Crane Co. (NYSE: CR), a diversified manufacturer of highly engineered industrial products, including payment systems and vending machines, reported full-year and fourth-quarter 2020 results, and provided its 2021 outlook.
"We are introducing 2021 adjusted EPS guidance in a range of $4.90-$5.10, with the midpoint reflecting 30% adjusted earnings growth compared to last year," said Crane president and chief executive Max Mitchell.
"This growth is supported by recent trends, including markets that strengthened towards the end of 2020 and order rates that accelerated throughout the fourth quarter," he continued. "Orders were higher in December than in any other month of 2020, with broad-based core year-over-year growth of 11% led by Crane Currency, our defense electronics business, and Engineered Materials."
Mitchell noted that orders also improved substantially at Crane Payment Innovations.
The chief executive cautioned, however, that while Crane is confident in a strong 2021 recovery, the company is still managing through sporadic and isolated ongoing Covid-19 related logistics and supply chain disruptions due to the recent global spike in infection rates, which have caused some shipping delays at the end of the fourth quarter.
Payment & Merchandising Technologies
In Crane's Payment & Merchandising Technologies segment, which includes Crane Payment Innovations, sales in the fourth quarter were $283 million, decreasing $32 million, or 10%. The segments operating profit margin declined to 11.2%, from 16.7% last year, primarily reflecting the impact of lower volumes, partially offset by productivity, benefits from cost-saving measures and a favorable product mix.
Excluding Special Items, operating profit margin decreased to 14.7%, from 17.6% last year. Payment & Merchandising Technologies order backlog was $348 million at Dec. 31, 2020, compared with $311 million at Dec. 31, 2019. Excluding the impact of foreign exchange, fourth-quarter backlog increased 4% driven by strength in the Crane Payment Innovations business.
On a sequential basis, excluding the impact of foreign currency, fourth quarter segment backlog increased 23% and orders increased 35% compared to third quarter, with broad-based strength across Crane Payment Innovations and Crane Currency. Segment orders in December, excluding the impact of foreign currency, were higher than any other month during 2020.
FY 2020 Results – All Segments
Full-year 2020 GAAP earnings per diluted share (EPS) of $3.08, compared with $2.20 in 2019. Full-year 2019 GAAP EPS included, among other Special Items, an after-tax net asbestos provision of $181 million, or $2.98 per share. Excluding Special Items, full year 2020 EPS was $3.84, compared with $6.02 in 2019.
Full-year 2020 sales were $2.94 billion, a decline of 11% compared with 2019. The sales decline was comprised of a $565 million, or 17%, decline in core sales, partially offset by a $212 million, or 6%, benefit from acquisitions and slightly favorable foreign exchange. The core sales decline was attributable to Covid-19 related macroeconomic factors.
Full-year 2020 operating profit was $263 million compared to $210 million in 2019. Operating profit margin was 9% in 2020 compared to 6.4% in 2019. Excluding Special Items, 2020 operating profit was $323 million compared to $494 million in 2019. Excluding Special Items, operating profit margin was 11.0% compared to 15.0% in 2019.
Click here to see Crane Co.'s full announcement and non-GAAP financial measures tables.
