The 2020 Mid-Year Economic Update_long

Crane Co. 3Q Sales Down 14%

Core sales for the diversifed manufacturer declined 15% in the quarter.

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.

About the Author
Leave a Reply

Leave a Comment

Sign Up for the MDM Update Newsletter

The MDM update newsletter is your best source for news and trends in the wholesale distribution industry.

By subscribing, you are agreeing to MDM’s Privacy Policy.
Social Media Auto Publish Powered By :