Crane Co, a provider of products and services to sectors including cash handling in the casino industry, posted a second-quarter net profit of US$280.5 million, up 102.8 percent from a year earlier. Such profit was up 167.1 percent quarter-on-quarter, according to a Monday press release.
Earnings per diluted share were US$4.93 in the three months to June 30, compared to US$2.33 a share in the prior-year period. The company said the increase in the latest reporting period included an after-tax gain of US$204 million, or US$3.58 per share, on the May sale of the Crane Supply unit of the group.
Crane’s second-quarter net sales amounted to US$864.3 million, compared to US$855.5 million in the prior-year period.
The firm said the increase in sales “was comprised of a US$60 million, or 7 percent, increase in core sales, partially offset by a US$30 million, or 4 percent, impact from unfavourable foreign exchange, and a US$22 million, or 3 percent, divestiture impact.”
Second-quarter 2022 operating profit was US$124.4 million, compared to US$144.5 million in the second quarter of 2021. Operating profit margin was 16.8 percent, compared to 17.3 percent in the same quarter last year, “due to unfavourable mix and lower volume, largely offset by strong productivity and pricing.”
The company announced on Monday a regular quarterly dividend of US$0.47 per share for the third quarter of 2022.
In payment and merchandising technologies, including services for casino operators, Crane saw second-quarter net sales rise 1.8 percent year-on-year, to US$334.0 million. Operating profit in the segment grew by 3.6 percent from a year earlier, to US$80.7 million.
Max Mitchell, the group’s president and chief executive, noted in prepared remarks issued with the results on Monday: “Our momentum continues with another quarter of strong results reflecting differentiated execution despite a challenging operational environment as well as solid underlying trends in our primary end markets.”
The group is involved in payment and merchandising technologies; aerospace and electronics; and engineered materials and fluid handling services.
In March, Crane announced a plan to split into two independent companies. Under it, Crane Co would cover the aerospace and electronics segment, the process flow technologies business, and the engineered materials business. An entity called Crane NXT would take on the payment and merchandising technologies business.
In Monday’s statement, Mr Mitchell was cited as saying: “In addition to delivering consistently strong operational performance, our businesses and portfolio are positioned to support accelerating growth.”
He added: “We are also making continued progress towards our early 2023 separation which will permit each post-separation company to optimise investment and capital allocation, further accelerate growth, and unlock shareholder value.”
