Crane Co., a diversified manufacturer of highly engineered industrial products, reported fourth quarter 2013 earnings of $0.84 per diluted share, compared to $0.79 per share in the fourth quarter of 2012. Fourth quarter 2013 results included after-tax transaction-related costs, net, of $11.9 million, or $0.20 per share, related to the recent acquisition of MEI Conlux Holdings. Fourth quarter 2012 results included after-tax charges of $3.9 million, or $0.07 per share, associated with transaction-related costs associated with the MEI acquisition, and $3.9 million, or $0.07 per share, of repositioning charges. Excluding Special Items in both years, fourth quarter 2013 earnings per diluted share increased 13 percent to $1.04, compared to $0.92 in the fourth quarter of 2012. Fourth quarter 2013 earnings included $0.02 per share related to the operating results of MEI.
Fourth quarter 2013 sales of $681.4 million increased $51.7 million, or 8.2 percent, compared to $629.8 million in the fourth quarter of 2012, resulting from a core sales increase of $28.2 million (4.5 percent), sales from the MEI acquisition of $25.2 million (4.0 percent), and unfavorable foreign exchange of $1.7 million (0.3 percent).
Operating profit in the fourth quarter increased 9.1 percent to $83.1 million, compared to $76.2 million in the fourth quarter of 2012. Excluding Special Items, fourth quarter operating profit increased 15.8 percent to $97.9 million, compared to $84.6 million in the fourth quarter of 2012, and operating profit margin increased to 14.4 percent, compared to 13.4 percent in the fourth quarter of 2012.
Full Year 2013 Results
Total sales in 2013 were $2.60 billion, an increase of 0.6 percent from $2.58 billion in 2012, reflecting $25.2 million (1.0 percent) from the acquisition of MEI, partially offset by unfavorable foreign currency translation of $11.3 million (0.4 percent).
Operating profit for the full year 2013 was $347.9 million, compared to $310.4 million in 2012. Excluding Special Items, 2013 operating profit increased 12.0 percent to $375.3 million, compared to $334.9 million in 2012, and operating profit margin increased to 14.5 percent, compared to 13.0 percent in 2012.
Full year 2013 earnings per diluted share were $3.73, compared to $3.72 per share in 2012. Excluding Special Items, 2013 earnings per diluted share increased 12.7 percent to $4.18 (including $0.02 per share from MEI), compared to $3.70 per share in 2012. Order backlog was $762 million at December 31, 2013 (including $32 million related to MEI) compared to $749 million at December 31, 2012.
"We are pleased to report record full year EPS [earning per share] of $4.18 per share, excluding Special Items, which was in line with our most recent guidance" said Crane Co. Chief Executive Officer, Eric C. Fast, in a prepared statement. "In spite of a difficult revenue environment, our adjusted full year operating margin was a record 14.5 percent, a substantial improvement over 13.0 percent in 2012 and 12.3 percent in 2011."
Max Mitchell, president and chief operating officer said, "In 2014, we are expecting our fourth consecutive year of record earnings, continued margin expansion and strong free cash flow. We enter the year having completed the acquisition of MEI, a business with highly innovative, complementary products that further strengthens our portfolio. In addition to unlocking significant synergies, the integration brings together MEI with our legacy Crane Payment Solutions team to create Crane Payment Innovations, a business that delivers highly engineered solutions and unparalleled customer service across attractive end markets." Full report.