Crane Co. Reports Second Quarter Results; Increases Dividend 8%; Announces Repositioning Actions To Improve 2013 Performance; Adjusts 2012 EPS Guidance To $3.75–$3.85, Excluding Special Items
Crane Co. (NYSE: CR), a diversified manufacturer of highly engineered industrial products, reported that second quarter 2012 earnings per diluted share increased 26% to $1.07 compared to $0.85 in the second quarter of 2011. Second quarter 2012 results include a $0.31 per share gain associated with divestitures, partially offset by $0.20 per share of repositioning charges associated with productivity actions to improve the profitability of the Company in 2013. Excluding Special Items (divestiture gains and repositioning charges), second quarter 2012 earnings per diluted share increased 13% to $0.96 compared to $0.85 in the second quarter of 2011. (Please see the attached Non-GAAP Financial Measures table for pre-tax, after-tax and earnings per share amounts of Special Items.)
The Company expects to incur additional equipment relocation and personnel costs related to these repositioning actions of approximately $0.06 per share in the second half of 2012. The after-tax net gain from the second quarter divestitures is expected to exceed full year after-tax repositioning costs. Pre-tax savings associated with these actions are expected to approximate $12 million annually beginning in 2013.
Second quarter 2012 sales from continuing operations of $658 million increased $24 million, or 4%, compared to the second quarter of 2011, resulting from a core sales increase of $35 million (6%) and an increase in sales from acquired businesses of $7 million (1%), partially offset by unfavorable foreign currency translation of $18 million (-3%).
Second quarter 2012 operating profit from continuing operations on a GAAP basis (which includes $14.7 million of repositioning charges) decreased 12% to $69.4 million, compared to $78.9 million in the second quarter of 2011. Excluding repositioning charges, second quarter 2012 operating profit from continuing operations increased 7% to $84.1 million, and operating profit margin increased to 12.8%, compared to 12.5% in the second quarter of 2011. (Please see the attached Non-GAAP Financial Measures table.)
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