By Denny Jacob
Crane, an industrial products manufacturer, recently released its quarterly financial results, the first since its separation from Crane Holdings in April. While the company’s performance fell short of expectations, there were some notable factors affecting their bottom line.
Lower Earnings and Sales
For the second quarter ended June 30, Crane reported net income attributable to common shareholders of $45.6 million, or 79 cents per share. This is a significant drop from the $258.2 million, or $4.54 per share, earned during the same period last year. Similarly, the company’s sales decreased to $509.6 million from $530.3 million, coming in lower than the anticipated $524.7 million projected by analysts polled by FactSet.
Supply Chain Challenges
Crane’s President and Chief Executive, Max Mitchell, addressed the challenges faced by the company in their aerospace and defense markets. Persistent supply chain issues have impacted their near-term optimism. In addition, there are concerning signs of slowing order activity in some of their industrial and process flow markets and geographies.
Despite these challenges, Mitchell remains positive about Crane’s future prospects. He revealed that the company has approximately $1 billion in acquisition capacity and is actively considering various small- and medium-sized bolt-on acquisitions across its strategic growth platforms.