Crane Co. president and CEO Max Mitchell says that the company continues to make progress on its planned split into Crane Co. and Crane NXT after the recent divestment of Crane Supply, the company’s Canadian distribution business.
Mitchell made the comments as part of the company’s first-quarter 2022 earnings report.
“This decision further demonstrates our commitment to reshaping and restructuring our portfolio to accelerate growth,” said Mitchell.
On March 30, Crane Co. made the announcement that it would be separating its company into two separately traded entities, a move that will take around 12 months to complete.
Crane Co. will group the company’s aerospace & electronics and process flow technologies businesses. These divisions are expected to generate about $1.9 billion in annual sales and an adjusted EBITDA margin of about 18.5 percent.
Crane NXT will group the payment and merchandising technologies businesses and are expected to generate $1.4 billion in sales with an EBITDA market of 28 percent. Crane Payment Innovations, a company that falls under this business segment, provides payment technologies to the gaming industry.
“We also continue to make progress towards our planned separation into two independent, publicly-traded companies that we announced on March 30, and that we believe will unlock substantial value for our shareholders,” said Mitchell.
“As we move forward, shareholders will see how post-separation, both Crane NXT, and Crane Co. will be positioned to further accelerate core growth and to create value through their independently optimized capital allocation strategies. The separation marks a new beginning for Crane, and the creation of two exciting stories.”
Crane Co. recorded a 3.1 percent year-on-year fall in net income in 1Q22, reaching $105 million, though first-quarter sales increased 3 percent year-on-year to $801 million.
Net sales from its payment and merchandising technologies business fell 1.5 percent in the quarter, whilst the company recorded strong net sales performance across its aerospace and electronics, and process flow technologies businesses, rising 2 percent and 8.1 percent respectively. All three segments were offset by “unfavorable foreign exchange”.
The company has announced a regular quarterly dividend of $0.47 per share for the second quarter of 2022.
The dividend is payable on June 8, 2022 to shareholders of record as of the close of business on May 31, 2022.