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Crane Co. Reports Operating Results (10-Q)

August 03, 2012 | About:
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10qk

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Crane Co. (CR) filed Quarterly Report for the period ended 2012-06-30.

Crane Co. has a market cap of $2.34 billion; its shares were traded at around $39.71 with a P/E ratio of 11 and P/S ratio of 0.9. The dividend yield of Crane Co. stocks is 2.6%.

Highlight of Business Operations:

Second quarter 2012 sales increased $24.5 million, or 3.9%, compared to the second quarter of 2011. Core business sales for the second quarter increased approximately $36.3 million, or 5.8%. Sales also increased $6.4 million, or 1.0%, due to the net impact of divestitures and acquisitions. The impact of currency translation decreased reported sales by approximately $18.2 million, or 2.9%, as the U.S. dollar strengthened against other major currencies in the second quarter of 2012 compared to the second quarter of 2011. Net sales related to operations outside the U.S. were 41.0% and 41.1% of total net sales for the quarters ended June 30, 2012 and 2011, respectively.

Second quarter 2012 sales of $54.5 million decreased $5.6 million, or 9.3%, reflecting lower sales to our transportation-related customers and, to a lesser extent, our international and building product customers. We experienced a 28.7% sales decrease to our transportation-related customers reflecting difficult competitive conditions and customer production delays. Sales to our building products customers decreased by 4.6% reflecting soft commercial construction markets. Sales to our traditional RV manufacturers remained flat compared to prior year. Operating profit in the second quarter of 2012 decreased $3.6 million, or 39.3%, primarily as a result of lower sales. Operating profit in the second quarter of 2012 included restructuring charges of $1.1 million. Our restructuring actions include the anticipated closure of a small manufacturing facility in the United Kingdom, which had total sales of $8 million in 2011. We expect to supply selected European customers from plants located in the United States.

Year to date 2012 sales increased $69.8 million, or 5.7%, over the same period in 2011. Year to date 2012 core business sales increased approximately $82.7 million, or 6.7%. Year to date 2012 sales increased $10.8 million, or 0.9% due to the impact of acquisitions, net of divestitures. The impact of currency translation decreased reported sales by approximately $23.7 million, or 1.9%, as the U.S. dollar strengthened against other major currencies in the first six months of 2012 compared to the same period in 2011. Net sales related to operations outside the U.S. for the six month periods ended June 30, 2012 and 2011 were 41.0% and 40.1% of total net sales, respectively.

Year to date Aerospace Group sales of $220.0 million increased $17.0 million, or 8.4%, from $203.0 million in the prior year period. The increase was largely attributable to higher OEM product sales of 10.8% and higher aftermarket product sales of 5.1%. The OEM sales increase reflects higher commercial product sales associated with business jet and large aircraft manufacturers. The aftermarket sales increase reflects modernization and upgrade and repair and overhaul product sales. During the first half of 2012, sales to OEMs and sales to aftermarket customers were 59.4% and 40.6%, respectively, of total sales, compared to 58.1% and 41.9%, respectively, in the same period last year. Operating profit increased by $7.4 million in the first half of 2012, compared to the same period in the prior year, primarily due to leverage on the higher sales volume.

Year to date 2012 sales decreased $9.3 million, or 7.6%, reflecting lower sales to transportation-related and international customers and, to a lesser extent, RV manufacturers and building product customers. Sales to our transportation-related customers decreased by 23.8%, sales to our international customers decreased 25.6%, sales to RV manufacturers decreased 1.8% and sales to our building products customers decreased 1.2%. Operating profit in the first six months of 2012 decreased $5.3 million, or 27.6%, primarily as a result of lower sales, and to a lesser extent, restructuring charges of $1.1 million recorded in the second quarter of 2012.

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