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Share Name | Share Symbol | Market | Type |
---|---|---|---|
Crane Company | NYSE:CR | NYSE | Common Stock |
Price Change | % Change | Share Price | High Price | Low Price | Open Price | Shares Traded | Last Trade | |
---|---|---|---|---|---|---|---|---|
0.00 | 0.00% | 144.61 | 60 | 14:00:19 |
x
|
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
|
o
|
TRANSITION REPORT PURSUANT TO SECTION 13 or 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
|
|
|
|
Delaware
|
|
13-1952290
|
(State or other jurisdiction of
incorporation or organization)
|
|
(I.R.S. Employer
Identification No.)
|
100 First Stamford Place, Stamford, CT
|
|
06902
|
(Address of principal executive offices)
|
|
(Zip Code)
|
|
|
|
|
|
|
|
|
|
Page
|
|
||||
Part I - Financial Information
|
||||
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Part II - Other Information
|
|
|
|
|
|||
|
|
|||
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|
|||
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|
|||
|
|
|||
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|
|||
|
|
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|
Three Months Ended
|
|
Nine Months Ended
|
||||||||||||
|
September 30,
|
|
September 30,
|
||||||||||||
|
2018
|
|
2017
|
|
2018
|
|
2017
|
||||||||
Net sales
|
$
|
855.8
|
|
|
$
|
695.9
|
|
|
$
|
2,505.8
|
|
|
$
|
2,071.8
|
|
Operating costs and expenses:
|
|
|
|
|
|
|
|
||||||||
Cost of sales
|
544.8
|
|
|
441.5
|
|
|
1,611.6
|
|
|
1,315.3
|
|
||||
Selling, general and administrative
|
179.8
|
|
|
151.8
|
|
|
546.3
|
|
|
452.4
|
|
||||
Acquisition-related and integration charges
|
2.1
|
|
|
0.5
|
|
|
11.3
|
|
|
3.1
|
|
||||
Restructuring charges
|
5.2
|
|
|
—
|
|
|
5.4
|
|
|
—
|
|
||||
Operating profit
|
123.9
|
|
|
102.1
|
|
|
331.2
|
|
|
301.0
|
|
||||
Other income (expense):
|
|
|
|
|
|
|
|
||||||||
Interest income
|
0.5
|
|
|
0.7
|
|
|
1.7
|
|
|
1.8
|
|
||||
Interest expense
|
(12.3
|
)
|
|
(9.3
|
)
|
|
(39.8
|
)
|
|
(27.3
|
)
|
||||
Miscellaneous income
|
5.7
|
|
|
3.5
|
|
|
13.9
|
|
|
9.2
|
|
||||
|
(6.1
|
)
|
|
(5.1
|
)
|
|
(24.2
|
)
|
|
(16.3
|
)
|
||||
Income before income taxes
|
117.8
|
|
|
97.0
|
|
|
307.0
|
|
|
284.7
|
|
||||
Provision for income taxes
|
20.7
|
|
|
28.5
|
|
|
60.6
|
|
|
83.6
|
|
||||
Net income before allocation to noncontrolling interests
|
97.1
|
|
|
68.5
|
|
|
246.4
|
|
|
201.1
|
|
||||
Less: Noncontrolling interest in subsidiaries’ earnings
|
0.1
|
|
|
0.3
|
|
|
—
|
|
|
0.6
|
|
||||
Net income attributable to common shareholders
|
$
|
97.0
|
|
|
$
|
68.2
|
|
|
$
|
246.4
|
|
|
$
|
200.5
|
|
Earnings per share:
|
|
|
|
|
|
|
|
||||||||
Basic
|
$
|
1.62
|
|
|
$
|
1.15
|
|
|
$
|
4.13
|
|
|
$
|
3.38
|
|
Diluted
|
$
|
1.59
|
|
|
$
|
1.13
|
|
|
$
|
4.04
|
|
|
$
|
3.32
|
|
Average shares outstanding:
|
|
|
|
|
|
|
|
||||||||
Basic
|
59.7
|
|
|
59.5
|
|
|
59.7
|
|
|
59.4
|
|
||||
Diluted
|
61.1
|
|
|
60.4
|
|
|
61.1
|
|
|
60.4
|
|
||||
|
|
|
|
|
|
|
|
||||||||
Dividends per share
|
$
|
0.35
|
|
|
$
|
0.33
|
|
|
$
|
1.05
|
|
|
$
|
0.99
|
|
|
Three Months Ended
|
|
Nine Months Ended
|
||||||||||||
|
September 30,
|
|
September 30,
|
||||||||||||
|
2018
|
|
2017
|
|
2018
|
|
2017
|
||||||||
Net income before allocation to noncontrolling interests
|
$
|
97.1
|
|
|
$
|
68.5
|
|
|
$
|
246.4
|
|
|
$
|
201.1
|
|
Other comprehensive (loss) income, net of tax
|
|
|
|
|
|
|
|
||||||||
Currency translation adjustment
|
(8.2
|
)
|
|
24.6
|
|
|
(29.7
|
)
|
|
83.2
|
|
||||
Changes in pension and postretirement plan assets and benefit obligation, net of tax
|
2.7
|
|
|
2.3
|
|
|
16.8
|
|
|
6.9
|
|
||||
Other comprehensive (loss) income, net of tax
|
(5.5
|
)
|
|
26.9
|
|
|
(12.9
|
)
|
|
90.1
|
|
||||
Comprehensive income before allocation to noncontrolling interests
|
91.6
|
|
|
95.4
|
|
|
233.5
|
|
|
291.2
|
|
||||
Less: Noncontrolling interests in comprehensive income
|
—
|
|
|
(1.4
|
)
|
|
(0.2
|
)
|
|
(0.7
|
)
|
||||
Comprehensive income attributable to common shareholders
|
$
|
91.6
|
|
|
$
|
96.8
|
|
|
$
|
233.7
|
|
|
$
|
291.9
|
|
|
September 30,
2018 |
|
December 31,
2017 |
||||
Assets
|
|
|
|
||||
Current assets:
|
|
|
|
||||
Cash and cash equivalents
|
$
|
323.6
|
|
|
$
|
706.2
|
|
Accounts receivable, net
|
565.0
|
|
|
418.4
|
|
||
Current insurance receivable - asbestos
|
25.0
|
|
|
25.0
|
|
||
Inventories, net:
|
|
|
|
||||
Finished goods
|
137.8
|
|
|
101.1
|
|
||
Finished parts and subassemblies
|
49.3
|
|
|
46.1
|
|
||
Work in process
|
61.3
|
|
|
51.6
|
|
||
Raw materials
|
163.6
|
|
|
150.5
|
|
||
Inventories, net
|
412.0
|
|
|
349.3
|
|
||
Other current assets
|
77.6
|
|
|
19.6
|
|
||
Total current assets
|
1,403.2
|
|
|
1,518.5
|
|
||
Property, plant and equipment:
|
|
|
|
||||
Cost
|
1,169.7
|
|
|
839.4
|
|
||
Less: accumulated depreciation
|
575.2
|
|
|
557.0
|
|
||
Property, plant and equipment, net
|
594.5
|
|
|
282.4
|
|
||
Long-term insurance receivable - asbestos
|
72.8
|
|
|
90.1
|
|
||
Long-term deferred tax assets
|
16.6
|
|
|
104.2
|
|
||
Other assets
|
123.8
|
|
|
114.6
|
|
||
Intangible assets, net
|
492.1
|
|
|
276.8
|
|
||
Goodwill
|
1,407.0
|
|
|
1,206.9
|
|
||
Total assets
|
$
|
4,110.0
|
|
|
$
|
3,593.5
|
|
|
September 30,
2018 |
|
December 31,
2017 |
||||
Liabilities and equity
|
|
|
|
||||
Current liabilities:
|
|
|
|
||||
Short-term borrowings and current maturities of long-term debt
|
$
|
106.3
|
|
|
$
|
249.4
|
|
Accounts payable
|
268.4
|
|
|
247.4
|
|
||
Current asbestos liability
|
85.0
|
|
|
85.0
|
|
||
Accrued liabilities
|
365.0
|
|
|
252.1
|
|
||
U.S. and foreign taxes on income
|
9.9
|
|
|
3.6
|
|
||
Total current liabilities
|
834.6
|
|
|
837.5
|
|
||
Long-term debt
|
937.5
|
|
|
494.1
|
|
||
Accrued pension and postretirement benefits
|
209.4
|
|
|
240.5
|
|
||
Long-term deferred tax liability
|
42.8
|
|
|
44.9
|
|
||
Long-term asbestos liability
|
456.5
|
|
|
520.3
|
|
||
Other liabilities
|
99.7
|
|
|
107.7
|
|
||
Total liabilities
|
2,580.5
|
|
|
2,245.0
|
|
||
Commitments and contingencies (Note 12)
|
|
|
|
||||
Equity:
|
|
|
|
||||
Preferred shares, par value $0.01; 5,000,000 shares authorized
|
—
|
|
|
—
|
|
||
Common shares, par value $1.00; 200,000,000 shares authorized, 72,426,139 shares issued
|
72.4
|
|
|
72.4
|
|
||
Capital surplus
|
298.1
|
|
|
291.7
|
|
||
Retained earnings
|
2,003.7
|
|
|
1,813.3
|
|
||
Accumulated other comprehensive loss
|
(393.0
|
)
|
|
(380.1
|
)
|
||
Treasury stock
|
(454.8
|
)
|
|
(452.1
|
)
|
||
Total shareholders’ equity
|
1,526.4
|
|
|
1,345.2
|
|
||
Noncontrolling interests
|
3.1
|
|
|
3.3
|
|
||
Total equity
|
1,529.5
|
|
|
1,348.5
|
|
||
Total liabilities and equity
|
$
|
4,110.0
|
|
|
$
|
3,593.5
|
|
Share data:
|
|
|
|
||||
Common shares issued
|
72,426,139
|
|
|
72,426,139
|
|
||
Less: Common shares held in treasury
|
(12,693,088
|
)
|
|
(13,014,503
|
)
|
||
Common shares outstanding
|
59,733,051
|
|
|
59,411,636
|
|
|
Nine Months Ended
|
||||||
|
September 30,
|
||||||
|
2018
|
|
2017
|
||||
Operating activities:
|
|
|
|
||||
Net income attributable to common shareholders
|
$
|
246.4
|
|
|
$
|
200.5
|
|
Noncontrolling interests in subsidiaries’ earnings
|
—
|
|
|
0.6
|
|
||
Net income before allocation to noncontrolling interests
|
246.4
|
|
|
201.1
|
|
||
Depreciation and amortization
|
84.1
|
|
|
54.0
|
|
||
Stock-based compensation expense
|
16.1
|
|
|
16.5
|
|
||
Defined benefit plans and postretirement credit
|
(11.6
|
)
|
|
(6.3
|
)
|
||
Deferred income taxes
|
24.5
|
|
|
16.0
|
|
||
Cash used for operating working capital
|
(41.3
|
)
|
|
(38.0
|
)
|
||
Defined benefit plans and postretirement contributions
|
(55.8
|
)
|
|
(9.9
|
)
|
||
Environmental payments, net of reimbursements
|
(5.4
|
)
|
|
(4.4
|
)
|
||
Asbestos related payments, net of insurance recoveries
|
(46.4
|
)
|
|
(46.8
|
)
|
||
Other
|
11.8
|
|
|
(8.0
|
)
|
||
Total provided by operating activities
|
222.4
|
|
|
174.2
|
|
||
Investing activities:
|
|
|
|
||||
Capital expenditures
|
(75.6
|
)
|
|
(34.3
|
)
|
||
Proceeds from disposition of capital assets
|
1.3
|
|
|
—
|
|
||
Payment for acquisition - net of cash acquired
|
(648.0
|
)
|
|
(54.8
|
)
|
||
Total used for investing activities
|
(722.3
|
)
|
|
(89.1
|
)
|
||
Financing activities:
|
|
|
|
||||
Dividends paid
|
(62.7
|
)
|
|
(58.8
|
)
|
||
Reacquisition of shares on open market
|
(25.0
|
)
|
|
(25.0
|
)
|
||
Stock options exercised - net of shares reacquired
|
12.5
|
|
|
20.7
|
|
||
Debt issuance costs
|
(5.4
|
)
|
|
—
|
|
||
Repayment of long-term debt
|
(450.8
|
)
|
|
—
|
|
||
Repayment of short-term debt
|
(100.0
|
)
|
|
—
|
|
||
Proceeds from issuance of long-term debt
|
554.1
|
|
|
—
|
|
||
Proceeds from issuance of short-term debt
|
100.0
|
|
|
—
|
|
||
Proceeds from issuance of commercial paper, net
|
106.3
|
|
|
—
|
|
||
Total provided by (used for) financing activities
|
129.0
|
|
|
(63.1
|
)
|
||
Effect of exchange rates on cash and cash equivalents
|
(11.7
|
)
|
|
40.5
|
|
||
(Decrease) increase in cash and cash equivalents
|
(382.6
|
)
|
|
62.5
|
|
||
Cash and cash equivalents at beginning of period
|
706.2
|
|
|
509.7
|
|
||
Cash and cash equivalents at end of period
|
$
|
323.6
|
|
|
$
|
572.2
|
|
Detail of cash used for operating working capital:
|
|
|
|
||||
Accounts receivable
|
$
|
(39.1
|
)
|
|
$
|
(22.0
|
)
|
Inventories
|
(31.2
|
)
|
|
(17.2
|
)
|
||
Other current assets
|
(12.4
|
)
|
|
1.2
|
|
||
Accounts payable
|
(29.2
|
)
|
|
(22.7
|
)
|
||
Accrued liabilities
|
70.8
|
|
|
10.9
|
|
||
U.S. and foreign taxes on income
|
(0.2
|
)
|
|
11.8
|
|
||
Total
|
$
|
(41.3
|
)
|
|
$
|
(38.0
|
)
|
Supplemental disclosure of cash flow information:
|
|
|
|
||||
Interest paid
|
$
|
32.7
|
|
|
$
|
18.7
|
|
Income taxes paid
|
$
|
36.3
|
|
|
$
|
55.8
|
|
Intangible Assets
(dollars in millions)
|
Intangible Fair Value
|
|
Weighted Average Life
|
||
Trademarks/trade names
|
$
|
42.0
|
|
|
indefinite
|
Customer relationships
|
134.3
|
|
|
23.3
|
|
Product technology
|
74.0
|
|
|
8.4
|
|
Backlog
|
0.5
|
|
|
1.0
|
|
Total acquired intangible assets
|
$
|
250.8
|
|
|
|
|
Three Months Ended
|
|
Nine Months Ended
|
||||
(in millions, except per share data)
|
September 30, 2017
|
||||||
Net sales
|
$
|
839.2
|
|
|
$
|
2,439.7
|
|
Net income attributable to common shareholders
|
$
|
77.5
|
|
|
$
|
203.8
|
|
Basic earnings per share
|
$
|
1.30
|
|
|
$
|
3.43
|
|
Diluted earnings per share
|
$
|
1.28
|
|
|
$
|
3.37
|
|
|
Three Months Ended
|
|
Nine Months Ended
|
||||||||||||
|
September 30,
|
|
September 30,
|
||||||||||||
(in millions, except per share data)
|
2018
|
|
2017
|
|
2018
|
|
2017
|
||||||||
Net income attributable to common shareholders
|
$
|
97.0
|
|
|
$
|
68.2
|
|
|
$
|
246.4
|
|
|
$
|
200.5
|
|
|
|
|
|
|
|
|
|
||||||||
Average basic shares outstanding
|
59.7
|
|
|
59.5
|
|
|
59.7
|
|
|
59.4
|
|
||||
Effect of dilutive stock options
|
1.4
|
|
|
0.9
|
|
|
1.4
|
|
|
1.0
|
|
||||
Average diluted shares outstanding
|
61.1
|
|
|
60.4
|
|
|
61.1
|
|
|
60.4
|
|
||||
|
|
|
|
|
|
|
|
||||||||
Earnings per basic share
|
$
|
1.62
|
|
|
$
|
1.15
|
|
|
$
|
4.13
|
|
|
$
|
3.38
|
|
Earnings per diluted share
|
$
|
1.59
|
|
|
$
|
1.13
|
|
|
$
|
4.04
|
|
|
$
|
3.32
|
|
|
Three Months Ended
|
|
Nine Months Ended
|
||||||||||||
|
September 30,
|
|
September 30,
|
||||||||||||
(in millions)
|
2018
|
|
2017
|
|
2018
|
|
2017
|
||||||||
Net sales
|
|
|
|
|
|
|
|
||||||||
Fluid Handling
|
$
|
278.7
|
|
|
$
|
266.9
|
|
|
$
|
822.1
|
|
|
$
|
770.3
|
|
Payment & Merchandising Technologies
|
327.4
|
|
|
188.6
|
|
|
944.2
|
|
|
582.3
|
|
||||
Aerospace & Electronics
|
189.5
|
|
|
172.0
|
|
|
547.0
|
|
|
506.5
|
|
||||
Engineered Materials
|
60.2
|
|
|
68.4
|
|
|
192.5
|
|
|
212.7
|
|
||||
Total
|
$
|
855.8
|
|
|
$
|
695.9
|
|
|
$
|
2,505.8
|
|
|
$
|
2,071.8
|
|
Operating profit (loss)
|
|
|
|
|
|
|
|
||||||||
Fluid Handling
|
$
|
30.4
|
|
|
$
|
30.7
|
|
|
$
|
88.0
|
|
|
$
|
84.1
|
|
Payment & Merchandising Technologies
|
57.3
|
|
|
40.7
|
|
|
139.8
|
|
|
121.0
|
|
||||
Aerospace & Electronics
|
42.5
|
|
|
35.5
|
|
|
120.0
|
|
|
104.9
|
|
||||
Engineered Materials
|
8.7
|
|
|
12.2
|
|
|
32.4
|
|
|
39.4
|
|
||||
Corporate
|
(15.0
|
)
|
|
(17.0
|
)
|
|
(49.0
|
)
|
|
(48.4
|
)
|
||||
Total
|
123.9
|
|
|
102.1
|
|
|
331.2
|
|
|
301.0
|
|
||||
Interest income
|
0.5
|
|
|
0.7
|
|
|
1.7
|
|
|
1.8
|
|
||||
Interest expense
|
(12.3
|
)
|
|
(9.3
|
)
|
|
(39.8
|
)
|
|
(27.3
|
)
|
||||
Miscellaneous income
|
5.7
|
|
|
3.5
|
|
|
13.9
|
|
|
9.2
|
|
||||
Income before income taxes
|
$
|
117.8
|
|
|
$
|
97.0
|
|
|
$
|
307.0
|
|
|
$
|
284.7
|
|
(in millions)
|
September 30,
2018
|
|
December 31,
2017
|
||||
Assets
|
|
|
|
||||
Fluid Handling
|
$
|
888.6
|
|
|
$
|
941.6
|
|
Payment & Merchandising Technologies
|
2,122.4
|
|
|
1,215.7
|
|
||
Aerospace & Electronics
|
602.0
|
|
|
573.0
|
|
||
Engineered Materials
|
226.2
|
|
|
220.8
|
|
||
Corporate
|
270.8
|
|
|
642.4
|
|
||
Total
|
$
|
4,110.0
|
|
|
$
|
3,593.5
|
|
(in millions)
|
September 30,
2018
|
|
December 31,
2017
|
||||
Goodwill
|
|
|
|
||||
Fluid Handling
|
$
|
242.3
|
|
|
$
|
245.4
|
|
Payment & Merchandising Technologies
|
791.0
|
|
|
587.7
|
|
||
Aerospace & Electronics
|
202.4
|
|
|
202.4
|
|
||
Engineered Materials
|
171.3
|
|
|
171.4
|
|
||
Total
|
$
|
1,407.0
|
|
|
$
|
1,206.9
|
|
|
|
Three Months Ended
|
|
Nine Months Ended
|
||||||||||||
|
|
September 30,
|
|
September 30,
|
||||||||||||
(in millions)
|
|
2018
|
|
2017
|
|
2018
|
|
2017
|
||||||||
Fluid Handling
|
|
|
|
|
|
|
|
|
||||||||
Process Valves and Related Products
|
|
$
|
168.7
|
|
|
$
|
157.7
|
|
|
$
|
509.0
|
|
|
$
|
472.2
|
|
Commercial Valves
|
|
86.2
|
|
|
85.7
|
|
|
245.9
|
|
|
230.2
|
|
||||
Other Products
|
|
23.8
|
|
|
23.5
|
|
|
67.2
|
|
|
67.9
|
|
||||
Total Fluid Handling
|
|
$
|
278.7
|
|
|
$
|
266.9
|
|
|
$
|
822.1
|
|
|
$
|
770.3
|
|
|
|
|
|
|
|
|
|
|
||||||||
Payment & Merchandising Technologies
|
|
|
|
|
|
|
|
|
||||||||
Payment Acceptance and Dispensing Products
|
|
$
|
144.9
|
|
|
$
|
136.7
|
|
|
$
|
445.7
|
|
|
$
|
431.1
|
|
Banknotes and Security Products
|
|
126.7
|
|
|
—
|
|
|
348.1
|
|
|
—
|
|
||||
Merchandising Equipment
|
|
55.8
|
|
|
51.9
|
|
|
150.4
|
|
|
151.2
|
|
||||
Total Payment & Merchandising Technologies
|
|
$
|
327.4
|
|
|
$
|
188.6
|
|
|
$
|
944.2
|
|
|
$
|
582.3
|
|
|
|
|
|
|
|
|
|
|
||||||||
Aerospace & Electronics
|
|
|
|
|
|
|
|
|
||||||||
Commercial Original Equipment
|
|
$
|
85.2
|
|
|
$
|
90.1
|
|
|
$
|
256.0
|
|
|
$
|
259.9
|
|
Military and Other Original Equipment
|
|
51.5
|
|
|
37.4
|
|
|
142.2
|
|
|
116.3
|
|
||||
Commercial Aftermarket Products
|
|
38.8
|
|
|
32.3
|
|
|
109.0
|
|
|
96.0
|
|
||||
Military Aftermarket Products
|
|
14.0
|
|
|
12.2
|
|
|
39.8
|
|
|
34.3
|
|
||||
Total Aerospace & Electronics
|
|
$
|
189.5
|
|
|
$
|
172.0
|
|
|
$
|
547.0
|
|
|
$
|
506.5
|
|
|
|
|
|
|
|
|
|
|
||||||||
Engineered Materials
|
|
|
|
|
|
|
|
|
||||||||
FRP - Recreational Vehicles
|
|
$
|
28.4
|
|
|
$
|
37.2
|
|
|
$
|
96.9
|
|
|
$
|
116.9
|
|
FRP - Building Products
|
|
23.5
|
|
|
23.7
|
|
|
70.7
|
|
|
72.1
|
|
||||
FRP - Transportation
|
|
8.3
|
|
|
7.5
|
|
|
24.9
|
|
|
23.7
|
|
||||
Total Engineered Materials
|
|
$
|
60.2
|
|
|
$
|
68.4
|
|
|
$
|
192.5
|
|
|
$
|
212.7
|
|
|
|
|
|
|
|
|
|
|
||||||||
Total net sales
|
|
$
|
855.8
|
|
|
$
|
695.9
|
|
|
$
|
2,505.8
|
|
|
$
|
2,071.8
|
|
|
Nine Months Ended September 30,
|
||||||||||||||||||||||
|
2018
|
|
2017
|
||||||||||||||||||||
(in millions)
|
Total
Shareholders’
Equity
|
|
Noncontrolling
Interests
|
|
Total Equity
|
|
Total
Shareholders’
Equity
|
|
Noncontrolling
Interests
|
|
Total Equity
|
||||||||||||
Balance, beginning of period
|
$
|
1,345.2
|
|
|
$
|
3.3
|
|
|
$
|
1,348.5
|
|
|
$
|
1,133.8
|
|
|
$
|
11.9
|
|
|
$
|
1,145.7
|
|
Dividends
|
(62.7
|
)
|
|
—
|
|
|
(62.7
|
)
|
|
(58.8
|
)
|
|
—
|
|
|
(58.8
|
)
|
||||||
Reacquisition on open market
|
(25.0
|
)
|
|
—
|
|
|
(25.0
|
)
|
|
(25.0
|
)
|
|
—
|
|
|
(25.0
|
)
|
||||||
Exercise of stock options, net of shares reacquired
|
12.5
|
|
|
—
|
|
|
12.5
|
|
|
20.7
|
|
|
—
|
|
|
20.7
|
|
||||||
Stock-based compensation expense
|
16.1
|
|
|
—
|
|
|
16.1
|
|
|
16.5
|
|
|
—
|
|
|
16.5
|
|
||||||
Cumulative effect of adoption of ASC 606
|
6.7
|
|
|
—
|
|
|
6.7
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
Net income
|
246.4
|
|
|
—
|
|
|
246.4
|
|
|
200.5
|
|
|
0.6
|
|
|
201.1
|
|
||||||
Other comprehensive (loss) income
|
(12.7
|
)
|
|
(0.2
|
)
|
|
(12.9
|
)
|
|
91.4
|
|
|
(1.3
|
)
|
|
90.1
|
|
||||||
Comprehensive income (loss)
|
233.7
|
|
|
(0.2
|
)
|
|
233.5
|
|
|
291.9
|
|
|
(0.7
|
)
|
|
291.2
|
|
||||||
Balance, end of period
|
$
|
1,526.4
|
|
|
$
|
3.1
|
|
|
$
|
1,529.5
|
|
|
$
|
1,379.1
|
|
|
$
|
11.2
|
|
|
$
|
1,390.3
|
|
(in millions)
|
Defined Benefit Pension and Postretirement Items*
|
|
Currency Translation Adjustment
|
|
Total
|
|||||||
Balance as of December 31, 2017
|
$
|
(292.1
|
)
|
|
$
|
(88.0
|
)
|
|
$
|
(380.1
|
)
|
|
|
Other comprehensive income (loss) before reclassifications
|
9.4
|
|
|
(29.7
|
)
|
|
(20.3
|
)
|
|||
|
Amounts reclassified from accumulated other comprehensive loss
|
7.4
|
|
|
—
|
|
|
7.4
|
|
|||
Net current-period other comprehensive income (loss)
|
16.8
|
|
|
(29.7
|
)
|
|
(12.9
|
)
|
||||
Balance as of September 30, 2018
|
$
|
(275.3
|
)
|
|
$
|
(117.7
|
)
|
|
$
|
(393.0
|
)
|
|
|
Three Months Ended September 30,
|
|
Nine Months Ended September 30,
|
||||||||||||
(in millions)
|
|
2018
|
|
2017
|
|
2018
|
|
2017
|
||||||||
Amortization of pension items:
|
|
|
|
|
|
|
|
|
||||||||
Prior-service costs
|
|
$
|
(0.1
|
)
|
|
$
|
(0.1
|
)
|
|
$
|
(0.4
|
)
|
|
$
|
(0.3
|
)
|
Net loss
|
|
3.6
|
|
|
3.5
|
|
|
10.7
|
|
|
10.5
|
|
||||
Amortization of postretirement items:
|
|
|
|
|
|
|
|
|
||||||||
Prior-service costs
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(0.1
|
)
|
||||
Net gain
|
|
(0.3
|
)
|
|
(0.1
|
)
|
|
(0.9
|
)
|
|
(0.3
|
)
|
||||
Total before tax
|
|
$
|
3.2
|
|
|
$
|
3.3
|
|
|
$
|
9.4
|
|
|
$
|
9.8
|
|
Tax impact
|
|
0.6
|
|
|
1.0
|
|
|
2.0
|
|
|
3.0
|
|
||||
Total reclassifications for the period
|
|
$
|
2.6
|
|
|
$
|
2.3
|
|
|
$
|
7.4
|
|
|
$
|
6.8
|
|
|
Pension
|
|
Postretirement
|
|
SERP
|
||||||||||||||||||
(in millions)
|
2018
|
|
2017
|
|
2018
|
|
2017
|
|
2018
|
|
2017
|
||||||||||||
Service cost
|
$
|
1.5
|
|
|
$
|
1.2
|
|
|
$
|
0.1
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Interest cost
|
7.5
|
|
|
7.2
|
|
|
0.2
|
|
|
0.1
|
|
|
0.1
|
|
|
—
|
|
||||||
Expected return on plan assets
|
(16.4
|
)
|
|
(13.9
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
Amortization of prior service cost
|
(0.1
|
)
|
|
(0.1
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
Amortization of net loss (gain)
|
3.6
|
|
|
3.5
|
|
|
(0.3
|
)
|
|
(0.1
|
)
|
|
—
|
|
|
—
|
|
||||||
Net periodic (benefit) cost
|
$
|
(3.9
|
)
|
|
$
|
(2.1
|
)
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
0.1
|
|
|
$
|
—
|
|
|
Pension
|
|
Postretirement
|
|
SERP
|
||||||||||||||||||
(in millions)
|
2018
|
|
2017
|
|
2018
|
|
2017
|
|
2018
|
|
2017
|
||||||||||||
Service cost
|
$
|
4.5
|
|
|
$
|
3.6
|
|
|
$
|
0.2
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Interest cost
|
22.5
|
|
|
21.6
|
|
|
0.8
|
|
|
0.3
|
|
|
0.1
|
|
|
—
|
|
||||||
Expected return on plan assets
|
(49.1
|
)
|
|
(41.7
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
Amortization of prior service cost
|
(0.4
|
)
|
|
(0.3
|
)
|
|
—
|
|
|
(0.1
|
)
|
|
—
|
|
|
—
|
|
||||||
Amortization of net loss (gain)
|
10.7
|
|
|
10.5
|
|
|
(0.9
|
)
|
|
(0.3
|
)
|
|
—
|
|
|
—
|
|
||||||
Net periodic (benefit) cost
|
$
|
(11.8
|
)
|
|
$
|
(6.3
|
)
|
|
$
|
0.1
|
|
|
$
|
(0.1
|
)
|
|
$
|
0.1
|
|
|
$
|
—
|
|
(in millions)
|
Pension
|
|
Postretirement
|
|
SERP
|
||||||
Expected contributions in 2018
|
$
|
57.6
|
|
|
$
|
2.4
|
|
|
$
|
0.2
|
|
Amounts contributed during the nine months ended September 30, 2018
|
$
|
54.5
|
|
|
$
|
1.2
|
|
|
$
|
0.1
|
|
•
|
A re-measurement of the Company's net deferred tax assets due to a reduction in U.S. corporate income tax rate from 35% to 21% effective January 1, 2018 (“Re-measurement”), totaling
$75 million
; and
|
•
|
A one-time mandatory transition tax on previously deferred earnings of foreign subsidiaries (“Toll Tax”) and a reassessment of the Company's assertion regarding re-investment of its non-US subsidiaries' undistributed earnings (“Assertion Tax”), together totaling
$12 million
.
|
(in millions)
|
Three Months
|
|
Nine Months
|
||||
Re-measurement
|
$
|
(5.0
|
)
|
|
$
|
(5.0
|
)
|
Toll Tax
|
$
|
0.7
|
|
|
$
|
0.7
|
|
Assertion Tax
|
$
|
—
|
|
|
$
|
(0.4
|
)
|
(in percentage points)
|
Three Months
|
|
Nine Months
|
||
Re-measurement
|
(4.6
|
)%
|
|
(1.7
|
)%
|
Toll Tax
|
0.6
|
%
|
|
0.2
|
%
|
Assertion Tax
|
—
|
|
|
(0.1
|
)%
|
|
Three Months Ended September 30,
|
|
Nine Months Ended September 30,
|
||||
|
2018
|
|
2017
|
|
2018
|
|
2017
|
Effective Tax Rate
|
17.6%
|
|
29.4%
|
|
19.7%
|
|
29.4%
|
•
|
The elimination of certain deductions
|
•
|
U.S. taxes related to non-U.S. earnings
|
•
|
Earnings in jurisdictions with statutory tax rates higher than the U.S.
|
(in millions)
|
September 30, 2018
|
|
January 1, 2018
|
||||
Contract assets
|
$
|
54.6
|
|
|
$
|
22.1
|
|
Contract liabilities
|
$
|
71.8
|
|
|
$
|
21.1
|
|
(in millions)
|
Fluid Handling
|
|
Payment & Merchandising Technologies
|
|
Aerospace & Electronics
|
|
Engineered Materials
|
|
Total
|
||||||||||
Balance as of December 31, 2016
|
$
|
212.3
|
|
|
$
|
563.3
|
|
|
$
|
202.3
|
|
|
$
|
171.3
|
|
|
$
|
1,149.2
|
|
Additions
|
22.6
|
|
|
8.9
|
|
|
—
|
|
|
—
|
|
|
31.5
|
|
|||||
Currency translation
|
10.5
|
|
|
15.5
|
|
|
0.1
|
|
|
0.1
|
|
|
26.2
|
|
|||||
Balance at December 31, 2017
|
$
|
245.4
|
|
|
$
|
587.7
|
|
|
$
|
202.4
|
|
|
$
|
171.4
|
|
|
$
|
1,206.9
|
|
Additions
|
—
|
|
|
206.7
|
|
|
—
|
|
|
—
|
|
|
206.7
|
|
|||||
Currency translation
|
(3.1
|
)
|
|
(3.4
|
)
|
|
—
|
|
|
(0.1
|
)
|
|
(6.6
|
)
|
|||||
Balance as of September 30, 2018
|
$
|
242.3
|
|
|
$
|
791.0
|
|
|
$
|
202.4
|
|
|
$
|
171.3
|
|
|
$
|
1,407.0
|
|
(in millions)
|
Nine Months Ended
September 30, 2018 |
|
Year Ended December 31, 2017
|
||||
Balance at beginning of period, net of accumulated amortization
|
$
|
276.8
|
|
|
$
|
282.2
|
|
Additions
|
250.8
|
|
|
18.2
|
|
||
Amortization expense
|
(33.7
|
)
|
|
(30.9
|
)
|
||
Currency translation and other
|
(1.8
|
)
|
|
7.3
|
|
||
Balance at end of period, net of accumulated amortization
|
$
|
492.1
|
|
|
$
|
276.8
|
|
|
Weighted Average
Amortization Period of Finite Lived Assets (in years)
|
|
September 30, 2018
|
|
December 31, 2017
|
||||||||||||||||||||
(in millions)
|
|
Gross
Asset
|
|
Accumulated
Amortization
|
|
Net
|
|
Gross
Asset
|
|
Accumulated
Amortization
|
|
Net
|
|||||||||||||
Intellectual property rights
|
16.5
|
|
$
|
131.5
|
|
|
$
|
55.7
|
|
|
$
|
75.8
|
|
|
$
|
91.7
|
|
|
$
|
54.8
|
|
|
$
|
36.9
|
|
Customer relationships and backlog
|
18.4
|
|
547.7
|
|
|
204.8
|
|
|
342.9
|
|
|
414.7
|
|
|
183.4
|
|
|
231.3
|
|
||||||
Drawings
|
37.9
|
|
11.1
|
|
|
10.4
|
|
|
0.7
|
|
|
11.1
|
|
|
10.4
|
|
|
0.7
|
|
||||||
Other
|
10.2
|
|
135.2
|
|
|
62.5
|
|
|
72.7
|
|
|
61.8
|
|
|
53.9
|
|
|
7.9
|
|
||||||
Total
|
17.7
|
|
$
|
825.5
|
|
|
$
|
333.4
|
|
|
$
|
492.1
|
|
|
$
|
579.3
|
|
|
$
|
302.5
|
|
|
$
|
276.8
|
|
(in millions)
|
|
||
Remainder of 2018
|
$
|
10.9
|
|
2019
|
41.2
|
|
|
2020
|
37.1
|
|
|
2021
|
34.7
|
|
|
2022 and thereafter
|
298.0
|
|
(in millions)
|
September 30,
2018 |
|
December 31,
2017 |
||||
Employee related expenses
|
$
|
119.9
|
|
|
$
|
99.1
|
|
Warranty
|
18.0
|
|
|
14.6
|
|
||
Contract liabilities
|
71.8
|
|
|
27.0
|
|
||
Other
|
155.3
|
|
|
111.4
|
|
||
Total
|
$
|
365.0
|
|
|
$
|
252.1
|
|
(in millions)
|
Nine Months Ended
September 30, 2018
|
|
Year Ended December 31, 2017
|
||||
Balance at beginning of period
|
$
|
14.6
|
|
|
$
|
15.5
|
|
Expense
|
12.8
|
|
|
13.4
|
|
||
Changes due to acquisitions
|
1.1
|
|
|
0.1
|
|
||
Payments / deductions
|
(10.3
|
)
|
|
(14.7
|
)
|
||
Currency translation
|
(0.2
|
)
|
|
0.3
|
|
||
Balance at end of period
|
$
|
18.0
|
|
|
$
|
14.6
|
|
|
Three Months Ended
|
|
Nine Months Ended
|
|
Year Ended
|
|||||||||
|
September 30,
|
|
September 30,
|
|
December 31,
|
|||||||||
|
2018
|
|
2017
|
|
2018
|
|
2017
|
|
2017
|
|||||
Beginning claims
|
29,920
|
|
|
31,980
|
|
|
32,234
|
|
|
36,052
|
|
|
36,052
|
|
New claims
|
574
|
|
|
667
|
|
|
1,802
|
|
|
2,169
|
|
|
2,819
|
|
Settlements
|
(174
|
)
|
|
(278
|
)
|
|
(779
|
)
|
|
(906
|
)
|
|
(1,038
|
)
|
Dismissals
|
(997
|
)
|
|
(294
|
)
|
|
(3,934
|
)
|
|
(5,240
|
)
|
|
(5,599
|
)
|
Ending claims
|
29,323
|
|
|
32,075
|
|
|
29,323
|
|
|
32,075
|
|
|
32,234
|
|
|
Three Months Ended
|
|
Nine Months Ended
|
|
Year Ended
|
||||||||||||||
(in millions)
|
September 30,
|
|
September 30,
|
|
December 31,
|
||||||||||||||
|
2018
|
|
2017
|
|
2018
|
|
2017
|
|
2017
|
||||||||||
Settlement / indemnity costs incurred
(1)
|
$
|
7.6
|
|
|
$
|
21.0
|
|
|
$
|
49.6
|
|
|
$
|
46.8
|
|
|
$
|
51.8
|
|
Defense costs incurred
(1)
|
6.2
|
|
|
9.7
|
|
|
20.1
|
|
|
28.7
|
|
|
36.5
|
|
|||||
Total costs incurred
|
$
|
13.8
|
|
|
$
|
30.7
|
|
|
$
|
69.7
|
|
|
$
|
75.5
|
|
|
$
|
88.3
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Settlement / indemnity payments
|
$
|
12.0
|
|
|
$
|
13.9
|
|
|
$
|
46.0
|
|
|
$
|
37.3
|
|
|
$
|
51.7
|
|
Defense payments
|
5.9
|
|
|
9.5
|
|
|
17.7
|
|
|
28.7
|
|
|
38.9
|
|
|||||
Insurance receipts
|
(6.3
|
)
|
|
(4.8
|
)
|
|
(17.3
|
)
|
|
(19.2
|
)
|
|
(28.1
|
)
|
|||||
Pre-tax cash payments
|
$
|
11.6
|
|
|
$
|
18.6
|
|
|
$
|
46.4
|
|
|
$
|
46.8
|
|
|
$
|
62.5
|
|
(in millions)
|
|
September 30,
2018 |
|
December 31,
2017 |
||||
Commercial paper
|
|
$
|
106.3
|
|
|
$
|
—
|
|
2.75% notes due December 2018
|
|
—
|
|
|
250.0
|
|
||
Other deferred financing costs associated with credit facilities
|
|
—
|
|
|
(0.6
|
)
|
||
Total short-term borrowings and current maturities of long-term debt
|
|
$
|
106.3
|
|
|
$
|
249.4
|
|
|
Severance
|
|
Other
|
|
Total
|
||||||||||||||||||
(in millions)
|
Nine Months Ended
September 30, 2018 |
|
Cumulative
|
|
Nine Months Ended
September 30, 2018 |
|
Cumulative
|
|
Nine Months Ended
September 30, 2018 |
|
Cumulative
|
||||||||||||
Fluid Handling
|
$
|
4.9
|
|
|
$
|
15.5
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
4.9
|
|
|
$
|
15.5
|
|
Payment & Merchandising Technologies
|
0.1
|
|
|
12.3
|
|
|
0.4
|
|
|
0.4
|
|
|
0.5
|
|
|
12.7
|
|
||||||
Aerospace & Electronics
|
—
|
|
|
1.3
|
|
|
(0.7
|
)
|
|
(0.7
|
)
|
|
(0.7
|
)
|
|
0.6
|
|
||||||
|
$
|
5.0
|
|
|
$
|
29.1
|
|
|
$
|
(0.3
|
)
|
|
$
|
(0.3
|
)
|
|
$
|
4.7
|
|
|
$
|
28.8
|
|
(in millions)
|
2018
|
|
2019
|
|
2020
|
|
Total
|
||||||||
Fluid Handling
|
$
|
9.9
|
|
|
$
|
4.5
|
|
|
$
|
1.6
|
|
|
$
|
16.0
|
|
Payment & Merchandising Technologies
|
4.5
|
|
|
(3.2
|
)
|
|
—
|
|
|
$
|
1.3
|
|
|||
Aerospace & Electronics
|
0.6
|
|
|
3.1
|
|
|
—
|
|
|
$
|
3.7
|
|
|||
|
$
|
15.0
|
|
|
$
|
4.4
|
|
|
$
|
1.6
|
|
|
$
|
21.0
|
|
(in millions)
|
2018
|
|
2019
|
|
2020
|
|
Total
|
||||||||
Restructuring
|
$
|
7.6
|
|
|
$
|
(1.2
|
)
|
|
$
|
—
|
|
|
$
|
6.4
|
|
Facility consolidation
|
7.4
|
|
|
5.6
|
|
|
1.6
|
|
|
14.6
|
|
||||
|
$
|
15.0
|
|
|
$
|
4.4
|
|
|
$
|
1.6
|
|
|
$
|
21.0
|
|
(in millions)
|
Balance at December 31, 2017
|
|
Expense
(Gain)
(1)
|
|
Utilization
|
|
Balance at
September 30, 2018 |
||||||||
Fluid Handling
|
|
|
|
|
|
|
|
||||||||
Severance
|
$
|
10.6
|
|
|
$
|
4.9
|
|
|
$
|
(1.4
|
)
|
|
14.1
|
|
|
Other
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||
Total Fluid Handling
|
$
|
10.6
|
|
|
$
|
4.9
|
|
|
$
|
(1.4
|
)
|
|
$
|
14.1
|
|
|
|
|
|
|
|
|
|
||||||||
Payment & Merchandising Technologies
|
|
|
|
|
|
|
|
||||||||
Severance
|
$
|
12.2
|
|
|
$
|
0.1
|
|
|
$
|
(2.1
|
)
|
|
10.2
|
|
|
Other
|
—
|
|
|
0.4
|
|
|
(0.4
|
)
|
|
—
|
|
||||
Total Payment & Merchandising Technologies
|
$
|
12.2
|
|
|
$
|
0.5
|
|
|
$
|
(2.5
|
)
|
|
$
|
10.2
|
|
|
|
|
|
|
|
|
|
||||||||
Aerospace & Electronics
|
|
|
|
|
|
|
|
||||||||
Severance
|
$
|
1.3
|
|
|
$
|
—
|
|
|
$
|
(0.4
|
)
|
|
$
|
0.9
|
|
Other
|
—
|
|
|
(0.7
|
)
|
|
0.7
|
|
|
—
|
|
||||
Total Aerospace & Electronics
|
$
|
1.3
|
|
|
$
|
(0.7
|
)
|
|
$
|
0.3
|
|
|
$
|
0.9
|
|
Total Restructuring
|
$
|
24.1
|
|
|
$
|
4.7
|
|
|
$
|
(3.6
|
)
|
|
$
|
25.2
|
|
•
|
an increase in sales related to acquisitions, net of $131.8 million, or 18.9%; and
|
•
|
an increase in core sales of $40.1 million, or 5.8%, partially offset by
|
•
|
unfavorable foreign currency translation of $12.0 million, or 1.7%.
|
•
|
The elimination of certain deductions;
|
•
|
U.S. taxes related to non-U.S. earnings; and
|
•
|
Earnings in jurisdictions with statutory tax rates higher than the U.S.
|
|
Three Months Ended
|
||||||
|
September 30,
|
||||||
(in millions)
|
2018
|
|
2017
|
||||
Net income before allocation to noncontrolling interests
|
$
|
97.1
|
|
|
$
|
68.5
|
|
Other comprehensive (loss) income, net of tax
|
|
|
|
||||
Currency translation adjustment
|
(8.2
|
)
|
|
24.6
|
|
||
Changes in pension and postretirement plan assets and benefit obligation, net of tax
|
2.7
|
|
|
2.3
|
|
||
Other comprehensive (loss) income, net of tax
|
(5.5
|
)
|
|
26.9
|
|
||
Comprehensive income before allocation to noncontrolling interests
|
91.6
|
|
|
95.4
|
|
||
Less: Noncontrolling interests in comprehensive income
|
—
|
|
|
(1.4
|
)
|
||
Comprehensive income attributable to common shareholders
|
$
|
91.6
|
|
|
$
|
96.8
|
|
|
Third Quarter
|
|
Change
|
|||||||||||
(dollars in millions)
|
2018
|
|
2017
|
|
$
|
|
%
|
|||||||
Net sales by product line:
|
|
|
|
|
|
|
|
|
|
|||||
Process Valves and Related Products
|
$
|
168.7
|
|
|
$
|
157.7
|
|
|
$
|
11.0
|
|
|
7.0
|
%
|
Commercial Valves
|
86.2
|
|
|
85.7
|
|
|
0.5
|
|
|
0.6
|
%
|
|||
Other Products
|
23.8
|
|
|
23.5
|
|
|
0.3
|
|
|
1.3
|
%
|
|||
Total net sales
|
$
|
278.7
|
|
|
266.9
|
|
|
$
|
11.8
|
|
|
4.4
|
%
|
|
Operating profit
|
$
|
30.4
|
|
|
$
|
30.7
|
|
|
$
|
(0.3
|
)
|
|
(1.0
|
)%
|
Acquisition-related and integration charges *
|
$
|
—
|
|
|
$
|
0.5
|
|
|
$
|
(0.5
|
)
|
|
NM
|
|
Restructuring and related charges *
|
$
|
5.5
|
|
|
$
|
—
|
|
|
$
|
5.5
|
|
|
NM
|
|
Change in presentation of pension and postretirement costs *
|
$
|
4.3
|
|
|
$
|
1.9
|
|
|
$
|
2.4
|
|
|
NM
|
|
Operating margin
|
10.9
|
%
|
|
11.5
|
%
|
|
|
|
|
|||||
* Acquisition-related and integration charges, restructuring and related charges and a change in presentation of pension and postretirement costs are included in operating profit and operating margin.
|
•
|
Sales of Process Valves and Related Products increased by
$11.0 million
, or
7.0%
, to
$168.7 million
in 2018. The increase reflected a core sales increase of $12.6 million, or 8.0%, partially offset by unfavorable foreign currency translation of $1.6 million, or 1.0%. The core sales increase reflected broad based strength across most major vertical markets.
|
•
|
Sales of Commercial Valves increased by
$0.5 million
, or
0.6%
, to
$86.2 million
in 2018. The increase reflected an increase in core sales of $2.3 million, or 2.7%, primarily related to higher sales in the Middle East non-residential construction market, partially offset by unfavorable foreign currency translation of $1.8 million, or 2.1%, as the Canadian dollar weakened against the U.S. dollar.
|
•
|
Sales of Other Products increased by
$0.3 million
, or
1.3%
, to
$23.8 million
in 2018.
|
|
Third Quarter
|
|
Change
|
|||||||||||
(dollars in millions)
|
2018
|
|
2017
|
|
$
|
|
%
|
|||||||
Net sales by product line:
|
|
|
|
|
|
|
|
|||||||
Payment Acceptance and Dispensing Products
|
$
|
144.9
|
|
|
$
|
136.7
|
|
|
$
|
8.2
|
|
|
6.0
|
%
|
Banknotes and Security Products
|
126.7
|
|
|
—
|
|
|
126.7
|
|
|
NM
|
|
|||
Merchandising Equipment
|
55.8
|
|
|
51.9
|
|
|
3.9
|
|
|
7.5
|
%
|
|||
Total net sales
|
$
|
327.4
|
|
|
$
|
188.6
|
|
|
$
|
138.8
|
|
|
73.6
|
%
|
Operating profit
|
$
|
57.3
|
|
|
$
|
40.7
|
|
|
$
|
16.6
|
|
|
40.8
|
%
|
Acquisition-related and integration charges *
|
$
|
2.1
|
|
|
$
|
—
|
|
|
$
|
2.1
|
|
|
NM
|
|
Restructuring and related charges *
|
$
|
0.9
|
|
|
$
|
—
|
|
|
$
|
0.9
|
|
|
NM
|
|
Change in presentation of pension and postretirement costs *
|
$
|
0.7
|
|
|
$
|
0.7
|
|
|
$
|
—
|
|
|
—
|
%
|
Operating margin
|
17.5
|
%
|
|
21.6
|
%
|
|
|
|
|
|||||
* Acquisition-related and integration charges, restructuring and related charges and a change in presentation of pension and postretirement costs are included in operating profit and operating margin.
|
•
|
Sales of Payment Acceptance and Dispensing Products increased
$8.2 million
, or
6.0%
, to
$144.9 million
in 2018. The increase reflected a core sales increase of $9.3 million, or 6.8%, partially offset by unfavorable foreign currency translation of $1.1 million, or 0.8%. The core sales increase primarily reflected higher sales to the transportation, financial services, gaming and vending end markets.
|
•
|
Sales of Banknotes and Security Products increased $126.7 million due to the acquisition of Crane Currency in January 2018.
|
•
|
Sales of Merchandising Equipment increased
$3.9 million
, or
7.5%
, to
$55.8 million
in 2018 reflecting higher sales of cold drink machines.
|
|
Third Quarter
|
|
Change
|
|||||||||||
(dollars in millions)
|
2018
|
|
2017
|
|
$
|
|
%
|
|||||||
Net sales by product line:
|
|
|
|
|
|
|
|
|
|
|||||
Commercial Original Equipment
|
$
|
85.2
|
|
|
$
|
90.1
|
|
|
$
|
(4.9
|
)
|
|
(5.4
|
)%
|
Military Original Equipment
|
51.5
|
|
|
37.4
|
|
|
14.1
|
|
|
37.7
|
%
|
|||
Commercial Aftermarket Products
|
38.8
|
|
|
32.3
|
|
|
6.5
|
|
|
20.1
|
%
|
|||
Military Aftermarket Products
|
14.0
|
|
|
12.2
|
|
|
1.8
|
|
|
14.8
|
%
|
|||
Total net sales
|
$
|
189.5
|
|
|
$
|
172.0
|
|
|
$
|
17.5
|
|
|
10.2
|
%
|
Operating profit
|
$
|
42.5
|
|
|
$
|
35.5
|
|
|
$
|
7.0
|
|
|
19.7
|
%
|
Restructuring and related charges*
|
$
|
0.2
|
|
|
$
|
—
|
|
|
$
|
0.2
|
|
|
NM
|
|
Change in presentation of pension and postretirement costs *
|
$
|
—
|
|
|
$
|
(0.7
|
)
|
|
$
|
0.7
|
|
|
NM
|
|
Operating margin
|
22.4
|
%
|
|
20.6
|
%
|
|
|
|
|
|||||
* Restructuring and related charges and a change in presentation of pension and postretirement costs are included in operating profit and operating margin.
|
•
|
Sales of Commercial Original Equipment decreased by
$4.9 million
, or
5.4%
, to
$85.2 million
in 2018, primarily reflecting lower levels of funded engineering projects, partially offset by strong sales to the large commercial transportation market.
|
•
|
Sales of Military Original Equipment increased by
$14.1 million
, or
37.7%
, to $
51.5 million
in 2018, primarily reflecting sales for a large ground-based radar program in our Microwave business, as well as higher funded engineering sales.
|
•
|
Sales of Commercial Aftermarket Products increased by
$6.5 million
, or
20.1%
, to $
38.8 million
in 2018, primarily reflecting higher sales of commercial spares.
|
•
|
Sales of Military Aftermarket Products increased by
$1.8 million
, or
14.8%
, to $
14.0 million
in 2018, primarily as a result of higher sales of military spares, reflecting generally stronger defense end markets.
|
|
Third Quarter
|
|
Change
|
|||||||||||
(dollars in millions)
|
2018
|
|
2017
|
|
$
|
|
%
|
|||||||
Net sales by product line:
|
|
|
|
|
|
|
|
|||||||
FRP- Recreational Vehicles
|
$
|
28.4
|
|
|
$
|
37.2
|
|
|
$
|
(8.8
|
)
|
|
(23.7
|
)%
|
FRP- Building Products
|
23.5
|
|
|
23.7
|
|
|
(0.2
|
)
|
|
(0.8
|
)%
|
|||
FRP- Transportation
|
8.3
|
|
|
7.5
|
|
|
0.8
|
|
|
10.7
|
%
|
|||
Total net sales
|
$
|
60.2
|
|
|
$
|
68.4
|
|
|
$
|
(8.2
|
)
|
|
(12.0
|
)%
|
Operating profit
|
$
|
8.7
|
|
|
$
|
12.2
|
|
|
$
|
(3.5
|
)
|
|
(28.7
|
)%
|
Change in presentation of pension and postretirement costs *
|
$
|
0.2
|
|
|
$
|
—
|
|
|
$
|
0.2
|
|
|
NM
|
|
Operating margin
|
14.5
|
%
|
|
17.8
|
%
|
|
|
|
|
|||||
* Changes in presentation of pension and postretirement costs are included in operating profit and operating margin.
|
|
Year-to-Date
|
|
Change
|
|||||||||||
(dollars in millions)
|
2018
|
|
2017
|
|
$
|
|
%
|
|||||||
Net sales
|
$
|
2,505.8
|
|
|
$
|
2,071.8
|
|
|
$
|
434.0
|
|
|
20.9
|
%
|
Operating profit
|
331.2
|
|
|
301.0
|
|
|
30.2
|
|
|
10.0
|
%
|
|||
Acquisition-related and integration charges *
|
11.3
|
|
|
3.1
|
|
|
8.2
|
|
|
NM
|
|
|||
Restructuring and related charges *
|
9.1
|
|
|
—
|
|
|
9.1
|
|
|
NM
|
|
|||
Change in presentation of pension and postretirement costs *
|
15.7
|
|
|
10.0
|
|
|
5.7
|
|
|
57.0
|
%
|
|||
Operating margin
|
13.2
|
%
|
|
14.5
|
%
|
|
|
|
|
|
|
|||
Other income (expense):
|
|
|
|
|
|
|
|
|||||||
Interest income
|
1.7
|
|
|
1.8
|
|
|
(0.1
|
)
|
|
(5.6
|
)%
|
|||
Interest expense
|
(39.8
|
)
|
|
(27.3
|
)
|
|
(12.5
|
)
|
|
(45.8
|
)%
|
|||
Miscellaneous income
|
13.9
|
|
|
9.2
|
|
|
4.7
|
|
|
51.1
|
%
|
|||
|
(24.2
|
)
|
|
(16.3
|
)
|
|
(7.9
|
)
|
|
(48.5
|
)%
|
|||
Income before income taxes
|
307.0
|
|
|
284.7
|
|
|
22.3
|
|
|
7.8
|
%
|
|||
Provision for income taxes
|
60.6
|
|
|
83.6
|
|
|
(23.0
|
)
|
|
(27.5
|
)%
|
|||
Net income before allocation to noncontrolling interests
|
246.4
|
|
|
201.1
|
|
|
45.3
|
|
|
22.5
|
%
|
|||
Less: Noncontrolling interest in subsidiaries’ earnings
|
—
|
|
|
0.6
|
|
|
(0.6
|
)
|
|
NM
|
|
|||
Net income attributable to common shareholders
|
$
|
246.4
|
|
|
$
|
200.5
|
|
|
$
|
45.9
|
|
|
22.9
|
%
|
* Acquisition-related and integration charges, restructuring and related charges and a change in presentation of pension and postretirement costs are included in operating profit and operating margin.
|
•
|
an increase in sales related to acquisitions, net of $359.3 million, or 17.3%;
|
•
|
an increase in core sales of $47.6 million, or 2.3%; and
|
•
|
favorable foreign currency translation of $27.1 million, or 1.3%.
|
•
|
The elimination of certain deductions;
|
•
|
U.S. taxes related to non-U.S. earnings; and
|
•
|
Earnings in jurisdictions with statutory tax rates higher than the U.S.
|
|
Nine Months Ended
|
||||||
|
September 30,
|
||||||
(in millions)
|
2018
|
|
2017
|
||||
Net income before allocation to noncontrolling interests
|
$
|
246.4
|
|
|
$
|
201.1
|
|
Other comprehensive (loss) income, net of tax
|
|
|
|
||||
Currency translation adjustment
|
(29.7
|
)
|
|
83.2
|
|
||
Changes in pension and postretirement plan assets and benefit obligation, net of tax
|
16.8
|
|
|
6.9
|
|
||
Other comprehensive (loss) income, net of tax
|
(12.9
|
)
|
|
90.1
|
|
||
Comprehensive income before allocation to noncontrolling interests
|
233.5
|
|
|
291.2
|
|
||
Less: Noncontrolling interests in comprehensive income
|
(0.2
|
)
|
|
(0.7
|
)
|
||
Comprehensive income attributable to common shareholders
|
$
|
233.7
|
|
|
$
|
291.9
|
|
|
Year-To-Date
|
|
Change
|
|||||||||||
(dollars in millions)
|
2018
|
|
2017
|
|
$
|
|
%
|
|||||||
Net sales by product line:
|
|
|
|
|
|
|
|
|
|
|||||
Process Valves and Related Products
|
$
|
509.0
|
|
|
$
|
472.2
|
|
|
$
|
36.8
|
|
|
7.8
|
%
|
Commercial Valves
|
245.9
|
|
|
230.2
|
|
|
15.7
|
|
|
6.8
|
%
|
|||
Other Products
|
67.2
|
|
|
67.9
|
|
|
(0.7
|
)
|
|
(1.0
|
)%
|
|||
Total net sales
|
$
|
822.1
|
|
|
$
|
770.3
|
|
|
$
|
51.8
|
|
|
6.7
|
%
|
Operating profit
|
$
|
88.0
|
|
|
$
|
84.1
|
|
|
$
|
3.9
|
|
|
4.6
|
%
|
Acquisition-related and integration charges *
|
$
|
—
|
|
|
$
|
2.5
|
|
|
$
|
(2.5
|
)
|
|
NM
|
|
Restructuring and related charges *
|
$
|
6.6
|
|
|
$
|
—
|
|
|
$
|
6.6
|
|
|
NM
|
|
Change in presentation of pension and postretirement costs *
|
$
|
11.5
|
|
|
$
|
7.2
|
|
|
$
|
4.3
|
|
|
59.7
|
%
|
Operating margin
|
10.7
|
%
|
|
10.9
|
%
|
|
|
|
|
|||||
* Acquisition-related and integration charges, restructuring and related charges and a change in presentation of pension and postretirement costs are included in operating profit and operating margin.
|
•
|
Sales of Process Valves and Related Products increased by
$36.8 million
, or
7.8%
, to
$509.0 million
in 2018. The increase reflected a core sales increase of $15.0 million, or 3.2%, favorable foreign currency translation of $11.1 million, or 2.4%, as the euro strengthened against the U.S. dollar and an increase in sales related to the Westlock acquisition of $10.7 million, or 2.2%. The core sales increase primarily reflects higher sales to the chemical, oil & gas, and general industrial markets, partially offset by lower sales to the power market.
|
•
|
Sales of Commercial Valves increased by
$15.7 million
, or
6.8%
, to
$245.9 million
in 2018. The increase reflected an increase in core sales of $8.1 million, or 3.5%, primarily related to higher sales in the Canadian non-residential construction market and favorable foreign currency translation of $7.6 million, or 3.3%, as the British pound strengthened against the U.S. dollar.
|
•
|
Sales of Other Products decreased by
$0.7 million
, or
1.0%
, to
$67.2 million
in 2018.
|
|
Year-To-Date
|
|
Change
|
|||||||||||
(dollars in millions)
|
2018
|
|
2017
|
|
$
|
|
%
|
|||||||
Net sales by product line:
|
|
|
|
|
|
|
|
|||||||
Payment Acceptance and Dispensing Products
|
$
|
445.7
|
|
|
$
|
431.1
|
|
|
$
|
14.6
|
|
|
3.4
|
%
|
Banknotes and Security Products
|
348.1
|
|
|
—
|
|
|
348.1
|
|
|
NM
|
|
|||
Merchandising Equipment
|
150.4
|
|
|
151.2
|
|
|
(0.8
|
)
|
|
(0.5
|
)%
|
|||
Total net sales
|
$
|
944.2
|
|
|
$
|
582.3
|
|
|
$
|
361.9
|
|
|
62.2
|
%
|
Operating profit
|
$
|
139.8
|
|
|
$
|
121.0
|
|
|
$
|
18.8
|
|
|
15.5
|
%
|
Acquisition-related and integration charges *
|
$
|
11.3
|
|
|
$
|
0.6
|
|
|
$
|
10.7
|
|
|
NM
|
|
Restructuring and related charges *
|
$
|
2.0
|
|
|
$
|
—
|
|
|
$
|
2.0
|
|
|
NM
|
|
Change in presentation of pension and postretirement costs *
|
$
|
2.1
|
|
|
$
|
2.0
|
|
|
$
|
0.1
|
|
|
5.0
|
%
|
Operating margin
|
14.8
|
%
|
|
20.8
|
%
|
|
|
|
|
|||||
* Acquisition-related and integration charges, restructuring and related charges and a change in presentation of pension and postretirement costs are included in operating profit and operating margin.
|
•
|
Sales of Payment Acceptance and Dispensing Products increased
$14.6 million
, or
3.4%
, to
$445.7 million
in 2018. The increase was primarily related to favorable foreign currency translation of $10.6 million, or 2.4%, as the British pound and euro strengthened against the U.S. dollar, higher sales related to the Microtronic acquisition of $2.8 million, or 0.6% and higher core sales of $1.2 million, or 0.4%. The higher core sales was primarily related to higher sales in the gaming, vending and financial services vertical markets.
|
•
|
Sales of Banknotes and Security Products increased $348.1 million due to the acquisition of Crane Currency.
|
•
|
Sales of Merchandising Equipment decreased
$0.8 million
, or
0.5%
, to
$150.4 million
in 2018. The decrease reflected a core sales decline of $2.2 million, or 1.5%, driven primarily by lower capital spending by large bottler customers, partially offset by favorable foreign currency of $1.4 million, or 1.0%.
|
|
Year-To-Date
|
|
Change
|
|||||||||||
(dollars in millions)
|
2018
|
|
2017
|
|
$
|
|
%
|
|||||||
Net sales by product line:
|
|
|
|
|
|
|
|
|
|
|||||
Commercial Original Equipment
|
$
|
256.0
|
|
|
$
|
259.9
|
|
|
$
|
(3.9
|
)
|
|
(1.5
|
)%
|
Military Original Equipment
|
142.2
|
|
|
116.3
|
|
|
25.9
|
|
|
22.3
|
%
|
|||
Commercial Aftermarket
|
109.0
|
|
|
96.0
|
|
|
13.0
|
|
|
13.5
|
%
|
|||
Military Aftermarket
|
39.8
|
|
|
34.3
|
|
|
5.5
|
|
|
16.0
|
%
|
|||
Total net sales
|
$
|
547.0
|
|
|
$
|
506.5
|
|
|
$
|
40.5
|
|
|
8.0
|
%
|
Operating profit
|
$
|
120.0
|
|
|
$
|
104.9
|
|
|
$
|
15.1
|
|
|
14.4
|
%
|
Restructuring and related charges*
|
$
|
0.5
|
|
|
$
|
—
|
|
|
$
|
0.5
|
|
|
NM
|
|
Change in presentation of pension and postretirement costs*
|
$
|
0.5
|
|
|
$
|
(0.1
|
)
|
|
$
|
0.6
|
|
|
NM
|
|
Operating margin
|
21.9
|
%
|
|
20.7
|
%
|
|
|
|
|
|||||
* Restructuring and related charges and a change in presentation of pension and postretirement costs are included in operating profit and operating margin.
|
•
|
Sales of Commercial Original Equipment decreased by
$3.9 million
, or
1.5%
, to
$256.0 million
in 2018, primarily reflecting lower funded engineering sales.
|
•
|
Sales of Military Original Equipment increased by
$25.9 million
, or
22.3%
, to
$142.2 million
in 2018, primarily reflecting sales for a large ground-based radar program in our Microwave business, as well as higher funded engineering sales.
|
•
|
Sales of Commercial Aftermarket products increased by
$13.0 million
, or
13.5%
, to
$109.0 million
in 2018, reflecting higher sales of commercial spares.
|
•
|
Sales of Military Aftermarket increased by
$5.5 million
, or
16.0%
, to
$39.8 million
in 2018, primarily reflecting higher sales of military spares, partially offset by lower sales related to modernization and upgrade programs.
|
|
Year-To-Date
|
|
Change
|
|||||||||||
(dollars in millions)
|
2018
|
|
2017
|
|
$
|
|
%
|
|||||||
Net sales by product line:
|
|
|
|
|
|
|
|
|||||||
FRP- Recreational Vehicles
|
$
|
96.9
|
|
|
$
|
116.9
|
|
|
$
|
(20.0
|
)
|
|
(17.1
|
)%
|
FRP- Building Products
|
70.7
|
|
|
72.1
|
|
|
(1.4
|
)
|
|
(1.9
|
)%
|
|||
FRP- Transportation
|
24.9
|
|
|
23.7
|
|
|
1.2
|
|
|
5.1
|
%
|
|||
Total net sales
|
$
|
192.5
|
|
|
$
|
212.7
|
|
|
$
|
(20.2
|
)
|
|
(9.5
|
)%
|
Operating profit
|
$
|
32.4
|
|
|
$
|
39.4
|
|
|
$
|
(7.0
|
)
|
|
(17.8
|
)%
|
Change in presentation of pension and postretirement costs*
|
$
|
0.2
|
|
|
$
|
0.1
|
|
|
$
|
0.1
|
|
|
100.0
|
%
|
Operating margin
|
16.8
|
%
|
|
18.5
|
%
|
|
|
|
|
|||||
* Change in presentation of pension and postretirement costs are included in operating profit and operating margin.
|
|
|
|
|
Nine Months Ended
|
||||||
|
|
September 30,
|
||||||
(in millions)
|
|
2018
|
|
2017
|
||||
Net cash provided by (used for):
|
|
|
|
|
||||
Operating activities
|
|
$
|
222.4
|
|
|
$
|
174.2
|
|
Investing activities
|
|
(722.3
|
)
|
|
(89.1
|
)
|
||
Financing activities
|
|
129.0
|
|
|
(63.1
|
)
|
||
Effect of foreign currency exchange rate changes on cash and cash equivalents
|
|
(11.7
|
)
|
|
40.5
|
|
||
Decrease in cash and cash equivalents
|
|
$
|
(382.6
|
)
|
|
$
|
62.5
|
|
Exhibit 31.1*
|
|
|
Exhibit 31.2*
|
|
|
Exhibit 32.1**
|
|
|
Exhibit 32.2**
|
|
|
Exhibit 101.INS*
|
|
XBRL Instance Document
|
Exhibit 101.SCH*
|
|
XBRL Taxonomy Extension Schema Document
|
Exhibit 101.CAL*
|
|
XBRL Taxonomy Calculation Linkbase Document
|
Exhibit 101.DEF*
|
|
XBRL Taxonomy Extension Definition Linkbase Document
|
Exhibit 101.LAB*
|
|
XBRL Taxonomy Label Linkbase Document
|
Exhibit 101.PRE*
|
|
XBRL Taxonomy Presentation Linkbase Document
|
|
|
CRANE CO.
|
|
|
REGISTRANT
|
|
|
|
Date
|
|
|
November 2, 2018
|
By
|
/s/ Max H. Mitchell
|
|
|
Max H. Mitchell
|
|
|
President and Chief Executive Officer
|
|
|
|
Date
|
By
|
/s/ Richard A. Maue
|
November 2, 2018
|
|
Richard A. Maue
|
|
|
Vice President, Finance and
|
|
|
Chief Financial Officer
|
1 Year Crane Chart |
1 Month Crane Chart |
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