EX-99.2 4 dex992.htm CRANE CO. QUARTERLY FINANCIAL DATA SUPPLEMENT CRANE CO. QUARTERLY FINANCIAL DATA SUPPLEMENT

Exhibit 99.2

 

CRANE CO.

Income Statement Data

(in thousands, except per share data)

 

     Three Months Ended
September 30,
     Nine Months Ended
September 30,
  
     2003
     2002
     2003
     2002
  

Net Sales:

                                 

Aerospace & Electronics

    $ 110,778     $ 83,676     $ 302,224     $ 255,317  

Engineered Materials

      64,317       67,654       185,481       181,992  

Merchandising Systems

      40,396       39,828       117,872       124,026  

Fluid Handling

      194,101       178,637       555,381       539,015  

Controls

      15,766       16,227       46,991       48,868  

Intersegment Elimination

      (67 )     (41 )     (215 )     (80 )
    
 
 
 

Total Net Sales

    $ 425,291     $ 385,981     $ 1,207,734     $ 1,149,138  
    
 
 
 

Operating Profit:

                                 

Aerospace & Electronics

    $ 22,655     $ 15,442 *   $ 62,804     $ 51,466 *

Engineered Materials

      13,295       13,469       37,933       36,427  

Merchandising Systems

      2,064       1,015       1,269       7,422  

Fluid Handling

      11,444       13,713       32,566       39,811  

Controls

      1,136       1,321       2,519       3,364  

Corporate

      (5,824 )     (13,021 )*     (21,232 )     (26,439 )*
    
 
 
 

Total Operating Profit

      44,770       31,939       115,859       112,051  

Interest Income

      226       1,306       725       1,915  

Interest Expense

      (4,916 )     (4,229 )     (13,000 )     (12,873 )

Miscellaneous—Net

      (212 )     39       (1,210 )     (1,333 )
    
 
 
 

Income Before Income Taxes

      39,868       29,055       102,374       99,760  

Provision for Income Taxes

      11,734       8,578       31,736       31,923  
    
 
 
 

Income Before Cumulative Effect of a Change in Accounting Principle

      28,134       20,477       70,638       67,837  

Cumulative Effect of a Change in Accounting Principle

      —         —         —         (28,076 )
    
 
 
 

Net Income

    $ 28,134     $ 20,477     $ 70,638     $ 39,761  
    
 
 
 

Depreciation and Amortization

    $ 13,485     $ 12,632     $ 38,697     $ 37,006  

Per Diluted Share Data:

                                 

Income Before Cumulative Effect of a Change in Accounting Principle

    $ 0.47     $ 0.34     $ 1.19     $ 1.13  

Cumulative Effect of a Change in Accounting Principle

      —                 —         (0.47 )
    
 
 
 

Net Income

    $ 0.47     $ 0.34     $ 1.19     $ 0.66  
    
 
 
 

Average Diluted Shares Outstanding

      59,723       60,070       59,542       60,187  

Average Basic Shares Outstanding

      59,305       59,815       59,338       59,798  

 

* Amounts in 2002 include charges at the Company’s aerospace business for fuel pump inspections and corporate charges related to costs of environmental remediation and asbestos claims.

CRANE CO.

Condensed Balance Sheets

(in thousands)

 

     September 30,
2003
    December 31,
2002

ASSETS

              

Current Assets

              

Cash and Cash Equivalents

    $ 70,454    $ 36,589

Accounts Receivable

      261,135      213,850

Inventories

      242,071      214,689

Other Current Assets

      55,378      44,349
    
  

Total Current Assets

      629,038      509,477

Property, Plant and Equipment

      302,415      273,248

Other Assets

      235,059      220,615

Goodwill

      515,748      410,356
    
  

Total Assets

    $ 1,682,260    $ 1,413,696
    
  

LIABILITIES AND SHAREHOLDERS’ EQUITY

              

Current Liabilities

              

Current Maturities of Long-Term Debt

    $ 100,606    $ 400

Loans Payable

      241      48,153

Accounts Payable

      110,805      91,072

Accrued Liabilities

      150,647      125,859

Income Taxes

      30,548      22,941
    
  

Total Current Liabilities

      392,847      288,425

Long-Term Debt

      296,309      205,318

Deferred Income Taxes

      9,130      8,972

Postretirement, Pension and Other Liabilities

      256,350      261,919

Common Shareholders’ Equity

      727,624      649,062
    
  

Total Liabilities and Shareholders’ Equity

    $ 1,682,260    $ 1,413,696
    
  

CRANE CO.

Condensed Statements of Cash Flows

(in thousands)

 

     Three Months Ended
September 30,
    

Nine Months Ended

September 30,

  
     2003
     2002
     2003
     2002
  

Operating Activities:

                                 

Net income

    $ 28,134     $ 20,476     $ 70,638     $ 39,761  

Cumulative effect of a change in accounting principle

      —                 —         28,076  
    
 
 
 

Income before accounting change

      28,134       20,476       70,638       67,837  

Income from joint venture

      (783 )     (1,058 )     (2,318 )     (1,007 )

Depreciation and amortization

      13,485       12,632       38,697       37,006  

Cash provided by (used for) operating working capital

      402       26,942       (9,328 )     43,892  

Other

      (3,383 )     (5,903 )     (6,256 )     (9,539 )
    
 
 
 

Total Provided from Operating Activities

      37,855       53,089       91,433       138,189  
    
 
 
 

Investing Activities:

                                 

Capital expenditures

      (7,383 )     (5,984 )     (20,473 )     (18,361 )

Proceeds from disposition of capital assets

      2,765       539       3,676       4,543  

Payments for acquisitions, net

      —         (7,405 )     (168,818 )     (49,862 )

Proceeds from divestitures

      —         2,705       1,600       2,705  
    
 
 
 

Total Used for Investing Activities

      (4,618 )     (10,145 )     (184,015 )     (60,975 )
    
 
 
 

Financing Activities:

                                 

Dividends paid

      (5,930 )     (5,982 )     (17,804 )     (17,947 )

Settlement of treasury shares acquired on the open market

      —         (195 )     (6,641 )     (195 )

Stock options exercised—net of shares reacquired

      1,019       100       1,566       1,087  

Issuance (repayment) of debt, net

      9,575       (25,753 )     147,287       (49,807 )
    
 
 
 

Total Provided from (Used for) Financing Activities

      4,664       (31,830 )     124,408       (66,862 )
    
 
 
 

Effect of exchange rate on cash and cash equivalents

      495       226       2,039       1,711  
    
 
 
 

Increase in cash and cash equivalents

      38,396       11,340       33,865       12,063  

Cash and cash equivalents at beginning of period

      32,058       21,886       36,589       21,163  
    
 
 
 

Cash and cash equivalents at end of period

    $ 70,454     $ 33,226     $ 70,454     $ 33,226  
    
 
 
 

CRANE CO.

Order Backlog

(in thousands)

 

     September 30,
2003
    June 30,
2003
    March 31,
2003
    December 31,
2002
    September 30,
2002

Aerospace & Electronics

    $ 286,539    $ 304,975    $ 224,513    $ 217,598    $ 204,405

Engineered Materials

      10,927      11,071      9,828      11,153      19,064

Merchandising Systems

      10,399      11,827      10,543      12,932      14,730

Fluid Handling

      139,179      140,657      138,134      130,195      137,406

Controls

      12,496      13,481      14,736      13,784      16,581
    
  
  
  
  

Total Backlog

    $ 459,540    $ 482,011    $ 397,754    $ 385,662    $ 392,186
    
  
  
  
  

CRANE CO.

Non-GAAP Financial Measures

(in thousands)

 

     Three Months Ended
September 30,
    

Nine Months Ended

September 30,

     

Estimated

2003

     

Estimated

2004

  
     2003
     2002
     2003
     2002
        

Free Cash Flow

                                                            

Cash from Operating Activities

    $ 37,855     $ 53,089     $ 91,433     $ 138,189      $ 159,000      $ 163,000      $ 179,000  

Less: Capital Expenditures

      (7,383 )     (5,984 )     (20,473 )     (18,361 )      (30,000 )      (29,000 )      (35,000 )

Dividends

      (5,930 )     (5,982 )     (17,804 )     (17,947 )      (24,000 )      (24,000 )      (24,000 )
    
 
 
 
  
  
  

Free Cash Flow

    $ 24,542     $ 41,123     $ 53,156     $ 101,881      $ 105,000      $ 110,000      $ 120,000  
    
 
 
 
  
  
  

 

Free cash flow is considered a measure of cash generation and should be considered in addition to, but not as a substitute for, other measures of financial performance reported in accordance with generally accepted accounting principles and may be inconsistent with similar measures presented by other companies.

 

This measurement provides supplemental information to assist management and certain investors in analyzing Company performance.