FORM 10-Q
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
QUARTERLY REPORT UNDER SECTION 13 OR 15 (d)
OF THE SECURITIES EXCHANGE ACT OF 1934
For the Quarterly Period Ended June 30, 1999
Commission File Number 1-1657
CRANE CO.
(Exact name of registrant as specified in its charter)
Delaware 13-1952290
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification No.)
100 First Stamford Place, Stamford, CT. 06902
(Address of principal executive office) (Zip Code)
(203) 363-7300
(Registrant's telephone number, including area code)
(Not Applicable)
(Former name, former address and former fiscal year,
if changed since last report)
Indicate by check mark whether the registrant (1) has filed all reports
required to be filed by Section 13 or 15 (d) of the Securities Exchange Act
of 1934 during the preceding 12 months (or for such shorter period that the
registrant was required to file such reports), and (2) has been subject to
such filing requirements for the past 90 days.
Yes X No
The number of shares outstanding of the issuer's classes of common stock, as
of July 31, 1999:
Common stock, $1.00 Par Value - 67,667,900 shares
<PAGE>
Part I - Financial Information
Item 1. Financial Statements
<TABLE>
Crane Co. and Subsidiaries
Consolidated Statements of Income
(In Thousands, Except Per Share Amounts)
(Unaudited)
<CAPTION>
Three Months Ended Six Months Ended
June 30, June 30,
1999 1998 1999 1998
<S> <C> <C> <C> <C>
Net Sales $611,247 $563,399 $1,186,069 $1,090,217
Operating Costs and Expenses:
Cost of sales 443,305 403,838 856,943 783,828
Selling, general and
Administrative 84,580 83,054 172,643 163,227
Depreciation and amortization 18,012 14,238 34,292 28,519
545,897 501,130 1,063,878 975,574
Operating Profit 65,350 62,269 122,191 114,643
Other Income (Expense):
Interest income 855 831 2,224 1,375
Interest expense (7,415) (6,334) (15,337) (12,274)
Miscellaneous - net 2,157 (136) 4,064 (214)
(4,403) (5,639) (9,049) (11,113)
Income Before Taxes 60,947 56,630 113,142 103,530
Provision for Income Taxes 21,636 20,073 40,165 37,074
Net Income $ 39,311 $ 36,557 $ 72,977 $ 66,456
Net Income Per Share:
Basic $.58 $.53 $1.07 $.97
Diluted .57 .53 1.06 .96
Average Basic Shares Outstanding 67,890 68,466 68,090 68,469
Average Diluted Shares 68,511 69,398 68,702 69,432
Outstanding
Dividends Per Share $.10 $.08 $.20 $.17
See Notes to Consolidated Financial Statements
</TABLE>
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<PAGE>
<TABLE>
Part I - Financial Information
Item 1. Financial Statements
Crane Co. and Subsidiaries
Consolidated Balance Sheets
(In Thousands, Except Share and Per Share Amounts)
(Unaudited)
<CAPTION>
June 30, December 31,
1999 1998 1998
Assets
<S> <C> <C> <C>
Current Assets
Cash and cash equivalents $ 7,548 $ 49,921 $ 15,909
Accounts receivable 324,042 296,208 303,245
Inventories:
Finished goods 157,524 121,442 146,898
Finished parts and subassemblies 58,377 51,577 58,644
Work in process 33,630 48,157 38,743
Raw materials 73,859 81,679 86,059
323,390 302,855 330,344
Other Current Assets 45,487 36,087 49,468
Total Current Assets 700,467 685,071 698,966
Property, Plant and Equipment:
Cost 642,317 605,310 645,383
Less accumulated depreciation 344,274 324,458 337,816
298,043 280,852 307,567
Other Assets 30,423 30,452 32,964
Intangibles 48,523 49,911 50,073
Cost in excess of net assets
acquired 353,413 223,262 365,104
$1,430,869 $1,269,548 $1,454,674
See Notes to Consolidated Financial Statements
</TABLE>
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<PAGE>
<TABLE>
Part I - Financial Information
Item 1. Financial Statements
Crane Co. and Subsidiaries
Consolidated Balance Sheets
(In Thousands, Except Share and Per Share Amounts)
(Unaudited)
<CAPTION>
June 30, December 31,
1999 1998 1998
Liabilities and Shareholders Equity
<S> <C> <C> <C>
Current Liabilities
Current maturities of long-term debt $ 727 $ 861 $ 787
Loans payable 39,385 17,357 50,401
Accounts payable 143,535 138,575 132,376
Accrued liabilities 130,876 129,061 148,938
U.S. and foreign taxes on income 21,453 16,477 18,660
Total Current Liabilities 335,976 302,331 351,162
Long-Term Debt 318,785 287,301 359,090
Deferred Income Taxes 27,864 22,569 26,184
Other Liabilities 20,446 25,608 28,235
Accrued Postretirement Benefits 39,738 40,841 40,814
Accrued Pension Liability 3,355 6,432 5,955
Preferred Shares, par value $.01 - - -
5,000,000 shares authorized
Common Shareholders Equity:
Common stock, par value $1.00 72,426 72,426 72,426
200,000,000 shares authorized,
72,426,139 shares issued
Capital surplus 96,262 89,624 96,262
Retained earnings 634,816 513,891 574,797
Accumulated other comprehensive income (22,237) (20,841) (18,036)
(loss)
Common stock held in treasury (96,562) (70,634) (82,215)
Total Common Shareholders Equity 684,705 584,466 643,234
$1,430,869 $1,269,548 $1,454,674
Common Stock Issued 72,426,139 72,426,139 72,426,139
Less Common Stock held in Treasury (4,512,827) (3,895,311) (3,930,245)
Common Stock Outstanding 67,913,312 68,530,828 68,495,894
See Notes to Consolidated Financial Statements
</TABLE>
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<PAGE>
<TABLE>
Part I - Financial Information (Cont'd.)
Item 1. Financial Statements
Crane Co. and Subsidiaries
Consolidated Statements of Cash Flows
(In Thousands)
(Unaudited)
<CAPTION>
Six Months Ended
June 30,
1999 1998
<S> <C> <C>
Cash flows from Operating activities:
Net income $ 72,977 $ 66,456
Depreciation 20,352 18,796
Amortization 13,940 9,723
Deferred income taxes 2,856 (60)
Cash used for operating working capital (21,867) (15,913)
Other (8,008) (1,346)
Total provided by operating activities 80,250 77,656
Cash flows used for Investing activities:
Capital expenditures (18,348) (22,877)
Purchase of equity investment (2,029) -
Sale of equity investment 5,361 -
Payments for acquisitions (2,000) (17,640)
Proceeds from disposition of capital assets 8,421 5,100
Total used for investing activities (8,595) (35,417)
Cash flows (used for) provided by Financing
activities:
Equity:
Dividends paid (13,595) (11,423)
Reacquisition of shares-open market (20,433) (2,784)
Reacquisition of shares-stock incentive programs (745) (1,100)
Stock options exercised 5,417 2,764
Net equity (29,356) (12,543)
Debt:
Proceeds from issuance of long-term debt 115,000 22,580
Repayments of long-term debt (150,801) (1,030)
Net decrease in short-term debt (14,411) (8,112)
Net debt (50,212) 13,438
Total (used for) provided by financing activities (79,568) 895
Effect of exchange rate on cash and cash equivalents (448) (195)
Increase (decrease) in cash and cash equivalents (8,361) 42,939
Cash and cash equivalents at beginning of period 15,909 6,982
Cash and cash equivalents at end of period $ 7,548 $ 49,921
Detail of Cash Provided by (Used for) Operating
Activities
Working capital:
Accounts receivable $(22,497) $(21,479)
Inventories 6,534 (9,500)
Other current assets 3,551 (1,548)
Accounts payable 12,180 14,839
Accrued liabilities (24,604) (1,553)
U.S. and foreign taxes on income 2,969 3,328
Total $(21,867) $(15,913)
Supplemental disclosure of cash flow information:
Interest paid $16,702 $11,864
Income taxes paid 32,652 30,202
See Notes to Consolidated Financial Statements
</TABLE>
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<PAGE>
Part I - Financial Information (Cont'd.)
Notes to Consolidated Financial Statements (Unaudited)
<TABLE>
1. The accompanying unaudited consolidated financial statements have been
prepared in accordance with the instructions to Form 10-Q and, therefore
reflect all adjustments which are, in the opinion of management,
necessary for a fair statement of the results for the interim period
presented. Certain prior year amounts have been reclassified to conform
to the 1999 presentation.
These interim consolidated financial statements should be read in
conjunction with the Consolidated Financial Statements and Notes to
Consolidated Financial Statements in the company's Annual Report on
Form 10-K for the year ended December 31, 1998.
2. Sales and operating profit by segment are as follows:
<CAPTION>
Three Months Ended Six Months Ended
June 30, June 30,
1999 1998 1999 1998
<S> <C> <C> <C> <C>
(In thousands)
Net Sales:
Fluid Handling $103,314 $113,056 $ 208,614 $ 231,098
Aerospace 95,795 100,447 192,875 194,952
Engineered Materials 94,383 64,132 185,444 125,381
Crane Controls 30,986 35,218 61,146 70,220
Merchandising Systems 50,662 49,829 100,947 96,013
Wholesale Distribution 236,047 200,882 436,108 373,330
Other 3,125 3,670 6,520 6,876
Intersegment (3,065) (3,835) (5,586) (7,653)
Elimination
Total $611,247 $563,399 $1,186,068 $1,090,217
Operating Profit
(Loss):
Fluid Handling $ 2,489 $ 6,771 $ 6,334 $ 15,723
Aerospace 27,677 31,261 54,920 56,532
Engineered Materials 16,633 9,694 31,291 17,245
Crane Controls 1,227 2,995 1,811 5,977
Merchandising Systems 11,274 9,675 20,780 18,411
Wholesale Distribution 9,832 7,701 15,572 12,129
Other (134) 157 (279) (226)
Corporate (3,584) (5,936) (8,137) (11,136)
Intersegment (64) (49) (101) (12)
Elimination
Total $65,350 $62,269 $122,191 $114,643
</TABLE>
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<PAGE>
Part I - Financial Information (Cont'd.)
Notes to Consolidated Financial Statements (Unaudited)
3. Inventories
Inventories are stated at the lower of cost or market, principally on the
last-in, first-out (LIFO) method of inventory valuation. Replacement
cost would be higher by $42.5 million at June 30, 1999, $48.0 million at
June 30, 1998, and $42.8 million at December 31, 1998.
4. Intangibles
Intangible assets are amortized on a straight-line basis over their
estimated useful lives, which range form five to twenty years.
Accumulated amortization was $23.8 million at June 30, 1999, $20.5
million at June 30, 1998 and $21.8 million at December 31, 1998
5. Cost in Excess of Net Assets Acquired
Cost in excess of net assets acquired is amortized on a straight-line
basis principally over 15 to 40 years. Accumulated amortization was
$60.0 million at June 30, 1999, $42.1 million at June 30, 1998 and $50.9
million at December 31, 1998.
6. Total comprehensive income for the three and six-month periods ended June
30, 1999 and 1998 was as follows:
<TABLE>
<CAPTION>
(In thousands) Three Months Ended Six Months Ended
June 30, June 30,
1999 1998 1999 1998
<S> <C> <C> <C> <C>
Net Income $39,311 $36,557 $72,977 $66,456
Other comprehensive income, net of
tax
Foreign currency translation
adjustments (411) (4,399) (4,201) (4,291)
Comprehensive Income $38,900 $32,158 $68,776 $62,165
</TABLE>
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<PAGE>
Part I - Financial Information (Cont'd)
Item 2. Management's Discussion and Analysis of Financial Condition
and Results of Operations
Three Months Ended June 30, 1999
This 10Q 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 10Q, 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, 1998 filed
with the Securities and Exchange Commission
Results from Operations
Second Quarter of 1999 Compared to Second Quarter of 1998
Net income for the quarter ended June 30, 1999 set a second quarter record,
rising 8% to $39.3 million, or $.57 per diluted share outstanding, from the
$36.6 million or $.53 per diluted share outstanding reported for the 1998 second
quarter. Operating profit for the second quarter increased 5% to $65.4 million
on a sales increase of 9% to $611.2 million. Operating margins for the quarter
were 10.7% of sales compared to 11.1% in 1998. Cash flow (net income plus
depreciation and amortization) per diluted share outstanding increased 14% for
the quarter to $.83.
Engineered Materials sales increased by 47%, or $30.3 million, to $94.4 million
and operating profit increased 72% to $16.6 million, versus the second quarter
of 1998 with the Sequentia and Plastic-Lined Piping Products acquisitions
contributing to these increases. Kemlite's transportation, recreational vehicle
and building products markets continued their strong growth, with sales up 13%
and operating profit up 56% over 1998. Operating profit margins increased to
17.6% of sales compared to 15.1% in 1998 as margins improved at Kemlite and
Resistoflex. Order backlog decreased $3.3 million from June 30,1998, to $24.0
million at June 30, 1999.
Merchandising Systems sales increased 2%, from $49.8 million to $50.7 million,
and operating profit increased 17%, from $9.7 million to $11.3 million,
respectively. Driven by high demand for its new Euro-capable coin validators and
four tube coin changer, NRI posted a 13% increase in sales and, combined with
lower costs, a 31% increase in operating profit. National Vendors sales were at
last year's level and operating profit increased by 10% versus the prior year's
quarter. Operating margins increased to 22.3% of sales compared to 19.4% in
1998. Order backlog increased $2.2 million over last year, to $21.4 million.
Wholesale Distribution sales increased $35.2 million, or 18%, to $236.0 million
and operating profit increased $2.1 million, or 28%, to $9.8 million. Huttig's
sales were up 19%, to $206.0 million, and operating profit was up 40%, to $7.8
million. The acquisitions of Number One Supply and Consolidated Lumber in 1998
contributed to the improved results. Crane Supply's sales and operating profit
increased 7% and 9%, respectively. Operating profit margins improved to 4.2% of
sales compared to 3.8% in 1998 with both Huttig and Crane Supply improving.
-8-
<PAGE>
Part I - Financial Information (Cont'd)
Item 2. Management's Discussion and Analysis of Financial Condition
and Results of Operations
Three Months Ended June 30, 1999
Aerospace sales decreased 5%, or $4.7 million, to $95.8 million in the quarter
with all businesses except Lear Romec being negatively impacted by slowing
aerospace markets. Operating profit decreased 11%, or $3.6 million, to $27.7
million, with Hydro-Aire and ELDEC results being affected by lower sales volumes
in the commercial, after-market and government markets. During the quarter
Hydro-Aire was selected to supply the brake control systems for the Bombardier
BD90 and BD100 programs. Operating margins were 28.9% of sales, compared to
31.1% in the second quarter of 1998. Order backlog decreased $57.1 million to
$250.9 million at June 30, 1999, versus $308.0 million at June 30, 1998.
Fluid Handling sales declined 9%, or $9.7 million, to $103.3 million. Operating
profit decreased 63% to $2.5 million. These declines were due to a 28% decline
in Commercial bronze and iron valve shipments and a 19% decline in Cast Steel
valve shipments and included $1.2 million in legal and severance costs.
Commercial Valve's results were caused by a lack of orders related to past
supply shortages of shippable bronze valve product in the U.S. and continued
market weakness in the U.K. Cast Steel's results were due to weak demand from
the oil and gas industry. Partially offsetting this, Crane Pumps and Systems
increased sales slightly and had operating profit margins of 11% while Crane
Nuclear and Service Centers achieved higher second quarter operating profit.
Operating profit margins were 2.4% versus 6.0% in 1998. Overall Fluid Handling
order backlog totaled $74.0 million at June 30, 1999, versus $114.5 million for
1998.
Crane Controls sales decreased 12%, or $4.2 million, to $31.0 million and
operating profit declined 59%, or $1.8 million, to $1.2 million. All business
units except Dynalco, which benefited from the Liberty Technologies acquisition
(September 1998), reported lower sales and operating profit as a result of
continued weak demand for their products from the oil and gas, chemical process
and general industrial markets. Operating profit margins declined to 4.0% of
sales from 8.5% in the second quarter of 1998. Order backlog slipped 6%, to
$28.6 million.
During the quarter, the company reduced debt by $41.0 million. Also during the
quarter, the company announced that it is investigating a potential spin-off of
its Huttig Building Products subsidiary as a separate public company.
Net interest expense for the quarter increased 19% due to increased financing
costs for acquisitions made in 1998.
Item 2. Management's Discussion and Analysis of Financial Condition
and Results of Operations
Six Months Ended June 30, 1999
Six Months Ended June 30,1999 Compared to Six Months Ended June 30,1998
For the six months ended June 30, 1999, net income increased 10% to $73.0
million, or $1.06 per diluted share outstanding, from the $66.5 million, or $.96
per diluted share outstanding, in the comparable 1998 period. Operating profit
for the six months increased 7% to $122.2 million on a sales increase of 9% to
$1.2 billion. Cash flow (net income plus depreciation and amortization) per
diluted share increased 14% to $1.56.
-9-
<PAGE>
Part I - Financial Information (Cont'd)
Item 2. Management's Discussion and Analysis of Financial Condition
and Results of Operations
Six Months Ended June 30, 1999
Engineered Materials sales increased by 48%, or $60.1 million, to $185.4 million
and operating profit increased 81% to $31.3 million, versus the same six month
period in 1998 with the Sequentia and Plastic-Lined Piping Products acquisitions
contributing to these increases. Kemlite's transportation, recreational vehicle
and building products markets continued their strong growth, with sales up 14%
and operating profit up 53% over 1998. Operating profit margins increased to
16.9% of sales compared to 13.8% in 1998 as margins improved at Kemlite and
Resistoflex.
Merchandising Systems sales increased 5%, from $96.0 million to $100.9 million,
and operating profit increased 13%, from $18.4 million to $20.8 million,
respectively. Driven by high demand for its new Euro-capable coin validators and
four tube coin changer, NRI posted an 18% increase in sales and, combined with
lower costs, a 38% increase in operating profit. National Vendors sales
increased 3% compared to last year's level and operating profit increased by 2%
as the company continued to invest in new product development. Operating margins
increased to 20.6% of sales compared to 19.2% in 1998.
Wholesale Distribution sales increased $62.8 million, or 17%, to $436.1 million
and operating profit increased $3.4 million, or 28%, to $15.6 million. Huttig's
sales were up 19%, to $380.8 million, and operating profit was up 38%, to $11.9
million. The acquisitions of Number One Supply and Consolidated Lumber in 1998
contributed to the improved results. Crane Supply's sales increased 3% and
operating profit increased 10%, respectively. Operating profit margins improved
to 3.6% of sales compared to 3.2% in 1998 with both Huttig and Crane Supply
improving.
Aerospace sales decreased 1%, or $2.1 million, to $192.9 million during the six-
month period with the segment being negatively impacted by reduced government
and military aerospace sales. Interpoint's sales decreased due to lower
shipments of its medical product line. Operating profit decreased 3%, or $1.6
million, to $54.9 million, due to the lower sales volumes mentioned above.
Operating margins were 28.5% of sales, compared to 29.0% in the same six-month
period of 1998.
Fluid Handling sales declined 10%, or $22.5 million, to $208.6 million.
Operating profit decreased 60% to $6.3 million. These declines were due
continued weak demand at the Commercial Valve, Cast Steel and Quarter Turn
businesses. Also, $1.5 million in legal and severance costs were include in the
six-month period's results. Partially offsetting this, Crane Pumps and Systems
and Cochrane increased sales while Crane Nuclear and Wafer Check achieved higher
second quarter sales and operating profits. Operating profit margins were 3.0%
versus 6.8% in 1998.
Crane Controls sales decreased 13%, or $9.1 million, to $61.1 million and
operating profit declined 70%, or $4.2 million, to $1.8 million. All business
units except Dynalco, which benefited from the Liberty Technologies acquisition
(September 1998), reported lower sales and operating profit as a result of
continued weak demand for their products from the oil and gas, chemical process
and general industrial markets. Operating profit margins declined to 3.0% of
sales from 8.5% compared to 1998.
-10-
<PAGE>
Part I - Financial Information (Cont'd)
Item 2. Management's Discussion and Analysis of Financial Condition
and Results of Operations
Six Months Ended June 30, 1999
Net interest expense for the six months ended June 30, 1999 increased 20%, due
to increased financing costs for acquisitions made in 1998.
The effective tax rate decreased to 35.5% for the six months ended June 30, 1999
as opposed to 35.8% at June 30, 1998.
Liquidity and Capital Resources During the six months of 1999 the company
generated $80.3 million of cash from operating activities, compared to $77.7
million in 1998.
Net debt totaled 33.9% of capital at June 30, 1999 compared to 30.4% in 1998.
The current ratio was 2.1 with working capital totaling $364.5 million at June
30, 1999 compared to 2.3 and $382.7 million at June 30, 1998. The company had
unused credit lines of $366.5 million at June 30, 1999.
Year 2000 Readiness
The Year 2000 issue relates to most computer software programs using two digits,
rather than four, to define the applicable year for dates. Any of the company's
information technology (IT) and non-information technology (non-IT) systems and
its products may recognize a date using "00" as the year 1900, rather than the
year 2000. This could result in system failures or miscalculations, causing
disruptions in operations, including the inability to process transactions and
engage in similar normal business activities within the company and with third
parties.
Crane has implemented a Year 2000 program for its IT and non-IT systems and its
products consisting of four phases: 1) awareness, formation, planning and
management, 2) inventory, analysis, compliance testing, prioritization and
planning, 3) implementation and validation, and 4) Year 2000 compliance. The
company's senior management and Board of Directors receive regular updates on
the status of the company's Year 2000 program.
In addition, the company has contacted significant vendors and customers in
order to determine the risks to the company for a third party's failure to
remediate its own Year 2000 issues. While information obtained from these
contacts will be used to mitigate these risks, there can be no assurance that
any third party systems or products will be Year 2000 compliant on a timely
basis or that non-compliance by such third parties will not have a material
adverse effect on the company.
The company's Year 2000 Program was initiated in 1997. Virtually all
mission-critical systems, including IT and non-IT systems, are in the
implementation phase or are compliant. Non mission-critical systems are in
various phases of completion and an immaterial amount of work on them is
expected to continue into the year 2000. It is expected that virtually all
mission-critical systems will be implemented, tested and validated by September
of 1999.
-11-
<PAGE>
Part I - Financial Information (Cont'd)
Item 2. Management's Discussion and Analysis of Financial Condition
and Results of Operations
Six Months Ended June 30, 1999
Year 2000 costs incurred to date are approximately $25.4 million, of which $9.2
million was expensed and $16.2 million was capitalized. Estimated future costs
to complete the Year 2000 program are $2.8 million, of which $1.7 million will
be expensed as incurred and the remaining $1.1 million will be capitalized.
These costs have been, and will continue to be, funded from normal operating
cash flows of the business. No other information technology projects have been
or are being delayed by this program.
The company believes that completed and planned modifications and conversions of
its software and hardware systems, its products and its efforts to verify the
readiness and compliance of material third parties will allow it to meet its
Year 2000 compliance schedule. However, the success of the Year 2000 compliance
program is based on the availability of a variety of technical experts, expected
successful software modifications being performed by third parties, timely
delivery of new software and hardware systems, and other factors. A deficiency
with respect to any of these factors could cause a failure in the company's Year
2000 program, in whole or in part. The failure to correct a material Year 2000
problem could result in an interruption in, or a failure of, certain normal
business activities or operations, which could have a material adverse effect on
the company's results of operations, liquidity or financial condition. Due to
the inherent uncertainty in the Year 2000 problem, particularly in regard to
third party vendor and customer Year 2000 readiness, the company is unable to
determine at this time whether the consequences of any Year 2000 disruptions or
failures will have a material adverse effect on the company's results of
operations, liquidity or financial condition. However, based on current
information, the most reasonably likely worst case scenario would involve the
temporary disruption of the company's ability to fulfill customer orders and no
material adverse effect on the company's financial condition is expected from
this specific scenario.
Part II - Other Information
Item 1. Legal Proceedings
There have been no material developments in any of the legal
proceedings described in the company's Annual Report on Form 10-K for
the year ended December 31, 1998.
Item 6. Exhibits and Reports on Form 8-K
11. Computation of earnings per share for the quarters March 31,
1999 and 1998.
27. Article 5 of Regulation S-X Financial Data Schedule
for the first quarter.
-12-
<PAGE>
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned, thereunto duly authorized.
CRANE CO.
REGISTRANT
Date August 13, 1999 By /s/ D.S. Smith
D.S. SMITH
Vice President and Chief
Financial Officer
Date August 13, 1999 By /s/ M.L. Raithel
M.L. RAITHEL
Controller
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<PAGE>
<TABLE>
Crane Co. and Subsidiaries
Exhibit 11 to Form 10-Q
Computation of Net Income per Common Share
(In Thousands, Except Per Share Amounts)
<CAPTION>
Three Months Ended Six Months Ended
June 30, June 30,
1999 1998 1999 1998
<S> <C> <C> <C> <C>
Basic Net Income Per Share:
Net Income $39,311 $36,557 $72,977 $66,456
Average Basic Shares 67,890 68,466 68,090 68,469
Outstanding
Basic Net Income Per Share $ .58 $ .53 $1.07 $ .97
Diluted Net Income Per Share:
Net Income $39,311 $36,557 $72,977 $66,456
Average Basic Shares 67,890 68,466 68,090 68,469
Outstanding
Add Diluted Effect of Stock
Options 621 932 612 963
Average Diluted Shares
Outstanding 68,511 69,398 68,702 69,432
Diluted Net Income Per Share $ .57 $ .53 $1.06 $ .96
</TABLE>
-14-
<TABLE> <S> <C>
<ARTICLE> 5
<MULTIPLIER>1,000
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> DEC-31-1999
<PERIOD-END> Jun-30-1999
<CASH> 7,548
<SECURITIES> 0
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<DEPRECIATION> 344,274
<TOTAL-ASSETS> 1,430,869
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<COMMON> 72,426
0
0
<OTHER-SE> 612,279
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<SALES> 1,186,069
<TOTAL-REVENUES> 1,186,069
<CGS> 856,943
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<INCOME-PRETAX> 113,142
<INCOME-TAX> 40,165
<INCOME-CONTINUING> 72,977
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<CHANGES> 0
<NET-INCOME> 72,977
<EPS-BASIC> 1.07
<EPS-DILUTED> 1.06
</TABLE>
