Document bZrVdgBDNoO6Vbe9QD34XB0g
f. OF ALABAMA
APR 5 1967
IlSINESS LIBRARY
CRANE CO. ANNUAL REPORT 1966
\\l>
EXHIBIT
1,
-
, - .< i ?
CRANE CO, ANNUAL REPORT 1966
CONTENTS Financial Highlights ................................. 2 Letter to Shareholders .............................. 3 Ten-Year Consolidated Financial Summary 4 Consolidated Statement of Income.......... 5 Consolidated Statement of Earned Surplus 5 Consolidated Balance Sheet .................... 6-7 Consolidated Statement of Changes in
Net Working Capital .............................. 8 Details of Long-Term Debt........................ 8 Status of Stock Option Plans ................... 9 Report of Certified Public Accountants . .. 9 Review of 1966 Operations........................10 Worldwide Facilities ..................................20 Officers and Directors.......Inside Back Cover
brans conde United lllumir
Harbor Unit i ting unit by re nts and autor boiler water w iess than 25 p
The front cover design on this 1966 Annual Report symbolizes Crane Co.'s worldwide operations in the fields of (1) fluid control (2) water treatment, (3) sta bilization of moving objects, and (4) comfort condi tioning and sanitary control. Highlights of activities in each of these areas will be found on pages 10-19.
-^H, '*,;v,.i` - ?, S.* **Jkjts*
,; Sales ....... ` '''V'J
' Net Income
Cash Dividends"* .'-" iV'.-.. ,-y. .
Net Working CapjtaF * Total Assets' vv?W;.*--*
Common Shareholders' Equity'V::':'l.:-............
Common Shares.Outstanding at Year End ... ___ *
' > 24**..1 1 Ratios at Year End:-. : : ? ;
Net Income to,Sales vr. .fr............
.
Net Income to Average Assets ...
............
Common Shareholders' Net Income to Average Equity
' ' \'C'
Current Ratio . . . . . > -... ; .... ..-..
. . ....... '
Per Common Share:1.'2
'
Net Income .
, *3=^|
Depreciation ... '. j.,...........
Cash Flow from Operations ...
Cash Dividends -.....
Common Shareholders' Equity
*#1966^
- - * JdH
$405,907,000 ;^fgg
11,251.000-
7i
3,517,000
107,044,000 224,423.000 126,773,000
ioi 20^
u93
2,482,152
3
2.8%' 5.2% 9.0% , 3.2/1
r'iyfl .4*1
$ 4.45 3.27 7.72 1.33*
51.07
' >SM|
Jl| ;|3|i '^j|
`Adjusted for 20% Stock Dividend in December. 1966 .
-* . .
To The Shareholders:
We are pleased to report to you that Crane Co.'s sales and earnings in 1966 reached new highs for recent years.
Net sales in 1966 amounted to $405.9 million, the highest in the history of the Company. This represents an increase of $35.8 million, or 9.7%, over 1965.
Net income was $11,251,000, or $4.45 a share, com pared with $7,991,000, or $3.08 a share, the previous year, an increase of 40.8%. Net income was the highest in ten years, and a new record for common share earnings.
Cash flow from operations (net income plus deprecia tion) amounted to $19.4 million, or $7.72 a share, com pared with $15.8 million, or $6.22 a share, in 1965.
Common shareholders' net income to average equity rose to 9.0% in 1966, the highest in history, from 6.4% the year before. Common shareholders' equity per share was $51.07 at 1966 year end, a new high, and an increase of $3.11 per share over 1965.
During 1966, the Company paid quarterly dividends of $.40 per common share. In November, 1966, the Board of Directors declared a 20% common stock divi dend on common shares outstanding December 20, which was paid on December 30, 1966. The Company's present intention is to continue the $.40 quarterly divi dend rate on the shares now outstanding.
The increase in sales reflects the high level of indus trial activity in the world-wide economy and the Company's increased emphasis on the manufacture and sale of indus trial products. Approximately two-thirds of the Company's sales were industrial products-valves, pumps, water treat ment systems and allied equipment. Net income rose at a higher rate than sales because of the high level of opera tions of our industrial products, and the discontinuance lof several marginal operations and product lines, here
land abroad. At the year-end the Company's backlog of [orders was 27% higher than the previous year-end.
North American operations produced 65.8% of con solidated earnings and represented 87.3% of consolif dated equity, substantially the same as in 1965.
Pension costs charged against operations in 1966 | were $2,176,000, compared with $640,000 in 1965. This |increase reflects a charge of $1,081,000 for pension costs : incurred under the Company's United States trusteed
.pension plans, the first contribution made since 1959. > During the year, the Company continued to broaden ;'ts industrial product base through the acquisition for lcash in May of all the common stock of Glenfield & Ken nedy Holdings Limited of Kilmarnock, Scotland, a major manufacturer of waterworks valves and water treatment mjipment, with plants in Scotland, England and South
; 'Ca- Glenfield & Kennedy also has 5V2% preference Stock outstanding of $2,800,000 and 5%% loan stock
e ln 1982 of $4,388,000.
In December, 1966, Crane acquired for cash all the
common shares of the Acheson Manufacturing Company
of Rankin, Pennsylvania, a manufacturer of fittings.
Through a tender offer, the Company acquired approx
imately 22% of Sawhill Tubular Products, Inc., of Sharon,
Pennsylvania, fabricators of a wide range of steel pipe
and tubing. Our search continues for the acquisition of
companies and/or product lines in fields where we have
experience and know-howand in fields that are compatible
with our own.
In 1966, the Company, and virtually every other man
ufacturer of plumbing fixtures, was indicted by a Federal
Grand Jury, charging certain violations of the Sherman
Antitrust Act. The Company has denied these charges.
The Government filed an accompanying civil complaint
at the same time. In addition, three separate actions have
been filed by other parties against the same group of
plumbing manufacturers, including Crane, claiming treble
damages on the same grounds. The Company intends to
defend vigorously all of these suits. We have been advised
by counsel that the ultimate effect of these actions should
not materially affect Crane's financial position or earnings.
On behalf of the Board of Directors, we wish to express
our gratitude to the many persons-customers, share
holders and employees-who made 1966 a significant
year for the Company.
Respectfully submitted,
March 17,1967
D. C. Fabiani, President
t.
T. M. Evans, Chairman
T. M. Evans and D. C. Fabiani discuss operations in the Company's New York Executive Office.
--
NET SALES PER SHARE't
200
59 04
129.7 0
108 18
r 14 .18___
96. 11 ^.88----- 1
80 01
'57, '58 '59 '60 '61 '62 '63 '64 '65 '66
CASH FLOW PER SHARE't
{net Income plus depreciation)
2^1 b.2
3 4^
4. Ji
3. 33
A.l
1.34 _______1_______ '57 '58 '59 '60 '61 '62 '63 '64 '65 '66
" : ...... . " ' 'Cvf-4,yi4K
NET INCOME PER SHARE't >
3.01
1.44
1. 50
1. '9
1.. ;9
0. 33 _______ ______
'57 '58 '59 '60 '61 '62 '63 '64 P5
SHAREHOLDERS' EQUITY PER SHARE't
40 30.76
37 11
9.. 30 60
37 83
39 38
40 08
42 40
51
47 96^i
44 08 ~
'57 '58 '59 '60 '61 '62 '63 '64 '65j In dollars per common share outstanding at end (
Ten-Year. Consolidated; Financial Summary
1957 1958 1959 1960 1961 1962 1963 1964 1965 1966
Net Sales
Income Before Income Taxes
$378,948,173 $17,218,612
336,196,279- - 3,897,185
310,172,639 13,585,161
285,618,712 7,216,250
319,556,202 9,121,253
333,766,863 6,926,092
337,365,571 10,703,634
357,823,354 10,028,987
370,084,039 13,836,113
405,906,737 20,284,865
Net Income
$ 8,678,272 2,167,345 6,517,746 4,824,463 5,675,770 3,194,032 5,447,378 5,529,829 7,991,351
11,251,085
Net Working Capital
$130,175,138 136,163,472 84,626,580 89,560,647 99,371,959 88,226,079 92,081,379 96,098,246 105,843,822 107,044,223
Common Shareholders'
Equity
Depreciation
$6,213,179 5,915,406 6,369,811 7,457,676 8,000,070 8,383,196 7,606,845 8,316,181 7,846,942 8,124,427
Preferred Shares
$11,983,182 11,406,185 id,941,523 10,459,300 10,009,300 9,109,300 8,441,300 8,069,300 6,318,600 4,908,600
Total
$175,064,998 174,250,476 135,003,440 135,064,791 130,649,983 123,623,143 121,351,442 121,604,518 119,774,345 126,772,526
Per Sharef!
$30.76 30.60 37.11?
37.83; 39.38 40.08 42.40 44.08 47.96,
51.07|
CRANE CO. and subsidiaries
tAdjusted for 100% Stock Distribution In October, 1965, and 20% Stock Dividend in Decembelj
jolidated-Statement of; Income i or Year* hu. ij f)= 11 mtx i i
* ....... :v --
sales ..................... ...........................
fling Costs and Expenses: '
-
of sales........................................
pting Profit ..................
fineome (Deductions):
'
lerest-net ........................................ |n on disposal of capital assets-net jjscellaneous ....................................
be Before Income Taxes lion for Income Taxes .
Scome..........................
1966"" $405,900,73/
1965 $370,084,039
381,8 . ' 2 51,64 5 t <9
~ 383,46b,/ fl
22,43 / m
307,332,642 ' 46,588,097
353,920,739
16,163,300
(2,554,031) . 290,360 '111,170
(2,153,101).
; '/\
(2,241,237) 48,440
(134,390) (2,327,187)
20,284,865 fin;VI,/80
$ 1 1.251,086
13,836,113 5,844,762
$ 7,991,351-
solidated Statement of Earned Surplus For Years Ended December 31
jce at Beginning of Year
come l
'
inds: ferred shares~$3.75 per share
imon Shares: Sash--$1.33 per share ($.96 in 1965).
Stock-Market value of 413,652 shares issued in December, 1966, as 20% stock dividend ...............................................................
Stock Distribution- ' ft value of 1,035,550 shares issued in October, 1965....................
|s of Cost Over Par Value of Reacquired Shares-Net: 14,100 preferred (17,507 in 1965) and 12,700 common (101,620
in 1965)
!n to Reserve for Foreign Contingencies
ice at End of Year
--1968 $ 67,744,345
11,251,085 0
19/, 765 x 3,319,091
13,443,690'
418,548
17,379,094 $ 61,616,336
1965 $ 92,861,518
7,991,351 100,852,869
290,522 2,418,045
25,888,750
3,511,207 ; 1,000,000 33,108,524 $ 67,744,345
Accounts receivable, less allowance for doubtful accounts-
^j^.-
/ $1,436,252 in 1966; $1,294,819 in 1965...................................... .
Inventories, at lower of cost or market (after deducting reserves of : $21,659,078 in 1966 and $20,817,526 in 1965 to state the prin-
cipal inventories in.J:he il. S. on a LIFO basis):
"
-
Finished goods
.................................................................
,
Work in process ..................................... 26,481,102
Raw materials and supplies .............................. ........ 12,874,251
.
57,559,113
- ..... 32,719,228
~72^07468T
Prepaid expenses-!./....................................:......................................
1
929,785
Total Current Assets ......................................................
155,269,712
Investments and Other'Assets at Cost Investment in foreign affiliate (equity in net assets$1,576,543 in. 1966--$1,768,208 in 1965).......... Investment in SawhiNTubular Products, Inc............. Investments and 'btheitssets .............................. .
Property, Plsagntjga^nrdgi-t Und ~ Buildings and improvements Machinery amr equipment
Less accumulatecr'depreciation
1,538,073 2,812,202 2,748,548 7,098,823
4,637,346 57,546,622 117,883,930 180,067,898 118,013,268 62,054,630 $224,423,165
m
CRANE CO, and subsidiaries
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rpai'value $ 100 fieda made i liiel
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f i'i-481 ,126
$224,421,165
s/^'s,4- -.i-'i-
'. ,11 '.Ilf If !(!,'
b? ,744,115 : 19,774,345 i: bM-J 5fJ45 SP.Oh.O'. 8"H.
i '>>' r" --s' . v'
i years ended- Decern il mgr----... ........... -....... ..-
SOURCE OF NETWORKING C,
fern*.
Net income___ -..
Depreciation
.'TT'TTv..................................
Cash flow from operations..................................................
Disposals of property, plant and equipment..........................
( \Preference stock of Glenfield & Kennedy Holdings Limited.
-^Long-term debt-net (see details below).................................
Other......................... .................. ...........................................
"" : USE OF NET WORKING CAPITAL...............
Acquisition of new business facilities............ ........."............ Addition to existing plant and equipment ......................... ... Investments and other assets............................... . Reacquisition of shares (less options exercised)....... ......... Cash dividends paid....... .............................. ......................... Increase in net working capital................................ ........ ....
rkihg Cajiil
Ifil?
>- *
1966
$ 11,251,085 8,124,427
19,375,512 3,534,549 2,800,000 311,707 598,397
$ 26,620,165
1
6,093,311 9,218,332 4,445,217 2,146,048 3,516,856 1,200,401 $ 26,620,165
Details of Long-Term Debt At December 31
U.S. bank loan payable $875,000 quarterly through May 1, 1971 and $1,750,000 quarterly through May,' 1, 1972 plus interest, currently at 6>/4% ......................................... ........................................................
Crane Canada Limited sinking fund debentures (secured by a general claim on property and assets); dated May 1, 1965, payable $407,000 annually through May 1, 1984 and $2,442,000 on May 1, 1985, plus interest at 5%% ........................ ........................... ............................
Crane Ltd. (England) term bank loan-payable February 28, 1969, inter est currently at 7%% ....;....................................................................
Glenfield & Kennedy Holdings Limited unsecured loan stock, 5%% due 1982 .............. ............................... .........................................................
Miscellaneous ... .c............ ........... .........................................................
1966 "
$ 19,250,000
v 9,361,000 5,040,000
' 4,387,670 265,887
$ 38,304,557
$?
CRANE CO. and subsidiaries
.
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|ju(opted in 19! - ^ ?-/
'-
jce outstanding .i, nuaryil^-19b6-. ~
jtis granted --
..... .. :.........?'Z<
||js cancelled ....,
.................. yi/'
ns exercised (4,800,/sfiares issuedafrorrt- treasury!,)
ffee outstanding Di cembcr 31 ,, 1966
..
*> I, !!.' " '0 3i3
per share ! 13 54- V' 9 0/
(720) ( 0 8??} ' '/so"*
-.
18.75-. 18.96 16.25--28.98 ) 3 54-' jo p/
U 19t h np-un tor `/Ji.'O h-m vx to be Haded ilif|t-r till. (.ilali.
Idopted in 1965* ` "
[ice outstanding January 1, X9n6
7 800 ` '
$24.58-$29.28
ns granted ...... /#?/ .3..............
9 IPO
38.75 4/29
ns cancelled ..... :i/..;!!.........
ns exercised ...
............ ^
t??0) (720) ' ;'''
:?9 28 .26.04- 29.28
ce outstanding hr < ember31* 1968
; 6 \><.Q
24 58- 47 29
~
..... *
....
" - - Ot the balance out tandirit- Jt December 31] 1966,' options for 8400 shares
-; - were exerc sable irid cptions as to! 93,480 shares' could r>e granted (compared
/ /A wdn 97,200 all -c. : rrber 31. 1965)1-3
`
~~
-
^ . - -- -i
1 . . - . * XX ~~
.
- ' >*+Z X ~ *
for 2ii% Stock Dividend in December) 1966
tort of Certified Public Accountants,^
r .Jim,,
.......
Shareholders of Crane='_Cp.: ing procedures'1 a 3 w, corr.iderrl
havr e< imined ine/accomJg- i.'j[i` olid; if dia
ecossary m;the un iin t^icos.AMf*fi&Z-mJj*';-; ^mo^^n,\ttif. staterneni' .
b' fc O-iof Go-v,- ndJsfl : December' 31j/JfJT 3ted consolidate
toned above pro' urn fairl.y..tlf 1 ,*k .*
/"Co. and'^ub-idiatiel^ i . _'v.'
.
('Of inc orne, earm rt surplus - Deqemucr Jl,"71966, rhc/onsoli |nge'. in net worktn,'c^?Spi^1^p1f ^ rla'ted; re/ultsfefrth'c u operatici
-
and the changes in rh< i. i ./m1 yt r then ended Our e'^arri'
wj; made in n t on.-ann* mgcapitalfirth/* yt< i-nr r>endr'd/J
ISii' r illy accnpti d audit in conformity with geni r. Ily ar
snn.irds, and no or-'mclv ceptcd _crr at fin; . 1 - ir>ir' l[
uch tests of th< xcount- Vpjieti bn basis .un i:fuit with;
Core s and such otK r audit- that of tnc precedi ir yo ir.
' .....
^
|| N.Y., February 196/ ' '
KsmiiSc
WSmmm
mi
Stabilization
id Control
|f Moving
Objects
through its jro-Aire Divi
sion in Burbank,Calilia, Crane has become ftajor supplier to the nation's
srospace program and to the manucturers of commercial and military [jrcraft. Its products-anti-skid brakpg systems, hydraulic components, neumatic subsystems and booster nd transfer pumps-stabilize and ntro! moving objects in the aeroace and aircraft industries. This division had satisfactory re mits in 1966, reporting increases in sth sales and earnings over the evious year. These results capitaIi on a decade of product develop ed, applications engineering and vestment in future growth. Its out
; for the foreseeable future is most omising.
Growing Demand
Virtually every jet aircraft produced -military or commercial-utilizes Hydro-Aire's aircraft brake con trol system which helps make landings safer and smoother. Largely responsible for Hydro-Aire's favorable re sults in 1966 has been the growing demand for Crane products in the commercial air
transport market. It is expected that sales volume from this market will continue at a high level into the late 1970's. In addition, an increased volume is anticipated from military aircraft production as well as the growing cilivilian air freight industry.
In the aerospace and ballistic mis siles programs, long-range commit ments to programs which require Hydro-Aire equipment offer a bright future to this division. Included among these products are HydroAire's new line of liquid coolant pumps for fuel cells and environ mental cooling as well as electrohydraulic power packages and vari able drive hydraulic pumps.
Future Prospects
The trend in both of these markets, i.e. aircraft and aerospace, is upward
as far as forecasts can reasonably project. A substantial portion of this division's backlog is in commercial rather than military applications.
In addition, the growth of com mercial air freight will increase this percentage over the next five years as further efforts are made to pene trate this market.
Investment in new equipment in 1966 enabled this division to manu facture many components required for its products that it formerly pur chased. The program to improve "in house" capabilities will continue in 1967, along with the continuing product research and development program designed to improve HydroAire's position as an aircraft and aerospace components manufacturer.
3IB11*1
A Hytrol anti skid servo valve, used in brake control systems tor aircraft, is being tested during manufacture.
|#tate printed circuit boards used in the control box of the Hytrol Brake Control System are assembled and tested.
s
K
Fluid
Control
The design and manufacture of systems and devices, pumps, valves and fittings with meters and allied equipment for controlling the flow of fluids, constitute the major portion of Crane's business. In 1966, sales of these systems and products accounted for more than 50 per cent of total sales. With the increasing demand for Crane equipment from many industries such as chemical, petroleum and power generation, sales of these products will continue to increase.
In view of the projected growth of its principal customers, the Company will continue to emphasize this seg ment of its business through expan sion and improvement of facilities and equipment and through expend ing considerable amounts on research and development. The chemical industry, for instance, is forecasting
a substantial increase in capital expenditures in 1967. The need to expand is even more apparent in the petroleum and petrochemical indus tries, where more equipment is re quired to explore offshore areas, to drill deeper for new reserves and to take advantage of new processing techniques. In both of these indus tries, international markets are grow ing at a faster rate than domestic markets.
Residential water meters, a new line for Crane in the United States, offer the company a tremendous potential.
Crane's manufacturing, sales and distribution facilities for fluid con trol systems and products are inter national, enabling it to manufacture, sell, install and service on a world wide basis.
Pump Lines Broadened
Crane is a leading supplier of water system pumps, sewage pumps and turbine and centrifugal pumps for chemical processing, petrochemical and varied industrial applications. In 1966, it introduced a new line of pumps conforming to standards set up by the chemical industry and
known as AVS (American Voluntary Standards) pumps. The Company can' now offer a far broader line to th*' chemical processing industry.
To meet the increased demand for pumps, and to provide increased'' capacity for the manufacture of residential water meters, the facility at Rogers, Arkansas, was expanded fj
at a cost of over $1 million. Crane's-#'-5 Chempump products-'`canned' ^
pumps" or "zero leakage pumps"handle corrosive, toxic or other prob lem fluids throughout industry. In 1966, a new line of intensifier acces sories was developed to enable high ^`s speed pumps to do the job which has only been possible in the past with lower speed pumps. This new con cept broadens Crane's pump market in the fields of refrigeration, chlorine, and other low flash point fluids. ']$
Crane is forecasting an increase; in sales in this product line in 1967,j The chemical industry continues expand, Government space and. nuclear programs will continue at vJfR high level and several new pump^ha lines, including a metering pump^ will be introduced in 1967.
Blvt
JSB
* -*>
aft l*'
fS-
tS*
New Ch
used in pf< and water t predet
amounts ofjjjjL
Aerial view shows theexti
. m
Facilities Expanded
ne is the largest valve manufac-r in the world. Its products range
i standard to engineered, special ce valves for many industries, uding the defense, power genera , chemical, petroleum and water-
fields, and in diameters from Inch to 170-inches. Even larger
aeters can be made to special uirements. One significant development in
was the completion of a $2 lion expansion and modernization yam in the steel foundry at the Ian Orchard, Massachusetts, valve
t The results of this program are ady apparent in terms of higher ut and increased efficiency in production of stainless steel and
cast steel valves. As industrial assing utilizes higher tempera-
and pressures or more corrofluids, the demand for these
Ives will continue to increase,
expansion program has been ed in Chicago for new machinfor the manufacture of brass
This equipment will enable ~ to reduce production time and
New Product Developments
Under the direction of the Research and Development Center in Chicago, several new developments took place in 1966. New alloy valves provide Crane with a more complete line of corrosion-resistant valves. Additions were made to broaden the ball, but terfly and globe valve lines. Globe and gate valves for cryogenic and compressible gas service were devel oped. Engineering work was com pleted on larger water meter sizes, thus broadening the line. Product lines for the chemical processing industries were strengthened, includ ing the new AVS chemical pump, a new canned motor pump, new meter ing pumps, a new hot oil pump, and the development of regenerative tur bine pumps.
In 1967, Crane will continue to stress the study of redesign and improvement in the bronze valve line, including production equipment. Its line of stainless steel valves will be expanded to further widen the mar ket for this product in the chemical, petroleum and process industries.
Work will continue on redesigning
cast iron gate valves aiming at lighter weight, more compactness and lower cost. Considerable effort will be devoted to developing meters for the industrial market. Research and development work will continue to extend the Chempump canned motor pump to larger sizes.
On the metering pump, where pre cision and cost are factors, a product development program is underway on lower-priced models which will give Crane a greater penetration in the chemical, petroleum and water treat ment markets.
Outside of the United States, Crane's business in fluid control sys tems and products has grown rapidly and is expected to accelerate in the future.
Canadian Business Increased
Shipments of valves and fittings in Canada, in 1966, were substantially ahead of a year ago. Sales were made to several major pulp and paper projects. Of these, shipments to the world's largest integrated pulp mill-- at Lac Quevillon in Northern Quebec
An expanding line of alloy steel valves offers processing industry users the advantages
of compact size and high strength to meet increasing pressure and/or temperature
service.
This aluminum sample case makes it easy for salesmen to demonstrate features of new bronze globe valves developed for cryogenic service.
Fluid Control/continued
--were the most significant. The fur ther expansion of the Athabaska Tar Sand Development in Northern Alberta, where oil is being extracted from tar sands, resulted in sizeable sales of Crane products.
In Canada, because of the increase in business, Crane Canada Limited continues to expand and modernize its facilities. Completion early in 1966 of the $1 million moderniza tion of valve production in Montreal has provided increased capacity and reduced costs. The Marieville plant tripled its capacity, providing manu facturing facilities for a full range of pumps and allied equipment to meet the growing commercial and indus trial demand in Canada.
British Add to Facilities
Crane Ltd. (England) had a satisfac tory year in 1966. Sales of this sub sidiary will benefit from the increased drilling activities in the
North Sea. Drilling and exploration companies have been purchasing pumps, valves and other equipment from Crane. As oil and gas produc tion is brought in, petrochemical companies will also add to their facilities, thus providing a broader market for Crane products.
To meet growing demand, Crane Ltd. continued to expand and upgrade its facilities. The Aycliffe plant was expanded, providing additional man ufacturing space for the production of boilers. A new branch warehouse was opened in London. And, the Bur gess Hill, Sussex, research and devel opment center was expanded. This facility is doing application engineer ing for Crane products sold in the United Kingdom.
Glenfield & Kennedy Broadens Markets
The acquisition of Glenfield & Ken nedy Holdings Limited provided Crane with new products, new mar kets and additional manufacturing, research and development facilities.
Long known as an innovator in flow control systems and equipment,
This Chapman two-port slide valve, weighing approximately 28,000 ibs., will control regenerator gases at 1200F in a California oil refinery.
. Because urethane foam hardens
immediately on exposure to air, conventional pumps could not
be used in this installation. A Crane Chempump was chosen,
has operated continuously for over 35,000 hours without
maintenance.
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ing i.c'.K It is planr.ecUo Dudd * yjvc plant in the vicinity of
ie S.A (-arch is a major sup\q. the French Atomic,, Energy , lttees hie Frer-rn nationalized jjjjlustry, fc lector. ite^de^Frarce
trie petrole u m ;Jnd us tryzJrV I j`t supplied all tfie valves foj^ j|, Laurent des EauxanuJear Station. It also siipplied all the!!; Tfpn.the HavKv'powaBstatiot^ :
L fit;:iS' iw i li i u1 ie do i i".,|ite fipilie lli 0' ! i nil-'- r< litu-rv. "
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pared) petrbleum4jndn uy -n --i r c a.-~t steefi'gate*valve,*irittod-jcedf fa' -
m thbS^haSf b'eea well_ received' n this; market lit- Is becoming one of
u.-me-HSAs ir-aior product lints: At the. '.cine time, sales of c redialing [.hrips have ii tn rapicly in me hecdiriij field, and rr jiifc-mt rd h icen made to nave ( r-meF IT A pump;,
in; orporated irh'o oi cyr -A cquinment made by other (cuu/'-.v/' uu v
i...me S ioA pt.-uis,tta&be>ii'i ton ir jf,1' on m 196/ of a new menur.iiduring'plant near Madrid. When in's plant: is- in production, i raneFl 'A will introoucs- n> w Crane vaive ji signs- into tfie Spmii :n .ri rrke-t 1 In come cases these will complement, arid in others w It re plat e the present ( i mo i ICA models. I.ie ernnh mis in in in 'V plant will he on steel valves,
no i cordinsly, the present steel ini.i do/ facility's in Bilbao will be iin-i*t -ii'zed ro better .npply the new ni m
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Southern t Asia and the" Southwest
i-dctfit It uippMe-.d rnnr.y major pmj-
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ranging from petto-
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Of note wa.- itie ..ale of valve equip
ment ihu t-r.hcij I>i Uf ; New, Ninth Wt- ,r (' i|-u \/ I i l ii|f-i uu( t'nn
Station un the* Inri-an Oci.n -nd the Philips [( S ( t ! -mir il-, u jr'uon
black and synthetic rubber project located in Botany Bay, Sydney.
jam- hu tmli.a'c ri-Tcrrer hump facilities were expanded and a new warchou-f oper tmn wr : fa, t-:l m Mtlbuilrnt to improve ahc s.-ddi:-
tribution. To broaden penetration- of the zrowm, An .tr'alinn market ' irfii lar warehouse operations will be established mother Australian states.
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. ... the paint shop (lit the center) and
-r ., assembly operations.
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When operating,at capacity, this
transfer machining and assembly
, line at the Kilmarnock (Scotland) . plant can bVod'uce a gate valve
rvc ry h-iO n-inut-
Water Treatment
The treatment of water is a growing international problem. The water shortage is becoming acute, not only in the United States, but all over the world. Water pollution control is a vital national concern, and both Gov ernment and industry have instituted large scale programs to make better use of water resources. And, as the population increases, sewage and industrial waste treatment becomes more critical, too.
Crane has long been a leader in engineering and manufacturing fil tration equipment and specialized water conditioning systems such as clarification equipment, deaerators, ion exchangers and demineralizers.
Through its Cocjirane operation and Glenfield & Kennedy, Crane will expand into these areas both at home and abroad.
Cochrane Treatment Systems
Sales of Cochrane's "Filterex" sys tems in 1966 were at a high level. These systems enable industrial and municipal users to process contami nated liquids for re-use. In water shortage areas or where pollution is a problem, this equipment has proven itself to photographic film and pulp and paper companies such as Eastman Kodak Co. in Rochester, New York, the St. Regis Paper Co. in Monticello, Mississippi, the Fibreboard Paper Co. of Antioch, Califor nia, and the Thilmuny Pulp & Paper Co. of Kaukauna, Wisconsin.
The potential for the sale of these systems is excellent.The steel, paper, beverage, chemical and oil industries
are all large water users, in addition^*,
to requiring equipment to transport^
and purify water, they are now takingIf'
steps to avoid pollution of their
water supplies.
' '!
The demand for warm process sof-i
teners, such as lime and soda plants,!
continued at a high level and larg?
chemical, paper and steel producers;
are among the companies that are! ,
reducing both their boiler problemigi
and water contaminants with Coch^'i
rane systems. Numerous orders for.
water demineralizing equipment, the?
field which Cochrane has pioneered,;
were received from the public utility;
industry including the Public Service!. e.
Co. of New Hampshire, the Public -J
Glenfield & Kennedy Hydraulics Laboratory at Kilmarnock, showing the test floor, de&Ign, and drawing office (left) and the model gallery in the background.
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The St. Laurent des Eaux project, France's first nuclear power station, installed Cochrane equipment. All valves for this plant were supplied by Crane S.A. (France).
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Phototheque E.D.F.--Mr. Brigaud
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mce Electric & Gas Co. of New sey and the Pennsylvania Power Light Co. During 1966, Crane received a sarch and development contract
i the Office of Saline Water, U.S. ^Department of Interior. Under the
spices of the OSW, Crane is inves ting methods for the pretreatent of brackish water to improve
economics of desalination by ctro-dialysis process procedures.
'Nuclear Power Markets
ane has placed considerable emasis on the growing atomic-nuclear fpnarket as public utility companies id others install nuclear power
Two Microstraining units were installed at the Jerome Park Reservoir, Bronx, New York.
They remove micro-organisms before drinking water is supplied to New York City
from this service reservoir.
plants at an increasing rate. Coch rane equipment, used to assist in heat exchange and radiation control problems, is now being used in over fifty such installations. Some of the more interesting installations include the nuclear ship S.S. Savannah; the Indian Point Station of the Consoli dated Edison Co. of New York; the Camen Project in Italy; the large Hanford nuclear facility, owned by the Atomic Energy Commission and operated by the General Electric Co.; the largest boiling water type nuclear plant in France, the Electricity de France St. Laurent des Eaux Station; and the Tarapur Atomic Power Plant in India.
Microstraining Equipment
Glenfield & Kennedy provides an in ternational network of products and services to a variety of industries utilizing flow control and water treat ment equipment. Glenfield & Ken
nedy's important line in the water (potable and process) and sewage fields is the microstrainer. This line of rotary drum filters provides con tinuous automatic mechanical re moval of microscopic and other suspended matter in water and the tertiary treatment of sewage.
Crane manufactures water treat ment equipment and systems in the United States, Canada and Scotland.
An expansion program at Crane's Cochrane plant in King of Prussia, Pennsylvania, is presently underway to meet the increased demands for its products. When completed, this will increase manufacturing space, and provide additional machine tool capabilities and broader test fa cilities.
This 40-ton Cochrane Demineralizer is being installed at the Kodak Park Works, Rochester, New York, along with a
condensate filtering system. Working
together, they remove iron, copper & hardness
from boiler water.
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Comfort Conditioning and Sanitary Control
Crane has long been a leader in sup plying the building and construction industries with quality plumbing, heating and air conditioning prod ucts and systems. It has more re cently been increasingly active in the home improvement and renovation markets, supplementing normal sales to the new housing market, which has been at a low level.
Crane's position in this important segment of its overall business remains strong. Approximately onethird of the Company's total sales are generated by plumbing, heating and air conditioning products. As in the past, Crane's leadership stems from its many innovations and high quality products.
Crane's line includes lavatories, bathtubs, water closets, kitchen sinks, laundry tubs, water fountains, plumbing brass and bathroom acces sories, residential and light commer cial boilers, baseboard heaters, warm air furnaces and air conditioners, and Crane Chef combination refrigeratorrange-sink units.
New Products Well Received
At the recent show of the National Association of Home Builders held in Chicago, Crane previewed a variety of new products. Its sculptured bath tub, a harbinger of new design in bathroom fixtures, highlighted the display. With a wide sculptured back giving plenty of shoulder and hip room, the new tub incorporates such other features as an integral grab bar, slip-resistant bottom and a flat rim for safe and easy entry and exit. Crane was the first in the industry to incorporate ideas such as these rec ommended in a study on the bath room prepared by Cornell University.
Other new fittings and fixtures which were well received by the trade included the "Neu-Criterion" water closet, designed with modern lowsilhouette line and incorporating an exclusive longer flushing valve; a water closet designed for easy instal lation in slab construction houses and high-rise buildings with concrete
New bathtub design incorporates both comfort and safety features not found in others.
A general view of the assembly area In Crane Ltd.'s Derby (England) plant showr' work on gas burners. Compact new gas boiler and new warm J furnace (rear) were among the models introduced early in 1967.
floors; the new "Hymont" waterclfl for geriatric and nursing homes(
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ecal features to aid the aged and -fjned; a new shower valve that jninates sudden bursts of hot or Id water by mechanical rather than rrnostatic means; a budget-priced ower head with a non-corrosive fay ring for long non-clog use; two
self-rimming, easily installed, celain enameled cast iron coun op lavatories-the "Charlotte" and "April"; and, a new line of popurly priced plumbing brass designed greater ease of operation. Several new products will come o the market in 1967. Manufacre has already begun on the new Iptured bathtub. A new line of gasI warm airfurnaces, incorporating ny innovations, will be introduced, ng with new, compact cast-iron gas ilers. Significant improvements in rformance, serviceability, appear*-e and manufacturing costs will ~ult. The addition of a new high pacity baseboard heating unit gives Company a full line of baseboard ters, enabl ing it to cover the entire rket. Design of a completely new e of residential air conditioning uipment was completed in 1966 cl introduced early this year, thus engthening Crane's competitive ition.
rket Position Strong
Company, in 1966, placed greater ss on home improvement and renion in the light of a lower rate of residential housing starts. This rket is receiving increased emphafrom Crane's marketing and disMtion organization, and the Comy expects to improve its position
Commercial and institutional con
struction remained at a relatively high level. Crane was a principal sup plier of plumbing, heating and air conditioning equipment for many major projects in commercial, hospi tal and institutional construction. Its position in this area is good, and will be strengthened by new products just introduced.
Sales and distribution facilities for plumbing, heating and air condi tioning products are maintained in the United States, Canada, Great Britain, France, Holland, Spain, Aus tralia and Germany.
In Canada, Crane fixtures were selected for the $10 million expan sion of Sir George Williams Univer sity in Montreal. And 56 of the major pavilions at the Universal and Inter national Exhibition of 1967 (Expo '67) are equipped with the Com
pany's plumbing fixtures and other products.
In Bermuda, Crane plumbing fix tures, supplied by Crane Canada, were used throughout the Princess Hotel, one of Bermuda's most luxurious re sort hotels. In St. Louis, Crane hos pital and residential fixtures were specified for Queeny Tower, newest addition to the Barnes Hospital com plex. The largest urban renewal proj ect in the state of Wisconsin, Juneau Village in Milwaukee, used almost 3,000 of Crane's products. In Dallas, Crane fixtures were used in one of the newest and most elegant health and beauty spas-the Neiman-Marcus Greenhouse. And, the new 25-story Connecticut Mutual Insurance Com pany building in Chicago will be heated and air conditioned with Crane equipment.
CRANE CO. FACILITIES
UNITED STATES OPERATING GROUPS
Crane Group -------------------------------------Chicago, Illinois W. D. Graham, Jr., Executive Vice President
Crane Supply Company --------Chicago, Illinois E. L. Hannon, Jr., Vice President
Hydro-Aire Division --------------Burbank, California D. A. Lichty, Vice President
Acheson Manufacturing Co. -- Rankin, Pennsylvania G. R. Acheson, Jr., President
FOREIGN SUBSIDIARIES
Crane Australia Pty. Limited -- St. Marys, N.S.W., Australia P. J. Farrell, Managing Director
Crane Canada Limited ----------Montreal, Canada R. S. Reade, President
Crane Ltd. --------------------------London, England David Burns, Managing Director
Crane S.A. ---------------------------Paris, France R. D. Halpin, General Manager
Crane G.m.b.H. --------------------Dusseldorf, Germany Klaus Alms, Manager
Crane-Deming de Mexico S.A. --
Monterrey, Mexico
H. F. McNiff, Manager
.
Crane-FISA, S.A. -------------------Bilbao, Spain L. R. Kowalski, General Manager
AFFILIATED COMPANY
Crane Nederland N.V. ---------Deventer, Netherlands G. DeHorn, Managing Director
CRANE CO.,
300 Park Avenue, New York, N.Y. 10022
VALVES PUMPS FITTINGS METERS WATER TREATMENT PLUMBING HEATING AIR CONDITIONING
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