Crane Co. recently reported full year and fourth quarter 2019 financial results, and provided its 2020 outlook, showing that operating profit was a record $494 million.
“We finished 2019 strong, with solid operational performance across our businesses, and we took several other actions to further strengthen Crane for continued profitable growth,” said Max Mitchell, president and CEO. “In addition to solid progress on numerous growth and productivity initiatives last year, we delivered a record $325 million of free cash flow. We also repurchased $80 million of shares during the fourth quarter, and today, we raised our dividend by 10 percent, further reflecting confidence in our long-term outlook.”
Fourth quarter 2019 sales were $838 million, a slight decline compared to the fourth quarter of 2018. The sales decline was comprised of $4 million of unfavorable foreign exchange, partially offset by $2 million of core growth.
“We were also active last quarter on inorganic growth opportunities,” said Mitchell. “As previously announced, we signed a definitive agreement in December 2019 to acquire CIRCOR’s I&S business for $172 million on a cash-free and debt-free basis, and in December 2019, we acquired Cummins Allison for $160 million on a cash-free and debt-free basis.”
Fourth quarter 2019 operating loss was $135 million, compared to operating profit of $110 million in the fourth quarter of 2018. Operating profit of $128 million increased 3 percent compared to $125 million in the fourth quarter of last year.
Full year 2019 sales were $3.3 billion, a decline of 2 percent compared to 2018. The sales decline was comprised of $53 million, or 2 percent, of unfavorable foreign exchange, and a $13 million decline in core sales, partially offset by a $4 million net benefit from acquisitions.
Full year 2019 operating profit was $210 million, compared to $441 million in 2018. Operating margin of 6.4 percent compared to 13.2 percent last year.
“Overall, I am proud of our operational performance, and excited about our prospects as we continue to deliver on growth investments and new product development, positioning Crane for years of profitable growth,” said Mitchell. “Based on our current medium-term outlook, including both the completion of the U.S. government’s currency destocking and resumption of 737-MAX production during 2020, I believe that Crane is on-track to achieve our previously disclosed 2021 adjusted EPS target of $7.50 to $8.”