Diversified machine manufacturer
) reported mixed results for the second quarter of 2013.
Recurring earnings per share for the quarter came in at $1.06,
increasing 10.4% from 96 cents recorded in the year-ago quarter,
led by increased margins. Recurring earnings beat the Zacks
Consensus Estimate of $1.05 by a penny.
On a GAAP basis, the company reported quarterly earnings of 93
cents per share from continuing operations compared with $1.07
per share in second quarter 2012.
Revenues in the reported quarter decreased 1.4% year over year
to $648.7 million from $657.7 million in the year-ago period as a
result of a decline in core sales and adverse impact of foreign
currency translation. Sales also comprehensively missed the Zacks
Consensus Estimate of $666.0 million.
Crane's cost of sales in the quarter fell 2.3% to $426.0
million. Selling, general and administrative expenses represented
20.6% of sales at $133.9 million. Adjusted operating profit
increased 13.7% in the quarter to $95.7 million. Adjusted
operating margin was 14.8% in the reported quarter, up 200 basis
points (bps) year over year.
Aerospace & Electronics
segment generated revenues of $172.4 million in the reported
quarter compared with $178.6 million in the year-ago quarter. The
decline was brought about by downward trends in the Aerospace
Group as well as Electronics Group sales. Moreover, lower margins
in the Electronics Group offset the high margins of Aerospace
Group. The segment recorded an operating margin of 21.5%,
decreasing 30 bps year over year.
segment's sales improved 5.9% year over year to $57.7 million,
resulting from higher sales to the recreational vehicle equipment
manufacturers. Adjusted operating profit margin increased 380 bps
to 15.9% due to higher sales and savings achieved from 2012
Revenue from the
was recorded at $84.8 million, down 13.1% year over year.
Adjusted operating profit margin dropped 120 bps to 10.5%, due to
lower sales of the Vending Solutions business.
segment revenue increased 2.1% to $333.8 million owing to higher
core sales which were offset by a negative foreign currency
impact. The repositioning activities undertaken in 2012 improved
the adjusted operating profit margin by 340 bps to 16.2%.
Exiting the second quarter, Crane's cash and cash equivalents
were $420.9 million, against $384.6 million at the close of the
preceding quarter. Long-term debt remained flat at $399.1 million
with the first quarter of 2013.
Cash provided by operating activities was $30.9 million in the
quarter, declining from the $58.9 million provided in the
year-ago quarter. Capital expenditure in the quarter remained
flat from prior-year period at $6.6 million.
In the reported quarter, Crane increased its quarterly
dividend by 7.1% to 30 cents a share from 28 cents a share.
Based on the lower-than-expected revenue growth, Crane lowered
the higher end of the earnings expectations for 2013. Earnings
per share for the year are now expected to be in the range of
$4.10 - $4.25 compared with $4.10 - $4.30 expected earlier. Crane
reaffirmed its free cash flow guidance in the range of $190
million to $220 million in 2013.
Crane received an approval from the European Commission for
the company's pending acquisition of privately-owned MEI Conlux
Holdings, subject to certain conditions. Crane is required to
provide remedies related to the divestiture of B2B bill recycler
product line and licensing in Europe for the Currenza C
coin recycler product line. Both the product lines fall under the
Merchandising Systems segment. Subject to the satisfaction of the
criteria, the acquisition is expected to take place in the fourth
quarter of 2013.
Other Stocks to Consider
General Electric Company
) released its second quarter results on Jul 19, 2013. The
company reported earnings per share of 36 cents, beating the
Zacks Consensus Estimate of 35 cents by a penny.
Carlisle Companies Incorporated
) is expected to release its second quarter results before the
market opens on Jul 23, 2013. The Zacks Consensus Estimate for
the quarter is $1.34.
Macquarie Infrastructure Company LLC
) is expected to release its second quarter results after the
market closes on Jul 31, 2013. The Zacks Consensus Estimate for
the quarter is 97 cents.
Crane currently carries a Zacks Rank #3 (Hold).
CRANE CO (CR): Free Stock Analysis Report
CARLISLE COS IN (CSL): Free Stock Analysis
GENL ELECTRIC (GE): Free Stock Analysis
MACQUARIE INFRA (MIC): Free Stock Analysis
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