STAMFORD, CONNECTICUT - July 28, 2014 - Crane Co. (NYSE: CR), a diversified manufacturer of highly engineered industrial products, reported second quarter 2014 earnings of $1.00 per diluted share, compared to $0.93 per share in the second quarter of 2013. Second quarter 2014 results included Special Items of $9.3 million in after-tax charges, or $0.15 per share. Second quarter 2013 results included Special Items of $7.3 million in after-tax charges, or $0.13 per share. Excluding these Special Items in both years, second quarter 2014 earnings per diluted share increased 9% to $1.15, compared to $1.06 in the second quarter of 2013.
Special Items in the second quarter of 2014 consisted of the following after-tax charges: $2.5 million, or $0.04 per share, related to the December 2013 acquisition of MEI; $1.4 million, or $0.02 per share, related to previously disclosed repositioning activities; $4.2 million, or $0.07 per share, related to the settlement of the previously disclosed environmental lawsuits by certain homeowners in Roseland, New Jersey; and $1.1 million, or $0.02 per share, related to the divestiture of a small business. Special Items in the second quarter of 2013 included transaction-related costs of $7.3 million, or $0.13 per share, related to the acquisition of MEI.
Second quarter 2014 sales of $750.1 million increased $101.4 million, or 15.6%, compared to $648.7 million in the second quarter of 2013, resulting from a core sales increase of $0.6 million, or 0.1%; sales from acquisitions, net of divestitures, of $93.8 million, or 14.5%; and favorable foreign exchange of $6.9 million, or 1.1%.
Operating profit in the second quarter increased 9.8% to $97.6 million, compared to $88.8 million in the second quarter of 2013. Excluding Special Items, second quarter operating profit increased 14.8% to $109.9 million, compared to $95.7 million in the second quarter of 2013. (Please see the attached Non-GAAP Financial Measures table.)
"We are pleased to report second quarter EPS of $1.15, excluding Special Items," said Crane Co. president and chief executive officer Max Mitchell. "We were encouraged by second quarter order activity and backlog growth, particularly at Fluid Handling, and we continue to expect stronger sales growth in the second half of 2014. We believe that we remain on track to achieve our 2014 objectives, and are reaffirming our previously issued 2014 full year guidance, excluding Special Items. The MEI integration and previously announced repositioning activities are progressing smoothly and position us for solid earnings growth in 2015 and 2016. Reflecting continuing confidence in our long-term outlook, we have increased our dividend for the fifth consecutive year."