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 June 30,						Six Months Ended June 30,
	2011			2010			2011			2010
Net Sales:
Aerospace & Electronics	$	171,538		$	139,299		$	333,474		$	272,944
Engineered Materials		60,101			58,646			121,933			112,401
Merchandising Systems		94,010			74,527			188,888			144,698
Fluid Handling		288,965			254,587			553,107			502,376
Controls		29,159			25,755			57,391			50,686
Total Net Sales	$	643,773		$	552,814		$	1,254,793		$	1,083,105
Operating Profit (Loss):
Aerospace & Electronics	$	37,157		$	26,215		$	71,199		$	50,704
Engineered Materials		9,130			10,172			19,273			18,712
Merchandising Systems		7,114			8,110			11,787			13,079
Fluid Handling		36,943			32,152			72,396			60,141
Controls		3,717			825			6,828			951
Corporate		(14,118	)		(12,170	)		(28,680	)		(25,003	)
Total Operating Profit		79,943			65,304			152,803			118,584
Interest Income		389			236			679			461
Interest Expense		(6,429	)		(6,657	)		(13,051	)		(13,383	)
Miscellaneous- Net		(290	)		(604	)		3,335	*		(625	)
Income Before Income Taxes		73,613			58,279			143,766			105,037
Provision for Income Taxes		23,076			18,116			44,851			31,690
Net income before allocations to noncontrolling interests		50,537			40,163			98,915			73,347
Less: Noncontrolling interest in subsidiaries’ earnings		100			122			11			72
Net income attributable to common shareholders	$	50,437		$	40,041		$	98,904		$	73,275
Share Data:
Earnings per Diluted Share	$	0.85		$	0.67		$	1.66		$	1.23
Average Diluted Shares Outstanding		59,348			59,894			59,457			59,716
Average Basic Shares Outstanding		58,173			58,909			58,259			58,777
Supplemental Data:
Cost of Sales	$	423,041		$	361,779		$	820,891		$	714,050
Selling, General & Administrative		140,789			125,731			281,099			250,471
Depreciation and Amortization **		15,853			15,408			31,627			29,845
Stock-Based Compensation Expense		3,771			3,172			7,274			6,344

* Primarily related to the sale of a building and the divestiture of a small product line in the three months ended March 31, 2011.

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

CRANE CO.

Condensed Balance Sheets

(in thousands)

	June 30, 2011		December 31, 2010
ASSETS
Current Assets
Cash and Cash Equivalents	$	231,365	$	272,941
Accounts Receivable, net		377,948		301,918
Current Insurance Receivable - Asbestos		33,000		33,000
Inventories, net		362,113		319,077
Other Current Assets		67,442		61,725
Total Current Assets		1,071,868		988,661
Property, Plant and Equipment, net		284,101		280,746
Long-Term Insurance Receivable - Asbestos		167,412		180,689
Other Assets		422,438		446,316
Goodwill		824,318		810,285
Total Assets	$	2,770,137	$	2,706,697
LIABILITIES AND EQUITY
Current Liabilities
Notes Payable and Current Maturities of Long-Term Debt	$	464	$	984
Accounts Payable		180,216		157,051
Current Asbestos Liability		100,000		100,000
Accrued Liabilities		221,972		229,462
Income Taxes		18,882		11,057
Total Current Liabilities		521,534		498,554
Long-Term Debt		398,825		398,736
Long-Term Deferred Tax Liability		50,224		48,852
Long-Term Asbestos Liability		570,768		619,666
Other Liabilities		139,521		147,859
Total Equity		1,089,265		993,030
Total Liabilities and Equity	$	2,770,137	$	2,706,697

CRANE CO.

Condensed Statements of Cash Flows

(in thousands)

	Three Months Ended June 30,						Six Months Ended June 30,
	2011			2010			2011			2010
Operating Activities:
Net income attributable to common shareholders	$	50,437		$	40,041		$	98,904		$	73,275
Noncontrolling interest in subsidiaries’ earnings		100			122			11			72
Net income before allocations to noncontrolling interests		50,537			40,163			98,915			73,347
Gain on divestiture		—			—			(4,258	)		—
Depreciation and amortization		15,853			15,408			31,627			29,845
Stock-based compensation expense		3,771			3,172			7,274			6,344
Defined benefit plans and postretirement expense		843			3,775			3,592			6,150
Deferred income taxes		6,627			6,538			13,520			13,220
Cash provided by (used for) operating working capital		(18,141	)		11,041			(85,391	)		(20,646	)
Defined benefit plans and postretirement contributions		(5,579	)		(5,213	)		(10,358	)		(6,289	)
Environmental payments, net of reimbursements		(1,541	)		(3,117	)		(6,134	)		(6,317	)
Other		1,895			(8,321	)		2,037			(4,265	)
Subtotal		54,265			63,446			50,824			91,389
Asbestos related payments, net of insurance recoveries		(22,896	)		(16,360	)		(35,621	)		(27,485	)
Total provided by operating activities		31,369			47,086			15,203			63,904
Investing Activities:
Capital expenditures		(10,144	)		(4,271	)		(18,282	)		(8,390	)
Proceeds from disposition of capital assets		(23	)		42			4,530			42
Payment for acquisition, net of cash acquired		—			—			—			(51,167	)
Proceeds from divestiture		—			—			1,000			—
Total used for investing activities		(10,167	)		(4,229	)		(12,752	)		(59,515	)
Financing Activities:
Dividends paid		(13,385	)		(11,815	)		(26,859	)		(23,558	)
Reacquisition of shares on open market		(20,000	)		(9,990	)		(49,999	)		(9,990	)
Stock options exercised - net of shares reacquired		4,472			7,675			17,024			12,389
Excess tax benefit from stock-based compensation		1,407			578			5,359			969
Change in short-term debt		(454	)		(87	)		(530	)		(3,133	)
Total used for financing activities		(27,960	)		(13,639	)		(55,005	)		(23,323	)
Effect of exchange rate on cash and cash equivalents		4,961			(13,273	)		10,978			(18,251	)
Increase (decrease) in cash and cash equivalents		(1,797	)		15,945			(41,576	)		(37,185	)
Cash and cash equivalents at beginning of period		233,162			319,584			272,941			372,714
Cash and cash equivalents at end of period	$	231,365		$	335,529		$	231,365		$	335,529

CRANE CO.

Order Backlog

(in thousands)

	June 30,			March 31,			December 31,			September 30,		June 30,
	2011			2011			2010			2010		2010
Aerospace & Electronics	$	431,799		$	454,559		$	431,467		$	401,585	$	394,554
Engineered Materials		13,087			13,826			11,831			11,367		12,496
Merchandising Systems		26,898	*		25,008	*		30,170	*		18,044		20,346
Fluid Handling		323,045			305,255			271,825			266,578		257,840
Controls		30,323			24,015			22,354			27,575		28,711
Total Backlog	$	825,152		$	822,663		$	767,647		$	725,149	$	713,947

* Includes Order Backlog of $6.2 million at June 30, 2011, $5.3 million at March 31, 2011 and $8.4 million at December 31, 2010 pertaining to the 2010 acquisition of Money Controls.

CRANE CO.

Non-GAAP Financial Measures

(in thousands)

	Three Months Ended						Six Months Ended
	June 30,						June 30,
	2011			2010			2011			2010
CASH FLOW ITEMS
Cash Provided from Operating Activities before Asbestos - Related Payments	$	54,265		$	63,446		$	50,824		$	91,389
Asbestos Related Payments, Net of Insurance Recoveries		(22,896	)		(16,360	)		(35,621	)		(27,485	)
Cash Provided from Operating Activities		31,369			47,086			15,203			63,904
Less: Capital Expenditures		(10,144	)		(4,271	)		(18,282	)		(8,390	)
Free Cash Flow	$	21,225		$	42,815		$	(3,079	)	$	55,514

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 principal 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.