Diversified manufacturer Crane Co. (CR: Quote), a diversified manufacturer of highly engineered industrial products, reported that its fourth-quarter net income attributable to common shareholders was $45.64 million or $0.79 per share, compared to a loss of $125.13 million or $2.16 per share in the same quarter last year.
Earnings from continuing operations of $0.79 per share, compared to a net loss of $2.18 per share in the fourth quarter of 2011. Fourth quarter 2012 results included after-tax charges of $4 million, or $0.07 per share, associated with previously announced repositioning actions, as well as transaction-related costs of $4 million, or $0.07 per share, related to the recently announced acquisition of MEI Conlux Holdings.
Fourth quarter 2011 results included an after-tax asbestos provision of $157 million and an after-tax environmental provision of $20 million.
Net income attributable to common shareholders before special items rose to $53.41 million or $0.92 per share from $51.65 million or $0.88 per share in the year ago quarter. Analysts polled by Thomson Reuters expected the company to report earnings of $0.96 per share for the quarter. Analysts’ estimates typically exclude special items.
Total net sales for the quarter increased to $629.79 million from $619.80 million last year. Four analysts had consensus revenue estimate of $653.80 million for the quarter.
The Company revised its preliminary 2013 guidance. The updated guidance reflects lower pension expense associated with the curtailment of the Company’s U.S. defined benefit pension plan, as well as a slightly reduced outlook for 2013 core sales growth of between 1% and 3% excluding acquisition and foreign exchange impacts.
Earnings per share in 2013 are now estimated to be in a range of $4.10 to $4.30, representing an increase of 11%-16% over 2012 earnings per share of $3.70 before Special Items and on a continuing operations basis, which excludes profits from discontinued operations of $0.05 per share in 2012.
Analysts expect the company to report earnings of $4.11 per share on revenues of $2.72 billion for fiscal 2013.
The 2013 guidance does not include potential impacts from the pending acquisition of MEI. Excluding inventory step-up and one-time transaction and integration costs, the Company expects MEI to be accretive to earnings within the first year of acquisition by approximately $0.25 per share, including $.05 in synergies.
Earlier, the company expected adjusted earnings to be in the range of $4.05 to $4.20 per share, on projected year-over-year core sales growth, excluding acquisition and foreign exchange impacts, of between 2 and 4 percent for fiscal 2013.
Crane Co.announced its regular quarterly dividend of $0.28 per share for the first quarter of 2013. The dividend is payable on March 8, 2013 to shareholders of record as of the close of business on February 28, 2013.
In a separate press release, Crane announced the appointment of Max Mitchell as President and Chief Operating Officer, effective immediately. Mitchell, 49, has served as Executive Vice President and Chief Operating Officer since May 2011.
The company also announced that Andrew Krawitt has decided to leave the Company in May 2013 in order to pursue a doctorate in mathematics. Krawitt has served as Vice President and Treasurer of Crane Co. since September 2006, and was designated the Company’s principal financial officer in May 2010.
In conjunction with Krawitt’s intended departure, the Company announced the appointment of Richard Maue as Vice President-Finance and Chief Financial Officer, effective immediately.
Maue, 42, who joined Crane in August 2007 as Vice President and Controller and principal accounting officer, has also been designated as the Company’s principal financial officer, effective immediately. He has twenty years of experience as a finance professional, primarily with public companies in the manufacturing industry. Since May 2010, Maue and Krawitt have shared CFO responsibilities.
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by RTT Staff Writer
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