Second-Quarter 2014 Highlights:
» Second-quarter earnings per diluted share (EPS) of $1 increased 7% compared with 2013
» Excluding special items, EPS of $1.15 increased 9% compared with 2013
» Sales of $750 million increased 15.6% compared with 2013, with a core sales increase of 0.1%
» Fluid Handling orders backlog increased 7% compared with the prior year and increased 13% year-to-date, adjusted for a recent divestiture
STAMFORD, CT -- Crane Co. reported second-quarter 2014 earnings of $1 per diluted share, compared with $0.93 per share in the second quarter of 2013. Second-quarter 2014 results included special items of $9.3 million in after-tax charges, or $0.15 a share. Second-quarter 2013 results included special items of $7.3 million in after-tax charges, or $0.13 per share. Excluding these special items in both years, second-quarter 2014 earnings per diluted share increased 9% to $1.15, compared with $1.06 in the second quarter of 2013.
Special items in the second quarter of 2014 included, among other things, $2.5 million in after-tax charges related to the December 2013 acquisition of MEI. Special items in the second quarter of 2013 included transaction-related costs of $7.3 million, or $0.13 per share, related to the MEI acquisition.
Crane Co.'s Payment & Merchandising Technologies segment, which comprises Crane Payment Innovations and Crane Merchandising Systems, had sales of $184.6 million, an increase of $99.8 million over last year's same period. The 117.6% surge was driven primarily by $96.2 million of sales related to the MEI transaction, core sales growth of $0.9 million, or 1.1%, and favorable foreign exchange of $2.7 million, or 3.1%. Operating profit increased to $21.4 million in the quarter, primarily reflecting the impact of the MEI acquisition.
Payment & Merchandising Technologies:
Crane Co.'s other industrial segments include Fluid Handling, Aerospace & Electronics and Engineered Materials. Companywide, Crane had second-quarter sales of $750.1, compared with $648.7 million in the second quarter of 2013, a 15.6% increase.
"We are pleased to report second-quarter EPS of $1.15, excluding Special Items," said Crane Co. president and chief executive Max Mitchell. "We were encouraged by second-quarter order activity and backlog growth, particularly at Fluid Handling, and we continue to expect stronger sales growth in the second half of 2014. We believe that we remain on track to achieve our 2014 objectives, and are reaffirming our previously issued 2014 full year guidance, excluding special items. The MEI integration and previously announced repositioning activities are progressing smoothly and position us for solid earnings growth in 2015 and 2016. Reflecting continuing confidence in our long-term outlook, we have increased our dividend for the fifth consecutive year."
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