STAMFORD, CT -- Crane Co. posted better-than-expected quarterly results boosted by higher sales of aircraft components, electronic parts, fluid-handling systems and vending equipment. Second-quarter net income rose to $50.4 million, or 85¢ a share, from $40 million, or 67¢ per share, a year ago. Sales increased 16% to $644 million.
Analysts on average had expected earnings of 84¢ a share, before special items, on revenue of $625.3 million. Shares of the company closed at $50.35 on Monday, July 25, on the New York Stock Exchange.
Stamford, CT-based Crane, a 156-year-old manufacturer of industrial products, also raised its full-year earnings outlook to $3.30-$3.45 a share from $3.05-$3.25 per share. Analysts on average were looking for earnings of $3.26 per share, according to Thomson Reuters.
"I am pleased with our second-quarter results as strong core revenue growth and continued solid execution are sustaining the momentum that we carried into 2011," said Eric C. Fast, president and chief executive of Crane Co., which also is one of the world's largest producers of vending machines and vending technology. "I expect our earnings to continue to improve in the second half of the year. Reflecting the strong performance of our late-cycle aerospace and fluid handling businesses, we are raising our full year sales, EPS and cash flow guidance. In addition, given our confidence in the company's future, we are increasing our quarterly dividend by 13%." | SEE RELEASE
Crane Merchandising Systems, the vending machine and payment systems division, had sales of $94 million in the second quarter, compared with $74.5 million a year ago. The 26% sales increase included $13.2 million associated with Money Controls, which Crane acquired in December 2010. Merchandising's operating profit dropped 12% to $7.1 million; the manufacturer said 2010's operating profit was favorably impacted by the receipt of a patent litigation settlement. The vending division reported a second-quarter profit margin of 7.6% compared with 10.9% in 2010.
Crane Merchandising Systems is headquartered in St Louis and produces vending machines in Williston, SC.