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Crane Co. Reports 2019 Results and Provides 2020 Guidance

Highlights from Full Year 2019 Results and 2020 Guidance:

  • GAAP earnings per diluted share (EPS) of $2.20, inclusive of a $2.98 per share charge related to a non-cash true-up of the Company's asbestos liability, compared to $5.50 in 2018.
  • Excluding Special Items, EPS of $6.02 increased slightly compared to $5.99 in 2018.
  • GAAP operating profit of $210 million and GAAP operating margin of 6.4%.
  • Excluding Special Items, operating profit was a record $494 million and operating margin was a record 15.0%.
  • Record free cash flow of $325 million (cash provided by operating activities less capital spending).
  • Completed $80 million of share repurchases during the fourth quarter of 2019.
  • Announcing a 10% dividend increase.
  • Initiated a new round of proactive repositioning actions in our Fluid Handling business expected to generate $10 million of savings in 2022.
  • Signed a definitive agreement to acquire CIRCOR's Instrumentation & Sampling (I&S) business for $172 million on a cash-free and debt-free basis as a strategic bolt-on to our process valve business.
  • Acquired Cummins Allison Corp. on December 31, 2019 for $160 million on a cash-free and debt-free basis as a strategic bolt-on to our Crane Payment Innovations business.
  • Introducing 2020 GAAP EPS guidance of $5.75-$6.05.
  • Excluding Special Items, 2020 EPS guidance is $6.20-$6.50.

Crane Co. (NYSE:CR), a diversified manufacturer of highly engineered industrial products, reported full year and fourth quarter 2019 financial results, and provided its 2020 outlook.

"We finished 2019 strong, with solid operational performance across our businesses, and we took several other actions to further strengthen Crane for continued profitable growth," said Max Mitchell, Crane Co. President and Chief Executive Officer. "In addition to solid progress on numerous growth and productivity initiatives last year, we delivered a record $325 million of free cash flow. We also repurchased $80 million of shares during the fourth quarter, and today, we raised our dividend by 10%, further reflecting confidence in our long-term outlook."

"At the end of 2019, we commenced additional proactive repositioning actions in our Fluid Handling business, including additional facility closures to better geographically align our manufacturing footprint with customer needs. These actions are expected to generate $10 million of annual savings by 2022, and are incremental to the previously disclosed 2017 repositioning actions.

"We were also active last quarter on inorganic growth opportunities. As previously announced, we signed a definitive agreement in December 2019 to acquire CIRCOR's I&S business for $172 million on a cash-free and debt-free basis, and in December 2019, we acquired Cummins Allison for $160 million on a cash-free and debt-free basis. I&S is a good bolt-on to our process valve business adding a broad range of mission-critical fluid control instrumentation and sampling solutions for severe service applications in chemical, refining, oil & gas, and industrial markets. Cummins Allison is a nice addition to our Crane Payment Innovations (CPI) business, adding higher-speed and back-office banknote and coin counting, sorting and validation solutions aligned with CPI's end markets in retail, gaming and financial services. Both acquisitions are expected to meet Crane's strict financial return criteria for acquisitions, and together are expected to be accretive to adjusted EPS by approximately $0.15 this year, growing to approximately $0.25 by 2022. Even after these actions, Crane retains substantial financial capacity for further capital deployment throughout 2020 and beyond."

"Today, we are also introducing 2020 EPS guidance, excluding Special items, of $6.20-$6.50. At Fluid Handling, we expect continued margin expansion despite a low-growth end market environment. We expect Payment & Merchandising Technologies to deliver positive organic growth in 2020 with underlying margin expansion despite previously discussed headwinds from temporarily lower demand at Crane Currency from the U.S. Government; Cummins Allison should also contribute to sales and adjusted operating profit growth, although it will be initially dilutive to segment margins. Momentum continues across nearly all solutions and end markets at Aerospace & Electronics, but guidance does include a decline in total 2020 sales and margins reflecting the temporary 737-MAX production pause and revised rate assumptions that Boeing announced in late December."

Mr. Mitchell concluded: "Overall, I am proud of our operational performance, and excited about our prospects as we continue to deliver on growth investments and new product development, positioning Crane for years of profitable growth. Based on our current medium-term outlook, including both the completion of the U.S. Government's currency destocking and resumption of 737-MAX production during 2020, I believe that Crane is on-track to achieve our previously disclosed 2021 adjusted EPS target of $7.50-$8.00." (Please see the attached Non-GAAP Financial Measures tables for a detailed reconciliation of reported results to adjusted measures.)

Fourth Quarter 2019 Results

Fourth quarter 2019 GAAP net loss of $1.89 per share compared to earnings of $1.46 per diluted share in the fourth quarter of 2018. Excluding Special Items, 2019 fourth quarter EPS of $1.58 compared to $1.64 in the fourth quarter of last year. (Please see the attached Non-GAAP Financial Measures tables for a detailed reconciliation of reported results to adjusted measures.)

Fourth quarter 2019 sales were $838 million, a slight decline compared to the fourth quarter of 2018. The sales decline was comprised of $4 million of unfavorable foreign exchange, partially offset by $2 million of core growth.

Fourth quarter 2019 operating loss was $135 million, compared to operating profit of $110 million in the fourth quarter of 2018. Excluding Special Items, operating profit of $128 million increased 3% compared to $125 million in the fourth quarter of last year. Excluding Special Items, operating margin of 15.3% increased 50 basis points compared to 14.8% last year. (Please see the attached Non-GAAP Financial Measures tables for a detailed reconciliation of reported results to adjusted measures.)

Full Year 2019 Results

Full year 2019 GAAP EPS was $2.20, compared to $5.50 in 2018. Excluding Special Items, 2019 EPS increased slightly to $6.02, compared to $5.99 in 2018. (Please see the attached Non-GAAP Financial Measures tables for a detailed reconciliation of reported results to adjusted measures.)

Full year 2019 sales were $3.3 billion, a decline of 2% compared to 2018. The sales decline was comprised of $53 million, or 2%, of unfavorable foreign exchange, and a $13 million decline in core sales, partially offset by a $4 million net benefit from acquisitions.

Full year 2019 operating profit was $210 million, compared to $441 million in 2018. Operating margin of 6.4% compared to 13.2% last year. Excluding Special Items, record operating profit of $494 million increased 2% compared to $485 million in 2018. Excluding Special Items, record operating margin of 15.0% increased 50 basis points compared to 14.5% last year. (Please see the attached Non-GAAP Financial Measures tables for a detailed reconciliation of reported results to adjusted measures.)

Full Year Cash Flow and Other Financial Metrics

Cash provided by operating activities for full year 2019 was $394 million, compared to $414 million in 2018. Full year 2019 free cash flow (cash provided by operating activities less capital spending) was $325 million, compared to $305 million of free cash flow last year. The Company completed $80 million of share repurchases during the fourth quarter of 2019. (Please see the attached Non-GAAP Financial Measures tables for a detailed reconciliation of reported results to adjusted measures.)

The Company's cash position was $394 million at December 31, 2019, compared to $343 million at December 31, 2018. Total debt was $991 million at December 31, 2019, compared to $949 million at December 31, 2018.

Special Items including Updated Asbestos Liability

Full year and fourth quarter 2019 results include an after-tax net asbestos provision of $181 million, or $2.98 per share for the full-year. This provision reflects a non-cash update to our asbestos liability estimate reflecting trends and average settlement values subsequent to our last asbestos estimate update on December 31, 2016. The liability estimate continues to cover all pending claims and future claims projected to be filed against us through the generally accepted end point of 2059.

Rich Maue, Crane Co. Senior Vice President and Chief Financial Officer, stated: "In December 2016, we updated our asbestos liability estimate and extended the time horizon of that liability through the generally accepted end point in 2059. The December 2016 liability estimate update was completed shortly after the New York State Court of Appeals issued its opinion in Dummitt v. Crane Co., and it reflected our best estimate of Dummitt's impact on asbestos claims in New York State. Based on our experience in the post-Dummitt litigation environment over the last three years, we are now able to further refine our estimates of indemnity payments and defense costs, resulting in an additional non-cash after-tax net asbestos provision of $181 million."

"We expect asbestos related annual after-insurance, after-tax cash outflow of approximately $40 million in 2020, consistent with the average cash outflow in recent years, and with annual cash outflows stable to gradually declining over time. While this is a 'lifetime' estimate, due to uncertainties in the asbestos litigation environment, as well as uncertainties inherent in the estimation process, future reviews may result in additional adjustments to our total asbestos-related liability."

Mr. Maue concluded: "In addition to aggressively managing our asbestos liability, we have also pursued a strategy to 'outgrow' our asbestos liability, and we have delivered substantial free cash flow growth over the last decade as our asbestos-related cash outflow has declined. For context, our asbestos-related cash outflow net of insurance peaked in 2011 at $79 million, and in that year, we generated $115 million of free cash flow; in 2019, asbestos related cash outflow net of insurance was $42 million ($33 million after-tax), and we generated a record $325 million in free cash flow." For additional information, please see the Company's Form 8-K filed with the SEC today. (Please see the attached Non-GAAP Financial Measures tables for a detailed reconciliation of reported results to adjusted measures.)

In addition to the aforementioned asbestos provision, Special Items for the full year 2019 included the following after-tax items: an environmental provision of $14.9 million, or $0.25 per share; repositioning related charges of $25.6 million, or $0.43 per share; a non-cash pension cost adjustment of $6.3 million, or $0.10 per share; and, acquisitions related items, net, of $3.8 million, or $0.06 per share. In addition to the aforementioned asbestos provision, Special Items for the fourth quarter 2019 included the following after-tax items: an environmental provision of $14.9 million, or $0.25 per share; repositioning related charges of $9.1 million, or $0.15 per share; a non-cash pension cost adjustment of $1.8 million, or $0.03 per share; and, acquisitions related items, net, of $1.2 million, or $0.02 per share. Special items for the full year 2018 included $29.5 million in net after-tax charges, or $0.49 per share, and Special items for the fourth quarter 2018 included $10.8 million in net after-tax charges, or $0.18 per share. (Please see the attached Non-GAAP Financial Measures tables for a detailed reconciliation of reported results to adjusted measures.)

Fourth Quarter 2019 Segment Results

All comparisons detailed in this section refer to operating results for the fourth quarter 2019 versus the fourth quarter 2018.

Fluid Handling

 

 

Fourth Quarter

 

Change

(dollars in millions)

 

2019

 

2018

 

 

 

 

Sales

 

$

277

 

 

$

280

 

 

$

(3

)

 

(1

%)

 

 

 

 

 

 

 

 

 

Operating Profit

 

$

25

 

 

$

31

 

 

$

(6

)

 

(19

%)

Operating Profit, before Special Items*

 

$

37

 

 

$

34

 

 

$

3

 

 

9

%

 

 

 

 

 

 

 

 

 

Profit Margin

 

9.0

%

 

11.0

%

 

 

 

 

Profit Margin, before Special Items*

 

13.5

%

 

12.3

%

 

 

 

 

 

 

 

 

 

 

 

 

 

*Please see the attached Non-GAAP Financial Measures tables

Sales decreased $3 million, or 1%, driven by $1 million of unfavorable foreign exchange and $1 million of core sales decline. Operating margin declined to 9.0%, compared to 11.0% last year, primarily reflecting higher repositioning costs, lower volumes, and adverse mix, partially offset by strong productivity and repositioning benefits. Excluding Special Items, operating margin increased to 13.5%, a 120 basis point increase compared to 12.3% last year primarily reflecting strong productivity and repositioning benefits, partially offset by lower volumes and adverse mix. Fluid Handling order backlog was $267 million at December 31, 2019, compared to $280 million at December 31, 2018.

Payment & Merchandising Technologies

 

 

Fourth Quarter

 

Change

(dollars in millions)

 

2019

 

2018

 

 

 

 

Sales

 

$

315

 

 

$

313

 

 

$

2

 

 

1

%

 

 

 

 

 

 

 

 

 

Operating Profit

 

$

53

 

 

$

46

 

 

$

6

 

 

14

%

Operating Profit, before Special Items*

 

$

55

 

 

$

57

 

 

$

(1

)

 

(2

%)

 

 

 

 

 

 

 

 

 

Profit Margin

 

16.7

%

 

14.7

%

 

 

 

 

Profit Margin, before Special Items*

 

17.6

%

 

18.1

%

 

 

 

 

 

 

 

 

 

 

 

 

 

*Please see the attached Non-GAAP Financial Measures tables

Sales increased $2 million, or 1%, driven by $5 million, or 2%, of core growth, partially offset by $3 million, or 1%, of unfavorable foreign exchange. Operating margin improved to 16.7%, from 14.7% last year and 14.1% last quarter, with the year-over-year improvement primarily reflecting strong productivity, repositioning benefits, and lower acquisition related charges, partially offset by substantially adverse product mix. Excluding Special Items, operating margins were 17.6% compared to 18.1% last year and 14.5% last quarter. The year-over-year change primarily reflects adverse product mix, partially offset by strong productivity and repositioning benefits.

Aerospace & Electronics

 

 

Fourth Quarter

 

Change

(dollars in millions)

 

2019

 

2018

 

 

 

 

Sales

 

$

203

 

 

$

197

 

 

$

6

 

 

3

%

 

 

 

 

 

 

 

 

 

Operating Profit

 

$

48

 

 

$

44

 

 

$

4

 

 

9

%

Operating Profit, before Special Items*

 

$

48

 

 

$

45

 

 

$

4

 

 

8

%

 

 

 

 

 

 

 

 

 

Profit Margin

 

23.7

%

 

22.5

%

 

 

 

 

Profit Margin, before Special Items*

 

23.8

%

 

22.8

%

 

 

 

 

 

 

 

 

 

 

 

 

 

*Please see the attached Non-GAAP Financial Measures tables

Sales increased $6 million, or 3%, driven by higher core sales. Operating margin improved to 23.7%, from 22.5% last year, primarily reflecting strong productivity and operating leverage on higher volumes. Excluding Special Items, operating margin improved to 23.8%, up from 22.8% last year. Aerospace & Electronics' order backlog was a record $567 million at December 31, 2019 compared to $447 million at December 31, 2018.

Engineered Materials

 

 

Fourth Quarter

 

Change

(dollars in millions)

 

2019

 

2018

 

 

 

 

Sales

 

$

43

 

 

$

51

 

 

$

(7

)

 

(14

%)

 

 

 

 

 

 

 

 

 

Operating Profit

 

$

4

 

 

$

5

 

 

$

(1

)

 

(24

%)

 

 

 

 

 

 

 

 

 

Profit Margin

 

9.4

%

 

10.7

%

 

 

 

 

Sales decreased $7 million, or 14%, driven primarily by lower sales to Recreational Vehicle customers. Operating margin declined to 9.4%, from 10.7% last year, primarily reflecting lower volumes.

Introducing 2020 Guidance

We are introducing full year 2020 GAAP EPS guidance in a range of $5.75-$6.05. Excluding Special items, full year 2020 EPS guidance is $6.20-$6.50. Sales are expected to be approximately $3.5 billion, reflecting a net benefit from acquisitions of approximately 8%, partially offset by a slight decline in core sales, and an unfavorable foreign exchange impact of approximately 0.5% to 1%. Guidance reflects contributions from both the acquisition of Cummins Allison Corp. which closed on December 31, 2019 and the pending acquisition of I&S which is expected to close early in the first quarter of 2020, as well as the temporary impact of the 737-MAX production halt. Full year 2020 free cash flow (cash provided by operating activities less capital spending) is expected to be in a range of $330 million to $360 million. (Please see the attached Non-GAAP Financial Measures tables.)

Additional guidance details will be provided at the Company's Annual Investor Day conference scheduled for February 27, 2020.

Additional Information

Additional information with respect to the Company’s asbestos liability and related accounting provisions and cash requirements is set forth in the Current Report on Form 8-K filed with a copy of this press release.

Conference Call

Crane Co. has scheduled a conference call to discuss the fourth quarter financial results on Tuesday, January 28, 2020 at 10:00 A.M. (Eastern). All interested parties may listen to a live webcast of the call at http://www.craneco.com. An archived webcast will also be available to replay this conference call directly from the Company’s website under Investors, Events & Presentations. Slides that accompany the conference call will be available on the Company’s website.

Crane Co. is a diversified manufacturer of highly engineered industrial products. Founded in 1855, Crane Co. provides products and solutions to customers in the chemicals, oil & gas, power, automated payment solutions, banknote design and production and aerospace & defense markets, along with a wide range of general industrial and consumer related end markets. The Company has four business segments: Fluid Handling, Payment & Merchandising Technologies, Aerospace & Electronics and Engineered Materials. Crane Co. has approximately 12,000 employees in the Americas, Europe, the Middle East, Asia and Australia. Crane Co. is traded on the New York Stock Exchange (NYSE:CR). For more information, visit www.craneco.com.

This press release may contain forward-looking statements as defined by the Private Securities Litigation Reform Act of 1995. These statements are based on the management’s current beliefs, expectations, plans, assumptions and objectives regarding Crane Co.’s future financial performance and are subject to significant risks and uncertainties. Any discussions contained in this press release, except to the extent that they contain historical facts, are forward-looking and accordingly involve estimates, assumptions, judgments and uncertainties. There are a number of factors that could cause actual results or outcomes to differ materially from those addressed in these forward-looking statements. Such factors are detailed in the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2018 and subsequent reports filed with the Securities and Exchange Commission. Such reports are available on the Securities Exchange Commission’s website (www.sec.gov). Crane Co. does not undertake to update any forward-looking statements.

(Financial Tables Follow)

CRANE CO.
Income Statement Data
(in millions, except per share data)

 

 

 

Three Months Ended

 

 

Twelve Months Ended

 

 

 

December 31,

 

 

December 31,

 

 

 

2019

 

2018

 

 

2019

 

2018

Net sales:

 

 

 

 

 

 

 

 

 

 

Fluid Handling

 

 

$

277.0

 

 

$

279.7

 

 

 

$

1,117.4

 

 

$

1,101.8

 

Payment & Merchandising Technologies

 

 

314.6

 

 

312.8

 

 

 

1,158.3

 

 

1,257.0

 

Aerospace & Electronics

 

 

202.5

 

 

196.5

 

 

 

798.8

 

 

743.5

 

Engineered Materials

 

 

43.4

 

 

50.7

 

 

 

208.6

 

 

243.2

 

Total net sales

 

 

$

837.5

 

 

$

839.7

 

 

 

$

3,283.1

 

 

$

3,345.5

 

 

 

 

 

 

 

 

 

 

 

 

Operating (loss) profit:

 

 

 

 

 

 

 

 

 

 

Fluid Handling

 

 

$

24.9

 

 

$

30.8

 

 

 

$

131.7

 

 

$

118.8

 

Payment & Merchandising Technologies

 

 

52.5

 

 

46.1

 

 

 

177.3

 

 

186.0

 

Aerospace & Electronics

 

 

48.0

 

 

44.2

 

 

 

189.4

 

 

164.2

 

Engineered Materials

 

 

4.1

 

 

5.4

 

 

 

26.8

 

 

37.8

 

Corporate

 

 

(17.0

)

 

(16.4

)

 

 

(66.9

)

 

(65.5

)

Asbestos provision

 

 

(229.0

)

 

 

 

 

(229.0

)

 

 

Environmental provision

 

 

(18.9

)

 

 

 

 

(18.9

)

 

 

Total operating (loss) profit

 

 

(135.4

)

 

110.1

 

 

 

210.4

 

 

441.3

 

 

 

 

 

 

 

 

 

 

 

 

Interest income

 

 

0.8

 

 

0.6

 

 

 

2.7

 

 

2.3

 

Interest expense

 

 

(11.8

)

 

(11.1

)

 

 

(46.8

)

 

(50.9

)

Miscellaneous, net

 

 

0.6

 

 

4.9

 

 

 

4.4

 

 

18.7

 

(Loss) income before income taxes

 

 

(145.8

)

 

104.5

 

 

 

170.7

 

 

411.4

 

(Benefit from) provision for income taxes

 

 

(33.3

)

 

15.4

 

 

 

37.1

 

 

75.9

 

Net (loss) income before allocation to noncontrolling interests

 

 

(112.5

)

 

89.1

 

 

 

133.6

 

 

335.5

 

 

 

 

 

 

 

 

 

 

 

 

Less: Noncontrolling interest in subsidiaries' earnings (loss)

 

 

0.1

 

 

(0.1

)

 

 

0.3

 

 

(0.1

)

 

 

 

 

 

 

 

 

 

 

 

Net (loss) income attributable to common shareholders

 

 

$

(112.6

)

 

$

89.2

 

 

 

$

133.3

 

 

$

335.6

 

 

 

 

 

 

 

 

 

 

 

 

Share data:

 

 

 

 

 

 

 

 

 

 

(Loss) earnings per diluted share

 

 

$

(1.89

)

 

$

1.46

 

 

 

$

2.20

 

 

$

5.50

 

 

 

 

 

 

 

 

 

 

 

 

Average diluted shares outstanding

 

 

59.5

 

 

60.9

 

 

 

60.6

 

 

61.0

 

Average basic shares outstanding

 

 

59.5

 

 

59.5

 

 

 

59.8

 

 

59.6

 

 

 

 

 

 

 

 

 

 

 

 

Supplemental data:

 

 

 

 

 

 

 

 

 

 

Cost of sales

 

 

$

794.6

 

 

$

544.6

 

 

 

$

2,352.0

 

 

$

2,156.2

 

Selling, general & administrative

 

 

178.3

 

 

170.9

 

 

 

720.7

 

 

713.4

 

Asbestos provision *

 

 

229.0

 

 

 

 

 

229.0

 

 

 

Environmental provision *

 

 

18.9

 

 

 

 

 

18.9

 

 

 

Acquisition and integration related charges *

 

 

1.5

 

 

8.4

 

 

 

5.2

 

 

19.8

 

Repositioning related charges *

 

 

14.1

 

 

5.7

 

 

 

30.3

 

 

14.7

 

Depreciation and amortization **

 

 

29.3

 

 

35.9

 

 

 

113.5

 

 

120.0

 

Stock-based compensation expense **

 

 

5.5

 

 

5.5

 

 

 

22.3

 

 

21.6

 

* For 2019, amounts included within cost of sales and selling, general & administrative costs.

** For 2019 and 2018, amounts included within cost of sales and selling, general & administrative costs.

Totals may not sum due to rounding

CRANE CO.
Condensed Balance Sheets
(in millions)

 

 

December 31,
2019

 

December 31,
2018

Assets

 

 

 

 

Current assets

 

 

 

 

Cash and cash equivalents

 

$

393.9

 

 

$

343.4

 

Accounts receivable, net

 

560.6

 

 

515.8

 

Current insurance receivable - asbestos

 

14.1

 

 

16.0

 

Inventories, net

 

456.7

 

 

411.5

 

Other current assets

 

75.2

 

 

76.2

 

Total current assets

 

1,500.5

 

 

1,362.9

 

 

 

 

 

 

Property, plant and equipment, net

 

615.8

 

 

599.1

 

Long-term insurance receivable - asbestos

 

83.6

 

 

75.0

 

Other assets

 

766.1

 

 

602.0

 

Goodwill

 

1,472.2

 

 

1,403.7

 

 

 

 

 

 

Total assets

 

$

4,438.2

 

 

$

4,042.7

 

 

 

 

 

 

Liabilities and Equity

 

 

 

 

Current liabilities

 

 

 

 

Notes payable and current maturities of long-term debt

 

$

149.4

 

 

$

6.9

 

Accounts payable

 

314.5

 

 

329.2

 

Current asbestos liability

 

65.0

 

 

66.0

 

Accrued liabilities

 

371.7

 

 

337.1

 

Income taxes

 

13.0

 

 

1.0

 

Total current liabilities

 

913.6

 

 

740.2

 

 

 

 

 

 

Long-term debt

 

842.0

 

 

942.3

 

Long-term deferred tax liability

 

73.8

 

 

53.2

 

Long-term asbestos liability

 

646.6

 

 

451.3

 

Other liabilities

 

485.9

 

 

328.6

 

 

 

 

 

 

Total equity

 

1,476.3

 

 

1,527.1

 

 

 

 

 

 

Total liabilities and equity

 

$

4,438.2

 

 

$

4,042.7

 

Totals may not sum due to rounding

CRANE CO.
Condensed Statements of Cash Flows
(in millions)

 

 

Three Months Ended
December 31,

 

Twelve Months Ended
December 31,

 

 

2019

 

2018

 

2019

 

2018

Operating activities:

 

 

 

 

 

 

 

 

Net (loss) income attributable to common shareholders

 

$

(112.6

)

 

$

89.2

 

 

$

133.3

 

 

$

335.6

 

Noncontrolling interest in subsidiaries' earnings (loss)

 

0.1

 

 

(0.1

)

 

0.3

 

 

(0.1

)

Net (loss) income before allocations to noncontrolling interests

 

(112.5

)

 

89.1

 

 

133.6

 

 

335.5

 

Asbestos provision

 

229.0

 

 

 

 

229.0

 

 

 

Environmental provision

 

18.9

 

 

 

 

18.9

 

 

 

Loss on deconsolidation of joint venture

 

 

 

1.7

 

 

1.2

 

 

1.7

 

Realized gain on marketable securities

 

 

 

 

 

(1.1

)

 

 

Depreciation and amortization

 

29.3

 

 

35.9

 

 

113.5

 

 

120.0

 

Stock-based compensation expense

 

5.5

 

 

5.5

 

 

22.3

 

 

21.6

 

Defined benefit plans and postretirement credit

 

(0.3

)

 

(3.4

)

 

(0.7

)

 

(15.0

)

Deferred income taxes

 

(49.8

)

 

23.2

 

 

(31.0

)

 

47.7

 

Cash provided by (used for) operating working capital

 

117.1

 

 

57.6

 

 

(40.0

)

 

16.3

 

Defined benefit plans and postretirement contributions

 

(2.7

)

 

(4.0

)

 

(8.7

)

 

(59.8

)

Environmental payments, net of reimbursements

 

(1.7

)

 

(0.9

)

 

(8.2

)

 

(6.3

)

Other

 

2.6

 

 

4.2

 

 

6.6

 

 

16.0

 

Subtotal

 

235.4

 

 

208.9

 

 

435.4

 

 

477.7

 

Asbestos related payments, net of insurance recoveries

 

(12.5

)

 

(17.5

)

 

(41.5

)

 

(63.9

)

Total provided by operating activities

 

222.9

 

 

191.4

 

 

393.9

 

 

413.8

 

 

 

 

 

 

 

 

 

 

Investing Activities:

 

 

 

 

 

 

 

 

Capital expenditures

 

(17.9

)

 

(33.2

)

 

(68.8

)

 

(108.8

)

Proceeds from disposition of capital assets

 

1.8

 

 

0.6

 

 

3.1

 

 

1.9

 

Payments for acquisitions, net of cash acquired

 

(156.2

)

 

 

 

(156.2

)

 

(648.0

)

Impact of deconsolidation of joint venture

 

 

 

2.6

 

 

(0.2

)

 

2.6

 

Purchase of marketable securities

 

 

 

 

 

(8.8

)

 

 

Proceeds from sale of marketable securities

 

 

 

 

 

9.9

 

 

 

Total used for investing activities

 

(172.3

)

 

(30.0

)

 

(221.0

)

 

(752.3

)

 

 

 

 

 

 

 

 

 

Financing Activities:

 

 

 

 

 

 

 

 

Dividends paid

 

(23.1

)

 

(20.8

)

 

(93.2

)

 

(83.5

)

Reacquisition of shares on open market

 

(79.9

)

 

(25.1

)

 

(79.9

)

 

(50.1

)

Stock options exercised, net of shares reacquired

 

0.3

 

 

3.6

 

 

2.9

 

 

16.1

 

Debt issuance costs

 

 

 

 

 

 

 

(5.4

)

Repayment of long-term debt

 

(94.9

)

 

(1.4

)

 

(99.4

)

 

(452.2

)

Repayment of short-term debt

 

(7.4

)

 

 

 

(7.4

)

 

(100.0

)

Proceeds from issuance of long-term debt

 

 

 

13.1

 

 

3.0

 

 

567.2

 

Proceeds from issuance of short-term debt

 

 

 

 

 

 

 

100.0

 

Proceeds from (repayment of) issuance of commercial paper with maturities of 90 days or less

 

124.4

 

 

(106.3

)

 

124.4

 

 

 

Proceeds from issuance of commercial paper with maturities greater than 90 days

 

25.0

 

 

 

 

25.0

 

 

 

Total used for financing activities

 

(55.6

)

 

(136.9

)

 

(124.6

)

 

(7.9

)

 

 

 

 

 

 

 

 

 

Effect of exchange rate on cash and cash equivalents

 

10.1

 

 

(4.7

)

 

2.2

 

 

(16.4

)

Increase (decrease) in cash and cash equivalents

 

5.1

 

 

19.8

 

 

50.5

 

 

(362.8

)

Cash and cash equivalents at beginning of period

 

388.8

 

 

323.6

 

 

343.4

 

 

706.2

 

Cash and cash equivalents at end of period

 

$

393.9

 

 

$

343.4

 

 

$

393.9

 

 

$

343.4

 

 

Totals may not sum due to rounding

CRANE CO.
Order Backlog
(in millions)

...

 

 

December 31,
2019

 

September 30,
2019