Crane NXT (CXT) 8-K Crane Co. Reports Fourth Quarterand Full Year 2010

Exhibit 99.2

CRANE CO.

Income Statement Data

(in thousands, except per share data)

	Three Months Ended						Twelve Months Ended
	December 31,						December 31,
	2010			2009			2010			2009
Net Sales:
Aerospace & Electronics	$	161,059		$	154,280	*	$	577,164		$	590,118	*
Engineered Materials		44,975			44,090			212,280			172,080
Merchandising Systems		76,143			71,731			298,040			292,636
Fluid Handling		261,719			253,577			1,019,937			1,049,960
Controls		30,110			21,326			110,404			91,549
Total Net Sales	$	574,006		$	545,004		$	2,217,825		$	2,196,343
Operating Profit (Loss):
Aerospace & Electronics	$	33,156		$	39,657	*	$	109,228		$	95,916	*
Engineered Materials		3,466			6,060			30,143			19,657
Merchandising Systems		(2,611	)		4,553			16,729			21,122
Fluid Handling		29,252			33,503			122,590			132,211
Controls		2,943			(1,407	)		5,843			(4,391	)
Corporate		(12,507	)		(12,926	)		(49,371	)		(56,246	)**
Total Operating Profit (Loss)		53,699			69,440			235,162			208,269
Interest Income		424			1,242			1,184			2,820
Interest Expense		(6,720	)		(6,769	)		(26,841	)		(27,139	)
Miscellaneous- Net		527			(1,347	)		1,424			976
Income (loss) Before Income Taxes		47,930			62,566			210,929			184,926
Provision for Income Taxes		8,690			14,873			56,739			50,846
Net income (loss) before allocations to noncontrolling interests		39,240			47,693			154,190			134,080
Less: Noncontrolling interest in subsidiaries’ earnings (losses)		(148	)		22			20			224
Net income (loss) attributable to common shareholders	$	39,388		$	47,671		$	154,170		$	133,856
Share Data:
Earnings per Diluted Share	$	0.66		$	0.81		$	2.59		$	2.28
Average Diluted Shares Outstanding		59,317			59,119			59,562			58,812
Average Basic Shares Outstanding		58,275			58,472			58,601			58,473
Supplemental Data:
Cost of Sales	$	385,381		$	349,002		$	1,472,602		$	1,466,030
Selling, General & Administrative		134,926			126,562			510,061			522,044
Depreciation and Amortization ***		15,245			14,347			59,841			58,204
Stock-Based Compensation Expense		3,676			2,464			13,326			9,166

* Includes $18.9 million of sales and $16.4 million of operating profit from the Boeing Company and GE Aviation Systems LLC settlement related to brake control systems.

** Includes a charge of $7.25 million related to the settlement of a lawsuit brought against the Company by a customer alleging failure of our fiberglass-reinforced plastic material.

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

CRANE CO.

Condensed Balance Sheets

(in thousands)

	December 31,		December 31,
	2010		2009
ASSETS
Current Assets
Cash and Cash Equivalents	$	272,941	$	372,714
Accounts Receivable, net		301,918		282,463
Current Insurance Receivable - Asbestos		33,000		35,300
Inventories, net		319,077		284,552
Other Current Assets		61,725		71,317
Total Current Assets		988,661		1,046,346
Property, Plant and Equipment, net		280,746		285,224
Long-Term Insurance Receivable - Asbestos		180,689		213,004
Other Assets		450,936		406,346
Goodwill		810,285		761,978
Total Assets	$	2,711,317	$	2,712,898
LIABILITIES AND EQUITY
Current Liabilities
Notes Payable and Current Maturities of Long-Term Debt	$	984	$	1,078
Accounts Payable		157,051		142,390
Current Asbestos Liability		100,000		100,300
Accrued Liabilities		229,462		218,864
Income Taxes		11,057		4,150
Total Current Liabilities		498,554		466,782
Long-Term Debt		398,736		398,557
Long-Term Deferred Tax Liability		50,141		29,578
Long-Term Asbestos Liability		619,666		720,713
Other Liabilities		147,859		203,566
Total Equity		996,361		893,702
Total Liabilities and Equity	$	2,711,317	$	2,712,898

CRANE CO.

Condensed Statements of Cash Flows

(in thousands)

	Three Months Ended						Twelve Months Ended
	December 31,						December 31,
	2010			2009			2010			2009
Operating Activities:
Net income attributable to common shareholders	$	39,388		$	47,671		$	154,170		$	133,856
Noncontrolling interest in subsidiaries’ earnings (losses)		(148	)		22			20			224
Net income before allocations to noncontrolling interests		39,240			47,693			154,190			134,080
Gain on divestiture		—			—			(1,015	)		—
Depreciation and amortization		15,245			14,347			59,841			58,204
Stock-based compensation expense		3,676			2,464			13,326			9,166
Defined benefit plans and postretirement expense		3,678			4,688			14,712			18,750
Deferred income taxes		(2,885	)		8,680			28,028			26,284
Cash provided by operating working capital		48,105			34,366			(8,262	)		47,403
Defined benefit plans and postretirement contributions		(1,324	)		(21,732	)		(43,226	)		(35,231	)
Environmental payments, net of reimbursements		(158	)		(806	)		(11,063	)		(8,961	)
Other		(8,265	)		(5,372	)		(6,264	)		(4,854	)
Subtotal		97,312			84,328			200,267			244,841
Asbestos related payments, net of insurance recoveries		(23,079	)		(21,039	)		(66,731	)		(55,827	)*
Total provided by operating activities		74,233			63,289			133,536			189,014
Investing Activities:
Capital expenditures		(7,444	)		(7,087	)		(21,033	)		(28,346	)
Proceeds from disposition of capital assets		190			1,442			375			4,768
Payment for acquisition, net of cash acquired		(89,294	)		—			(140,461	)		—
Proceeds from divestiture		—			17,864			4,615			17,864
Total (used for) provided by investing activities		(96,548	)		12,219			(156,504	)		(5,714	)
Financing Activities:
Dividends paid		(13,360	)		(11,704	)		(50,371	)		(46,783	)
Reacquisition of shares on open market		(19,999	)		—			(49,988	)		—
Stock options exercised - net of shares reacquired		6,024			1,369			22,375			1,070
Excess tax benefit from stock-based compensation		1,470			93			3,290			224
Change in short-term debt		(440	)		(109	)		(2,739	)		(16,474	)
Total used for financing activities		(26,305	)		(10,351	)		(77,433	)		(61,963	)
Effect of exchange rate on cash and cash equivalents		5,997			2,669			628			19,537
Increase (decrease) in cash and cash equivalents		(42,623	)		67,826			(99,773	)		140,874
Cash and cash equivalents at beginning of period		315,564			304,888			372,714			231,840
Cash and cash equivalents at end of period	$	272,941		$	372,714		$	272,941		$	372,714

* Includes a $14.5 million insurance settlement receipt from the Highlands Insurance Company.

CRANE CO.

Order Backlog

(in thousands)

	December 31,			September 30,			June 30,			March 31,			December 31,
	2010			2010			2010			2010			2009
Aerospace & Electronics	$	431,467	*	$	401,585	*	$	394,554	*	$	388,169	*	$	351,004
Engineered Materials		11,831			11,367			12,496			14,810			12,070
Merchandising Systems		30,170	**		18,044			20,346			21,947			23,522
Fluid Handling		271,825			266,578			257,840			253,946			249,901
Controls		22,354			27,575			28,711			26,910			27,958
Total Backlog	$	767,647		$	725,149		$	713,947		$	705,782		$	664,455

* Includes Order Backlog of $22.9 million in December 2010, $24.5 million in September 2010, $26.5 million in June 2010 and $22.4 million in March 2010 pertaining to the 2010 acquisition of Merrimac.

** Includes Order Backlog of $8.4 million in December 2010 pertaining to the 2010 acquisition of Money Controls.

CRANE CO.

Non-GAAP Financial Measures

(in thousands)

	Three Months Ended						Twelve Months Ended						Percent Change			Percent Change
	December 31,						December 31,						December 31, 2010			December 31, 2010
	2010			2009			2010			2009			Three Months			Twelve Months
INCOME ITEMS
Net Sales	$	574,006		$	545,004		$	2,217,825		$	2,196,343			5.3	%		1.0	%
Special Items impacting Net Sales
Agreement related to brake control systems (a)					(18,880	)					(18,880	)
Net Sales before Special Items	$	574,006		$	526,124		$	2,217,825		$	2,177,463			9.1	%		1.9	%
Operating Profit		53,699			69,440			235,162			208,269			-22.7	%		12.9	%
Percentage of Sales		9.4	%		12.7	%		10.6	%		9.5	%
Special Items impacting Operating Profit:
Agreement related to brake control systems, net (a)					(16,360	)					(16,360	)
Lawsuit Settlement - Pre-Tax (b)		—			—						7,250
Restructuring Charges - Pre-Tax (c)		7,841			2,883			6,676			5,243
Non-deductible acquisition transaction costs (d)		1,276			—			1,276			—
Operating Profit before Special Items	$	62,816		$	55,963		$	243,114		$	204,402			12.2	%		18.9	%
Percentage of Sales		10.9	%		10.6	%		11.0	%		9.4	%
Net Income Attributable to Common Shareholders	$	39,388		$	47,671		$	154,170		$	133,856
Per Share	$	0.66		$	0.81		$	2.59		$	2.28			-17.6	%		13.7	%
Special Items impacting Net Income Attributable to Common Shareholders:
Agreement related to brake control systems, net - Net of Tax (a)					(10,634	)					(10,634	)
Per Share					(0.18	)					(0.18	)
Tax benefit from divestiture (e)					(5,238	)					(5,238	)
Per Share					(0.09	)					(0.09	)
Reversal of Tax Provision on Undistributed Foreign Earnings (f)	($	5,625	)				($	5,625	)
Per Share	$	(0.09	)				$	(0.09	)
Lawsuit Settlement - Net of Tax (b)											4,713
Per Share											0.08
Restructuring Charges - Net of Tax (c)		5,293			1,916			4,470			3,703
Per Share	$	0.09		$	0.03		$	0.08		$	0.06
Non-deductible acquisition transaction costs (d)		1,276						1,276
Per Share	$	0.02					$	0.02
Net Income Attributable To Common Shareholders Before Special Items	$	40,332		$	33,715		$	154,291		$	126,400			19.6	%		22.1	%
Per Basic Share	$	0.69		$	0.58		$	2.63		$	2.16
Per Diluted Share	$	0.68		$	0.57		$	2.59		$	2.15			19.2	%		20.5	%

(a) During the three months ended December 31, 2009, the Company recorded an agreement with Boeing and GE Aviation LLC related to the development of brake control systems for the Boeing 787 aircraft.

(b) During the six months ended June 30, 2009, the Company recorded a charge for the settlement of a lawsuit brought against the Company by a customer alleging failure or our fiberglass-reinforced plastic material.

(c) Amounts represent restructuring charges in connection with the Restructuring Program.

(d) During the three months ended December 31, 2010, the Company recorded non-deductible transaction costs associated with the acquisition of Money Controls.

(e) During the three months ended December 31, 2009, the Company recorded a tax benefit related to the divestiture of one of its businesses.

(f) During the three months ended December 31, 2010, the Company recorded a tax benefit caused by the reinvestment of non-U.S. earnings associated with the acquisition of Money Controls.

	Three Months Ended						Twelve Months Ended
	December 31,						December 31,
	2010			2009			2010			2009
CASH FLOW ITEMS
Cash Provided from Operating Activities before Asbestos - Related Payments	$	97,312		$	84,328	*	$	200,267	**	$	244,841	*
Asbestos Related Payments, Net of Insurance Recoveries		(23,079	)		(21,039	)		(66,731	)		(55,827	)***
Cash Provided from Operating Activities		74,233			63,289			133,536			189,014
Less: Capital Expenditures		(7,444	)		(7,087	)		(21,033	)		(28,346	)
Free Cash Flow	$	66,789		$	56,202		$	112,503		$	160,668

* Includes a $17 million discretionary pension contribution.

** Includes a $25 million discretionary pension contribution.

*** Includes a $14.5 million insurance settlement receipt from the Highlands Insurance Company.

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

The Company reports its financial results in accordance with U.S. generally accepted accounting principles (GAAP). However, management believes that non-GAAP financial measures which exclude certain non-recurring items present additional useful comparisons between current results and results in prior operating periods, providing investors with a clearer view of the underlying trends of the business. Management also uses these non-GAAP financial measures in making financial, operating, planning and compensation decisions and in evaluating the Company’s performance.

In addition, Free Cash Flow provides supplemental information to assist management and investors in analyzing the Company’s ability to generate liquidity from its operating activities. The measure of Free Cash Flow does not take into consideration certain other non-discretionary cash requirements such as, for example, mandatory principle payments on the Company’s long-term debt. Non- GAAP financial measures, which may be inconsistent with similarly captioned measures presented by other companies, should be viewed in addition to, and not as a substitute for, the Company’s reported results prepared in accordance with GAAP.

Non-GAAP financial measures, which may be inconsistent with similarly captioned measures presented by other companies, should be viewed in the context of the definitions of the elements of such measures we provide and in addition to, and not as a substitute for, the Company’s reported results prepared in accordance with GAAP.