Crane Co. (NYSE: CR), a diversified manufacturer of highly engineered industrial products, announced that it will re-affirm its 2008 EPS, cash flow and EBITDA guidance at the Company’s annual investor day to be held tomorrow in New York City.
Mr. Eric Fast, president and chief executive officer of Crane Co., will say: “Crane is well positioned to post another record year of earnings despite a challenging economy. Our earnings per share guidance for the full year 2008 is $3.45 - $3.60, an increase of 8 - 13% compared with $3.19 per diluted share in 2007, which excludes the impact of special items and benefited from a lower tax rate than we expect in 2008. The diversity of our business portfolio and our market leadership positions, with no exposure to automotive and minor exposure to housing, position us well for 2008.
For 2008, we expect sales to increase 8% to $2.8 billion, with growth in all our segments. We are expecting improved operating results from each of our five segments. Reflecting solid global demand, we expect a 16% increase in operating profits in Fluid Handling, which represents approximately 43% of the Company’s sales. We also expect operating profits in our long-cycle Aerospace & Electronics businesses to increase 12% from continued strong demand and to benefit in the last half of 2008 as engineering investment slows from delivery of the 787 and A400M programs. Both Merchandising Systems and Engineered Materials industry-leading positions, strong growth initiatives and disciplined cost control should allow them to improve operating profits by 9% and 13%, respectively. Operating profits in our Controls Group are expected to rise 40% primarily from the acquisition we completed in August 2007.
We expect free cash flow (cash flow from operating activities less capital expenditures) in 2008 will be approximately $170 million. Capital expenditures in 2008 are estimated at $50 million. EBITDA is estimated to be $411 - $425 million.”
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, Fluid Handling, Engineered Materials, Merchandising Systems, 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.
Richard E. Koch, 203-363-7352
Director, Investor Relations and Corporate Communications