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

December 31,

    

Year Ended

December 31,

  
     2003
     2002
     2003
     2002
  

Net Sales:

                                 

Aerospace & Electronics

    $ 126,903     $ 85,444     $ 429,128     $ 340,762  

Engineered Materials

      54,739       51,188       240,220       233,180  

Merchandising Systems

      37,417       37,894       155,289       161,920  

Fluid Handling

      192,878       176,814       748,259       715,829  

Controls

      16,385       15,891       63,377       64,759  

Intersegment Elimination

      (65 )     (23 )     (282 )     (103 )
    
 
 
 

Total Net Sales

    $ 428,257     $ 367,208     $ 1,635,991     $ 1,516,347  
    
 
 
 

Operating Profit:

                                 

Aerospace & Electronics

    $ 33,350     $ 19,232     $ 96,155     $ 70,698  

Engineered Materials

      10,203       7,939       48,136       44,366  

Merchandising Systems

      1,497       (236 )     2,766       7,186  

Fluid Handling

      10,930       13,876       43,496       53,688  

Controls

      2,022       1,451       4,541       4,815  

Corporate

      (4,849 )     (114,643 )     (26,082 )     (141,082 )
    
 
 
 

Total Operating Profit (Loss)

      53,153       (72,381 )     169,012       39,671  

Interest Income

      462       370       1,186       2,285  

Interest Expense

      (7,010 )     (4,026 )     (20,010 )     (16,900 )

Miscellaneous—Net

      2,186       730       976       (603 )
    
 
 
 

Income (Loss) Before Income Taxes

      48,791       (75,307 )     151,164       24,453  

Provision (Benefit) for Income Taxes

      15,125       (24,098 )     46,861       7,825  
    
 
 
 

Income (Loss) Before Cumulative Effect of a Change in Accounting Principle

      33,666       (51,209 )     104,303       16,628  

Cumulative Effect of a Change in Accounting Principle

      —         —         —         (28,076 )
    
 
 
 

Net Income (Loss)

    $ 33,666     $ (51,209 )   $ 104,303     $ (11,448 )
    
 
 
 

Depreciation and Amortization

    $ 15,328     $ 12,784     $ 54,025     $ 49,790  

Per Diluted Share Data:

                                 

Income (Loss) Before Cumulative Effect of a Change in Accounting Principle

    $ 0.56       (0.86 )   $ 1.75     $ 0.28  

Cumulative Effect of a Change in Accounting Principle

      —                 —         (0.47 )
    
 
 
 

Net Income (Loss)

    $ 0.56     $ (0.86 )   $ 1.75     $ (0.19 )
    
 
 
 

Average Diluted Shares Outstanding

      60,177       59,662       59,716       60,046  

Average Basic Shares Outstanding

      59,517       59,573       59,394       59,728  

CRANE CO.

Condensed Balance Sheets

(in thousands)

 

    

December 31,

2003

   

December 31,

2002

ASSETS

              

Current Assets

              

Cash and Cash Equivalents

    $ 142,518    $ 36,589

Accounts Receivable

      248,492      213,850

Inventories

      235,431      214,689

Other Current Assets

      35,335      44,349
    
  

Total Current Assets

      661,776      509,477

Property, Plant and Equipment

      302,638      273,248

Other Assets

      311,123      220,615

Goodwill

      536,239      410,356
    
  

Total Assets

    $ 1,811,776    $ 1,413,696
    
  

LIABILITIES AND SHAREHOLDERS’ EQUITY

              

Current Liabilities

              

Current Maturities of Long-Term Debt

    $ 100,275    $ 400

Loans Payable

      —        48,153

Accounts Payable

      116,885      91,072

Accrued Liabilities

      171,438      125,859

Income Taxes

      29,976      22,941
    
  

Total Current Liabilities

      418,574      288,425

Long-Term Debt

      295,861      205,318

Deferred Income Taxes

      57,738      8,972

Postretirement, Pension and Other Liabilities

      253,352      261,919

Common Shareholders’ Equity

      786,251      649,062
    
  

Total Liabilities and Shareholders’ Equity

    $ 1,811,776    $ 1,413,696
    
  

CRANE CO.

Condensed Statements of Cash Flows

(in thousands)

 

    

Three Months Ended

December 31,

    

Year Ended

December 31,

  
     2003
     2002
     2003
     2002
  

Operating Activities:

                                 

Net income (loss)

    $ 33,666     $ (51,209 )   $ 104,303     $ (11,448 )

Cumulative effect of a change in accounting principle

      —                 —         28,076  
    
 
 
 

Income before accounting change

      33,666       (51,209 )     104,303       16,628  

Income from joint venture

      (779 )     (1,910 )     (3,097 )     (2,917 )

Depreciation and amortization

      15,328       12,784       54,025       49,790  

Asbestos charges—net of tax

      —         73,345       —         78,394  

Cash provided by operating working capital

      25,932       14,387       16,604       58,279  

Other

      (2,852 )     11,855       (9,107 )     (2,733 )
    
 
 
 

Total Provided from Operating Activities

      71,295       59,252       162,728       197,441  
    
 
 
 

Investing Activities:

                                 

Capital expenditures

      (7,655 )     (7,135 )     (28,128 )     (25,496 )

Proceeds from disposition of capital assets

      2,191       1,085       5,867       5,628  

Payments for acquisitions, net

      —         (32,363 )     (168,818 )     (82,225 )

Proceeds from divestitures

      —         —         1,600       2,705  
    
 
 
 

Total Used for Investing Activities

      (5,464 )     (38,413 )     (189,479 )     (99,388 )
    
 
 
 

Financing Activities:

                                 

Dividends paid

      (5,964 )     (5,949 )     (23,768 )     (23,896 )

Settlement of treasury shares acquired on the open market

      —         (6,280 )     (6,641 )     (6,475 )

Stock options exercised—net of shares reacquired

      4,687       —         6,253       1,087  

Issuance (repayment) of debt, net

      2,431       (8,730 )     149,718       (58,537 )
    
 
 
 

Total Provided from (Used for) Financing Activities

      1,154       (20,959 )     125,562       (87,821 )
    
 
 
 

Effect of exchange rate on cash and cash equivalents

      5,079       3,483       7,118       5,194  
    
 
 
 

Increase in cash and cash equivalents

      72,064       3,363       105,929       15,426  

Cash and cash equivalents at beginning of period and year

      70,454       33,226       36,589       21,163  
    
 
 
 

Cash and cash equivalents at end of period and year

    $ 142,518     $ 36,589     $ 142,518     $ 36,589  
    
 
 
 

CRANE CO.

Order Backlog

(in thousands)

 

    

December 31,

2003

   

September 30,

2003

   

June 30,

2003

   

March 31,

2003

   

December 31,

2002

Aerospace & Electronics

    $ 277,173    $ 286,539    $ 304,975    $ 224,513    $ 217,598

Engineered Materials

      11,787      10,927      11,071      9,828      11,153

Merchandising Systems

      10,330      10,399      11,827      10,543      12,932

Fluid Handling

      140,192      139,179      140,657      138,134      130,195

Controls

      12,169      12,496      13,481      14,736      13,784
    
  
  
  
  

Total Backlog

    $ 451,651    $ 459,540    $ 482,011    $ 397,754    $ 385,662
    
  
  
  
  

CRANE CO.

Non-GAAP Financial Measures

(in thousands)

 

    

Three Months Ended

December 31,

    

Year Ended

December 31,

  
     2003
     2002
     2003
     2002
     2004
  
                             (Estimated)  

Operating profit (loss)

    $ 53,153     $ (72,381 )   $ 169,012     $ 39,671          

Asbestos charges—pre-tax

      —         107,860       —         115,285          
    
 
 
 
       

Operating profit before asbestos charges

    $ 53,153     $ 35,479     $ 169,012     $ 154,956          
    
 
 
 
       

Net income (loss)

    $ 33,666     $ (51,209 )   $ 104,303     $ (11,448 )        

Asbestos charges—net of tax

      —         73,346       —         78,394          

Goodwill amortization—net of tax

      —         —         —         28,076          
    
 
 
 
       

Net income before asbestos charges and the cumulative effect of a change in accounting principle related to goodwill

    $ 33,666     $ 22,137     $ 104,303     $ 95,022          
    
 
 
 
       

Earnings (loss) per share

    $ 0.56     $ (0.86 )   $ 1.75     $ (0.19 )        

Asbestos charges—net of tax

      —         1.23       —         1.31          

Goodwill amortization—net of tax

      —         —         —         0.47          
    
 
 
 
       

Earnings per share before asbestos charges and the cumulative effect of a change in accounting principle related to goodwill

    $ 0.56     $ 0.37     $ 1.75     $ 1.59          
    
 
 
 
       

Cash provided from operating activities

    $ 71,295     $ 59,252     $ 162,728     $ 197,441     $ 179,000  

Less:  Capital expenditures

      (7,655 )     (7,135 )     (28,128 )     (25,496 )     (35,000 )

 Dividends

      (5,964 )     (5,949 )     (23,768 )     (23,896 )     (24,000 )
    
 
 
 
 

Free cash flow

    $ 57,676     $ 46,168     $ 110,832     $ 148,049     $ 120,000  
    
 
 
 
 

 

The measures calculated before asbestos charges and the cumulative effect of a change in accounting principle related to goodwill are provided to facilitate the comparison to the current year.

 

Free cash flow provides supplemental information to assist management and certain investors in analyzing the Company’s ability to generate positive cash flow.

 

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 reported in accordance with generally accepted accounting principles and may be inconsistent with similar measures presented by other companies.