Payments

Crane reports Q1 2022 sales lift, will divest Canadian distribution

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April 26, 2022

Crane Co., the parent company of Crane Merchandising Systems and Crane Payment Innovations, reported a slight revenue gain for Q1 2022 over the prior year period, according to an earnings release.

The company, which in late March announced plans to separate into two publicly traded companies, also announced it will divest its Canadian distribution business for CAD 380 million.

Q1 2022 highlights include:

• Sales rose 3% from $780 million in Q1 2021 to $801 million in Q1 2022, comprised of a $36 million, or 5%, increase in core sales, partially offset by a $14 million, or 2%, impact from unfavorable foreign exchange.
• GAAP earnings from continuing operations per diluted share fell from $1.75 to $1.64 in the comparative quarters.
• Excluding special Items, EPS from continuing operations rose from $1.57 to $1.81 in the comparative quarters.
• Payment and merchandising technologies sales fell 1% from $338 million to $333 million in the comparative quarters, driven by a $9 million, or 3%, impact from unfavorable foreign exchange, partially offset by a $4 million, or 1%, increase in core sales.
• Operating profit for payment and merchandising technologies fell 2% from $86 million to $84 million. During the quarter, stronger pricing offset the impact of higher inflation.

Shares traded today at $99.76 against a 52-week range of $84.68-$114.67.

The company declared a 47-cent-per-share quarterly dividend, in line with expectations.

"This quarter's results are another example of how we have positioned our businesses to drive accelerating growth, with strong core sales and orders growth supporting our 15% increase in adjusted EPS," Max Mitchell, president and CEO, said in the press release. "Sales and order growth were driven by continued recovery across end markets, as well as our continued success with new product introductions and commercial excellence initiatives."

"Today, we also announced that we signed an agreement to divest Crane Supply for CAD 380 million," he said. "This decision further demonstrates our commitment to reshaping and restructuring our portfolio to accelerate growth, building on our prior announcement to divest engineered materials."

"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," he said. "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."