Crane Co. Reports First Quarter Results

Apr 19, 2001, 01:00 ET from Crane Co.

    STAMFORD, Conn., April 19 /PRNewswire/ -- Crane Co. (NYSE:   CR) today
 announced that, excluding a special non-cash after-tax charge of $4.0 million,
 first quarter operating results and net income were on plan and consistent
 with previously released statements.  Net income (excluding the special charge
 of $4.0 million, or $.07 per diluted share) for the first quarter of 2001 was
 $24.3 million, or $.40 per diluted share, compared with $27.7 million, or $.45
 per diluted share for the first quarter of 2000.  The special charge reflects
 the retirement of R. S. Evans as the Company's Chief Executive Officer and
 represents stock-based retirement costs that previously were being amortized
 to an anticipated retirement at age 65.
     Net income including the special charge was $20.3 million, or $.33 per
 diluted share for the first quarter of 2001.
     Operating profit for the first quarter of 2001 was $43.5 million
 (excluding the special charge of $6.1 million pre-tax) on sales of $379.3
 million compared with $48.0 million on sales of $383.8 million in the first
 quarter of 2000.  Results for the first quarter of 2001 included severance
 costs totaling $2.3 million as employment levels were reduced by 400 employees
 at certain business units in response to the softening economy.  Operating
 profit margins were 11.5% (excluding the special charge) for the first quarter
 of 2001 compared with 12.5% in the first quarter of 2000.  Cash earnings (net
 income excluding the special charge plus amortization of goodwill) per diluted
 share were $.47 for the first quarter of 2001, compared with $.51 for the
 first quarter of 2000.
     During the quarter, the Company recognized a $1.2 million pre-tax loss in
 miscellaneous income on a euro currency option entered into in connection with
 the recently completed acquisition of the Industrial Flow Group of Alfa Laval
 Holding AB.  Overall, the Company recognized a $1.4 million pre-tax gain on
 this option, of which $2.6 million was recognized in the fourth quarter of
 2000.
     Order backlog at March 31, 2001 totaled $533.3 million, an increase of
 $121.7 million, or 30%, from March 31, 2000 and $29.7 million, or 6%, from
 December 31, 2000.
 
     Segment Results
     Segment operating results in the quarter were generally as anticipated.
 The very positive results in Aerospace were offset by the anticipated downturn
 in truck trailer and recreational vehicle production levels, which
 significantly impacted Engineered Materials' operating results.  Sales of
 Valves and Pumps sold through North American distribution were weaker than
 anticipated, requiring strict cost control.  Merchandising Systems was
 slightly below expectations, although greatly improved from fourth quarter
 2000 results, as increased demand for NRI's euro-capable coin changers and
 validators did not offset weaker than planned domestic demand for vending
 machines at Crane Merchandising Systems.
     Aerospace sales increased $17.5 million, or 21%, to $99.4 million for the
 first quarter of 2001 compared with the first quarter of 2000.  Operating
 profit increased $7.8 million, or 46%, to $24.5 million in the first quarter
 of 2001 versus $16.7 million in the first quarter of 2000.  Operating profit
 margins for the segment were 24.6% in the first quarter of 2001 compared with
 20.4% in the first quarter of 2000 as margins at all business units improved.
 Despite $.5 million of severance expense, Interpoint returned to profitability
 during the first quarter of 2001, versus a $1.6 million loss in the first
 quarter of 2000 and a $2.3 million loss in the fourth quarter of 2000, as a
 result of improved manufacturing productivity and stronger shipments.  Order
 backlog for the segment was $308.8 million at March 31, 2001, an increase of
 $64.3 million, or 26%, from March 31, 2000 and $7.2 million from year-end
 2000.  Results in the Aerospace segment should remain strong through the year,
 reflecting current backlog and improved operations at Interpoint.
     Engineered Materials sales decreased $20.5 million, or 21%, to
 $76.7 million for the first quarter of 2001 compared with the first quarter of
 2000 due to weak transportation, recreational vehicle and chemical processing
 markets.  Operating profit decreased $8.5 million, or 51%, to $8.4 million in
 the first quarter of 2001 versus $17.0 million in the first quarter of 2000.
 Despite the downturn in sales, operating profit margins were a solid 11% for
 the segment compared with 17.5% in the first quarter of 2000.  The decrease in
 results was primarily due to Kemlite, which experienced a sales decline of
 $13.1 million, or 21%, to $50.1 million and an operating profit decline of 45%
 for the first quarter of 2001 compared with the record first quarter of 2000
 as truck trailer and recreational vehicle production, its principal markets,
 were down 53% and 23%, respectively, from the first quarter of 2000.  Results
 at Resistoflex were negatively affected by lower shipments to the chemical
 process industry of $2.7 million, lowering operating profit by $1.4 million
 compared to the same quarter in 2000.  In February 2001, Kemlite acquired the
 fiberglass reinforced panel business of UK-based Laminated Profiles Ltd. as
 part of its strategic initiative to penetrate the European market.  Order
 backlog at March 31, 2001 was $18.6 million, a decrease of $9.1 million, or
 33%, from March 31, 2000, but equal with the December 31, 2000 backlog.
 Engineered Materials' operating results in the second quarter are expected to
 again be sharply below the record prior year results, with favorable
 comparisons to the prior year anticipated in the second half of 2001.
     Merchandising Systems sales increased $1.3 million, or 2%, to
 $57.7 million for the first quarter of 2001 compared with the first quarter of
 2000.  Operating profit decreased $.9 million, or 9%, to $8.8 million in the
 first quarter of 2001 versus $9.7 million in the first quarter of 2000 as
 strong results at NRI were more than offset by lower results at Crane
 Merchandising Systems (formerly National Vendors).  Operating profit margins
 for the segment were 15.3% in the first quarter of 2001 compared with 17.1% in
 the first quarter of 2000.  Crane Merchandising Systems' sales decreased
 $6.0 million to $39.6 million and operating profit decreased $4.6 million, as
 a result of weakness in both the U.S. and export markets.  Crane Merchandising
 Systems reduced its employment level by 8% during the quarter, incurring
 $.2 million in severance costs.  NRI's sales increased $7.3 million, or 68%,
 to $18.1 million and operating profit more than doubled, despite unfavorable
 U.S. dollar-to-euro exchange rates, due to very strong demand as a result of
 the conversion to the euro in January 2002.  Order backlog at March 31, 2001
 was $77.7 million, an increase of $56.6 million, or 268%, from March 31, 2000,
 and $8.3 million from December 31, 2000, reflecting a sold-out condition at
 NRI.  This segment's operating profit is anticipated to gradually improve
 quarter to quarter over the remainder of the year reflecting continued strong
 performance at NRI and improved operating efficiencies at Crane Merchandising
 Systems.
     Fluid Handling sales declined $1.2 million, or 1%, to $116.4 million for
 the first quarter of 2001 compared with the first quarter of 2000.  Operating
 profit decreased $.9 million to $7.0 million in the first quarter of 2001
 versus $7.9 million in the first quarter of 2000.  Severance costs of
 $1.1 million were included in this year's first quarter results.  Operating
 profit margins were 6.1% in the first quarter of 2001 compared with 6.8% in
 the first quarter of 2000.  Operating profit at Crane's valve businesses
 increased by $.6 million on a $2.3 million increase in sales as improved
 production efficiencies in the UK, a strong power generation market for
 Pacific Valves and an improving marine market for Westad more than offset
 lower shipments of valves sold in the U.S. through distributors and
 $.5 million in severance expenses.  Crane Pumps' operating profit decreased
 $.7 million due to a $1.9 million decrease in sales and severance costs
 totaling $.6 million for the quarter.  Lower shipments of $2.5 million
 negatively impacted Crane Supply's operating profit by $.8 million.  As
 previously announced, on April 1, 2001, the Company acquired the Industrial
 Flow Group of Alfa Laval Holding AB for approximately $37 million, with
 approximate annual sales of $77.0 million.  The acquisition is expected to be
 immediately accretive to earnings.  Order backlog at March 31, 2001 was
 $101.8 million, an increase of $14.3 million, or 16%, from March 31, 2000, and
 $10.2 million from December 31, 2000, due to continuing strong demand from the
 power generation and improving marine markets.  Fluid Handling's results
 should show improvement each quarter over the prior year reflecting strong
 backlog for projects in the marine, power and oil and gas markets, strict cost
 disciplines in valves and pumps sold through distribution in the U.S., higher
 volumes in nuclear valve services and the addition of the Industrial Flow
 Group.
     Controls sales decreased $1.8 million, or 6%, to $29.8 million for the
 first quarter of 2001 compared with the first quarter of 2000.  This segment
 operated at a break-even level in the first quarter of 2001 versus a
 $.2 million operating profit in the first quarter of 2000 as severance costs
 totaling $.3 million negatively impacted results.  Improvements at Dynalco and
 Ferguson were more than offset by lower transportation sales at Barksdale.
 Order backlog at March 31, 2001 was $26.2 million, a decrease of $4.4 million,
 or 14%, from March 31, 2000, but an increase of $3.9 million versus the
 December 31, 2000 level.  Controls' operating results are expected to return
 to profitability for the remainder of the year, reversing losses in the prior
 year period, driven by improved performance at Ferguson and Azonix.
 
     Financial Position
     Crane's financial position remains strong with net debt to capital at
 28.0% compared with 37.7% at March 31, 2000.  During the quarter, the Company
 acquired 1.0 million shares of its outstanding stock at a total cost of
 $27.8 million, representing 2% of the outstanding shares at the beginning of
 the year, and the Company paid $6.0 million in dividends to shareholders.
 
     Outlook for 2001
     While business conditions remain difficult, the Company continues to
 expect 2001 earnings, excluding the special charge of $.07 per share, to
 increase 10% - 15% over the $1.76 per share earned in the prior year
 (excluding a $.26 per share gain on the sale of investments), with positive
 comparisons in the third and fourth quarters.
     Crane Co. has scheduled a conference call to discuss the first quarter's
 financial results on Friday, April 20, 2001 at 10:00 A.M. (EDT).  All
 interested parties may listen to a live webcast of the call and download an
 accompanying presentation at http://www.craneco.com/investors.cfm.  An
 archived webcast will also be available to replay this conference call
 directly from the Company's website.
 
     Crane Co. is a diversified manufacturer of engineered industrial products.
 
     This press release 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 press release, 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, 2000 filed with the Securities and Exchange
 Commission.
 
                                     CRANE CO.
                               Income Statement Data
                         First Quarter Ended March 31, 2001
                       (in thousands, except per share data)
 
                                                        Three Months Ended
                                                             March 31,
                                                       2001             2000
     Net Sales:
     Aerospace                                        $99,375          $81,900
     Engineered Materials                              76,721           97,218
     Merchandising Systems                             57,703           56,361
     Fluid Handling                                   116,386          117,563
     Controls                                          29,775           31,585
     Intersegment Elimination                            (677)            (831)
         Total Net Sales                             $379,283         $383,796
 
     Operating Profit:
     Aerospace                                        $24,480          $16,716
     Engineered Materials                               8,431           16,977
     Merchandising Systems                              8,801            9,652
     Fluid Handling                                     7,048            7,986
     Controls                                             (40)             175
     Corporate                                         (5,279)          (3,446)
     Intersegment Elimination                              26              (23)
     Operating Profit before Special Charge            43,467           48,037
     Special Charge - Stock-Based Retirement Costs     (6,132)             --
         Total Operating Profit                        37,335           48,037
 
     Interest Income                                      355              517
     Interest Expense                                  (4,779)          (6,150)
     Miscellaneous- Net                                (1,713)             146
     Income Before Taxes                               31,198           42,550
     Provision for Income Taxes                        10,919           14,890
     Net Income                                       $20,279          $27,660
 
     Depreciation and Amortization                    $15,360          $13,279
 
     Per Share Data:
     Income per Diluted Share before Special Charge     $0.40            $0.45
     Special Charge                                     (0.07)             --
     Net Income per Diluted Share                       $0.33            $0.45
 
     Cash Earnings per Diluted Share
      before Special Charge                             $0.47            $0.51
 
     Average Diluted Shares Outstanding                60,774           61,936
 
 
                                     CRANE CO.
                             Condensed Balance Sheets
                                  (in thousands)
 
                                                  March 31,        December 31,
                                                     2001              2000
 
     ASSETS
       Current Assets
         Cash and Cash Equivalents                   $2,557           $10,926
         Accounts Receivable                        229,330           209,817
         Inventories                                235,388           236,329
         Other Current Assets                        39,473            43,080
           Total Current Assets                     506,748           500,152
 
       Property, Plant and Equipment                241,755           246,111
       Other Assets                                  80,887            78,715
       Cost in Excess of Net Assets Acquired        315,281           318,873
 
       Total Assets                              $1,144,671        $1,143,851
 
     LIABILITIES AND SHAREHOLDERS' EQUITY
       Current Liabilities
         Current Maturities of Long-Term Debt          $325              $326
         Loans Payable                               13,686            14,532
         Accounts Payable                            94,272            92,249
         Accrued Liabilities                        107,022           104,361
         Income Taxes                                23,890            20,509
           Total Current Liabilities                239,195           231,977
 
       Long-term Debt                               220,245           213,790
       Deferred Income Taxes                         28,004            28,386
       Postretirement, Pension
        and Other Liabilities                        62,293            62,935
       Common Shareholders' Equity                  594,934           606,763
 
       Total Liabilities and
        Shareholders' Equity                     $1,144,671        $1,143,851
 
 
                                     CRANE CO.
                        Condensed Statements of Cash Flows
                                  (in thousands)
 
                                                         Three Months Ended
                                                              March 31,
                                                     2001               2000
 
     Operating Activities:
         Net income                                $20,279            $27,660
         Depreciation and amortization              15,360             13,279
         Non-cash special charge                     6,132                --
         Cash used for operating working capital   (15,264)           (12,066)
         Other                                       2,652             (2,065)
           Total Provided from
            Operating Activities                    29,159             26,808
 
     Investing Activities:
         Capital expenditures                       (5,988)            (5,866)
         Proceeds from disposition of capital assets   167                284
         Payments for acquisitions, net             (7,738)            (8,500)
          Total Used for Investing Activities      (13,559)           (14,082)
 
     Financing Activities:
         Dividends paid                             (6,025)            (6,111)
         Reacquisition of shares-open market       (26,803)           (41,027)
         Stock options exercised - net of
          shares reacquired                          2,580              1,424
         Issuance of debt, net                       6,947             32,247
          Total Used for Financing Activities      (23,301)           (13,467)
 
     Effect of exchange rate on cash and
      cash equivalents                                (668)              (259)
     Decrease in cash and cash equivalents          (8,369)            (1,000)
     Cash and cash equivalents at beginning
      of period                                     10,926              3,245
     Cash and cash equivalents at end of period     $2,557             $2,245
 
 
                                     CRANE CO.
                                   Order Backlog
                                  (in thousands)
 
                                           March 31,  December 31, March 31,
                                              2001        2000        2000
 
     Aerospace                               $308,803    $301,569    $244,486
     Engineered Materials                      18,625      18,666      27,708
     Merchandising Systems                     77,744      69,409      21,149
     Fluid Handling                           101,843      91,616      87,581
     Controls                                  26,242      22,314      30,606
         Total Backlog                       $533,257    $503,574    $411,530
 
 
 

SOURCE Crane Co.
    STAMFORD, Conn., April 19 /PRNewswire/ -- Crane Co. (NYSE:   CR) today
 announced that, excluding a special non-cash after-tax charge of $4.0 million,
 first quarter operating results and net income were on plan and consistent
 with previously released statements.  Net income (excluding the special charge
 of $4.0 million, or $.07 per diluted share) for the first quarter of 2001 was
 $24.3 million, or $.40 per diluted share, compared with $27.7 million, or $.45
 per diluted share for the first quarter of 2000.  The special charge reflects
 the retirement of R. S. Evans as the Company's Chief Executive Officer and
 represents stock-based retirement costs that previously were being amortized
 to an anticipated retirement at age 65.
     Net income including the special charge was $20.3 million, or $.33 per
 diluted share for the first quarter of 2001.
     Operating profit for the first quarter of 2001 was $43.5 million
 (excluding the special charge of $6.1 million pre-tax) on sales of $379.3
 million compared with $48.0 million on sales of $383.8 million in the first
 quarter of 2000.  Results for the first quarter of 2001 included severance
 costs totaling $2.3 million as employment levels were reduced by 400 employees
 at certain business units in response to the softening economy.  Operating
 profit margins were 11.5% (excluding the special charge) for the first quarter
 of 2001 compared with 12.5% in the first quarter of 2000.  Cash earnings (net
 income excluding the special charge plus amortization of goodwill) per diluted
 share were $.47 for the first quarter of 2001, compared with $.51 for the
 first quarter of 2000.
     During the quarter, the Company recognized a $1.2 million pre-tax loss in
 miscellaneous income on a euro currency option entered into in connection with
 the recently completed acquisition of the Industrial Flow Group of Alfa Laval
 Holding AB.  Overall, the Company recognized a $1.4 million pre-tax gain on
 this option, of which $2.6 million was recognized in the fourth quarter of
 2000.
     Order backlog at March 31, 2001 totaled $533.3 million, an increase of
 $121.7 million, or 30%, from March 31, 2000 and $29.7 million, or 6%, from
 December 31, 2000.
 
     Segment Results
     Segment operating results in the quarter were generally as anticipated.
 The very positive results in Aerospace were offset by the anticipated downturn
 in truck trailer and recreational vehicle production levels, which
 significantly impacted Engineered Materials' operating results.  Sales of
 Valves and Pumps sold through North American distribution were weaker than
 anticipated, requiring strict cost control.  Merchandising Systems was
 slightly below expectations, although greatly improved from fourth quarter
 2000 results, as increased demand for NRI's euro-capable coin changers and
 validators did not offset weaker than planned domestic demand for vending
 machines at Crane Merchandising Systems.
     Aerospace sales increased $17.5 million, or 21%, to $99.4 million for the
 first quarter of 2001 compared with the first quarter of 2000.  Operating
 profit increased $7.8 million, or 46%, to $24.5 million in the first quarter
 of 2001 versus $16.7 million in the first quarter of 2000.  Operating profit
 margins for the segment were 24.6% in the first quarter of 2001 compared with
 20.4% in the first quarter of 2000 as margins at all business units improved.
 Despite $.5 million of severance expense, Interpoint returned to profitability
 during the first quarter of 2001, versus a $1.6 million loss in the first
 quarter of 2000 and a $2.3 million loss in the fourth quarter of 2000, as a
 result of improved manufacturing productivity and stronger shipments.  Order
 backlog for the segment was $308.8 million at March 31, 2001, an increase of
 $64.3 million, or 26%, from March 31, 2000 and $7.2 million from year-end
 2000.  Results in the Aerospace segment should remain strong through the year,
 reflecting current backlog and improved operations at Interpoint.
     Engineered Materials sales decreased $20.5 million, or 21%, to
 $76.7 million for the first quarter of 2001 compared with the first quarter of
 2000 due to weak transportation, recreational vehicle and chemical processing
 markets.  Operating profit decreased $8.5 million, or 51%, to $8.4 million in
 the first quarter of 2001 versus $17.0 million in the first quarter of 2000.
 Despite the downturn in sales, operating profit margins were a solid 11% for
 the segment compared with 17.5% in the first quarter of 2000.  The decrease in
 results was primarily due to Kemlite, which experienced a sales decline of
 $13.1 million, or 21%, to $50.1 million and an operating profit decline of 45%
 for the first quarter of 2001 compared with the record first quarter of 2000
 as truck trailer and recreational vehicle production, its principal markets,
 were down 53% and 23%, respectively, from the first quarter of 2000.  Results
 at Resistoflex were negatively affected by lower shipments to the chemical
 process industry of $2.7 million, lowering operating profit by $1.4 million
 compared to the same quarter in 2000.  In February 2001, Kemlite acquired the
 fiberglass reinforced panel business of UK-based Laminated Profiles Ltd. as
 part of its strategic initiative to penetrate the European market.  Order
 backlog at March 31, 2001 was $18.6 million, a decrease of $9.1 million, or
 33%, from March 31, 2000, but equal with the December 31, 2000 backlog.
 Engineered Materials' operating results in the second quarter are expected to
 again be sharply below the record prior year results, with favorable
 comparisons to the prior year anticipated in the second half of 2001.
     Merchandising Systems sales increased $1.3 million, or 2%, to
 $57.7 million for the first quarter of 2001 compared with the first quarter of
 2000.  Operating profit decreased $.9 million, or 9%, to $8.8 million in the
 first quarter of 2001 versus $9.7 million in the first quarter of 2000 as
 strong results at NRI were more than offset by lower results at Crane
 Merchandising Systems (formerly National Vendors).  Operating profit margins
 for the segment were 15.3% in the first quarter of 2001 compared with 17.1% in
 the first quarter of 2000.  Crane Merchandising Systems' sales decreased
 $6.0 million to $39.6 million and operating profit decreased $4.6 million, as
 a result of weakness in both the U.S. and export markets.  Crane Merchandising
 Systems reduced its employment level by 8% during the quarter, incurring
 $.2 million in severance costs.  NRI's sales increased $7.3 million, or 68%,
 to $18.1 million and operating profit more than doubled, despite unfavorable
 U.S. dollar-to-euro exchange rates, due to very strong demand as a result of
 the conversion to the euro in January 2002.  Order backlog at March 31, 2001
 was $77.7 million, an increase of $56.6 million, or 268%, from March 31, 2000,
 and $8.3 million from December 31, 2000, reflecting a sold-out condition at
 NRI.  This segment's operating profit is anticipated to gradually improve
 quarter to quarter over the remainder of the year reflecting continued strong
 performance at NRI and improved operating efficiencies at Crane Merchandising
 Systems.
     Fluid Handling sales declined $1.2 million, or 1%, to $116.4 million for
 the first quarter of 2001 compared with the first quarter of 2000.  Operating
 profit decreased $.9 million to $7.0 million in the first quarter of 2001
 versus $7.9 million in the first quarter of 2000.  Severance costs of
 $1.1 million were included in this year's first quarter results.  Operating
 profit margins were 6.1% in the first quarter of 2001 compared with 6.8% in
 the first quarter of 2000.  Operating profit at Crane's valve businesses
 increased by $.6 million on a $2.3 million increase in sales as improved
 production efficiencies in the UK, a strong power generation market for
 Pacific Valves and an improving marine market for Westad more than offset
 lower shipments of valves sold in the U.S. through distributors and
 $.5 million in severance expenses.  Crane Pumps' operating profit decreased
 $.7 million due to a $1.9 million decrease in sales and severance costs
 totaling $.6 million for the quarter.  Lower shipments of $2.5 million
 negatively impacted Crane Supply's operating profit by $.8 million.  As
 previously announced, on April 1, 2001, the Company acquired the Industrial
 Flow Group of Alfa Laval Holding AB for approximately $37 million, with
 approximate annual sales of $77.0 million.  The acquisition is expected to be
 immediately accretive to earnings.  Order backlog at March 31, 2001 was
 $101.8 million, an increase of $14.3 million, or 16%, from March 31, 2000, and
 $10.2 million from December 31, 2000, due to continuing strong demand from the
 power generation and improving marine markets.  Fluid Handling's results
 should show improvement each quarter over the prior year reflecting strong
 backlog for projects in the marine, power and oil and gas markets, strict cost
 disciplines in valves and pumps sold through distribution in the U.S., higher
 volumes in nuclear valve services and the addition of the Industrial Flow
 Group.
     Controls sales decreased $1.8 million, or 6%, to $29.8 million for the
 first quarter of 2001 compared with the first quarter of 2000.  This segment
 operated at a break-even level in the first quarter of 2001 versus a
 $.2 million operating profit in the first quarter of 2000 as severance costs
 totaling $.3 million negatively impacted results.  Improvements at Dynalco and
 Ferguson were more than offset by lower transportation sales at Barksdale.
 Order backlog at March 31, 2001 was $26.2 million, a decrease of $4.4 million,
 or 14%, from March 31, 2000, but an increase of $3.9 million versus the
 December 31, 2000 level.  Controls' operating results are expected to return
 to profitability for the remainder of the year, reversing losses in the prior
 year period, driven by improved performance at Ferguson and Azonix.
 
     Financial Position
     Crane's financial position remains strong with net debt to capital at
 28.0% compared with 37.7% at March 31, 2000.  During the quarter, the Company
 acquired 1.0 million shares of its outstanding stock at a total cost of
 $27.8 million, representing 2% of the outstanding shares at the beginning of
 the year, and the Company paid $6.0 million in dividends to shareholders.
 
     Outlook for 2001
     While business conditions remain difficult, the Company continues to
 expect 2001 earnings, excluding the special charge of $.07 per share, to
 increase 10% - 15% over the $1.76 per share earned in the prior year
 (excluding a $.26 per share gain on the sale of investments), with positive
 comparisons in the third and fourth quarters.
     Crane Co. has scheduled a conference call to discuss the first quarter's
 financial results on Friday, April 20, 2001 at 10:00 A.M. (EDT).  All
 interested parties may listen to a live webcast of the call and download an
 accompanying presentation at http://www.craneco.com/investors.cfm.  An
 archived webcast will also be available to replay this conference call
 directly from the Company's website.
 
     Crane Co. is a diversified manufacturer of engineered industrial products.
 
     This press release 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 press release, 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, 2000 filed with the Securities and Exchange
 Commission.
 
                                     CRANE CO.
                               Income Statement Data
                         First Quarter Ended March 31, 2001
                       (in thousands, except per share data)
 
                                                        Three Months Ended
                                                             March 31,
                                                       2001             2000
     Net Sales:
     Aerospace                                        $99,375          $81,900
     Engineered Materials                              76,721           97,218
     Merchandising Systems                             57,703           56,361
     Fluid Handling                                   116,386          117,563
     Controls                                          29,775           31,585
     Intersegment Elimination                            (677)            (831)
         Total Net Sales                             $379,283         $383,796
 
     Operating Profit:
     Aerospace                                        $24,480          $16,716
     Engineered Materials                               8,431           16,977
     Merchandising Systems                              8,801            9,652
     Fluid Handling                                     7,048            7,986
     Controls                                             (40)             175
     Corporate                                         (5,279)          (3,446)
     Intersegment Elimination                              26              (23)
     Operating Profit before Special Charge            43,467           48,037
     Special Charge - Stock-Based Retirement Costs     (6,132)             --
         Total Operating Profit                        37,335           48,037
 
     Interest Income                                      355              517
     Interest Expense                                  (4,779)          (6,150)
     Miscellaneous- Net                                (1,713)             146
     Income Before Taxes                               31,198           42,550
     Provision for Income Taxes                        10,919           14,890
     Net Income                                       $20,279          $27,660
 
     Depreciation and Amortization                    $15,360          $13,279
 
     Per Share Data:
     Income per Diluted Share before Special Charge     $0.40            $0.45
     Special Charge                                     (0.07)             --
     Net Income per Diluted Share                       $0.33            $0.45
 
     Cash Earnings per Diluted Share
      before Special Charge                             $0.47            $0.51
 
     Average Diluted Shares Outstanding                60,774           61,936
 
 
                                     CRANE CO.
                             Condensed Balance Sheets
                                  (in thousands)
 
                                                  March 31,        December 31,
                                                     2001              2000
 
     ASSETS
       Current Assets
         Cash and Cash Equivalents                   $2,557           $10,926
         Accounts Receivable                        229,330           209,817
         Inventories                                235,388           236,329
         Other Current Assets                        39,473            43,080
           Total Current Assets                     506,748           500,152
 
       Property, Plant and Equipment                241,755           246,111
       Other Assets                                  80,887            78,715
       Cost in Excess of Net Assets Acquired        315,281           318,873
 
       Total Assets                              $1,144,671        $1,143,851
 
     LIABILITIES AND SHAREHOLDERS' EQUITY
       Current Liabilities
         Current Maturities of Long-Term Debt          $325              $326
         Loans Payable                               13,686            14,532
         Accounts Payable                            94,272            92,249
         Accrued Liabilities                        107,022           104,361
         Income Taxes                                23,890            20,509
           Total Current Liabilities                239,195           231,977
 
       Long-term Debt                               220,245           213,790
       Deferred Income Taxes                         28,004            28,386
       Postretirement, Pension
        and Other Liabilities                        62,293            62,935
       Common Shareholders' Equity                  594,934           606,763
 
       Total Liabilities and
        Shareholders' Equity                     $1,144,671        $1,143,851
 
 
                                     CRANE CO.
                        Condensed Statements of Cash Flows
                                  (in thousands)
 
                                                         Three Months Ended
                                                              March 31,
                                                     2001               2000
 
     Operating Activities:
         Net income                                $20,279            $27,660
         Depreciation and amortization              15,360             13,279
         Non-cash special charge                     6,132                --
         Cash used for operating working capital   (15,264)           (12,066)
         Other                                       2,652             (2,065)
           Total Provided from
            Operating Activities                    29,159             26,808
 
     Investing Activities:
         Capital expenditures                       (5,988)            (5,866)
         Proceeds from disposition of capital assets   167                284
         Payments for acquisitions, net             (7,738)            (8,500)
          Total Used for Investing Activities      (13,559)           (14,082)
 
     Financing Activities:
         Dividends paid                             (6,025)            (6,111)
         Reacquisition of shares-open market       (26,803)           (41,027)
         Stock options exercised - net of
          shares reacquired                          2,580              1,424
         Issuance of debt, net                       6,947             32,247
          Total Used for Financing Activities      (23,301)           (13,467)
 
     Effect of exchange rate on cash and
      cash equivalents                                (668)              (259)
     Decrease in cash and cash equivalents          (8,369)            (1,000)
     Cash and cash equivalents at beginning
      of period                                     10,926              3,245
     Cash and cash equivalents at end of period     $2,557             $2,245
 
 
                                     CRANE CO.
                                   Order Backlog
                                  (in thousands)
 
                                           March 31,  December 31, March 31,
                                              2001        2000        2000
 
     Aerospace                               $308,803    $301,569    $244,486
     Engineered Materials                      18,625      18,666      27,708
     Merchandising Systems                     77,744      69,409      21,149
     Fluid Handling                           101,843      91,616      87,581
     Controls                                  26,242      22,314      30,606
         Total Backlog                       $533,257    $503,574    $411,530
 
 
 SOURCE  Crane Co.