Crane reaffirms 2009 outlook ahead of meeting

Crane Co., which makes parts for aerospace and RV markets as well as vending machines, on Wednesday reaffirmed its 2009 earnings and cash flow guidance ahead of its annual investor day Thursday in New York.

The Stamford, Conn.-based company backed its outlook for profit of $2.10 to $2.40 per share, including restructuring and integration costs of 16 cents, and said it expects core revenue to drop 7 percent as demand falls across all business units.

Analysts surveyed by Thomson Reuters have forecast 2009 earnings per share of $2.27, on average. Wall Street estimates typically exclude one-time charges and gains.

Crane cautioned that its outlook reflects "considerable uncertainty" about the global economy and the timing and ultimate impact of worldwide fiscal and monetary stimulus packages.

The company said its aerospace and electronics segment will benefit from projected lower engineering expenditures. It also said free cash flow is expected to exceed the $146 million posted in 2008.

"Our earnings in the first half of 2009 are expected to be substantially lower than the second half of the year reflecting very difficult current economic conditions and because the full benefit of the cost savings initiatives, restructuring efforts and the anticipated reduction in aerospace engineering spending will not be realized until the latter part of 2009," said Eric Fast, president and chief executive, in a statement.

Crane also said it expects to complete development of the brake control system for the Boeing 787 that meets the originally specified requirements during the second quarter of 2009. However, Crane said Boeing has communicated certain changed aircraft requirements that affect the brake control system, and the company is in talks with customer GE Aviation Systems about developing a new version of the brake system. Those discussions include whether the additional development work will be funded by the customer.

Crane shares fell 28 cents to close earlier at $17.55. The stock is well off its peak of $46.29 reached last spring.