Engineered industrial products manufacturer Crane (CR) is having difficulty engineering a strong response to the continuing delay in government programs. The company reported its third-quarter results, posting net sales of $637.5 million, down 1.3% from the $646 million in the same period the previous year and below the $656.3 million Capital IQ consensus estimate. Net income excluding special items this year and last increased 5% to $1.04 per share, compared to $0.99 per share in the third quarter of 2012, but was $0.02 below the CapIQ estimates.
While Crane's aerospace division's sales increased by $0.8 million, or 0.9%, that was more than offset by declines in revenues of $2.4 million, or 3.7%, in its electronics unit, primarily as a result of continued delays in defense-related programs.
Crane narrowed its earnings guidance at the top end for the rest of 2013, forecasting a range of $4.10 to $4.20 per share, excluding special items, down from $4.10 to $4.25 per share, which reflects management's belief that revenue growth will be lower.
