Diversified manufacturer Crane Co. (CR: Quote) reported Monday a profit for the second quarter that grew from last year, reflecting significant gain from divestitures.
However, adjusted earnings per share for the quarter declined, but topped analysts expectations by two cents, while quarterly revenues missed their estimates. The company also adjusted earnings and revenue growth forecast for the full-year 2012.
"The Company executed well in the second quarter, with continued operating improvement year over year as well as targeted actions to drive further improvements in 2013. Reflecting our confidence in the Company's future, we are increasing the quarterly dividend by 8%," President and CEO Eric Fast said in a statement.
The Stamford, Connecticut-based company reported a net income of $62.56 million or $1.07 per share for the second quarter, higher than $50.44 million or $0.85 per share in the prior-year quarter.
Income from continuing operations declined to $42.84 million or $0.73 per share from $49.83 million or $0.84 per share last year.
The results for the latest quarter include a $0.31 per share gain associated with divestitures, partially offset by $0.20 per share of repositioning charges associated with productivity actions to improve the profitability.
Excluding special items, adjusted net income from continuing operations increased to $56.17 million or $0.96 per share from $50.44 million or $0.85 per share in the year-ago quarter.
On average, five analysts polled by Thomson Reuters expected the company to report earnings of $0.94 per share for the second quarter. Analysts' estimates typically exclude special items.
Total sales for the quarter grew 3.9 percent to $657.69 million from $633.19 million in the same quarter last year, but missed three Wall Street analysts' consensus estimate of $677.19 million.
Operating profit margins contracted 200 basis points to 10.5 percent, while adjusted operating profit margins improved 30 basis points to 12.8 percent from last year.
"We have narrowed our EPS guidance range and reduced the midpoint by $0.05, reflecting two small divestitures in the second quarter. Our repositioning actions directly address costs in our European Fluid Handling businesses, strengthening our confidence for 2013," Fast added.
Looking ahead to fiscal 2012, the company lowered its adjusted earnings guidance to a range of $3.75 to $3.85 per share from the prior forecast of $3.75 to $3.95 per share.
Sales are now expected to increase about 4 to 5 percent, compared to the previous growth forecast to 3 to 5 percent, implying sales between $2.45 billion and $2.68 billion, based of reported sales of $2.55 billion for fiscal 2011.
Street is looking for full-year 2012 earnings of $3.83 per share on annual revenues of $2.69 billion.
The company also said it expects to incur additional equipment relocation and personnel costs related to these repositioning actions of about $0.06 per share in the second half of 2012.
Separately, the company announced an 8 percent increase in quarterly dividend to $0.28 per share, payable on September 11 to shareholders of record as of the close of business on August 31, 2012.
CR closed Monday's regular trading session at $37.36, down $0.51 or 1.35% on a volume of 0.22 million shares.
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by RTT Staff Writer
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