Crane NXT (CXT) 8-K Crane Co. Reports Fourth Quarter Resultsof $0.56PER Share

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.