Exhibit 99.2
CRANE CO.
Consolidated Income Statement Data
(in thousands, except per share data)
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||
2004 | 2003 | 2004 | 2003 | |||||||||||||
Net Sales: | ||||||||||||||||
Aerospace & Electronics | $ | 126,436 | $ | 104,073 | $ | 245,713 | $ | 191,447 | ||||||||
Engineered Materials | 74,321 | 58,278 | 143,331 | 121,164 | ||||||||||||
Merchandising Systems | 42,591 | 39,869 | 82,041 | 77,475 | ||||||||||||
Fluid Handling | 217,890 | 187,812 | 421,778 | 361,280 | ||||||||||||
Controls | 17,945 | 16,015 | 34,698 | 31,225 | ||||||||||||
Intersegment Elimination | (76 | ) | (74 | ) | (149 | ) | (148 | ) | ||||||||
Total Net Sales | $ | 479,107 | $ | 405,973 | $ | 927,412 | $ | 782,443 | ||||||||
Operating Profit: | ||||||||||||||||
Aerospace & Electronics | $ | 23,927 | $ | 23,278 | $ | 44,148 | $ | 40,149 | ||||||||
Engineered Materials | 15,782 | 11,674 | 31,313 | 24,638 | ||||||||||||
Merchandising Systems | 3,121 | 1,322 | 3,595 | (796 | ) | |||||||||||
Fluid Handling | 14,923 | 13,697 | 23,649 | 21,122 | ||||||||||||
Controls | 1,237 | 986 | 2,127 | 1,383 | ||||||||||||
Corporate | (8,235 | ) | (8,046 | ) | (15,400 | ) | (15,406 | ) | ||||||||
Total Operating Profit | 50,755 | 42,911 | 89,432 | 71,090 | ||||||||||||
Interest Income | 167 | 309 | 389 | 498 | ||||||||||||
Interest Expense | (5,687 | ) | (4,141 | ) | (12,228 | ) | (8,084 | ) | ||||||||
Miscellaneous- Net | 37 | (833 | ) | (181 | ) | (998 | ) | |||||||||
Income Before Income Taxes | 45,272 | 38,246 | 77,412 | 62,506 | ||||||||||||
Provision for Income Taxes | 14,034 | 12,239 | 23,998 | 20,002 | ||||||||||||
Net Income | $ | 31,238 | $ | 26,007 | $ | 53,414 | $ | 42,504 | ||||||||
Depreciation and Amortization | $ | 14,831 | $ | 12,848 | $ | 28,629 | $ | 25,212 | ||||||||
Per Diluted Share Data: | ||||||||||||||||
Net Income | $ | 0.52 | $ | 0.44 | $ | 0.89 | $ | 0.72 | ||||||||
Average Diluted Shares Outstanding | 60,042 | 59,394 | 60,240 | 59,437 | ||||||||||||
Average Basic Shares Outstanding | 59,214 | 59,287 | 59,395 | 59,349 |
CRANE CO.
Condensed Consolidated Balance Sheets
(in thousands)
June 30, 2004 | December 31, 2003 | |||||
ASSETS | ||||||
Current Assets | ||||||
Cash and Cash Equivalents | $ | 38,343 | $ | 142,518 | ||
Accounts Receivable | 298,268 | 248,492 | ||||
Inventories | 263,004 | 235,431 | ||||
Other Current Assets | 32,280 | 35,335 | ||||
Total Current Assets | 631,895 | 661,776 | ||||
Property, Plant and Equipment | 292,080 | 302,638 | ||||
Other Assets | 317,256 | 311,123 | ||||
Goodwill | 568,157 | 536,239 | ||||
Total Assets | $ | 1,809,388 | $ | 1,811,776 | ||
LIABILITIES AND SHAREHOLDERS’ EQUITY | ||||||
Current Liabilities | ||||||
Current Maturities of Long-Term Debt | $ | 8 | $ | 100,275 | ||
Loans Payable | 73,816 | — | ||||
Accounts Payable | 146,094 | 116,885 | ||||
Accrued Liabilities | 174,650 | 171,438 | ||||
Income Taxes | 37,901 | 29,976 | ||||
Total Current Liabilities | 432,469 | 418,574 | ||||
Long-Term Debt | 296,266 | 295,861 | ||||
Deferred Income Taxes | 58,596 | 57,738 | ||||
Postretirement, Pension and Other Liabilities | 232,977 | 253,352 | ||||
Common Shareholders’ Equity | 789,080 | 786,251 | ||||
Total Liabilities and Shareholders’ Equity | $ | 1,809,388 | $ | 1,811,776 | ||
CRANE CO.
Condensed Consolidated Statements of Cash Flows
(in thousands)
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||
2004 | 2003 | 2004 | 2003 | |||||||||||||
Operating Activities: | ||||||||||||||||
Net income | $ | 31,238 | $ | 26,007 | $ | 53,414 | $ | 42,504 | ||||||||
Income from joint venture | (1,135 | ) | (1,164 | ) | (1,668 | ) | (1,535 | ) | ||||||||
Depreciation and amortization | 14,831 | 12,848 | 28,629 | 25,212 | ||||||||||||
Cash used for operating working capital | (7,632 | ) | (1,598 | ) | (37,106 | ) | (5,757 | ) | ||||||||
Asbestos-related payments | (2,376 | ) | (1,852 | ) | (6,190 | ) | (2,273 | ) | ||||||||
Other | (2,460 | ) | (3,285 | ) | (6,715 | ) | (4,573 | ) | ||||||||
Total provided from operating activities | 32,466 | 30,956 | 30,364 | 53,578 | ||||||||||||
Investing Activities: | ||||||||||||||||
Capital expenditures | (5,758 | ) | (6,606 | ) | (10,902 | ) | (13,090 | ) | ||||||||
Proceeds from disposition of capital assets | 621 | 567 | 795 | 911 | ||||||||||||
Payments for acquisitions, net | — | (168,818 | ) | (50,630 | ) | (168,818 | ) | |||||||||
Proceeds from divestitures | — | 400 | — | 1,600 | ||||||||||||
Total used for investing activities | (5,137 | ) | (174,457 | ) | (60,737 | ) | (179,397 | ) | ||||||||
Financing Activities: | ||||||||||||||||
Dividends paid | (5,915 | ) | (5,929 | ) | (11,868 | ) | (11,874 | ) | ||||||||
Settlement of treasury shares acquired on the open market | (19,282 | ) | (525 | ) | (42,748 | ) | (6,641 | ) | ||||||||
Stock options exercised - net of shares reacquired | 2,638 | 187 | 9,180 | 547 | ||||||||||||
(Repayment) issuance of debt, net | (5,011 | ) | 136,680 | (27,754 | ) | 137,712 | ||||||||||
Total (used for) provided from financing activities | (27,570 | ) | 130,413 | (73,190 | ) | 119,744 | ||||||||||
Effect of exchange rate on cash and cash equivalents | (497 | ) | 889 | (612 | ) | 1,544 | ||||||||||
Decrease in cash and cash equivalents | (738 | ) | (12,199 | ) | (104,175 | ) | (4,531 | ) | ||||||||
Cash and cash equivalents at beginning of period | 39,081 | 44,257 | 142,518 | 36,589 | ||||||||||||
Cash and cash equivalents at end of period | $ | 38,343 | $ | 32,058 | $ | 38,343 | $ | 32,058 | ||||||||
CRANE CO.
Order Backlog
(in thousands)
June 30, 2004 | March 31, 2004 | December 31, 2003 | June 30, 2003 | |||||||||
Aerospace & Electronics | $ | 353,087 | $ | 319,954 | $ | 277,173 | $ | 304,975 | ||||
Engineered Materials | 16,197 | 17,564 | 11,787 | 11,071 | ||||||||
Merchandising Systems | 11,024 | 11,176 | 10,330 | 11,827 | ||||||||
Fluid Handling | 172,120 | 163,955 | 140,192 | 140,657 | ||||||||
Controls | 13,451 | 13,029 | 12,169 | 13,481 | ||||||||
Total Backlog | $ | 565,879 | $ | 525,678 | $ | 451,651 | $ | 482,011 | ||||
CRANE CO.
Non-GAAP Financial Measures
(in thousands)
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||
2004 | 2003 | 2004 | 2003 | |||||||||||||
Cash provided from operating activities | $ | 32,466 | $ | 30,956 | $ | 30,364 | $ | 53,578 | ||||||||
Less: Capital expenditures | (5,758 | ) | (6,606 | ) | (10,902 | ) | (13,090 | ) | ||||||||
Dividends | (5,915 | ) | (5,929 | ) | (11,868 | ) | (11,874 | ) | ||||||||
Free cash flow | $ | 20,793 | $ | 18,421 | $ | 7,594 | $ | 28,614 | ||||||||
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.