Diversified manufacturer Crane Co. (CR) reported Monday a loss for the fourth quarter compared to a profit last year, hurt by significant asbestos liability provision. However, adjusted earnings per share for the quarter grew from last year, but missed analysts expectations by two cents, while quarterly revenues topped their estimates. The company also provided earnings forecast for the full-year 2012, in line with Street view.
The Stamford, Connecticut-based company reported a net loss of $125.13 million or $2.16 per share for the fourth quarter, compared to net income of $39.39 million or $0.66 per share in the prior-year quarter.
The results for the latest quarter include an after-tax asbestos liability provision of $157 million and an after-tax environmental provision of $20 million, totaling $3.05 per share.
Excluding special items, net income for the quarter increased to $51.65 million or $0.88 per share from $40.33 million or $0.68 per share in the year-ago quarter.
On average, 6 analysts polled by Thomson Reuters expected the company to report earnings of $0.90 per share for the fourth quarter. Analysts' estimates typically exclude special items.
Total sales for the quarter grew 10 percent to $631.62 million from $574.01 million in the same quarter last year, and topped four Wall Street analysts' consensus estimate of $649.79 million.
Sales from the aerospace & electronics segment grew 7 percent to $171.97 million, and engineered materials segment sales were flat with last year at $45 million.
Merchandising Systems segment sales increased 13 percent to $86.20 million, and sales from the fluid handling segment rose 14 percent to $297.48 million from the year-ago quarter. Controls segment sales totaled $30.93 million, 3 percent higher than the prior-year quarter.
Total operating loss for the quarter was $192.66 million, compared to an operating profit of $53.70 million in the same quarter last year. Excluding special items, adjusted operating income increased to $79.32 million from $62.82 million last year, while adjusted operating profit margins improved 170 basis points to 12.6 percent from last year's 10.9 percent.
Order backlog at the end of the fourth quarter was $777.95 million, up from $767.65 million at the end of the year-ago quarter.
Separately, the company announced a regular quarterly dividend of $0.26 per share for the first quarter of fiscal 2012, payable on March 9 to shareholders of record as of the close of business on February 29, 2012.
For fiscal 2011, the company reported net income of $26.32 million or $0.44 per share, sharply lower than $154.17 million or $2.59 per share in the year ago.
Excluding special items, adjusted net income increased to $203.10 million or $3.43 per share from $154.29 million or $2.59 per share in the prior year. Analysts expected the company to report earnings of $3.40 per share for fiscal 2011.
Total net sales for the year grew 15 percent to $2.55 billion from $2.22 billion in the previous year. Street was looking for full-year 2011 revenues of $2.57 billion.
Looking ahead to fiscal 2012, Crane expects earnings in a range of $3.75 to $3.95 per share, on sales projected sales growth of about 3 to 5 percent, implying sales between $2.63 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 $3.86 per share on annual revenues of $2.71 billion.
CR closed Monday's regular trading session at $50.03, down $0.37 or 0.73% on a volume of 0.36 million shares.
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