Hot Stock in the Spotlight: Crane Co. (NYSE: CR)

On Wednesday, Shares of Crane Co. (NYSE: CR) rose 0.53% to $93.98. The stock recorded $92.40 as its minimum price and hit the max level of $102.65, during its most recent trading session. It traded total volume of 268,465 shares lower than the average volume of 312.31K shares.

Crane Co. (CR), a diversified manufacturer of highly engineered industrial products, stated full year and fourth quarter 2017 financial results, and offered an update on its 2018 outlook.

Fourth Quarter 2017 Results:

Fourth quarter 2017 sales were $714.0M, up 5% contrast to 2016. Core sales increased $13.0M, or 2%, with $14.0M, or 2%, of favorable foreign exchange, and a $5.0M, or 1%, net acquisition benefit. The fourth quarter 2017 GAAP net loss was $0.48 per share, contrast to a fourth quarter 2016 GAAP net loss of $1.09 per share. Fourth quarter 2017 results include: a tax charge of $87.0M, or $1.44 per diluted share, related to the TCJA; an after-tax charge of $8.0M, or $0.13 per diluted share, related to repositioning, net; and, an after-tax charge of $5.0M, or $0.08 per diluted share, for M&A related items. Fourth quarter 2016 results include an after-tax net asbestos provision of $125.0M, or $2.13 per diluted share. Excluding Special Items, fourth quarter 2017 EPS was $1.18, contrast to $1.02 in 2016.

Fourth quarter 2017 operating profit was $91.0M contrast to an operating loss of $92.0M in 2016. Excluding Special Items, fourth quarter 2017 operating profit was $109.0M, a boost of 8% contrast to 2016.

Full Year 2017 Results:

Full year 2017 sales were $2.80B, up 1% contrast to 2016. Core sales increased $31.0M, or 1%, and net acquisitions contributed $14.0M, partially offset by $7.0M of unfavorable foreign exchange. Full year 2017 GAAP EPS was $2.84, contrast to $2.07 in 2016. Full year 2017 results include: a tax charge of $87.0M, or $1.44 per share, related to the TCJA; an after-tax charge of $8.0M, or $0.13 per share, related to repositioning, net; and, an after-tax charge of $7.0M, or $0.11 per share, for M&A related items. Full year 2016 results include an after-tax net asbestos provision of $125.0M, or $2.11 per share, and a $3.0M net after-tax legal settlement charge, or $0.05 per share. Excluding Special Items, 2017 EPS of $4.53 increased 7% contrast to $4.23 in 2016.

Full year 2017 operating profit was $402.0M contrast to $200.0M in 2016. Excluding Special Items, full year 2017 operating profit was $423.0M, a boost of 6% contrast to $398.0M in 2016. Full year 2017 adjusted operating margin of 15.2% increased 70 basis points contrast to 14.5% in 2016.

Cash Flow and Other Financial Metrics:

Cash offered by operating activities for full year 2017 was $318.0M, flat contrast to $318.0M in 2016. Free cash flow (cash offered by operating activities less capital spending) was $269.0M in 2017, contrast to $267.0M in 2016. The Company’s cash position was $706.0M at December 31, 2017, contrasts to $510.0M at December 31, 2016. Total debt was $743.0M at December 31, 2017, contrasts to $745.0M at December 31, 2016. On January 10, 2018, Crane Co. attained Crane Currency for $800.0M on cash free and debt free basis using a combination of short-term debt and cash on hand.

Repositioning Programs:

2018 benefits from repositioning actions in our Fluid Handling, Payment & Merchandising Technologies, and Aerospace & Electronics businesses are expected to be about $8.0M, increasing to an annual run-rate of about $30.0M by the end of 2020. Net pre-tax charges associated with these repositioning activities are expected to be about $30.0M through 2020, counting the $13.0M net charge in the fourth quarter of 2017 and $11.0M expected during 2018.

CR has the market capitalization of $5.48B and its EPS growth ratio for the past five years was 5.00%. The return on assets ratio of the Company was 4.80% while its return on investment ratio stands at 14.10%. Price to sales ratio was 1.97 while 74.40% of the stock was owned by institutional investors.

Leon Constant

Reporter

I am Leon Constant and I focus on breaking news stories and ensuring we (“The Stock Gem”) offer timely reporting on some of the most recent stories released through market wires about “Basic Material Stocks”. I have formerly spent over 3 years as a trader in U.S. Stock Market and is now semi-stepped down. I work on a full time basis for thestockgem.com specializing in quicker moving active shares with a short term view on investment opportunities and trends.

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