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Crane Co. Reports Increased Q2 Earnings, Profits; Payments And Merchandising Sales Rise 3%

Posted On: 7/27/2016

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TAGS: Crane Co. vending machines, payments, mobile payments, vending machine technology, Crane Co. 2016 second quarter, Crane Co. Payment and Merchandising Technologies, Crane Payment Innovations, Crane Merchandising Systems

STAMFORD, CT -- Crane Co. reported higher per-share earnings and operating profit for the second quarter of 2016. Sales for the Payment and Merchandising Technologies segment increased to $193 million from $187 million in the comparable 2015 quarter.

For the quarter, Crane Co.'s GAAP earnings per diluted share increased to $1.15, up from 95¢ a year earlier. Excluding special items, second-quarter 2016 earning per diluted share were $1.21, compared with $1.06 in the prior-year quarter.

Second quarter 2016 sales were $712 million, approximately flat, compared with $711 million in the second quarter of 2015. Core sales increased $7 million, or 1%, offset by a $6 million (1%) impact from unfavorable foreign exchange.

Operating profit for the second quarter was $103 million, up 14%, compared with $90 million in the second quarter of 2015. Excluding special items, operating profit was $108 million in the latest quarter, up 9%, compared with $99 million in the comparable 2015 period.

The effective tax rate in the second quarter was 27%, down from 31.5% last year. The lower rate primarily reflects the resolution of a tax audit during the quarter. Excluding special items, the effective tax rate was 27.4%, down from 31.0% a year earlier.

The Payment and Merchandising Technologies segment, comprised of Crane Payment Innovations (unattended money handling) and Crane Merchandising Systems (vending machines), reported a sales increase of $6 million (3%) for the second quarter of 2016, on 4% of core growth partially offset by a 1% ($2 million) impact from unfavorable foreign exchange. Operating margin expanded 290 basis points to 17.9%, driven primarily by integration synergies, higher volumes and strong productivity.

"We are pleased with our second quarter results," said Crane Co. president and chief executive Max Mitchell. "We drove strong execution across all segments, order trends were consistent with our expectations, and EPS benefited from a lower tax rate.

"We are cautiously optimistic about the remainder of 2016, tempered only by continued economic uncertainty, including volatility in foreign exchange and commodity markets," Mitchell continued. "Balancing these factors, we are raising the midpoint of our full-year adjusted EPS guidance range by 10¢."

Crane Payment Innovations, Crane Merchandising Systems, vending

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