Crane beats by $0.01, beats on revs; guides FY14 EPS in-line, revs below consensus
Reports Q4 (Dec) earnings of $1.04 per share, excluding non-recurring items, $0.01 better than the Capital IQ Consensus Estimate of $1.03; revenues rose 8.2% year/year to $681.5 mln vs the $642.16 mln dual est.
Segments:
Aerospace & Electronics - Fourth quarter 2013 sales increased $10.7 million, or 6.1%, reflecting sales increases of $5.5 million (4.9%) in the Aerospace Group and $5.2 million (8.0%) in the Electronics Group. The Aerospace Group sales increase reflected stronger commercial OEM and aftermarket sales activity.
Engineered Materials - Segment sales of $52.4 million were 11.7% higher than the fourth quarter of 2012, driven by higher sales to recreational vehicle equipment manufacturers. Excluding Special Items, operating profit increased 24% to $5.8 million, and margins increased from 10.0% to 11.1%, reflecting the impact of the higher sales.
Guidance:
Co issues mixed guidance for FY14, sees EPS of $4.55-4.75, excluding non-recurring items, vs. $4.70 Capital IQ Consensus Estimate; sees FY14 revs of $3.0 bln vs. $3.19 bln single estimate, driven by a core sales increase of 1% - 3% and the impact of the MEI acquisition.
Commentary: - In addition, as part of ongoing efforts to continue to drive margin expansion, the Company expects modest facility repositioning actions relating to consolidation of certain smaller manufacturing sites. Associated costs are expected to be in the range of $10 to $13 million and are expected to be partially offset by gains from sales of certain real estate. Savings associated with these actions will approximate $5 million in 2015 and $10 million on an annual basis beginning in 2016.