(47,903	)		(65,498	)		(282,637	)
	Total used for investing activities		55,734			(50,976	)		(29,229	)		(278,617	)

Financing Activities:
	Dividends paid		(10,823	)		(9,131	)		(39,651	)		(33,596	)
	Reacquisition of shares on the open market		-			(22,499	)		(50,001	)		(59,998	)
	Stock options exercised - net of shares reacquired		4,955			2,264			15,057			22,870
	Excess tax benefit from stock-based compensation		2,897			113			6,978			7,688
	Issuance of Debt		-			25,087			-			96,377
	Net increase / decrease in short-term debt		(24,184	)		9,173			(8,992	)		9,228
	Total used for financing activities		(27,155	)		5,007			(76,609	)		42,569

Effect of exchange rate on cash and cash equivalents			6,028			6,720			17,768			12,568
Increase (decrease) in cash and cash equivalents			121,122			39,530			144,763			(41,785	)
Cash and cash equivalents at beginning of period			162,248			99,077			138,607			180,392
Cash and cash equivalents at end of period		$	283,370		$	138,607		$	283,370		$	138,607

CRANE CO.
Order Backlog
(in thousands)

	December 31,		December 31,
	2007		2006

Aerospace & Electronics	$	392,822	$	396,799
Engineered Materials		14,802		13,198
Merchandising Systems		34,093		33,170
Fluid Handling		242,591		210,532
Controls		35,273		22,982
Total Backlog	$	719,581	$	676,681

CRANE CO.
Non-GAAP Financial Measures
(in thousands, except for per share amounts)
										Percent Change
INCOME ITEMS		Three Months Ended				Twelve Months Ended				Three and Twelve Months Ended
		December 31,				December 31,				December 31,
		2007		2006		2007		2006		2007		2007

Net Sales		$665,963		$581,652		$2,619,171		$2,256,889		14.5	%	16.1	%

Operating Profit (Loss) - GAAP		$64,765		$53,465		($107,656	)	$247,936
Special Items impacting Operating Profit:
Asbestos Provision - Pre-Tax (a)		-		-		390,150		-
Environmental Provision (b)		18,912		-		18,912		-
Environmental Reimbursement (c)		-		-		-		(4,900	)
Foundry Restructuring Gain - Pre-Tax (d)		(19,083	)	-		(19,083	)	-
Government Settlement - Pre-Tax (e)		-		-		7,600		-
Operating Profit before Special Items - Non-GAAP		$64,594		$53,465		$289,923		$243,036		20.8	%	19.3	%

Percentage of Sales		9.7	%	9.2	%	11.1	%	10.8	%

Net Income (Loss) - GAAP		$45,227		$37,982		($62,342	)	$165,887
Per Share		$0.74		$0.61		($1.04	)	$2.67

Special Items impacting Net Income:

Asbestos Provision - Net of Tax (a)		3,597		-		253,597		-
Per Share		$0.06				$4.22

Environmental Provision - Net of Tax (b)		12,293		-		12,293		-
Per Share		$0.20				0.20

Environmental Reimbursement - Net of Tax (c)		-		-		-		(3,185	)
Per Share								($0.05	)

Foundry Restructuring Gain - Net of Tax (d)		(18,402	)	-		(18,402	)	-
Per Share		($0.30	)			($0.31	)

Government Settlement - Net of Tax (e)		-		-		5,396		-
Per Share						$0.09

Gain on Sale of Partnership Interest - Net of Tax (f)		(5,846	)	-		(5,846	)	-
Per Share		($0.10	)			($0.10	)

Tax Provision on Undistributed Foreign Earnings (g)		10,400		-		10,400		-
Per Share		$0.17				$0.17

Net Gain on Divestitures - Net of Tax (h)		-		-		-		(1,779	)
Per Share								($0.03	)

Net Income before Special Items - Non-GAAP		$47,269		$37,982		$195,096		160,923.00		24.5	%	21.2	%
Per Basic Share		$0.79		$0.62		$3.25		$2.64

Per Diluted Share		$0.77		$0.61		$3.19		$2.59		25.8	%	23.2	%

In the twelve months ended December 31, 2007, Average Shares Outstanding excluding the effect of diluted stock options were used to compute the per share amounts since this period was in a loss position. Had net income been reported for the period, Average Shares Outstanding would have included the effect of diluted stock options when computing the per share amount (see chart below).
						Twelve Months Ended
						December 31, 2007
Average Basic Shares Outstanding						60,037
Effect of Diluted Stock Options						1,093
Average Shares Outstanding including the effect of Stock Options						61,130

When considering the effect of dilutive stock options on shares outstanding, Net Income before Special Items is $3.19 per share for the twelve months ended December 31, 2007.

		Three Months Ended				Twelve Months Ended				Full Year
		December 31,				December 31,				2008 Guidance Range
EBITDA (Non-GAAP)		2007		2006		2007		2006		Low		High

Net Income (Loss)		$45,227		$37,982		($62,342	)	$165,887		$214,500		$224,000

	Non-GAAP Adjustments:
	Depreciation and amortization	16,570		15,229		61,310		54,285		69,000		69,000
	Amortization of stock based compensation	4,074		3,595		15,247		14,883		15,700		15,700
	Asbestos provision - pre-tax (a)	-		-		390,150		-		-		-
	Environmental provision (b)	18,912		-		18,912		-		-		-
	Environmental reimbrusement (c)	-		-		-		(4,900	)	-		-
	Foundry restructuring gain - pre-tax (d)	(19,083	)	-		(19,083	)	-		-		-
	Government settlement - pre-tax (e)	-		-		7,600		-		-		-
	Gain on sale of partnership interest - net of tax (f)	(4,144	)	-		(4,144	)	-		-		-
	Interest expense, net	4,368		3,972		21,145		18,076		15,300		15,300
	Provision for income taxes	21,483		13,844		(56,553	)	73,447		96,400		100,600

EBITDA		$87,407		$74,622		$372,242		$321,678		$410,900		$424,600

(a) During the three months ended September 30, 2007, the Company recorded an Asbestos provision of $390 million. During the three months ended December 31, 2007, the Company recorded a tax expense related to the Asbestos Provision recorded in the previous quarter.

(b) During the three months ended December 31, 2007, the Company recorded a charge related to an increase in the Company’s expected liability at its Goodyear, AZ Superfund site.

(c) During the three months ended September 30, 2006, the Company recorded a reimbursement from the US Government for environmental clean-up costs.

(d) During the three months ended December 31, 2007, the Company recorded a net restructuring gain related to the consolidation of its remaining foundry operations in the UK and Canada.

(e) During the three months ended June 30, 2007, the Company recorded a settlement with the US Government, regarding alleged civil violations of the False Claims Act.

(f) During the three months ended December 31, 2007, the Company recorded a gain on the sale of its share of the Industrial Motion Control, LLC joint venture.

(g) During the three months ended December 31, 2007, the Company recorded an income tax provision related to the potential repatriation of foreign cash.

(h) During the three months ended June 30, 2006, the Company recorded a gain of $4.5 million related to the divestiture of two businesses, which was offset by a $2.7 million charge related to the sale of unused property resulting from prior plant consolidations and certain legal costs associated with previous divestitures.

		December 31,			December 31,
		2007			2006
BALANCE SHEET ITEMS
Notes Payable and Current Maturities of Long-Term Debt		$	548		$	9,505
Long-Term Debt			398,301			391,760
	Total Debt		398,849			401,265
Less Cash and Cash Equivalents			(283,370	)		(138,607	)
Net Debt			115,479			262,658
Shareholders' Equity			884,803			918,603
Net Capitalization		$	1,000,282		$	1,181,261
Percentage of Net Debt to Net Capitalization			11.5	%		22.2	%

Shareholders' Equity		$	884,803		$	918,603
Asbestos Provision, Net of Tax			253,597			-
Shareholders' Equity before Asbestos Provision, Net of Tax			1,138,400			918,603
Net Debt			115,479			262,658
Net Capitalization before Asbestos Provision, Net of Tax		$	1,253,879		$	1,181,261
Percentage of Net Debt to Net Capitalization before Asbestos Provision, Net of Tax			9.2	%		22.2	%


	Three Months Ended						Twelve Months Ended						Full Year
	December 31						December 31						Guidance
	2007			2006			2007			2006			2008

CASH FLOW ITEMS
Cash Provided from Operating Activities before Asbestos - Related Payments, Net of Insurance	$	104,024		$	89,385		$	243,031		$	222,258		$	275,000
Asbestos Related Payments, Net of Insurance Recoveries		(17,509	)		(10,606	)		(41,698	)		(40,563	)		(55,000	)
Equitas Receipts		-			-			31,500			-			-
Cash Provided from Operating Activities		86,515			78,779			232,833			181,695			220,000
Less: Capital Expenditures		(13,757	)		(4,859	)		(47,169	)		(27,171	)		(50,000	)
Free Cash Flow	$	72,758		$	73,920		$	185,664		$	154,524		$	170,000

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 and EBITDA provide supplemental information to assist management and investors in analyzing the Company’s ability to generate positive cash flow. 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.

Contacts:

Crane Co.
Richard E. Koch, 203-363-7352
Director, Investor Relations and Corporate Communications
www.craneco.com