Crane NXT (CXT) 8-K Results of Operations and Financial Condition

Exhibit 99.2

CRANE CO.

Income Statement Data

(in thousands, except per share data)

	Three Months Ended
	March 31,
	2007			2006
Net Sales:
Aerospace & Electronics	$	148,392		$	139,540
Engineered Materials		87,748			85,949
Merchandising Systems		97,364			52,556
Fluid Handling		263,124			242,179
Controls		31,762			29,329
Intersegment Elimination		(173	)		(170	)
Total Net Sales	$	628,217		$	549,383
Operating Profit:
Aerospace & Electronics	$	21,026		$	22,406
Engineered Materials		16,038			15,740
Merchandising Systems		9,631			3,752
Fluid Handling		31,141			25,478
Controls		2,346			1,540
Corporate		(11,783	)		(11,701	)
Total Operating Profit		68,399			57,215
Interest Income		1,313			708
Interest Expense		(6,868	)		(5,527	)
Miscellaneous- Net		1,813			1,261
Income Before Income Taxes		64,657			53,657
Provision for Income Taxes		21,012			16,258
Net Income	$	43,645		$	37,399
Share Data:
Net Income per Diluted Share	$	0.71		$	0.61
Average Diluted Shares Outstanding		61,207			61,801
Average Basic Shares Outstanding		60,209			60,718
Supplemental Data:
Cost of Sales	$	423,683		$	371,501
Selling, General & Administrative		136,135			120,667
Depreciation and Amortization *		15,576			15,265
Stock Compensation Expense		4,304			4,082

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

CRANE CO.

Condensed Balance Sheets

(in thousands)

	March 31,		December 31,
	2007		2006
ASSETS
Current Assets
Cash and Cash Equivalents	$	133,921	$	138,607
Accounts Receivable		358,102		330,146
Current Insurance Receivable - Asbestos		21,000		52,500
Inventories		327,623		313,259
Other Current Assets		63,547		45,897
Total Current Assets		904,193		880,409
Property, Plant and Equipment		276,683		289,555
Long-Term Insurance Receivable - Asbestos		164,030		170,400
Other Assets		388,805		385,384
Goodwill		709,246		704,736
Total Assets	$	2,442,957	$	2,430,484
LIABILITIES AND SHAREHOLDERS’ EQUITY
Current Liabilities
Notes Payable and Current Maturities of Long-Term Debt	$	11,310	$	9,505
Accounts Payable		172,479		161,270
Current Asbestos Liability		70,000		70,000
Accrued Liabilities		194,551		196,723
Income Taxes		32,436		24,428
Total Current Liabilities		480,776		461,926
Long-Term Debt		392,115		391,760
Deferred Tax Liability		91,822		89,595
Long-Term Asbestos Liability		442,877		459,567
Other Liabilities		112,789		109,033
Shareholders’ Equity		922,578		918,603
Total Liabilities and Shareholders’ Equity	$	2,442,957	$	2,430,484

CRANE CO.

Condensed Statements of Cash Flows

(in thousands)

	Three Months Ended March 31,
	2007			2006
Operating Activities:
Net income	$	43,645		$	37,399
Income from joint venture		(1,017	)		(1,761	)
Depreciation and amortization		15,576			15,265
Stock-based compensation expense		4,304			4,082
Cash used for operating working capital		(25,648	)		(32,899	)
Other		(21,151	)		4,196
Subtotal		15,709			26,282
Asbestos related payments, net of insurance recoveries		21,180			(9,300	)
Total provided by operating activities		36,889			16,982
Investing Activities:
Capital expenditures		(6,963	)		(8,390	)
Proceeds from disposition of capital assets		11,032			1,236
Payment for acquisition, net of cash acquired		(5	)		(85,338	)
Total provided from (used) for investing activities		4,064			(92,492	)
Financing Activities:
Dividends paid		(9,050	)		(7,623	)
Reacquisition of shares on open market		(40,001	)		(12,041	)
Stock options exercised - net of shares reacquired		(387	)		8,396
Excess tax benefit from stock-based compensation		690			1,716
Repayment of debt, net		1,733			(202	)
Total used for financing activities		(47,015	)		(9,754	)
Effect of exchange rate on cash and cash equivalents		1,376			1,373
Decrease in cash and cash equivalents		(4,686	)		(83,891	)
Cash and cash equivalents at beginning of period		138,607			180,392
Cash and cash equivalents at end of period	$	133,921		$	96,501

CRANE CO.

Order Backlog

(in thousands)

	March 31, 2007		December 31, 2006		March 31, 2006
Aerospace & Electronics	$	405,792	$	396,799	$	363,443
Engineered Materials		17,437		13,198		16,972
Merchandising Systems		33,231		33,170		14,838
Fluid Handling		237,144		210,532		202,739
Controls		33,224		22,982		23,578
Total Backlog	$	726,828	$	676,681	$	621,570

CRANE CO.

Non-GAAP Financial Measures

(in thousands)

	March 31, 2007			December 31, 2006
BALANCE SHEET ITEMS
Notes Payable and Current Maturities of Long-Term Debt	$	11,310		$	9,505
Long-Term Debt		392,115			391,760
Total Debt		403,425			401,265
Less Cash and Cash Equivalents		(133,921	)		(138,607	)
Net Debt		269,504			262,658
Shareholders’ Equity		922,578			918,603
Total Capitalization	$	1,192,082		$	1,181,261
Percentage of Net Debt to Total Capitalization		22.6	%		22.2	%

	Three Months Ended March 31,						Year Ended December 31,
	2007			2006			2007			2006
							(Estimated)
CASH FLOW ITEMS
Cash Provided from Operating Activities before Asbestos - Related Payments	$	15,709		$	26,282		$	240,000 - 255,000		$	222,258
Asbestos Related Payments, Net of Insurance Recoveries		(10,320	)		(9,300	)		(51,500	)		(40,563	)
Equitas Receipts		31,500			—			31,500			—
Cash Provided from Operating Activities		36,889			16,982		$	220,000 - 235,000			181,695
Less: Capital Expenditures		(6,963	)		(8,390	)		(45,000	)		(27,171	)
Free Cash Flow	$	29,926		$	8,592		$	175,000 - 190,000		$	154,524

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

Free cash flow provides supplemental information to assist management and 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.