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
Backlog was $335 million at June 30, 2012, compared to $338 million at March 31, 2012 and $314 million at December 31, 2011. The decline in backlog from March 31, 2012 to June 30, 2012 was due to changes in foreign currency translation rates and the divestiture of the Houston valve service center, which together negatively impacted backlog by $9 million.
The Company’s repositioning actions are primarily focused on its European Fluid Handling operations, to reduce costs through headcount reductions and process improvements, principally at its Krombach operations in Kreuztal, Germany. In addition, as part of a continuing cost reduction strategy, certain manufacturing operations will be transferred from facilities in Germany to Company facilities in lower cost regions.
Repositioning charges of $11.4 million on a pre-tax basis were recorded in the second quarter of 2012. In addition to the amounts recorded in the second quarter, the Company expects to incur additional pre-tax charges related to these actions in the second half of 2012 of approximately $3 million. Pre-tax savings associated with these actions are expected to approximate $10 million annually beginning in 2013.
|(dollars in millions)||2012||2011|
Second quarter 2012 sales of $24.7 million increased 15%, primarily reflecting continued improvement in industrial, transportation and upstream oil and gas related demand. Operating profit increased 40%, reflecting effective leverage of the higher sales volume.
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