Crane Co. Reports 2020 Results and Provides 2021 Guidance
Crane Co. (NYSE: CR) reported its 2020 financial results and provided a positive outlook for 2021. The company anticipates adjusted EPS guidance between $4.90 and $5.10, reflecting a projected 30% growth year-over-year. Despite a 11% sales decline in 2020, driven by COVID-19 impacts, Crane saw robust order rates in December with a year-over-year growth of 11%. The firm maintained strong liquidity of $1.1 billion and achieved gross cost savings of $105 million. However, logistics disruptions persist, impacting operations moving forward.
- 2021 adjusted EPS guidance of $4.90 - $5.10, indicating 30% growth.
- December 2020 orders increased by 11% year-over-year.
- Achieved $105 million in gross cost savings in 2020.
- Strong liquidity of approximately $1.1 billion.
- Total sales declined by 11% in 2020 due to COVID-19.
- Core sales dropped by 17%, largely impacting revenue.
- Ongoing supply chain disruptions due to COVID-19 affecting shipments.
Crane Co. (NYSE: CR), a diversified manufacturer of highly engineered industrial products, reported full year and fourth quarter 2020 results, and provided its 2021 outlook.
"We are introducing 2021 adjusted EPS guidance in a range of
Mr. Mitchell continued, "We were one of a handful of industrial companies that provided guidance during 2020, and our teams executed well and delivered solid results which were in-line with what we communicated at the outset of the pandemic. We have deep and experienced leadership, paired with a strong balance sheet and a diverse portfolio of strong, durable, and differentiated businesses; that combination allowed us to once again navigate through an extremely challenging period. While we adjusted our cost base in 2020, delivering approximately
Mr. Mitchell concluded, "Most importantly, I am incredibly proud of how all of our associates across Crane performed through the pandemic, as well as in our response to the unprecedented set of circumstances we faced during 2020. That response began with the actions we took to ensure the safety and well-being of our associates. Starting in early March, we quickly adopted new safety protocols and procedures worldwide, in most cases more stringent than, and in advance of, government mandates. We also quickly adopted a new Emergency Pandemic Pay program providing additional paid time off to all Crane associates globally that were directly or indirectly impacted by COVID-19. While our cost saving initiatives did involve many tough decisions and a substantial reduction-in-force, every possible effort was made to protect and retain our associates during this challenging period given how critical they are to our long-term success. COVID-19 related challenges are continuing, but we believe that we are seeing the beginning of the end of the pandemic crisis, and we are confident in our long-term outlook and growth prospects as end markets continue to recover."
Full Year 2020 Results
Full year 2020 GAAP earnings per diluted share (EPS) of
Full year 2020 sales were
Full year 2020 operating profit was
Full Year Cash Flow, Liquidity, and Other Financial Metrics
Cash provided from operating activities in 2020 was
The Company held
Richard Maue, Crane Co. Senior Vice President and Chief Financial Officer, commented, "Our free cash flow performance during 2020 was impressive, primarily reflecting very effective management of working capital and capital expenditures. We also maintained a high level of liquidity throughout the pandemic, ensuring that we had the flexibility to continue all key strategic growth initiatives last year. That liquidity was enhanced by a
Fourth Quarter 2020 Results
Fourth quarter 2020 GAAP earnings per diluted share (EPS) of
Fourth quarter 2020 sales were
Fourth quarter 2020 operating profit was
Fourth Quarter 2020 Segment Results
All comparisons detailed in this section refer to operating results for the fourth quarter 2020 versus the fourth quarter 2019.
Fluid Handling
|
|
Fourth Quarter |
|
Change |
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(dollars in millions) |
|
2020 |
|
2019 |
|
|
|
|
|||||||
Sales |
|
$ |
258 |
|
|
$ |
277 |
|
|
$ |
(19 |
) |
|
(7 |
%) |
|
|
|
|
|
|
|
|
|
|||||||
Operating Profit |
|
$ |
24 |
|
|
$ |
25 |
|
|
$ |
(1 |
) |
|
(5 |
%) |
Operating Profit, before Special Items* |
|
$ |
28 |
|
|
$ |
37 |
|
|
$ |
(10 |
) |
|
(26 |
%) |
|
|
|
|
|
|
|
|
|
|||||||
Profit Margin |
|
9.2 |
% |
|
9.0 |
% |
|
|
|
|
|||||
Profit Margin, before Special Items* |
|
10.7 |
% |
|
13.5 |
% |
|
|
|
|
|||||
|
|
|
|
|
|
|
|
|
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*Please see the attached Non-GAAP Financial Measures tables |
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Sales of
Payment & Merchandising Technologies
|
|
Fourth Quarter |
|
Change |
||||||||||||
(dollars in millions) |
|
2020 |
|
2019 |
|
|
|
|
||||||||
Sales |
|
$ |
283 |
|
|
$ |
315 |
|
|
$ |
(32 |
) |
|
|
(10 |
%) |
Sales, including acquisition-related deferred revenue* |
|
$ |
285 |
|
|
$ |
315 |
|
|
$ |
(30 |
) |
|
|
(9 |
%) |
|
|
|
|
|
|
|
|
|
||||||||
Operating Profit |
|
$ |
32 |
|
|
$ |
53 |
|
|
$ |
(21 |
) |
|
|
(40 |
%) |
Operating Profit, before Special Items* |
|
$ |
42 |
|
|
$ |
55 |
|
|
$ |
(14 |
) |
|
|
(24 |
%) |
|
|
|
|
|
|
|
|
|
||||||||
Profit Margin |
|
11.2 |
% |
|
16.7 |
% |
|
|
|
|
||||||
Profit Margin, before Special Items* |
|
14.7 |
% |
|
17.6 |
% |
|
|
|
|
||||||
|
|
|
|
|
|
|
|
|
||||||||
*Please see the attached Non-GAAP Financial Measures tables |
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|
|
|
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Sales of
Aerospace & Electronics
|
|
Fourth Quarter |
|
Change |
||||||||||||
(dollars in millions) |
|
2020 |
|
2019 |
|
|
|
|
||||||||
Sales |
|
$ |
143 |
|
|
$ |
203 |
|
|
$ |
(59 |
) |
|
|
(29 |
%) |
|
|
|
|
|
|
|
|
|
||||||||
Operating Profit |
|
$ |
13 |
|
|
$ |
48 |
|
|
$ |
(35 |
) |
|
|
(73 |
%) |
Operating Profit, before Special Items* |
|
$ |
15 |
|
|
$ |
48 |
|
|
$ |
(33 |
) |
|
|
(69 |
%) |
|
|
|
|
|
|
|
|
|
||||||||
Profit Margin |
|
9.0 |
% |
|
23.7 |
% |
|
|
|
|
||||||
Profit Margin, before Special Items* |
|
10.3 |
% |
|
23.8 |
% |
|
|
|
|
||||||
|
|
|
|
|
|
|
|
|
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*Please see the attached Non-GAAP Financial Measures tables |
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Sales of
Engineered Materials
|
|
Fourth Quarter |
|
Change |
||||||||||||
(dollars in millions) |
|
2020 |
|
2019 |
|
|
|
|
||||||||
Sales |
|
$ |
43 |
|
|
$ |
43 |
|
|
$ |
(1 |
) |
|
|
(2 |
%) |
|
|
|
|
|
|
|
|
|
||||||||
Operating Profit |
|
$ |
5 |
|
|
$ |
4 |
|
|
$ |
1 |
|
|
|
22 |
% |
|
|
|
|
|
|
|
|
|
||||||||
Profit Margin |
|
11.7 |
% |
|
9.4 |
% |
|
|
|
|
||||||
Sales decreased
Introducing 2021 Guidance
We are introducing full year 2021 GAAP EPS guidance in a range of
Additional guidance details will be provided on the Company’s fourth quarter 2020 earnings conference call on January 26, 2021 and in the slide presentation accompanying that call, as well as at the Company's Annual Investor Day conference scheduled for February 25, 2021.
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 26, 2021 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 11,000 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, including risks and uncertainties related to the ongoing COVID-19 pandemic, that could cause actual results or outcomes to differ materially from those expressed or implied in these forward-looking statements. Such factors also include, among others: uncertainties regarding the extent and duration of the impact of the COVID-19 pandemic on many aspects of our business, operations and financial performance; changes in economic, financial and end-market conditions in the markets in which we operate; fluctuations in raw material prices; the financial condition of our customers and suppliers; economic, social and political instability, currency fluctuation and other risks of doing business outside of the United States; competitive pressures, including the need for technology improvement, successful new product development and introduction and any inability to pass increased costs of raw materials to customers; our ability to value and successfully integrate acquisitions, to realize synergies and opportunities for growth and innovation, and to attract and retain highly qualified personnel and key management; a reduction in congressional appropriations that affect defense spending and our ability to predict the timing and award of substantial contracts in our banknote business; adverse effects on our business and results of operations, as a whole, as a result of increases in asbestos claims or the cost of defending and settling such claims; adverse effects as a result of environmental remediation activities, costs, liabilities and related claims; investment performance of our pension plan assets and fluctuations in interest rates, which may affect the amount and timing of future pension plan contributions; and other risks noted in reports that we file with the Securities and Exchange Commission, including the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2019 and subsequent reports filed with the Securities and Exchange Commission. Crane Co. does not undertake any obligation to update or revise any forward-looking statements.
(Financial Tables Follow)
CRANE CO. Income Statement Data (in millions, except per share data) |
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Three Months Ended |
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Twelve Months Ended |
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December 31, |
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December 31, |
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2020 |
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2019 |
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2020 |
|
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2019 |
|
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Net sales: |
|
|
|
|
|
|
|
|
|
|
|||||||||||
Fluid Handling |
|
|
$ |
|
257.7 |
|
|
$ |
277.0 |
|
|
|
$ |
|
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FAQ
What is Crane Co.'s adjusted EPS guidance for 2021?
Crane Co. has provided an adjusted EPS guidance for 2021 in the range of $4.90 to $5.10.
How did Crane Co.'s sales perform in 2020?
Crane Co. reported a decline in sales of 11% for the full year 2020 compared to 2019.
What factors impacted Crane Co.'s sales in 2020?
The decline in core sales was primarily due to COVID-19 related macroeconomic factors.
What was Crane Co.'s liquidity position at the end of 2020?
Crane Co. maintained a strong liquidity position of approximately $1.1 billion at the end of 2020.
What was the year-over-year growth in orders for Crane Co. in December 2020?
Crane Co. experienced an 11% year-over-year growth in orders in December 2020.
Crane Company
NYSE:CRCR RankingsCR Latest NewsCR Stock Data
8.73B
48.89M
14.47%
74.06%
1.25%
Specialty Industrial Machinery
Miscellaneous Fabricated Metal Products
United States of America
STAMFORD
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