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Crane Co. Reports 2016 Q3 Results; Payment And Vending Sales Increase 9%

Posted On: 10/25/2016

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TAGS: Crane Co. 2016 third quarter, Crane Co. sales, Max Mitchell, Payment & Merchandising Technologies, Crane Payment Innovations, Crane Merchandising Systems, unattended payment systems, vending machine production, vending machine sales


Third-quarter highlights are:

» GAAP earnings per diluted share (EPS) of $1.07 increased 10%, compared with 2015. Excluding special items in 2015, EPS increased 4%, compared with last year.

» Sales of $694 million increased 4%, compared with 2015, with core growth of 5.5%.

Raising 2016 GAAP EPS guidance to $4.07-$4.15, from $3.95-$4.15. Revised 2016 EPS guidance, excluding special items, of $4.12-$4.20 versus prior range of $4-$4.20.



STAMFORD, CT -- Crane Co., a diversified manufacturer of highly engineered industrial products, reported third-quarter 2016 GAAP earnings of $1.07 per diluted share, compared with $0.97 a share in the third quarter of 2015. Excluding special items, third-quarter 2015 earnings per diluted share were $1.03.

Third-quarter 2016 sales were $694 million, an increase of 4%, compared with $670 million in the third quarter of 2015. Core sales increased $37 million, or 5.5%, partially offset by a $12 million, or 2%, impact from unfavorable foreign exchange.

Operating profit in the third quarter was $104 million, up 11%, compared with $93 million in the third quarter of 2015. Excluding special items, operating profit was $97 million that quarter of 2015.

The effective tax rate in the third quarter was 33.0%, compared with 32.3% last year. Excluding special items, the effective tax rate in the third quarter of 2015 was 31.6%.

Click here to see Crane Co.'s non-GAAP financial measures tables.

"We delivered another strong quarter, with solid execution across all segments," said Crane Co. chief executive Max Mitchell. "We were particularly pleased with our growth and margin performance at Payment & Merchandising Technologies, with solid end market demand and progress on productivity supporting continued momentum into 2017."

Crane's Payment & Merchandising Technologies segment consists of Crane Payment Innovations, which specializes in unattended cash and coin payment systems, and Crane Merchandising Systems, which manufactures full-line vending equipment and provides cashless and networked vending solutions. The segment's sales increased $16 million, or 9%, driven by $21 million, or 12%, of core growth, but were partially offset by a $5 million, or -3%, impact from unfavorable foreign exchange. Its operating margin expanded 250 basis points to 18.6%, driven primarily by integration synergies, the higher core sales and strong productivity.

Mitchell reported that Crane Co. will raise the midpoints of its full-year adjusted EPS guidance by $0.06 and its free cash flow guidance by $5 million.