(State or other jurisdiction of incorporation or organization) | (Commission File Number) | (I.R.S. Employer Identification No.) | |||||||||
(Address of Principal Executive Offices) | (Zip Code) |
Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |
Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
Title of each class | Trading Symbol | Name of each exchange on which registered | ||||||
|
Item 2.02 | Results of Operations and Financial Condition. |
Item 8.01 | Other Events |
For the year ended December 31, | 2021 | 2020 | 2019 | ||||||||||||||
Beginning claims | 29,138 | 29,056 | 29,089 | ||||||||||||||
New claims | 2,975 | 2,620 | 2,848 | ||||||||||||||
Settlements | (980) | (885) | (983) | ||||||||||||||
Dismissals | (1,175) | (1,653) | (1,898) | ||||||||||||||
Ending claims | 29,958 | 29,138 | 29,056 |
(in millions) | |||||||||||||||||
For the year ended December 31, | 2021 | 2020 | 2019 | ||||||||||||||
Settlement / indemnity costs incurred (a) | $ | 40.6 | $ | 35.3 | $ | 45.5 | |||||||||||
Defense costs incurred (a) | 14.6 | 15.6 | 20.7 | ||||||||||||||
Total costs incurred | $ | 55.2 | $ | 50.9 | $ | 66.2 | |||||||||||
Settlement / indemnity payments | $ | 42.6 | $ | 24.7 | $ | 38.9 | |||||||||||
Defense payments | 15.4 | 16.7 | 21.4 | ||||||||||||||
Insurance receipts | (13.1) | (10.3) | (18.8) | ||||||||||||||
Pre-tax cash payments, net | $ | 44.9 | $ | 31.1 | $ | 41.5 |
(a) | Before insurance recoveries and tax effects. |
Item 9.01 | Financial Statements and Exhibits. |
(a) | None | |||||||
(b) | None | |||||||
(c) | None | |||||||
(d) | Exhibits | |||||||
99.1 | ||||||||
104 | Cover Page Interactive Data File (embedded within the Inline XBRL document) |
CRANE CO. | |||||||||||||||||
January 24, 2022 | |||||||||||||||||
By: | /s/ Richard A. Maue | ||||||||||||||||
Richard A. Maue | |||||||||||||||||
Senior Vice President and | |||||||||||||||||
Chief Financial Officer |
Document and Entity Information | As of | ||||||||||
1/24/2022 | |||||||||||
Entity Central Index Key | |||||||||||
Amendment Flag | |||||||||||
Contact: | ||
Jason D. Feldman | ||
Vice President, Investor Relations | ||
203-363-7329 | ||
www.craneco.com |
Full Year | Change | |||||||||||||||||||||||||
(dollars in millions) | 2021 | 2020 | $ | % | ||||||||||||||||||||||
Net sales (GAAP) | $ | 3,180 | $ | 2,761 | $ | 419 | 15% | |||||||||||||||||||
Core sales | 343 | 12% | ||||||||||||||||||||||||
Foreign exchange | 71 | 3% | ||||||||||||||||||||||||
Acquisitions | 5 | —% | ||||||||||||||||||||||||
Operating profit | $ | 502 | $ | 240 | $ | 262 | 109% | |||||||||||||||||||
Operating profit, before special Items (adjusted)* | $ | 501 | $ | 300 | $ | 201 | 67% | |||||||||||||||||||
Operating profit margin | 15.8 | % | 8.7 | % | 710bps | |||||||||||||||||||||
Operating profit margin, before special items (adjusted)* | 15.8 | % | 10.8 | % | 500bps | |||||||||||||||||||||
*Please see the attached Non-GAAP Financial Measures tables |
Fourth Quarter | Change | |||||||||||||||||||||||||
(dollars in millions) | 2021 | 2020 | $ | % | ||||||||||||||||||||||
Net sales (GAAP) | $ | 771 | $ | 684 | $ | 87 | 13% | |||||||||||||||||||
Core sales | 86 | 13% | ||||||||||||||||||||||||
Foreign exchange | 1 | —% | ||||||||||||||||||||||||
Operating profit | $ | 87 | $ | 54 | $ | 33 | 62% | |||||||||||||||||||
Operating profit, before special Items (adjusted)* | $ | 93 | $ | 70 | $ | 23 | 33% | |||||||||||||||||||
Operating profit margin | 11.3 | % | 7.9 | % | 340bps | |||||||||||||||||||||
Operating profit margin, before special items (adjusted)* | 12.1 | % | 10.2 | % | 190bps | |||||||||||||||||||||
*Please see the attached Non-GAAP Financial Measures tables |
Fourth Quarter | Change | |||||||||||||||||||||||||
(dollars in millions) | 2021 | 2020 | $ | % | ||||||||||||||||||||||
Net sales | $ | 158 | $ | 143 | $ | 15 | 10% | |||||||||||||||||||
Operating profit | $ | 21 | $ | 13 | $ | 8 | 60% | |||||||||||||||||||
Operating profit, before special items (adjusted)* | $ | 21 | $ | 15 | $ | 6 | 40% | |||||||||||||||||||
Operating profit margin | 13.1 | % | 9.0 | % | 410bps | |||||||||||||||||||||
Operating profit margin, before special items (adjusted)* | 13.1 | % | 10.3 | % | 280bps | |||||||||||||||||||||
*Please see the attached Non-GAAP Financial Measures tables |
Fourth Quarter | Change | |||||||||||||||||||||||||
(dollars in millions) | 2021 | 2020 | $ | % | ||||||||||||||||||||||
Net sales | $ | 299 | $ | 258 | $ | 41 | 16% | |||||||||||||||||||
Core sales | 39 | 15% | ||||||||||||||||||||||||
Foreign exchange | 2 | 1% | ||||||||||||||||||||||||
Operating profit | $ | 42 | $ | 24 | $ | 18 | 75% | |||||||||||||||||||
Operating profit, before special Items (adjusted)* | $ | 43 | $ | 28 | $ | 15 | 55% | |||||||||||||||||||
Operating profit margin | 13.9 | % | 9.2 | % | 470bps | |||||||||||||||||||||
Operating profit margin, before special items (adjusted)* | 14.3 | % | 10.7 | % | 360bps |
Fourth Quarter | Change | |||||||||||||||||||||||||
(dollars in millions) | 2021 | 2020 | $ | % | ||||||||||||||||||||||
Net sales | $ | 314 | $ | 283 | $ | 31 | 11 | % | ||||||||||||||||||
Net sales, including acquisition-related deferred revenue* | 314 | 285 | 29 | 10 | % | |||||||||||||||||||||
Core sales | 32 | 11 | % | |||||||||||||||||||||||
Foreign exchange | (1) | — | % | |||||||||||||||||||||||
Operating profit | $ | 60 | $ | 32 | 28 | 90 | % | |||||||||||||||||||
Operating profit, before special Items (adjusted)* | $ | 58 | $ | 42 | 16 | 38 | % | |||||||||||||||||||
Operating profit margin | 19.1 | % | 11.2 | % | 790bps | |||||||||||||||||||||
Operating profit margin, before special items (adjusted)* | 18.5 | % | 14.7 | % | 380bps |
Full Year 2022 Guidance Details (Continuing Operations Basis) | |||||
($ Millions, except per share amounts) | |||||
Net sales | ~$3,300 | ||||
Core sales growth | +4% to +6% | ||||
FX translation | (1.5%) | ||||
Diluted earnings per share, GAAP | $6.85 to $7.25 | ||||
Diluted earnings per share, non-GAAP (adjusted) | $7.00 to $7.40 | ||||
Operating cash flow | $410 to $450 | ||||
Capital expenditures | $60 | ||||
Free cash flow | $350 to $390 | ||||
Corporate expense | ~$75 | ||||
Adjusted tax rate | ~21% | ||||
Non-operating expense, net | ~$26 | ||||
Full-year diluted share count | ~57 million |
Three Months Ended December 31, | Twelve Months Ended December 31, | ||||||||||||||||||||||
2021 | 2020 | 2021 | 2020 | ||||||||||||||||||||
Net sales: | |||||||||||||||||||||||
Aerospace & Electronics | $ | 158.1 | $ | 143.4 | $ | 638.3 | $ | 650.7 | |||||||||||||||
Process Flow Technologies | 298.7 | 257.7 | 1,196.6 | 1,005.8 | |||||||||||||||||||
Payment & Merchandising Technologies | 313.7 | 282.6 | 1,345.1 | 1,104.8 | |||||||||||||||||||
Total net sales | $ | 770.5 | $ | 683.7 | $ | 3,180.0 | $ | 2,761.3 | |||||||||||||||
Operating profit: | |||||||||||||||||||||||
Aerospace & Electronics | $ | 20.7 | $ | 12.9 | $ | 110.0 | $ | 100.7 | |||||||||||||||
Process Flow Technologies | 41.5 | 23.7 | 182.5 | 97.7 | |||||||||||||||||||
Payment & Merchandising Technologies | 60.1 | 31.7 | 307.5 | 100.6 | |||||||||||||||||||
Corporate | (35.2) | (14.4) | (97.7) | (58.8) | |||||||||||||||||||
Total operating profit | $ | 87.1 | $ | 53.9 | $ | 502.3 | $ | 240.2 | |||||||||||||||
Interest income | $ | 0.3 | $ | 0.7 | $ | 1.4 | $ | 2.0 | |||||||||||||||
Interest expense | (10.9) | (13.9) | (46.9) | (55.3) | |||||||||||||||||||
Miscellaneous, net | 3.3 | 4.2 | 20.4 | 14.9 | |||||||||||||||||||
Income from continuing operations before income taxes | 79.8 | 44.9 | 477.2 | 201.8 | |||||||||||||||||||
Provision for income taxes | 11.0 | 2.3 | 82.9 | 38.6 | |||||||||||||||||||
Net income from continuing operations before allocation to noncontrolling interests | 68.8 | 42.6 | 394.3 | 163.2 | |||||||||||||||||||
Less: Noncontrolling interest in subsidiaries’ earnings | — | 0.1 | — | 0.1 | |||||||||||||||||||
Net income from continuing operations attributable to common shareholders | 68.8 | 42.5 | 394.3 | 163.1 | |||||||||||||||||||
Income from discontinued operations, net of tax 1 | 3.3 | 4.3 | 41.1 | 17.9 | |||||||||||||||||||
Net income attributable to common shareholders | $ | 72.1 | $ | 46.8 | $ | 435.4 | $ | 181.0 | |||||||||||||||
Earnings per diluted share from continuing operations | $ | 1.16 | $ | 0.73 | $ | 6.66 | $ | 2.77 | |||||||||||||||
Earnings per diluted share from discontinued operations | 0.06 | 0.07 | 0.70 | 0.31 | |||||||||||||||||||
Earnings per diluted share | $ | 1.22 | $ | 0.80 | $ | 7.36 | $ | 3.08 | |||||||||||||||
Average diluted shares outstanding | 59.2 | 58.5 | 59.2 | 58.8 | |||||||||||||||||||
Average basic shares outstanding | 58.4 | 58.1 | 58.4 | 58.3 | |||||||||||||||||||
Supplemental data: | |||||||||||||||||||||||
Cost of sales | $ | 482.5 | $ | 457.8 | $ | 1,938.9 | $ | 1,802.0 | |||||||||||||||
Selling, general & administrative | 200.9 | 172.0 | 738.8 | 719.1 | |||||||||||||||||||
Acquisition-related and integration charges 2 | — | 2.7 | — | 12.9 | |||||||||||||||||||
Transaction related expenses 2 | 6.8 | — | 8.2 | — | |||||||||||||||||||
Repositioning related (gains) charges, net 2 | (0.8) | 10.9 | (9.6) | 36.8 | |||||||||||||||||||
Depreciation and amortization 2 | 29.8 | 31.2 | 119.5 | 123.8 | |||||||||||||||||||
Stock-based compensation expense 2 | 6.2 | 6.0 | 24.5 | 21.8 | |||||||||||||||||||
1 The twelve-month period ended December 31, 2021 includes $20.6 million of deferred tax benefit associated with the pending disposition of the Engineered Materials segment. | |||||||||||||||||||||||
2 Amounts included within Cost of sales and/or Selling, general & administrative costs. |
December 31, 2021 | December 31, 2020 | |||||||||||||
Assets | ||||||||||||||
Current assets | ||||||||||||||
Cash and cash equivalents | $ | 478.6 | $ | 551.0 | ||||||||||
Accounts receivable, net | 472.4 | 423.9 | ||||||||||||
Current insurance receivable - asbestos | 13.7 | 14.4 | ||||||||||||
Inventories, net | 440.9 | 429.7 | ||||||||||||
Other current assets | 118.1 | 137.3 | ||||||||||||
Current assets held for sale | 220.5 | 17.4 | ||||||||||||
Total current assets | 1,744.2 | 1,573.7 | ||||||||||||
Property, plant and equipment, net | 527.3 | 573.7 | ||||||||||||
Long-term insurance receivable - asbestos | 60.0 | 72.5 | ||||||||||||
Other assets | 742.6 | 757.5 | ||||||||||||
Goodwill | 1,412.5 | 1,437.7 | ||||||||||||
Long-term assets held for sale | — | 199.9 | ||||||||||||
Total assets | $ | 4,486.6 | $ | 4,615.0 | ||||||||||
Liabilities and equity | ||||||||||||||
Current liabilities | ||||||||||||||
Short-term borrowings | $ | — | $ | 375.7 | ||||||||||
Accounts payable | 246.7 | 198.9 | ||||||||||||
Current asbestos liability | 62.3 | 66.5 | ||||||||||||
Accrued liabilities | 430.7 | 388.0 | ||||||||||||
Income taxes | 10.6 | 0.1 | ||||||||||||
Current liabilities held for sale | 44.9 | 27.4 | ||||||||||||
Total current liabilities | 795.2 | 1,056.6 | ||||||||||||
Long-term debt | 842.4 | 842.9 | ||||||||||||
Long-term deferred tax liability | 71.1 | 53.6 | ||||||||||||
Long-term asbestos liability | 549.8 | 603.6 | ||||||||||||
Other liabilities | 393.0 | 501.0 | ||||||||||||
Long-term liabilities held for sale | — | 26.2 | ||||||||||||
Total equity | 1,835.1 | 1,531.1 | ||||||||||||
Total liabilities and equity | $ | 4,486.6 | $ | 4,615.0 |
Three Months Ended December 31, | Twelve Months Ended December 31, | |||||||||||||||||||||||||
2021 | 2020 | 2021 | 2020 | |||||||||||||||||||||||
Operating activities from continuing operations: | ||||||||||||||||||||||||||
Net income from continuing operations attributable to common shareholders | $ | 68.8 | $ | 42.5 | $ | 394.3 | $ | 163.1 | ||||||||||||||||||
Gain on sale of property | — | — | (18.5) | — | ||||||||||||||||||||||
Depreciation and amortization | 29.8 | 31.2 | 119.5 | 123.8 | ||||||||||||||||||||||
Stock-based compensation expense | 6.2 | 6.0 | 24.5 | 21.8 | ||||||||||||||||||||||
Defined benefit plans and postretirement credit | (2.0) | (2.6) | (8.0) | (7.1) | ||||||||||||||||||||||
Deferred income taxes | 15.2 | 8.5 | 10.8 | 16.0 | ||||||||||||||||||||||
Cash provided by operating working capital | 66.2 | 40.2 | 29.7 | 37.8 | ||||||||||||||||||||||
Defined benefit plans and postretirement contributions | (6.7) | (25.4) | (29.4) | (28.4) | ||||||||||||||||||||||
Environmental payments, net of reimbursements | (1.3) | (1.3) | (5.8) | (4.2) | ||||||||||||||||||||||
Asbestos related payments, net of insurance recoveries | (15.3) | (7.3) | (44.9) | (31.1) | ||||||||||||||||||||||
Other | (5.9) | (4.9) | (5.5) | (7.6) | ||||||||||||||||||||||
Total provided by operating activities from continuing operations | $ | 155.0 | $ | 86.9 | $ | 466.7 | $ | 284.1 | ||||||||||||||||||
Investing activities from continuing operations: | ||||||||||||||||||||||||||
Payments for acquisitions, net of cash acquired | $ | — | $ | (0.3) | $ | — | $ | (169.5) | ||||||||||||||||||
Proceeds from disposition of capital assets | 0.4 | 0.6 | 23.6 | 4.4 | ||||||||||||||||||||||
Capital expenditures | (26.4) | (13.0) | (51.7) | (32.9) | ||||||||||||||||||||||
Purchase of marketable securities | — | (30.0) | (10.0) | (90.0) | ||||||||||||||||||||||
Proceeds from sale of marketable securities | — | 60.0 | 40.0 | 60.0 | ||||||||||||||||||||||
Total (used for) provided by investing activities from continuing operations | $ | (26.0) | $ | 17.3 | $ | 1.9 | $ | (228.0) | ||||||||||||||||||
Financing activities from continuing operations: | ||||||||||||||||||||||||||
Dividends paid | $ | (25.1) | $ | (25.0) | $ | (100.6) | $ | (100.4) | ||||||||||||||||||
Reacquisition of shares on open market | (96.3) | — | (96.3) | (70.0) | ||||||||||||||||||||||
Stock options exercised, net of shares reacquired | 4.3 | 0.9 | 14.2 | 5.1 | ||||||||||||||||||||||
Debt issuance costs | — | — | — | (1.3) | ||||||||||||||||||||||
Proceeds from issuance of commercial paper with maturities greater than 90 days | — | — | — | 251.3 | ||||||||||||||||||||||
Repayments of commercial paper with maturities greater than 90 days | — | (108.1) | (27.1) | (296.7) | ||||||||||||||||||||||
Net repayments from issuance of commercial paper with maturities of 90 days or less | — | — | — | (76.8) | ||||||||||||||||||||||
Proceeds from revolving credit facility | — | — | — | 77.2 | ||||||||||||||||||||||
Repayments of revolving credit facility | — | — | — | (77.2) | ||||||||||||||||||||||
Proceeds from term loan | — | — | — | 343.9 | ||||||||||||||||||||||
Repayment of term loan | — | — | (348.1) | — | ||||||||||||||||||||||
Total (used for) provided by financing activities from continuing operations | $ | (117.1) | $ | (132.2) | $ | (557.9) | $ | 55.1 | ||||||||||||||||||
Discontinued operations: | ||||||||||||||||||||||||||
Total provided by operating activities | $ | 16.5 | $ | 14.5 | $ | 31.8 | $ | 25.4 | ||||||||||||||||||
Total used for investing activities | (0.8) | (0.5) | (2.2) | (1.1) | ||||||||||||||||||||||
Increase in cash and cash equivalents from discontinued operations | 15.7 | 14.0 | 29.6 | 24.3 | ||||||||||||||||||||||
Effect of exchange rate on cash and cash equivalents | 0.2 | 20.4 | (12.7) | 21.6 | ||||||||||||||||||||||
Increase (decrease) in cash and cash equivalents | 27.8 | 6.4 | (72.4) | 157.1 | ||||||||||||||||||||||
Cash and cash equivalents at beginning of period | 450.8 | 544.6 | 551.0 | 393.9 | ||||||||||||||||||||||
Cash and cash equivalents at end of period | $ | 478.6 | $ | 551.0 | $ | 478.6 | $ | 551.0 |
December 31, 2021 | September 30, 2021 | June 30, 2021 | March 31, 2021 | December 31, 2020 | ||||||||||||||||||||||||||||
Aerospace & Electronics | $ | 459.8 | $ | 478.5 | $ | 472.9 | $ | 481.6 | $ | 491.2 | ||||||||||||||||||||||
Process Flow Technologies | 357.9 | 351.4 | 344.1 | 325.4 | 313.4 | |||||||||||||||||||||||||||
Payment & Merchandising Technologies | 438.0 | 387.9 | 374.7 | 337.0 | 347.6 | |||||||||||||||||||||||||||
Total backlog | $ | 1,255.7 | $ | 1,217.8 | $ | 1,191.7 | $ | 1,144.0 | $ | 1,152.2 |
Three Months Ended December 31, | ||||||||||||||||||||||||||||||||
2021 | 2020 | % Change | ||||||||||||||||||||||||||||||
$ | Per Share | $ | Per Share | (on $) | ||||||||||||||||||||||||||||
Net sales (GAAP) | $ | 770.5 | $ | 683.7 | 12.7 | % | ||||||||||||||||||||||||||
Acquisition-related deferred revenue1 | — | 2.5 | ||||||||||||||||||||||||||||||
Net sales before special items (adjusted) | $ | 770.5 | $ | 686.2 | 12.3 | % | ||||||||||||||||||||||||||
Operating profit (GAAP) | $ | 87.1 | $ | 53.9 | 61.6 | % | ||||||||||||||||||||||||||
Operating profit margin (GAAP) | 11.3 | % | 7.9 | % | ||||||||||||||||||||||||||||
Special items impacting operating profit: | ||||||||||||||||||||||||||||||||
Acquisition-related deferred revenue 1 | — | 2.5 | ||||||||||||||||||||||||||||||
Acquisition-related and integration charges | — | 2.7 | ||||||||||||||||||||||||||||||
Transaction related expenses | 6.8 | — | ||||||||||||||||||||||||||||||
Repositioning related (gains) charges, net | (0.8) | 10.9 | ||||||||||||||||||||||||||||||
Operating profit before special items (adjusted) | $ | 93.1 | $ | 70.0 | 33.0 | % | ||||||||||||||||||||||||||
Operating profit margin before special items (adjusted) | 12.1 | % | 10.2 | % | ||||||||||||||||||||||||||||
Net income from continuing operations attributable to common shareholders (GAAP) | $ | 68.8 | $ | 1.16 | $ | 42.5 | $ | 0.73 | 61.9 | % | ||||||||||||||||||||||
Special items, net of tax, impacting net income from continuing operations attributable to common shareholders: | ||||||||||||||||||||||||||||||||
Acquisition-related deferred revenue 1 | — | — | 1.8 | 0.03 | ||||||||||||||||||||||||||||
Acquisition-related and integration charges | — | — | 2.1 | 0.04 | ||||||||||||||||||||||||||||
Transaction related expenses | 5.9 | 0.10 | — | — | ||||||||||||||||||||||||||||
Repositioning related (gains) charges, net | (0.6) | (0.01) | 8.5 | 0.15 | ||||||||||||||||||||||||||||
Pension curtailments and settlements | (0.1) | — | (0.7) | (0.02) | ||||||||||||||||||||||||||||
Net income from continuing operations, net of tax, attributable to common shareholders before special items (adjusted) | $ | 74.0 | $ | 1.25 | $ | 54.2 | $ | 0.92 | 36.5 | % | ||||||||||||||||||||||
Special items impacting provision for income taxes from continuing operations: | ||||||||||||||||||||||||||||||||
Provision for income taxes (GAAP) | $ | 11.0 | $ | 2.3 | ||||||||||||||||||||||||||||
Tax effect of acquisition-related deferred revenue 1 | — | 0.7 | ||||||||||||||||||||||||||||||
Tax effect of acquisition-related and integration charges | — | 0.6 | ||||||||||||||||||||||||||||||
Tax effect of transaction related expenses | 0.9 | — | ||||||||||||||||||||||||||||||
Tax effect of repositioning related (gains) charges, net | (0.2) | 2.4 | ||||||||||||||||||||||||||||||
Tax effect of impact of pension curtailments and settlements | (0.1) | (0.2) | ||||||||||||||||||||||||||||||
Provision for income taxes before special items (adjusted) | $ | 11.6 | $ | 5.8 | ||||||||||||||||||||||||||||
1 Acquisition-related revenue that would otherwise be recognized but for the purchase accounting treatment of acquisitions. | ||||||||||||||||||||||||||||||||
Totals may not sum due to rounding |
Twelve Months Ended December 31, | ||||||||||||||||||||||||||||||||
2021 | 2020 | % Change | ||||||||||||||||||||||||||||||
$ | Per Share | $ | Per Share | (on $) | ||||||||||||||||||||||||||||
Net sales (GAAP) | $ | 3,180.0 | $ | 2,761.3 | 15.2 | % | ||||||||||||||||||||||||||
Acquisition-related deferred revenue 1 | — | 10.2 | ||||||||||||||||||||||||||||||
Net sales before special items (adjusted) | $ | 3,180.0 | $ | 2,771.5 | 14.7 | % | ||||||||||||||||||||||||||
Operating profit (GAAP) | $ | 502.3 | $ | 240.2 | 109.1 | % | ||||||||||||||||||||||||||
Operating profit margin (GAAP) | 15.8 | % | 8.7 | % | ||||||||||||||||||||||||||||
Special items impacting operating profit: | ||||||||||||||||||||||||||||||||
Acquisition-related deferred revenue 1 | $ | — | $ | 10.2 | ||||||||||||||||||||||||||||
Acquisition-related and integration charges | — | 12.9 | ||||||||||||||||||||||||||||||
Transaction related expenses | 8.2 | — | ||||||||||||||||||||||||||||||
Repositioning related (gains) charges, net 2 | (9.6) | 36.8 | ||||||||||||||||||||||||||||||
Operating profit before special items (adjusted) | $ | 500.9 | $ | 300.1 | 66.9 | % | ||||||||||||||||||||||||||
Operating profit margin before special items (adjusted) | 15.8 | % | 10.8 | % | ||||||||||||||||||||||||||||
Net income from continuing operations attributable to common shareholders (GAAP) | $ | 394.3 | $ | 6.66 | $ | 163.1 | $ | 2.77 | 141.8 | % | ||||||||||||||||||||||
Special items, net of tax, impacting net income from continuing operations attributable to common shareholders: | ||||||||||||||||||||||||||||||||
Acquisition-related deferred revenue 1 | — | — | 7.5 | 0.13 | ||||||||||||||||||||||||||||
Acquisition-related and integration charges | — | — | 9.9 | 0.17 | ||||||||||||||||||||||||||||
Transaction related expenses | 7.0 | 0.12 | — | — | ||||||||||||||||||||||||||||
Repositioning related (gains) charges, net 2 | (9.1) | (0.15) | 27.7 | 0.47 | ||||||||||||||||||||||||||||
Pension curtailments and settlements | (0.1) | — | (0.7) | (0.01) | ||||||||||||||||||||||||||||
Gain on sale of property | (4.5) | (0.08) | — | — | ||||||||||||||||||||||||||||
Net income from continuing operations, net of tax, attributable to common shareholders before special items (adjusted) | $ | 387.6 | $ | 6.55 | $ | 207.5 | $ | 3.53 | 86.8 | % | ||||||||||||||||||||||
Special items impacting provision for income taxes from continuing operations: | ||||||||||||||||||||||||||||||||
Provision for income taxes (GAAP) | $ | 82.9 | $ | 38.6 | ||||||||||||||||||||||||||||
Tax effect of acquisition-related deferred revenue 1 | — | 2.7 | ||||||||||||||||||||||||||||||
Tax effect of acquisition-related and integration charges | — | 3.0 | ||||||||||||||||||||||||||||||
Tax effect of transaction related expenses | 1.2 | — | ||||||||||||||||||||||||||||||
Tax effect of repositioning related (gains) charges, net 2 | (0.5) | 9.1 | ||||||||||||||||||||||||||||||
Tax effect of pension curtailments and settlements | (0.1) | (0.2) | ||||||||||||||||||||||||||||||
Tax effect of gain on sale of property | (1.2) | — | ||||||||||||||||||||||||||||||
Provision for income taxes before special items (adjusted) | $ | 82.3 | $ | 53.2 | ||||||||||||||||||||||||||||
1 Acquisition-related revenue that would otherwise be recognized but for the purchase accounting treatment of acquisitions. | ||||||||||||||||||||||||||||||||
2 Repositioning related charges in 2020 primarily consist of COVID-19 related severance and, to a lesser extent, acquisition-related repositioning and facility consolidation. | ||||||||||||||||||||||||||||||||
Totals may not sum due to rounding |
Three Months Ended December 31, 2021 | Aerospace & Electronics | Process Flow Technologies | Payment & Merchandising Technologies | Corporate | Total Company | ||||||||||||||||||||||||
Net sales (GAAP) | $ | 158.1 | $ | 298.7 | $ | 313.7 | $ | — | $ | 770.5 | |||||||||||||||||||
Operating profit (GAAP) | $ | 20.7 | $ | 41.5 | $ | 60.1 | $ | (35.2) | $ | 87.1 | |||||||||||||||||||
Operating profit margin (GAAP) | 13.1 | % | 13.9 | % | 19.1 | % | 11.3 | % | |||||||||||||||||||||
Special items impacting operating profit: | |||||||||||||||||||||||||||||
Transaction related expenses | $ | — | $ | — | $ | — | $ | 6.8 | $ | 6.8 | |||||||||||||||||||
Repositioning related charges (gains), net | — | 1.3 | (2.1) | — | (0.8) | ||||||||||||||||||||||||
Operating profit before special items (adjusted) | $ | 20.7 | $ | 42.8 | $ | 58.0 | $ | (28.4) | $ | 93.1 | |||||||||||||||||||
Operating profit margin before special items (adjusted) | 13.1 | % | 14.3 | % | 18.5 | % | 12.1 | % | |||||||||||||||||||||
Three Months Ended December 31, 2020 | |||||||||||||||||||||||||||||
Net sales (GAAP) | $ | 143.4 | $ | 257.7 | $ | 282.6 | $ | — | $ | 683.7 | |||||||||||||||||||
Acquisition-related deferred revenue1 | — | — | 2.5 | — | 2.5 | ||||||||||||||||||||||||
Net sales before special items (adjusted) | $ | 143.4 | $ | 257.7 | $ | 285.1 | $ | — | $ | 686.2 | |||||||||||||||||||
Operating profit (GAAP) | $ | 12.9 | $ | 23.7 | $ | 31.7 | $ | (14.4) | $ | 53.9 | |||||||||||||||||||
Operating profit margin (GAAP) | 9.0 | % | 9.2 | % | 11.2 | % | 7.9 | % | |||||||||||||||||||||
Special items impacting operating profit: | |||||||||||||||||||||||||||||
Acquisition-related deferred revenue1 | $ | — | $ | — | $ | 2.5 | $ | — | $ | 2.5 | |||||||||||||||||||
Acquisition-related and integration charges | — | 1.3 | 1.4 | — | 2.7 | ||||||||||||||||||||||||
Repositioning related charges, net | 1.9 | 2.7 | 6.3 | — | 10.9 | ||||||||||||||||||||||||
Operating profit before special items (adjusted) | $ | 14.8 | $ | 27.7 | $ | 41.9 | $ | (14.4) | $ | 70.0 | |||||||||||||||||||
Operating profit margin before special items (adjusted) | 10.3 | % | 10.7 | % | 14.7 | % | 10.2 | % | |||||||||||||||||||||
1 Acquisition-related revenue that would otherwise be recognized but for the purchase accounting treatment of acquisitions. | |||||||||||||||||||||||||||||
Totals may not sum due to rounding |
Twelve Months Ended December 31, 2021 | Aerospace & Electronics | Process Flow Technologies | Payment & Merchandising Technologies | Corporate | Total Company | |||||||||||||||||||||||||||
Net sales (GAAP) | $ | 638.3 | $ | 1,196.6 | $ | 1,345.1 | $ | — | $ | 3,180.0 | ||||||||||||||||||||||
Operating profit (GAAP) | $ | 110.0 | $ | 182.5 | $ | 307.5 | $ | (97.7) | $ | 502.3 | ||||||||||||||||||||||
Operating profit margin (GAAP) | 17.2 | % | 15.2 | % | 22.9 | % | 15.8 | % | ||||||||||||||||||||||||
Special items impacting operating profit: | ||||||||||||||||||||||||||||||||
Transaction related expenses | $ | — | $ | — | $ | — | $ | 8.2 | $ | 8.2 | ||||||||||||||||||||||
Repositioning related gains, net | — | (5.9) | (3.7) | — | (9.6) | |||||||||||||||||||||||||||
Operating profit before special items (adjusted) | $ | 110.0 | $ | 176.6 | $ | 303.8 | $ | (89.5) | $ | 500.9 | ||||||||||||||||||||||
Operating profit margin before special items (adjusted) | 17.2 | % | 14.8 | % | 22.6 | % | 15.8 | % | ||||||||||||||||||||||||
Twelve Months Ended December 31, 2020 | ||||||||||||||||||||||||||||||||
Net sales (GAAP) | $ | 650.7 | $ | 1,005.8 | $ | 1,104.8 | $ | — | $ | 2,761.3 | ||||||||||||||||||||||
Acquisition-related deferred revenue1 | — | — | 10.2 | — | 10.2 | |||||||||||||||||||||||||||
Net sales before special items (adjusted) | $ | 650.7 | $ | 1,005.8 | $ | 1,115.0 | $ | — | $ | 2,771.5 | ||||||||||||||||||||||
Operating profit (GAAP) | $ | 100.7 | $ | 97.7 | $ | 100.6 | $ | (58.8) | $ | 240.2 | ||||||||||||||||||||||
Operating profit margin (GAAP) | 15.5 | % | 9.7 | % | 9.1 | % | 8.7 | % | ||||||||||||||||||||||||
Special items impacting operating profit: | ||||||||||||||||||||||||||||||||
Acquisition-related deferred revenue1 | $ | — | $ | — | $ | 10.2 | $ | — | $ | 10.2 | ||||||||||||||||||||||
Acquisition-related and integration charges | — | 6.3 | 6.5 | 0.1 | 12.9 | |||||||||||||||||||||||||||
Repositioning related charges, net 2 | 6.5 | 10.5 | 19.8 | — | 36.8 | |||||||||||||||||||||||||||
Operating profit before special items (adjusted) | $ | 107.2 | $ | 114.5 | $ | 137.1 | $ | (58.7) | $ | 300.1 | ||||||||||||||||||||||
Operating profit margin before special items (adjusted) | 16.5 | % | 11.4 | % | 12.3 | % | 10.8 | % | ||||||||||||||||||||||||
1 Acquisition-related revenue that would otherwise be recognized but for the purchase accounting treatment of acquisitions. | ||||||||||||||||||||||||||||||||
2 Repositioning related charges in 2020 primarily consist of COVID-19 related severance and, to a lesser extent, acquisition-related repositioning and facility consolidation. | ||||||||||||||||||||||||||||||||
Totals may not sum due to rounding |
2022 Earnings from Continuing Operations per Share Guidance | Low | High | ||||||||||||
Earnings from continuing operations per diluted share (GAAP) | $ | 6.85 | $ | 7.25 | ||||||||||
Special items impacting earnings per share | 0.15 | 0.15 | ||||||||||||
Earnings from continuing operations per diluted share before special items (adjusted) | $ | 7.00 | $ | 7.40 |
Three Months Ended December 31, | Twelve Months Ended December 31, | 2022 Guidance | ||||||||||||||||||||||||||||||||||||
Cash Flow Items | 2021 | 2020 | 2021 | 2020 | Low | High | ||||||||||||||||||||||||||||||||
Cash provided by operating activities before asbestos-related payments | $ | 170.3 | $ | 94.2 | $ | 511.6 | $ | 315.2 | $ | 455.0 | $ | 495.0 | ||||||||||||||||||||||||||
Asbestos-related payments, net of insurance recoveries | (15.3) | (7.3) | (44.9) | (31.1) | (45.0) | (45.0) | ||||||||||||||||||||||||||||||||
Cash provided by operating activities | 155.0 | 86.9 | 466.7 | 284.1 | 410.0 | 450.0 | ||||||||||||||||||||||||||||||||
Less: Capital expenditures | (26.4) | (13.0) | (51.7) | (32.9) | (60.0) | (60.0) | ||||||||||||||||||||||||||||||||
Free cash flow | $ | 128.6 | $ | 73.9 | $ | 415.0 | $ | 251.2 | $ | 350.0 | $ | 390.0 |
The Company reports its financial results in accordance with U.S. generally accepted accounting principles (GAAP). Certain non-GAAP measures are provided in this press release. Management believes that non-GAAP financial measures which exclude certain non-recurring items present additional useful comparisons between current results and results in prior operating periods. Specifically, management believes that, when considered together with reported amounts, these non-GAAP measures are useful to investors and management in understanding ongoing operations and by providing a clearer view of the underlying trends of the business. In addition, Free Cash Flow provides supplemental information to assist investors and management in analyzing the Company’s ability to generate liquidity from its operating activities. The measure of Free Cash Flow does not take into consideration certain other non-discretionary cash requirements such as, for example, mandatory principal payments on the Company's long-term debt. Management uses non-GAAP financial measures in evaluating the Company's core operating results and financial performance. Non-GAAP financial measures, which may be inconsistent with similarly captioned measures presented by other companies, should be viewed as a supplement to, and not as a substitute for or superior to, the Company’s reported results prepared in accordance with GAAP. Reconciliations of the Company’s non-GAAP financial measures to the most directly comparable GAAP results are included in the tables at the end of this press release. |
Cover Page Cover Page |
Jan. 24, 2022 |
---|---|
Cover [Abstract] | |
Document Type | false |
Document Period End Date | Jan. 24, 2022 |
Entity Registrant Name | CRANE CO. |
Entity Incorporation, State or Country Code | DE |
Entity File Number | 1-1657 |
Entity Tax Identification Number | 13-1952290 |
Entity Address, Address Line One | 100 First Stamford Place |
Entity Address, City or Town | Stamford |
Entity Address, State or Province | CT |
Entity Address, Postal Zip Code | 06902 |
City Area Code | 203 |
Local Phone Number | 363-7300 |
Written Communications | false |
Soliciting Material | false |
Pre-commencement Tender Offer | false |
Entity Emerging Growth Company | false |
Title of 12(b) Security | Common Stock, par value $1.00 |
Trading Symbol | CR |
Security Exchange Name | NYSE |
Entity Central Index Key | 0000025445 |
Amendment Flag | false |
Document Type | 8-K |
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