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Crane Co Reports Second-Quarter Results Payment Systems And Vending Machine Sales Climb 3

STAMFORD, CT -- Crane Co., a diversified manufacturer of highly engineered industrial products and vending machines, reported second-quarter 2017 earnings of $1.14 per diluted share, compared with $1.15 a share in the second quarter of 2016. Second quarter 2017 sales were $703 million, down 1%m, compared with $712 million in 2016. Core sales increased slightly and acquisitions contributed $6 million, which were more than offset by a $14 million, or -2%, impact from unfavorable foreign exchange, and...

July 27, 2017

STAMFORD, CT -- Crane Co., a diversified manufacturer of highly engineered industrial products and vending machines, reported second-quarter 2017 earnings of $1.14 per diluted share, compared with $1.15 a share in the second quarter of 2016. 

Second quarter 2017 sales were $703 million, down 1%m, compared with $712 million in 2016. Core sales increased slightly and acquisitions contributed $6 million, which were more than offset by a $14 million, or -2%, impact from unfavorable foreign exchange, and a small divestiture.

In Crane's Payment and Merchandising Technologies segment, sales increased $6 million, or 3%, driven by $14 million, or 7%, of core growth, partially offset by a $6 million, or -3%, impact from unfavorable foreign exchange and a $2 million, or -1%, net acquisition and divestiture impact. Operating margin expanded 350 basis points to 21.4%, driven primarily by the higher core sales and productivity, partially offset by unfavorable mix. Excluding special items, operating margin rose 390 basis points to 21.8% in the quarter. Payments & Merchandising is one of four industrial segments in the Crane Co. family of companies; its two units are Crane Payment Innovations and Crane Merchandising Systems.

During the second quarter, Crane completed two acquisitions: the previously announced Westlock Controls transaction, and the purchase of Microtronic AG. Crane acquired Microtronic for cash consideration of approximately $18 million. With operations in Oensingen, Switzerland, Microtronic develops and manufactures electronic payment systems, primarily for the European vending market, strengthening Crane Payment Innovations' portfolio of cashless solutions. 

"We reported another quarter of strong operating results, and achieved record-high operating margins. End market demand remains in line with our expectations, and we are continuing to drive margin improvement with productivity and solid execution," said Crane Co. president and chief executive Max Mitchell. "We were also very pleased to deploy $58 million of capital on two acquisitions in the quarter: Westlock Controls in Fluid Handling, and Microtronic in Payment & Merchandising Technologies. We are also re-affirming our adjusted EPS guidance of $4.35-$4.55." 

Click here to see Crane Co.'s full second-quarter report and financial tables.