Crane NXT (CXT) 8-K Crane Co. Reports Fourth Quarter Earningsand

Exhibit 99.2

CRANE CO.

Consolidated Income Statement Data

(in thousands, except per share data)

	Three Months Ended December 31,						Year Ended December 31,
	2004			2003			2004			2003
Net Sales:
Aerospace & Electronics	$	138,767		$	126,903		$	511,624		$	429,128
Engineered Materials		62,942			54,739			276,186			240,220
Merchandising Systems		43,086			37,417			169,205			155,289
Fluid Handling		222,507			192,878			861,937			748,259
Controls		18,515			16,385			71,950			63,377
Intersegment Elimination		(215	)		(65	)		(567	)		(282	)
Total Net Sales	$	485,602		$	428,257		$	1,890,335		$	1,635,991
Operating Profit:
Aerospace & Electronics	$	24,928		$	33,350		$	92,650		$	96,155
Engineered Materials		9,476			10,203			54,072			48,136
Merchandising Systems		1,957			1,497			9,722			2,766
Fluid Handling		12,659			10,930			52,152			43,496
Controls		1,714			2,022			5,529			4,541
Corporate		(4,493	)		(4,849	)		(27,821	)		(26,082	)
Operating Profit before Income (Charge)		46,241			53,153			186,304			169,012
Asbestos and Environmental Income (Charge)		14,019			—			(347,794	)		—
Total Operating Profit (Loss)		60,260			53,153			(161,490	)		169,012
Interest Income		121			462			1,366			1,186
Interest Expense		(5,114	)		(7,010	)		(23,161	)		(20,010	)
Miscellaneous- Net		15,178			2,186			15,115			976
Income (Loss) Before Income Taxes		70,445			48,791			(168,170	)		151,164
Provision (Benefit) for Income Taxes		24,075			15,125			(62,749	)		46,861
Net Income (Loss)	$	46,370		$	33,666		$	(105,421	)	$	104,303
Share Data:
Net Income (Loss)	$	0.78		$	0.56		$	(1.78	)	$	1.75
Average Diluted Shares Outstanding		59,750			60,177			59,251			59,716
Average Basic Shares Outstanding		59,123			59,517			59,251			59,394
Supplemental Data:
Cost of Sales	$	328,531		$	285,585		$	1,646,668		$	1,106,166
Selling, General & Administrative		96,811			89,519			405,157			360,813
Depreciation and Amortization *		13,732			15,328			55,716			54,025

* Amount included within cost of sales and selling, general & administrative costs.

CRANE CO.

Condensed Consolidated Balance Sheets

(in thousands)

	December 31, 2004		December 31, 2003
ASSETS
Current Assets
Cash and Cash Equivalents	$	50,727	$	142,518
Accounts Receivable		308,140		248,492
Inventories		284,291		235,431
Other Current Assets		59,648		35,335
Total Current Assets		702,806		661,776
Property, Plant and Equipment		287,596		302,638
Other Assets		547,025		311,123
Goodwill		579,081		536,239
Total Assets	$	2,116,508	$	1,811,776
LIABILITIES AND SHAREHOLDERS’ EQUITY
Current Liabilities
Current Maturities of Long-Term Debt	$	8	$	100,275
Loans Payable		363		—
Accounts Payable		161,477		116,885
Accrued Liabilities		225,530		171,438
Income Taxes		22,636		29,976
Total Current Liabilities		410,014		418,574
Long-Term Debt		296,592		295,861
Deferred Income Taxes		71,367		57,738
Postretirement, Pension and Other Liabilities		674,841		253,352
Common Shareholders’ Equity		663,694		786,251
Total Liabilities and Shareholders’ Equity	$	2,116,508	$	1,811,776

CRANE CO.

Condensed Consolidated Statements of Cash Flows

(in thousands)

	Three Months Ended December 31,						Year Ended December 31,
	2004			2003			2004			2003
Operating Activities:
Net (loss) income	$	46,370		$	33,666		$	(105,421	)	$	104,303
Charge for asbestos and environmental - net of tax		(9,112	)		—			229,272			—
Gain on divestiture		(9,468	)		—			(9,468	)		—
Income from joint venture		(1,313	)		(779	)		(4,041	)		(3,097	)
Depreciation and amortization		13,732			15,328			55,716			54,025
Cash provided by (used for) operating working capital		11,646			27,068			(27,403	)		21,249
Other		14,454			(2,297	)		10,365			(5,814	)
Subtotal		66,309			72,986			149,020			170,666
Payments for asbestos-related fees and costs		(19,720	)		(1,691	)		(38,056	)		(7,938	)
Total provided from operating activities		46,589			71,295			110,964			162,728
Investing Activities:
Capital expenditures		(6,855	)		(7,655	)		(22,507	)		(28,128	)
Proceeds from disposition of capital assets		2,832			2,191			3,738			5,867
Payments for acquisitions, net		—			—			(49,957	)		(168,818	)
Proceeds from divestitures		15,320			—			15,320			1,600
Total provided from (used for) investing activities		11,297			(5,464	)		(53,406	)		(189,479	)
Financing Activities:
Dividends paid		(5,918	)		(5,964	)		(23,686	)		(23,768	)
Settlement of treasury shares acquired on the open market		—			—			(42,748	)		(6,641	)
Stock options exercised - net of shares reacquired		4,873			4,687			14,509			6,253
(Repayment) issuance of debt, net		(40,879	)		2,431			(99,868	)		149,718
Total (used for) provided from financing activities		(41,924	)		1,154			(151,793	)		125,562
Effect of exchange rate on cash and cash equivalents		2,566			5,079			2,444			7,118
Increase (decrease) in cash and cash equivalents		18,528			72,064			(91,791	)		105,929
Cash and cash equivalents at beginning of period and year		32,199			70,454			142,518			36,589
Cash and cash equivalents at end of period and year	$	50,727		$	142,518		$	50,727		$	142,518

CRANE CO.

Order Backlog

(in thousands)

	December 31, 2004		Sept 30, 2004		June 30, 2004		March 31, 2004		December 31, 2003
Aerospace & Electronics	$	341,505	$	355,564	$	353,087	$	319,954	$	277,173
Engineered Materials		16,376		15,677		16,197		17,564		11,787
Merchandising Systems		11,998		10,877		11,024		11,176		10,330
Fluid Handling		183,158		176,650		172,120		163,955		140,192
Controls		13,696		13,586		13,451		13,029		12,169
Total Backlog	$	566,733	$	572,354	$	565,879	$	525,678	$	451,651

CRANE CO.

Non-GAAP Financial Measures

(in thousands)

	Three Months Ended Dec 31,						Year Ended Dec 31,
	2004			2003			2004			2003
Operating (loss) profit	$	60,260		$	53,153		$	(161,490	)	$	169,012
Asbestos and environmental charge - pre-tax		(14,019	)		—			347,794			—
Operating profit before charge	$	46,241		$	53,153		$	186,304		$	169,012
Net (loss) income	$	46,370		$	33,666		$	(105,421	)	$	104,303
Asbestos and environmental charge - net of tax		(9,112	)		—			229,272			—
Net income before charge	$	37,258		$	33,666		$	123,851		$	104,303
(Loss) earnings per share	$	0.78		$	0.56		$	(1.78	)	$	1.75
Asbestos and environmental charge - net of tax		(0.15	)		—			3.87			—
Earnings per share before charge	$	0.63		$	0.56		$	2.09		$	1.75
Cash provided from operating activities before asbestos-related payments	$	46,589		$	71,295		$	110,964		$	162,728
Asbestos-related payments		19,720			1,691			38,056			7,938
Cash provided from operating activities	$	66,309		$	72,986		$	149,020		$	170,666
Less: Capital expenditures		(6,855	)		(7,655	)		(22,507	)		(28,128	)
Free cash flow	$	59,454		$	65,331		$	126,513		$	142,538

Certain non-GAAP measures have been provided to facilitate comparison with the prior 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.