Crane Co., a diversified manufacturer of highly engineered industrial products, has seen a 377 per cent increase in operating profit for the three months to June 30 2021, with year-over-year sales growth of 19 per cent and core year-over-year order growth of 45 per cent.
Max Mitchell, Crane Co. President and Chief Executive Officer stated: “We delivered another quarter of exceptionally strong results with record adjusted operating margins of 17.6% and record adjusted EPS. All three of our strategic growth platforms continue to perform extremely well, and we continue to see strengthening underlying trends in our primary end markets as reflected in our core year-over-year order growth of 45% and core year-over-year backlog growth of seven per cent.”
“Considering our strong performance in the second quarter and our outlook for the balance of the year, we are raising our adjusted EPS from continuing operations guidance by $0.30 to a range of $5.95-$6.15 reflecting an approximate 70 per cent year-over-year increase. The midpoint of our guidance range is also above our prior-peak 2019 total adjusted EPS of $6.02 despite Engineered Materials’ current classification as discontinued operations, and with the majority of our end markets in the very early stages of recovery and still well below pre-COVID levels. We are also continuing our substantial investments in technology and strategic growth initiatives positioning us for continued outgrowth through the post-COVID recovery, and we expect strong operating leverage given our consistently solid execution. I am confident that we remain on a path to generate substantial and sustainable value for all of our stakeholders by continuing to drive above-market growth, paired with ongoing active portfolio management.”
Second quarter 2021 GAAP earnings from continuing operations per diluted share (EPS) of $1.87, compared to $0.23 in the second quarter of 2020. Excluding Special Items, second quarter 2021 EPS from continuing operations was $1.83, compared to $0.60 in the second quarter of 2020. Both GAAP and Adjusted EPS from continuing operations in the second quarter of 2021 included an excess tax benefit of approximately $4m, or $0.07 per share, related to stock options exercised during the quarter. (Please see the attached Non-GAAP Financial Measures tables for a detailed reconciliation of reported results to adjusted measures.)
Second quarter 2021 sales were $796m, an increase of 24 per cent compared to the second quarter of 2020. The sales increase was comprised of a $120m, or 19 per cent, increase in core sales, and a $32m, or five per cent, benefit from favorable foreign exchange.
Second quarter 2021 operating profit was $137m, compared to $29m in the second quarter of 2020. Operating profit margin was 17.2 per cent, compared to 4.5 per cent last year, with the improvement driven primarily by higher volumes as well as benefits from 2020 cost actions and the non-recurrence of repositioning charges. Excluding Special Items, second quarter 2021 operating profit was $140 million, compared to $58m last year. Excluding Special Items, operating profit margin was a record 17.6 per cent, compared to nine per cent last year.