Growth In Crane Co Payment And Vending Technologies Segment Is Bright Spot In Q1

STAMFORD, CT -- Crane Co. reported first quarter 2015 earnings of 87¢ a diluted share, compared with 82¢ per share in the first quarter of 2014. First quarter 2015 results included special items of $3 million in after-tax charges, or 5¢ per diluted share. First quarter 2014 results included special items of $14 million in after-tax charges, or 23¢ per diluted share. Excluding these special items in both years, first quarter 2015 earnings per diluted share was 92¢, compared with $1.05 in the first quarter of 2014.

Special items in the first quarter of 2015 included $2 million in after-tax charges or 3¢ a share, related to repositioning activities, and $1 million, or 2¢ per share, of after-tax restructuring and integration charges related to the December 2013 acquisition of MEI.

Crane Co.'s payment (Crane Payment Innovations) and vending technologies (Crane Merchandising Systems) segment had first-quarter sales of $172 million, compared with $169 million during the same period in 2014.

The $3 million increase was driven by core sales growth of $16 million, or 9%, partially offset by $11 million, or 7%, of unfavorable foreign exchange and a $2 million, or 1%, divestiture impact related to the end of a previously disclosed transition services agreement. Adjusted operating margins expanded 160 basis points to 13.3%, driven primarily by higher volume, acquisition synergies and productivity initiatives.

Crane Co.'s other industrial segments include Fluid Handling, Aerospace & Electronics and Engineered Materials. Companywide, the industrial concern had first-quarter sales of $679 million, a decrease of 5%, compared with $717 million in the first quarter of 2014. The sales decline was comprised of a $34 million, or 5% impact from unfavorable foreign exchange and a divestiture impact of $5 million, or 1%, partially offset by slightly positive core sales growth of $1 million.

Operating profit in the first quarter increased to $86 million, up 6%, compared with the first quarter of 2014. Excluding special items, first quarter operating profit decreased to $90 million, down 10% versus the first quarter of 2014.

"The quarter developed as we expected," said Crane Co. president and chief executive Max Mitchell. "Depressed demand across Fluid Handling end markets was consistent with our year-end outlook, and we were particularly pleased with the improved organic growth at Payment and Merchandising Technologies. Our full-year expectations for organic growth and margin performance are unchanged from the view we provided at our February Investor Day. However, given the sustained strength of the U.S. dollar, we are updating our guidance to reflect foreign exchange rates as of the end of March, reducing full-year EPS expectations by 15¢."