Crane Holdings, Co. Stories 2022 Outcomes

Fourth Quarter 2022 Highlights

• Continued progress in the direction of beforehand introduced separation; Stay on-track to finish separation in early April 2023.

• Fourth quarter GAAP earnings per diluted share (EPS) elevated 53% to $1.87 per share in comparison with 2021; Fourth quarter adjusted EPS elevated 63% to a file $2.13 per share in comparison with 2021.

• Fourth quarter GAAP working revenue margin was 15.7%, a rise of 440 foundation factors from final yr; adjusted working margin was a file 18.6% in comparison with 12.0% final yr.

• Fourth quarter core gross sales elevated 11% in comparison with final yr, core orders elevated 15%, and core backlog elevated 28%.

• Crane points steering for 2023 for post-separation Crane Firm and Crane NXT; steering particulars are included within the presentation that accompanies this earnings launch that’s accessible on our web site at www.craneco.com beneath Traders, Occasions & Shows.

STAMFORD, Conn., January 23, 2023–(BUSINESS WIRE)–Crane Holdings, Co. (NYSE: CR), a diversified producer of extremely engineered industrial merchandise, reported fourth quarter and full yr 2022 monetary outcomes.

Max Mitchell, Crane Holdings, Co. President and Chief Govt Officer acknowledged: “One other excellent quarter of execution by our international staff, together with continued progress towards our deliberate separation. Preparations for the separation are progressing easily, and we stay on-track for completion in April 2023. Each organizations proceed to construct out robust groups that can place each Crane Firm and Crane NXT to ship constant, differentiated execution. Additional, we proceed to consider that the transaction will allow every post-separation firm to optimize its investments and capital allocation insurance policies to additional speed up progress and unlock shareholder worth.”

Mr. Mitchell continued: “Operationally, we had a really robust fourth quarter, with file quarterly adjusted EPS of $2.13 and a file adjusted working margin of 18.6% pushed, partly, by 11% core gross sales progress with power throughout all three of our international strategic progress platforms. Main indicators additionally stay robust, with core orders up 15% and core backlog up 28% in comparison with final yr. Nonetheless, regardless of power of these metrics, primarily based on broader macroeconomic developments and normal uncertainty, we’re planning for considerably constrained and blended exercise in 2023 paired with gradual provide chain aid all year long. That stated, we’re assured that we’re positioned to drive above-market progress in any potential surroundings, and we’re ready to reply rapidly to capitalize on any demand above our present outlook.”

Preliminary 2023 Outlook and Steerage

Particulars of our preliminary 2023 outlook and steering for each Crane Firm and Crane NXT are included within the presentation that accompanies this earnings launch accessible on our web site at www.craneco.com beneath Traders, Occasions & Shows.

Full 12 months 2022 Outcomes

Full yr 2022 GAAP EPS of $7.18 in comparison with $7.36 within the prior yr. Full yr 2022 adjusted EPS of $7.88 elevated 15% in comparison with $6.88 within the prior yr. (Please see the hooked up Non-GAAP Monetary Measures tables for an in depth reconciliation of reported outcomes to adjusted measures.)

Full yr 2022 gross sales had been $3,375 million, a lower of $33 million, or 1%, in comparison with full yr 2021. Core gross sales progress of $220 million, or 6%, was greater than offset by the $139 million, or 4%, influence from the Might divestiture of Crane Provide, and a $114 million, or 3%, influence from unfavorable international alternate.

Full yr order progress of 5% was pushed by 13% core order progress, partially offset by a 4% divestiture influence and a 4% influence from unfavorable international alternate. Full yr backlog progress of 23% was pushed by 28% core backlog progress, partially offset by a 4% influence from unfavorable international alternate and a 2% divestiture influence.

Full yr GAAP working revenue margin declined to 10.9%, from 15.5% final yr, pushed primarily by a loss on the August divestiture of asbestos-related property and liabilities and associated objects. Full yr 2022 adjusted working revenue margin was 17.7%, in comparison with 15.5% final yr, pushed primarily by pricing actions and productiveness that greater than offset inflation and the influence of decrease volumes. (Please see the hooked up Non-GAAP Monetary Measures tables for an in depth reconciliation of reported outcomes to adjusted measures.)

Abstract of Full 12 months 2022 Outcomes

Full 12 months 2022 Money Movement and Different Monetary Metrics

Money used for working actions in 2022 was $152 million, in comparison with money offered by working actions of $499 million in 2021. Money used for working actions in 2022 included outflows of $605 million associated to the August divestiture of asbestos-related property and liabilities and different portfolio actions. Capital expenditures in 2022 had been $58 million, in comparison with $54 million final yr. Free money movement (money offered by working actions much less capital spending) in 2022 was detrimental $210 million, in comparison with constructive $445 million final yr. Adjusted free money movement (free money movement much less the money outflows related to the divestiture of asbestos-related property and liabilities and different portfolio actions) in 2022 was $395 million, in comparison with $445 million final yr. (Please see the hooked up Non-GAAP Monetary Measures tables for an in depth reconciliation of reported outcomes to adjusted measures.)

The Firm held money of $658 million as of December 31, 2022, in comparison with $479 million as of December 31, 2021. Whole debt was $1,243 million as of December 31, 2022, in comparison with $842 million as of December 31, 2021, with the rise associated to the August asbestos divestiture transaction.

Fourth Quarter 2022 Outcomes

Fourth quarter 2022 GAAP EPS of $1.87 in comparison with EPS of $1.22 within the fourth quarter of 2021. Fourth quarter 2022 adjusted EPS was $2.13, in comparison with $1.31 within the fourth quarter of 2021. (Please see the hooked up Non-GAAP Monetary Measures tables for an in depth reconciliation of reported outcomes to adjusted measures.)

Fourth quarter 2022 gross sales had been $824 million, a slight decline in comparison with $825 million within the fourth quarter of 2021. Core gross sales progress of $90 million, or 11%, was greater than offset by a $58 million, or 7%, divestiture influence, and a $33 million, or 4%, influence from unfavorable international alternate.

Core year-over-year order progress of 15% within the fourth quarter was partially offset by a 7% divestiture influence and a 5% influence from unfavorable international alternate. Whole year-over-year backlog progress of 23% was pushed by 28% core backlog progress, partially offset by a 4% influence from unfavorable international alternate and a 2% divestiture influence.

Fourth quarter GAAP working revenue margin was 15.7%, in comparison with 11.3% final yr, with the rise pushed primarily by pricing actions, and to a lesser extent productiveness and better volumes. Fourth quarter 2022 adjusted working revenue margin was 18.6%, in comparison with 12.0% final yr. (Please see the hooked up Non-GAAP Monetary Measures tables for an in depth reconciliation of reported outcomes to adjusted measures.)

Abstract of Fourth Quarter 2022 Outcomes

Fourth Quarter 2022 Phase Outcomes

All comparisons detailed on this part seek advice from working outcomes for the fourth quarter 2022 versus the fourth quarter 2021.

Aerospace & Electronics

Gross sales of $181 million elevated $23 million, or 15%, in comparison with the prior yr. GAAP working revenue margin of 19.8% in comparison with 13.1% final yr, pushed primarily by pricing actions, larger volumes, and productiveness. Adjusted working revenue margin of 20.6% in comparison with 13.1% final yr. Aerospace & Electronics’ core orders elevated 45% within the quarter in comparison with the prior yr, and its order backlog was $613 million as of December 31, 2022 in comparison with $592 million as of September 30, 2022, and $460 million as of December 31, 2021.

Course of Movement Applied sciences

Gross sales of $252 million decreased $47 million, or 16%, pushed by a $58 million, or 19%, influence from the divestiture of Crane Provide and a $14 million, or 5%, influence from unfavorable international alternate, partially offset by $25 million, or 8%, of core progress. Working revenue margin elevated to 14.8%, in comparison with 13.9% final yr, primarily reflecting pricing actions and productiveness, partially offset by unfavorable combine and decrease volumes. Adjusted working margin was 16.1%, in comparison with 14.3% final yr. Course of Movement Applied sciences’ orders decreased 17% within the quarter in comparison with the prior yr, with 9% core order progress greater than offset by a 21% divestiture influence and a 5% influence from unfavorable international alternate. Order backlog elevated 3% within the quarter in comparison with the prior yr, with 14% core backlog progress partially offset by an 8% divestiture influence and a 4% influence from unfavorable international alternate. Course of Movement Applied sciences order backlog was $369 million as of December 31, 2022, $354 million as of September 30, 2022, and $358 million as of December 31, 2021.

Cost & Merchandising Applied sciences

Gross sales of $338 million elevated $25 million, or 8%, in comparison with the fourth quarter of 2021, pushed by a $44 million, or 14%, enhance in core gross sales, partially offset by a $19 million, or 6%, influence from unfavorable international alternate.

Working revenue margin elevated to 24.1%, from 19.1% final yr, primarily reflecting pricing actions, larger volumes and productiveness. Adjusted working revenue margin of 25.9% in comparison with 18.5% final yr. Cost & Merchandising Applied sciences’ orders elevated 4% within the quarter in comparison with the prior yr, with 12% core order progress partially offset by an 8% influence from unfavorable international alternate. Order backlog elevated 29% in comparison with the prior yr, with 36% core backlog progress, partially offset by a 7% influence from unfavorable international alternate. Cost & Merchandising Applied sciences’ order backlog was $566 million as of December 31, 2022, $500 million as of September 30, 2022, and $438 million as of December 31, 2021.

Newly appointed Crane NXT President and CEO Aaron Saak commented: “I’m extremely excited in regards to the alternative to share our path for worth creation with traders at our upcoming Investor Day occasion. Together with my new staff, I’m honored to be the steward of those unbelievable companies as we leverage international secular progress developments whereas pursuing new vectors for accelerated progress.”

Engineered Supplies

Gross sales of $52 million decreased $2 million, or 4%, in comparison with the prior yr. Working revenue margin decreased to 11.0%, from 11.3%. Adjusted working revenue margin elevated to 11.8%, from 11.3%.

Upcoming Investor Convention for Crane Firm and Crane NXT
Crane Firm and Crane NXT will every host an investor convention on March 9, 2023 in New York Metropolis. At each occasions, key executives will present an in depth evaluate of every firm’s enterprise, technique, capital construction, and capital deployment insurance policies, in addition to an replace on their 2023 enterprise outlook. For added particulars and to RSVP, please electronic mail: [email protected]

Convention Name
Crane Holdings, Co. has scheduled a convention name to debate the fourth quarter monetary outcomes on Tuesday, January 24, 2023 at 10:00 A.M. (Jap). All events might take heed to a reside webcast of the decision at http://www.craneco.com. An archived webcast will even be accessible to replay this convention name instantly from the Firm’s web site beneath Traders, Occasions & Shows. Slides that accompany the convention name can be accessible on the Firm’s web site.

About Crane Holdings, Co.

Crane Holdings, Co. is a diversified producer of extremely engineered industrial merchandise. Based in 1855, Crane offers merchandise and options to prospects throughout finish markets together with aerospace, protection, chemical and petrochemical, water and wastewater, fee automation, and banknote safety and manufacturing, in addition to for a variety of normal industrial and shopper purposes. The Firm has 4 enterprise segments: Aerospace & Electronics, Course of Movement Applied sciences, Cost & Merchandising Applied sciences, and Engineered Supplies. Crane has roughly 11,000 staff within the Americas, Europe, the Center East, Asia and Australia. Crane is traded on the New York Inventory Change (NYSE:CR). For extra info, go to www.craneco.com.

Ahead-Wanting Statements Disclaimer

This press launch comprises forward-looking statements throughout the that means of the federal securities legal guidelines. Ahead-looking statements embody all statements that aren’t historic statements of reality and people relating to our intent, perception, or expectations, together with, however not restricted to: statements relating to Crane’s and the final word spin-off firm’s (“SpinCo”) portfolio composition and their relationship following the enterprise separation; the anticipated timing, construction, advantages, and tax therapy of the separation transaction; advantages and synergies of the separation transaction; strategic and aggressive benefits of every of Crane and SpinCo; future financing plans and alternatives; and enterprise methods, prospects and projected working and monetary outcomes. As well as, there may be additionally no assurance that the separation transaction can be accomplished, that Crane’s Board of Administrators will proceed to pursue the separation transaction (even when there are not any impediments to completion), that Crane will have the ability to separate its companies or that the separation transaction would be the most helpful different thought-about. We warning traders to not place undue reliance on any such forward-looking statements.

Phrases similar to “anticipate(s),” “count on(s),” “intend(s),” “plan(s),” “consider(s),” “might,” “will,” “would,” “may,” “ought to,” “search(s),” and comparable expressions, or the detrimental of those phrases, are meant to establish such forward-looking statements. These statements are primarily based on administration’s present expectations and beliefs and are topic to plenty of dangers and uncertainties that would result in precise outcomes differing materially from these projected, forecasted or anticipated. Though we consider that the assumptions underlying the forward-looking statements are affordable, we can provide no assurance that our expectations can be attained.

Dangers and uncertainties that would trigger precise outcomes to vary materially from our expectations embody, however should not restricted to: modifications in international financial circumstances (together with inflationary pressures) and geopolitical dangers, together with macroeconomic fluctuations which will hurt our enterprise, outcomes of operation and inventory value; the persevering with results from the coronavirus pandemic on our enterprise and the worldwide and U.S. economies usually; info methods and know-how networks failures and breaches in knowledge safety, theft of personally identifiable and different info, non-compliance with our contractual or different authorized obligations relating to such info; our skill to supply parts and uncooked supplies from suppliers, together with disruptions and delays in our provide chain; demand for our merchandise, which is variable and topic to elements past our management; governmental laws and failure to adjust to these laws; fluctuations within the costs of our parts and uncooked supplies; lack of personnel or with the ability to rent and retain extra personnel wanted to maintain and develop our enterprise as deliberate; dangers from environmental liabilities, prices, litigation and violations that would adversely have an effect on our monetary situation, outcomes of operations, money flows and repute; dangers related to conducting a considerable portion of our enterprise outdoors the U.S.; being unable to establish or full acquisitions, or to efficiently combine the companies we purchase, or full tendencies; adversarial impacts from intangible asset impairment expenses; potential product legal responsibility or guarantee claims; being unable to efficiently develop and introduce new merchandise, which might restrict our skill to develop and keep our aggressive place and adversely have an effect on our monetary situation, outcomes of operations and money movement; vital competitors in our markets; extra tax bills or exposures that would have an effect on our monetary situation, outcomes of operations and money flows; insufficient or ineffective inside controls; particular dangers referring to our reportable segments, together with Aerospace & Electronics, Course of Movement Applied sciences, Cost & Merchandising Applied sciences and Engineered Supplies; the flexibility and willingness of Crane and SpinCo to satisfy and/or carry out their obligations beneath any contractual preparations which might be entered into among the many events in reference to the separation transaction and any of their obligations to indemnify, defend and maintain the opposite occasion innocent from and towards varied claims, litigation and liabilities; and the flexibility to realize some or all the advantages that we count on to realize from the separation transaction.

Readers ought to fastidiously evaluate Crane’s monetary statements and the notes thereto, in addition to the part entitled “Threat Components” in Merchandise 1A of Crane’s Annual Report on Kind 10-Ok for the yr ended December 31, 2021 and the opposite paperwork Crane and its subsidiaries file every now and then with the SEC. Readers also needs to fastidiously evaluate the “Threat Components” part of the registration assertion referring to the enterprise separation which has been filed by SpinCo with the SEC. These filings establish and handle different necessary dangers and uncertainties that would trigger precise occasions and outcomes to differ materially from these contained within the forward-looking statements.

These forward-looking statements replicate administration’s judgment as of this date, and Crane assumes no (and disclaims any) obligation to revise or replace them to replicate future occasions or circumstances.

We make no representations or warranties as to the accuracy of any projections, statements or info contained on this doc. It’s understood and agreed that any such projections, targets, statements and knowledge are to not be considered as details and are topic to vital enterprise, monetary, financial, working, aggressive and different dangers, uncertainties and contingencies a lot of that are past our management, that no assurance might be provided that any explicit monetary projections ranges, or targets can be realized, that precise outcomes might differ from projected outcomes and that such variations could also be materials. Whereas all monetary projections, estimates and targets are essentially speculative, we consider that the preparation of potential monetary info entails more and more larger ranges of uncertainty the additional out the projection, estimate or goal extends from the date of preparation. The assumptions and estimates underlying the projected, anticipated or goal outcomes are inherently unsure and are topic to all kinds of great enterprise, financial and aggressive dangers and uncertainties that would trigger precise outcomes to differ materially from these contained within the monetary projections, estimates and targets. The inclusion of monetary projections, estimates and targets on this press launch shouldn’t be considered a sign that we or our representatives, thought-about or think about the monetary projections, estimates and targets to be a dependable prediction of future occasions.

This press launch doesn’t represent a proposal to promote, or a solicitation of a proposal to purchase, securities on the market.

(Monetary Tables Observe)