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If ^ CRANE CO. ANNUAL REPORT or klkUn *PR 2 1968 *ms lliiltAlty 1967 sting coolant pumps a Hydro-Aire Clean >om. Steel valves at a nickel refinery in Wales (Photo: INTERNATIONAL NICKEL 1967/2} Chempump installed in a West Coast refinery. Crane valve and Teledyne Microstrainer being operator on high-pressure positioned in a Chicago gas line. sewage treatment plant. CRANE CO. ANNUAL REPORT 1967 CONTENTS Financial Highlights .............................................. 2 Letter to Shareholders ...................................... 3-4 Consolidated Statement of Income..................... 5 Consolidated Statement of Earned Surplus........5 Consolidated Balance Sheet.............................6-7 Consolidated Statement of Changes in Networking Capital.......................................... 8 Details of Long-Term Debt...................................8 Status of Stock Option Plans...............................9 Report of Certified Public Accountants................9 Ten-Year Consolidated Financial Summary ... .10 Review of World-wide Operations in 1967 .. .11-19 World-wide Facilities .......................................... 20 Officers and Directors ............. Inside Back Cover The photographs inset on the front cover highlight Crane Co.'s operations in the fields of fluid handling systems with (1) fluid control and (2) water treatment and purification equipment, (3) comfort conditioning and sanitary control, and (4) the stabili zation and control of moving objects. A detailed report of these activities will be found on pages 11 to 19. Financial Highlights Sales ..................................................................... Net Income........................................ Cash Dividends................................ Net Working Capital......................................................................................................... Total Assets....................................................................................................... Common Shareholders' Equity............................................................. Common Shares Outstanding at Year End..................................................................... 1967 $403,361,000 10,228,000 4,160,000 118,839,000 246,672,000 133,831,000 2,482,166 Ratios at Year End: v Net Income to Sales............................................................................................................... Common Shareholders' NetIncome to Average Equity....................................................... Current Ratio...................................................................................... 2.5% 7.7% Per Common Share: Net Income..................................................................................................................... Depreciation ................................................................................................................. Cash Flow from Operations............... Cash Dividends......................... ................................ ...................... '.......................... Common Shareholders' Equity.............................................................................................. $ 4.05 3.48 7.53 1.60 53.92 4.0/1 To The Shareholders: 1967 Performance Crane Co.'s sales and earnings for 1967 were the sec ond highest for the Company in the past ten years. Net sales totaled $403,361,000, compared with $405, 907,000 for 1966. Net income was $10,228,000, or $4.05 per common share, compared with $11,251,000, or $4.45 per share. Cash flow from operations (net income plus depre ciation) amounted to $18.9 million, or $7.53 per common share, compared with $19.4 million, or $7.72 per share in 1966. Net working capital at 1967 year-end was $118,839,000, for a current ratio of 4.0/1, compared with $107,044,000 and a current ratio of 3.2/1 at the end of the prior year. Common shareholders' net income to average equity was 7.7 percent, compared with 8.9 percent last year ; which was the highest in the Company's history. Com mon shareholders' equity per share was $53.92 at the ( end of 1967, a new high, compared with $51.67 per share at the end of 1966. The Company continued to pay quarterly dividends ; of $.40 per common share. | The year-end backlog of orders was at approxi mately the same high level as a year earlier. | Pension costs charged against operations in 1967 | were $2,303,000, compared with $2,176,000 in 1966. Operations in North America produced 67.7 percent of consolidated earnings and represented 83.4 percent of l consolidated equity--substantially the same as in 1966. t* The decline in sales and earnings is attributable to a lower level of activity in the building and construction industry in North America during the first nine months of 1967. Earnings were also affected by start-up costs I of new plants presently under construction in Washing ton,'Iowa; Brantford, Ontario; Armentieres, France; Herne, Germany; and Madrid, Spain. Another adverse factor was the cost of strikes in the first half of the year. Through the Company's policy of borrowing in for eign currencies to finance its multi-national operations, the recent devaluation of foreign currencies had only a nominal effect upon Crane's earnings and financial Financing Future Growth Crane secured additional funds in 1967 to finance its future growth. In June, it arranged a $10 million indus trial development revenue bond issue to finance a new iron valve plant in Washington, Iowa, with a maximum annual rental obligation of $772,000 over a 25-year peri od. In August, the Company sold $40 million of 25-year sinking fund debentures to pay off the existing bank loan and to provide funds for additional working capital and expansion. The Company arranged, through de layed delivery contracts, to defer receipt of $8,250,000 of the proceeds until January 4, 1968. In August, Crane, Ltd. (England) arranged for a new 5-year term loan of $4,320,000, of which $2,464,000 is currently outstanding. During the last quarter of the year, Crane Co. guaranteed two 5-year term loans total ing 90 million pesetas($1,286,000)for use by its Spanish subsidiary, of which $298,000 had been borrowed at year-end. Developing Future Capabilities Crane continued, through internal development and through acquisitions, to build and broaden its industrial product capabilities-more than two-thirds of its sales volume~and to strengthen its position in the building and construction industry. Considerable attention is being given to growth areas-particularly the markets for water treatment and conditioning; aircraft and aerospace systems; and urban redevelopment. Through the broad background of knowledge and experience available in our wellestablished Cochrane and Glenfield & Kennedy opera tions, Crane enjoys a position of leadership in water treatment and conditioning. In addition, Crane is work ing under Government research contracts in the fields of desalination and pollution control. Hydro-Aire Divi sion provides an excellent opportunity for the Company to expand its activities in profitable aircraft and aero space applications as well as braking systems for all types of vehicles. Crane's production of a low-cost fiberglass-reinforced modular bathroom unit is a further step toward an increased share of the markets for lowcost housing and urban redevelopment. iso lidated |ales ................... sting Costs and E> st of sales ...... |ing, general and < To The Shareholders: Continued Through the Research & Development Center in Chi cago, increased emphasis is being placed on the prod ucts of tomorrow. In 1967, Crane introduced over 100 new or improved products to world-wide markets. These are expected to make substantial contributions to sales and profits beginning in 1968. Crane's world-wide R & D efforts hold great promise for the Company's future. The Company invested $11,656,000 in additional fa cilities in 1967, the highest level of new facilities spend ing in some years. In 1968 the Company expects to spend more for new facility construction. During the year, Crane acquired two small com panies with excellent product bases. In July, an im portant addition to the valve product line was made with the purchase of Flomatics, Inc., a California de signer and manufacturer of control valves and opera tors. In September, the Company acquired Reff Plastics Limited, Canadian designer and manufacturer of fiber glass-reinforced modular bathroom uniis, which will en able Crane to increase its penetration of the low-cost housing market. To further broaden our share of the industrial market, Crane undertook, during 1967, to acquire a major inter est in the Westinghouse Air Brake Company. Crane presently owns 500,000 Westinghouse Air Brake Com pany shares, approximately 11 percent of the outstand ing common stock. The Company believes that a con solidation of the strengths of these two organizations would be in the best interest of both CraneandWestinghouse Air Brake Company stockholders, as well as the public in general. Since Crane has not been able to secure the cooperation of the Westinghouse Air Brake Company Directors to merge, it is presently intended to hold the stock as an investment. In the meantime, Crane will take whatever action is necessary to protect its investment. Other Corporate Matters As reported last year, the Company was indicted in 1966 by a Federal Grand Jury charging certain viola tions of the Sherman Anti-Trust Act. The Company has pleaded nolo contendere to one of these charges and, at this time, no penalty has been imposed by the court. |ting Profit............ (Income (Deductioi frest--net.............. In the remaining charge to which the Company h ion disposal of ca| pleaded not guilty a trial date has not yet been si lellaneous ......... Various private civil suits have also been filed. T Company intends to vigorously defend ail such pendii suits. We are advised by counsel that the ultimate effej of these actions should not materially affect Cram Before Income Ts financial position or earnings. jn fr Income Taxc On behalf of the Board of Directors, we wish to e tome .. press our gratitude to Crane's 21,500 employees and our growing list of customers and shareholders, all whom helped to make 1967 another significant year Crane Co. Respectfully submitted, D. C. Fabiani, President olidated Ste February 29,1968 T. M. Evans, Chairman lat Beginning of Yea Bne ed shares-$3.75 | Shares: I -$1.60 per share ^Market value o l20v/co stock dividen Cost Over Par Va preferred (14,100 314 issued under s 966)................. D. C. Fabiani and T. M. Evans in She Cornl New York Executive Office. jr^ ^ y |P- and subsidiaries Consolidated Statement of Income For Years Ended December 31 Net Sates .................................................. Operating Costs and Expenses: Cost of sales ...................................... Selling, general and administrative ... perating Profit........................................ Other Income (Deductions): Interest--net........................................ Gain on disposal of capital assets-net Miscellaneous ..................................... come Before Income Taxes................. rovision for Income Taxes..................... [Net Income................................................ 1967 $403,360,619 329,859,812 ' 54,335,527 384,195,339 19,165,280 (2,314,957) 734,493 ( 257,679) (1,838,143) 17,327,137 7,098,887 $10,228,250 1966 $405,906,737 331,825,432 51,643,339 383,468,771 22,437,966 (2,554,631) 290,360 111,170 (2,153,101) 20,284,865 9,033,780 $11,251,085 Eonsolidated Statement of Earned Surplus For Years Ended December 31 lance at Beginning of Year t Income ........................... idends: referred shares-$3.75 per share........ Common Shares: Cash--$1.60 per share ($1.33 in 1966) Stock-Market value of 413,652 shares issued in December 1966, as 20% stock dividend................................ ................................... ess of Cost Over Par Value of Reacquired Shares--Net: 3,660 preferred (14,100 in 1966) and 20,600 common reacquired, less . 20,614 issued under stock options (30,700 and 18,000, respectively in 1966)............................................................................................ Jance at End of Year *Ne CO. and subsidiaries 1967 $ 63,098,488 10,228,250 73,326,738 - 178,564 3,981,809 ,_ 1966 $ 69,226,497 , 11,251,085 80,477,582 197,765 3,319,091 13,443,690 492,093 4,652,466 $ 68,674,272 418,548 17,379,094 $ 63,098,488 Consolidated Balance Sheet At December 31 ASSETS Current Assets: Cash ..------------- --------.................................................................... Marketable securities, at cost which approximates market,and de layed delivery contracts in 1967 .......................................................... Accounts receivable, less allowances for doubtful accounts$1,248,641 in 1967; $1,436,252 in 1966 ................................................ Inventories, at lower of cost or market (after deducting reserves of $22,314,609 in 1967 and $21,659,078 in 1966 to state the principal inventories in the U.S. on a LIFO basis): . Finished goods........... ............................................................... Work in process............................ .......................... .............. ;.. Raw materials and supplies .'... ............................................... Prepaid expenses ...... ...;.................... .............................. .......... Total Current Assets......................................................... Investments and Other Assets at Cost: Investment in Westinghouse Air Brake Company Other investments ................... Other assets ......................................................... Property, Plant and Equipment at Cost: Land ......................... ......... .............. Buildings and improvements............ Machinery and equipment............... Less accumulated depreciation -- 1967 $ 18,435,599 9,954,383 57,595,402 30,803,948 27,774,423 12,971,735 71,550,106 1,504,729 159,040,219 16,607,544 2,828,551 2,383,480 21,819,575 4,814,288 60,522,962 126,462,458 191,799,708 125,987,012 65,812,696 $246,672,490 nnANF no. and subsidiaries [LIABILITIES AND SHAREHOLDERS' EQUITY [current Liabilities: Current maturities of long-term debt ............ Loans payable by foreign subsidiaries ..... Accounts payable........ Accrued payrolls, taxes and other liabilities | U.S. and foreign taxes on income................ Total Current Liabilities.......... Long-Term Debt ............. ........................................ ......... . --. -- Minority Interest in Foreign Subsidiaries........'................................... Deferred Credit from Acquisitions .......................................................... Shareholders' Equity: Preference Stock of Glenfield & Kennedy Holdings Limited, 5%% ... Cumulative preferred shares, 33/*% par value $100 (redeemable at the option of the Company and subject to sinking fund requirements): Authorized 84,656 shares in 1967 (88,206 in 1966); outstanding45,426 shares in 1967 and 49,086 shares in 1966 (after deducting 39,230 shares in treasury in 1967 and 39,120 shares in 1966).......... I Serial preferred shares, par value $5: Authorized-600,000 shares in 1967 and 1966 ..................... Common Shareholders' Equity: I Common shares, par value $25: Authorized-5,000,000 shares; out standing-2,482,166 shares in 1967 and 2,482,152 shares in 1966 1? (after deducting 147,330 shares in treasury in 1967 and 138,280 shares in 1966)..................... .................................... ............................ Capital surplus from 20% stock dividend.......................................... Earned surp!us-$11,422,115 in 1967 ($28,211,347 in 1966) is not re stricted as to payment of common dividends............................... Total Common Shareholders' Equity ................................ Total Shareholders' Equity......................... ....................... 1967 360,811 3,140,450 16,323,852 16,099,851 4,276,397 40,201,361 62,035,875 3,170,152 491,690 2,400,000 4,542,600 62,054,150 3,102,390 68,674,272 133,830,812 140,773,412 $246,672,490 $ 3,798,727 5,083,892 15,881,436 16,166,392 7,295,042 48,225,489 38,304,557 1,132,959 796,882 2,800,000 4,908,600 62,053,800 3,102,390 63,098,488 128,254,678 135,963,278 $224,423,165 I Consolidated Statement of Changes in Net Working Capital For Years Ended December 31 SOURCE OF NET WORKING CAPITAL 1967 Net income....................... ........................................................................ Depreciation ....................................................................................................... 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................................................................................................ $ 10,228,250 8,632,062 18,860,312 1,277,731 23,731,318 $ 45,201,362 1,332,001 USE OF NET WORKING CAPITAL Acquisition of new business facilities.................................................... Additions to existing plant and equipment.................................. ......... Investments and other assets................................................................. Reacquisition of shares (less options exercised).................................. Cash dividends paid................................................................................ Increase in networking capital................. $ 131,278 13,536,581 14,720,752 857,743 4,160,373 11,794,635 $ 45,201,362 Details of Long-Term Debt At December 31 Crane Co.: Sinking fund debentures due June 1992, redeemable through a man datory sinking fund, commencing June 1973 at $2,000,000 annually, plus interest at 6V2%. The indenture imposes certain limitations re lating to additional borrowings, declaration, of dividends .and ac quisition of capital stock.................................................................... Bank loan................................................................................................. Serial promissory.notes due November 1977, payable annually, plus interest at 6% and 6V*%.................................................................... Miscellaneous .......................................................................................... Crane Canada Limited sinking fund debentures (secured by a general claim on property and assets), due May 1985, redeemable through a mandatory sinking fund payable at $407,000 annually, plus interest at 53A%................................................... Crane Ltd. (England) term bank loans due: February 1969, interest currently at 8V2/o (7'/2% in 1966)................... August 1972, interest currently at 83A%-----'........................................ Glenfield & Kennedy Holdings Limited unsecured loan stock due 1982, interest at 53A% ........................................................................ Miscellaneous ............................................................................................. CRANE CO. and subsidiaries 1967 $ 40,000,000 -- 1,431,562 400,000 , 41,831,562 8,954,000 4,320,000 2,464,464 3,760,860 704,989 20,204,313 $ 62,035,875 Status of Stock Option Plans At December 31,1967 plan Adopted in 1951 Balance outstanding January 1, 1967 ....................................................... Options granted ...................................................... ................................ Options cancelled................................................................................................. Options exercised(11,550 sharesissued from treasury)...................................... alance outstandingDecember 31, 1967 .......................................... Number of shares 28,680 -- -- (13,510) Price per share $13.54-$29.07 ._ _ 13.54-- 28.98 15,17017.50-- 29.07 Of the balance outstanding at December 31, 1967, options for 13,010 shares were exercisable. No additional options are to be granted under this plan. Ian Adopted in 1965 alance outstanding January 1,1967 ......................................................... tions granted ...................................................................................................... Otions cancelled ............................................ ........................... ............. btions exercised............................................................... ..................... alance outstanding December 31,1967 .................................................. 26,520 2,500 ( 1,000) ( 7,104) 20,916 $24.58-$47.29 40.75- 53.75 40.75 , 26.04-- 29.58 24.58-- 53.75 Of the balance outstanding at December 31, 1967, options for 7,680 shares were exercisable and options as to 91,260 shares could be granted (compared with 92,760 at December 31, 1966). eport of Certified Public Accountants the Shareholders of Crane Co.: 'e have examined the accomying consolidated balance Bet of Crane Co. and subsidi es at December 31, 1967 and related consolidated statejits of income, earned surplus | changes in net working capital jhe year then ended. Ou.r.examion was made in accordance generally accepted auditing j&ndards, and accordingly in'ided such tests of the accounty records and such other audit- ing procedures as we considered necessary in the circumstances. In our opinion, the statements mentioned above present fairly the consolidated financial posi tion of Crane Co. and subsidiaries at December 31,1967, the consoli dated results of their operations and the changes in their net work ing capital for the year then ended, in conformity with generally ac cepted accounting principles ap plied on a basis consistent with that of the preceding year. I York, N. Y., January 29,1968 NET SALES PER SHARE* NET INCOME PER SHARE* 3.0? 4,1 ------- u 8 1.7 9 U9 F0.30 '58 '59 '60 '61 ^0.27 '62 '63 '64 '65 cf CASH FLOW PER SHARE* {net income plus depreciation) SHAREHOLDERS' EQUITY PER SHARE* ___ 37. 11 30.60 20 39. 38 42 57 3r83 ^40 23 10 01 '58 '59 '60 '61 '62 '63 '64 51.67 j 48 55 53, '65 '66 *ln dollars per common share outstanding at end ofv Ten-Year Consolidated Financial Summary 1958 1959 1960 1961 1962 1963 1964 -1965 1966 1967 Net Sales $336,196,279 310,172,639 285,618,712 319,556,202 333,766,863 337,365,571 357,823,354 370,084,039 405,906,737 403,360,619 Income Before Income Taxes $ 3,897,185 13,585,161 7,216,250 9,121,253 6,926,092 10,703,634 10,028,987 13,836,113 20,284,865 17,327,137 Net Income Net Working Capital $ 2,167,345 6,517,746 4,824,463 5,675,770 1,176,184 5,447,378 5,529,829 7,991,351 11,251,085. 10,228,250 $136,163,472 84,626,580 89,560,647 99,371,959 88,226,079 92,081,379 96,098,246 105,843,822 107,044,223 118,838,858 Depreciation Preferred Shares $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 8,632,062 $11,406,185 10,941,523 10,459,300 10,009,300 9,109,300 8,441,300 8,069,300 6,318,600 4,908,600 4,542,600 Common Sharehofi Equity Total $174,250,476 135,003,440 135,064,791 130,649,983 124,105,295 121,833,594 122,086,670 121,256,497 128,254,678 133,830,812 Per Share"? $30.60 37.11 37.83 39.38_ 40.23' 42.57 44.24 48.55 51.67 53.92, The 1962 net income has been restated to reflect an extraordinary item previously charged to a reserve for foreign contingencies. The balance of this reserve, to gether with a 1965 addition, has been retroactively restored to earned surplus. CRANE CO. and subsidiaries St Stabilization and Control of Moving Objects Crane's Hydro-Aire Division is a ma ' jor supplier of aircraft and aerospace * equipment. The Division manufacftures skid control braking systems, jhydraulic components, pneumatic [subsystems and fuel pumps. All are [In growing demand. In 1967, Hydro-Aire completed a 119,400 square foot plant expansion fas part of a program to improve "infhouse" capabilities and add to re search and development facilities. I | Aircraft Contracts Hydro-Aire is the leading producer skid control braking systems. Its Hytrol system, in one configuration or another, is used on virtually every tuS.-built commercial and military Ircraft as well as several foreign mmercial transports. In 1967, the Division received a ulti-million dollar contract from The Boeing Company for Hytrol systems :o be used on their new 747 superjet. his will cover work to be performed pver the next several years. , Hytrol was specified for the U.S. Mr Force's C5A, the world's largest ,military cargo transport. Another U.S.A.F. order involved a contract to .produce skid control braking system modification kits for C-130 turboroP transports. Hydro-Aire will sup'y kits, aerospace ground equipRnent, technical data and spare parts. 6 Division also was awarded the Iskid c ontrol braking systems for the TV A7D aircraft. UmP Applications |Hydro-Aire produces and markets PPecial pumps for missile, space ex The Boeing 747, carrying up to 490 passengers, will be equipped with the "Hytrol Mark 111", utilizing advanced hydraulic sensors and solid state electronics. Precision assembly of a Lunar Module coolant pump is performed under Class 100 Clean Room conditions. ploration.deep submergence and air craft applications. The Division has been a major supplier of aircraft fuel booster, jettison and transfer pumps for over a decade. In 1967, it received a major Boeing contract for eight booster and six jettison pumps to be installed on each 747 superjet. Hydro-Aire coolant pumps are op erating at the heart of environmental control systems in space in such projects as the Lunar Excursion Mod ule and the Apollo program. Hydrau lic piston motor/pump orders were received from Boeing'sSRAM missile and for Ryan Aeronautical Company's supersonic "Firebee" drone aircraft. Future Demand Last year, Hydro-Aire negotiated an agreement that will provide the Divi sion an excellent basic design for an engine-driven pump for aircraft en gine applications. This pump has ad vantages in the area of high pressure, high speeds and lower weight. Sig nificant market penetration is ex pected in 1968. An agreement was also negotiated with Kelsey-Hayes Company, who will manufacture and market Hytrol as a skid control braking system for auto motive equipment. The system has been extensively tested and has proved very effective. The agreement covers only the automotive field, leaving Crane free to work with other moving equipment such as trains. Even with these developments, the aircraft industry will remain as HydroAire's major market. Leadership in skid control braking systems, sup ported by fuel pumps, jet engine ac cessories and hydraulic products in dicates increasing sales volume in commercial and military aviation. Fluid Handling Systems Fluid Control I | (i> ^ }8.3l`55*'*4 '8J ' h ' n,|o':i1V i*ic k . k * r i * : ' '* ^15 'Tk` ' s S !: y > *, s*; n* <s*,->*, $4'i1 '> * ; *V4 mi - .u ,*, * V>' ih >%J <nM; ' 51. *"* < ' ' * ' M >1 ,? .3k> : .. 5 > '* s> * 'k ,;(ti 'Ski >i ' nK ; , . 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Vlfsl4(5 ss*j# su U; iJn':};*,)!;}' *5* /r()r` *, ^;?ip `| >'*c Ut(5J -cc .-* 'in: "/It! v^rtMV 4^9!k: jt j-<r' 'V ' isinV Js *\i V/sifS* '' M* 'VjK'f i " :$K*S . {ji^4ri tnh-'i J Stj'*f> 5S li ' si`{ ;T ? ?3ij^ i1??,-5 "i^2nSi' jii , H (V S ^If3^y<5-v ^<Mwr*iic `S^S n't 1 j SI 3 ja fj 'ji *f IS(!**3 JJf53j2| i >i ; j* **13^'U^r s * * ** *^ ^45|^t#s*: 'mjUj -sij 'iu #*i<;^ ! jnfv3i^h > ij1, rj^_'i(i ,' j j,'.;? *r, ~;}h* Mi .* ' Him *i . *' 1 > tl^fi ;< ' t i ??i,* 'VjoT'*' in,5 v ;u( , ;ffCN ntspfiilMtn sSh*YWi;*` .'*j;i>n.*! ' t -'S ,\<:[* - .';'> > * ,> u i !ilifi;i if:?;*: .:V;o-3i?K /s' Fluid Handling Systems Fluid Control Continued a wide range of valves for the new liner Queen Elizabeth II. Among these were a number of bronze wedge gate valves from Glenfield & Ken nedy, one of the few makers of this valve in sizes that can be used eco nomically in shipbuilding. Crane-Glenfield (S.A.) Pty. Ltd., in South Africa, the largest valve manu facturer in that country, experienced a growing demand for cast steel valves for chemical applications. In France, Crane S.A., introduced a variety of valves in 1967, including Gem ball valves and Gem modified ball valves for gas service, butterfly valves for use in oil tankers and stainless steel bali valves for the chemical industry. Two branch ware housing operations were started in 1967, and several additional branch es are planned for 1968. These will increase market coverage and per mit improved customer service. Crane G.m.b.H. added new ware housing facilities in southern Ger many. Coupled with the new valve manufacturing plant at Herne,, this will provide better coverage for the German natural gas distribution and chemical industries, the Company's primary markets. In Spain, Crane-FISA, S.A., brought out new bronze, gate, globe and check valves. The subsidiary is one of the leading Spanish suppliers of valves, especially cast steel gate valves. Most of these are being sup plied to Spain's developing petro leum and petrochemical industries. Crane-Deming de Mexico S.A., al ready a leader in water system pumps, is expanding its manufacture of valves. This line will be extended to serve sugar mills, petroleum stor age and general industrial use. Through Crane Australia Pty. Lim ited, Crane valves were specified throughout the vast new bauxite plant, Queensland Alumina, at Glad stone, Queensland. This is the larg est capital expenditure project in the history of Australia.' Major Pump Line Expansion Crane serves industry's need for a variety of pumps through its Chempump and Deming lines. There are three major plants in the U.S. en gaged in the manufacture of pumps. Pumps are also produced by Crane's subsidiaries in Spain, Mexico, Eng land and Canada. Other overseas units are introduc ing U.S. pump designs as market conditions and capacity to provide service develop. Crane Australia has begun to manufacture several Dem ing pumps. Pumps will be made in France when the new plant is com pleted. Crane's Mexican unit expects to add additional warehousing space in 1968 to broaden its distribution. In 1967, Crane introduced a num ber of new pumps for a variety of uses. Chempump, leader in sealed motor pumps for leakproof applica tions, completed the introduction of a metering pump line. This line offers the chemical industry leakproof dia phragm design that vastly improves liquid metering accuracy and re quires about 40 per cent less horse power to operate. Chempump achieved a technical breakthrough in the handling of highly toxic liquid chlorine. The new Crane Chempump Chlorine Unload ing Unit is of a leakproof design which keeps chlorine below boiling point, prevents gasification and elim inates costly and dangerous leakage. There is a sizeable market for its use since liquid chlorine is widely used in the chemical industry. The Deming Division, which tra ditionally has been a leading supplier; of pumps for residential water and heating systems service, has diversi fied its product line from one prima rily connected with water systems to one capable of serving the needs of the continuous process industries. Its AVS pump, introduced in late 1966, was successfully marketed In: 1967, being specified in a number of important projects. Also introduced during 1967 were 11 sizes of new vertical in-line pump that can be installed along a pipeli as a valve would be. The new pum eliminate problems of coupling alignment and require no sped foundation, features which solve d sign problems for chemical eng neers and reduce installation cos The pumps are part of a "family con cept," paralleling the AVS pum sizes, so that Crane designs makf the most of parts interchangeablli and reduce inventory requiremen for users. . Deming also introduced a new water circulator pump and a new of low-cost jet pump water syste both of which find standard usage, home heating and water supply- New Crane pumps planned for troduction in 1968 include multi-s split case pumps which are used higher pressure applications. Th pumps are expected to have con Irable potential as technological ad vances utilize higher temperatures fnd pressures in industrial processng. In addition. Crane will also infpduce redesigned deep-well sub mersible pumps and will further jjevelop the liquid chlorine and verSpal in-line pumps, both of which jive significant market potential in fje chemical industry. I' 'later Meter Line Developments |an allied area, Crane continued to gvelop its water meter line. The |arket potential is great as concern water conservation by municiijities and the Federal Government Jensifies. Crane now produces a fg-eighths-inch model that can be to 90 per cent of presently*ired homes in this country. By 3nd of 1968, development of the will be completed, with sizes fiugh two inches to serve all do- stic and industrial water meter lids. fin England, Crane Ltd. introduced |improved liquid meters released i R & D in 1967. This work abroad [ greatly aid Crane in its domestic |ter and industrial meter market ' once the meter line is complete |ough two-inch models. ^t the beginning of 1968, the Com fy introduced its pressure seal |?er meter. This solves technical |blems for water companies in ap- stions where meters closest to Bt distribution pumps may tend ^ak under pressure. Wide recepby water companies is expected. a. Extensive modernization of brass valve manufacturing facilities in the Chicago plant was completed in 1967. ., b. Deming turbine pumps, as well as Crane valves, are installed on water supply service at c. Chapman 26-inch stainless steel split wedge gate valves-100% x-rayed and dye-penetrant tested-act as stop valves on the recirculating water used in the boiling water reactor at a New Jersey nuclear power station. ^5 boilers of the new aircraft carrier, John F. Kennedy. Cochrane deaera tors have been installed on most U.S. Navy capital ships since World War II. Microstraining Projects Grow ncreased recognition in the U.S. was given to Glenfield & Kennedy's Mi crostraining systems in 1967. Micro Straining equipment is used to condiion public and industrial water sup- lies by removing algae and other uspended matter, and to treat sec ondary effluents by removing micro|copic particles and other impurities. !ew York City began to operate two Icrostrainers. These were installed 5p test their effectiveness in water Ilarification at the Jerome Park Res- oir. The City of Chicago installed other Microstraining system for ting on tertiary treatment of sewe in its Hanover Park plant. The Microstrainer is being redegned to reduce its weight, simplify anufacture and provide for easier, ster installation. This is expected increase the unit's use in municial water and sewage treatment as ell as open new applications in the atment of industrial waste waters. ecent Developments e Federal Water Pollution Control Qency awarded Crane a contract in 987-for a combined installation of ^restraining, ozonation and chlo- ation units in Philadelphia. The eftiveness of these processes will tested in handling discharges that ,;CUr when flash storms overload Unicipal sewage systems. Crane has developed a method of Proving the life and performance of electro-dialysis units used to re move salts from brackish waters. Based on the success of an initial contract, the Office of Saline Water is considering a second contract for more extended work in desalination. Under a research and develop ment contract with the National Re search Council in Canada, Crane is investigating means of regenerating ion exchange resins to improve both useful life and performance in treat ing feedwater for steam generating units. Results to date indicate treat ment cost can be reduced by improv ing both the performance and life of resins now used. Crane has projects under study to develop processes for the removal of phosphates and nitrates from waste waters. Working with Chempro, Inc., an improved process has been developed for the production of phosphoric acid, which is used in fertilizer production. This is current ly being licensed to engineering and construction firms specializing in chemical plants. a. This Cochrane ion exchanger at a chemical plant in Kentucky helps up-grade product qual ity by removing the formic acid that is formed by oxidation in formaldehyde storage tanks. b. Glenfield & Kennedy Microstrainer.drum is being lowered into position at Chicago's Han over Park Sewage Treatment Plant. c. Crane Canada Limited furnished the double unit, semiautomatic Cochrane sodium zeolite softeners that provide virtually zero hardness water used in processing at the new Pilkington "float" glass plant outside Toronto. Cochrane demineraiizers also provide mineral-free water for final rinsing of glass sheets during manufac ture. The plant is exclusively equipped with Crane valves. Comfort Conditioning and Sanitary Control Crane has traditionally enjoyed a po sition of leadership in the building and construction industry as a sup plier of quality plumbing, heating and air conditioning products. Sales and distribution facilities are maintained in the U.S., Canada, England, France, Holland, Spain, Australia and Ger many. During 1967 Crane took some sig nificant steps to maintain its promi nence in the field. - Crane Canada Limited's acquisi tion of Reff Plastics Ltd. adds an ex citing new product line. These pre fabricated, fiberg lass-reinfo reed modular plastic bathroom units will have significant potential in urban renewal and low-cost development- type housing. The complete unit weighs less than 400 pounds, is nest ed in three sections for shipment, is pre-plumbed and pre-wired and can be installed in a new home, apart ment, motel, hotel or existing struc ture in less than half a day. New Products Introduced , The two models of the modular bath room now being offered were among 15 new products unveiled by Crane in December at the National Associa tion of Homebuilders Exposition, the industry showplace for new building and construction products. Some other Crane products were a new "universal" bathtub which fits either left- or right-hand installations; an at tractive line of inexpensive plumbing fittings; easy-to-install self-rimming lavatories in vitreous china and enameled cast iron; and new heating and air conditioning lines. In total, Crane released over 25 Initial marketing plans call for two models of the modular bathroom unit. Molded entirely of fiberglass-reinforced resin except for a vitreous china water closet and steel lavatory, the bath room features attractive interior styling. new and redesigned plumbing prod ucts for production and sale in 1967. More than 20 new products are cur rently planned for release in 1968. Crane also introduced a com line of warm air furnaces in^ under its "Crane," "National and "Thatcher" labels. Cran provides suitable equipmej every conceivable home situati heating, cooling, or all-season' ing and cooling--at compet prices for both new constructio home modernization. At the same time, Crane duced a line of residential air tioners which satisfy most reside needs. Models ar,e available for" add-on installation to existing,^ air systems, or for installation pendent of heating units. Co able redesign included man oriented features, such as s weather-resistant coating, extra-large coil surface. Crane is now marketin electric warm-air furnace compact electric domestic ho boilers to round out the Com "all-fuels" capability. Expansion and Realignment' In 1967, Crane began extensiy. ernization at the Colton, Cali a major source of vitreous ch the West Coast market. In a move to increase pro efficiency and customer s Crane realigned some man ing facilities. Production o. Chef "compact kitchens" wp ferred to Crane's Allianc plant which produces enamp plumbing fixtures. Warm ai,, and air conditioning product were moved to Crane's Garwp and Duncansville, Pa. plant, other residential furnaces pw electric furnace for residential Installation will respond instantly to heat load demands, b. "Em- W" body-shaped bathtub receives a coating of enamel "frit'' prior to having the finish baked on in jfclln at the rear. c. Expansion of the Aycliffe plant (England) added this assembly shop and a fabrilon shop for warm air furnace units, d. The Crane Chef "compact kitchen" line features several |rent units, in sizes from 29 to 72 inches in length, with both wood grain and color finishes. |nic heating products are manugtured. [Crane Ltd. began further expanKof its Aycliffe plant to meet the Pand for gas-fired residential t-: Jting equipment. The new exten- ` S to the plant will add some 87,000 |are feet of space and follows a square foot expansion made 11966. The latest step is the third }9e in a planned expansion inliase in the plant's area to 350,000 Spare feet. Marketing Activities In view of the growth potential of the residential remodeling market in this country, Crane initiated the test ing of its Home Modernizing Expert (HME) Program. HME is an extensive marketing program designed to show existing dealers and contrac tors how to participate more actively in the plumbing, heating and air con ditioning modernization business. In cooperation with Crane wholesale distributors, the HME program was launched in 20 test markets in the last quarter of 1967. Plans call for doubling the number of participants during 1968. The Company's market position has been strengthened in commer cial and institutional construction by new products introduced in the last two years. A number of these prod ucts were specified in major projects in 1967. Crane designed a special vit reous china lavatory to meet the spe cific requirements of the new Hilton Hotel in Saint Paul, Minn. Also in stalled in the new hotel were "Dialese" bath, shower and lavatory fit tings, "Criterion" five-foot bathtubs, and jet "Whirlton" closets. The new Hilton Palacio de Rio Hotel, San Antonio, Texas, has a va riety of Crane plumbing fixtures and fittings, including the new "Empress" tub. The hotel was built in record time in anticipation of San Antonio's HEMIS-FAIR, which will commemo rate the city's 250th birthday this year. In Canada, the luxury high-rise King Arthur Court Apartments in downtown Toronto were completely equipped by Crane Canada Limited. Main bathrooms contain a tub, van ity with self-rimming lavatory, water closet and bidet. Crane's French subsidiary an nounced that Crane plumbing fix tures and trim were specified for an exclusive new apartment building in the fashionable 7th Arondissement area of Paris. Crane Co. Facilities WVI' :^3!= J HiW jxrsiJlK- >(]>,' tllitjfsj n,.*** *4 1* i(jn, ts</smi3i'`''i'll'n 'vnjitn J"l<sniis -"isliKs ..-i*ttt.liy -son Y( sol J, >i; : ' ; ' - *": ".'i fstrSflU^MO1<*<13 r.i 1 iik *'/ -3i : t ot'H !';}( S'*-* 3? >ts*= Ii,;S 13 * > i : at m ` cjlftni'i `Vi*.5 IS'SC''?] 33 ^3 Sj3! '* 333(3 -^,,3, u|jCs in Vil;'i o "r.Srr;: .-i'i'fc j`, t sn i V's'st UNITED STATES OPERATIC 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 INTERNATIONAL OPERATIONS Crane Australia Pty. Limited St. Marys, N.S.W., Australia ^ P. J. Farrell, Managing DirectdfSP*' Crane Canada Limited Montreal, Canada R. S. Reade, President .. Crane Ltd. London, England Leslie V. Chater, Chairman David Burns, Managing Director*?. Crane S. A. , Paris, France ' R. D. Hatpin, 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 Nederland N.V. Deventer, Netherlands G. DeHorn, Managing Director Crane-GIenfield (S.A.) Pty. Ltd. Benoni, South Africa J.W. Boocock, Managing Director Crane-FISA, S.A. Bilbao, Spain F. A. Burls, General Manager Printed in U S '- OFFICERS THOMAS M. EVANS Chairman DANTE C. FAB1ANI President WILLIAM D. GRAHAM, JR. . Executive Vice President--Crane Group ROBERT E. CASNER Vice President--Operations--Crane Group WILLIAM C. DACKIS Vice President-Research and Development--Crane Group CHARLES R. EBLE Vice President-Customer Relations LENNART HAHR Vice President-International Operations EUGENE L. HANNON, JR. Vice President-Crane Supply Company JOHN P. KiNNANE Vice President-International Sales DALE A. LICHTY Vice President--Hvdro-Aire Division DANIEL P. NUGENT Vice President--Marketing JOHN H. REDMOND Vice President-Research, Development and Planning . ROGER A. SCHLIEDER Vice President--Finance and Treasurer NORMAN PACUN Secretary and General Counsel JAMES F. O'BRIENi JR. Controller STOCK TRANSFER AGENTS Morgan Guaranty Trust Company New York, New York 10015 Continental Illinois National Bank and Trust Company of Chicago Chicago, Illinois 50690 REGISTRARS OF STOCK The Chase Manhattan Bank New York, New York 10015 The First National Bank of Chicago Chicago, Illinois 60690 BONO TRUSTEES & DISBURSING AGENTS First National City Bank New York, New York 10015 AUDITORS Arthur Young & Company New York, New York 10006 EXECUTIVE OFFICES Crane Co.. 300 Park Avenue New York, New York 10022 Crane Canada Limited 5800 Cote de Liesse Road St. Laurent, Montreal 9, P.Q. Crane Ltd., 15-16 Red Lion Court Fleet Street, London, E.C. 4, England CRANE CO. 300 Park Avenue, New York, N.Y. 10022 CRANE SERVES: Industrial Markets with-- Fluid Control Products Valves Pumps Meters Fittings Water Treatment Products Water Conditioning Systems Filtration Equipment Aircraft & Aerospace Products Skid Control Braking Systems . Aircraft & Aerospace Components Building & Construction Markets with-- Plumbing, Heating and Air Conditioning Products