Crane Q4 Profit Meets View, But Sales Miss; Issues Weak 2015 Outlook

(RTTNews) - Industrial products maker Crane Co. (CR) reported Monday a profit for the fourth quarter that grew from last year, reflecting lower charges, improved operating margins, and sales growth. Adjusted earnings per share matched analysts' expectations, while net sales missed their estimates. The company also provided earnings and revenue guidance for the full-year 2015, below Street view.

"Our fourth quarter results were in line with our most recent guidance," President and CEO Max Mitchell said in a statement. Stamford, Connecticut-based Crane reported net income attributable to common shareholders of $56.21 million or $0.95 per share for the fourth quarter, higher than $49.71 million or $0.84 per share in the prior-year quarter.

Results for the latest quarter include net special items of $0.18 per share, while the year-ago quarter included net special items of $0.20 per share.

Excluding items, adjusted net earnings for the quarter was $1.13 per share, compared to $1.04 per share in the year-ago quarter.

On average, seven analysts polled by Thomson Reuters expected the company to report earnings of $1.13 per share for the quarter. Analysts' estimates typically exclude special items.

Net sales for the quarter grew 7.2 percent to $730.65 million from $681.45 million in the same quarter last year, but missed six Wall Street analysts' consensus estimate of $736.72 million.

The company noted that sales growth comprised of flat core sales, sales from acquisitions of 10.0 percent, partially offset by unfavorable foreign exchange of 2.8 percent.

Segment wise, aerospace & electronics sales for the quarter declined 2.4 percent to $182.33 million, while payment and merchandising technologies sales grew 44.5 percent to $177.21 million from a year ago.

Engineered materials sales increased 9.3 percent to $57.22 million, while fluid handling sales decreased 1.8 percent to $313.91 million last year.

The company's operating margin for the quarter improved 10 basis points from last year to 12.3 percent.

Crane's total backlog at the end of the quarter was $818.08 million, up from $761.73 million at the end of the same period last year.

Looking ahead to fiscal 2015, Crane expects adjusted net earnings in a range of $4.45 to $4.65 per share, on projected net sales of about $2.85 billion, reflecting core sales of 0 to +2 percent, more than offset by unfavorable foreign exchange of -2 to -4 percent, and the impact from 2014 divestitures of -0.5 percent.

Street is currently looking for full-year 2015 earnings of $4.79 per share on annual revenues of $3.01 billion.

CR closed Monday's regular trading at $58.47, up $1.05 or 1.83% on a volume of 0.47 million shares.