Crane Co., a diversified manufacturer of highly engineered industrial products, reported first-quarter 2022 financial results and reaffirmed its full-year 2022 outlook excluding special items.
First-quarter 2022 highlights
- GAAP earnings from continuing operations per diluted share (EPS) of $1.64 compared to $1.75 in the first quarter of 2021.
- Excluding special items, record EPS from continuing operations (adjusted EPS) of $1.81 increased 15% compared to $1.57 in the first quarter of 2021.
- Core year-over-year sales growth of 5% and core year-over-year order growth of 12%.
- Completed previously announced $300 million share repurchase program.
- Signed an agreement to divest Crane Supply, the company's Canadian distribution business.
- Adjusting GAAP EPS from continuing operations guidance to $6.35-$6.75 to reflect expected transaction related costs.
- Reiterating EPS from continuing operations guidance, excluding special items, of $7.00-$7.40.
Max Mitchell, Crane Co. president and chief executive officer, stated: “This quarter’s results are another example of how we have positioned our businesses to drive accelerating growth, with strong core sales and orders growth supporting our 15% increase in adjusted EPS. Sales and order growth were driven by continued recovery across end markets, as well as our continued success with new product introductions and commercial excellence initiatives. Performance was solid across all three segments, and we remain confident in our ability to achieve our full-year guidance.
"Today, we also announced that we signed an agreement to divest Crane Supply for CAD 380 million. This decision further demonstrates our commitment to reshaping and restructuring our portfolio to accelerate growth, building on our prior announcement to divest Engineered Materials. The Crane Supply transaction will also further streamline our Process Flow Technologies business, with greater focus on manufacturing highly engineered products for its core target markets: chemical, pharmaceutical, water and wastewater, and general industrial.
Mr. Mitchell concluded: "We also continue to make progress towards our planned separation into two independent, publicly traded companies that we announced on March 30, and that we believe will unlock substantial value for our shareholders. As we move forward, shareholders will see how post-separation, both Crane NXT and Crane Co. will be positioned to further accelerate core growth and to create value through their independently optimized capital allocation strategies. The separation marks a new beginning for Crane, and the creation of two exciting stories."
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Sales of $333 million decreased $5 million, or 1%, driven by a $9 million, or 3%, impact from unfavorable foreign exchange, partially offset by a $4 million, or 1%, increase in core sales. Operating profit margin decreased slightly to 25.3%, from 25.4% last year. Excluding special items, operating profit margin was 25.3%, unchanged from the prior year. During the quarter, stronger pricing offset the impact of higher inflation.