Crane Co. Q2 Profit Decreases; Reduces 2015 Adj. EPS Guidance - Quick Facts

(RTTNews) - Crane Co. (CR), a diversified manufacturer of highly engineered industrial products, reported second quarter net income attributable to shareholders of $55.8 million compared to $59.7 million, a year ago. EPS was $0.95 compared to $1.00. Excluding special items, second quarter 2015 earnings per share was $1.06.

On average, eight analysts polled by Thomson Reuters expected the company to report profit per share of $1.06 for the quarter. Analysts' estimates typically exclude special items.

Sales were $711 million, a decrease of 5% compared to $750 million in the second quarter of 2014. The company said the sales decline was comprised of a $39 million, or 5%, impact from unfavorable foreign exchange; and a divestiture impact of $4 million, or 1%; partially offset by positive core sales growth of $5 million, or 1%. Analysts expected revenue of $704.96 million for the quarter.

The company reduced its 2015 earnings per share guidance, excluding special items, to a range of $4.10-$4.30, from the prior range of $4.30-$4.50. Management now expects 2015 core sales in a range of down 1% to up 1%, compared to its prior range of flat to up 2%. On a GAAP basis, EPS is now expected to be $3.90-$4.10 versus a prior range of $4.17-$4.37. Analysts expect the company to report earnings per share of $4.35.

Max Mitchell, Crane Co. CEO, said: "Order rates improved sequentially during the first quarter, but that trend did not continue into the second quarter. We now expect Fluid Handling sales to remain depressed for the balance of the year given an environment of continued project delays and soft end market conditions. Consequently, we are reducing the midpoint of our EPS guidance range by $0.20. We are taking appropriate cost actions in response to the current market weakness."

Crane Co. announced its regular quarterly dividend of $0.33 per share for the third quarter of 2015. The dividend is payable on September 9, 2015 to shareholders of record as of the close of business on August 31, 2015.