On October 23, 2023, Crane Co (CR, Financial) released its financial results for the third quarter of 2023, reporting strong performance and raising its full-year outlook. The company's earnings from continuing operations per diluted share (EPS) stood at $0.96, with an adjusted EPS of $1.03. Crane Co (CR) also reported a core year-over-year sales growth of 9% and a significant growth in operating profit from continuing operations of 165%.
Financial Highlights
The company's net sales for Q3 2023 were $530 million, a 10% increase from $480 million in Q3 2022. Operating profit from continuing operations was $76 million, a significant turnaround from the operating loss of $117 million last year. The adjusted operating profit from continuing operations stood at $81 million, marking a 42% increase from the prior year.
Crane Co (CR, Financial) also announced the acquisition of Baum lined piping GmbH for approximately $91 million on a cash-free and debt-free basis. This strategic acquisition is expected to bolster the company's Chemical business within the Process Flow Technologies segment.
Segment Performance
The Aerospace & Electronics segment reported sales of $207 million, a 24% increase compared to the prior year, with an operating profit margin of 19.4%. The Process Flow Technologies segment reported sales of $267 million, a 7% increase, with an operating profit margin of 19.2%. The Engineered Materials segment, however, reported a decrease in sales by 11% to $56 million, but saw an improvement in operating profit margin to 13.7%.
Outlook and Dividend Announcement
Crane Co (CR, Financial) has raised and narrowed its adjusted EPS guidance for 2023 to a range of $4.05 to $4.20, up from the prior range of $3.80 to $4.10. The company also declared a fourth quarter 2023 dividend of $0.18 per share.
Despite some signs of expected slowing order activity in a few of its industrial and process flow markets, the company remains optimistic about its prospects in the coming quarters and years.
