Business Wire | Jan 24, 2022 05:01PM EST

Crane Co. Reports 2021 Results and Provides 2022 Guidance

Jan. 24, 2022

STAMFORD, Conn.--(BUSINESS WIRE)--Jan. 24, 2022--Crane Co. (NYSE: CR), a diversified manufacturer of highly engineered industrial products, reported fourth quarter and full-year 2021 financial results, and provided its full-year 2022 outlook.

Max Mitchell, Crane Co. President and Chief Executive Officer stated: "I remain so incredibly proud of how all of our global teams across Crane performed throughout the challenges of the last two years. Our success reflects the dedication and commitment of our 11,000 associates who embody the best of Crane's strong culture, and who create value for our customers and all of our stakeholders every day with their passion and innovation.

"That culture and passion was clearly apparent in our phenomenal 2021 results, with record adjusted EPS, operating margin, and free cash flow despite the year's difficult and uncertain environment. We also made further progress positioning Crane for sustainable value creation in the decade ahead through continued innovation and investments in our technology roadmaps that will drive organic share gains and outperformance vs. peers as our end markets continue to recover.

"Looking to 2022, our performance momentum continues, and we are confident in the strength of our three growth platforms and our demonstrated ability to successfully deliver strong results in the current environment. Despite continued uncertainty related to COVID and other operating conditions, we are introducing initial 2022 adjusted EPS from continuing operations guidance of $7.00-$7.40, reflecting 10% growth at the midpoint compared to our record 2021 earnings. That earnings momentum, along with consistently strong cash flow, will enable us to drive further value through continued organic investments, as well as through capital deployment and inorganic growth in 2022 and beyond."

Full Year 2021 Results from Continuing Operations

Full year 2021 GAAP earnings from continuing operations per diluted share (EPS) of $6.66, compared to $2.77 in 2020. Excluding Special Items, full year 2021 EPS from continuing operations was $6.55, compared to $3.53 in 2020. (Please see the attached Non-GAAP Financial Measures tables for a detailed reconciliation of reported results to adjusted measures.)

Full year 2021 sales were $3.2 billion, an increase of 15% compared to the prior year. The sales increase was comprised of a $343 million, or 12%, increase in core sales, a $71 million, or 3%, benefit from favorable foreign exchange, and a slight benefit from an acquisition.

Full year 2021 operating profit was $502 million, compared to $240 million in 2020. Operating profit margin was 15.8%, compared to 8.7% last year, with the improvement driven primarily by higher volumes, as well as favorable mix, savings from 2021 cost actions, and substantially lower repositioning costs. Excluding Special Items, full year 2021 operating profit was $501 million, compared to $300 million last year. Excluding Special Items, operating profit margin was 15.8%, compared to 10.8% last year. (Please see the attached Non-GAAP Financial Measures tables for a detailed reconciliation of reported results to adjusted measures.)

Summary of Full Year 2021 Results from Continuing Operations

Full Year Change

(dollars in millions) 2021 2020 $ %

Net sales (GAAP) $ 3,180 $ 2,761 $ 419 15 %

Core sales 343 12 %

Foreign exchange 71 3 %

Acquisitions 5 - %



Operating profit $ 502 $ 240 $ 262 109 %

Operating profit, before special Items $ 501 $ 300 $ 201 67 %(adjusted)*



Operating profit margin 15.8 % 8.7 % 710bps

Operating profit margin, before special 15.8 % 10.8 % 500bpsitems (adjusted)*

*Please see the attached Non-GAAP Financial Measures tables

Cash Flow and Other Financial Metrics

Cash provided by operating activities from continuing operations during full year 2021 was $467 million, compared to $284 million in 2020. Capital expenditures in 2021 were $52 million, compared to $33 million in 2020. Free cash flow from continuing operations (cash provided by operating activities from continuing operations less capital spending) for 2021 was $415 million, compared to $251 million in 2020.

The Company held cash and short-term investments of $479 million at December 31, 2021, compared to $581 million at December 31, 2020. Total debt was $842 million at December 31, 2021, compared to $1,219 million at December 31, 2020.

Rich Maue, Crane Co. Senior Vice President and Chief Financial Officer, added: "Reflecting confidence in our long term outlook, and supported by continued robust free cash flow and a very strong balance sheet, during the fourth quarter we repurchased just under $100 million of our stock, leaving approximately $200 million remaining under the share repurchase authorization that we announced in October 2021. In addition, we also announced today that our Board of Directors declared a 9% increase in our quarterly dividend to $0.47, from $0.43, per share. Our balance sheet strength supports these returns of cash to our shareholders, as well as providing substantial financial flexibility for our active pursuit of acquisitions, and a continued evaluation of further capital deployment options to drive shareholder returns."

Fourth Quarter 2021 Results from Continuing Operations

Fourth quarter 2021 GAAP earnings from continuing operations per diluted share (EPS) of $1.16, compared to $0.73 in the fourth quarter of 2020. Excluding Special Items, fourth quarter 2021 EPS from continuing operations was $1.25, compared to $0.92 in the fourth quarter of 2020. (Please see the attached Non-GAAP Financial Measures tables for a detailed reconciliation of reported results to adjusted measures.)

Fourth quarter 2021 sales were $771 million, an increase of 13% compared to the fourth quarter of 2020. The sales increase was comprised of a $86 million, or 13%, increase in core sales, and a $1 million benefit from favorable foreign exchange.

Fourth quarter 2021 operating profit was $87 million, compared to $54 million in the fourth quarter of 2020. Operating profit margin was 11.3%, compared to 7.9% last year, with the improvement driven primarily by higher volumes and favorable mix. Excluding Special Items, fourth quarter 2021 operating profit was $93 million, compared to $70 million last year. Excluding Special Items, operating profit margin was 12.1%, compared to 10.2% last year. (Please see the attached Non-GAAP Financial Measures tables for a detailed reconciliation of reported results to adjusted measures.)

Summary of Fourth Quarter 2021 Results from Continuing Operations

Fourth Quarter Change

(dollars in millions) 2021 2020 $ %

Net sales (GAAP) $ 771 $ 684 $ 87 13 %

Core sales 86 13 %

Foreign exchange 1 - %



Operating profit $ 87 $ 54 $ 33 62 %

Operating profit, before special Items $ 93 $ 70 $ 23 33 %(adjusted)*



Operating profit margin 11.3 % 7.9 % 340bps

Operating profit margin, before special 12.1 % 10.2 % 190bpsitems (adjusted)*

*Please see the attached Non-GAAP Financial Measures tables

Fourth Quarter 2021 Segment Results

All comparisons detailed in this section refer to operating results for the fourth quarter 2021 versus the fourth quarter 2020.

Aerospace & Electronics

Fourth Quarter Change

(dollars in millions) 2021 2020 $ %

Net sales $ 158 $ 143 $ 15 10 %



Operating profit $ 21 $ 13 $ 8 60 %

Operating profit, before special items $ 21 $ 15 $ 6 40 %(adjusted)*



Operating profit margin 13.1 % 9.0 % 410bps

Operating profit margin, before special 13.1 % 10.3 % 280bpsitems (adjusted)*

*Please see the attached Non-GAAP Financial Measures tables

Sales of $158 million increased 10% compared to the prior year. Operating profit margin improved to 13.1%, from 9.0% last year, primarily reflecting higher volumes and favorable mix. Aerospace & Electronics' order backlog was $460 million at December 31, 2021 compared to $491 million at December 31, 2020.

Process Flow Technologies

Fourth Quarter Change

(dollars in millions) 2021 2020 $ %

Net sales $ 299 $ 258 $ 41 16 %

Core sales 39 15 %

Foreign exchange 2 1 %



Operating profit $ 42 $ 24 $ 18 75 %

Operating profit, before special Items $ 43 $ 28 $ 15 55 %(adjusted)*



Operating profit margin 13.9 % 9.2 % 470bps

Operating profit margin, before special 14.3 % 10.7 % 360bpsitems (adjusted)*

*Please see the attached Non-GAAP Financial Measures tables

Sales of $299 million increased $41 million, or 16%, driven by a $39 million, or 15%, increase in core sales, and a $2 million, or 1%, benefit from favorable foreign exchange. Operating profit margin increased to 13.9%, compared to 9.2% last year, primarily reflecting higher volumes. Excluding Special Items, operating margin increased to 14.3%, compared to 10.7% last year. Process Flow Technologies order backlog was $358 million at December 31, 2021 compared to $313 million at December 31, 2020.

Payment & Merchandising Technologies

Fourth Quarter Change

(dollars in millions) 2021 2020 $ %

Net sales $ 314 $ 283 $ 31 11 %

Net sales, including acquisition-related 314 285 29 10 %deferred revenue*

Core sales 32 11 %

Foreign exchange (1 ) - %



Operating profit $ 60 $ 32 28 90 %

Operating profit, before special Items $ 58 $ 42 16 38 %(adjusted)*



Operating profit margin 19.1 % 11.2 % 790bps

Operating profit margin, before special 18.5 % 14.7 % 380bpsitems (adjusted)*

*Please see the attached Non-GAAP Financial Measures tables

Sales of $314 million increased $31 million, or 11%, driven by a $32 million, or 11%, increase in core sales, partially offset by a $1 million impact from unfavorable foreign exchange. Operating profit margin increased to 19.1%, from 11.2% last year, primarily reflecting favorable mix, higher volumes, and the absence of repositioning costs. Excluding Special Items, operating profit margin increased to 18.5%, from 14.7% last year.

Introducing 2022 Guidance

We are introducing full year 2022 GAAP EPS from continuing operations guidance in a range of $6.85-$7.25. Excluding Special Items, full year 2022 EPS from continuing operations guidance is $7.00-$7.40. Sales are expected to be approximately $3.3 billion with core sales growth of 4% to 6%. Additional details of our guidance are shown in the following table (Please see the attached non-GAAP Financial Measures tables.)

Full Year 2022 Guidance Details (Continuing Operations Basis)

($ Millions, except per share amounts)

Net sales ~$3,300

Core sales growth +4% to +6%

FX translation (1.5%)

Diluted earnings per share, GAAP $6.85 to $7.25

Diluted earnings per share, non-GAAP (adjusted) $7.00 to $7.40

Operating cash flow $410 to $450

Capital expenditures $60

Free cash flow $350 to $390

Corporate expense ~$75

Adjusted tax rate ~21%

Non-operating expense, net ~$26

Full-year diluted share count ~57 million

We will provide additional details about our full-year guidance on the Company's fourth quarter 2021 earnings conference call on January 25, 2022 and in the slide presentation accompanying that call, as well as at the Company's Annual Investor Day conference scheduled for March 30, 2022.

Additional Information

Share repurchases under the previously disclosed authorization may occur from time to time in open market transactions at prevailing prices or by other means in accordance with federal securities laws. The timing and amount of any repurchases will be determined by the Company's management based on its evaluation of market conditions and other factors. There is no guarantee as to the number of shares that will be repurchased or the amount that will be spent on repurchases, and the repurchases may be extended, suspended, or discontinued at any time without prior notice at the Company's discretion. This press release is neither an offer to sell, or the solicitation of an offer to purchase, any securities.

Additional information with respect to the Company's asbestos liability and related accounting provisions and cash requirements is set forth in the Current Report on Form 8-K filed with a copy of this press release.

Conference Call

Crane Co. has scheduled a conference call to discuss the fourth quarter financial results on Tuesday, January 25, 2022 at 10:00 A.M. (Eastern). All interested parties may listen to a live webcast of the call at http://www.craneco.com. An archived webcast will also be available to replay this conference call directly from the Company's website under Investors, Events & Presentations. Slides that accompany the conference call will be available on the Company's website.

Crane Co. is a diversified manufacturer of highly engineered industrial products. Founded in 1855, Crane Co. provides products and solutions to customers in the chemicals, oil & gas, power, automated payment solutions, banknote design and production and aerospace & defense markets, along with a wide range of general industrial and consumer related end markets. The Company has four business segments: Aerospace & Electronics, Process Flow Technologies, Payment & Merchandising Technologies, and Engineered Materials. On May 24, 2021, Crane announced that it had signed an agreement to divest its Engineered Materials segment; that sale is pending, subject to customary closing conditions and regulatory approvals. Crane Co. has approximately 11,000 employees in the Americas, Europe, the Middle East, Asia and Australia. Crane Co. is traded on the New York Stock Exchange (NYSE:CR). For more information, visit www.craneco.com.

This press release may contain forward-looking statements as defined by the Private Securities Litigation Reform Act of 1995. These statements are based on the management's current beliefs, expectations, plans, assumptions and objectives regarding Crane Co.'s future financial performance and are subject to significant risks and uncertainties. Any discussions contained in this press release, except to the extent that they contain historical facts, are forward-looking and accordingly involve estimates, assumptions, judgments and uncertainties. There are a number of factors, including risks and uncertainties related to the ongoing COVID-19 pandemic, that could cause actual results or outcomes to differ materially from those expressed or implied in these forward-looking statements. Such factors also include, among others: uncertainties regarding the extent and duration of the impact of the COVID-19 pandemic on many aspects of our business, operations and financial performance; changes in economic, financial and end-market conditions in the markets in which we operate; fluctuations in raw material prices; inflationary pressures; supply chain disruptions; the financial condition of our customers and suppliers; economic, social and political instability, currency fluctuation and other risks of doing business outside of the United States; competitive pressures, including the need for technology improvement, successful new product development and introduction and any inability to pass increased costs of raw materials to customers; our ability to value and successfully integrate acquisitions, to realize synergies and opportunities for growth and innovation, and to attract and retain highly qualified personnel and key management; the risks that any regulatory approval that may be required for the Engineered Materials divestiture is delayed or is not obtained, that the Engineered Materials divestiture does not close or that the related transaction agreement is terminated, or that the benefits expected from the Engineered Materials divestiture will not be realized or will not be realized within the expected time period; a reduction in congressional appropriations that affect defense spending and our ability to predict the timing and award of substantial contracts in our banknote business; adverse effects on our business and results of operations, as a whole, as a result of increases in asbestos claims or the cost of defending and settling such claims; adverse effects as a result of environmental remediation activities, costs, liabilities and related claims; investment performance of our pension plan assets and fluctuations in interest rates, which may affect the amount and timing of future pension plan contributions; and other risks noted in reports that we file with the Securities and Exchange Commission, including the Company's Annual Report on Form 10-K for the fiscal year ended December 31, 2020 and subsequent reports filed with the Securities and Exchange Commission. Crane Co. does not undertake any obligation to update or revise any forward-looking statements.

CRANE CO.Income Statement Data(in millions, except per share data)

Three Months Ended Twelve Months Ended December 31, December 31,

2021 2020 2021 2020

Net sales:

Aerospace & Electronics $ 158.1 $ 143.4 $ 638.3 $ 650.7

Process Flow Technologies 298.7 257.7 1,196.6 1,005.8

Payment & Merchandising 313.7 282.6 1,345.1 1,104.8 Technologies

Total net sales $ 770.5 $ 683.7 $ 3,180.0 $ 2,761.3



Operating profit:

Aerospace & Electronics $ 20.7 $ 12.9 $ 110.0 $ 100.7

Process Flow Technologies 41.5 23.7 182.5 97.7

Payment & Merchandising 60.1 31.7 307.5 100.6 Technologies

Corporate (35.2 ) (14.4 ) (97.7 ) (58.8 )

Total operating profit $ 87.1 $ 53.9 $ 502.3 $ 240.2



Interest income $ 0.3 $ 0.7 $ 1.4 $ 2.0

Interest expense (10.9 ) (13.9 ) (46.9 ) (55.3 )

Miscellaneous, net 3.3 4.2 20.4 14.9

Income from continuingoperations before income 79.8 44.9 477.2 201.8 taxes

Provision for income taxes 11.0 2.3 82.9 38.6

Net income from continuingoperations before allocation 68.8 42.6 394.3 163.2 to noncontrolling interests

Less: Noncontrolling interest - 0.1 - 0.1 in subsidiaries' earnings

Net income from continuingoperations attributable to 68.8 42.5 394.3 163.1 common shareholders

Income from discontinued 3.3 4.3 41.1 17.9 operations, net of tax ^1

Net income attributable to $ 72.1 $ 46.8 $ 435.4 $ 181.0 common shareholders



Earnings per diluted share $ 1.16 $ 0.73 $ 6.66 $ 2.77 from continuing operations

Earnings per diluted share 0.06 0.07 0.70 0.31 from discontinued operations

Earnings per diluted share $ 1.22 $ 0.80 $ 7.36 $ 3.08



Average diluted shares 59.2 58.5 59.2 58.8 outstanding

Average basic shares 58.4 58.1 58.4 58.3 outstanding



Supplemental data:

Cost of sales $ 482.5 $ 457.8 $ 1,938.9 $ 1,802.0

Selling, general & 200.9 172.0 738.8 719.1 administrative

Acquisition-related and - 2.7 - 12.9 integration charges^ 2

Transaction related expenses 6.8 - 8.2 - ^2

Repositioning related (gains) (0.8 ) 10.9 (9.6 ) 36.8 charges, net^ 2

Depreciation and amortization 29.8 31.2 119.5 123.8 ^2

Stock-based compensation 6.2 6.0 24.5 21.8 expense ^2



^1 The twelve-month period ended December 31, 2021 includes $20.6 million ofdeferred tax benefit associated with the pending disposition of the EngineeredMaterials segment.

^2 Amounts included within Cost of sales and/or Selling, general &administrative costs.

CRANE CO.Condensed Balance Sheets(in millions)

December 31, December 31, 2021 2020

Assets

Current assets

Cash and cash equivalents $ 478.6 $ 551.0

Accounts receivable, net 472.4 423.9

Current insurance receivable - asbestos 13.7 14.4

Inventories, net 440.9 429.7

Other current assets 118.1 137.3

Current assets held for sale 220.5 17.4

Total current assets 1,744.2 1,573.7



Property, plant and equipment, net 527.3 573.7

Long-term insurance receivable - asbestos 60.0 72.5

Other assets 742.6 757.5

Goodwill 1,412.5 1,437.7

Long-term assets held for sale - 199.9

Total assets $ 4,486.6 $ 4,615.0



Liabilities and equity

Current liabilities

Short-term borrowings $ - $ 375.7

Accounts payable 246.7 198.9

Current asbestos liability 62.3 66.5

Accrued liabilities 430.7 388.0

Income taxes 10.6 0.1

Current liabilities held for sale 44.9 27.4

Total current liabilities 795.2 1,056.6



Long-term debt 842.4 842.9

Long-term deferred tax liability 71.1 53.6

Long-term asbestos liability 549.8 603.6

Other liabilities 393.0 501.0

Long-term liabilities held for sale - 26.2



Total equity 1,835.1 1,531.1

Total liabilities and equity $ 4,486.6 $ 4,615.0

CRANE CO.Condensed Statements of Cash Flows(in millions)

Three Months Ended Twelve Months Ended December 31, December 31,

2021 2020 2021 2020

Operating activities from continuing operations:

Net income from continuingoperations attributable to $ 68.8 $ 42.5 $ 394.3 $ 163.1 common shareholders

Gain on sale of property - - (18.5 ) -

Depreciation and 29.8 31.2 119.5 123.8 amortization

Stock-based compensation 6.2 6.0 24.5 21.8 expense

Defined benefit plans and (2.0 ) (2.6 ) (8.0 ) (7.1 )postretirement credit

Deferred income taxes 15.2 8.5 10.8 16.0

Cash provided by operating 66.2 40.2 29.7 37.8 working capital

Defined benefit plans andpostretirement (6.7 ) (25.4 ) (29.4 ) (28.4 )contributions

Environmental payments, net (1.3 ) (1.3 ) (5.8 ) (4.2 )of reimbursements

Asbestos related payments, (15.3 ) (7.3 ) (44.9 ) (31.1 )net of insurance recoveries

Other (5.9 ) (4.9 ) (5.5 ) (7.6 )

Total provided by operatingactivities from continuing $ 155.0 $ 86.9 $ 466.7 $ 284.1 operations

Investing activities from continuing operations:

Payments for acquisitions, $ - $ (0.3 ) $ - $ (169.5 )net of cash acquired

Proceeds from disposition 0.4 0.6 23.6 4.4 of capital assets

Capital expenditures (26.4 ) (13.0 ) (51.7 ) (32.9 )

Purchase of marketable - (30.0 ) (10.0 ) (90.0 )securities

Proceeds from sale of - 60.0 40.0 60.0 marketable securities

Total (used for) providedby investing activities $ (26.0 ) $ 17.3 $ 1.9 $ (228.0 )from continuing operations

Financing activities from continuing operations:

Dividends paid $ (25.1 ) $ (25.0 ) $ (100.6 ) $ (100.4 )

Reacquisition of shares on (96.3 ) - (96.3 ) (70.0 )open market

Stock options exercised, 4.3 0.9 14.2 5.1 net of shares reacquired

Debt issuance costs - - - (1.3 )

Proceeds from issuance ofcommercial paper with - - - 251.3 maturities greater than 90days

Repayments of commercialpaper with maturities - (108.1 ) (27.1 ) (296.7 )greater than 90 days

Net repayments fromissuance of commercial - - - (76.8 )paper with maturities of 90days or less

Proceeds from revolving - - - 77.2 credit facility

Repayments of revolving - - - (77.2 )credit facility

Proceeds from term loan - - - 343.9

Repayment of term loan - - (348.1 ) -

Total (used for) providedby financing activities $ (117.1 ) $ (132.2 ) $ (557.9 ) $ 55.1 from continuing operations

Discontinued operations:

Total provided by operating $ 16.5 $ 14.5 $ 31.8 $ 25.4 activities

Total used for investing (0.8 ) (0.5 ) (2.2 ) (1.1 )activities

Increase in cash and cashequivalents from 15.7 14.0 29.6 24.3 discontinued operations

Effect of exchange rate on 0.2 20.4 (12.7 ) 21.6 cash and cash equivalents

Increase (decrease) in cash 27.8 6.4 (72.4 ) 157.1 and cash equivalents

Cash and cash equivalents 450.8 544.6 551.0 393.9 at beginning of period

Cash and cash equivalents $ 478.6 $ 551.0 $ 478.6 $ 551.0 at end of period

CRANE CO.Order Backlog(in millions)

December September June 30, March 31, December 31, 30, 31, 2021 2021 2021 2021 2020

Aerospace & $ 459.8 $ 478.5 $ 472.9 $ 481.6 $ 491.2Electronics

Process Flow 357.9 351.4 344.1 325.4 313.4Technologies

Payment &Merchandising 438.0 387.9 374.7 337.0 347.6Technologies

Total backlog $ 1,255.7 $ 1,217.8 $ 1,191.7 $ 1,144.0 $ 1,152.2

CRANE CO.Non-GAAP Financial Measures(in millions, except per share data)

Three Months Ended December 31,

2021 2020 % Change

$ Per Share $ Per Share (on $)

Net sales (GAAP) $ 770.5 $ 683.7 12.7 %

Acquisition-related - 2.5 deferred revenue^1

Net sales beforespecial items $ 770.5 $ 686.2 12.3 %(adjusted)



Operating profit $ 87.1 $ 53.9 61.6 %(GAAP)

Operating profit 11.3 % 7.9 % margin (GAAP)



Special itemsimpacting operating profit:

Acquisition-related - 2.5 deferred revenue ^1

Acquisition-relatedand integration - 2.7 charges

Transaction related 6.8 - expenses

Repositioning related (0.8 ) 10.9 (gains) charges, net

Operating profitbefore special items $ 93.1 $ 70.0 33.0 %(adjusted)

Operating profitmargin before special 12.1 % 10.2 % items (adjusted)



Net income fromcontinuing operations $ 68.8 $ 1.16 $ 42.5 $ 0.73 61.9 %attributable to commonshareholders (GAAP)



Special items, net oftax, impacting netincome from continuing operationsattributable to commonshareholders:

Acquisition-related - - 1.8 0.03 deferred revenue^ 1

Acquisition-relatedand integration - - 2.1 0.04 charges

Transaction related 5.9 0.10 - - expenses

Repositioning related (0.6 ) (0.01 ) 8.5 0.15 (gains) charges, net

Pension curtailments (0.1 ) - (0.7 ) (0.02 ) and settlements

Net income fromcontinuing operations,net of tax,attributable to common $ 74.0 $ 1.25 $ 54.2 $ 0.92 36.5 %shareholders beforespecial items(adjusted)





Special itemsimpacting provision for income taxes fromcontinuing operations:

Provision for income $ 11.0 $ 2.3 taxes (GAAP)

Tax effect ofacquisition-related - 0.7 deferred revenue ^1

Tax effect ofacquisition-related - 0.6 and integrationcharges

Tax effect oftransaction related 0.9 - expenses

Tax effect ofrepositioning related (0.2 ) 2.4 (gains) charges, net

Tax effect of impactof pension (0.1 ) (0.2 ) curtailments andsettlements

Provision for incometaxes before special $ 11.6 $ 5.8 items (adjusted)



^1 Acquisition-related revenue that would otherwise be recognized but for thepurchase accounting treatment of acquisitions.

Totals may not sum due to rounding

CRANE CO.Non-GAAP Financial Measures(in millions, except per share data)

Twelve Months Ended December 31,

2021 2020 % Change

$ Per Share $ Per Share (on $)

Net sales (GAAP) $ 3,180.0 $ 2,761.3 15.2 %

Acquisition-related - 10.2 deferred revenue ^1

Net sales beforespecial items $ 3,180.0 $ 2,771.5 14.7 %(adjusted)



Operating profit $ 502.3 $ 240.2 109.1 %(GAAP)

Operating profit 15.8 % 8.7 % margin (GAAP)





Special itemsimpacting operating profit:

Acquisition-related $ - $ 10.2 deferred revenue ^1

Acquisition-relatedand integration - 12.9 charges

Transaction related 8.2 - expenses

Repositioningrelated (gains) (9.6 ) 36.8 charges, net ^2

Operating profitbefore special $ 500.9 $ 300.1 66.9 %items (adjusted)

Operating profitmargin before 15.8 % 10.8 % special items(adjusted)



Net income fromcontinuingoperations $ 394.3 $ 6.66 $ 163.1 $ 2.77 141.8 %attributable tocommon shareholders(GAAP)



Special items, netof tax, impactingnet income fromcontinuing operationsattributable tocommonshareholders:

Acquisition-related - - 7.5 0.13 deferred revenue^ 1

Acquisition-relatedand integration - - 9.9 0.17 charges

Transaction related 7.0 0.12 - - expenses

Repositioningrelated (gains) (9.1 ) (0.15 ) 27.7 0.47 charges, net ^2

Pensioncurtailments and (0.1 ) - (0.7 ) (0.01 ) settlements

Gain on sale of (4.5 ) (0.08 ) - - property

Net income fromcontinuingoperations, net oftax, attributable $ 387.6 $ 6.55 $ 207.5 $ 3.53 86.8 %to commonshareholders beforespecial items(adjusted)





Special itemsimpacting provisionfor income taxes from continuingoperations:

Provision for $ 82.9 $ 38.6 income taxes (GAAP)

Tax effect ofacquisition-related - 2.7 deferred revenue ^1

Tax effect ofacquisition-related - 3.0 and integrationcharges

Tax effect oftransaction related 1.2 - expenses

Tax effect ofrepositioning (0.5 ) 9.1 related (gains)charges, net ^2

Tax effect ofpension (0.1 ) (0.2 ) curtailments andsettlements

Tax effect of gain (1.2 ) - on sale of property

Provision forincome taxes before $ 82.3 $ 53.2 special items(adjusted)



^1 Acquisition-related revenue that would otherwise be recognized but for thepurchase accounting treatment of acquisitions.

^2 Repositioning related charges in 2020 primarily consist of COVID-19 relatedseverance and, to a lesser extent, acquisition-related repositioning andfacility consolidation.

Totals may not sum due to rounding

CRANE CO.Non-GAAP Financial Measures by Segment(in millions)

Payment &Three Months Ended Aerospace & Process Flow TotalDecember 31, 2021 Merchandising Corporate Electronics Technologies Company Technologies

Net sales (GAAP) $ 158.1 $ 298.7 $ 313.7 $ - $ 770.5



Operating profit $ 20.7 $ 41.5 $ 60.1 $ (35.2 ) $ 87.1 (GAAP)

Operating profit 13.1 % 13.9 % 19.1 % 11.3 %margin (GAAP)



Special itemsimpacting operating profit:

Transaction related $ - $ - $ - $ 6.8 $ 6.8 expenses

Repositioningrelated charges - 1.3 (2.1 ) - (0.8 )(gains), net

Operating profitbefore special $ 20.7 $ 42.8 $ 58.0 $ (28.4 ) $ 93.1 items (adjusted)

Operating profitmargin before 13.1 % 14.3 % 18.5 % 12.1 %special items(adjusted)







Three Months Ended December 31, 2020

Net sales (GAAP) $ 143.4 $ 257.7 $ 282.6 $ - $ 683.7

Acquisition-related - - 2.5 - 2.5 deferred revenue^1

Net sales beforespecial items $ 143.4 $ 257.7 $ 285.1 $ - $ 686.2 (adjusted)



Operating profit $ 12.9 $ 23.7 $ 31.7 $ (14.4 ) $ 53.9 (GAAP)

Operating profit 9.0 % 9.2 % 11.2 % 7.9 %margin (GAAP)



Special itemsimpacting operating profit:

Acquisition-related $ - $ - $ 2.5 $ - $ 2.5 deferred revenue^1

Acquisition-relatedand integration - 1.3 1.4 - 2.7 charges

Repositioningrelated charges, 1.9 2.7 6.3 - 10.9 net

Operating profitbefore special $ 14.8 $ 27.7 $ 41.9 $ (14.4 ) $ 70.0 items (adjusted)

Operating profitmargin before 10.3 % 10.7 % 14.7 % 10.2 %special items(adjusted)



^1 Acquisition-related revenue that would otherwise be recognized but for thepurchase accounting treatment of acquisitions.

Totals may not sum due to rounding

CRANE CO.Non-GAAP Financial Measures by Segment(in millions)

Payment &Twelve Months Ended Aerospace & Process Flow TotalDecember 31, 2021 Merchandising Corporate Electronics Technologies Company Technologies

Net sales (GAAP) $ 638.3 $ 1,196.6 $ 1,345.1 $ - $ 3,180.0



Operating profit $ 110.0 $ 182.5 $ 307.5 $ (97.7 ) $ 502.3 (GAAP)

Operating profit 17.2 % 15.2 % 22.9 % 15.8 %margin (GAAP)



Special itemsimpacting operating profit:

Transaction related $ - $ - $ - $ 8.2 $ 8.2 expenses

Repositioning - (5.9 ) (3.7 ) - (9.6 )related gains, net

Operating profitbefore special $ 110.0 $ 176.6 $ 303.8 $ (89.5 ) $ 500.9 items (adjusted)

Operating profitmargin before 17.2 % 14.8 % 22.6 % 15.8 %special items(adjusted)







Twelve Months Ended December 31, 2020

Net sales (GAAP) $ 650.7 $ 1,005.8 $ 1,104.8 $ - $ 2,761.3

Acquisition-related - - 10.2 - 10.2 deferred revenue^1

Net sales beforespecial items $ 650.7 $ 1,005.8 $ 1,115.0 $ - $ 2,771.5 (adjusted)



Operating profit $ 100.7 $ 97.7 $ 100.6 $ (58.8 ) $ 240.2 (GAAP)

Operating profit 15.5 % 9.7 % 9.1 % 8.7 %margin (GAAP)



Special itemsimpacting operating profit:

Acquisition-related $ - $ - $ 10.2 $ - $ 10.2 deferred revenue^1

Acquisition-relatedand integration - 6.3 6.5 0.1 12.9 charges

Repositioningrelated charges, 6.5 10.5 19.8 - 36.8 net ^2

Operating profitbefore special $ 107.2 $ 114.5 $ 137.1 $ (58.7 ) $ 300.1 items (adjusted)

Operating profitmargin before 16.5 % 11.4 % 12.3 % 10.8 %special items(adjusted)



^1 Acquisition-related revenue that would otherwise be recognized but for thepurchase accounting treatment of acquisitions.

^2 Repositioning related charges in 2020 primarily consist of COVID-19 relatedseverance and, to a lesser extent, acquisition-related repositioning andfacility consolidation.

Totals may not sum due to rounding

CRANE CO.Full Year Guidance(in millions, except per share data)

2022 Earnings from Continuing Operations per Share Guidance Low High

Earnings from continuing operations per diluted share (GAAP) $ 6.85 $ 7.25

Special items impacting earnings per share 0.15 0.15

Earnings from continuing operations per diluted share before $ 7.00 $ 7.40special items (adjusted)

Three Months Ended

December 31,

Twelve Months Ended

December 31,

2022 Guidance

Cash Flow Items

2021

2020

2021

2020

Low

High

Cash provided by operating activities before asbestos-related payments

$

170.3

$

94.2

$

511.6

$

315.2

$

455.0

$

495.0

Asbestos-related payments, net of insurance recoveries

(15.3

)

(7.3

)

(44.9

)

(31.1

)

(45.0

)

(45.0

)

Cash provided by operating activities

155.0

86.9

466.7

284.1

410.0

450.0

Less: Capital expenditures

(26.4

)

(13.0

)

(51.7

)

(32.9

)

(60.0

)

(60.0

)

Free cash flow

$

128.6

$

73.9

$

415.0

$

251.2

$

350.0

$

390.0

The Company reports its financial results in accordance with U.S. generally accepted accounting principles (GAAP). Certain non-GAAP measures are provided in this press release. 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. Specifically, management believes that, when considered together with reported amounts, these non-GAAP measures are useful to investors and management in understanding ongoing operations and by providing a clearer view of the underlying trends of the business. In addition, Free Cash Flow provides supplemental information to assist investors and management 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. Management uses non-GAAP financial measures in evaluating the Company's core operating results and financial performance. Non-GAAP financial measures, which may be inconsistent with similarly captioned measures presented by other companies, should be viewed as a supplement to, and not as a substitute for or superior to, the Company's reported results prepared in accordance with GAAP. Reconciliations of the Company's non-GAAP financial measures to the most directly comparable GAAP results are included in the tables at the end of this press release.

View source version on businesswire.com: https://www.businesswire.com/news/home/20220124005484/en/

CONTACT: Jason D. Feldman Vice President, Investor Relations 203-363-7329 www.craneco.com