Crane Co. (NYSE: CR), Stamford, CT, a diversified manufacturer of highly engineered industrial products, reported third quarter sales of $551 million, down 14% from third quarter 2008. Profit declined 2.8% to $35.1 million.
Core sales declined 15% during the quarter, while sales from acquired businesses contributed a positive 4%, offsetting declines due to foreign currency (3%).
Year to date, sales were $1.65 billion, down 18% from the prior year period. Profit declined 39.9% to $86.2million.
“Despite a 14% decline in sales from the third quarter of 2008, our operating profit and earnings per share were flat compared to 2008, primarily reflecting our success in re-aligning our cost base,” said Eric C. Fast, president and CEO. “In July, we estimated our cost savings would be in excess of $125 million. We now expect that our cost savings for 2009 will exceed $150 million and believe this productivity will provide excellent operating leverage in 2010.”
Since year-end 2007, headcount has been reduced by 17%, or 2,050 people. Additional headcount reductions are expected in the fourth quarter, Fast said.
Segment results
In the Aerospace & Electronics segment, third-quarter sales decreased 14% to $136.9 million, primarily a result of lower demand in the Aerospace group.
Engineered Materials sales were $48.1 million, down 17%, reflecting continued depressed demand from transportation and building products end markets. Headcount was reduced by 42% across the segment compared to year end 2007 levels.
Total Merchandising Systems sales decreased $17.7 million, or 19%, reflecting continued difficult market conditions. Headcount was reduced 21% compared to year-end 2007 levels and further reductions will occur as plant consolidation activities are completed.
Third quarter Fluid Handling segment sales decreased 9% to $266.8 million, which includes a core sales decline of 13% and unfavorable foreign currency translation of 5%, partially offset by sales from acquired businesses (9%).
Sales in the Controls segment declined 39% reflecting continued depressed conditions in the oil & gas and transportation end markets.
