Crane Co. Reports Fourth Quarter Results; Posts Record EPS in 2012; Provides Updated 2013 EPS Guidance of $4.10 - $4.30

  Crane Co. Reports Fourth Quarter Results; Posts Record EPS in 2012; Provides
  Updated 2013 EPS Guidance of $4.10 - $4.30

Business Wire

STAMFORD, Conn. -- January 28, 2013

Crane Co. (NYSE: CR), a diversified manufacturer of highly engineered
industrial products, reported fourth quarter 2012 earnings from continuing
operations of $0.79 per share, compared to a net loss of $2.18 per share in
the fourth quarter of 2011. Fourth quarter 2012 results included after-tax
charges of $4 million, or $0.07 per share, associated with previously
announced repositioning actions, as well as transaction-related costs of $4
million, or $0.07 per share, related to the recently announced acquisition of
MEI Conlux Holdings. Fourth quarter 2011 results included an after-tax
asbestos provision of $157 million and an after-tax environmental provision of
$20 million (totaling $3.05 per share). Excluding these Special Items, fourth
quarter 2012 and 2011 earnings per diluted share from continuing operations
were $0.92 and $0.86, respectively. The Company noted that adjusted fourth
quarter 2012 earnings of $0.92 did not include a previously anticipated $0.05
per share benefit associated with the reinstatement of the R&D tax credit in
the United States, as the legislation was not enacted until early January
2013. (Please see the attached Non-GAAP Financial Measures table for pretax,
after-tax and earnings per share amounts of Special Items.)

Fourth quarter 2012 sales from continuing operations of $630 million increased
$10 million, or 1.6%, compared to the fourth quarter of 2011, resulting
entirely from core sales growth. Operating profit from continuing operations
in the fourth quarter of 2012 was $76.2 million compared to an operating loss
of $194.0 million in the fourth quarter of 2011. Excluding Special Items,
fourth quarter 2012 operating profit from continuing operations increased 8.5%
to $84.6 million compared to $78.0 million in the fourth quarter of 2011, and
operating profit margin increased to 13.4%, compared to 12.6% in the fourth
quarter of 2011. (Please see the attached Non-GAAP Financial Measures table.)

Full Year 2012 Results

Total sales from continuing operations in 2012 were $2.58 billion, an increase
of 3.1% from $2.5 billion in 2011, resulting from a core sales increase of
$105 million (4.2%) and an increase from acquisitions of $12 million (0.5%),
partially offset by unfavorable foreign currency translation of $38 million
(1.6%).

Operating profit from continuing operations for the full year 2012 was $310.4
million compared to $36.6 million in 2011. Excluding Special Items, 2012
operating profit from continuing operations increased 9% to $334.9 million,
compared to $308.5 million in 2011, and operating profit margin increased to
13.0%, compared to 12.3% in 2011.

Full year 2012 earnings per diluted share were $3.72, compared to $0.44 per
share in 2011. Excluding Special Items, 2012 earnings per diluted share
increased 9% to $3.75, compared to $3.43 per share in 2011. Full year 2012
results did not include the previously anticipated $0.05 per share benefit
associated with the reinstatement of the R&D tax credit (Please see the
attached Non-GAAP Financial Measures table.) Order backlog was $749 million at
December 31, 2012 compared to $778 million at December 31, 2011.

“We are pleased to report record full year EPS of $3.75, excluding Special
Items, which is in line with our most recent guidance,” said Crane Co. chief
executive officer, Eric C. Fast. “Our adjusted, full year operating margin was
13%, a substantial improvement over 12.3% in 2011. In 2013, we are expecting
our third consecutive year of record earnings, with continued operating margin
expansion and strong free cash flow. Our 2013 forecast does not include the
recently announced acquisition of MEI which, in combination with Crane Payment
Solutions, establishes a third large growth platform for Crane.”

Cash Flow and Financial Position

Cash provided by operating activities in the fourth quarter of 2012 was $155.5
million, compared to $84.8 million in the fourth quarter of 2011, including
the effect of a $30 million discretionary pension contribution made in
December 2011. Free cash flow (cash provided by operating activities less
capital spending) for the fourth quarter of 2012 was $146.1 million, compared
to $77.8 million in the fourth quarter of 2011. For the full year 2012, cash
provided by operating activities was $234.8 million compared to $149.8 million
in 2011. Free cash flow for the full year 2012 was $205.4 million, compared to
$115.1 million in the prior year. The Company repurchased 1,271,592 shares of
its common stock during 2012 at a cost of $50 million. The Company’s cash
position was $424 million at December 31, 2012, as compared to $245 million at
December 31, 2011. (Please see the Condensed Statement of Cash Flows and
Non-GAAP table.)

Repositioning Actions

In the second quarter of 2012, the Company initiated repositioning actions
relating to the transfer of certain manufacturing operations from higher cost
to lower cost Company facilities, principally in response to weak European
economic conditions. Following aggregate pre-tax charges of $16.1 million
through the third quarter, as planned, the Company incurred additional pre-tax
costs of $4.5 million, or $0.07 per share, during the fourth quarter (total
pre-tax charges of $20.6 million, or $0.29 per share, during 2012). These
repositioning actions, which are substantially complete, are expected to
generate $12 million in savings in 2013, of which $10 million relates to Fluid
Handling.

Segment Results

All comparisons detailed in this section refer to continuing operations for
the fourth quarter 2012 versus the fourth quarter 2011. The commentary refers
to the results before Special Items.

Aerospace & Electronics

                                         
                          Fourth Quarter       Change
(dollars in millions)     2012     2011             
                                                        
Sales                     $176.1    $172.0     $4.1     2%
                                                        
Operating Profit          $39.2     $38.8      $0.4     1%
                                                        
Profit Margin             22.3%     22.6%
                                                        

Fourth quarter 2012 sales increased $4.1 million, or 2%, reflecting a $3.1
million increase (3%) in Aerospace Group sales and an increase of $1.0 million
(2%) in Electronics Group revenue. The Aerospace sales growth reflected higher
OEM and aftermarket activity. Segment operating profit increased by 1% and
margins remained strong at 22.3%, driven by the impact of the higher sales and
lower engineering expense in the Aerospace Group, partially offset by lower
profits in the Electronics Group.

Aerospace & Electronics order backlog was $378 million at December 31, 2012
compared to $393 million at September 30, 2012 and $411 million at December
31, 2011.

Engineered Materials

                                                          
                                           Fourth Quarter      Change
(dollars in millions)                      2012    2011              
                                                                          
Sales                                      $46.9     $45.0     $1.9       4%
                                                                          
Operating Profit                           $3.3      $4.6      ($1.2)     -27%
Operating Profit, before Special           $4.7      $4.6      $0.1       2%
Items*
                                                                          
Profit Margin                              7.1%      10.1%
Profit Margin, before Special Items        10.0%     10.1%
                                                                          

* Excludes $1.3 million of repositioning charges in Q4 '12 related to the
closure of a manufacturing facility.

Segment sales of $46.9 million were 4% higher than the fourth quarter of 2011,
reflecting higher sales to recreational vehicle manufacturers. Operating
profit increased 2% and margins were generally flat, reflecting the impact of
the higher sales, offset by higher raw material costs.

Merchandising Systems

                                                           
                                            Fourth Quarter      Change
(dollars in millions)                       2012    2011            
                                                                         
Sales                                       $94.2     $86.2     $8.0     9%
                                                                         
Operating Profit                            $10.4     $7.7      $2.7     36%
Operating Profit, before Special Items*     $11.8     $7.7      $4.1     53%
                                                                         
Profit Margin                               11.1%     8.9%
Profit Margin, before Special Items         12.6%     8.9%
                                                                         

* Excludes $1.4 million of repositioning charges in Q4 '12 related to facility
exit costs.

Merchandising Systems sales of $94.2 million increased $8.0 million, or 9%,
reflecting strong sales growth in both Payment Solutions and Vending
Solutions. Operating profit and margins increased, reflecting the impact of
the higher sales and productivity gains in both businesses.

Fluid Handling

                                                                   
                                           Fourth Quarter       Change
(dollars in millions)                      2012     2011
                                                                           
Sales                                      $291.9    $294.4     ($2.5)     -1%
                                                                           
Operating Profit                           $39.2     $38.3      $0.9       2%
Operating Profit, before Special           $40.6     $38.3      $2.3       6%
Items*
                                                                           
Profit Margin                              13.4%     13.0%
Profit Margin, before Special Items        13.9%     13.0%
                                                                           

* Excludes $1.4 million of repositioning charges in Q4 '12 related to
transferring production to lower cost Company facilities.

Fourth quarter 2012 sales declined $2.5 million, or 1%, driven primarily by
weaker European end markets. Segment operating margin improved to 13.9%,
reflecting improved execution, productivity gains and solid cost management.
Fluid Handling order backlog was $327 million at December 31, 2012, compared
to $331 million at September 30, 2012 and $314 million at December 31, 2011.

Controls

                                                
                          Fourth Quarter      Change
(dollars in millions)     2012      2011
                                                         
Sales                     $20.8     $22.2     ($1.4)     -6%
                                                         
Operating Profit          $2.3      $2.3      ($0.0)     -2%
                                                         
Profit Margin             11.1%     10.5%
                                                         

Fourth quarter 2012 sales of $20.8 million decreased 6% compared to the fourth
quarter of 2011, reflecting slightly weaker industrial demand. Operating
profit was flat, as deleverage on the lower sales was offset by productivity
gains.

Updated 2013 Guidance

The Company revised its preliminary 2013 guidance which was provided on
December 20, 2012. The updated guidance reflects lower pension expense
associated with the curtailment of the Company’s U.S. defined benefit pension
plan, as well as a slightly reduced outlook for 2013 core sales growth of
between 1% and 3% (excluding acquisition and foreign exchange impacts).
Earnings per share in 2013 are now estimated to be in a range of $4.10 to
$4.30, representing an increase of 11%-16% over 2012 earnings per diluted
share of $3.70 (before Special Items and on a continuing operations basis,
which excludes profits from discontinued operations of $0.05 per share in
2012). The 2013 guidance does not include potential impacts from the pending
acquisition of MEI. Excluding inventory step-up and one-time transaction and
integration costs, the Company expects MEI to be accretive to earnings within
the first year of acquisition by approximately $.25 per share, including $.05
in synergies. The Company expects 2013 free cash flow (cash provided by
operating activities less capital spending) to be in the range of $190 - $220
million, including the effect of asbestos related cash flows.

Segment-specific sales and operating profit guidance will be provided at the
Company’s Investor Day conference on February 27, 2013.

Please see the Non-GAAP Financial Measures table attached to this press
release for supporting details. Additional information with respect to the
Company’s asbestos liability and related accounting provisions and cash
requirements is set forth in the Current Report on Form 8-K filed with a copy
of this press release.

Conference Call

Crane Co. has scheduled a conference call to discuss the fourth quarter
financial results on Tuesday, January 29, 2013 at 10:00 A.M. (Eastern). All
interested parties may listen to a live webcast of the call at
http://www.craneco.com. An archived webcast will also be available to replay
this conference call directly from the Company’s website.

Crane Co. Investor Day

The Company will hold its annual Investor Day conference on Wednesday,
February 27, in New York City from 8:30 am to noon and will be available on
the web at www.craneco.com.

Crane Co. is a diversified manufacturer of highly engineered industrial
products. Founded in 1855, Crane provides products and solutions to customers
in the aerospace, electronics, hydrocarbon processing, petrochemical,
chemical, power generation, automated merchandising, transportation and other
markets. The Company has five business segments: Aerospace & Electronics,
Engineered Materials, Merchandising Systems, Fluid Handling, and Controls.
Crane has approximately 11,000 employees in North America, South America,
Europe, Asia and Australia. Crane Co. is traded on the New York Stock Exchange
(NYSE:CR). For more information, visit www.craneco.com.

This press release may contain forward-looking statements as defined by the
Private Securities Litigation Reform Act of 1995. These statements present
management’s expectations, beliefs, plans and objectives regarding future
financial performance, and assumptions or judgments concerning such
performance. Any discussions contained in this press release, except to the
extent that they contain historical facts, are forward-looking and accordingly
involve estimates, assumptions, judgments and uncertainties. There are a
number of factors that could cause actual results or outcomes to differ
materially from those addressed in the forward-looking statements. Such
factors are detailed in the Company’s Annual Report on Form 10-K for the
fiscal year ended December 31, 2011 and subsequent reports filed with the
Securities and Exchange Commission.


CRANE CO.
Income Statement Data
(in thousands, except per share data)
                                                            
                     Three Months Ended          Twelve Months Ended
                     December 31,                December 31,
                      2012          2011           2012            2011
Net Sales:
Aerospace &         $ 176,081     $ 171,973      $ 701,208       $ 677,663
Electronics
Engineered            46,900        45,037         216,503         220,071
Materials
Merchandising         94,160        86,204         371,901         373,907
Systems
Fluid Handling        291,884       294,386        1,195,501       1,140,315
Controls              20,763       22,204        93,955         88,413    
Total Net Sales     $ 629,788    $ 619,804     $ 2,579,068    $ 2,500,369 
                                                                   
Operating Profit
(Loss) from
Continuing
Operations:
Aerospace &         $ 39,181      $ 38,785       $ 156,015       $ 145,624
Electronics
Engineered            3,344         4,562          24,522          29,754
Materials
Merchandising         10,447        7,705          33,771          30,337
Systems
Fluid Handling        39,247        38,329         148,167         149,803
Controls              2,300         2,336          12,813          11,228
Corporate             (18,336 )     (13,748  )     (64,847   )     (58,201   )
Asbestos              -             (241,647 )     -               (241,647  )
Provision
Environmental         -            (30,327  )     -              (30,327   )
Provision
Total Operating
Profit (Loss)         76,183        (194,005 )     310,441         36,571
from Continuing
Operations
                                                                   
Interest Income       587           514            1,879           1,635
Interest Expense      (6,717  )     (6,730   )     (26,831   )     (26,255   )
Miscellaneous -       (180    )     (452     )     (884      )     2,810*    
Net
Income (Loss)
from Continuing       69,873        (200,673 )     284,605         14,761
Operations Before
Income Taxes
Provision for         23,901       (74,991  )     88,416         (8,055    )
Income Taxes
Income (Loss)
from Continuing       45,972        (125,682 )     196,189         22,816
Operations
                                                                   
Profit from
Discontinued
Operations            -             1,350          3,777           5,693
attributable to
common
shareholders (a)
Gain from Sales
of Discontinued
Operations            -             -              29,445          -
attributable to
common
shareholders (b)
                                                                   
Profit from
Discontinued
Operations
attributable to       -             878            2,456           3,700
common
shareholders, net
of tax (a)
Gain from Sales
of Discontinued
Operations
attributable to       -            -             19,176         -         
common
shareholders, net
of tax (b)
Gain / Profit
from Discontinued     -             878            21,632          3,700
Operations, net
of tax
                                                                   
Net income (loss)
before allocation     45,971        (124,805 )     217,821         26,516
to noncontrolling
interests
                                                                   
Less:
Noncontrolling
interest in           327           324            828             201
subsidiaries'
earnings
                                                                
Net income (loss)
attributable to     $ 45,644     $ (125,129 )   $ 216,993      $ 26,315    
common
shareholders
                                                                   
Share Data:
Earnings (Loss)
per share from      $ 0.79        $ (2.18    )   $ 3.35          $ 0.38
Continuing
Operations
Earnings per
share from            -            0.02          0.37           0.06      
Discontinued
Operations
Earnings (Loss)     $ 0.79       $ (2.16    )   $ 3.72         $ 0.44      
per Diluted Share
                                                                   
Average Diluted
Shares                57,783        57,903         58,293          59,204
Outstanding
Average Basic
Shares                57,008        57,903         57,443          58,120
Outstanding
                                                                   
Supplemental
Data:
Cost of Sales       $ 417,569     $ 417,950      $ 1,708,240     $ 1,653,238
Asbestos                            241,647                        241,647
Provision
Environmental                       30,327                         30,327
Provision
Selling, General      131,505       123,885        539,755         538,586
& Administrative
Repositioning         4,531         -              20,632          -
Charges
Depreciation and      14,141        15,735         57,263          62,943
Amortization **
Stock-Based
Compensation          4,459         3,840          17,319          14,972
Expense


* Primarily related to the sale of a building and the divestiture of a small
product line in the three months ended March 31, 2011.
** Amount included within cost of sales and selling, general & administrative
costs.


(a) Amounts represent the operating profit, and after-tax profit, from the
Houston Service Center and Azonix Corporation businesses divested in June
2012.
(b) Amounts represent the pre-tax and after-tax gains from the June 2012 sales
of both the Houston Service Center and the Azonix Corporation.



CRANE CO.
Condensed Balance Sheets
(in thousands)
                                                             
                                                 December 31,     December 31,
                                                 2012             2011
                                                                  
ASSETS
Current Assets
Cash and Cash Equivalents                      $ 423,947        $ 245,089
Accounts Receivable, net                         333,330          349,250
Current Insurance Receivable - Asbestos          33,722           16,345
Inventories, net                                 352,725          360,689
Other Current Assets                             36,797           60,859
Total Current Assets                             1,180,521        1,032,232
                                                                  
Property, Plant and Equipment, net               268,283          284,146
Long-Term Insurance Receivable - Asbestos        171,752          208,952
Other Assets                                     455,530          497,377
Goodwill                                         813,792          820,824
                                                                  
Total Assets                                   $ 2,889,878      $ 2,843,531
                                                                  
LIABILITIES AND EQUITY
Current Liabilities
Notes Payable and Current Maturities of        $ 1,123          $ 1,112
Long-Term Debt
Accounts Payable                                 182,731          194,158
Current Asbestos Liability                       91,670           100,943
Accrued Liabilities                              220,678          226,717
Income Taxes                                     15,686           10,165
Total Current Liabilities                        511,888          533,095
                                                                  
Long-Term Debt                                   399,092          398,914
Long-Term Deferred Tax Liability                 36,853           41,668
Long-Term Asbestos Liability                     704,195          792,701
Other Liabilities                                310,474          255,097
                                                                  
Total Equity                                     927,376          822,056
                                                                  
Total Liabilities and Equity                   $ 2,889,878      $ 2,843,531
                                                                  


CRANE CO.
Condensed Statements of Cash Flows
(in thousands)
                                                               
                        Three Months Ended          Twelve Months Ended
                        December 31,                December 31,
                         2012       2011         2012        2011     
Operating Activities:
Net income
attributable to         $ 45,644     $ (125,129 )   $ 216,993     $ 26,315
common shareholders
Noncontrolling
interest in              327        324          828         201      
subsidiaries'
earnings
Net income before
allocations to            45,971       (124,805 )     217,821       26,516
noncontrolling
interests
Asbestos Provision        -            241,647        -             241,647
Environmental charge      -            30,327         -             30,327
Gain on divestiture       -            -              (29,445 )     (4,258   )
Restructuring - Non       1,078        -              3,855         -
Cash
Depreciation and          14,141       15,735         57,263        62,943
amortization
Stock-based               4,459        3,840          17,319        14,972
compensation expense
Defined benefit plans
and postretirement        5,321        1,959          20,090        6,770
expense
Deferred income taxes     30,583       (66,574  )     55,000        (43,923  )
Cash provided by
(used for) operating      81,146       34,957         1,824         (41,955  )
working capital
Defined benefit plans
and postretirement        (1,041  )    (31,059  ) *   (5,504  )     (48,113  )
contributions
Environmental
payments, net of          (2,115  )    (799     )     (13,371 )     (9,534   )
reimbursements
Other                    (6,134  )   (366     )    (12,139 )    (6,303   )
Subtotal                  173,409      104,862        312,713       229,089
Asbestos related
payments, net of         (17,906 )   (20,044  )    (77,957 )    (79,277  )
insurance recoveries
Total provided by        155,503    84,818       234,756     149,812  
operating activities
                                                                  
Investing Activities:
Capital expenditures      (9,364  )    (7,034   )     (29,308 )     (34,737  )
Proceeds from
disposition of            4,184        73             6,438         4,793
capital assets
Payment for
acquisition, net of       -            (996     )     -             (36,590  )
cash acquired
Proceeds from            480        -            54,079      1,000    
divestiture
Total provided by
(used for) investing     (4,700  )   (7,957   )    31,209      (65,534  )
activities
                                                                  
Financing Activities:
Dividends paid            (15,976 )    (15,035  )     (61,974 )     (56,992  )
Reacquisition of          -            (30,000  )     (49,991 )     (79,999  )
shares on open market
Stock options
exercised - net of        4,630        3,295          13,056        23,232
shares reacquired
Excess tax benefit
from stock-based          370          391            3,603         6,097
compensation
Change in short-term     -          333          -           (1,003   )
debt
Total used for           (10,976 )   (41,016  )    (95,306 )    (108,665 )
financing activities
                                                                  
Effect of exchange
rate on cash and cash    3,584      (1,939   )    8,199       (3,465   )
equivalents
Increase (decrease)
in cash and cash          143,411      33,906         178,858       (27,852  )
equivalents
Cash and cash
equivalents at          280,536    211,183      245,089    272,941  
beginning of period
Cash and cash
equivalents at end of  $ 423,947   $ 245,089     $ 423,947   $ 245,089  
period
                                                                  
* Includes a $30 million
discretionary pension contribution.


                                                
CRANE CO.
Order Backlog
(in thousands)
                                                                            
                 December    September   June 30,    March 31,    December
                 31,         30,                                  31,
                 2012        2012       2012       2012        2011
                                                                            
Aerospace &      $ 378,152   $ 392,862   $ 423,282   $ 437,822    $ 410,794
Electronics
Engineered         12,689      11,357      13,884      11,129       11,110
Materials
Merchandising      14,686      19,957      23,587      30,033       15,212
Systems
Fluid Handling     326,863     330,824     334,696     337,538 *    313,715 *
Controls          16,507     17,296    16,187    29,770  **  27,120  **
Total Backlog    $ 748,897   $ 772,296  $ 811,636  $ 846,292   $ 777,951


* Includes Order Backlog of $2.9 million at March 31, 2012 and $1.9 million at
December 31, 2011 pertaining to a business divested in June 2012.

** Includes Order Backlog of $11.3 million at March 31, 2012 and $9.6 million
at December 31, 2011 pertaining to a business divested in June 2012.



CRANE CO.
Non-GAAP Financial Measures
(in thousands)
                                                                                  
                 Three Months Ended           Twelve Months Ended             Percent    Percent
                                                                              Change     Change
                 December 31,                 December 31,                    December  December
                                                                              31, 2012   31, 2012
                  2012        2011         2012          2011         Three     Twelve
                                                                              Months     Months
INCOME ITEMS   
                                                                                         
Net Sales        $ 629,788     $ 619,804      $ 2,579,068     $ 2,500,369     1.6   %    3.1    %
                                                                                         
                                                                                         
Operating
Profit (Loss)
from               76,183        (194,005 )     310,441         36,571        N/A        748.9  %
Continuing
Operations
Percentage of      12.1    %     -31.3    %     12.0      %     1.5       %
Sales
                                                                                         
Special Items
impacting
Operating
Profit (Loss)
from
Continuing
Operations:
                                                                                         
Repositioning      4,531                        20,632
Charges (a)
                                                                                         
Asbestos
Provision -                      241,647                        241,647
Pre-Tax (b)
                                                                                         
Environmental
Provision -                      30,327                         30,327
Pre-Tax (c)
                                                                                         
Non-deductible
Acquisition        3,874                        3,874
Transaction
Costs (d)
                                                           
Operating
Profit from
Continuing       $ 84,588     $ 77,969      $ 334,947      $ 308,545      8.5   %    8.6    %
Operations
before Special
Items
                                                                                         
Percentage of      13.4    %     12.6     %     13.0      %     12.3      %
Sales
                                                                                         
                                                                                         
Net Income
(Loss)
Attributable     $ 45,644      $ (125,129 )   $ 216,993       $ 26,315
to Common
Shareholders
Per Diluted      $ 0.79        $ (2.16    )   $ 3.72          $ 0.44          N/A        737.5  %
Share
                                                                                         
Special Items
impacting Net
Income (Loss)
Attributable
to Common
Shareholders:
                                                                                         
Repositioning
Charges - Net      3,896                        16,724
of Tax (a)
Per Share        $ 0.07                       $ 0.29
                                                                                         
Asbestos
Provision -                      157,071                        157,071
Net of Tax (b)
Per Share                      $ 2.71                         $ 2.65
                                                                                         
Environmental
Provision -                      19,713                         19,713
Net of Tax (c)
Per Share                      $ 0.34                           0.33
                                                                                         
Non-deductible
Acquisition        3,874                        3,874
Transaction
Costs (d)
Per Share        $ 0.07                       $ 0.07
                                                                                         
Gain on
Divestitures -                                  (19,176   )
Net of Tax (e)
Per Share                                     $ (0.33     )
                                                           
Net Income
Attributable
To Common        $ 53,414     $ 51,654      $ 218,416      $ 203,098      3.4   %    7.5    %
Shareholders
Before Special
Items
Per Diluted      $ 0.92        $ 0.88         $ 3.75          $ 3.43          5.3   %    9.2    %
Share
                                                                                         
Profit from
Discontinued
Operations
attributable       -             (878     )     (2,456    )     (3,700    )
to common
shareholders,
net of tax (f)
Per Share                      $ (0.01    )   $ (0.04     )   $ (0.06     )
                                                           
Net Income
Attributable
To Common
Shareholders     $ 53,414     $ 50,776      $ 215,960      $ 199,398   
Before Special
Items from
Continuing
Operations
Per Diluted      $ 0.92        $ 0.86         $ 3.70          $ 3.37          7.1   %    10.0   %
Share


In the three months ended December 31, 2011, Average Shares Outstanding
excluding the effect of diluted stock options were used to compute the per
share amounts since this period was in a loss position. Had Net Income
Attributable To Common Shareholders been reported for this period, Average
Shares Outstanding would have included the effect of diluted stock options
when computing per share amounts (see chart below).

                                                               
    Average Basic Shares Outstanding                                57,903
    Effect of Diluted Stock Options                                 915
    Average Shares Outstanding including the effect of Stock        58,818
    Options
                                                                    

(a) The Company incurred repositioning charges in the second quarter, third
quarter and fourth quarter of 2012, associated with productivity actions. The
charges included severance and impairment costs related to the shutdown of
certain facilities, the transfer of certain manufacturing operations, staff
reduction actions and a pension curtailment charge.

(b) During the three months ended December 31, 2011, the Company recorded an
Asbestos Provision.

(c) During the three months ended December 31, 2011, the Company recorded a
charge related to an increase in the Company's expected liability at its
Goodyear, AZ Superfund Site.

(d) During the three months ended December 31, 2012, the Company recorded
non-deductible transaction costs associated with the potential acquisition of
MEI.

(e) In June 2012, the Company divested of a business within the Fluid Handling
segment (Houston Service Center) and a business within the Controls segment
(Azonix Corporation). The associated gains were included in the “Gain from
Sale of Discontinued Operations attributable to common shareholders, net of
tax" section on the accompanying Income Statement Data. In September 2012, the
Company recorded a favorable price adjustment associated with the Azonix
Corporation divestiture.

(f) Amounts represent the after-tax profit from the Houston Service Center and
Azonix Corporation businesses divested in June 2012.

                                                             
                         Three Months Ended          Twelve Months Ended
                         December 31,                December 31,
                          2012        2011        2012        2011    
                                                                   
CASH FLOW ITEMS
Cash Provided from
Operating Activities     $ 173,409     $ 104,862     $ 312,713     $ 229,089
before Asbestos -
Related Payments
Asbestos Related
Payments, Net of          (17,906 )    (20,044 )    (77,957 )    (79,277 )
Insurance Recoveries
Cash Provided from         155,503       84,818        234,756       149,812
Operating Activities
Less: Capital             (9,364  )    (7,034  )    (29,308 )    (34,737 )
Expenditures
Free Cash Flow           $ 146,139    $ 77,784     $ 205,448    $ 115,075 


Certain non-GAAP measures have been provided to facilitate comparison with the
prior year.


The Company reports its financial results in accordance with U.S. generally
accepted accounting principles (GAAP). However, management believes that
non-GAAP financial measures which exclude certain non-recurring items present
additional useful comparisons between current results and results in prior
operating periods, providing investors with a clearer view of the underlying
trends of the business. Management also uses these non-GAAP financial measures
in making financial, operating, planning and compensation decisions and in
evaluating the Company's performance.

In addition, Free Cash Flow provides supplemental information to assist
management and investors in analyzing the Company’s ability to generate
liquidity from its operating activities. The measure of Free Cash Flow does
not take into consideration certain other non-discretionary cash requirements
such as, for example, mandatory principal payments on the Company's long-term
debt. Non-GAAP financial measures, which may be inconsistent with similarly
captioned measures presented by other companies, should be viewed in addition
to, and not as a substitute for, the Company’s reported results prepared in
accordance with GAAP.

Non-GAAP financial measures, which may be inconsistent with similarly
captioned measures presented by other companies, should be viewed in the
context of the definitions of the elements of such measures we provide and in
addition to, and not as a substitute for, the Company’s reported results
prepared in accordance with GAAP.

Contact:

Crane Co.
Richard E. Koch, 203-363-7352
Director, Investor Relations
and Corporate Communications
www.craneco.com
 
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