Crane Co
For the period ended Jun 30, 2024. Filed Jul 31, 2024.
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A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Jun 30, 2024 · Filed Jul 31, 2024
CR$201.06+1.7%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2024-03-31; filed 2024-05-01.
0001628280-24-019638
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2024-06-30; filed 2024-07-31.
0001628280-24-033745
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 77 previous paragraphs and 108 current paragraphs.
28 unchanged; 38 reworded; 34 added; 11 removed; 0 previous and 8 current paragraphs rearranged.
Tables are not compared: 6 previous and 11 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (34)
Current report
Acquisitions
Current report
On January 2, 2024, the Company completed the acquisition of Vian Enterprises, Inc. (“Vian”) for $102.5 million on a cash-free and debt-free basis, subject to a net working capital adjustment and potential additional payments of up to $7.5 million depending on the resolution of outstanding contingencies. On January 2, 2024, we borrowed $100 million under the Company’s existing Revolving Facility to fund the Vian acquisition. Vian, a global designer and manufacturer of multi-stage lubrication pumps and lubrication system components technology for critical aerospace and defense applications with sole-sourced and proprietary content on the highest volume commercial and military aircraft platforms, has been integrated into the Aerospace & Electronics segment.
Current report
•an increase in sales related to the BAUM, Vian and CryoWorks acquisitions of $28.8 million, or 5.7%; partially offset by
Current report
Cost of sales increased by $48.8 million, or 15.8%, to $357.3 million in 2024. The increase is primarily related to the impact from the BAUM, Vian and CryoWorks acquisitions of $25.8 million, or 8.4%, coupled with higher material, labor and other manufacturing costs of $22.0 million, or 7.1%, driven by the higher sales, and unfavorable mix of $7.4 million or 2.4%, partially offset by strong productivity gains and other cost savings of $12.7 million, or 4.1%.
Current report
Selling, general and administrative expenses decreased by $10.7 million, or 7.8%, to $127.3 million in 2024, primarily driven by a decrease in administrative expenses of $14.0 million, or 10.1%, related to the absence of expenses related to the Separation, partially offset by the higher selling costs of $4.5 million, or 3.3%.
Current report
Operating profit increased by $33.5 million, or 53.1%, to $96.6 million in 2024. The increase is primarily due to higher pricing net of inflation and higher volumes of $27.1 million, or 43%, strong productivity gains of $13.6 million, or 21.6%, and the absence of expenses related to the Separation, partially offset by unfavorable mix of $7.4 million, or 11.7%.
Current report
Cost of sales increased by $27.3 million, or 23.4%, to $143.9 million in 2024, primarily reflecting higher material, labor and other manufacturing costs of $13.9 million, or 11.9%, the impact from the Vian acquisition of $9.8 million, or 8.4%, increased volumes of $7.5 million, or 6.4%, partially offset by productivity gains of $4.7 million, or 4.0%.
Current report
Operating profit increased by $14.4 million, or 37.6%, to $52.7 million in 2024. The increase primarily reflected the impact from higher volumes of $9.0 million, or 23.5%, coupled with productivity gains of $5.3 million, or 13.8%.
Current report
Sales increased by $34.5 million, or 13.1%, to $297.7 million in 2024, primarily driven by the impact of the BAUM and CryoWorks acquisitions of $18.2 million, or 6.9%, higher core sales of $17.4 million, or 6.6%, primarily driven by higher pricing, partially offset by unfavorable foreign currency translation of $1.1 million, or 0.4%.
Current report
Cost of sales increased by $23.8 million, or 15.9%, to $173.2 million, primarily related to the impact of the BAUM and CryoWorks acquisitions of $15.9 million, or 10.6%, higher material, labor and other manufacturing costs of $6.3 million, or 4.2%, unfavorable mix of $6.0 million, or 4.0%, and higher volumes of $2.9 million, or 1.9%, partially offset by net productivity gains and favorable foreign currency translation of $7.3 million, or 4.9%.
Current report
Selling, general and administrative expenses increased by $1.8 million, or 2.8%, to $65.0 million, primarily driven by the impact of the BAUM and CryoWorks acquisitions of $4.4 million, or 7.0%, partially offset by productivity gains and other net cost savings of $3.1 million, or 4.9%.
Current report
Operating profit increased by $8.9 million, or 17.6%, to $59.5 million in 2024. The increase is primarily due to higher pricing net of inflation and higher volumes of $7.5 million, or 14.8%, productivity gains of $7.3 million, or 14.4%, partially offset by unfavorable mix and foreign currency translation of $6.4 million, or 12.6%.
Current report
Results from Continuing Operations – Six Months Ended June 30,
Current report
Sales increased by $123.1 million, or 12.0%, to $1,146.5 million in 2024. The year-over-year change in sales included:
Current report
•an increase in core sales of $68.0 million, or 6.6%, which was driven primarily by higher pricing, and to a lesser extent, higher volume; and
Current report
Cost of sales increased by $86.7 million, or 14.1%, to $702.1 million in 2024. The increase is primarily related to the higher material, labor and other manufacturing costs of $52.8 million, or 8.6%, driven by the higher sales, coupled with impact from the BAUM, Vian and CryoWorks acquisitions of $47.7 million, or 7.8%, and higher volumes of $7.8 million, or 1.3%, partially offset by strong productivity gains of $24.6 million, or 4.0%.
Current report
Selling, general and administrative expenses decreased by $9.0 million, or 3.4%, to $258.4 million in 2024, primarily driven by a decrease in administrative expenses of $17.3 million, or 6.5%, related to the absence of expenses related to the Separation, partially offset by higher selling costs of $8.8 million, or 3.3%.
Current report
Operating profit increased by $45.4 million, or 32.3%, to $186.0 million in 2024. The increase is primarily due to strong productivity gains of $26.8 million, or 19.1%, coupled with higher volumes of $12.2 million, or 8.7%, and higher pricing net of inflation of $8.5 million, or 6.0%, and the absence of expenses related to the Separation, partially offset by unfavorable mix of $2.9 million, or 2.0%.
Current report
Comprehensive Income
Current report
Segment Results of Operations - Six Months Ended June 30,
Current report
Sales increased $87.5 million, or 23.7%, to $456.8 million in 2024, primarily due to higher volumes and pricing of $67.8 million, or 18.4%, and the impact of the Vian acquisition of $19.7 million, or 5.3%.
Current report
•Sales of Commercial Original Equipment increased $35.9 million, or 26.0%, to $174.1 million in 2024, reflecting strong demand from aircraft manufacturers, partially offset by material availability constraints.
Current report
•Sales of Military Original Equipment increased $13.5 million, or 10.8%, to $138.3 million in 2024, primarily reflecting strong demand from defense and space customers.
Current report
Cost of sales increased by $58.0 million, or 25.5%, to $285.6 million in 2024, primarily reflecting higher material, labor and other manufacturing costs of $33.1 million, or 14.5%, increased volumes of $19.9 million, or 8.7%, the impact from the Vian acquisition of $19.2 million, or 8.4%, partially offset by productivity gains of $10.0 million, or 4.4%, and favorable mix of $4.3 million, or 1.9%
Current report
Sales increased by $47.4 million, or 8.9%, to $582.0 million in 2024, primarily driven by the impact of the BAUM and CryoWorks acquisitions of $35.0 million, or 6.5%, higher core sales of $12.0 million, or 2.2%, primarily driven by higher pricing.
Current report
•Sales of Process Valves and Related Products increased by $40.5 million, or 10.1%, to $440.8 million in 2024, primarily driven by the impact of the BAUM and CryoWorks acquisitions of $35.0 million, or 8.7%, and higher core sales of $6.8 million, or 1.7%, driven by higher pricing, partially offset by unfavorable foreign currency translation of $1.3 million, or 0.3%.
Current report
•Sales of Commercial Valves increased by $7.2 million, or 12.1%, to $66.6 million in 2024, primarily driven by increase in core sales of $5.5 million, or 9.3%, and favorable foreign currency translation of $1.7 million, or 2.9%, as the British pound strengthened against the U.S. dollar.
Current report
Cost of sales increased by $35.4 million, or 11.8%, to $334.9 million, primarily related to the impact of the BAUM and CryoWorks acquisitions of $28.5 million, or 9.5%, higher material, labor and other manufacturing costs of $17.2 million, or 5.7%, unfavorable mix of $7.3 million, or 2.4%, partially offset by productivity gains of $13.1 million, or 4.4%, and the impact of lower volumes of $4.6 million, or 1.5%.
Current report
Selling, general and administrative expense increased by $9.5 million, or 7.8%, to $130.7 million, primarily driven by the impact of the BAUM and CryoWorks acquisitions of $7.4 million, or 6.1%, and to a lesser extent, higher selling costs.
Current report
Operating profit increased by $2.5 million, or 2.2%, to $116.4 million in 2024. The increase is primarily due to productivity gains and other net savings of $15.9 million, or 14.0 %, partially offset by unfavorable mix of $7.3 million, or 6.4%, and the impact of lower volumes of $6.5 million, or 5.7%.
Current report
Cost of sales decreased by $6.7 million, or 7.6%, to $81.6 million, primarily related to lower volumes of $7.5 million, or 8.5%, partially offset by higher material, labor and other manufacturing costs, net of productivity gains of $1.0 million, or 1.1%.
Current report
Operating profit decreased by $5.8 million, or 27.4%, to $15.4 million in 2024, primarily reflecting the impact of lower volumes of $4.3 million, or 20.3%, and higher material, labor and other manufacturing costs, net of productivity gains and favorable mix of $1.5 million, or 7.1%.
Current report
•$7.5 million decrease in payments for debt issuance costs; offset by
Current report
•$85.0 million decrease in net borrowings; and
Removed paragraphs (11)
Previous report
CryoWorks Acquisition
Previous report
In 2024, we expect Engineered materials sales to be flat compared to 2023, with a modest increase in sales to the Recreational Vehicle market, offset by a decline in sales to the Transportation market.
Previous report
•favorable foreign currency translation of $1.6 million.
Previous report
Cost of sales increased by $37.9 million, or 12.3%, to $344.8 million in 2024. The increase is primarily related to higher material, labor and other manufacturing costs of $30.8 million, or 10.0%, driven by the higher sales, coupled with the impact from the BAUM and Vian acquisitions of $21.9 million, or 7.1%, partially offset by strong productivity gains and favorable mix of $16.7 million, or 5.4%.
Previous report
Selling, general and administrative expenses increased by $1.7 million, or 1.3%, to $131.1 million in 2024, which was primarily driven by the impact from the BAUM and Vian acquisitions.
Previous report
Operating profit increased by $11.9 million, or 15.4%, to $89.4 million in 2024. The increase is primarily due to strong productivity gains of $13.2 million, or 17.0%, coupled with favorable mix and higher volumes of $8.4 million, or 10.8%, partially offset by higher material, labor and other manufacturing costs net of higher pricing of $10.4 million, or 13.4%.
Previous report
Cost of sales increased by $30.7 million, or 27.7%, to $141.7 million in 2024, primarily reflecting higher material and other manufacturing costs of $19.3 million, or 17.4%, increased volumes of $12.4 million, or 11.2%, the impact from the Vian acquisition of $9.4 million, or 8.5%, partially offset by productivity gains of $5.3 million, or 4.8%, and favorable mix of $5.1 million, or 4.6%.
Previous report
Sales increased by $12.9 million, or 4.8%, to $284.3 million in 2024, primarily driven by the impact of the BAUM acquisition of $16.8 million, or 6.2% and favorable foreign currency translation of $1.5 million, or 0.6%, partially offset by lower core sales of $5.4 million, or 2.0%. Lower core sales were driven by lower volumes.
Previous report
Cost of sales increased by $11.6 million, or 7.7%, to $161.7 million, primarily related to the impact of the BAUM acquisition of $12.6 million, or 8.4%, higher material, labor and other manufacturing costs of $10.9 million, or 7.3%, and unfavorable foreign currency translation of $1.0 million, or 1%, partially offset by the impact of lower volumes of $7.6 million, or 5.1%, and net productivity gains of $5.1 million, or 3.4%.
Previous report
Selling, general and administrative expenses increased by $7.7 million, or 13.3%, to $65.7 million, primarily related to higher selling and administrative costs of $7.5 million, or 12.9%, partially driven by the impact of the BAUM acquisition.
Previous report
•$158.1 million increase in net borrowings;
Reworded paragraphs (38)
Previous wording
Reference herein to “Crane,” “the Company,” “we,” “us” and “our” refer to Crane Company and its subsidiaries unless the context specifically states or implies otherwise. References to “core business” or “core sales” in this report include sales from acquired businesses starting from and after the first anniversary of the acquisition but exclude currency effects. Amounts in the following discussion are presented in millions, except employee, share and per share data, or unless otherwise stated.
Current wording
Reference herein to “Crane,” “the Company,” “we,” “us” and “our” refer to Crane Company and its subsidiaries unless the context specifically states or implies otherwise. References to changes in “core sales” or “core growth” in this report include the change in sales excluding the impact of foreign currency translation and acquisitions and divestitures from closing up to the first anniversary, of such acquisitions or divestitures. Amounts in the following discussion are presented in millions, except employee, share and per share data, or unless otherwise stated.
Previous wording
•The ability of the U.S. government to terminate our government contracts;
Current wording
•The ability of the U.S. government to terminate our government contracts, or otherwise significantly reduce planned spending;
Previous wording
•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
Current wording
•Investment performance of our pension plan assets and fluctuations in interest rates, which may affect the amount and timing of future pension plan contributions.
Previous wording
Effective May 1, 2024, the Company completed the acquisition of CryoWorks, Inc. (“CryoWorks”) for $61 million on a cash-free and debt-free basis, subject to a net working capital adjustment. On April 29, 2024, we borrowed approximately $50 million under the Company’s existing Revolving Facility to fund the Cryoworks acquisition. CryoWorks is a leading supplier of vacuum insulated pipe systems for hydrogen and cryogenic applications. CryoWorks will be included in the Process Flow Technologies segment.
Current wording
Effective May 1, 2024, the Company completed the acquisition of CryoWorks, Inc. (“CryoWorks”) for $60.7 million on a cash-free and debt-free basis, subject to a net working capital adjustment. On April 29, 2024, we borrowed approximately $50 million under the Company’s existing Revolving Facility to fund the Cryoworks acquisition. CryoWorks, a leading supplier of vacuum insulated pipe systems for hydrogen and cryogenic applications, has been integrated into the Process Flow Technologies segment.
Previous wording
For 2024, we expect a total year-over-year sales increase of approximately 10%, driven by approximately 4% to 6% core growth, and approximately 5% sales contribution from the Baum lined piping GmbH, Vian Enterprises, Inc. and CryoWorks, Inc. acquisitions. We expect an improvement in operating profit driven primarily by lower transaction related expenses, productivity benefits, operating leverages on higher volumes, higher pricing net of inflation and contributions from acquisitions, partially offset by unfavorable mix.
Current wording
For 2024, we expect a total year-over-year sales increase of approximately 11%, driven by approximately 5% to 7% core growth, and approximately 5% sales contribution from the Baum lined piping GmbH, Vian Enterprises, Inc. and CryoWorks, Inc. acquisitions. We expect an improvement in operating profit driven primarily by lower transaction related expenses, productivity benefits, operating leverages on higher volumes, higher pricing net of inflation and contributions from acquisitions, partially offset by unfavorable mix.
Previous wording
In 2024, we expect Aerospace & Electronics sales to increase in the mid-teens range compared to 2023, driven by approximately 12% core sales and a 4% to 5% contribution from the Vian Enterprises, Inc. acquisition. We expect a substantial improvement in our commercial OEM business driven by higher aircraft build rates, and we expect an improvement in our commercial aftermarket business given continued recovery in airline flight hours. We expect our defense OEM sales to grow slightly, but the defense aftermarket businesses are expected to grow significantly given continued global geopolitical uncertainty which is driving increased demand to replace legacy product sales. We expect segment operating profit and operating margin to increase compared to 2023 driven primarily by the impact of operating leverage on higher volumes, pricing and productivity benefits.
Current wording
In 2024, we expect Aerospace & Electronics sales to increase in the mid-teens range compared to 2023, driven by approximately 12% core sales growth and a 4% to 5% contribution from the Vian Enterprises, Inc. acquisition. We expect a substantial improvement in our commercial OEM business driven by higher aircraft build rates, and we expect an improvement in our commercial aftermarket business given continued recovery in airline flight hours. We expect our defense OEM sales to grow slightly, but the defense aftermarket businesses are expected to grow significantly given continued global geopolitical uncertainty which is driving increased demand to replace legacy product sales. We expect segment operating profit and operating margin to increase compared to 2023 driven primarily by the impact of operating leverage on higher volumes, pricing and productivity benefits.
Previous wording
In 2024, we expect Process Flow Technologies sales to increase approximately 7% driven by contribution from the Baum lined piping GmbH and CryoWorks, Inc. acquisitions, with core sales increasing approximately 1%.
Current wording
In 2024, we expect Process Flow Technologies sales to increase approximately 10% driven by contribution from the Baum lined piping GmbH and CryoWorks, Inc. acquisitions, along with core sales increasing approximately 4%.
Previous wording
We expect Process Valves and Related Products sales to increase in the mid to high single digit range compared to 2023, driven by mid- to high-single digit contribution from acquisitions, with core sales approximately flat. We expect Commercial Valves sales to increase in the low- to mid-single digit range, and we expect Pumps and Systems sales to increase in the mid- to high-single digit range compared to 2023, driven by strong demand across municipal and non-residential U.S. end markets. We expect an improvement in segment operating profit and operating margin compared to 2023, driven primarily by productivity and higher pricing net of inflation, partially offset by lower volumes and unfavorable mix.
Current wording
We expect Process Valves and Related Products sales to increase in the low double digit range compared to 2023, driven by mid- to high-single digit contribution from acquisitions, with mid-single digit cores sales growth driven primarily by sales to chemical and pharmaceutical end markets. We expect Commercial Valves sales to increase in the low- to mid-single digit range as end markets in the U.K. begin to improve from the depressed levels, and we expect Pumps and Systems sales to increase in the mid- to high-single digit range compared to 2023, driven by strong demand across municipal and non-residential U.S. end markets. We expect an improvement in segment operating profit and operating margin compared to 2023, driven primarily by productivity, higher pricing net of inflation and higher volumes, partially offset by unfavorable mix.
Previous wording
We expect operating profit and operating margin to be approximately flat compared to 2023.
Current wording
In 2024, we expect Engineered materials sales, operating profit, and operating margin to be approximately flat compared to 2023.
Previous wording
The following information should be read in conjunction with our condensed consolidated financial statements and related notes. All comparisons below refer to the first quarter 2024 versus the first quarter 2023, unless otherwise specified.
Current wording
The following information should be read in conjunction with our condensed consolidated financial statements and related notes. All comparisons below refer to the second quarter 2024 versus the second quarter 2023, unless otherwise specified.
Previous wording
Sales increased by$51.5 million, or 10.0%, to $565.3 million in 2024. The period-over-period change in sales included:
Current wording
Sales increased by$71.6 million, or 14.1%, to $581.2 million in 2024. The period-over-period change in sales included:
Previous wording
•an increase in core sales of $24.1 million, or 4.7%, which was driven primarily by higher pricing; and
Current wording
•an increase in core sales of $44.0 million, or 8.6%, which was driven primarily by higher pricing, and to a lesser extent, higher volume;
Previous wording
Operating profit decreased by $6.4 million, or 10.1%, to $56.9 million in 2024. The decrease is primarily due to lower volumes, higher selling, administrative and manufacturing costs, and unfavorable mix of $15.3 million, or 24.2%, partially offset by productivity gains of $6.8 million, or 10.7%, the net impact from the Baum acquisition of $1.2 million, or 1.9% and other savings of $0.8 million, or 1.2%.
Current wording
•unfavorable foreign currency translation of $1.2 million, or 0.2%.
Previous wording
Our effective tax rate for the three months ended March 31, 2024, is slightly lower than the prior year’s comparable period primarily due to lower non-U.S. taxes and lower statutorily non-deductible transaction costs.
Current wording
Our effective tax rate for the three months ended June 30, 2024, is lower than the prior year’s comparable tax rate primarily due to lower non-U.S. taxes and lower statutorily non-deductible costs.
Previous wording
Our effective tax rate for the three months ended March 31, 2024, is equal to the statutory U.S. federal tax rate of 21%. The effective tax rate is the result of permanent increases and decreases that net against each other and offset. These increases and decreases include earnings in jurisdictions with statutory tax rates higher than the United States, expenses that are statutorily non-deductible for income tax purposes and U.S. state taxes, partially offset by excess share-based compensation benefits, tax credit utilization, and the statutory U.S. deduction related to our non-U.S. subsidiaries’ income.
Current wording
Our effective tax rate for the three months ended June 30, 2024, is slightly higher than the statutory U.S. federal tax rate of 21% primarily due to earnings in jurisdictions with statutory tax rates higher than the United States, expenses that are statutorily non-deductible for income tax purposes and the impact of U.S. state taxes, partially offset by excess share-based compensation benefits, tax credit utilization, and the statutory U.S. deduction related to our non-U.S. subsidiaries’ income.
Previous wording
(a) Includes $53.5 million of backlog as of March 31, 2024, pertaining to the Vian acquisition.
Current wording
(a) Includes $62.3 million of backlog as of June 30, 2024, pertaining to the Vian acquisition.
Previous wording
Sales increased $45.8 million, or 25.4%, to $225.9 million in 2024, primarily due to higher volumes and pricing of $36.7 million, or 20.4%, and the impact of the Vian acquisition of $9.0 million, or 5.0%.
Current wording
Sales increased $41.7 million, or 22.0%, to $230.9 million in 2024, primarily due to higher volumes and pricing of $31.1 million, or 16.4%, and the impact of the Vian acquisition of $10.6 million, or 5.6%.
Previous wording
•Sales of Commercial Original Equipment increased $17.1 million, or 25.0%, to $85.5 million in 2024, reflecting strong demand from aircraft manufacturers as the industry aircraft build rates continue to recover from the COVID-19 related slowdown, partially offset by component availability constraints.
Current wording
•Sales of Commercial Original Equipment increased $18.8 million, or 26.9%, to $88.6 million in 2024, reflecting strong demand from aircraft manufacturers, partially offset by component availability constraints.
Previous wording
•Sales of Military Original Equipment increased $9.5 million, or 15.3%, to $71.4 million in 2024, primarily reflecting strong demand from defense customers.
Current wording
•Sales of Military Original Equipment increased $4.1 million, or 6.5%, to $66.9 million in 2024, primarily reflecting strong demand from defense customers.
Previous wording
•Sales of Commercial Aftermarket Products increased $12.8 million, or 33.8%, to $50.7 million in 2024, reflecting continued strong demand from the airlines due to improving air traffic and inventory restocking.
Current wording
•Sales of Commercial Aftermarket Products increased $11.5 million, or 28.2%, to $52.3 million in 2024, reflecting continued strong demand from the airlines due to improving air traffic and inventory restocking.
Previous wording
•Sales of Military Aftermarket Products increased $6.4 million, or 53.8%, to $18.3 million in 2024, reflecting stronger demand for military products in response to heightened geopolitical tensions, globally.
Current wording
•Sales of Military Aftermarket Products increased $7.3 million, or 46.2%, to $23.1 million in 2024, reflecting stronger demand for military products, partly in response to heightened geopolitical tensions globally.
Previous wording
(a) Includes $8.3 million of backlog as of March 31, 2024, pertaining to the Baum acquisition.
Current wording
(a) includes $18.0 million of backlog as of June 30, 2024 pertaining to the Baum and CryoWorks acquisitions.
Previous wording
•Sales of Process Valves and Related Products increased by $11.1 million, or 5.5%, to $214.0 million in 2024, primarily driven by the impact of the BAUM acquisition, partially offset by lower core sales.
Current wording
•Sales of Process Valves and Related Products increased by $29.4 million, or 14.9%, to $226.8 million in 2024, primarily driven by the impact of the BAUM and CryoWorks acquisitions and higher core sales.
Previous wording
•Sales of Commercial Valves increased by $2.3 million, or 7.5%, to $32.9 million in 2024, reflecting an impact from favorable foreign currency translation and a modest increase in core sales.
Current wording
•Sales of Commercial Valves increased by $4.9 million, or 17.0%, to $33.7 million in 2024, reflecting an increase in core sales driven by higher volumes and pricing.
Previous wording
Cost of sales decreased $4.4 million, or 9.6%, to $41.4 million in 2024, primarily related to lower volumes of $3.8 million, or 8.3%.
Current wording
Cost of sales decreased $2.3 million, or 5.4%, to $40.2 million in 2024, primarily related to lower volumes.
Previous wording
Operating profit decreased by $3.3 million, or 28.9%, to $8.1 million in 2024, primarily reflecting the impact from lower volumes.
Current wording
Operating profit decreased by $2.5 million, or 25.5%, to $7.3 million in 2024, primarily reflecting the impact from lower volumes.
Previous wording
•an increase in sales related to the BAUM and Vian acquisitions of $25.8 million, or 5.0%;
Current wording
•an increase in sales related to the BAUM, Vian and CryoWorks acquisitions of $54.7 million, or 5.3%.
Previous wording
For the three months ended March 31, 2024, comprehensive income before allocation to noncontrolling interests was $55.4 million compared to $121.1 million in the same period of 2023. The $65.7 million decrease was primarily driven by lower net income before allocation to noncontrolling interests of $40.9 million, reflecting absence of income from discontinued operations in 2024 compared to 2023, and a $25.1 million year-over-year unfavorable impact of foreign currency translation, primarily related to the British pound and euro.
Current wording
For the six months ended June 30, 2024, comprehensive income before allocations to noncontrolling interests was $126.7 million compared to $170.0 million in the same period of 2023. The $43.3 million decrease was primarily driven by a $29.1 million unfavorable impact of foreign currency translation, primarily related to the British pound and euro and lower net income before allocation to noncontrolling interests of $14.9 million, reflecting the absence of income from discontinued operations in 2024.
Previous wording
Selling, general and administrative expenses increased $4.5 million, or 14.3%, to $35.9 million, primarily related to higher administrative costs of $4.0 million, or 12.7%.
Current wording
Selling, general and administrative expense increased by $4.4 million, or 6.7%, to $70.2 million in 2024, primarily related to higher administrative costs of $4.3 million, or 6.5%.
Previous wording
Operating profit increased by $10.6 million, or 28.1%, to $48.3 million in 2024. The increase primarily reflected the impact from higher volumes of $14.0 million, or 37.1%, coupled with productivity gains and favorable mix of $10.9 million, or 28.9%, partially offset by higher material, labor and other manufacturing costs net of higher pricing of $12.9 million, or 34.2%.
Current wording
Operating profit increased by $25.1 million, or 33.1%, to $101.0 millionin 2024, the increase primarily reflected the impact from higher volumes of $22.9 million, or 30.2%, coupled with productivity gains of $11.1 million, or 14.6%, partially offset by higher material, labor and other manufacturing costs net of higher pricing of $11.9 million, or 15.7%.
Previous wording
Sales decreased $7.2 million, or 11.6%, to $55.1 million in 2024, primarily reflecting lower volumes of $6.0 million, or 9.6%. The decrease was primarily driven by lower sales in Building Products and Transportation end markets.
Current wording
Sales decreased $11.8 million, or 9.9%, to $107.7 million in 2024, reflecting lower volumes . The decrease was primarily driven by lower sales in Building Products and Transportation end markets.
Previous wording
We have available borrowing capacity of $800 million under a 5-year revolving credit facility (“Revolving Facility”) through March 2028 and a $300 million, 3-year term loan facility (“Term Facility”) through March 2026. At March 31, 2024, there was $247 million outstanding under the Term Facility and $110 million outstanding under the Revolving Facility. For more information regarding our borrowings under the Revolving Facility in connection with our acquisition of CryoWorks, see “Recent Transactions – CryoWorks Acquisition” above.
Current wording
We have available borrowing capacity of $800 million under a 5-year revolving credit facility (“Revolving Facility”) through March 2028 and a $300 million, 3-year term loan facility (“Term Facility”) through March 2026. At June 30, 2024, there was $247 million outstanding under the Term Facility and $130 million outstanding under the Revolving Facility. For more information regarding our borrowings under the Revolving Facility in connection with our acquisitions, see “Recent Transactions – “Acquisitions” above.
Previous wording
Cash used for operating activities from continuing operations was $79.9 million in the first three months of 2024, as compared to $105.4 million during the same period last year. The decrease in cash used for operating activities from continuing operations was primarily driven by the $10.1 million increase in net income adjusted for the exclusion of non-cash items and a decrease in working capital investments of $22.2 million, primarily due to lower income tax payments and lower payments for inventory.
Current wording
Cash used for operating activities from continuing operations was $17.9 million in the first six months of 2024, as compared to $53.0 million during the same period last year. The decrease in cash used for operating activities from continuing operations was primarily driven by the $45.2 million increase in net income from continuing operations adjusted for the exclusion of non-cash items, partially offset by an increase in working capital investments of $3.1 million, primarily due to changes in accounts payable and accrued liabilities, driven by the timing of payments.
Previous wording
Cash flows relating to investing activities from continuing operations consist primarily of cash used for capital expenditures and acquisitions of businesses. Cash used for investing activities from continuing operations was $114.5 million in the first three months of 2024, as compared to $8.7 million in the comparable period of 2023. The increase in cash used for investing activities is primarily related to the acquisition of Vian for $102.5 million and the $3.1 million final working capital adjustment related to the BAUM acquisition.
Current wording
Cash flows relating to investing activities from continuing operations consist primarily of cash used for capital expenditures and acquisitions of businesses. Cash used for investing activities from continuing operations was $177.1 million in the first six of 2024, as compared to $20.8 million in the comparable period of 2023. The increase in cash used for investing activities is primarily related to the acquisition of Vian for $102.5 million and the acquisition of CyroWorks for $60.7 million.
Previous wording
Financing cash flows consist primarily of dividend payments to shareholders, repayments of indebtedness, proceeds from our Credit Facilities and proceeds from the issuance of common stock. During the first three months of 2023, financing cash flows also includes activities associated with the distribution of Crane NXT, Co. in support of the Separation.
Current wording
Financing cash flows consist primarily of dividend payments to shareholders, repayments of indebtedness, proceeds from our Credit Facilities and proceeds from the issuance of common stock in connection with employee stock plans. During the first six months of 2023, financing cash flows also includes activities associated with the distribution of Crane NXT, Co. in support of the Separation.
Previous wording
Cash provided by financing activities was $87.9 million during the first three months of 2024 compared to cash used for financing activities of $67.8 million in the comparable period of 2023. The increase in cash provided by financing activities was primarily driven by;
Current wording
Cash provided by financing activities was $99.6 million during the first six months of 2024 compared to cash used for financing activities of $395.6 million in the comparable period of 2023. The increase in cash provided by financing activities was driven by:
Previous wording
•$14.9 million decrease in dividends paid; partially offset by
Current wording
•$13.4 million decrease in dividends paid, reflecting a lower dividend per share established on April 3, 2023 in connection with the Separation;
Previous wording
•$21.4 million increase in payments for taxes related to net share settlements of equity awards, net of proceeds from stock options.
Current wording
•$18.8 million increase in payments for taxes related to net share settlements of equity awards, net of proceeds from stock options.
Rearranged current paragraphs (8)
Current report — wording carried from elsewhere
For the three months ended June 30, 2024, comprehensive income before allocation to noncontrolling interests was $71.3 million compared to $48.9 million in the same period of 2023. The $22.4 million increase was primarily driven by higher net income before allocation to noncontrolling interests of $26.0 million, partially offset by a $4.0 million year-over-year unfavorable impact of foreign currency translation, primarily related to the British pound and euro.
Current report — wording carried from elsewhere
Sales decreased $4.6 million, or 8.0%, to $52.6 million in 2024, reflecting lower volumes partially offset by higher pricing. The decrease was primarily driven by lower sales in Building Products and Transportation end markets.
Current report — wording carried from elsewhere
The following information should be read in conjunction with our condensed consolidated financial statements and related notes. All comparisons below refer to the first six months of 2024 versus the first six months of 2023, unless otherwise specified.
Current report — wording carried from elsewhere
Our effective tax rate for the six months ended June 30, 2024, is lower than the prior year’s comparable tax rate primarily due to lower non-U.S. taxes and lower statutorily non-deductible costs.
Current report — wording carried from elsewhere
Our effective tax rate for the six months ended June 30, 2024 is slightly higher than the statutory U.S. federal tax rate of 21% primarily due to earnings in jurisdictions with statutory tax rates higher than the United States, expenses that are statutorily non-deductible for income tax purposes and the impact of U.S. state taxes, partially offset by excess share-based compensation benefits, tax credit utilization, and the statutory U.S. deduction related to our non-U.S. subsidiaries’ income.
Current report — wording carried from elsewhere
•Sales of Commercial Aftermarket Products increased $24.4 million, or 31.0%, to $103.0 million in 2024, reflecting continued strong demand from the airlines due to improving air traffic and inventory restocking.
Current report — wording carried from elsewhere
•Sales of Military Aftermarket Products increased $13.7 million, or 49.5%, to $41.4 million in 2024, reflecting stronger demand for military products, partly in response to heightened geopolitical tensions globally.
Current report — wording carried from elsewhere
•$578.1 million related to the Distribution of Crane NXT, Co. in the prior year;