Crane Co. Reports Consolidated Earnings Results for the Fourth Quarter and Full Year Ended December 31, 2017; Revises Earnings Guidance for the Full Year 2018
January 29, 2018 at 05:01 pm EST
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Crane Co. reported consolidated earnings results for the fourth quarter and full year ended December 31, 2017. For the quarter, the company reported total net sales of $714.2 million against $681.4 million a year ago. Operating profit was $90.9 million against loss of $91.6 million a year ago. Interest income was $0.7 million against $0.5 million a year ago. Income before income taxes was $82.9 million against loss of $101.2 million a year ago. Net loss attributable to common shareholders was $28.7 million or $0.48 per diluted share against $64.0 million or $1.09 per diluted share a year ago. Total cash provided by operating activities was $143.4 million against $149.7 million a year ago. Capital expenditure was $14.7 million against $13.0 million a year ago. Net income attributable to the common shareholders before special items was $71.0 million or $1.18 per diluted share against $61.1 million or $1.02 per diluted share a year ago. Operating profit before special items was $108.6 million against $100.8 million a year ago. Core sales increased $13 million, or 2%, with $14 million, or 2%, of favorable foreign exchange, and a $5 million, or 1%, net acquisition benefit.
For the year, the company reported total net sales of $2,786.0 million against $2,748.0 million a year ago. Operating profit was $401.9 million against $200.3 million a year ago. Interest income was $2.5 million against $1.9 million a year ago. Income before income taxes was $367.5 million against $164.1 million a year ago. Net income attributable to common shareholders was $171.8 million or $2.84 per diluted share against $122.8 million or $2.07 per diluted share a year ago. Total cash provided by operating activities was $317.5 million against $318.1 million a year ago. Capital expenditure was $49.0 million against $51.5 million a year ago. Net income attributable to the common shareholders before special items was $273.6 million or $4.53 per diluted share against $251.1 million or $4.23 per diluted share a year ago. Operating profit before special items was $422.7 million against income of $397.7 million a year ago. Core sales increased $31 million, or 1%, and net acquisitions contributed $14 million, partially offset by $7 million of unfavorable foreign exchange. Free cash flow in 2017 was extremely strong and above expectations at $269 million.
On December 5, 2017, the company introduced preliminary 2018 full year earnings guidance of $4.85-$5.05 per diluted share, excluding any potential impact from the then-pending Crane Currency acquisition. The company now expect 2018 full year GAAP EPS of $4.65-$4.85. Excluding Special Items, the company expects 2018 full year EPS of $5.35-$5.55. Guidance assumes core sales growth of +2% to +4%, a modest benefit from favorable foreign exchange, and approximately $400 million of sales contribution from the Crane Currency acquisition. Full year 2018 free cash flow (cash provided by operating activities less capital spending) is expected to be in a range of $220-$250 million, including capital expenditures of approximately $125 million. Capital expenditures are expected to be elevated in 2018 primarily due to repositioning activities, further investments enabled by the TCJA, and investment activity at Crane Currency. 2018 sales of approximately $3.3 billion, up 18% compared to 2017. Core growth is expected in a range of 2% to 4%, with a 15% or approximately $400 million contribution from Crane Currency and a modest benefit from favorable foreign exchange. Operating margins are forecast to decline to 14.7% from a record 15.2% in 2017. The company expects an effective tax rate of approximately 22%. The company expects capital expenditures to decline from these levels in 2019 and revert to a more normal 1.5% to 2% of sales by 2020.
Crane NXT, Co. is an industrial technology company that provides technology solutions to secure, detect, and authenticate what matters most to its customers. The Company operates through two segments: Crane Payment Innovations (CPI) and Security and Authentication Technologies. The CPI segment provides electronic equipment and associated software leveraging extensive and proprietary core capabilities with various detection and sensing technologies for applications, including verification and authentication of payment transactions. The Security and Authentication Technologies segment provides advanced security solutions based on proprietary technology for securing physical products, including banknotes, consumer goods and industrial products. The Security and Authentication Technologies segment also provides brand protection and authentication solutions. The Company operates in the United States, the United Kingdom, Mexico, Japan, Germany, Sweden, and Malta.
Crane Co. Reports Consolidated Earnings Results for the Fourth Quarter and Full Year Ended December 31, 2017; Revises Earnings Guidance for the Full Year 2018