Crane Continues Trading Lower Following Q4 Results, 2016 Guidance

Shares of Crane Co. (NYSE: CR) were trading lower by 4 percent early Tuesday morning following the company's fourth quarter results and full year guidance on Monday.

Crane earned $1.12 per share in the fourth quarter on revenue of $680.6 million. Wall Street analysts were expecting the company to earn $1.10 per share on revenue of $692.50 million.

Crane noted that its sales fell 7 percent from a year ago, driven by unfavorable foreign exchange rates and a core sales decline of 3 percent.

Operating profit for fourth quarter was $104 million, up 16 percent from a year ago. However, excluding special items, operating profit for the quarter was $104 million - marking a decrease of 3 percent from the same quarter a year ago.

Looking forward to the full year fiscal 2016, Crane expects to earn $3.85 to $4.15 per share on revenue of $2.7 billion. Wall Street analysts were projecting the company to earn $4.27 per share on revenue of $2.75 billion.

"Long-term prospects remain bright: we are well positioned for the new aerospace programs launching over the next few years, we have the right product portfolio and cost position for an eventual recovery in Fluid Handling markets, and Payment & Merchandising is on track for continued sales growth and margin expansion," said Max Mitchell, Crane Co. President and Chief Executive Officer.

"For 2016, however, the challenging conditions we faced in 2015 will persist, with the potential for further deterioration in our Fluid Handling end markets," Mitchell said. "While we plan to realize over $25 million in repositioning and synergy savings, this benefit will be more than offset by Fluid Handling end market weakness driven by sustained low oil prices and general commodity deflation, slowing global industrial demand, and continued foreign exchange headwinds. Continued new program investments, along with product mix, will also temporarily limit operating leverage at Aerospace & Electronics during 2016."