Crane Co, USA

COMPANY WATCH

Crane Co, USA

Graco Inc, USA

Key Figures (US$ million) Fourth quarter ended 31.12 2007

Key Figures (US$ million) Fourth quarter ended 28.12.2007

Net Sales Of Which: Fluid Handling

2006

666.0

581.7

300.9

255.3

–

–

Operating Profit Of Which: Fluid Handling

64.8

Net Income

Asbestos Provision

Asbestos Provision Operating Profit/(Loss) Of Which: Fluid Handling Net Income/(Loss)

205.2

203.4

117.6

110.6

Cost of Sales

95.5

96.2

53.5

Gross Profit

109.7

107.2

57.2

22.8

54.1

52.5

45.2

38.0

Operating Profit Of Which: Industrial

40.7

32.7

EBIT

52.5

51.7

Net Earnings

35.7

35.6

Year ended 28.12.2007

29.12.2006

841.3

816.5

444.7

416.5

Year ended 31.12 2007 Net Sales Of Which: Fluid Handling

Net Sales Of Which: Industrial

29.12.2006

2006

2619.2

2256.9

1135.8

999.4

390.1

–

(107.7)

247.9

159.3

107.4

(62.3)

165.9

Net Sales Of Which: Industrial Cost of Sales

393.9

382.5

Gross Profit

447.4

434.0

Operating Profit Of Which: Industrial

232.5

226.0

152.3

128.5

EBIT

228.8

224.4

Net Earnings

152.8

149.8

COMMENT Crane Co has ended the year with sales strongly ahead of 2006. The fourth quarter saw sales of US$666.0 million, with Fluid Handling accounting for nearly half the sales at US$300.9 million. Over the year, the Fluid Handling division broke the billion dollar sales barrier. Order backlog is also ahead of 2006, with Fluid Handling currently holding orders worth US$242.6 million on its books, up from US$210.5 million a year ago.

March 2008

Operating profit in the Fluid Handling division was boosted in the fourth quarter by a oneoff gain from restructuring the company’s foundry operations, worth US$18.4 million after tax. However the year’s performance is overshadowed by US$254 million after-tax provision to extend its asbestos liability to 2017. This hit the net income, leaving the company with a net loss for the year of US$62.3 million. ■ www.craneco.com

COMMENT Graco achieved modest growth in sales in the last quarter but the sales and net earnings for the year as a whole reached record levels in 2007. Much of this is down to very strong performance in Europe and Asia where sales were up 23% and 18%for the year. This compensated for lower sales in the Americas

where some markets proved very challenging in 2007. Graco is notable within the fluid handling sector for its extremely high profit margins. The business recorded an after-tax net profit margin of 18.2% in 2007, representing an excellent return on sales. ■ www.graco.com

Pump Industry Analyst

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