Crane Co Reports Q4 Results Vending And Payments Sales Decline 2

STAMFORD, CT -- Crane Co., a diversified manufacturer of industrial products, including vending machines and payment systems, reported fourth-quarter 2015 earnings of $1.11 per diluted share, compared with 95¢ per share in the fourth quarter of 2014. Excluding special items in both years, fourth-quarter 2015 earnings per diluted share were $1.12, compared with $1.13 in the fourth quarter of 2014.

Fourth-quarter sales across all segments (Fluid Handling, Payment & Merchandising Technologies, Engineered Materials and Aerospace & Electronics) were $681 million, a decrease of 7% compared with $731 million in the fourth quarter of 2014. The sales decline was comprised of a $24 million, or 3%, impact from unfavorable foreign exchange; a core sales decline of $22 million, or 3%; and a divestiture impact of $4 million.

Operating profit in the fourth quarter was $104 million, up 16% compared with the fourth quarter of 2014. Excluding special items, fourth quarter operating profit was $104 million, down 3% compared with the fourth quarter of 2014.

Fourth quarter sales in the company's payments and vending segment, which includes Crane Payment Innovations and Crane Merchandising Systems, decreased 2% to $174 million from $177 million a year earlier, driven by unfavorable foreign exchange of $6 million, or -3%, and a divestiture impact of $4 million, or -2%, partially offset by core sales growth of $7 million, or 4%. Adjusted operating margin expanded 340 basis points to 17.1%, driven primarily by integration synergies, higher volumes, and strong productivity.

Crane Co.'s full year 2015 earnings per diluted share were $3.89, compared with $3.23 in 2014. Excluding special items, 2015 earnings per diluted share decreased 7% to $4.13, compared with $4.45 in 2014.

Total sales in 2015 were $2.74 billion, a decline of 6%, compared with $2.92 billion in 2014. The sales decline was comprised of a $134 million, or 5%, impact from unfavorable foreign exchange; a core sales decline of $35 million, or 1%; and a divestiture impact of $15 million.

Operating profit for the full year 2015 was $373 million, up 18%, compared with 2014. Excluding special items, operating profit in 2015 of $391 million declined 8% compared with 2014.

"We were pleased with our fourth quarter performance given continued softness in our fluid handling end markets," said Crane Co. president and chief executive Max Mitchell. "Adjusted operating margins expanded 60 basis points compared to last year, driven by strong execution across our Payment & Merchandising, Aerospace & Electronics, and Engineered Materials businesses."

Looking ahead, Mitchell singled out vending and payment systems among the company's segments with the most promising growth projections. "We are well positioned for the new aerospace programs launching over the next few years, we have the right product portfolio and cost position for an eventual recovery in Fluid Handling markets, and Payment and Merchandising is on track for continued sales growth and margin expansion," Mitchell concluded.

Click here to see Crane Co.'s full third-quarter release with non-GAAP financial measures tables.