Crane Co., a diversified manufacturer of highly engineered industrial products including Crane Merchandising Systems, reported a fourth quarter 2011 net loss of $2.16 per share, compared to earnings of $0.66 per diluted share in the fourth quarter of 2010. Fourth quarter 2011 results include an after-tax asbestos provision of $157 million and an after-tax environmental provision of $20 million (totaling $3.05 per share).
Fourth quarter 2010 results were impacted by net after-tax charges from special items of $0.02 per diluted share. Excluding these special items, fourth quarter 2011 earnings per diluted share increased 29 percent to $0.88 compared to $0.68 in the fourth quarter of 2010.
Fourth quarter 2011 sales of $632 million increased $58 million, or 10 percent, compared to the fourth quarter of 2010, resulting from a core sales increase of $40 million (7 percent), an increase in sales from acquired businesses (net of divestitures) of $16 million (3 percent), and favorable foreign currency translation of $2 million.
The operating loss in the fourth quarter of 2011 was $192.7 million compared to an operating profit of $53.7 million in the fourth quarter of 2010.
Excluding special items, fourth quarter 2011 operating profit increased 26.3 percent to $79.3 million compared to $62.8 million in the fourth quarter of 2010, and operating profit margin increased to 12.6 percent, compared to 10.9 percent in the fourth quarter of 2010.
Total full year sales in 2011 were $2.55 billion, an increase of 15 percent from $2.22 billion in 2010, resulting from a core sales increase of $217 million (10 percent), an increase in sales from acquired businesses (net of divestitures) of $60 million (3 percent), and favorable foreign currency translation of $51 million (2 percent).
Operating profit for the full year 2011 was $42.3 million compared to $235.2 million in 2010. Excluding special items, 2011 operating profit increased 29.3 percent to $314.2 million compared to $243.1 million in 2010, and operating profit margin increased to 12.3 percent, compared to 11.0 percent in 2010.
Full year 2011 earnings per diluted share declined to $0.44, compared to $2.59 in 2010. Excluding Special Items, 2011 earnings per diluted share increased 32 percent to $3.43 compared to $2.59 in 2010.
Order backlog was $778 million at Dec. 31, 2011 compared to $768 million at December 31, 2010.
"We are pleased to report a record full year EPS of $3.43, excluding special items, in line with our most recently issued guidance and significantly better than the $2.80-$3.00 range for 2011 that we expected a year ago," said Crane Co. president and chief executive officer, Eric C. Fast in a prepared statement. "Excluding special items, full year operating margin was 12.3 percent, a substantial improvement over 11.0 percent in 2010, and we expect to achieve our 13 percent operating margin target in 2012. The more stable trends we have experienced over the last several years enable us to extend our reserve for asbestos."
Fourth quarter 2011 sales for aerospace and electronics increased $10.9 million, or 7 percent, reflecting a $12.7 million increase (13 percent) in aerospace group sales and a decrease of $1.8 million (3 percent) in electronics group revenue. The aerospace sales growth reflected higher OEM and aftermarket activity, with an increase in both commercial and military related demand. Segment operating profit increased by 17 percent and margins improved to 22.6 percent as the higher volume and margins in the aerospace group offset the modest decline in the electronics group.
Aerospace and electronics order backlog was $411 million at Dec. 31, 2011 compared to $409 million at Sept. 30, 2011 and $431 million at Dec. 31, 2010.
For engineered materials, segment sales of $45.0 million were equal to the fourth quarter of 2010, with slightly lower sales to recreational vehicle manufacturers offset by higher sales to transportation and building products customers. Operating profit and margins improved to $4.6 million and 10.1 percent, respectively, primarily reflecting the impact of higher selling prices and improved productivity.