Diversified manufacturer Crane Co. (CR) said Monday its third quarter profit declined slightly from last year, hurt by lower sales in all the segments. Quarterly earnings, however, exceeded Street expectations. Looking ahead, the company raised the high-end of its GAAP earnings outlook for fiscal 2009, while reaffirming the sales forecast.
Crane's net income attributable to common shareholders was $35.1 million or $0.60 per share for the third quarter, compared to $36.1 million or $0.60 per share in the prior year quarter.
Excluding special items, net income attributable to common shareholders was $35.5 million or $0.60 per share for the quarter. On average, 5 analysts polled by Thomson Reuters expected the company to report earnings of $0.48 per share for the third quarter. Analysts' estimates typically exclude special items.
The Stamford, Connecticut-based company's third quarter sales declined 14% to $551.0 million from $642.7 million in the same quarter last year.
Sales from the Aerospace & Electronics segment fell 14% to $136.9 million, hurt mainly by lower demand.
Engineered Materials segment sales dropped 17% to $48.1 million, reflecting continued depressed demand from transportation and building products end markets.
Merchandising Systems segment sales slipped 19% to $75.9 million, amid the difficult market conditions.
Sales from the Fluid Handling segment decreased 9% to $266.8 million, due to core sales decline and unfavorable foreign currency translation.
Third quarter Controls segment sales declined 39% to $23.1 million over a year ago, reflecting continued depressed conditions in the oil & gas and transportation end markets.
Crane president and CEO, Eric Fast, said, "While sales in Engineered Materials, Merchandising Systems, Fluid Handling and Controls were lower than the prior year quarter, they improved slightly from the second quarter this year. Total Aerospace & Electronics segment sales have been declining for the past year primarily because of weaker demand in our long-cycle Aerospace business."
Order backlog was $682 million at September 30, 2009, down 12% from $779 million at September 30, 2008.
For the nine-month period of 2008, net income attributable to common shareholders dropped to $86.2 million or $1.47 per share from $143.5 million or $2.36 per share in the previous year period.
Excluding special items, net income attributable to common shareholders was $92.7 million or $1.58 per share, compared to $140.6 million or $2.32 per share in the prior year period.
Total net sales for the period declined to $1.65 billion from $2.02 billion in the year-ago period.
For 2009, Crane now expects GAAP earnings of $1.90 to $2.05 per share, compared to its prior estimate of $1.75 to $2.05 per share. The company also reaffirmed its sales estimate of $2.2 billion for the year. The Street currently expects earnings of $1.89 per share on revenue of $2.18 billion for the year.
The guidance includes charges for potential restructuring and integration activities of $0.07 per share, compared to the prior estimate of $0.10 per share, and a charge of $0.08 per share associated with a legal settlement.
The company said it now estimates cost savings for 2009 to exceed $150 million, compared to previous target of achieving savings in excess of $125 million.
Crane closed Monday's regular trading session at $26.48, down 71 cents or 2.61%. In after-hours, the shares gained $1.52 or 5.74%.
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June 05, 2026 16:18 ET A busy week for economic news flow saw a slew of reports being released that reflected the trends in the U.S. labor market. In Europe, economic growth and inflation data gained attention as the European Central Bank and Bank of England head for policy session later in the month. In Asia, the monetary policy session of the Indian central bank was in focus as the country, a major oil importer, reels under the pressures of a weaker rupee and rising inflation.