CR - Earnings call transcript Q3 2018

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Operator

Greeting, and welcome to Crane's Third Quarter 2018 Earnings Conference Call. [Operator Instructions].

As a reminder, this conference is being recorded. It is now my pleasure to introduce your host, Jason Feldman, Director of Investor Relations. Thank you, sir, you may begin

Jason Feldman

good and operator, you, day, everyone. Thank our to Third Quarter Call. Conference Release Earnings XXXX Welcome Director Relations. of Feldman, Jason I'm Investor On our Rich call our Financial President this morning, we Chief Officer. Credit have: Executive Officer; and Maue, Chief and our Max Mitchell,

will prepared after few questions. which with to remarks, respond start off will We call a our we

release statements. our comments the the some in at to of you the report, available on reconciled language at that Just tables on subsequent to Investor call refer are a in the filings will accompanying reminder press call, in numbers may during end which to are forward-looking We the this the the we both of our and our XX-K of and statements. be non-GAAP earnings numbers, www.craneco.com Relations bottom make annual we include also presentation, some forward-looking pertaining website at GAAP our section. cautionary release using the comparable and which slide Also

the Max. Now me over turn let call to

Max Mitchell

you, Thank Jason.

Our including of increased growth, Acquisitions X% with million excluding strong all where quarterly by growth sales X% last three offset partially XX%, of Record $XXX record XX points across exchange. foreign our XXXX strength we $X.XX, platforms. reported in growth third EPS, half sales into year. the global continued items XX% compared quarter, of of core up to the special contributed start of of first unfavorable

Crane. Aerospace $XXX quarter, our profit, Electronics near special million. to expect to XX.X%, be of core we last the expected. year, better from to guidance full & than outlook record our a to XX% new were margins last items, business X% excluding of the performed Operating for also midpoint range Compared For Operating sales increased X%. year our

further also Crane at Currency. We saw strengthening

year earnings track major are guidance faster than our full from Handling to well, markets benefiting repatriated on Other are end reductions markets strength. showing cash. in with continued debt Fluid meet short-term modestly using and In payment performing expected addition,

to for We to the the the and all full managing narrowing outlook to midpoint Considering the range our tariff EPS impacts. expect able be raising the and we in and guidance adjusted are offset are effectively by of performance and of current rest of year a third quarter we year, to our inflation $X.XX $X.XX headwinds, $X.XX. our

year. are $XX million $XXX improving million We certainly flow generally after by $XXX in $XX We this from quarter. free to contribution million, our also raising discretionary million benefited guidance cash a pension even the markets end to

innovation rates focused great at markets quarter. leading are the improve out-grow we on creation. most been market. reflects that strong actions performance focus also However, excellence our for continued modest operational our and to Handling our pace, results initiatives shareholder our Fluid extremely substantial businesses. and intensely across End we execution and Crane above in a continue the years. and steadily continue year-to-date and higher in we capital growth margins, on consistency resulting market financial value of And to have driving had a to Disciplined is at deployment

very announced continue as our we and And our of and are full for we expansion markets volumes to to previously With original in Over ahead the tracked XX.X% original year in the on margin repositioning our course business the well-positioned years and XXXX, we have guidance. execute execution, achieve these recover, plans. XX% margin have to room our quarter, solid expectations. we margins delivered closely further as

and ramp. future segment. our had had awarded new in highlighting narrow-body day a last Technologies of to improve. Engineered demand Currency, guidance and successes at continue great Investor Merchandising given now many full Aerospace month for our spending Deliveries event year a this Melbourne, to exceed and Day potential lastly, Solid new new Crane Payment opportunities to where continues and performance quarter modestly this correction. programs related with you we for expect activity to RV And lot accretion our We with prior & within outlook platforms for the $X.XX channel the year. & were Electronics Pennsylvania there's a the exciting projects. a We been remained Materials, of also inventory a soft full and continued super

of end for our However, and let we margins the demonstrating the Rich, our are it on despite very well-positioned commentary. operating for cost, In to with and solid this deliver I'm so results material additional very our you turn summary, to over financial guidance updated XXXX. markets we pleased deliver overall weak continue to execution. far year, rising some strength me

Richard Maue

morning. Orders After compared approximately year-over-year in increased by the to declined unfavorable third backlog it foreign Handling start was million slide exchange XXXX exchange Fluid to last impact. Good $XXX in compare offset core adjusting margins $XXX increased small of the partially segment third a for third Thanks, as but X%, XX.X%. year. our for X%, increased special of of million margins to with and point driven operating increased than I'll sequentially improvement Handling more the quarter and volume, last comments, by quarter, the The the sales to of excluding impact year. Fluid XXXX, which of release quarter the X.X% presentation. adjusted higher primarily which reflecting XX% $XX offset with items, million, quarter of foreign pricing, outlined divestiture material operating of foreign basis improved compared XX% productivity Max. sales XXX In also growth and sequentially profit X% costs. exchange, of third and press X%

tariffs to will able of pressure commodity any still margins be to offset this incremental segment. adjusted on We continue or that and XX% to are from achieve costs, guidance we original believe we our in operating track

strong but underlying impact very to compared sales its Merchandising acquisition. $XXX a last payment of growth from driven specific from modestly continues & we we as seeing unfavorable large shipments see addition, core with in Currency segment's of of for seasonal strongest X% to margins Electronics, and year. is with at uptick of growth lower-funded fourth core sales business The our that to core most across is of & driven year, to commercial Aerospace exceed partially positive the increased as the Overall, normal the business do incremental for our Crane strength basis year currency be and guidance The growth conditions XX.X%, well Technologies, down also primarily large increased is In the XXX $XX XXXX by year sales quarter. Aerospace higher Merchandising than business including performance Electronic year, compared as for customer. year, to XX%, full vertical & this we spares. XXX by a expected. expect XX.X%. military microwave of X% increased of Systems last points perform X.X% by and XX% are and increased end-market markets, points pleased with guidance continued very $XXX exchange. offset XX% original very likely a Segment million margin are At X% prior the foreign partially operating full profit in to The Segment the increased operating year sales. Total profile expectations. driven margins to million Payment last to typically by XX% sales to acquisitions sales to by particularly again, sales next XX%, offset million. from ahead commercial likely our of aftermarket up XXX for strong projects, operating improved and basis engineering OE year Total and quarter aircraft XX.X%, the stronger sales continues sales

However, to of of expect the quarter Engineered our decline margins original guidance quarters two margins XX.X%. volumes margins Materials the primarily vehicle strong but in million, extremely offsetting sales a ahead aftermarket by sales, full $XX with fourth XX% price lower for and with sales decline material after well were decreased year cost productivity we sequentially Operating XX.X%, to in recreational market. but inflation. driven to reflecting

solid in a in seasonality, really our team. we fourth and execution quarter. normal of with by quarter margin the Consistent expect decline sales Another

on detail and company total our results to now guidance. Turning more

third adjusted as XX.X% and rate third last quarter to expected of was quarter tax the year. in Our XX% compared

expect the now tax We XX.X%. sequentially and approximately quarter, expect year the rate in of tax rate we to fourth full a decline

$X performance of was million. last receive included $XXX flow the For future paydown free flow $XXX billion, approximately Crane quarter debt deduction cash million, $XXX quarter cash for at was than tax a rate, it a reflecting third XXXX, The receive tax the than Currency, higher contribution acquisition was the from using the to Free federal allowed discretionary end XX% months federal million of approximately nine contributions a lower first of at pension more old first $XX Total $X at this because statutory than all us the rate. advantageous repatriated year. lower last million million at reflecting of end new quarter the unplanned the but the period up same while of contribution third the debt approximately cash. of timing year, deduction

$X.XX XXXX Aerospace we rate. to interest and mentioned, guidance range the Currency, along and $X.XX tax slightly expense primarily modestly guidance, by Max Crane incremental The midpoint Electronics of As lower-than-expected excluding strength compared are to reflects of raising with EPS to at items $X.XX our narrowing prior $X.XX of a guidance and increased & $X.XX. special to lower a

to million despite range We to Operator, cash $XXX are free million, a ready $XXX now $XX million guidance our $XX we of discretionary first by question. the also raised million to pension contribution. our flow take

Operator

Instructions]. [Operator

with of D.A. question Our from Summerville first comes line Matt the Davidson.

Matt Summerville

backlog end of what business terms First of little in orders, some market type context geographical you're funnel, the seeing that provide just of terms maybe Handling in Fluid your of in kind of could please? a color, in all, you stuff, color of

Richard Maue

Matt. Sure,

out a a perspective, that growth to coming in the with good the pace saw regions. again, the Year-over-year we coming growth, in process from chemical would most first-half. MRO first geographic and United of particularly continues overall, markets space in say improvement, half, modest States orders consistent the say would of with a steady very I through consistent we and what So across show trend particular. the order with I saw

which Pacific, to well is also coming as projects this last particularly we've order those quarter. doing levels remain time, United -- what in the chemical, the the half, bit I talking improvement trend end from first first of than little and than And markets lower bit and themselves, was Specific Middle China, the saw pretty for Europe, at we in Pacific, what Asia been continuing fairly mid-sized weak. again, year smaller- the with to remain first Middle and East East to good, modest the out Asia would about. consistent little half a better there States. saw saw just continues first a and we in the trend in a refining in that say particularly power we

Matt Summerville

my And margin feel with as sizable that margins us Payment follow-up core segment? in able Merchandising maybe improvement & question, been then achieve you're relatively change sequential business to where give your the you of Technology talk revenue? context about And in small a how in a can the pretty would've incremental

Richard Maue

Yes. your would XX.X% -- point, here I had, was now in proceeding has quarter. been to so our I or to the that up business, and say in the jumped Overall, quarter or XX.X% We in that the performance first XX.X% think, well. margins it we very

most segment. I quarter the bit meaningful and margin better the space, perspective. a then our in in a in little performance say, doing that from Payment in impact Crane really solid Currency, So being would

Operator

question next from Jones the line Stifel. Our of with Nathan comes

Nathan Jones

Handling could new I the pension on the stuff margins start If since best the X here, is XX.X% XXXX. Fluid accounting

of had kind talk revenue about need kind you back of would expect guys would peak in to need of incremental business you lower should to we business. prior bit to said margins level a you fairly maybe forward? think get revenue that kind kind What I get margins Can of level a that of of in little that you to what level? going significantly

Richard Maue

Sure, Nathan.

pressures commodity know, The an in the teams the sure. performance cost the just segment you of and year-to-date. performing In with performance across extremely pleased we're quarter pressures, the for as yes, face input well. other material exceptional all the So,

we is. As of on we of repositioning and the XXXX. We layer points top question of going to leverage. XX your as top forward the points potential, that But think really I of normal business see core think on margin about just about that, benefits sort XX this then of will is that what think

need pace to face margin that to to we're level us around just so be as next of And we're gets our, pretty but come excellent in call something probably as we the what yet, revenues We're input I -- leverage that would and with such. some like going off the high XX% achieve target. momentum as it, progress profile sticking and think that at say or costs making certainly, that to year. mid-teen about headwinds not necessarily significant of for

Nathan Jones

Just price-cost you're I a comments But made just could And us that clearly, here. tend about a that you about guys to maybe put that believe finer just not the price-cost are on to covering it that concerned kind seeing issue. portfolio, and all if that on have issue, investors where with it? think are have of would stuff couple much of you a point clear be tariffs you price-cost of across of

Richard Maue

Sure.

well, and our understood comments covering prior not seeing see And it, from are were of as results can year-to-date, our So of along mitigating a you and over and more significant in I at quarter Handling, think dealing impacts the and that think well -- at I from the we're in is with material all line that here well particularly been is cost perspective, it's exposure teams impact. our as profile where our the XX.X% tariffs. little XX% margin third well OP. quarter, which a inflation is the seeing we're of really XX%, over as as overall the most Fluid

well. third with things little in perspective. peel from aluminum, Handling of that bit about copper dealing with bit, back like XX.X% if and fairly It's a And steel, that iron, we're tariffs inflation within here pig So is our the a profile that again, really overall like I material areas a little excluding business. Fluid the of margin a quarter, XX% cost

tariff full $X tariff of as what's XX% well. a quick on the in point as Fluid give see tariff also On -- we a okay? -- I'll impact a from view, impacting just of perspective, from And million just a Handling, you Probably of year from total point color tariff XXXX some total. from is is it us within view the south of

on but been or not deal I So than material clearly factor it's and just a say, side, certainly, tariff in in lesser cost the much would to us that being scope with Technologies, for in pressure, overall significant think XXXX relevance in I a overall able thinking impact would be which pretty Across from oil way. If business, increases Electronics, Payment we & the Aerospace next it's of & where meaningful rest costs. about the the the Materials, we're is modest in the prices. higher biggest Merchandising material see Engineered

Handling. to of million million overall tariffs, less $XX total step Fluid mitigating in actions if overall it. really when you're the XXXX you now that 'XX And in against $XX material in Fluid. So well. the going would roughly say, million about thinking I any little back, and I dealing think and someplace XX%, on year impact bit you it's rollover of about most think than tariffs, in a between current we're see million we're just $X than about in to it less $X probably without also On exposure, think When being with total

So going we're obviously, to happen. not that let

that understand picture hopefully on materials inflation. helps overall and you So the

Nathan Jones

next Merchandising Payment It we investors then Payment & does. did be in the take And is Crane guidance fail segment visibility from just projects down hole? face be customer is there that shipping have And XXXX? we that comp that some XXXX? number to question guys large year, another customer to any for really other again Or revenue in Merchandising, tough you Currency probably get that then, & you in that or should at any to a revenue? there up contract replace all you on potentially going in have doesn't to to XXXX? expecting fill Do in could out it a that contract large more Are that guys if

Max Mitchell

is Yes, Nathan, this Max.

to anything. of ask me hit miss again try Let and couple we a if points,

said with to paint $X.XX share on with achieving the very on I'd growth clear $X, Crane thing and have path. core with self-help, a still benefit, Day, as the from $X that we tax confident we Currency the we feel by accretions XXXX, with of EPS that vision is, first The a Investor of

question, So sight line that what painting of have that clearly I would longer-term of towards. start answering vision picture we the of

we XXXX impact Now an XXXX. back in year on the after into exceptional

visit of ready starting about are We to all XXXX businesses our plan for week. next

continues the And expectation to so we're positively. to customer you time speak that going be really in year. Right that dialing now, spending growth next for earnings impact

significant to strong XXXX. XXXX. not increase about feel It's continue positive to move have negotiations We is the There's we still we good a in contribution uncertainty There earnings. in. on some very forward, baked as

line that -- continues expectations that that. There's that not number. to have that will expectations it there 'XX, it There into as in sight We risk as of a clear continue. whole well are

got our out work us. for we've So cut

I away year-over-year basis, challenges year-over-year of in have a on growth. think terms if immediately, it go we were to some would then clearly,

up However, XXXX. Investor in line sight some expectations know, forward call longer-term Rich, that There's tighten that dollar or year in the need Nothing of EPS the out you'd and do I point next next look for to view. accretion by well detail have we changes to more timing you cyclicality on and we on still clear our question? as -- Nathan's as don't both that anything have on Day. much communicating some

Richard Maue

covered to would our worth couple Yes, -- increase so Nathan, is, And the pennies worried customer. the the it add terms you're in in happens a 'XX only we're if were in the at or about bit year, because in risk, little that extent I range current given to of at all direction, some a think our what the what that with progress perhaps worried with of difficult is of thing regard. guidance Max I maybe downside moving a of things not related and guidance, that question the your getting to is

Operator

the next Partners. Research Vertical Brett comes line with Linzey Our from of question

Brett Linzey

to maybe backlog Payments more quarter specifically, talk the Just growth. Day. driving stick parts then about opportunity you really with And that the at business recent the want of the of Investor strong Could guys solution the you business, another just highlighted Paypod uplift?

million pipeline launch. just provide in of broader or six and sales specific update Any you can color you or $XX maybe any about mentioned themes think weeks the there's I opportunities? the then so

Max Mitchell

since update not Malvern, the continues, a in had meeting we significant Paypod Brett.

have We grow. continues funnel -- the to

have executed have some on. that sales already been We

that taking in right leveraging, stories field success learnings sales have customers the place is providers. force that are dedicated to the OEMs We now, end we're and a that roadshow taking

So all there. with we solid and consistent what communicated

of the end market quarter, from from one year-over-year generally except still, large really terms retail, trends, the last the year. impact standpoint across we But within which color, them. strength a customer had is the really positive Paypod board sales In for of being forward-looking impact

would that retail coming I standpoint. vending; in On really strength the a in say from and transport the quarter financial order an front, order services, and being gaming weaker through little

Brett Linzey

investment the see were beverage in it stubborn be is the good. the are noted market. in in connectivity a you digital cold been there, to And starting of great. and the on it That what's to quarter. the core then capital growth color maybe would side, other Or you be contributed a maybe contributors that Any on in versus slide an up-selling? inflection What Okay, finally trends Merchandising, players? from some pretty appears previous turn to

Richard Maue

Yes.

difficult which this point It from do of overall as profile of growth view, expected that preceding you We the we're see. pleased more business. -- within had a our were have that one difficult. contribute I embedded to or lumpiness a core think to that's bit, quarters did some couple it very was

forecast X% but growth forward. of would as a of would here. we in business third more and seeing kind doing to So type something of bit about sort internally -- we moving that think pullback overall, I say here the I of think trajectory of line quarter, Full is look and and it at that the business item a this little operator, as timing expect did better,

Brett Linzey

maybe... then And great. Okay,

Richard Maue

do would say, pleased in performed there I just quarter. very able what we're well. performing we've also with to the teams The Yes, been --

Brett Linzey

target. Okay, just great. synergy ultimate Crane by And for realization was Currency. year million What by to be maybe original what's -- on there? cost -- synergies the more just the cost year-end one here, going the $XX of

Richard Maue

So just clear to be there.

we million transition about think number So through the we facility from the XXXX, $XX the had of... what was forecasted savings the you -- that facility Malta mentioned, if to our from Sweden of

Max Mitchell

$XX million. $XX to million It's

Richard Maue

I productivity net million think top additional of million to $XX want it's across of all period. that I say income, locations, then whole and through on that, again, of $XX an time

a and feel parsed of -- that business think we year, haven't that we those like Malta by of bit but frankly, Brett, So complete, of components as we on and in transition integration, when time the track the to it's we be we're hitting the will particular largely we spent XXXX. XXXX manage quarter will out end about through the necessarily targets on first be something as the quite by

Operator

Our Bank of from Lynch. America Liwag next the question with Kristine Merrill comes of line

Kristine Liwag

Max, on you color more more on for that's Fluid? coming? optimization? Is just growth repositioning preparation the more this that. Or We'd have this like is information to at can provide footprint

Max Mitchell

already? communicate we What did publicly

Richard Maue

-- mean, something that this in XXXX. I nothing was we new, So so I fourth quarter the can I of announced mean, was -- this Kristine. if It's back yes, right,

I think that's you're referring to. what

anything in year. We or current haven't today the announced new

our it's process in within business valve plan, So terms and yes. footprint moving optimization, largely around of to that, progress according about the

Kristine Liwag

in is Great. XX% margin items? after special operating And or Fluid, that before outlook this

Richard Maue

that. That in on -- part to full half expect items. that success of question XXXX. if second that's reason the half the had we've repositioning, the in part second your of amount special was that's of for of maybe in And a the there is that Before terms in see the we modest around included savings, second

Kristine Liwag

on year and share win expected? that be by markets to wins. I growth as recall, outlook more Can And by market details segment, Great. you appreciated you for if market in expected really market you Fluid. the progressing environment driven I end provide is full revenue And that and share the your color competitive provided that you

Max Mitchell

of domestic needed new is higher some solution record, of in global of TOV upside on China, players been and solutions in the that The really like playing an -- a the pollution we solutions, but with is Yes, have manufacturers, being part which winning environment from are have enhanced where positioned focusing seeing is base, and we emission, they always trend winning that products the sound seeing, newer well. have through a the China with had same story, low-level I hate a emission to example with an space continue changing our broken and with our Kristine, position for do to us. requirements with in we're emission we've Historically, of emissions value-added customer even strong much because standpoint. we like a controls stringent launch

there, we're in also of we're Biologics, pharma-related businesses taking some we've that seen where great when NexGen success terms the which some capturing of share some our In share.

as which Some of our fertilizers, gives well. well solutions interesting some seen that color. the Europe. been see seen little the expansion, in as both MRO you that the of around as here a chain, of well bit in momentum end the the quarter, Hopefully, some with the to MDI drivers U.S. on as both Pesticides, as we've has demand we've more

Operator

Genuity. with Canaccord Herbert next of Our Ken line the question comes

Kenneth Herbert

Rich, any parses of the growth trends or color Aerospace you're aftermarket some a how of different third on in XX% provide you more little within commercial on versus & the within up quarter? I or Electronics with product that lines wondered, detail military And seeing. Max maybe the there, the out some commercial, can maybe

Richard Maue

here also I question. XXX, mean, see XXX, KC-XXX, Well, If strength well. Ken. a you of was even of quarter say But continued on XXX, year-over-year military did the the saw in some as a percentage, of was in on spares another basis. your what growth, aftermarket also C-XXX. majority around as M, nature was and But component, narrow-body military. solid we see we the as the I big spares the programs the commercial did increase Sure, like I to AXXX had the we mentioned, IP

little So quarter, experience second in bit following say. same would it's we I a broad, the the had again,

-- about little XXXX. think also a aftermarket pause a in balance the causes bit you in expect to in year aftermarket exciting, cautious, think quarters and substantial we're about but we of more a with row forward, as we bit is little here about As going terms to pretty what growth two the think as of it's we

So on where it. we're hopefully some gives that you perspective seeing

Kenneth Herbert

That's I quarter when in fourth the for aftermarket is I segment? think down and sequential mix guess on helpful. sort the of caution And margin what's guidance about quarter, fourth that your behind in the

Richard Maue

we that yes, be in Yes, saw forecasting the... downtick, but it's that strength not a driver modest the would to -- not we're exact here the same

Max Mitchell

it's concern a market. see mind for Max, not end over aftermarket orders. all -- this investors of that a it's the matter is timing. Keep not Ken, we just And in It's

we short exactly -- to time can the and difficult Our a cycle predict we have aftermarket be sales, surprised.

quarter. to quarters. forecasting the gone historic the for our were back surprised we pleasantly two more upside fourth for norm levels on think the I We've last

Kenneth Herbert

Okay, up. least do on quarter at know quarter, fourth is holding for top comps Because that the typically the quarter, on line C&I like in really like this sounds a easier that's easy top you the top very sounds bump is helpful. seasonal, -- the were but and line line or I obviously, nice outlook it but bottom it or fourth line,

Max Mitchell

That's correct.

Kenneth Herbert

that Have fiscal are military about from on money And older sense there and lumpy, greater terms be spent? the and into that change these carry finally you and aftermarket, then some about in side? be a budget maybe I urgency, think when again and clearly, you a Electronics, platforms of of in incremental you urgency sort greater now just something in KC-XXX have readiness spend still of is we know that but Okay. activity greater customers margins any could And as XXXX? you the sort been sensed standpoint the fiscal talk inflection within seeing of there place it any in can how your Aerospace of 'XX 'XX to or desire to is &

Max Mitchell

trend that clearly going -- around even Conversion And seeing something year is Power electrification. we're our longer-term now five beyond with out a the Solutions, horizon. that There's and it's this Solutions Power

that there's exciting and in -- clearly directed energy which so conversion our an development, and things in but where invest lot maintaining electrification there's terms of as our we're of in knowledge that continuing and and is bring technology activity So a forward, to uptick expertise of differentiation. seen around looking we power in have terms some we're we R&D,

other terms solutions overall our not side in on of some properly has any In the -- say of of just question I are the that military applied or certainly it although that that answer strength. business, if I strong commercial much may been as applications, as same is would and your level just inflection it trend both about of point general

Operator

[Operator Instructions].

Our next Seaport question Securities. of comes Global from Liptak Walter the from line

Walter Liptak

one better know if out dragged seems in small be or but we're wonder if the and just out on then one something has like stretches And could you those quarters. nearing to that's into if of a business. of ask couple there inventory is XXXX? no I'd end if I I anything's the one something the down yet. correction for this asked doing to wonder that it's Materials. I separate Engineered maybe

Max Mitchell

this the this business looked Walt, unit, detail. those market we in time, in I if be at questions and that point into at to asking the data and with facts going visiting end Right now, we're still same retail our see looking says that, So it it flat could it and is going 'XX. 'XX. would that's the read-through and we case, a fourth inventory sales in quarter digit mid-single correction that's to then bottom, are the up going to in into reach If continue to sales indicate expect

Investor think February see I you question, in our big guidance we're the we'll how exactly the have going for on that's and Day. that January more out in and play detail to

project watching expected. more very and that, that than have. retail longer Beyond gone a insight has that there to carefully sell-through lot on anticipated, than is anticipate. longer we to that we're not It's It end try all

Walter Liptak

sounds wonder about And terms the Okay. you're could right, cycle anything, I business on talk business? for if long you what Fluid over book/ship, any if and the And pricing All if versus versus to the of Handling, I changes? cycle seeing, could in good. long book/ship switch

Richard Maue

yes. So

Handling we So been growth process talk cycle the as the we portion pointing previously over where business, as of the and we've read-through saw a what communicated of Fluid quarter. be and backlog few of in quarters and the here about third expect long the growth, that's that lot quarter about as in the and the we backlog here think third we demonstrated what out, That's last side. the some we of in some had then really would fourth

mentioned I as earlier. trends, similar So

three earlier we long we cycle the portion, the first saw on in On would expect geographic the market quarters thing that that and end same outlined the outlooks.

good For as are looking the well. shorter cycle fairly things businesses, there

Canada, our construction as business are distribution East short the performance business cycle U.K. nonresidential in Building business up with in what supplying Crane and markets seeing in Canada, shorter type -- we're pleased cycle that in We from well end the Services space. our Middle as seen we've our the Supply that in

and a water but an know. business, -- business smaller as -- excellent and business you with fantastic have margins growing. excellent It's So then we a

the end serve that's end and that markets. So as channel industrial well building municipal we as market some

that both say overly I would of -- performing cycle and I expected short So the overall, would not portfolio say that that we're are that long would There's concerned portfolio well. one section with. and we as the of

Walter Liptak

the on Is improving long the Okay. business? pricing cycle

Richard Maue

yes, offset headwinds some from good job very the a product on there. new we on things an material that it's a of as to we're we're to -- to increased Yes, the costs, and development pricing, price well. perspective, order in But and need sorry, bringing doing market, we're commanding

a would of what overall, so at say trend the And started see the to year. we beginning I from continuing

Operator

like questions are turn Mitchell closing comments. in Mr. no There back Max over further queue. to the I'd to for the call

Max Mitchell

fourth your for update look providing January, to earnings report and time all forward when I you today. provide guidance. XXXX we Thank operator. quarter late our will in next the results you, Thank

our confident also in next investments. remain in disciplined will Day allocation, confident in New City improvement our confident capital our our operational confident February Event our in innovation in We hosting year. XX on outlook, growth be and continuous Investor Annual We and York

doing. confident As the you're late in "Always said, great Aretha what Franklin once be

doing interest confident you for and forward for day. going Thank that We as look and to we create call well not confident all. your for Crane you're value now will the guidance have be be to you great shareholders, may a XXXX. our in in as If ahead. not Thanks to next and remain continue it." we We execute years

Operator

Thank does Ladies conclude your this participation. and teleconference. gentlemen, you today's for

a time disconnect and at may day. this have You lines your wonderful

Crane NXT (CXT) 23 Oct 182018 Q3 Earnings call transcript