STAMFORD, Conn.--(BUSINESS WIRE)-- Crane Co., a diversified manufacturer of highly engineered industrial products, reported third quarter 2015 earnings of $0.97 per diluted share, compared to $0.47 per share in the third quarter of 2014. Excluding Special Items in both years, third quarter 2015 earnings per diluted share were $1.03, compared to $1.12 in the third quarter of 2014.
Third quarter 2015 sales were $670 million, a decrease of 8% compared to $727 million in the third quarter of 2014. The sales decline was comprised of a $36 million, or 5%, impact from unfavorable foreign exchange; a core sales decline of $19 million, or 3%; and a divestiture impact of $2 million.
Operating profit in the third quarter was $93 million, up 95% compared to the third quarter of 2014. Excluding Special Items, third quarter operating profit was $97 million, down 10% compared to the third quarter of 2014.
"Consistent with our commentary last quarter, Fluid Handling sales and orders remain depressed. Customers continue to defer capital spending, and there is continued uncertainty and lack of predictability in our end markets," said Max Mitchell, Crane Co. President and Chief Executive Officer. "Given the ongoing market softness, we are reducing the high end of our EPS guidance range for the year."
Mr. Mitchell continued, "While Fluid Handling market conditions remain challenging, we were pleased with the continued solid performance at our Payment & Merchandising Technologies and Engineered Materials businesses, as well as sequential improvement at Aerospace & Electronics."
Fluid Handling
Sales decreased $50 million, driven by $24 million, or 8%, of unfavorable foreign exchange, and a $26 million, or 8%, core sales decline. Adjusted operating margin declined to 11.8%, primarily reflecting the impact of lower volumes, and to a lesser extent, competitive pricing and unfavorable product mix. Fluid Handling order backlog was $279 million at September 30, 2015, compared to $311 million at December 31, 2014 and $350 million at September 30, 2014.
Payment & Merchandising Technologies
Sales decreased $10 million driven by unfavorable foreign exchange of $11 million, or 6%, and a divestiture impact of $2 million, or 1%, partially offset by core sales growth of $3 million, or 2%. Adjusted operating margin expanded 110 basis points to 16.1%, driven primarily by acquisition synergies, higher volumes, and strong productivity.
Aerospace & Electronics
Sales increased $5 million, driven by a 3% increase in core sales. The core sales increase reflects improvement in sales to both the commercial and defense markets. Adjusted operating margin improved 220 basis points to 21.4%, primarily reflecting higher volumes, a more favorable product mix, and lower costs. Aerospace & Electronics order backlog was $460 million at September 30, 2015, compared to $422 million at December 31, 2014 and $405 million at September 30, 2014.
Engineered Materials
Sales decreased $2 million, driven by lower sales to the recreational vehicle market, partially offset by higher sales to the transportation market. Operating margin increased 590 basis points to 19.9%, primarily reflecting strong productivity and lower material costs, partially offset by the lower volumes. Full report.
