Crane Co., a manufacturer of industrial products, reported third quarter 2018 sales were a record $856 million, an increase of 23 percent compared to $696 million in the third quarter of 2017. The sales increase was comprised of a $132 million, or 19 percent, benefit from acquisitions and core sales growth of $40 million, or 6 percent, partially offset by $12 million, or 2 percent, of unfavorable foreign exchange.
Operating profit in the third quarter was $124 million, an increase of 21 percent compared to $102 million in the third quarter of 2017. Operating profit margin of 14.5 percent compared to 14.7 percent in the third quarter of 2017. Excluding Special Items, operating profit in the third quarter was $138 million, an increase of 31 percent compared to $106 million in the third quarter of 2017. Excluding Special Items, operating profit margin of 16.1 percent increased 90 basis points compared to the third quarter of 2017 (Please see the attached Non-GAAP Financial Measures tables for a detailed reconciliation of reported results to adjusted measures.)
“We delivered another quarter of strong operating results, with record sales and a record adjusted operating profit margin of 16.1 percent,” said Max Mitchell, Crane president and CEO. “With demand solid across most of our major end markets, we continue to focus on positioning Crane for the future, and we are executing on a wide range of growth initiatives as well as on our previously announced repositioning activities and the integration of Crane Currency. To date, we are tracking ahead of the midpoint of our previously issued guidance, driven by further strengthening in our Aerospace & Electronics and Crane Currency markets, along with faster repayment of short-term debt.”
Sales, however, decreased $8 million, or 12 percent, driven primarily by lower sales to the RV market. Operating margin declined to 14.5 percent, primarily reflecting lower volumes, partially offset by strong productivity. Excluding special items, operating margins declined to 14.8 percent.
