Crane Co. has reported third quarter 2019 sales were $772 million, a decrease of 10 percent compared to the third quarter of 2018. The sales decrease was comprised of a $69 million, or 8 percent, decline in core sales, a $12 million, or 1 percent, impact from unfavorable foreign exchange, and a $2 million impact from divestitures. Sales decreased $10 million, or 17 percent, driven primarily by lower sales to RV customers. Operating margin declined to 11.8 percent, from 14.5 percent, primarily reflecting lower volumes.
Third quarter 2019 operating profit was $109 million, a decline of 12 percent compared to $124 million in the third quarter of 2018. Operating profit margin was 14.2 percent compared to 14.5 percent last year.
“Operationally, we delivered another solid quarter of results,” said Max Mitchell, Crane Co. president and CEO. “While U.S. currency in circulation continues to grow, modest overproduction in recent years has resulted in excess inventory, and our shipments will remain at reduced levels during a period of destocking. These inventory adjustments have happened in the past, and we do expect our shipments to revert back to normal levels in the following fiscal year.
“Consequently, we are reducing our 2019 EPS guidance, excluding special items, to a range of $5.90-$6.10, from our prior range of $6.25-$6.45. We remain very excited about the medium- and long-term demand profile for Crane Currency – both with the U.S. Government, as well as with our international customers – and we see many opportunities for growth and profit improvement at this business.”
