Document 930ZrMdgvJQV0NYjjvDXK6Z45

Crane Co. 1990 Annual Report 3 CRTX 0787 Crane Co. Crane La a diversified manufacturer of engineered industrial'products, serving niche markets in aerospace, fluid handling, automatic merchan dising and the construction industry. . Crane's wholesale distribution business serves the building products markets and industrial customers.^ Founded in 1855, Crane employs almost 10,000 people In North America, Europe and Australia. Cover A photograph of the Unigraphics CAD/CAM system's monitor, " showing the 3-iaxis tool path of the control valve utilised on the Hydro-Aire Mark V digital antiskid/xutobrake system. Table of Contents Financial Highlights . Letter to'Shareholders' 1 2 Manattmcnt's Discussion & AnalysUvf Operations 4; Financial Statements ' ' 10 ' Financial Review 14 Liquidity and Capital Resources 21. Directors and Officers Inside ". Back Cover TVu report wsu prUi+d e* rmryd+d rr/locUMf mmere**** ef tk* mood te <'mturml rttourco* *md tko t C Operations Engineered Industrial Products Chempump Division ' Warrington, Pennsylvania . Cochrane Environmental Systems Division. , , King of Prussia, Pennsylvania ' X;. CorTec Company ", ' Washington Court House, Ohio Crane Australia Pty. Limited Sydney, Australia Crane Canada, Inc, Plumbing Division Montreal, Canada Crane Defense Systems Conroe, Texas Crane Ltd. London, England' Crane Val.ves ` - Joliet,'Illinois ; * Denting Division ` Salem, Ohio Ferguson St. Louis, Missouri Ferguson Machine Co., SA.." ' Braine-le-Chateau, Belgium Hydro-Aire Division Burbank, California Kemilts Company Joliet, Ilhnois V* Lear Romec Corporation Elyria, Ohio ' Hational Vendors . St, Louis, Missouri . .National Rejectors', Inc., GmbH Buxtehude, Germany- Poiyflon Company - . . New Rochelle, New York ResistoflexJDefense Jacksw onville, F*lorida ' Resistoflexllndustrial % Marion-, North Carolina ' UnidynamicslPhoenix' Phoenix, Arixona ' .,, * Wholesale Distribution .1 Huttig Sash & Door Co. Chesterfield, Missouri ,, Crane Canada, Inc. Supply Division Montreal, Canada Valve Systems & Controls' Houston, Texas CRTX 0788 i Financial Highlights ' *' - * ' (fa ihotttandi exceptperiharr<tafa) Nrt Sain* OjHTatinp Pn*fit Inromr brforr Taxot-Cnnlinuing <)i*rratMtt* &ihiiiWlilt|l|llil|iii.illll J^1 1990 81.4384218 113,311 102.488 <39.753) 8 62.735 1989 $ 1.455.589 105.015 91.579 <35.660) 8 55.919 1988 81.313.136 95.666 81.490 (32.304) 8 49.186 1987 1986 81.TOJ6 - 81.013.718 75.130 75.011 58.511 <25.837) 55.305 <26.520) 8 32.701,r> 8 28.785 - JnromrfrnraOmtinuinpOjHTatiiinu' <'u!i Divliknl. Italuml , Avrrapr Sharw.<luMnmlirij:_______________ . 81,9ft ,7.1 32.057 $1.72 .71 32.M38i3~ 8t,tft t62 33.636 M7r' .38 33.826 $.91 30^67 * tertmir,imrmnrfnmsmen)JhlritmlrJfathnnb^tmnfSIX+'KIt39pereburr)IWW;&H.WI9it.hiper*hm)l*iwrr*mj'&j'>3ifji^j^rrj~ inVHUt. lb) AdjiotnlfitrSm %tarktlit)rtlmlitmin I'tm.lkrrrf.r txmelert. tjJil im IWITimlMri rlnrkitiuritMlirmin IVIb. Ir) inrmtmrbrfmermtniJmtire effrrl ttfa rhmmjcrin nmmnlin/t tifit. Ihfter ebnrrl. CRTX 0789 letter to Shareholders Robert S. from ._ Chairman_ CfiirfKxmtrirrOffirrr umll'mlt/mi ^7- iv.. DrarSharrhoIdrrs: In a v*ar whirh Marini slowly ami rndnl in rrcwsiim. Cram* CoTs nvrrull jH*rfrmanrr was sutisfurtory. Earning* |mt fftarr rose fmm $1.72 In $1.96. a 14 |H*rrmt inrrrasr. drs|iitra 1 |iermit derlinr in Main*. IVet inromr a*a - . IHTrrnt ofsain* nmtinunl to imjimvr fmm 3JB permit in 1989 tu 4.4 jtrrrrnl in 1990. Cash flow, whirh consists. of iifh'Mu* earning* |iIiin li'iim'iulimi, umorlbutlon uml defcrml taxr* inrmisnl fmm $2.87 to $2.% jht (than*. Return on shareholders* equity rxrmtnt 20 prn-rnt for tlir fifth nmsrrutivr yrar. This rrlurn, whirh rani*: Cmnr in tin* top 20 |mrrnt of Forlunr 300rompanir*,. was orhirvnl in spitr ofnmtinunl reduction in financial Irverapr. with thr total <Ir!>t to equity ratio tin-fining from > 33 |irrrmt to45 |N%vrilt[; ' : at many ofour business units. ftirlirularly outstanding^,,.; were Krsistoflrx/Industrial: Mll.Cmlill anil tbrll.S. Vahr^iC ; Division. Iluwrvrr. llutligSash anil Doorsale*ilrnppnli;; 6 |H-jyt*nt for thr yrar. as thr marlrt |irogrrssivr!y shrank?) line lu the areelrrutingdrrlini' in ImiisingslHrlsrausnihys . tlir rmlit rrunrh. Itanmla also rxprrirnml a ilrrlinr in??;:'; housing, with starts dropping fmm 230.0(10 in 1989 to)). finish 1990 at a rate lower than 110.000. ThislO prrrrntilrrlinr made 1990 thr worst yrar sinrr 1983 amt thr- Canadian rmnumy finLshnl at Irvrls similar to thr srverr?/) rrrrssionin 1981 ami 1982. Thr 1990 ilrrlinr in Canadianrarnings nrgativrly im|iartrd total company rarnings bjr , almost $.20 |s*r shun*. Recession also impartrd ours?.) operations in tlir U.K. ami Australia, hut toalrssrrdrgnTif ; ... rrduird by a nonnrash rhargr of$.06per*harrdortntt*|j) 7 arrrlrratrd vesting ofrrstrirtrd stork graiitaVraujinllqrthe)?? 511 iH'iwnl Inrriw ofCrane** stork |irtrpiivrr ihrjiiirr|):. CRTX 0790 on thr day of Ihr grant. In 1989. a similar non-rash rhargr wr sold thr Sea-Par Sale* Co., a distributor offloor ' of8.08 per share was recorded. Cranr has pursurd a |H>liry ofaligning shareholder am! management intriest*. Incentive* covering produrl*. anil our McAvity division in Canada, a manufacturer of waterworks valves and hydrunts, fir an such as stork option*. stork appreciation rights anil aggrrgatr sales price ofapproximately $19 million. restricted stork hnr lorn usn! to achieve this goal. It is During thr year. Crane rontinurd its long-term sharr satisfying to notr that ovrr thr last fivr yrars. Cranr has repurchase program by buying899.061 shares on thr ojirn providril a romjinundrd avrragr rrliirn to our shareholder* market at an average prirr id $20.76. Our policy is to buy of20 |irirrnt, In 13 |H*rmit for tin* SR P 31111. Croni' slmres when liny- n>pnwnl tin uppmjiriute investment. In Jiiiii*. Stauiluril & l\mr*s ii|igruilrtl Cranr** senior With an econumir downturn u|Hin us. wr arr entering ilrlit rating to lllllh from llllil. This is thr third ujigradr 1991 in a strong position, hut also a prriiHl ofgreat. . ofour credit rating ovrr thr past thrrr yrars. Standard & Poor's said that thr upgrade rrflrrtril an improved iincrrlainty. Our goals arr to rontinur to strengthen our.. . business units whilr adding value by taking advantage of tiusinrss (inifilr dur to an|uisilions. divrsliturrs anil cost . opjNirtunitirs which may lie rtrafrd by finaneial *trr**.lv~-' rutting measure* ovrr thr |iast five yrars tluit mhanrrd thr . Wr rontinur to lie ronrrrnrd about thr rnvinmtnrnl^ v - r- rom|iany*s product mix ami reduced ramings volatility. Standard A Mw*s also indicated that Cranr was writV;. ami I am pleased to te|Nirl tliat wr Imvr mudr progress irrS'^S. 19911 in cleaning up prior prohlrm* and buprrfii|js`oi^.t^|; situatnl tnweatlier a eyrliral downturn. ' :l:;: processes ami prartirr* to insure the future.; S Our jKTfiimanrr in 1990 proved thr validity oftheS&l* . 1 would likr to thank all Cranr employers for thr sarress^; - rrjHirt. Ninety permit ofour sales ilrrivr from husinrssrs in. wr have arhirvrd and rrrognizr that what makrs CranemB; which wr have a number one or two market sharr (msition strong company are the |H*oj>le who work to serve ovieV- ^ - and 10-50 |M>rrmt ofour profit* arr pcnrratrd Ivy nftrr* ritMtimro and dtan'linldi'm. In pnrliiiilnr, I mtivi mrnlhm.-. nmrkii sates. These furtiirs. ramliineil with our improved Mr. Ilunte C. Faliiuni. former President ofCrane ami a-:'.: . finanriul strength. |Hition Cranr well for thr futurr. Director of thr comjiany for 30 years, who is rrtiring fnun ; ' In February, wr acquired thr brarKomrrCorjmraliun. our Hoard. Ilis drdiration. wisdom, anil friendship have:?Sa a maaufarturrrof(tumps fir thr orros|iarr industry, for ltern invaluable to Crane Co. and will lie missed by all who ' 810 million. Their product* romplrmrnt Hydnv-Airr*s rapa^ have had the privilege ofworking with him. hilitirs in this market ainl had a positive imjwrt on earnings. In Srptimihrr. we announrrdwrwrrr considering thr . Sincerely. " . distriliution ofour ilrfrttse businesses to our shareholder*. We terminated consideration ofthe spin-off Iiecausr ofthr low (tubltr market valueofother rrrently spun-offdefense. rompanie*. pubbe costs whirh wrre considered to hr H.S. Evans: disproportionate to the sizr ofthese small businesses ami -V. Chairman., . tbr larkofcashflow hmrfits to Cranr., 1.. V . "... ; ': Wtiirf Evrulivr Offirrr? : -r `i \ Timarilslhremlofthryrir.asparH.fi.urimpiing and President program ofasset redeployment to imjinivr performance.. . February 28,1991 _ CRTX 0791 Managements Discussion andAnalysis of Operations Results ofOperations {.'raw Yalmarr oj/rnjiabronzr. : inm. xtainlrx* amitvrbo* *tnj,> _ . .liiii/nWe in tiuU. buttrrfly. gate. ; pjtJbfamtrfurit roaftguratiua*.-. thrrprnriJefltiir coatrotfurtatrr. JL'. romairr\ Consalidatrd llnmlliomt___________ | Sales____________ Operating Profit Operating Margin 1990 1989 1988 81,438.2 S 1,455.6 SI.313.1 8 113.3 8 105.0 8 93.7 7.9% 7.2% 7.3% Salcit uf 81.4 lillllmi In 1*190 were 1 pcrrent lu>I<iw the 1989 level. The anjuisition ofl/ar Romrr in February. 1990 ami the company** strong market share position hrlped to soften the adverse impart ofa weakening 17.S. eronmny, -i, a rrression in Canada, mluml defense spending and the - divestiture, in 1989and 1990, ffoursmall business units. ;V Sales in 1989were 11 prn-mt higher than in 1988 doe to ; - -.' growth through anpiisitions, primarily IWmer G.lewis, as i; well as through higher shipments from existingtmsinrssro^^ - 1990 operatingprofit inrmtsnl 8 |ierrrnt to8113nnT5>ii%>- following a 10 prrrrntinrrrase in 1989. Thermllmied?|K5|;; improvement was prinripally idur to Enginrrml Imlnstrnl^ IVmlnrts whirh has improvedoperating mniynsarwlinrrntsed - volume over the last two years. Thr 1990 improvement was partially offset In a derline in thr U.S. and Canadian,"- {v residential rmislnirtinn tnarkrl whirh nrgatively imparted r. IhiIIi llultig und Cunudu Supply In the WlM&walr IHMrilwllon segmrnt. Operating profit was rrdurrd in 1990 and 1989 ;'; -;-. Iiy non-rash charge* of$3.1 million and $4.1 million; ; . - respectively. for the early vestingofrestricted stork awards >" due to the favorahlr |terfornuinre ofCrane stork. - - Net interest expense drrlined in 1990 due to a rrdurtion in Ik-rowing levels. Net interest expense in 1989was less than in 1988 as a result of lower harrowinglevels partially; ; offset hy highrr interest rates. Misrellanrou*inromr,4; ronsisting primarily ofgains on sales ofcapita! assets, was -v,' $4.7 million in 1991) compared to $3.4 million in 1989. , lilisrellaneous inromr of$2.9 million in 1988 inrluded- ' j. $1.3 million from gains on the saleofmarkrtaUeWmitirfcC^ Thecompany** effective tax rate was 38.8 permit in 1990;^: 38.9permit in 1989and39.6permit CRTX 0792 l Income from continuingoperations, net oftaxes, was $62.7 million in 1990, rtunpaird to $55.9 million anil $49.2 million in 1989 anil 1988, respectively. The return on sales improved to4.4 percent in 1990 from 3.8 permit in 1989and 3.7 peirrnt in 1988. Income per share from continuing operations inrreased 14 (irrrent to $1.96 in 1990, romparrd to $1.72 in 1989 whirh was 18 percent above thr $1.46 in 1988. Return on sharrlmlilrrs'njuily has exceeded 20 |H'reent for the lust three years. At the end of the third ipmrtrr of 1988, Mrdusa Corporation, a whoMj-ownrd rement and aggregates liusiness. was distributed tax-frre to shareholders. JVet inrome for 1988 was $62.5 million, reflerting Medusa** $13.3 million protit fir the first nine months^ Engineered IndustrialIVodurts; - ihmiKmsf':' 1990 Sale*v- - ` ' Operating Profit___ *762.8 _ 8103.9 Margin__ 13.6% 1989 $747.1 $ 90.7 12.1% ___ 1M8 $706.1 $80.8 11.4% The Engineered Industrial Products segment's operating profit inrrrasnl 15 prrrrnl in 1990 anil 12 |H>rrrnl in 1989 on sules gains of2 percent anil 6 permit, respectively. . Operating margins tune risen to 13.6 iierrrnt in 1990 from * 12.1 fterrenl in 1989and 11.4 permit in 1988. , ; , The ilomestir lalre Division ojteratrd at a small loss in 1990, rrrording three ronsmilivr pmfitablr ijuartrrs V following a first quarter loss ami a $6.5 million loss in 1989. . The impart ofrost rrdurtions and ninsoliilation programs implemented over thr past two years is rrfiirtrd in the improved rrsulls. 1989 rnnlts wen* nrgatively imjiartnl liy costs associated with discontinued products and rinsed . farilities whirh totallrd $1.7 million. Valves ranlinurd to . eliminate unprofilaldr produrls in 1990 and sales drrlinrd . 10 permit vrrsus thr prior yrar levrl following a 6 perrent decline In 1989vs. 1988. The valve business** in Canada; . V CiCmiIS.I IliHn ? Torque canlrollrdratter, expanding thr tubes ofa marine, main engiae>:.--:c; ait-coalrdheatexchangeeat Chws| tndustriaVi Cardtrorth, V. K. Prjmte^S7. '"'.V'V-'il' '*. CRTX 0793 I Managements Discussion andAnalysis of Operations <Jiemjmmp mbmwynfcanned motorpumps bringinitnllnlat a larprrftrmiraltstanu/artairr. Plumps, tnoantrdinside Motrrttl ttoragrf*uppfy fault* hr/p tor/iminatr ' poOtaiomtflberatinmmmiby pratidju/tpmilirrraatainmrut' ` ofhosardou* liquid* aut/rapor*. ' . HohotfraUyapptirdplaxtir-avrrjlotr*tmparcrU>imor*ltrl.: taratorir*atrhrfpi*jcCranr - s' Canada** Stratford. Ontarioptam^-.t: fiayanthrlradiHKrdgrofurtc - . ; ( ^nftyrfrfcwrfrwrfey^^ ::;i~ ^iv ''jSi thr United Kingdom and Australia all suffered from the eronomir downturn in 1990 with Canada operating at . signifirantly lower Irvels. This compote* to improved result* at all there businesses in 1989. Canaila sold its. waterworks valve |irodurt line in November, 1990 and - . . rwiMiKilatfd its remaining valvebusinesses into thrcompany's otlirr Canadian operations. Crane Ltd. sold its steel . . foundry in 1989. Ruth divrsted <i)H<rationn rimlrilniittl ntarjdnnlly to sales and profit*. Thr Chrmpump and firming pump businesses showed highrr earnings and improvrd shipments in 1990 after: wordinglowrr profit on slightly highrr sales in 1989. Deming, a maniifarturrr ofpumps fir the general industrial market, purchased an air-operated diaphragm;^ V: pump line fir $1.3 million in 19901 Chempumpilhir%i^.Si4 trading manufacturer oftrakpniofcannrd motwjwmp*;j;j ungiiml an additional canned pump line from Dmie^|S^ Industries for$.4 million in I989.':-.:;^i0w^^i^l>^f e|uipmrnt fir treating water anil wastewater. company reported a sharp inrrease in sales ami profit'r^fC following strong improvement in 1989. Tlr |m^iin4?r;T;|5!- serviers lupines* of Helen Water and Waste Trratmrnt was,V;. flri|tiiml in 1989 fur $.3 million.. '"K 'P.- Tlu> Canatliun Plumbing o|ierotinii, offering it full line . ' ofplumliing pmdurt* fir thr residential and commemol .0 * building markets, was severely imparted in 1990by the;; recession in Canada anil thr building tradrs strike in :,. ' ; v- Ontario. Shipments and profit were down sulistantially ::0, in 1990. Although shipments in I99Shatl improved over , /- the priir year, ojrrating margin* hail rrodrd due to strong -^; prire com|rtition and a slow construction markrt.; Hydro-Aire is the world leader in the design and:.? manufarturr ofelertronirally controlled anti-skul braking^; control systems fir the aerospace industry. The divishmVJ f. profitability improvrd in 1990 drspitr a small drrline in '?b.r sale* following a year ofstrong volume and profit gniwtK^f in 1989. Shipments in 1990 were imparted byadecImeite|S}j defense spending, howrver, the rommrrrial aviation^ CRTX 0794 EBB market was extremely strong and in expected to remain ' near record levels through 1991. The defense businesses of Crane Defense Systems, VnidynamicsIPhoenix and ResistoJlexIDefense continued to lie impacted by the reduction in military spending. These rompanirs supply a variety ofproducts and equipment such as separable fittings for airrraft engines, precision ordnancr devirrs for drfease and aerospare applications, as well as cargo anil iicrsonncl elevators, cranes, spcrlul-duty wliirhrs and ummunition handling equipment for the Navy. . . Sales ami profit in 1989 were signifirantly below the 1988 Irvrl. In 1990 these businesses were slightly more profitable than in 1989 un sharply fowrr sales. These companies,' . whirh represent less than 5 jormit ofCrane*s total salrs, - continue to fonts on cost rrdurtion. During thr year, Cranr . - Defense Systems was relocated to a new. more cost-efficient }rf farility in Conroe. Texas,: yi /' - In February. 1990, thr company arquiml bear Romer, nmanufarturrr ofpump* for the aerospare imlustry. for $-10 million, bear Homer contrihutnl signifirantly to thr - salrs and operating profit inrrrase ofthe Engineered ; ' Industrial segment in 1990. / Ferguson tnarkrls pnslurts for transferring and |*osi- ; f tinning romjmnmt* on assemblies in nn atilnmnted process. Ferguson rrrordetl a small profit in 1990 on lower sutes ' following a breakeven year in 1989. The domeslir business rwlurrd it* loss in 1990 compared to 1989, while the European operation improve,! its margin on lower volume ; resulting in a slight inrrrase in earnings. Remlite is the leading supplier of fihrrglass-rrinfoFrrd i; L panels to thr transportation and building product* *;:' markets. By introducing new product* and expanding its - 7 '. distribution network, Krmlite continued to inrrrase sales - and gain maiket share in sjute ofdrprmrd transportation . and buildingproduct* market*. Although profits have * . declined over the past two yean, they remain at acceptable.; Irvrb consideringcurrent market conditions. The company - is positioned to take advantage ofimy economic upturn. f, Ilytlro-Airrmpinrmuimfza tiW . ,, system to rtierk the internaldrift tmxiagr* ofo contra/ratreprior^yl. Inixiuinp the trnnlrltmtm \cmrriral Controlprofiranninf.. y $ ; ;'v. It Kantian.aitnrtlimrtuwmim ilurnbtr, mtHslure-nwUtnt.' 'V. /: ' dmirnlire nullpanrliag, mu;: inlratloml hr Aim,filein 1WO, j y .4 smooth, Hints '"A"Jiir-ratrd :;: l panel. Karixhmprorittn alt tbe.i': benefit* afjiberffnttpaacU, plas^yf; ; , . , - **". * r T. N- v"' 1 * CRTX 0795 Managements Discussion andAnalysis of Operations At Rrmtoflexllndiutriola PTFE [tipeipaolatttoinatirjlarin/t . vprmtiamflam both ends ofIhr pipeat the sametimeamtdrtivers afull UKtt hydro-tnipriorto cmlamerMppia/c* ' KalUmaiyeadonRtfmhmrta Centerh tbeeafyautomated ' vendin/ftMarkinecMpablcof' CcrTec's sales and profits increased for the third consecu tive year in 1990 in a very competitive transportation markrl in whirh three of its major competitors terminated. theiroperations. CorTec is the largest and financially strongest manufacturer offiberglass-reinforced plywood ' panels serving the truck and truck trailer industry. ResistoflexIIndustriuI, a leading manufacturerof . rorrnsian-resistant, plastic-lined pipe, fittings and valves .. had a twortl year in 1990s itn third rnnHeeulive year of snips and profit improvement since relocating to North Carolina in 1987. Cast reduction programs, a strong industrial distribution network and nrw produrts should , enable this trend to continue in 1991. , Potyflan manufactures high-performance substrates and: radio frrtpirary raparitors for commercial and arrospaee;-; tisrs and magnetic rrsonanreimagit^;(MRI)rurthe tnrdiral industry. Salrs and profit were below its rrrurdl989!> ' .results, however this unit ronlintted to make a good profit;^ . contribution relative to its small sizei-^ ' National Vendors is the targrsl U.S.numufarturrrof-.^ automated eleetronir vending machines. Sales and profits?; declinrtl from its record level in 1989, which inrludrd sC large postal vending order. Although 1990 rndtsveieffi^ imparled hy a weak economy. National Vendors continued; lupin murkel share in the ll.S.thrmigh llte intriNlurlkuHv of new machines and runtinued aerrptanre nfexisting r y';-. produrts. In addition. National Vendors expanded its.;. distribution network in Europr, whirh shouldhavr a1'-;-;--, favorable impart in 1991;: . National Rejectors, GmbH had a record yrar in 1990;;:; following a significant improvrmrat in 1989. The rompany designs and manufartures coin validators and handling f;'. systems for vending operations throughout Europe. They ; , finished 1990 with a strong ordrrharktogand expert tor' l . capitalize in the roming yrar on the opportunities ' presented with the mmifiration ofGermany. ~ ran herorngesHfiHytirith shelf -V ] stablefoodandsnark products from mithia a common cabinet. CRTX 07S6 Wholesale Distribution 0[Hrating Profit Operating Margin 8 26.7 3.8% 8 31.7 4.3% IW 8628.3 8 29.1 4.6% Sales anil operating profit in 1990 declined a anti 16 |Hwn, mprrlivrly. from 1989 fur ilti* Wlmlesalc Distribution segment. Tin* Increuse in sales anil profit in 1989 over 1988 was tine |iriinnrily to the inelusion of I'almrr G. Ij*wi*. acquired in July. 1988. for a full year. Iltittig Sttsh iind Httor is the largest nationwide distributorofmillwork. window*. doors anil trialed produrts in tlie U.S. They experienml a difficult year due , to the weakness in the housing industry, wtiirb ileelineil to . the second lowest level ofnew rrsiilentialronstruiiionsinre: World War II. Iluttig** shipment* declined 6 |*ermit anil . operating profit was 12 pentmtkmer in. 199(1. One third -V,; idlhe irnluiiion in sales was ilue to the sole ofthe Sea-foe .. anil Gtirhranetinil* of l\itmrrG.Lrwi* in 199(1 anil 1989. rrspertively. In spite of these difficult conditions. Iluttig; . . was able to inerrase market sliare due to tight cost controls / ami further |rnrlrathin of the rrjdarrment. remodeling nml rvhidiilitntinn markets. Ilutlift* 1989 results were nlmve v tin* prior year due to the full yeareffect of the uci|ui*ltinn .. : of fofmrrG. Ijrwis. Tills more than offset weaknesses in . Iluttig's whofesale.inarkels and difficulties at its manufar- . , luring ojiemtinns relating to a strike at (lie lloek Hill. . South Garolina plant anil start-up problems at the Fresno, California plant. : Q: Cjitnr Snpplr iUmmla, a wholesaledistrilmtirofplumliing '' supplies, valves anil piping. ev|irricnred a 10 |HTrcnt ' volume decline anil 12 permit lower profit in 1990. due to: 4 a severe recessionary climate. Tills follnwtd u retluelion in profit in 1989on a small sales increase. Canada Supply., has limialileto reniain profitable ami increase its market share ilcspitrfirrre pricing pressures. -4'IhfiwSyrfiwand<imlrolse|ierirnmlstrongilemaml. .' loir its arlttalrdyalvcs and flow control systems,; ; - . : particularly from the petrochemical industry. Sales unit profit improved significantly in Initli 1990 anil 1989 - > ,, /through the addition ofdistribution farilitirs in Louisiana'// caiid<mlifornia.> . ;;r v". V, 4nr*rlliittifl"tmrtUrtilrtllipht" ttnur thrUinxotifa.^ ./ Mmmim imnprompunnitM millrdml .Uimiuliifiirolii*.,: , ' ,t llaitip trimtowurrunprmmt 1 rusioni-fcuifi homeK;^.: '.V-r.. - v.CyST J CRTX 0797 for Vror, Bndrd ftrmnbrrll (In thinuandt rxcrplprrtharr data) Nrl Salra Operating Costs and Expraaest Costofsalr* Drprrriation and amortization 1990 81,438,248 1,099,662 193,173 30,102 1.324.937 1989 S 1,455,589 1,129499 187,016 33.629 1450444 1988 . $1413,136 1,018485 171484 27401 1417.470 Oprraling Profit Olhrr Income (Uedurtlon*): Intrmt expense--nrt ofintrnrst inromr of81.224,82427 and 81,730 in 1990.1989 and 1988 Misrrllanrom--nrl Provision for Inromr Taxr Inrotncfroni tonlinninp Oprratlon, y- .......................113,311 _ 105.015 _ .95466-" (15,522) (16450) - (17,112) 4,699 3484 2,936 - (10,823) (13.466) (U.176) 102,488 81,490 39,733 32401 62,733 49.186 Inromr from Srgrornt Dislribulrd to SharrboMrri*' . ' ; Mrduui Corporation, nrl oftnxr* of86,727 ' Nrl Inromr ' ' ' 8 62.733 8 : 55.919' -< 8 62.483 Primary Inromr PrrSharr from <AnllindnpO|irrnllon* . ; ; Inromr from Srgmrnl Dbtriholrd lo Shawho!drr^-Mrdna Corporation Nrl Inromr-' 81.96 . 81.72 81.46, - -''V 814B'& Nrl Inromr- CRTX 0798 - C- Consolidated Balance Sheets At Drcrmbrr3l (In thousands excrpttftarr data) Asset* Current Assetsi Cash anil fash equivalent* ____________ ____________ Account* receivable, Irssalhiwaucr of ?1,090 ($1302 in 1989)_____________ Inventories. at lowrr ofcost, principally LIFO, or raarkri; replacement cost would lie higher ly $46,935 ($45,890 in 1989); Finished Finlshnl |iatlHand tmlig>>*t'm1ilit>i* Work In iirmi** ....... Raw material* and sunnlies Olhrrrurrrat asset* : Total Current Assets Property, Plant and Equipment at Cost* >- - Land - llmMing* and improvement* Marfiincrv ami equipment - . lew* accumulated depreciation' ` Other Asset* ' :: ~ Cost in Exress of !\ct Assets Acquired, less arriimulutrd amortization . -;> of86332 (81316 in 1989) ' .. '-i-.V1'. I4n1iilitln* sml Slmrrhnldrr*' Equity v/-' Current iJabUUkwt : . .__ Current tnaliirilie* of king-lrrradeht^___^___ ___ Ijiumsjpayahle' .______ ' Accounts payalile l : .. . - - - - Accrued lialiiiitie* " U.S. and fnceign taxes on inromr ' ~ Total Current liahililir* ~ > Long-Term Drbt :. - 1 ____ __________ Reserve* and (tthrr liabilities ........ ....... ....... Aecrurd lYndon liability. .......j. IMrrrrd Ineome Taxes- CommonSharrhMdrfw Equity*^t'CiKnjaonidiarr*,^wpe81.0(fc;^\:-);j^.^'l-\-^;-.v;:^'v.:; U:->/ AutbiihtJ UUKIOJM&iium'$>?.?.;< rV" ' .> j`: .Outstanding--31344379shore* (31,8U8,G27in 1989) afterdeducing 16343,755'. Retained earnin ^~ )- >:V Cuireney translatiiw adjustment Total Common Shareholders* ->* ~ ' -- CmrCsnISiMMi} 8 8,363 170,934 $ 4,855 173,050 133,388 134321 206,476 6,419 392312 209311 11.089: 398335 - 21,001 '21538$ . 123,019 . 127305'?-. 212.923 ':'229323# 388,916V* . -3803513 .200.71*^ ^r:i92Sife . 188333 19,619'= 26,131.%; 61,717 $661,811 $631337 8^ 10,341 27.621 .. 62,170 1 1302 174,138 101.113 ' 8,823 11,102 jjua 20.422 73319 ESQ l.873w 181,138: 481027 *' 235310 316.806 8664311 194.021^ 283344 8651357 CRTX 0799 f`lwn EmJnl Ilmatrfil th thmummlt/ <4t4i Hn from Oprralinp ArtUitintt fnmmr from mntintiing ojurutiiirn IVjirmnlhtn Amirtizatioa llrfrrmlTa\n> 'aJi l#*nl for) [intviilrtl from njKTiitinp worfcinprajiitul Hhidmil nrritnl fnim Mnksi 1990 802,7.15 23.118 _ 6,981 " 2.023 (1,883) 1989 833.919 21.3I4 " i-'-sn 3.796 T-TW 1988: 8 49.186 Ij9.:y 7.537" 1.993 (28.711) 81.300 Tolul from 1lumtllnu Arliilllm 116.529 100.907 <4i>li Hm* from ImrMlfld ArlUilinn (lajiilal rxiirtiililiimt (23.108) (33.189) (l7JKu| 1Ynrrri! fr.n .li.jMwiliimofrujiilal asMl* _ )jiuib iwHmmb __ __ ______________ 6,013 8,187 9.133 (8.080) 1.537 -1-- . l'a mrtil* fir anjui.ilimi*. nrl oflialiilitir* asMinin! of83.976 in 1990. . 81131. !989a!xl83!.!69inl988 - I'nurnl. from ilMinm' (11,250) 20.275 (1.193) 3.378 v r .. i ' (17.558) , Total fawn limiting Artivilin. 1jj^i 11 ] Crum Financing Arlivilimi :.ec '-.V,.'-' *v; <>i%l(lr>n<| (32.183) , ' . (29.911)' -/ . ' .r'-.' f-.'.'-V; '.'Mi V'; (23.690) (22.731) v ; V`. (23Jli)i ' HrarnuKhiiwofi4iann'. ~ S|irlijiliim*r\rmMnl __ _____ ____ Kn!rtn|ttiim^r*Hnimm!iarr|Hirrha*r right* ' ' _ _ iilJ.L, (21.897); (32.2%) V ; (27X0)5; - 3.993 :_;_a'3.I46^;^^;i42r?-: -. (738*. Vl Kittitf (11,391) (31.881) (31.128) .. IM.1: , ' -<4,~ IYihwiI. frnm iuiinniv of ImighTm ili'fit 11.195 21.1126 "Nitwit lh*imimrnt of long-term(Mil \rl intTrax* (ilrrrrar) in Mhnrt-lrmi ilrltl ........ (5Jti) 5.093 (i33ei)(, _V (I7.366); (31.030) 15.767 (9.553) (51.28> 2.069, Tala! from Honoring ArlhilMn ~ (51.117) (106.129) (19.339) Kffrrl >Tr\rhangr rat** on rash ami rash niuivalrnt* 309 30 190,: Ittrrra*r (ih-rrrw) in rnh and rn*h rfluivalmt* . 3,308 (33.113); - 27.383 l?- * (Iaofianilra.il nwivalrnt* al hrginninj: ofyear 1,855" 10.000 ' : 12.613 <!nh owl ra4i ciuivu!rflt at rnl iiTyrar S 8.363 8'4JL15 8 -W.OOOfV CRTX 08C0 I In ihimMimU rxrrpl thorrdal*) At I)rr-mbrr 31. 1987_________ _ _ ' Nrt innmr__.________ '_____ ____________ Uilhiiirttili _J;._ ___________ tiimmnn Shairn $22,426 ` '-- ' -- DUtrilitiliira oTMnlusa (air|M>rati<m romnwn Murk________________________ 1{i'art|iiiitliin itf I.Kffl.fHV KviyI** if utorlk iijiliiiim. I63.292 uliunn (!nnvrrnm iifjlrlirnltirr*. Mfliliiirw____ Hotrirlnl Mark awarilni. 32 1.296 4iarr. nrt (I.llllll 161 53 .121 lli*ilrtn|itHin ofmmmmt 4iarr jiiirrlm*rriptiti* ...... . , --_ (lurrmrv tran4atiim ailjnMmrtil At I)rrrmbrr31. 1988 Nrtinmntr . (ai>tiiliti<irn<I-/; . 3014 otiirkilUtHIratintul0jS63.607i.lMmi . ltrx|uMlkmf I<(W4I35 titan* 21.838 --- ---10.361 (1.269) KxrrrUrnfMorkojitit>n.236.l97 nlwn* OimrrHrai rtlrlimtura*. 23.377 oliarro ItrMrirlnl Murk atiartlnl. 393.420 olmmt. nrt lltirrrnrv translalimt ailjiiMmral At llrrrtnluT 31. 1989 . Nrt inrtratr 236. 23. .196 -- 31.808 -- (4i*!iillt6!mil llran|ui4liiiniri.tH0.|Ki2*Iuimi> KxrrrUr fMurk i|>t|irao. 383.711 otiam.___J _ Ginvrt>`n>n nfdrlirntnn*. 24.176 than* RrMrirtril Murk awaritnl 66.890 uliarot, nrt (rarmirv Iran4atiim ailinslmrnt ' At Drrrmltrr.ll. 1998 (1.010) 386 24 ; 67 -- $31*15 V. aJ a; SmSt$ . $109,666 -- -- Riiutml Kamlnp. $ 127.994 62.481 (20.468) Vturrmj Tr*n4atk*i Ailjartnnit $(4,162) _* Total >1inMiln* Rnto $233,724 62.483 (20.468) mmm (131) (131) . (26.162) 43 =. (27.170) 2.261 -- -- 2.124 278 -- -- . 331 7.431 (6.1.13) -- 1.600 (738) -- ________ -- (738) 972 92.4.16 '-- 163.723 53.919 (3.390)L . 274.627. sjM9fA -- (22.731) -- n .'j-f.- (22.73l) i; (10.161) v'; ; (31.027) 2.910 . ' , ' . 112 ^':(32JM6^ -- ' /> ty 3.I46&S' . -- I*. . *. 9.193 ; (22590) - -- i 'v->: 6X99$k --' ' ' -- ' (1.853) (1.855)?.; 63.260 191.021 (5J2-4S) - ; 283344.5 62.735 (23.6'XI) " <2.1.WH))C . (20.837) -- (212597); --1.607 3.993` 72 : ^ 56 : 1.915 --; 2.144 '-- ' ` ' --.! 7.169 4,156,v . 7^69- $ 48.027 $235,210 $ 2.124 S3I6J806 Financial Review Accounting Fotkim Principles ofConsaSdation--The consolidated financial statements include all subsidiaries. All significant intrrromjiany A'rt inrome PerShare--Primary earning per share calculations arr based upon thr wrightrd average number ofronunon shares . outstanding uftrr givingeffect to dilutive stock options. Fully itrms have lirrn eliminated. Certain |irinr year amount* have 1hto rrrlasxified to conform with the 1990 presentation. Mrduxa Corporation, which wan icportrd as a srgmrnt hrld fir ilixtrihution, w distributed to shareholders on Ortobrr 7,1988. ililuteil earnings |ter share gives rffert to the axxumrd nmversion ofronvrrtible delirnturrs ami the effect ofdilutive stork option*. All share information has Iteen adjusted to reflect the 30% stark distribution in 1989. the thrre-for-two stork split in 19S?and the Cosh Equivalents--Highly liquid investments with original 50% stock distribution in 1986. maturities of thrre months <r irss arr considered to lie cash Rprenurs--Revenues are generally rrrordrd when title passes to equivalents. /nrrnforiex--Inventories ure stated at the lower ofrust or market principally on the last-in. first-out (UFO) methiNl of inventory valuation. The effect ofinventory quantity reductions wax a rrdurtinn in roxt ofajipmximatriy $1,300,000, $1,500,000 ami $600,000 in 1990.1989 and 1988. rrxjirrtivrly. . thr rndnmrr. flrvenur* tin long-term ronlrart* an* rrragninxt under the lu'iwiitugc-of-ruitiplellun method ofarniuntlitgaiul are mroxuied prinripallv on eithrra ruxt-to-enst or a unit of delivery Imsis. These rontrarts irprrxrnt ajqimximatrly 3% of sale* in any one year. Arrounts rreeivalde imdmles unrrimhnrsrd costs ami accrued profits to hr Itillnl of$18.979.000and . $16,207,000 at Deeemler31.1990 and 1989. resperthriy. - Property, Plant and Equipment--Depreciation wax providrd primarily liv the straight-line method uver the extimatrd useful lives ofthe rexjiertive assetx. . Postrrtiremenl IteneJUs Other Than Pension--The Rnatirul^f:' : Accounting Standard* Board lias issued Statement of Financial^ ' Accounting Slamlaril* No. 106, "KnqdoyrrW* Arrounting for^-'v,;~ Intan/dhlrs---Cml htexerx* ofnet assets ar|uiml is liring , IWrrtirrmenl BenefitsOtherThan IVnsions'.whirh wifl rnptirr,^: ; m--nired on astraight-linr basis principally over forty years. aeenialsaf|Mi*tretirement hedlhrarrandlifeinsiiranrrbrnHnb^^ Otherintangjldcasset*areliefatgamortizedonustraight-linr -V during the years an employee provideii smienv; Theewn|ir^;?ivr{ , lutsis over tbrtrestimated useful Ihes which range from five to ' currmtly ex|ienses these lienefits on a rash ba*i*;.Tbr impart of twrnty years.- this stamlanl has not been fully determined, but thr ehangei*f^ '':'; Income Taxes--The pnivision for income taxeswos, a* in the . prior years, determined in aernnlnnrr with Accounting IVinrijilr* Board Ojiinion No. It. If tlir romjiany had chosen to adopt - -'. ex|terted to inrtease the annual exjiense for |s>stretirementftbenrfitx. The company is currently assessing the impact ofSFAS/.;"106 and its adoption whirh is rnpiired by fiscal 1993;V -r-? v-^'v Statement nf Flmmelal Aeronnling Standard* Nit. %in 1990,. ; the rhaiige would nut have Iteen material. United Stales Inrome taxes have not hren provided on undistributed earnings uffirrign sultsidiarirs since these earnings wiU hr required fur indefinite. ' investment and any taxrs on dividends cxjiertrd to lie paid will hr offset by foreign lax credit*. At Drrrrahrr31,1990 undistriliutrd foreign subsidiary earnings totalled $69,000,000. . Aequlsltiunsand Investments In February 1990, thr romjiany arquirrd Iear Romre (iorp., a manufacturerofpumps for the arneqiareindustry^ fir$10udIliod.S; ~ ' The romjiany purrhasnl the diajihragm jmmji lineofthe Crown' . Pump Gmqiany as an addition to Deming in Sejitrmher I990.;;'r\ ' In January 1989. Crane l-td. arquirrd the assets ofTlie Ilratrx ' Croup, Ud., a xjierialist in thr rrjmirand refurbishment ofheatI:; exchangers. Thr romjiany arquirrd the l^irifir CMPranned ' motor pumji jirmlurt line as an addition to Chrmpump in March!}.' 1989ami rrrtain assets of thr |iarts. resin and service Imsinessc; , of Brim Water unit Waste Treatment as an addition to Curhranr:. in August 1989. . rv.i 14 CRTX 0802 In Junr 1988. Until;; art|uiml fainter G. Lrwis Co.. Inr.. Pension* >nr ofthe largrst independent wholesale distributor* ofbuilding Thr rompany and it* snhshliarir* harr praxion platu whirh rorrr. pnxlurtx and related materials In the western 1'nitnl State*. for substantially all ofthrir employer* anil non-employer dirrrtan. approximately $13.3 million. In addition. Huttig aeiptiml two Thr plun* generally providr limrfil paymrnl* using a formula liMtriltuticm crater* in California in February 1988. A rannnl liaxrd tin Irngth ofnervier and final average compensation, rxrrpt _ pumpmatteringand srrvirrrtnnjny wo* acquired a* an aitilition for some hourly raqtltiyrrx forwhom tbr benefit* anr a ford to Chrmpurap in July 1988. amount prr year ofomirr. Tbr company |ioliry in to fund at ' Earh oftbrsr acquisition* was arrountrtl by thr purchase least thr minimum amount trquirrd by the appliralilr ' method, and thr mtnllit ofrqrration* ftr rarh ha* Itrrn inrludrd regulations. ; in thr (iminrtel rtBlrtmul* from Iht'ir rrsjirtllvp tluipn itf|mrrhnr, In thr runi|tBn)> aiTti|ilnl ^tulrmnit I'm forma flnanrlut lnformallim assuming thr att|iilaltiun of Amumtlng Standards No. 87. "Employer** Arruunllttg for . .. ' falmrr G. lirwi* had taken platr an ofthr beginning of 1988 in Pensions'*. firall C. S. |irnsion plans. Thrcompany siloptrd . provided below. The remaining orquisitinns did not have a this standard fir all signifirant forrign plans in 1989. Pension.-' matrrial rffrrt on thr mull* ofojieration*. rusts fir foreign plans in 1988 were drtrrminnl undrr provision* - . firth*inrfaWfrtwbr3/, ' (wrtBUMfirrrtylyribrrAw XHiar--"-.7" 1M '__' ____________ITM "___ . *?L,?ra*"9(iTnt____ ___ [____ ;_______ _'________ Ml of previous amounting standards. ti itoWii _____ ' lAand . Forrign Plans 1990 1989 , lnrowr from motioning ojirratitm* '_______ ______ l&Mi , Smirrmst--hmrfits ` ; loromr |w4rr fnw rontinning>jirniti((t_ ___ 1.13 . . earned daring ' _the peril*!_ ___. _ $7.901 Tjntl f t-iaOyC; jiawImiiillBt^rftoS^^ ' Intnestmston pn>]rrtrdhrnrfil ^ OnOrtnlxr?. 1988. the rompany distributed to it* shareholder* __ iJitSatiti ' 13.773 IWKt ofit* rrmrat anti aggregate* sulisidiary. Mrtlnsa Corpora-." Arluil Inn (pun) no ; f tion.on a lax-fnrr basis to both the rompany and it* sluirrholdrr*. . __Idan assets <212921^ v (6.063>g Imrooliatriy |trior to thr distrilmtion. Medusa |iaid a sprriol rash dhwlrml to the compainr of$81.3 million. This transaction mlurril; lltrrmniranjrVolmrrliiililnr?** rffttiljr Ata urgmcnl distributed tit sluirrltoldiT*.iIh* tvsiill* of Medusa'* operation* have not hrm included in thr continuing o]tm)t(onii.: '' Nrt *alr* of Medusa thnwgh thr dutrofthr dixtribution in 1988'; . . 'wirr $138.7 million. . / Art amortization and I' deferral ~ IVn>hm rtprtwv. _ Pension rosts fir ' foreign plans tniur toaili>|itingSr'AS87 Pension expense fnr mmjiany sponsored \ . ' iiension plans (21^10) 3.832 .. -.4*138 5dl3^ 8 3332 $ 4.138 $5,115 c :>jlV CRTX 0803 Financial Review *<* Thr following tahlr art* forth by fumlrd Matu* thr amount* rrmgnixnl in Ihr rtrtn|ianv' liatanrr i>brrt at IVrrmW 31. for company *)Hinxuml prminn plan*: ih thmmmb) 1990 Otrrfnwlrd rntlrrfuwlrtl Actuarial iimrnt valurofhrorftt nlifiatiam VrMrtJ $123,177 $124198 Vnnnlni a213 308 Wiimulttlnl Iropfil nlilijnillim F.ffirt of futon* |ixy inrrrar I'rojrrtnl Iwwfit obligation 9B[ Bali 161.162 13.10b 261 13.670 .Vwt* unit imuk numm rrlatingto arh liroefil*: FumSnlawt* at fairvalue lt<x>V iH-mi>inn. on - 173.323 6.012 179.333 10.163 2.931 13.116 A**H* amt Imnk rr*rrve prater (le*) than tttnjerteil broefit ol>lij3tion $ 13.073 8 (23It : Cua*Mingf: ttmrwfiikrJ nrt awri (fialitfily) at <IalroTwluftlitin lr*aamrtiMtion . '-* I'nrrnipiicntnn pdn/ttowr*)- - ' - ?~ --oartl |>riurrrvrrrnt 8 20.122 ~ (4.259) : two> $ `189%. _ (iiwoih nwnl mioimi to rrmgnwr minimum lialiitily 8 13.073 2.137 0 <231) 1989 (hrrfnmird l:ni!rrfutwlnj $108,931 4.275 1 lilwIMi 33JW> 118273 $1,423 133 1.380 128 1.708 I?>.7I3 8.971 I883i87 679 901: 1280: 8 40.112 $ (128) $>t.531:^:g?$ (4l6r% f $ 40.112 '738;/ 8 (I28P-; Tbr awumrtl Ii*rount ratr. mjKxln! rrtum on a**rt* ami ratr ofnim|irn<tnliim Irvrl innrnr for final |my |tfan* owl to tlt'lrr* mlnr iIh> pension r*|N>ite ami fomlnl nlutun Infnrinallim ttrrr 8.591.9.391 am!6.2%.rr)ijnTtivrI*.forH.S.platwuml 8.391 to991.991 ami 6,2391 to7.5%.re*pfrtivrly. for foreign plan*.; / Thr company partiripatr* in *rvrral multi-employrr |ini*ion - plitn. ttliii'li |irmiilt> Itt'imfil* lo twlnin rmplnytw tmtlrr mlltv= thr luir^iuiiiiiip ujuvrmi'iitii. Total rutilrllmllim* lit then* phut* -: wrn* approximately $I.298.(HM) in 1990.$1,377,000in 1909ami $1.183.000in 1988. ;ip :? Cm*C*.ami At Drrrmlirr31.1990 all plan asset* an* invested in listed . Morin and bond*. Thrsr investment* inrludr romnxm stork of thr company which represents 3% ofplan assets. Thr eost ofproviding health rrr and lifr insurance benefits on a rUimx paid bast* forrrrtiin retired rmjdmmi wan approxi mately *2,000,000, *1,900.000ami S2.000.000 in 1990.1989and 1988, rrspertivrly. MwrlUnfpq*---JSrl___ IWInnUI/lmArll ilnlhmnmH)_______________ Cato on disposal of capital assrts--nrt Dividend inromc _______ Gain on mIt ofmarketable Foreign exrhangr pdnlloss) . Other , . 83.428 4t9 ____ ISO 43~ 629 84.699 82.949 I3t 81.101 -- 83.384 #2.936 Arcrard liaUKUn*: Payroll and ethrrraijdoyrr rrlalrdexpenses: . fanw,'= '' ' ~ ' SahwaBowanriw'aiMolhirrrlated costs , ?VrTHmi* , IntwM i Taxesotherthan income : - Profriiwpnalfmi--' Environmental:- ; Olhrr' -' 822.901 14,192- .6327 5,827 3JUU 3,062 2313 1,997 12,502 872.621 822,139 14.287 11.491 44114 1492 3,030. 22S96 2,600 12J822 877.271 ; Reserves and Other liabilities, ;,4Qnrmtrr3Ifirtn6> '.-tpsaranrr' " ______ ; Employer hrerfils'Environmental-- - ~: Olhrr- ' ` 1990 84,727 1989 84327 88325 89.266- Short-Trrm Financing At yrawnd ibrrr nrr availalilr with domrstir and fnrrign banka 8188,000,000 in short-term rrrdit linn ofwhich 8161,000,000 wrrr unused at that time. Long-Term Financing AtDfrrmbrr3Jf!*tkimi9mh) CrinrCo, Senior tlrhli Hewitttog will! farUlly due 19*41 8 13,700 8 18.26? Subordinated drbt: 754 Sinking fund debentures due 1993 - ____7.612 8.432 754 Drhrntumdur 1994 44,781 44,781 5% Convrrtililrdrbrtiturr* due 1993 and 1991, convrrtililr at 83.70and 84.26 Olhrr, principally rapital lease obligations 730 1,788-: Total CraneCo. Sulniiliarini: 91/294 Sinking fund debentures due 1999 THiM.iri.mi 674117 10.000 ' Canada dor 1991-1996 12,068__________ United Slain due 1991' - - --ijao IndnstrialRevetroe Bonds, . :. Other, principally capital Iraw obligations 9.302* ' I3j079%: Total subsidiaries 8104.143 8119.102 The company had available 883,000,000ofunused long-term rmlit agreement* at year-end. At December31,1990. tbrprinripaL j amounts oflong-term debt repayments. net ofamounts brld in, trrasury, mjuirrd far thr next five yran wrrr 810,544.000 in i - 1991,89352,000 in 1992,817,724,000 in 1993.85*319.000 in- 1994and84344.000in 1995... . '- , During 1985 thrcompany rrratrd an irrevocable trust of .. direct Unitrd Statrs government obligations to sathdy tbrschrilulrd' |mymcnts ofpriitriiud and Interest on the810.606,000outstanding r principal amount ofthrcompany's 61/204 Sinking Fund Drbra-; -. lures due 1992 not hrld in the company's treasury. At December^. 31,1990 there was 83,990,000outstanding. CRTX 0805 Financial Review In 1939 flip company mlrrmrd at) ufits oulutamlinp 101/2% SuWilinatrd Sinking Fund Drlmtunr* lur 1991 at (hr rrdrmp* Ihmtalrxprt>*r fir aH operating tra*r*wu$20j083j000.' ..! $2O468JXand$18.769j0n0fir 1990.1989and I988.m<prrthrly. tiim prirr of 100% ufthr |>rtnri|wl amount. Thr $22.8 million Tlir nml da**ri* capitalized undrr lra*r i* a* follow* at - prinripal amount ofthr Drlmlurr* oututamlinpwa rrfinanrrd I)rrrmlrr31: through thr rnmpany** revolving rmlit agrrrmrnt at an intrmt ratr uf9.13% ami * to lir rrpaid on thr *amr nrhrdutr a* thr old iiwur. $4467.(XX) annually. Thr company** $100 million revolving rmlit agnremrnl. whirh trrminatr* on Drrrmhrr 31.1992. lirar* intrmt on thr . drlit outstanding Imivd on thr Irmlrr** primr nr rrrtifiralr uf ratr. nr on iIh* laimlnn Intrrliunk murhri rutr. Thr Huittlinp* and imiirmrtnrnt* Marhinrrv and rrtniptwnt Lr amnnulatrd drfirmatiun 1990 910.369 ans 19.014 13.926 9 .1.088 1989 $12318 8.413 20.963 13.780 $ 7.183 rmlit aprermrnt contain* turinu* mYrnunt*. thr moot mlrirthr ofthrw mpiim a minimum Irvrloflangihtrttrl worth. At Drrrmhrr31.1990. tonpildr nrl worth cwrrdrd thr mpiim! level Ity $114.-182.18)0. At Drrrmhrr 31.1990. thr aggregate amount ofnutmiiliary ranting* available for dividend* wait $192,983,000. Thr nmtjwuy ho* established a srlf-insuranrr program torotnr . rrrtain liability rtistscxrludrd unilrr dnlartihlrrlaunc* ofit* . V various polirir* in forer. At Drrrmlirr31.1990. thr company had rerrivrd rrrtain =: pro]Hi*nl notirr* ofadjustment to fnlrrnl inromr taw and wa*i ^ intolvnl in various olhrr rlaim* and legal action*. inrludiiq;v://:. OimmftroralAmndContingrnrir*'' thn*r ofan rntironmrntol nature. arising in thr ordinary course*;: *; Thr rompany lra*r* rrrtain ofit* warelaiuw budding*. manuftH-- - oflwsinr**. In thr opinion ofmanaprmrnt. thr uhiraaWjdipH^;;: : luring forilttir*. vrhklr* amicipripromt widerrajlital and tijirralmg *itiim ufthrxr mattrr* will not havr a material admarjrflrrt wtVj Wfrt.t''... Irar with various trrm*. Certain lease* mntain renewal tr - i ; thr mm|ianyV iinanrtal romlilioo.^ 'sC;.'-''7'' |inrrha*roption*. Fulurr minimum |iavmrnt*. liy yrar. and in thr". ' aggregate. umtrr thr*e lease* with initial or remaining trrm* of Inromr Taw* - V':r .'7-'77^r"7r7- . onr yrar ir morr roni>trd ofthr following at Drrrmlirr31.1990:. ; A rrrom-iliation ofinromr hrforr taxr* to thr provision Forinromr:1;', laxm(frtlrral,tatrandforeign)ia*follow*: = '-* ' / .* rfmlmrmmhf 'r: IWI - : -. lanital Itprratinr . SuMraw l/<Dr IrtMH . Inrnrar . \fi . $1,181 V $12311 $ 127 $1.1.383: l/llfJWuUKjal Inromr Irforr taw*; : " Dnnuwilr 1990 : 9 86.116 1989>:' 1988.V -. $68.IW . Mwras'f. 1992 ' . 1.198 : = . 10336 m luifc/ Forrfnn : 16472 23.110 21.137^- 1993 - . i99i ' 1993'. Thrrraflrr .'Total minimum- < I jra'T payment* ~ ` _ -j' . ft"!' . 313 392 2.609 7379 109 6^33 ' 4 4.112 3 14382 -- 8.111 6.762 4JJ0I 16JF/1 ' 7.161 $53,093 $741 $612*16 Statuton fnlrral tax at 3!% lnrrra*r (mlartiun)from: -' Fonripn and Inral taxr* (!owlill ^ioihtaxaldr FSfi inromr 102.488 31416: 4477 722 (1.061) 91479 - ME 31.137 .. 27407^; - - ZiSlB , 3,756 388 ; 363 . (798) (568): Intrmt;: - 1365 Dlhrr 869 883' 1,016. lYrsrnt valor $5399* lYovoinn for inromr tuxr* S 39.753 $ 33.660 $32404-; wf.. ; Thr wrightrd average intrrr*! ralr fir rapitul lra*r* i* 7.2%. IVrrrnlup" ofinnanr Irforrtaxr* 38.8% 38.9% 39.6% -` r >' . */ . ' a*V .t '-"'.r - --7*. ' m'm\K . - ' I--*-' t'-* = 'Y'/ ." -V ` '...*, -- * i VN - j- ,! ^ **,- . , -*-`. : .V": -y?: ` -* \ * - ** ' ' . . ' > , * .* - v*'* . . * ">. \ y* *". .. ", 1 ", C V., ... 0 ; ' ! T*. `.7 . : r )'V - ; - rl.t . ;7 *-V "- * 18. CRTX 0806 O--r. !*> ant, Thr fiirrpiinp provirinn inrlndr* rhargr* for foreign taxe* company awarded 63.000*harr* in 1990. amt. a* ofDrrrtnbrr3I," of $7,497,000. $9,380,000 ami $9,188,000 am) Mate taxr* of $.>.701.000. $1,482,000 ami $1,147,000 in 1990.1989 ami 1988. rr*|Mflivrk. ` 1990.321.236dwresaroavnilablr for futureaward*. Compensation expense i*drtrrminrdlm*rd on thr markrt value at the timr of \ award and i* normally amortized oxer the five yrar mtrirtioa ` The provision for inromr taxr* in mm|o*rd of thr following: |teriml. Thr 1988 and 1989award* pruvidrd for early *rating if ihiUwti ____ "______1990 iwTri^lmwnrlaxw" " $ 2,023 1989 1983 &7%" $ 1.993 Oirmil_irmmrta\r_______37j420_____3Wy___21J^I $ 39.753 $ 3.1.660 $ 32.30) thr rom|>any* Mock prirr inrrraurtl 30% from it* tnarkrt value on thrdatr ^throriginal award. Dur to thrfavorablepnrfnraanrr ofthr mm|iany* stork prirr. mtrirlion* on thr previously unvoted portion of 1988and 1989 award* lapurd in 1989 and 1990. irsprrlivrly. mailing in a mm-ra4i expensewhirh mlnrrd TIh> rotii|mni'iil* oftfi>r**rn*il inrntm' lu\ i>x|h'iim' are h*follow*! 1990 t*MP> 1988 tipiTuling profil liy $1.1 million or $.0il |trr hun* in 1989 ami $!). I million or $.0fi |H*r *hurr in 1990. K\rrw.t<Wiritt . tax lri>nTlin - Intrntnry rapilalization _ ItrumrK thher $ (273) (338) 812 14(22 . suta (198) 1.073 I.ft7l $ IjtWP (882) (371) 1.739 Prrfrrrrd Sharr* Purchase Right* In July 1988. thr romjiany distributed onr prrfrrrrd share' purchase right for rarh outstanding share ofrommon stork. The ' preferred right* wrrr not rxrrri*alilr when grantrd and may 44 ' 4 only limimr rxerri*ahlr umlrr rrrtain rirrumslonrr* invohh^p'i ; $ 2.023 $3,796 $ 1.993 artual or potential an|ui*itton* ofthr rompany** roroauw *tork:.-%r.;: - by a prr*on iraflilialrd |imum*. Dritrmlingupon tbr rimnapp:' ;: l'i BrnrarrhandDrxrlopromt / v4\V-''-":; .. Manrr*. ifthr right* Iirromr rxmi*aldr. thr bolder may % . IVimIoH drvriopmral ami mginrrringriwi* aggregated upproxi- ; rntitlnl to |>urrha*r *harr*of thr rtmipany* Srrir* AJoniw^^p ; p matrix $17,000,000. $11.4004)00ami $12,000,000 in 1990.1989: lAirtiripating IVeferml Stiwk.ir*ham(^rommon*tork*ft!i^4;p U ami 1988, rr>n>rrtixe!y. In addition. approximately $7,000,000. anjuiring |n'r*on. IVeferml *harr* purrha*aldr uptm rxrtrirj4v> : ti$1.I(N1.000ami $7.500.000wait rrrrivnl in 1990.1989ami 1988. . ofthr right* will not hr redertnalile. Rarh prrfrrml nharewiB? y.v ' mprrtivriy.fiwmtontrr*)Mm*orrdrr*rarrb and development. In* rntitlnl to prrfnrntial right* regarding divi*trml and Bffidiij&ip relating to projrrt* within Knginrrrrd Industrial Produrt*. tinn paymrnt, voting jxiwrr. and, in thr rvrnt ofany jVjo v' ronnoliilatkin or othrr transartinn in whirh rommon nham arr':B'-l>. nrhnnp'tl. iirrfrrmlinl nrhnngr rntr. Utr right* will trmiin inp \ 14. A nummary ofMml ojillun truitwui'liona follow*! ,v rxlKtcnw until June27.1998, unit*** iltry an* earlier lmnhtrdpt : 4 f-4 '; ; '. ' . NumWof rxrrrl*nl or mlrrmnl. The ronjjmny ha* aulharizrd live nullionj'v;.. c -y,:! Share* jtharr* of$.01 par valur prrfrrml utork. 'J'-, P Outstanding January 1.1990' ; : <t|t!olHgantrd-;' . ; __._' 'V Option* expired V' ,* - ; . Option* rxrrrised - ' OiUUndiirigIlrmnW3l^99j^\^^ ' ' 1.398.933 ____ '_____ (33^29) ' (335.711) Analy*!* by Segment of Bnninne- . The mmpany ojieratr* prinrijtally intwo imlintrir*. Enpnrerrd IniluMria) iVodurt* and AVhokvalr iKutrilmtion. Oprratkm* in tbr^- / `; Knpnreml IniluKlrial IVodurt* urgmrnl umdvr thr pmlurtion;: and xalrofvariou* enpnrrrrd prmlurt* inrluding valvm, *pmalty'cf .. At Drrrtnl>rr3l. 1990, option* for748,808 ntmrr* wrrr rxrrrtaldrami 206538 (dunr* wrrr available for grant. IVr share option prirr* rangrd from $6.56 to $22.32. In 1989, option* for inunps,antiskid Imikingronlnd *yi4rnMfirtbrarrntparrindu*t>7iV'. v a variety ofpntdurt* and niuipmrnt with ilefrnur appliratit>n*y/ . . riertronir vendingmarhinr*and ndnhamllrr*and fihrrgjam#*;y?? p. rrinforml ponrl*. 0]>rrationi in thr Whidmalr Distributionrgmrnt fc ; - 236,197*harr wrrrexrrrwrd.Thr plan i not a coraprroatury . invokethe dutribution ofmillwark,window*,door*and rrfaied planwhirbwould rrqnirrarhaigetoinrorae.y .4 . .. 4 product*, plumbingmipptir*, valvr* and Rang, actuatedvahnw^ip^. The rompanyVmtrirted*!^award pWproridroftrs--. 'and Cowcontrol *y*tm.x'. :1a I award* ofrommonrtork to kryoffirrr*and employre*, iubject; : An airaljrHsofgalr*,<4atit^profit, a**et8,aqitalexpm&ann^pj. to resale irlrictk*. Therorrmt rotrittkraxon outstanding > ^4ifiwiwifeCTi^wwnrtfaaiBin<i;i|inwiiqipiygaiigi^^^g^f award* air whrduM to !ap*r, in part* flvrra fivr year period > ' - Management% ReeponalblttUes tor Financial Reporting The accompanyingctmsolidatrd financial statrnjrnt* ofCrawCo. and subsidiaries have been pre-pared by management in confor mity with generally accepted arrounting principle* anil, in thr judgment ofmanagrmrnt. prrsent fairly and consistently thr company** financial position and mult* ofoperation*. Thrsr. statement* by mvessity inriudr amounts that arr based on management'* best estimatr* andjudgment* and givedur comiidrration to materiality. The arrounting systems and internal accountingcontrol* of thrcompany arr drsignrd In provide rrawnahlr asMtranrr that thr financial rrruril* arr rriialilr fur |irrjmrlnjtronsiilldutnl financial atatrmrnt* ami maintaining ammntuliility for a**rt* and that, in all material rrsprrt*. asset* arr safeguarded again*! loss from unauthorized use or disposition. Qualified personnel throughout the organization maintain and monitor thr*e internal accountingrontrol* oo an ongoingl*i*. In addition.thecoci]>any'* internal audit department y*!rmatirally rrview* thr adrquary and rfrrrtimiem ofthe rontrol* and rrport* thereon. . The consolidated financial atatrmrnt* have bren audited by - Drhrittr&Tourhr. independent rrrtifird public arrountant*. whose report appear* on thl*pagr. The Audit Committee ofthe Board ofDinrton, roenpo*ed *olrly ofemtiidrdirrrtor*. mrrt* periodically with management and with the company** internal auditor* and independent auditor* to rrvirwmattrn relating to the e}uality offinancial reportingand internal arrounting rontrol and the nalurr, extent and mult* ofthrir audit*. Thr company** internal auditor* and independent auditor* have free acre** to thr Audit Committee. R. S. Evan* Chairman, Chief Exrruthr Offirrr and IYrsidrnt IjV (/if***J. P. Cronin . Vire President--Finanrr and Chief Financial Officer^. v- t--i-*f-,-*i-yw` -ft^*-\ ' S:---T-. v IndependentAuditors'Report Detoitte*:; - Iwcftet. r . v, * - To the Shareholder* ofCrane Co.: : Wehave auditedthe accompanyingconsolidated balanre sheet* - . ofCrane Co. and its subsidiaries ns ofDecember 31,1990 and p , 1989, and the related comwlidatrd atatrmrnt* ofinromr, ^ ' change* in common sharrhoJdrra*equity and cadi flow* for each ofthe three year*in the period ended Dcrcmber31,1990. These finandal statement* are the responsibility ofthe Company's management. Ourresponsibility is toempress an opinion on7-;' these financial statements based on ouraudit*: ^7.7: .. the amount* and disclosures in the financial statement*. Anrr audit also includes assessing thr arrounting principles used andi'i'c significantestimates made by management, as well a* evaluating.-; the overall financial statement presentation. We believe that onri._. - audits provide a reasonable basis for eraropinion. ^ ' - In ouropinion, surh ronsoltdatrd finawia! statrmrnts presrnt f^ fairiy. in all material respects, thr financial position ofCraneCo; and its subsidiaries at Drrrmbrr31,1990and 1989, and the-f mutts ofthrir operation* and thrir rash flows for each ofthe? t; there year* in the period ended December31,1990 in conformity .: ; with generally accepted accounting principle*. -. ; r: JozicJLjl. accepted auditingstandards; Those standards require that we:; : plan and perforin the audit to obtain reasonable Bitiurance alniui .v: whether thefinancial sUtcmmts are freeofmaterial miUtemcnU. ; An audit indudes examining, on a test basis,evidenresupporting New York, New York January SB,1991 r.: . 20 .: CRTX 0808 Liquidity and Capital Resources oc ,*<***. The company generated $86.5 million ofcash from operating , activitiescompared to $100.9 millioa in 1989and $137.4million in , 1988, which imttdrd a qterial $81.3 million dividend from Mrdusa Corporation prior to its distribution toCrane sharrholilrrs. During 1990, the company arquirrd two businesses for $41 million and sold two businesses for $19 million. Several small acquisitions wrrr made in 1989to expand units of Engineered Industrial Products, and in 1988 the company invested $48 million in new businesses, primarily in the Wholesale Distribution segment. During 199(1, the nimpany sold its fl.4% jmslllnn in Milton Hoy for approximately $8 million, (lujiltul expenditures of$23 million were made in 1990 compared to $33 million in 1989 anil $18 million in 1988. Thr company continues to improve its finanrta) condition. Net debt totafin! only 45% ofequity at the end ofI990 compared to 53% in 1989ami 64% in 1988. Thr current ratio at thr red of 1990 remained tinrhangrd from the prior year at '< 2.2 to I with woriungcapital totalling $218 million at yrar-rnd.. . I> During theyear $10 million oTdrlit was retired. The company < had $161 minimi ofnnusrd credit lines and $85 million of. fr nvaiUliWnnanringnmterbmg-terrocredit agreements to;: |pnide,mfliricfltfinum>ta] flexibility. Ifinterest rates decline in 1991, the rompany plans to evaluate various financingalternatives to reduce its reliance on . variable rate debt ami provide for its future long-term debt refinancing needs. During theyear thrmrajiany purchased approximately 1 miTtim shares ofits common stock fur $21.9 million. The rompany is currently assessing the impact ofStatement ofFinancial Accounting Standards IVo. 106, "Employers' Accounting for Postrrlirrmrol Benefits Other than Pensions,''* whirh will require areruals of(Htsireliremenl health rare and life Insurance lienefits during thr years an employee provides servires. Thr rompany currently expenses these benefit* on a . cash basis. The impartofthis standard has not been fully . determined, but thechange is expected to Inerease the annual expense for postretimnent benefits. Results of Operations--LastThreeYears -i", Results are explained in detail in the Management"* Disrasuon^;:'.. and Analysis ofOperations, pages 4 through 9; .if; CRTX 0809 Inlmrtannal Salrn - Ojtmting Profit: > ImlurtrySrpmrntic, j Knpnrmdjtedurtriol IVnilurt* Wtmlniale Diulriliutiim . Grngrajilur Region:-,, United Stain* (lanaijaj_____ Ollier liilenmlimtul CtrtMiralP _ AwwUj; ' > ImltwtrySffmmtn:-.,v Kn&nrrml InduKlrial Itarfurts Whn!r*alr Distribution' >' ' . . - : Gpogrojihir Hrginn:>_ : . United State*-?- - Caaadafe'iV.v/.'- Olbrr International 1,459,147 (20,899) 81,43842)8 100 1,479.0)8 (23.459) $ l.)55jaw 100 U31.209 (18.073) $14113.136 100 8 103,923 _ ' 80 _$ 90.700 .................... 20 74 > # a3M 8 113.311 $ 108,100 83 1 7,575 ~ ___ 6 IWI,V 11 130.620 100 07,309)" 8 113,311 $ 105.0)5 $ 95.666i .-v 8 92JS72 - 76-;."-$*. 82423fcl&fei ___ 122.441: U'iw)' $ 104.0)5 ____ HW.9?Si 1(10 $ 95,666 $ 426,459 211,277 637,736 27,075 8 66-1,811 67 33 100 $ 461,837 85,566 73 13 $ 378,779 . 235,953 614,732 394125 $ 05)4557 62 '-'8 388.978^''/ 62 38 240.136 38 100 629.114 100; 52.626 681.740 S 442.547 96,2-IS 72 $ 461,9)1 16 86.670 CRTX 0810  Analysis by Segmentt***-* OiwlalM4Mn : Capital Expenditure* 1990 1989 1988 Depreciation and Amortization . 1990 1989 1988 Industry Segment*: Enjanmnl Industrial Product* - HTndrsalc Dlntriliution 820,685 4,454 $ 18.673 4.125 $11,825 821348 5.767 " 4,946 $23.652 5531 $21,707 4250 i? Ciuroratc 269 10591 273 3,308 4.416 1244 825.408 $33,189 $17565 830.102 $33.(29 $27201 Gropraphir Hrpun: l>nitnl Sintra 813.f26 $ 26.120 $11,179 $23,3113 $27,880 82I.MIR ijUumk....... J.......... ....... ...............:_.'Jft.745 32253.00?_____ 3,022.... ,,,,>19S___ __2.I63 Other International ________5,037_______ 3jlt_______ 33W______ 3,697_______ 3JI,i______ 3.530 Five YearSummary of Selected Financial Data Vrnni tnjnlItnmbrr3l ' flu tftmwmd* rrrrpf xftorrdfinu NrlSfllwV-- Drprrrinliiin and Amortization Operating Profit ~ IntrmtKxi*rn*r ' - Inromr before Taxes--Continuing Operation* Provision for Inromr Taxes Inromr--Continuing Operation* Inromr Prr Common Share--^Continuing Operation)* Primary. ' ' ' - ______ Puty Diluted <^hI)iyWrniltl>s,larrtlPerComraonSharr Awl* " - : ' - - 1990 I9R9. 1988. 1987 1986^- $1,1311,218 $1.155289 $1213.136 $1,099.5% $1,013,718 " 30,102 33.(09 27201. 23,744 21.780,V 113,311 103.045 95.666 ~ 75.130':'- 75,014.5-i 16.746 19,177 18212 19.100 26.650 > 102,488 91279 81,490 58241':-.' 55205;:- (39.7531 (35.660) (32204) (26220)' 8 62.735 $ 55,919 $ 49.186 $ 32.704* $ 28285 T: 81.96 $1.72 $1.46 $.97* $.94 1.94 8.7500 1.69 $.7083] 1.15 $.6167 .91* "$.5833 s1 .87 $5200' 8 661,811 $ 651257 $ 681,710 $ 634.767 $ 612. 396: $ 225,9315 Quarterly Results for the Year tom*** CrurfaiilMilliriii- Quarter Oathaiuaaibnrrpipmharrdata)FirtSrrnnil__________________________ Third______fourth ' Year 1990 Net Sale*_______________ ___________________ $352,152 $380,366 $372,491 $333,239 $1,438,248 Cross Ptrofit_____________________________________________ 75.000 01.194 80.885 76.244 316.323 Net Inrotne 13.517 16.072 17.095 16.051 62.735 Primary Net Income Per Share $ .42 $ .50 $ .53 $ .5) $ 1.96 1989 Nrl Sales Grima Pnifll $348,149 69.529 $383,938 79.233 $376,330 76.215 $317,172 $1,455,589 76.253 301.232 Net Income 16.144 15.487 13.593 55.919 Primary Net Inromp Per Share $ .33 $ .49 $ .48 $ .42 $ 1.72 CRTX0812 4 ,,Directors , Corporate Officers . "N- Executive Offices , E. Thayer Bigelow, Jr.3J President, .Home Box Office, Inc., C.alilc Programming and Entertainment Robert S. Evans ' Chairman, Chief Executive Officer & President of the Company Dante C. Fabiani Retired President of the Company Richard i).. Forte '. President, Forte Cashmere Company, Inc., Importer and Manufacturer Dorsey R. Gardner' President, Kelso Management Co., Investment Management . Robert W. Lear Director-of Various Corporations 1 Dwight C. Minton ,J _' Cliuirmun & Chief Executive Officer, Church & Dwight Co., InK, Manufacturer.of Consumer-and Specialty Products Charles J. Queenan, Jr.3 Partner,.Kirkpatrick & Lockhart,/ Attorneys at Law ./ t Arthur A. Seeligson, Jr, Independent Oil 0|>enitor, . Investments "" 1 . Boris Yavitz IJ t The-Paul Garrett Professor pfcPublic Policy and Business Responsibility & Former Dean, Cojumbia University', Graduate School of Business v Robert S. Evans \ 1 Chairman, Chief Executive Officei & President B. Jack Barnes' Executive Vice President Jeremiah P. Cronin Vice President-Finance & Chief Financial Officer Thomas C. Fish Vice President, Corporate Development Paul R. Hundt Vice President, Secretary & General Counsel Robert J. Muller, Jr. Executive Vic? President Anthony D. Pantaleoni Vice President, Environment, Health & Safety Richard B. Phillips Vice President, Human Resources . Michael L. Raithel , Controller Crane Co. % 757 Third Avenue t Nrw York, NY 10017 ' Telephone:'^ 12) 415-7300 ' * Form '10-K _ . Copids of Form 10-K for 1990 as filed . wilb'the Securities and Exrhangd Commlulon are ^valla(ile upon written request from the Secretary'* Office at the address above. ' Annual Meeting The Crane Co. annual meeting of shareholders will be held,at 10:00 a.m. onMonHay, May 6,'l991"t Manufacturers Hanover TrusfCompany, 270 Park Avenue, 3rd Floo^, New York, NY 10017 Stock Listing .Crane Co. common stock is traded on the ' New York Stock-Exchange. *' ., Stock Transfer Agent and Regbtry of Stock ' First Cliicago Trust Company of New York 30 West Broadway ' ' New York, NY 10007 U Bond Trustee* and Disbursing Agents^ Citibank, N.A.. ~r " ,. ,.New'York, NY 10015 - " \ Bank of America National " : Trust and Savings Association.' Los Angeles, CA 90054" . *' ' 'L* - ` / Member of the Executive Committee '* Member of the Audit Committee :i Member of the Organization and Compensation Committee <*1 Auditors' '' . - Deloitte & Touche ' 1633 Broadway ... New York,-NY 10019 ** l ft. I -- . ` * Equal Employment Opportunity Policy .. Crane Co. is an eqhaf^pportunity , employer. It ja the policy of the Company to recruit, hu-e, promote and fransfer to all johjslassLficgtidqs without regard to race, color, religion, sex, age or national origin'.' . CRTX 0813 Crane Co* 757 Third Avenue Nrw York, New York 10017