Back to top

Analyst Blog

Crane Co. (CR - Snapshot Report), a diversified machinery company, reported adjusted earnings per share of $1.04 for the third quarter 2013. This represents an increase of 5.0% over the year-ago quarter but three cents decline from the Zacks Consensus Estimate of $1.07 per share.


Crane Co. net sales in the quarter decreased 1.3% year over year and came in at $637.5 million. The decrease was due to 1% fall in core sales and roughly 0.3% negative impact  from foreign currency translation.

Total order backlog in the quarter was $773.5 million, up 0.2% year over year.
Crane Co. generates revenue under four heads, which are briefly discussed below:

Revenue from the Aerospace & Electronics segment came in at $169.8 million, down 0.9% year over year, Merchandising Systems revenue fell 9.6% to $83.6 million and Fluid Handling revenue was at $322.2 million, down 0.9%. The revenue fall was arrested partially by 8.8% increase in Engineered Materials revenue that came in at $62.0 million.


Cost of goods sold of Crane Co. in the third quarter 2013 decreased 0.9% year over year and as a percentage of revenue was at 66.1%, up 30 basis points year over year. Gross margin in the quarter was 33.9%. SG&A expenses, as a percentage of revenue, was 20.0%, against 20.6% in the year-ago quarter.

Crane Co’s adjusted operating margin from continuing operations expanded 80 basis points year over year to 14.4% in the quarter. Adjusted EBITDA was $109.4 million versus $104.9 million in the year-ago quarter while margin in the quarter stood at 17.2%.

Balance Sheet/ Cash Flow

Exiting the third quarter of 2013, cash and cash equivalents of Crane Co. stood at $403.4 million versus $420.9 million in the previous quarter. Long-term debt was at $199.2 million, down compared with $399.2 million in the previous quarter.

Crane Co’s cash flow from operating activities was $80.5 million, up 27.4% from $63.2 million in the year-ago comparable quarter. Capital spending in the quarter was $7.0 million, up 13.2% year over year.

In the quarter, Crane Co. paid dividend totalling $17.4 million and repaid $200.0 million long-term debts. Also, along with the results, the company announced that quarterly dividend of 30 cents will be paid on Dec 10, 2013 to shareholders of record as on Nov 29, 2013.   


For 2013, management of Crane Co. anticipates adjusted earnings per share to be within $4.10-$4.20 range versus $4.10-$4.25 expected earlier due to lower-than-expected revenue growth. Free cash flow is anticipated to be within $190-$210 million range as against $190-$220 million expected earlier.

Crane Co. currently has a market capitalization of $3.6 billion. The stock currently holds Zacks Rank #4 (Sell). Other companies to look out for are Marubeni Corporation with a Zacks Rank #1 (Strong Buy) while Tyco International Ltd. (TYC - Analyst Report) and China Merchants Holdings (International) Company Limited (CMHHY) , each come with a Zacks Rank #2 (Buy).

Please login to or register to post a comment.

New to Zacks?

Start Here

Zacks Investment Research


Are you a new Zacks Member or a visitor to

Top Zacks Features

My Portfolio Tracker

Is it Time to Sell?

One of the most important steps you can take today is to set up your portfolio tracker on Once you do, you'll be notified of major events affecting your stocks and/or funds with daily email alerts.

More Zacks Resources

Zacks Rank Home - Evaluate your stocks and use the Zacks Rank to eliminate the losers and keep the winners.

Mutual Fund Rank Home - Evaluate your funds with the Mutual Fund Rank for both your personal and retirement funds.

Stock/Mutual Fund Screening - Find better stocks and mutual funds. The ones most likely to beat the market and provide a positive return.

My Portfolio - Track your Portfolio and find out where your stocks/mutual funds stack up with the Zacks Rank.

Zacks #1 Rank Top Movers for Zacks #1 Rank Top Movers

Company Symbol Price %Chg
UTD THERAPE… UTHR 117.83 +28.51%
TRIQUINT SE… TQNT 20.67 +6.52%
RF MICRO DE… RFMD 12.47 +6.04%
VASCO DATA… VDSI 14.77 +4.68%
BANCO DO BR… BDORY 15.53 +3.95%