Document r626BLD1aVXVrLZvg3gXXp6De
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 .
. 1
Letter to'Shareholders'
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 primi+d e* rmryd+d paprf rr/locUMf Crw'i iwaraasM mf tkr mood te
` t 'mature! rttourco* *md tko 4
C
Operations
Engineered Industrial Products *
Chempump Division
'
., ' Warrington, Pennsylvania
. ,
Cochrane Environmental Systems Division. , , King of Prussia, Pennsylvania ' .
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, Illinoit
'
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
.4
'
'
4
Huttig Sash & Door Co. . Chesterfield, Missouri
. ,,
Crane Canada, Inc. , Supply Division ' Montreal, Canada
'
.
Valve Systems & Controls' " ' Houston, Texas ' _
..
CRTX 0788
i
Financial Highlights
,'-v " ' ' ;
' *' - *
- : . .. CmrlkalMMm.;
Ifnthrxnaadirxrrpt prribarrdaUi)
1
Nrt Snlw
OjHTatinp Profit
Inromr brfbrrTaxm-ContimungOi>rrali<m*
BJl;iJnllil41iltllllli|llii,illll J^1
1990
81.4384218 113,311 102.488 <39.753)
8 62.735
1989 $ 1.435.389
103.015 91.579 <33.660)
8 55.919
1988 $1,313,136
93.666 81.490 <32.301)
8 49.186
1987 1986
81.099.596 81.013.718
75.130
75.011
58.511 . 55.305
<254137)
<26.520)
8 32.701,r> 8 28.785
- . Inromr ^intinuinj: 0|H,ratiimu'
l'u!i Divliknl. Italuml
,
$1.96 ,"3
$1.72 _*71
81,tft
t62
$.97r' .58
$.91
Avrrapr Sharw.<luMnmlmj:____________ .
32.057
32.M38i3~
33.636
33.826
30.867
* tertmir,imrmnrfnmsmenlJhlritmlrJInthnrrhMmiif*nX>7tfjhpmlmrriirnlwmi'iXI.Wtitrtprr^njrtlnivr:Yimj^J')3ifJllYr,^n'T'
6Nh
. -, '
' , .
_ - _ . - *;
ft* AdjtalnlfitrSm %lorktlitlrilmlitmin I'tm.lkrrrf.r lnmtlTt. tjJil im IWlTmmlMl'i tlirk iHnntmlUmin IVIb.
...
.. " .
*r# inrmtmrbrfmrrnaniJmtirrrffrti nfmrhnmjcrin mrrmtHlin/t nfS.i.ti731$.lbfwr%hnrrl. ,
' . --
CRTX 0789
letter to Shareholders
Robert S. Kram_-_v. _ Chairman_ CfiirfKxmtrirrOffirrr uml I'mb/ml;: .
^7iv,
DrarSharrholiIrr*:
.
;
In a v*ar whirh startnl slowly am! rmlrtl in rrcmsion.
Cram* CnTs ovrrull |H*rforinnnrr was sutisfurtory. Earning*
|H*r sharr ntm* fmm $1.72 In $1.96. a 14 |H*rrrnt inrrrasr.
ilrs|iitra I |H*rmililrrlinrin salr*. IVet inromra*a - .
prrrrat ofsale* nmtinunl to imjimvr fmm 3JB perrrat in
1989 to 4.4 jtcrrrnt in 1990. Cash flow, whirh consist*. .
of I'uriilnji* |iliis li'jim'iuiimi, umorilrulloti uml
Jrfwnil lasnt inrrrasnl fmm $2.87 to $2.% jht sharr.
Rt'liim on shnrrhoMrrs* equity cxmilnl 20 |M*rrrat fur
tlir fifth ronsrrutivc ypar. This rrlurn, whirh ranks:
Cranr in Hip toj> 20 |rrrmt of Firlunr 300romjianirs,
was arhinrtl in s|iitr ofronlinunl mlurtion in financial
Irverapr. with thr total <Irl>t to rtjuitjr ratio ilprUning from >
33 |irrrmt to45 |rrrrot.'; J'
: at many ofour business units. ftirtirularly outstanding^,,v. wear Rrsistoflrx/Industrial: INRI.Cnddl anil tbrll.S. Yahr^iC;
Division. Ilnwrvrr. Ilutli' Sash anil Door sales dropped i'?-
0 IftpeM for thr yrar. as thr market pmgnrssivrly shrank?)
tint* tu Uip arrrli'rutinjtilw'Iim' in ImiisinnslHrlsrausniiiy^;
. tlir rmlit rrunrh. Canada also rxprrirnml a ilrrlinr it7V housing, with starts dropping fmm 2311.0(10 in 1989 to)).
finish 199ft at a rate lower than 110.000. This 40 pprrrnt ilrrlinr made 199ft thr worst yrar sinrr 1983 amt the-? .' ? Canadian rmnomy finLsbrtl at !rvris similar to thr seven*.'.;, rrrrssionin 1981 ami 1982. Thr I99ft ilrrlinr in Canadian 7 earnings nrgativrly im|iartrtl total company earning* bjr , . almost $.20 |sr sliurr. HrtWmn also im|mrtrtl ours?.) ;; o|H*ratiims in tlir II.K. ami Australia, hut toalrssrribgntvV
; ... redured by a nonsrash rhargr of$.06persharr dnPtotlsR^ 7 arreleratrd vesting ofrrstrirtrd stork grairtsVcausnllqrthe)??
Till {n'lrral inrmtw nfCraiwV stitch |irtrpvrr ihrjitirr|):.
CRTX 0790
on thr day of Ihr grant. In 1989. a similar non-rash chargr wr sold thr Sra-Par Salps Co., a distributor offloor
of8.08 per share was recorded. Cranr has pursurd a |H>liry ofaligning shareholder am! management interests. Inrentivrs
covering produrt*. anil our MrAvity division in Canada, a munufarturrr of waterworks valves anil hydrunts. fir an .
Hurh as stork options. 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 rnntinurd its long-term share .
satisfying to notr that ovrr thr last fivr yrars. Cranr has
repurchase program by buying899.061 sham on thr ojira
provided a nunjinundfd avrragr rrliirn to our shareholder* market at an avrragr prirr id $20.76. Our piiliryis to buy .
of20 |irirrnt, nimpnrinl In 13 |H*rmit for tin* SR P 31111.
Crunc slimes when liny- ivpnwnl un uppnipriuh* inviwimrat,
In Jiiiii*. Stauiluril & l\mr*s ii|igruilrtl Cranr** senior
W ith un mmnmir downturn u|Hin us. wr arr entering
ilrlit rating to lllllh from llllil. This is thr third ujigradr ofour credit rating ovrr thr past thrrr yrars. Standard & Poor's said that thr upgrade rrflrrtril an improved
1991 in a strong position, hut also a peril'll ofgreat . .
'.
tinrrrlainly. Our goals are to nintinur to strengthen our. .
business units while adding value In taking advantage of '
tiusinrss (inifilr dur to an|uisilions. divrsliturrs anil cost . op|Nirtunitirs whirh may lie rrrateil by finanrial strrss.iv--'_7.
rutting measure* ovrr thr |iast five yrars tluit mhanrrd thr .
Wr continue to lie rtmrrrnrd about thr environmrnt77 r.
rom|iany*s product mix ami rnlurril ramings volatility. Standard A Hmr*s also indiratrd that Cranr was well
. ami I am phased to te|Hirl tlrnt wr have mudr progress `. 1990 in cleaning up prior problrats and irairoviBg'oin^.t^;
situatnltnwratlieracyrliraldownturn. ';
processes ami prartirr* to insure the futurr.;7'
Our jKTfiimanrr in 1990 proved thr validity oftheS&I* . I would likr to thank all Cranr employers for thr surmiwr- ' .
rrjHirt. Ninety peirrnt ofour sales ilrrivr from husinrssrs in. wr have arhirvnl and rrrognizr that what makrs Crane'
which wr have a number one or two market sharr (msition ' strong rompany arr the pmplr who work to serve iwr^'^;
and 10-50 |M>rrmt ofour profit* arr pcnrratrd Ivy nftrr*
vitslumm and sltan'linldi'm. In pnrliinlnr, I mud ntrnliunV-.
nmrkii sates. These furtiirs. ramliimd with our improved
Mr. Ilunte C. Fuhiuni. former President ofCrane ami a-:'.: .
finanriul strength. |Hition Cranr well for thr futurr.
Dirertor of the comjiany for 30 years, who is retiring from!; ' .
In February, wr acquired thr Lear Homer Coqioration. our Ihiaril. His drdiration. wisdom, and friendship have
a manufaeturrrof|iuraj*s fur thr armsparr industry, for 8W) million. Their product* romplrmrnt Hydro-Airr'srapa^
Item invaluable to Crane Co. and will lie missed liy all who '
.7. . .have had the privilege ofworking with him. !
hilitirs in this market ainl had a positive imjiart on earnings.; 7
In SrptrrabiT.wr announced wr were considering thr . Sincerely.
'
; 7/. 7-"?'
distribution ofour ilrfrttse businesses to our shareholders.
We terminated consideration ofthe spin-off brrausr ofthe
low (tubltr market valueofother rrrrntly spun-offdefense.
rompanies. public costs which were considered to be
H.S. Evans:
'
disproportionate to the sixr ofthrse small businesses and 7 / Chairman., .
thrlarkofcashflow hrnrfits to Cranr. . 1.. V . .7 ; ': % .; Wtiirf Evrulivr Hffirrr? / .
: -r *i \
Towards ibrend ofthe yr*r, an part ofourongulng
und President *
.V
program ofasset redeployment to improve performance.. ;. February 28,1991 _ . _ . - .
CRTX 0791
Managements Discussion andAnalysis ofOperations
Results ofOperations
{.'raw Yalmarr oj/rnjiabronzr. : inm. xtainlrx* amitvrbo* *tnj,> _ .
.titii/nWe in tiuU. buttrrfly. gate. . flfofccamtrfurit roaftguratiua*.-.
tHl,ftram;fm*,tintIsamtlmlhrr -.A;
JL'. romairr- ~
.\
Consolidated
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 percent lu>I<iw the . 1989 level. The anjuisition ofl/ar Rnrarr in February. 1990
ami the company's strong market share position hrlprd to
soften the adverse impart ofa weakening 17.S. eronmny, -i,
a rrression in Canada, mluml defense spending and the -
divestiture, in 1989and 1990, offoursmall business units. ;V Sales in 1989were 11 |*errent higher than in 1988 dor 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. Theronllmied?|K5|;;
improvement was prinripally idur to Engroerml Imlnstrnl^
IVmlnrts whirh has improvedoperating mniynsarwlinrrntsed -
volume over the last two years. Thr 1990 improvement was
partially ofTsrl In a derline in thr U.S. and Canadian,"- {v
residential rnnslnirtiim tnarkrl whirh nrgativrly imparted r. IhiIIi llultig und Cunudu Supply In the WlM&wale IHMrilwllon segmrnt. Operating profit was rrdurrd in 1990 and 1989 ;'; -;-.
Ity non-rash charge* of$3.1 million and $4.1 million; ; . -
respectively. for the early vestingofrestrirlrd stork awards >"
due to the favorahlr |terfornuinre ofCrane stork. - * `
- Net interest expense drrlined in 1990 due to a rrdurtion
in Ihitrowing levels. Net interest expense in 1989was less
than in 1988 as a result of lower harrowinglevels partially; ;
offset by higher interest rates. Misrellanrou* inromr, 4;
ronsisting primarily ofgains on sales ofcapita! assets, was -v,'
$4.7 million in I99ttrompaml to $3.4 million in 1989.
,
lilisrellaneous inromr of$2.9 million in 1988 inrluded- ' j.
$1.3 million from gains on the saleofmarkrtaUeWmitirfcC^
Therumpony** rffeelive tax rate was 38.8 pnernt in 1990;^:
38.9 permit in 1989and 39.6 permit
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 'Xwh!ihI 20 |H'rmil for ihc lust three years.
' At the end of the third ipmrtrr of 1988, Mnlusa
Corporation, a wholly-nwnnl rement and aggregates
business, was distributed tax-free to shareholders. JVet
inrome for 1988 was $62.5 million, reflerting Medusa's
$13.3 million protit fir the first nine months^
-
Engineered Industrial Prodnets ; -
:
ihmiKmsf':' ' `
1990
Sales^
' _87623_
Operating Profit___ 8103.9
1?11?*?*!!!9E Varpn__
13.6%
1989 $747.1 $ 90.7 12.1%
J___ 1988 $706.1 $80.8 11.4%
; , The Engineered Industrial Products segment's operating
profit inrmt*nl 15 prrrrnl in 1990 anti 12 itrrrcnl in 1989 ;m Miles gain* of2 percent anil 6 permit, respectively. .
Operating margins tune risen to 13.6 iierrent in 1990 from %12.1 {terrenl in 1989and 11.4 permit in 1988. , ; , The ilomestie lalre Division ojteratrd at a small loss in
1990, rrrording three ronsmilivr profitable i|uartrni V following a first quarter loss ami a $6.5 million loss in 1989.
The impart ofrost rrdurtions and ninsoliilation programs implemented over the past two years is rrfirrteil in the improved rrsulls. 1989 rnnlts wen* nrgatively imjiartnl liy costs associated with dismnlinurd produrt* and elused . farilities whirh totallrd $1.7 million. Valves runlinuril to . eliminate unprofilaldr produrls in 1990 and sales drrlined . 10 permit vrrsus the prior yrar level folluwing a 6 permit decline In 1989vs. 1988. The valve business** in Canada; .
V CiCmiIS.1 ISirir. ?
Torque canlrollrdratter, expanding thr tubes ofa marine, main engiae>:.--:c; ait-coalrdheatexchangeeat &nse| tndustriaVi Cardtrorth, V. K. Prjmte^S7.
'"'.V'V-'il' '*.
CRTX 0793
I
Managements Discussion andAnalysis of Operations
<Jirnijmmp submergedfanned ' motorpumps bringinitnllnlat a___ larprrftrmiraltstanu/artairr. Plumps, tnoantrdinside tolrrttl storage!*uppfy fault* hr/p toeliminate' paOtttiomaflheentinmmmiby protidingpmilirrraatainmrut".: ' cjfhosardou* liquid* aut/rapor*.
. ftobotkallyappliedplaxtir-arrrflotcstmparrrlaiuor fieri,:
taratorirsarrhrfpuigCranr-
s' Canada** Stratford. Ontarioptaut^- . t: stayan the lradi*gedge tfartc . . ;
( qunltyrltrlinidmi&jy^
^iv ''jSi
thr United Kingdom am! Australia all suffered from the ;
eronomir downturn in 1990 with Canada operating at . -
signifirantly lower Irvcl*. This comparr* to improved
result* al all thrrr businesses in 1989. Canada sold its . '
waterworks va!vr|irodur! line in November, 1990 and - . .
rnnsnliilatfd its remaining valvebusinesses into thecompany's
othrr Canadian operation*. Crane Ltd. wild its steel
.
foundry in 1989. Both divrolcd <i)H<rationn nmlriluiittl
marginally to sulr* and profits.
..
The Chrmpump and Deming |inmji businesses showed
higher earnings and im|irovrd shipment* in 1990 after.
nronlinglowrr jvrofit on slightly highrr sales in 1989. ;
Deming, a mannfarturrr if|iumjis for the general : V -:S:
industrial market, purchased an air-operatrd diaphragm-.^ V:
pump line for $1.3 million in 19901 Ciwmptmpi
leading manufarturrr of!rak|iroofrannrd motor oripiiml an additional canned |ium|i line from pmoie^lS^ Imiustries for$.4 million in I989.':-.:;^i0w^^i^l>^f
njuipmrnt fir treating water and wastewater.
company rejnirttil a sharp inrrease in sales ami profit'r^fC
following strong improvement in 1989. Tlr
serviees lupines* of lleleo Water and Waste Treatment wa*,V;.
flri|iiimtin 1989 for $.3 million..
: .^
T1h> Vanadiiin Plumbing o|icratiiin. offering a full line . '
ofplomliing productsfir thr residential and commercial; ,
liuililing markets, was severely imparted in 1990by the;;Vj'
recession in Canada and thr liuililing tradrs strike in :,. ' /-.
Ontario. Shipment* and profit were down sulistantially
in 1990. Although shipments in I99Shatl improved over , /-
the priir year, ojirrating margin* hail rrndrd due to strong/^;
prirecom|ietition and a slow construction market.;
, . Hydro-Aire is the world leader in the design and :. ' , \:J:-
munufurture ofclectronirally controlled anti-skiil braking^;
control systems fir the aerospace industry. The divisionV
profitability improved in 1990 drspite a smalldrrline inj.0
sale* following a year ofstrong volume and profit powltvS^
in 1989. Shipments in !990 were imparted by a decIme nr|S}j
defense spending, howrver, the commercial aviation^
CRTX 0794
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 penomni'l elevators,
cranes, spcclul-duty wliirhrs and ummunition handling
equipment for the Navy. , .
`
. Sales ami profit in 1989 were signifirantly below the 1988
level. In 1990 these businesses were slightly more profitable
than in 1989 un sharply fowrr sales. These companies,'
. whirh represent Irss than 5 percent ofCrane** total salrs, -
: continue to fonts on cost redurtion. 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 acquired bear Romer,
0 nmanufarturcrofpumps for the aerospare industry, for
$40 million, ls*ar Homer contributed signifirantly to thr -
sahm and operating profit increase ofthr Engineered :
' Industrial segment in 1990.
/
: Ferguson markrl* pnslurts for transferring and |*osi- ;
f tinning component* on assemblies in nn atilomnted process.
Ferguson rrrordetl a small profit in 1991) on lower sutes
following a breakeven year in 1989. The domeslir business rcdurrd its loss in 1990 compared to 1989, while the
European operation improve,! its margin on lower volume
; resultingin a slight increase in earnings. _ .
|
. / Remlite is the leading supplier of fihrrglass-rrinforcrd .
^panels to thr transportation and building product*
'
*;:' markets. By introducing new product* and expanding its - .
7 '. distribution network, Krmlite continued to inrrcase sales .
and gain market share in sjute ofdepressed transportation .
and buildingproducts markets. Although profits have * :
. declined over the past two yean, they remain at acceptable.;
levels consklrringcurrent market conditions. The company,-
is positioned to take advantage ofany economic upturn, f > .
Ilytlro-Airrmpinrmuimfza CD) ,, system to dierk the internaldrift tmxiagr* oftt contra/ratreprior^-rl.
programming, - V:, ;'v. It
Rnriutm,omnrtlimrtuwmim tlural/e, mniiiliirenwInsf.V ' 7 V /: ' dmmuire millponding, mi ; ' i-" >; '] introtlurmlhr firmfitsin IVMt. jy .4 smooth, Hints *J*JifemfeJ ;l pond, Emridamproridr* aU l&c.V: benefit* offibrrffaapood*, plms^yf;
; , . , - **". * ,4 ;;>b
r T.
v"'
i *
CRTX 0795
Managements Discussion andAnalysis ofOperations
At Rrmtoflexllndiutriola PTFE [tipeipaolatttoinatirjlarin/t . vprmtiamflam both ends ofIhr pipeat the sametimeamtdrtivers afull tlKtt hydro-tnipriorto . cmlamerMppia/c* '
ItlMiimaiyendocs Refreshment Centerh theeafyautomated ' vendin/ftMarkinecMpablcof'
CcrTec's sales and profits increased for the third consecu
tive year in 1990 in a very competitive transportation '
tnarkrl 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, plastir-Iined pipe, fittings and valves ..
had a twtird year in ItMMl* its third ennKwullve 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.
r ...
Potyflan manufactures high-performance substrates and:
radio frrtpirary capacitors for rommerrial and arrospaee;:;
usra ami magnetic rrsonamrimaging(MRI)rurtheinrdiral
industry. Salrs and profit were below its rrrordl989> '; results, however this unit ronlinttrd to inakr a good profit^
. rontrihutlonrrialivetoitssmansirei :; : '
' National Vendors is the targrsl U.S.numufactorrrof^;:;
automated rlertronie vending machines. Sales and profits?
deelinrtl from its record level in 1989, which inrludrd sC
large postal vending order. Although 1990 rmJtsvneffi^:
imparled hy a weak rronnmy. National Vmilors rontinnrdj
lupin nturkrl share in the 11.8. through llte inlrodurlkmiv
of new machines and rontinued acceptance nfexisting:;':S
produrts. In addition. National Vendors expanded its.;. ^ .7
distribution network in Europr, whirh shouldhavr a1'-';-;--,
favorable impart in 1991;:
v?.;,: y;'
. National Rejectors, GmbH had a rrconl year in 1990;;:;
following a significant improvement in 1989. The rompany
designs and manufarturrs coin validators and handling f;'.
systems for vending operations throughout Europe. They : ,
finished 1990 with a strung urdrrliarldogand expert tor ;
. capitalize in the roming year on the opportunities '
prrscntrd with the minifiratinnofGermany.
ran hcrorogrswfifflg with ihr(f -V I slabtefoodandsttark products from aithia 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, m|irrlivrly. from 1989 fur ilti* Wholesale Distribution segment. Tin* Increuse in sales anil profit in
1989 over 1988 was tine |iriinnrily to the inelusion of
I'almrr G. Is*wi*. anjiiired in July. 1988. for a full year. Iltittig Sttsh iind Httor is the largest nationwide
distributorofmillwork. window*. doors anil rrlateil
, .
produrt* in tlie U.S. They rxperirnml a difficult year due , to the weakness in the housing industry, wtiirb deelineil to . the second lowest Irvelofnew rrsidrntialrunstruetiiinsinrr:
World War II. Iluttig** shipments ilerlinrtl 6 |ereent and . - :
operating profit was 12 prntmtkmer in. 199(1. One third ^. idthe mlurtinn in sales was due to the sole ofthe Sea-foe anil Gtichranetinii* of l\dmrrG.Lrwi* in 199(1 anil 1989. rrs|iertively. In spite id these diffirutt conditions. Iluttig; . . was able to inerrase market sliare due to tight eost controls / ami further |rnrlrathin of the rrjdaremrnt. remodeling \ . " nml rvhnlrilitntiim markets. I hitlifts 19119 results wen* ulmvt*
v tin* prior year due to the full year effect of the uci|iiisitiun .. : iif fotmer G. Ijrwis. Tills more than offset weaknesses in .
. IhittigVwholrsalr.inarkrlH 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. r|ierienreil a 10 |inrrnt .
. -
' 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 inerrase. Canada Supply.. .. .;
: has limialileto rrniain profitable ami inrrease its market'
shareilespitrfirnv pricing pressures.
y - ... ;' . . :
-4'IhfiwSyrfiwand<imlrolse|ierienmlstrongilemaml. .'
loir its aiihatrd valves ami flow control systems,; ; - .
: -.
particularly from ihe petrochemical intlndry. Sules unit profit improved significantly in Imtli 1990 anil 1989 - >,, , j
/through the addition ofdistribution farilitirs in Isiuisiaha'. '.
cand<mlifornia.> . .: ;;r ' * '
/'
A?.rl!r door Mnp built ai the Mmkmm imnprompunnitM millrdml Miiuumtu foralitM. : '-
.1 llaltip trimtutFarrunpemml a a{'">; 1 CMSlom-fcuifl harness;^.;'.V-r.. :4 " #6}
- v.Cysr J
CRTX 0797
for Vror, BnJrd ftrmnbrrll (In 1hinuandt rxcrplprrtharr Jala)
Nrl Salrs
Oprrattog Costs and Expmmt
Costofsali*
-
-
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
Oprralinji Profit
-
(llhrr Inromr (Drdurtlon*)t Intrmt rxprnsr--nrt ofintrrrst inromr of81.224,82427 and 81,730 in 1990.1989 and 1988
Misrrllanrom--nrl
. .
.......................113,311 _ , _ 105.015 _ .95466 -
(15,522) 4,699
(10,823)
(16450) 3484
(13.466)
-
(17,112) 2,936 -
(U.176)
Provision for Inromr Taxr
.;
InrotncfronitonlinninpOprratlons v-
. .. . *
102,488 39,733 62,733
81,490 32401 49.186
Inromr from Srgrornt Dblrifmlrd to SharrboMrri*' ; Mrtltisa Corporation, nrt oflnxn of86.727-
`: v -
Nrl Inromr' '
;'
8 62.733 8 : 55.919' -< 8 62.183
Primary Inromr PrrSharr from ItonlJjndnpOprrnllon* . ; ;
Inromr from Srgmrnl Dbtrihplrd lo Sha^oMrrs^-Mrdnsa Corporation
Rr Inromr'
1 -
81.96
- 81.72
81.46
- -''V 814B'^
Krl Inromr-
CRTX 0798
- C-
Consolidated Balance Sheets
l*s> llr.rir.
At Drcrmbrr3l (In thousands excrpttftarr data)
Asset* Current Assets!
Cash and eash etiuivalent*
. '
____________ '____________
Afcounts receivable, tess allowance of ?1,090 ($1.502 in 1989)_____________
Inventories, at lower ofcost, principally LIFO, or market; replacement cost woultl lie higher by $46,935 ($45,890 in 1989);
" FinLsbeil
Finlshnl partHand tmliawmltliw
Work In timmi)!
; ;.........
-
- Raw materials anil suiitilies
Other rurrmt asset*
;
' Total Current Asset*
Property, Plant and Equipment at Cost*
>- - Land
'
vi;.. - nuilding* and improvement*
Marhinenramleituiliment
.
' '-'
' - `'
.
'
. lew* accumulated driireeiDtinn' `
:
-
!vV'.- ` '*'>.} '
.. - * . " "*
` \ - _
-
Other Asset* v-, " :. ' - . ::. ~
. Cost in Exrrse of !Vt Asset* Acquired, less arriimulalnl aniortirutiun .
-;> r86432 (81416 in 1989)
,'
' ' .
I4nhflilfrjt nml Sltarrhnliirr** Equity
,
Current iJabUUkwt : . ; . /; .: .
.__ Current maturilje* of king-lrrradrlit?___^
___ LnaRftjKiyaMr'
;____ 'I..:.
~ Armunt* payable ` / .. , - -
- - Aerrued tialiiiitie* - . / : . *
" II.S. anil foreign latestin innimr ' ~ '
Total Current liahililie* ->
Long-Term Debt : - ~ 1 ____ __________ Reseryrsiand tlthee Liabililie* ........ ....... .......
Aeerued IVnskm liability. IMrrred Ineome Taxes-
.......j. .
8 8,363 170,934
$ 4,855 173,050
133488
134421
206,476 6,419
392342
209411 11.089:
398435 -
.
21,001
'aisasi:^
123,019 .
127405'?-.
' ' '
242.923 ':'229423#
388,916V*. ^.3WUBI^ - " .200.713^ ^r:i92Sife
- . ; . 188333 . : 19,619'=
26,134.%;
61,717 8661.811
$631437
8. 10,341 27.621
/ 62,470 ~" 1
1302 174,438 101,113
8,823
11,102
jjua 20.422
"'73419
ESQ 123* 181,138:
Common ShjuniMdefwIfyifty*-
. ... -v-
^t'ClKlunonli!lar^,^uue81.0(fc;^\:-);^^.^'^\!.;..v.:^'v.:;
U>t'^.Anttoiml
' .;< rV`' "' .>j`:'
T'- <.Outstanding--31344479share* (31808,G27in 1989)arterdedurlinj: 16343,733'
^y^y.^*lwnwlniiint*Hry|l5^/iiW}nJ^)
A:/ .. /' .
^.(BopMimqtltit)^^-' ^~
-
Retained earnln
"
........................
'
. Cairene* translation adjustment
^
Total Common Shareholders*
*' 235310 -V 191021S
316.806 8664311
283344 8654457.
CRTX 0799
f`lwn EmJnl Ilmatrfil th thmummlt/
1j*4 Hn from Oprralinp Arliiitint: Inrnmr faun mntintiing 'tjKTutiim*
IVjirmnlhtn
-
Amurtizatinn
,
Drfrrml Tu\*>
'aJi (tiHil for) [imviilnt faun n]imlinwiirliin{!riijiilal
Dhiilrtnl mrivnl faun Mnluia .
1990
802,7.15 23.118
_ 6,981 " 2.023
(1,883)
1989
833.919 2Uli
" *-*31^ 3.796 T-TW
I9S8:
8 49.186 Ij9.:y
7.337" 1.993 (28.711) 81.300
Tolul from flumtllnu Arliilllm
116.529
100.907
llaJi Hm* frnni ImrMlfld ArlMlinu
(Iaj>ilalr\|rtiifiliin*
'
IVnrw!- farm <li,|MMiiiim>rrajiilal asMl* _
__ __
(23.108) ______________ 6,013
(.13.189) 9.133
(17.865) 4.337
' )j{uib imrtmrnt
8,187
(8.080)
"*'-* -1-- .
l'a\mmt fir anjui.ilimi*. nrt iflialulitir* asMitun! of83.976 in 1990. . 81Ui. l989atMl83l.l69inl988 .
(11,250)
(1.193)
(17.338)
- I'ronnl. faun ili\rMi(urr "
Tola! fawn Immling Artivilin. -
] sfaunFlnanrinp Arlivilimi
.-
Vwr*!t~ :.ec '-.V,.'-'*v; <>i%l(lr>n<|[. ~?..H -
--
20.275 (32.183) .. , ' _ .
(23.690)
3.378 (29.911)- bees! ': -/ >. -s w^v.;
J `;
(22.731) v ; V`. (23Jli)i
' HrarnuKhiiuntfi4iafa_ _ iilJ.L, (21.897);
(32.2%) v- (27JHD)^
` S|m4mjilion*r\rrrbrtl
__ !-_______
. 3.993 :_;_a'3.I46^;
" ' JtataniUiim ofcommon *!iarr imrrha*r rijlit* ' "
' ' '~ -
'-
(i38)W
Vl Kittitf ' - `
"
(11,391)
(31.881)
(31.128):
.. Drill: : ....... ,
:
IVihwiK frum iuonniv uf Imijilt'rm ili'fit
t ..
11.195
21.1126
:; 3JU4i
Ili'luomi'nlMifliine-tti'mtMil
'
.
. ......... (5Jti) _ (133)21) ^, ,_V (I7.566>;
\rl intTrax* (ilrrrrar) in tthurt-trrai ilrltl
5.093
(31.030)
15.767
(9.553)
(51.218) . 2.069,
Tala! faun Hnnnring ArlhilHn
(51.117)
(106.129)
(19.359)
' Kffrrt iTrxrhanp. rati* im rash ami rash niuivali-nt*
-
309 30 190,:
I-;-. Ittrrra*r (ilrrrrw) in rn4i and rn4i niuivalmt*
. 3,308 , (33.113);
- 27J83
l?- * (Ia.fianilra.il riiimatrni* al Iwranning ofyrar
' "
' -1.855"
10.000 '
: I2JT.13
Ijili owl ra4i muiialrtil. at pnd iTyrar
8 8.363
8'4JL15
8 -W.OOOfV
CRTX 08C0
I In ihimMimU rxrrpl thurrdal*)
__
At I)rr-mbrr 31. 1987_______ _ _ -' '
AVI innimr_ _.________ '_____ __________;__
Uilhiiirttili
_J;._
__________
V. aJ a; 9SmESt, .
tiimmnn Shairn
$22,426 ` --
--- `
Riiutml Ksmlnp.
$109,666
$ 127.994
--- ,
62.481
-- (20.468)
Vturrmj ' ' Tr*n4atk*i Ailjatnnit
$(4,162) . --' ''
, ToUl >1inMiln*
Rnto $233,724
62.483 (20.468)
DUtrilitiliira oTMnlusa (aiqMiratiiifi romnwn Murk________________________
' mmm
(131)
(131)
Km'IvIm* if ulorlk ujitiim*. I63.292 *>1iuiv
Omvrrxnm iifjltlirnlurr!*. Mfliliiirw____ Holrirlnl Murk awarilni. 32 1.296 4iarr. nrt
(l.llllll 161 53 .121
. (26.162) 2.261 278 7.431
43 -- --
(6.1.13)
=. '--
-- --
(27.170) 2.124
. 331 1.600
Rnlim|ilHini^immimiJMri'|iiiiT!iaM*ri^lili ............ . --_ ___
(738)
-- ' _______ --
(738)
Cummrv tran4utiiin ailjtiMmrtil
972
At I)rrrmbrr31. 1988
.
Nrtinmntr . ' - >' 1-!',
(ai>tiiliti<irn<I-;.
'.
'*
' ' . -
"
21318 ' ---
. ----
92.4.16 ' ' -- :, --
163.723 53.919 (22.731)
(3390) L . 274.627. ' sjM9fA
.'j-f.- (22.73l) i;
3014 MtiirkilUtHlratintul0jS63.607i.lMmi -
10.361
(10.161)
v'; ;
. ltrx|uMlfcm*if I<(tf335 litami KxrrrUrofMork>iilit>n.236.197 nfiarr* . ' (jimrrsiwi rilrlimtum*. 23.377 !tam . ' ItrMrirlnl Murk a*arilnl. 393.420 uliamt. nrt tairrrorv lran-!aliim ailjtislmrnl *
(1.269)
(31.027)
236. 2.910 . ' , '
23. . 112
.196 9.193 ,
-- ' ' --'
'
_ -- (2390) ' --'
. ; 1*. .
^':(32JM6^ ty \
. - _1 i "-r- 6X99$k
` (1313)
(1^55)?.;
At ltrrrmlirr 31. 1089
-
31308
63.260
191.021
(5.245)-
283344.5
Nrt inrtratr , ' ' - .
-- . -- 62.735
^raj35^:.
(4i*!iillt6!mil . Ilran|ui4litm f 1.010.062 *Iiam>
KxrrrUr fMurk i|>t|iraM. 383.7114iam.__ _J _ <ainm.im iifilrltmlnm*. 24.176 Milam. `
(1.010) 386 24
. (20.837) ' --1.607 72
(23.6W) `. -- ' '--
1 --'< ' '' -- ' " ; *-
' K:
" (23.6<K)): (2IJB97) ;
3.993` 56 :
' ItrMrirlnl >t.irk awarilni 66390 iliams nrt
, ; 67
1.915
2.144
.`
4,156,;.
(rarmirv trandatiim ailinslmrnt ' At ltrrrmW.il. 1990
' -- '
---- '
$31,243
$ 48.027
' $235,210
7.169
7369-
$ 2.124
$316306 ;
Financial Review
Accounting Folirie*
.
Art Income PerShare--Primary earning* |ier nharr calculation*
Principles ofConsaSdation--The consolidated financial statements include all subsidiaries. All significant intercompany
arr based ujnm thr wrightnl averagr number ofronumm nharr* . outstamling uftrr givingeffert to dilutive stork option*. Fully
itrm* havr lirrn eliminated. Crrlain jirinr year amounts havr
diluted earning* |ter nharr given rffrrt to thr assumrd conversion
Ihto rrrlassifird In mnfnrni with Ihr 1990 presentation. Mrtlusa Caqmratian, whirh wan irpartrd a* a srgmmt hrld firilistrihution. wan distributed to shareholders on Ortobrr 7,1988.
ofnmvrrtiblr ilrlienturm ami thr rffrrt ofdilutive ntorl option*. All nharr inforamtion ha* Itern mljuntnl to reflrrt thr 30% ntork ' distribution in 1989. thr thrre-for-two stork split in 19S?aml the
Cash Equivalents--Highly liquid investment* with original
50% stork distribution in 1986.
- .
maturities of thrrr month* <r irs* arr ronsidmd to lie rash
Rprenurs--Rrvrnur* arr gmerally rrrordrd when litlr passe* to
equivalent*.
;.
thrrodnmrr. Rrvrnum on Inng-trrm runtrarls arr rrmjtnlird
/nrrnforirx--Inventories mv stuted at the Inwrr ofrust or niurkel
principally on thr last-in. first-nut (UFO) ntrlhiNl ofinventory
valuation. Thr rffrrt ofinventory quantity rrdurtiims won a
rrdurtinn in rml ofapproximately $1,300,000, $1,500,000ami
$600,000 in 1990.1989 ami 1988. mjirrtivrly. .
.
uiiilrr llir |H'm>iilugiMif*rmtipIflluii method ofamiuntlngund
are mrosuml prinripallv on rithrra ro*t-tireo*l or a unit of
delivery Imsin. These rnntrartn represent approximately 3% of
sale* in any one year. Arrountn rrerivaldr inrimle* unrrimlmrsrd '
eostn ami arrrunl profit* to Iir Itillnl of$18.979.000and . . :
$16,207,000 at Drremler31.1990 and 1989. rrsprrtivrly.
Property, Plant and Equipment--Drjirrriatiim wan pmvidrd
primarily liv thr straight-line mrthml ovrr thr mtimatril useful
livrsaftbrrrspcrtivraiwrt*..
. ' -- ; :
-
Pastretiremeni IteneJUs Other Thun Pension--The Finanrial J1'}; . : Arrounting Standard* Hoard ho* issued Statement of Financial'
Arrounting Standard* No. 106, "Kmployrr** Arrounting fur^iZ ,;~
fMaiqrihliwMWinrxI^oftirtannrtnaniuimlinlirittpV..;;'. , Rmlretirement Benefit* OllierThan lVttsioRn~.whiehwiQrn|tdirn^:
; immnind on a*traight4inr basisprincipally over forty year*. ' arrrualsofposlrrtirrrorol hedlhrarrandlifeinstiranrFtienHnb^^
Othrrintangjblcassrt*arrIiebtgamortizedonastraight-linr -V during thr yrarn an employee proshint nervipes.Thr'eompi^S;g:-V.^
, liasin over thrir estimated useful live* whirh ranpr frum fivr to ' rurrratly exjienses these lienefits on a rash hasiC The impart
twroty yrar*., . '
^ :' . ' thin stamlanl ha* not hern fully determined, hut thr rhangri*f^ '':';
Income Taxes--Thr |inivision fir inromr taxeswos, a* in thr . prior year*. drtrrminrd in amanlamrwith Arrounting IVinriplr* _ Boon) Ojiinion No. II. If thr rnnqiany hail chosen to adopt - '.'
rxjtrrtril to inrrrosr thr annual expense for iwtotimnentiSf?'-^' lirnrfitn. Thr company is eurrrntly assessing the impart ofSFAS/.;"106 and it* adoption whirh is mpiirrd by fiscal 1993;V -r-? v ^;v
StutFramlnf I'lnnnrlal Aminnting SlattilanTit N. 90 in 1990,v thr rhaiigr would nut havr Item mutrrial. United Stairn Inromr taxes havr not hrrn provided on umlislrilnitrdramingn offiavign nulmkliariro sinrr thrsr earning* will hr mpiiml fur imlrlinitr. ' investment ami any taxrn on iliviilrml* rxjirrtrd to lie paitl will 1m* oHio* by forrign lax credits. At Derrrabrr31,1990 ' !< - / umlintriliutnl foreign nulisiiliary earning* totalled $69,000,000. .
ArquMtlunsond Investment* .. .
In Frliruary 1990, thr company arquirrd l/mr Harare Carpi. a;\/~7manufartunrofpunqis for thr nrrosjmrr imlu*tryi fir$10ndIlioa.S; ' Thr eom]tany purrhosrd thr diaphragm |mmp fineofthr Crown\ . Pump Gimpany an an addition to Drming in Sr|itrmher 1990. .';-, ; ; ' ' In January 1989. Crane Uil. arquirrd the asset* ttfTlie Hratrx ' ' Croup, lad., a specialist in thr re|toirand refurbishment ofbrat!:;;
rxrhungrr*. Thr rompany arquirrd thr Barifir CMPrannrdi ;/:/:
motor pump prmlurt linr an an addition to Chrmpump in March
1989ami rrrtain assets of thr parts, rrsin and servire liusinessc; ,
of Brim Water uml Waste Treatment an an aililithm to Curhrane':.
in August PJlfl.
. ,
r rv.i
14
CRTX 0802
In Junr 1988. Until;; an|uirrtl tWrarr G. Lrwin Co.. Inr.. >nr ofthe larpmt imlrprndrnt wbolrnalr tlintrihuiorn ofImiMinp
Prndon*
' . . ' ' - . 'J
Thr rompany and it* nnhnidiarim harr prminn plan* whirh raw: -
produrtn and rrlatrd material* In tbr wrnlrrn 1'nitnl Slatm. for nalmtanlially all ofthrir rmployrrn anil nomrmplayrr ilinrtorn.
approximately 13.3 million. In addition. Iluttij; anjuiml two
Thr plann generally provide lienrfil pavmmln uning a formula
liMtriltuticm rrntrrn in California in February 1988. A rannnl
liannl on trngth ofnmirr and final axnapr rnmjirttMtion, rxrrpt _
pumpmarhininpand nrrvirrcompany won acquired a* an aitilition fir Mimrhouriy rmployrrn firwhom tbr hrnrfitnarr a lord .
toChrmpurapinJuly 1988.
amount prryrar ofnmirr. Thr rompany'n policy in to fund at '
Earh oftbrnr arquinition* wan aroiuutrd liy thr puirhnnr
Irani thr minimum amount trquiml by thr apjifiraldr '
method, and thr rrnulln ofojtcrationn fir rarh han lirrn inrludrd rrgulatimw. , - . ' '
'
in thr finanrial Malrmml* from Iht'ir rrqinllvr ilmro fpiirrhavt
In l'ifl7ilhrrtiiniiBnyai(ii|ilrilii|HlrmrnT(^nnBnriaI
I'm firm* flmmrlaUnfirmntlcmnioiunilnplhrmiiiiWllun of
Amumtlng Stamlardn No. 87. "Employer*' Arrmmting for . .. '
IWmrr G. Irwin had taken plan* an ofthr Itrpnninp of 1988 in
IVnuionn". firall P. S. prnnion plann. Thrrompany adopted .
provided hrluw. Thr rrtnaininp arquinitimw ilitl not havr a .
thin ntamlaril fir atl nignifirant foreign plattn in 1989. Prnnion
matrrial rffrrt on thr rrnulln ofojirrationn.
'
. firth*inrfaWfriwbr3/, '
' t ''
(wrtBiiMfirmylyribrrAw '__' ____________ITM
XHiar--"-.7"
"___
. **p?>linaiTnt ______ [____ ;_______ _'________ Ml
rnntn fir foreign plann in 1988 wirr drtrrminnl unilrr prnviniohn -
ofprmiminammntinpntanilariln. ' .
. .." `
lin ifcnWil ____ '
. / ' t'Aaml . Forripn Mann .
1990 . 1989
, tmotorfromrtiolinninsin>rralionn '_______ ;______
l&Mi , Smirrnmt--brnrfit* `
; Inromrp^4rrfnwrwilirininp>jirnitiim_
$'___ 1.13 . . ramnlitariRp
' _thrprriml_ ___.
. 8 7.901
TjttH ~
InvrrtmriaDintribirtrdtoShnieboldr^
f ,
' Intrirntrontan . ' iimjrrtnl hrnrfit
^ OnOrtnlxr?. 1988. thr rompany dintributnl to it* nharrhoHrr* __ iJiiSgtiwi
'
13.773
IWKfr ofit* rrmrnt ami apprrpatm nulnidiary. Mrthum Corpora-.'
f tion.on a lox-fnrr banin toboth thr rompany ami it*nliarrholdrrn. .
SiT lmrorilialriy prior to thr dinlribution. Mrduna |iaid a rjirrial rash
ilividmd to thr rompany of$81.3 million. Thintransartion mhitl;
lhriiim|ianyVhBirhidi!m'rt|tiiijili)ff131.fflW,
.
Arluillnmtpun)t>a ; __ |ilan*rl
Art amortization and I' deferral - ~
IVnoimrtiirnnr^ _
<21.510) 3.832
<2hgB) ^ - <6.063)g y. V<* V V.'
' 9J8iB^^V2jbai^:
.. -.4*138 5dl3^
|.v; An a nrpmul illnlrilmlnl hi nhutehnlilir*. (Ih> muillx of MiiliiwTn
ojKratkmii hair not hrm inriuilnl in tbr rontinulng ojirrationn.
'' Nrt nalni of Mrduna through thr dutrofthr dintrihution in 1988';
. . 'wirr $138.7 million. . / ' - ' - ' .
,;
IVndnn rot for ' ' forripiplanniiriir
toadi>|rtiiigSr'AS87
IVnnionnpmnrfnr romjwtiy njnmnorrd' . ' iimnion plann
8 3A52
4.138 $5,115
c CRTX 0803
Financial Review *<*
Thr fnllmrinj: tahlr art* forth by fumlrd Matu* thr amount* rrropiixnl in Ihr rtrni|iany* liatanrr nbrrt at IVrrmW 31. for rtimjiuny *|onuml prttrfon jilan*:
ih thmmmb)
1990 Otrrfnwlrd l'niliTfwnlrj|
Actuarial |rr>*ml vnlurufhrorfit nlifiatiam VrMrtJ
$123,177
$12298
Vnnnlni
'
' a213
308
Wnmiilulnl Iropfil uliliputiun F.ffirt of futon* (>v inrrrar
I'mjrrtnl Iwwfit obligation
Bali 161.162
l.ltllKi 261
13.670
A**rt* and book n-amrpnJatinpfOKmbbrorfit*: Fumtnlawt* at fair valor
.
|inni>iom>. mi -
'
173.323 6.012
179.333
10.163 2.931 13.116
A*t amt Imok rr>mrpralrr (ln) than
-'
Itmjrrtnl brnrfil oMijmtion* ' - ' ' '
.
$ 13.073
8 (2311 :
Om*MingT: -
..
ttmr>giiki-J nrt awri (liability) at <!alrTwloftlion
lr*wnrtiatl^--.
. '-*
I'nrrnipniwtnrt c*In'<towr>- - '
~*
--riant iwjurumkrrpii*
8 20.122 ~ (1,259)
: two>
$ 189% _ liBaojh
. nwnl mioimi to rrmgnwr minimum lialiitily
2.137
8 13.073
0 (231)
1989 . (hrrfnmird l:nilrrftitwlnj
$108,931 4.275
1 lilwIMi 33JW> 118273
$1,423 133
ilium 128
1.708
17V.7I3 8.971
188.687
679 901: 1280:
: 8 10.112
$ tl28)
$>l.531:^:g?$ (4l6r% f
$ 40.112
'738;/ 8 (I28P-;
Tbr awumrtl <ti*rount ratr. mjKxln! rrtum on a**rt* ami ratr
ofnim|irn<tnliim Irvrl innrnr for final |my |tfan* owl to ilclrr* mlnr llir |trn4oit r|N>itr ami fomlnl tutu* Infnrinallim ttrrr . 8.59f.9.39f aml6,:!39fr.mi>rrtiv*Iy.for ll.S. p!an*nml 8.39fr to 991.991 ami 6,2394 to 72%. rr*prrtivrly. for forripn plan*.;
' Thr company partiripatr* in M-vrral mutli-rmptoyrr |ini*ion
plan*. ttliii'li |irmiilt> Ih'iii'Hi* lo twlnin rmiiloytw tintlrr nilltv= thr liur^iuiuiiip ujuvrmi'iita. Total ruiilrlliullim* lit lltmr |itun -: *riv approximately $I.298.(HM) in 1990. $1277.000 in 1909 ami $1.183.000in 1988. . '
;ip :?
Cm*C*.ami
. At Drrrmbrr31.1990 all phut assets an* invested in listed .
Morlw and bond*. Thrsr investments ittrludr ramnxm Mark of
thr company whirh represents 394 ofplan assets.
The cost ofproviding bralth rrr and life insurance benefits ;
on a clsim* paid bast* forcrrtiin retired rmjdmmi wan approxi-
malrly *2,000,000, *1,900.000ami S2.000.000 in 1990.1989and
1988, respectively.
:-
MwrlUnfpq*---JSrt____
IWInnUI/lmArll ilnlhmnmH)_____________
Cato on disposal of capital assrts--net
Dividend inrogc _______
Cain oo sale ofmarketable
Foreign exchange painlloss)
. Othrr , .
83.428 449
____ ISO 43~
629 84.699
82.949 !3t
#1.101 --
83.384 #2.936
ArmirdliaUKUn*: .
Short-Trrtn Financing
'
At year-end there nrr availahle with dorarstir and fatrign banka
8188,000,000 in short-term rrrdit linen ofwhich 8161,000,000
werr unturd at that time.
-
Long-Term Financing
AtDfrrmbrr3Jf!*tkimi9mh)
CrinrCo,
'
Senior drbli
HetiiKlngrwlit farlllly due 19*41
8 13.700
Subordinated drbt: 794 Sinking fund debenture* due 1993 - ____7,612
794 Debenture* due 1994
44.781
' 594 Cnnvrrtihlrdrbrntnrr* due 1993 and 199*. ronvntiMr at 83.70and 84.26
Othrr, prinrijtally capital ' lease obligations
730
Total CraneCo.
67,817
Sulniiliarini: - .
91/294 Sinking fund drbrntnrrs
due 1999
.-
10.000
8 18.26?
8.432 44,781
1,780
*
Payroll and othrremployer related expenses-;-- :
" . '
Inwoncr V ' ~ - '
Sato aPowanrrn and otherrrlalrdcoiiU
, ?VrTttmi*
, Inttwl
i Taxesotherthan income - -
Ptotwadnindlcra
"
Envirmnarntal r
:
; Othrr"V ' '
-
; Rwmrt and Other liahib'tirs,
;,4<Onrmtrc3Iffrtn6>
-V. Insaranrc-' "
______
; Employer hrnrfits^
-
-Environmental-- - ~ :
Othrr- -' ` -' ~ ' "
822.901 14,192-
.6^27 5,827 3.300 3,062 2313 1,997 12,502
872.621
822,139 14.287 11.491
44114 1492 3,030. 22)96 2,600 12J822 877.271
1990 84,727
1989 84327
88325 . $9.266
Canada doc 1991-1996
- United Stairs due 1991' Industrial Rrrrnur Bonds. .
:. Other, principally capital ' Icaur obligation*
Tntal aiifialillarfra
12,068__________ - -----1,500 j 9,302-*. ' I3j079%:
8101.143 8119.102
The company had available 883,000,000ofunused long-term
rmlit agreement* at year-end. At Drrrmbrr31,1990. tbrprinripaL j
amounts oflong-term drit repayments, net ofamounts held in, .,
treasury, mpiired far thr mod fireyrars wrrr $10,544,000 in-
1991,8%852,000 in 1992,817,724,000in 1993.850319.000 m-
1994 and $4,644,000 in 1995.,
. - > ' ,
During 1985 thrcompany treated an irrevocable trust of
dim* llnitrd Stairs government obligations to satisfy tbrsrhrdulrd-
jaynirnt*ofprincipal and interrst on the810.606,000outstanding r
prinripal amount ofthrcompany's 61/294 Sinking Fund Drbra-;
tum due 1992 not held in the company's treasury. At Derember*.
31,1990 there was 83,990,000outstanding.
. . .. ;
CRTX 0805
Financial Review
..
In 1939 flip rompany mlrrrord at) ofits otn.tandinp 101/2% Subonlinalrd Sinking Fund IMimtumi !ur 1991 at (hr rrdrmp* tiim prirr of 100% ufthr prtnri|wl amount. Thr $22.8 million prinripal amount ofthr Drlirnlumi out.tamlinp wa rrfinanrrd
Rental rxprm>rfiraH operating traiir* wo* $20j083j000.' ..!
$2JUKand$I8.T69j0n0 fir 1990.1989and I988.m<prrthrly.
Tlirrout ofa*ri* rapitalizrtl undrr lease* i an fotluw* at - *
I)rrrmlirr31:
.
through thr rompany* molting rmlit agrrrmrnt at an intrmt
ratr uf9.13% ami i to lir rrpaid on thr namr nrhnlulr a* thr old
iiwur. $1->67.(HX)annually.
,.
Thr company** $100 million moltingrmlit agrrrmrnt.
whirh trrminatr* on Drrrmlirr 31.1992. lirarx intrmt on thr .
drlrt outstanding liasrd on thr Imdrr'* primr nr rrrtifiratr of
drjMnil ratr. or on tin* laimlon Inlrrliunk murkrl rule. Thr
Huittlinp* and imiirmrtnnds Maehinrrv and rrtniptnetrt
lew. arrtimulalrd ilrprrriitiun
1990 9 10.369
ans
19.014 13.926 9 il.llRH
1989 $ 12.518
8.413 20.963 13.780 $ 7.183
rmlit agrrrmrnt contain* various mtrnunt. thr moot mlrirthr
ofthrurmpiinr* a minimum Irtrlnflangililritrt worth. At
Drrrmlirr31.1990. tangildr nrl worth rxrmlrd thr m|uiml
Irtrl liy $114.182.000.
At Drrrmlirr 31.1990. thr aggrrgatr amount ofnutniiliary
earning* availaldr for ditidrnt!* was $192,983,000.
.
Thr mmjwny ha* established a self-insuranrr program Inrutnr .
rrrtain liability roKturwIudrd umlrr drdurtihlrrlausr* ofit* . V
various pulirir* in furrr. . - '
'
.-
At Drrrmlirr31.1990. thr mmpany hail n-rrivrd rrrtain =:
prn]Hird nolirr* ufadjustmrnt to frdrrnl inromr tat and wirni ^
intuited in various olhrr claim* and legal arliotw, inrludiiq;v://:.
Ointmftrarnt*midContliigrnrir''' ;
: . ... '
thnr ofan rntironmrntal nalurr. arising in thr ordinary course*;:
*; Thr rompany lra*r* rrrtain ofit* warrlmuw liuihting*. manuftH-- - nffiusinr**, In thr opinion ofmanaprmrrrt. thr uhiraatrdispaH^;::
: luring roriTttirn. vrhklr* andojuijicnmt umlrrraj*!*! and tijirrating.' iliim ufthnr mattrr* will mil have a matrrial athrrxrrffrrt imjtVj
Wfrt.t''... Irar* with various tmn*. <Vrtain lra*c* contain renewal nr - i ; thrrampant**finanrialnmlilitw.^ '.;':' ^^ |mrrha*roption*. Fulurr minimum |>ayinent*, liy yrar. and in thr".
' aggrrgatr. umlrr thruc lease* with initial or remaining tmn* of - Inromr Taw* -
V':r .'7-'7
. onr yrar or mnrr nmwtnl ofthr following at Drrrmlirr31.1990:. A rrronriiiation ofinromr hrfnrr taxr* to thr provision Furincome*;-
taunt (fwlrral. state and foreign) iit an follow*: ' `'-'
/ .* rfmlmrmmhf 'r:
iwi -
:
' . -. lanital Ihntatim: . SoWnw - ' ` ' ' l/<Dr . Imtt . Inrnmr . Vi .
. 91.181 *12,311 $127 $1.1.383: ;
iNfJWuUKjaJ
''
Inromr |(rfnrr tarn; |lun>11r ,
. 1990 :
$ 86.116
1989> ' 1988.V -. $68.IW . MMraS-.
lvti ' `' . 1.1*81 llij.Vt
i*m luifc/
Fnrrfcn ' : 16372 `
23.110
21.137^-
1993 - - .
' .671- 7Ji79
109 8.111
102.488
91^79 - ME
i99i '
~ - . 313 6^33 ' 4 6.762 " Statutnrt fnlrral tat at 3!% 31316
31.137 .. 27.707i;;-;:,
1993'. Thrrraflrr'
392 ' 2.609
4.112 14^82
3 4JJ0I -- 16JF/I
Inrrraw (mlartiun) from: -' Fonianantllnrallatni'
4377
- - ZiSlB , 3,736 -
.Total minimum- . .. . I jra'T |atmrtit ` _ -j'
7.161 $33.<I93 $741 $61-316
(iowlaill '' ' . ' ^iuihtataUr FSfi inromr
722 388 ; ' 363
(1,061) . (798)
(568):
Intrmt .
' . - lJBfe5
Other
869
883'
1,016.
IVnrnttalnr
" ` $5^99*
I'nivitinn for inmmr tu\r S 39.753
$ 33.660 $32304.;
; Thr wri^itrd atrrnpr intmut ralr for rapitul Iram in 7.2%.
IVrrrntup1 ofinromr Irfinrtatni
38.8%
38.9%
39.6%
' r
>' . V . ' .t
:
'Y'/
r'
7* */,.'
.'.'IK
.
' , t .. \ ." -V -- -
" ' I--*-'.
/'v.'v t'.* ' -- * i N
. T .
; ; .
j! ^ ., .>. :
.V": -y?:
` -*
\
",
> ,1' .* - v*'*
'*v
. 1.v,. ;^ ...
'*Y ; ' ! T*.
. . * ">. . '
. -
`.7
.. * r
* - **
^ *' - _ *' /*" ' *
- . '
- ; - rl.t
)'V .
'".S'..'
;7 *-V
IB. CRTX 0806
, ' ... . Qri -!*> ifciti 2-
Thr fiingoing provision inrlmlr* rhargr* for foreign taxes
of $7,497,000. $9,380,000 ami $9,188,000 am) statr taxes of
$.>.701.000. $1.482.(NN) ami $1,147,000 in 1990.1989 ami 1988.
rr*|Mflivrk. `
"
The provision fia* inrnme taxr* in mm|M*rd of thr following:
company awarded 63.000shares in 1990. amt. as ofDrrrmbrr3l,Vr199(1321.236slwmanr available fur futureawards. Compensation expense isdrtrrminrd Imsrd on thr markrt value at Ihr timr of '' award and is normally amortized over thr five yrar mtrirtion ` (irriml. The 1988 and 1989awards pruvidrd for early vesting: if .
ihiUwti ____ "______1990 1989 1988 the mm|mny*s stork prire inrrraanl 30% front its tnarkrl value : - '
iwTrt^lmwnrlaxw" " $ 2,023
&7%" $ 1.993
Oirmil_irmmrla\r_______37j420_____3Wy___21J^I
$ 39.753
$ 3.1.660 $ 33.341
Tlte rmii|Hmi>nt oftfi>r**rn*il inrumi' lu\ <\|m<iii< arc a* fnllimst
ifdlWMCklu
'
I99tl
1989 I'8t8
on thedatroftheoriginal award. Due to thrfavnrahlr prrficnunre
ofthe mm|ianv*s stork prirr. mtrirlions on Ihr previously .
unvested portion of 1988and 1989 awards lapsed in 1989 and
1990. irsprrlivrly. mulling in a non-rashmjtmsrwhirb mimed
opiTHiinp profit liy $1.1 millinn or S.IHl prr share in |9fW ami..
$3.1 million or $.06 per slum* in 1990.
.:
lv\rritdi*firil) ' . tax itriurrialicio - "
Immlnry rapilalization _
Itrsrnrs
$ (273) (338) 812
. $1.318 $ 1.690
. <').... (862)
1.075
(371)
Prrfrrrnl Sharrs Purchase Riglits
.
.
In July 1988. thr mm|>any ilistrilmtrd onr prrfrrrnl share : * v -
purrhasr right for rarh outstanding share ofromreon stork.The-/-,;
prrfrrrnl rights were not rxrrrisalilr whrn granted and may 44 '
Other
14(22
1A7I
1.739 only lirrome rxrrrisalilr umlrr certain rirrumstames inmlrit^:^': !
$ 2.023
$3,796 $ 1.993 artual or potential an|uisittons ofthe company's roroaun stork:.-%r--;: -
liy a {irrson irafniiatnl {irrsons. Urprmlingnpaa^^theimeitin^^y
l'i Bcscarrhand Drvrlnptncrd / 'ivisi*,-?';!? i-\. /*.'
.. stanres. ifthe rights limimrrxmisaldr. the bolder may
tj'U IVimIoH development ami rnginrrringriist* aggregated epproxi- ; rntitlnl to |Hirrhase shares of thr eompanys Series AJoniw^^p ; p matrix $17,000,000. $11,100,000 ami $12,00048)0 in 1990.1989: lAirtiripating Preferred Stork.or;*haresofeonnnoniitorlidril^^J;
U ami 1988, mjirrtively. In addition. approximately $7,000,000.
unpiiring |s'rson. IVrferrrd shares puirhasalde nptm exerrisef :
fi$1,100,000ami $7J>()i).IHM) was rrrrivrd in 1990.1989ami 1988. . ofthr right* will not lie rrdrrtnaldri Rarh prrfrrrnl sharewilljsfjp
y.v ' rr*)>rrtivrk. for customer sjumsiwril mrarrband development lie entitlcil In preferential right* regarding dividend and Bffidliefciv; rrlaliiig to projert* within Knpnrrrrd Industrial PriNlurt*. ; - tinn payment, voting jsiwer. anil, in the evrat ofany iwvignv^t;Wo'? ronsoliilatkm or other transaction in whirh rornmon sham are':B'-l>. '
|;; S'iwMlplHmflmlSlorltAwnnlllBni*
' ..-. . rvrhnnp'il. prefeimtiHl nrhnngr rate. Hip rights will imuin in p \
14. A summary ofMml iiptlmi truusuilinns fnllnwst ,v ' ; . exlstenee until June27.1998, unless iltey areearlier leratnatfdfpp
&ri[ c
; ; ..-. -.' . KumWnf ' exercised or rrdrrmrd. The rom|iany ha* authorized live nnUioni'v ... -y,:! Sharrs sham of$.01 par valur prrferml stork.
P Outstanding January 1.1990' : :
tllrtiotHCrantnl-- ~ . ; __,_'
'V Options eviiinrd V ' ,* - ;
. ttplkmsexrrrised -
'
OjU*UndingIlrmnW3l^99j^\^^
' ' 1.398.933
____
-' ""'_____(33^29)
' (385.711)
Analysis by Segment of Business . /
" `;
The company ojierates prinrijially in two imlustrirs, Enpurirfd
Industrial Pmilurts anil Whidesalr DistrUiutioo. Operations in tbrv'- ; `;
Knpnreml Industrial Pnxlurls segrornl involve thr pmlurtion;: '
and saleofvarious engineered produrt* inrluding valves, spmalty'cf -
|nun]is,anteskiil imikingnmlnd systems firtbrarrosparrindustryiV'.v
.. At Drrrtnbrr3l, 1990, opium* fir718808*humwrrr
a variety ofpnslurls and riiuipmmt with defense appfiration*y/ .' .
rxrrrisalilranti 20658 sham were available fur grant. IVr share . ehrtronir vending marhinrsand coin handler* and fiberglassryy?? y.
. option prirrsrangrd from $6.56 to $22.32. In 1989, options for 2^197 sham wrreexrrrisrd. The plan is not a compensatory
rrinforml panels. Ogierations in the Whidrsale IKstrihutiaosegmrtit fc ; . . invokethe distribution ofmillwark,windows,doorsand rrfaied y-
planwhirliwouldrrqnireaehaigetoinrorae.V . p-... products, plumbingsuppKr*, valve* and Rung, actuatedvahnw^ij^fi.
The ronqianyAimtrictrJitodt award planprovolnifors--. , ''and Cowcontrol *y*tem*.x'.
l award*ofrommoustock to key officer*and employm, subject; .An analyid!iofgale*,4irratit^profit,assrt8,oqitalexpm&ana^yj.
tornilemtrictkw*.Thernrmitrrtrktk)non outstanding > ^4ifiwiwifeCTi^wwnrtfattBin<i|i|inwiiqipiygaiigi^^^g^f
award* air whrduhxl to hpxr in part. ovrrafivp year period > '
Management% ReeponalblttUes tor Financial Reporting
The acrompanyingrtmxolidatrd (inaneul statnnrnt* ofCrawCo. and subsidiaries have been prepared by management in confor
mity with generally accepted arrounting principle* anil, in thr
judgment ofmanagement. prrsent fairly and consistently thr company'* finanrial position and rrsulu ofoperation*. Thrsr.
statrmrnu by nrrrssity inrlndr amounts that arr based on management'* best estimatr* andjudgment* and givedur considerationto materiality.
The arrounting systems and internal accountingcontrol* of
thr rmnpany arr drsipnrd In provide rrammahlr a**uranrr that thr financial rrruril* arr reliable fur |irrjmrlnjtnmmilldutrd
finanrial statrmrnt* ami maintaining ammntuliility for o*rti and that, in all material rrsperU. asset* arr safeguarded again*! limn from unauthorized u*r or disposition. Qualified |>rr*nnnrl
throughout thr organization maintain and monitor thrar internal accountingrontrol* oo an ongoingliasi*. In addition.thrrom]>any'*
internal audit department ayatnnatirally rrvirw* thr adrquacy ami rffrrtivrors* ofthr control* anil report* thrrron.
. Thr ronsolhlatrd finanrial statement* have brrn audited by - Drloiltr & Tourhr. independent rrrtifird puhlir arrountanU.
whose report appear* on this pagr. ' .
`
Thr Audit Committer oftbr Board of Dim-ion, composed *o!rIy ofoutsidedirrrton, mrct* periodicaDy with managrmrnt and with thr company** internal auditor* and independent auditor* to rrvirw matter* rrlating to thr quality offinancial reportingand internal arrounting rontrol and thr naturr, rxlrat' and mtduofthrir audit*. Thr company** internal auditor* and independent auditor* have frrr arm* to tbr Audit Committer.
R. S. Evan* Chairman, Chief Exeruthr Offirer and I'rrsidrnt
*J.P.Cronin .
A
Vire President--Finanre and Chirf Finanrial Officer^
t f,-y` \
-^
v ft-
----
:-T-
v IndependentAuditors'Report :
Delaltle&ri.: ' Iwcftet.
; -'v
r . v,
^
' '
'-
- To the Shareholder* ofCrane Co.: .
' /' . ,
> : Wrhave auditedthe arimnpanyingconsolidated balanre sheet* ofCrane Co. and its subsidiaries ns ofDecember31,1990 and
pj[, 1989, and thr rrlatrd comwlidatrd atatrmrnU ofinromr,
' changes in common shareholder*'equity and rash (low* for each
ofthr thrrr year*in thr period mdrd Drrrmbrr3I,1990. These
finanrial statements an the responsibility ofthe Company's
management. Onirresponsibility is toempress an opinion on7-;'
these finanrial statemente based on ouraudits: ^ 7: .. ,>
the amount* and disclosures in thr finanrial statements, An mvH audit also inrludrs assessing thr arrounting prinriplrs used andi'i'c signifirant estimates madr by managrmrnt, as well as evaluating;. }rthe overall financial statement presentation. We believe that our;.. -. audiU provide a reasonable basis for eraropinion.7- jr'
- In ouropinion, surhronsolidatrd finanrial statrmmupnrsrat^i '
fairfy. in all material mprrts. thr financial position ofCranrCo;;|v and iU subsidiaries at Drrrmbrr31,1990and 1989, and the-f result* ofthrir operation* and thrir rash flows for each ofthe? t;' thrrr year* in the |irrind ended Dccrrabrr31,1990 in conformity .: ; with genrrally accepted accouuting prinriple*.;'. ' .V,'
r: JozicJLjl.
, accepted auditingstandard*; Those standards rrquire that we:; : New York, New York plan and perforintheaudit toohlaln reasonable Bwuranrr alniui .v: January SB, 1991- ' whether thefinindal sUtemmU are frreofmitrrisl mlsst*trmrnU.;
An audit indudes examining, on a teat basis,ewdennsupporting
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 $137.4miUkm in ,
1988, whkhinchided a special $81.3 million dividend from Medusa -
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 Enpnrrrrd
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% poxHItm in Milton Hoy for a|i]imxinmtely $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 flnanrtal condition.
Net debt totalln! only 45% ofequity at thread ofI990
comparrd to 53% in 1989ami 64% in 1988. The current ratio
at thr red of 1990 remained unchanged 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 tnillinn ofunused credit fine* and $85 million of. rf uvaikhVfinimcingutatrrhmg-tmDrmli! agreements to ; : - '
|pnidr,mfliricfltfinamia] flexibility.
:
Ifinterest rates decline in 1991, the rompany plan* to-
.
evaluate various financingalternatives to reduce its reliance on .
variable rate debt ami provide for its future long-term debt
refinancing needs.
.. .
During theyear thrcmtqiany purchased approximately 1 miTtinn
shares ofits common stock fur $21.9 million.
.'
The rompany is currently assessing the impact ofStatement
ofFinancial Accounting Standards IVo. 106, "Employers' -
Accounting for PoMrrlirrmrol Benefits Other than Pensions,''*
whirh will require areruals of(Htsireliremenl health rare and
life Insurance lienefits during thr years an employee provides
servirrs. Thr rompany currently expenses these benefits on a .
cash basis. The impartofthis standard has not been fully .
determined, but thechange is expected to inerease the annual V
expense for postretiremen! benefits.
- .
Results of Operations--LastThreeYears
-i",
Results are explained in detail in the Management'* DisrusuoB^;:'..
and Analysis ofOperations, page* 4 through 9; v
.if;
CRTX 0809
Inlmrtannal Salrn -
Ojtmting Profit: > ImlurtrySrpmrntic,
.
jK^nrr^J^urtriollVoiIurti*
Wlmlmije Diulriliutiim
1,459,147 (20,899)
*1,438.218
100 ,
1,479.018 100
1331.209 100
(23.459)
. U8.073) ' :
$ 1.15.5jaw
*1.313.136
* 103,923 _ ' 80 _$ 90.700
......................
20
74 > # a3M
, . (mipjajihir Itepion: . ~ Unitrl Slain*- -
(lanaijaj_____'
Ollier liilenmlimtul
,, ;
CtrtMiralP
'
_ AwwUj; ImlutOry Srpnrnta: ->v KnRinfrmlIndustrial IVodurtj*
Whn!r*alr Distribution'
.
'.
' -
-- ': Gpogrojihir Hrgion:>_ : United Statwj.'- " -
/V,:, Caaadafe'iV.v/.'- . * ,
Oibrr International
. -'
* 113.311
* 108,100 83 ' 1 7,575' ____ 6
IWtt" 11
130.620 100 (17,309)" S 113,311
* 105.015
* 93.666i .-v
$ 922572 76 ^ ` * V 82^36MS:
___ 122.441: (17399)'
$ 105.015
____ HW.9?Si 1(10 * 95.666
; * 426,459 67 211,277 33 637,736 100 27,075
8 601,811
^ *461337 85366
73 13
$ 378,779 . 235,933 614,732 394125
$ 651357
62 ' '/ * 388.978^''/ 62 38 240.136 38 100 629.114 100;
52.626
681.740
S 412347 96245
72 * 461,911 16 86,670
CRTX 0810
Analysis by Segmentt***-*
CwC.al.'IMMni :
'.
Capital Expenditure*
1990
1989
1988
Drprrrlation and Amortization .
1990
1989
1988
. Industry Segment*: Enjdnrmril Industrial Produr-t*
- \3Tndrsalr Distribution
i? Conxiratr
820,683 4,454 269
818.673 4.125 10291
811.825 5.767 273
821,848 " 4,946
3,308
823.652 5531 4.416
821,707 4250 1244
825.408 $33,189 $17265 830.102 833.(29 827201
Gropraphir Hrpun:
l>nitnl Sintra
913,626
''.jUumk........ J.................... .................:_.'Jft.745
$ 26.120 $IM79 823,383
32253.00?______ 3,022
,
$27,889 821,608
,,,, .2,195 _____2,I63
Other International
________3,037_______ 3.2lt_______ 3.379______ 3.697_______ 3JI,i______ 3230
Five YearSummary of Selected Financial Data
VrnnitnjnlItnmbrr3l ' "
.
flu tftixwimf, rrrrpf n/mrrdfinu
,
ISrlSnlmV" .
-
IVltrrriatiiin and Amortization '
'
Operating Profit
" Intrrrst Expense -' - '
Income before Taxes--Continuing Operation*
' '
'
Provision for Inromr Taxes ' : ' "
'`
Inromr--Continuing Operations
'
"
Inromr Prr Common Share--^Continuing Operation)*
-* Primary:' ' '
______
Fully IHluird lllyWrniltllcs'larrtlPerComraonShare
Awl*
. : ' - -
1990
1989. .
1988.
1987
1986^-
81.1311,218 81.155289 81213.136 $1,099,596 $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 8 55,919 8 49.186 8 32.704* 8 28285 T:
81.96
$1.72
81.46
8.97*
8.94
1.94
1.69
.91* .87
S.7S0D
8.7083J
8.6167
' $.5833 - ~ $2200;
8 661.811 8 651257 8 681,710 - 8 634.767 8 612.
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 $383,938 $376,330 $317,172 $1,455,589
69.529
79.233
76.215
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 O fficers
. "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 1.
.
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 Excclttive 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[>cnitor,
. 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
\
' 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 '
Trlephone: (212) 415-7300 ' *
Form '10-K _ .
Copids of Form 10-K for 1990 as filed .
witbthe Securities and Exrhangd
Commlulon are 4valla(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. onMonday, 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
`
Registry of Stock
',
' First Chicago Trust Company of New York
30 West Broadway ' '
New York, NY 10007
]
\
Bond Trustee* and Disbursing Agents^
Citibank, N.A..
' ~ ' ~r "
New'York, NY 10015 - '
'. 'L* -
Bank of America National " Trust and Savings Association.' Los Angeles, CA 900^4 -* .
' ' .
.`
*' .
Auditors' . .
* e'U
, ''
. - Deloitte & Touche ' 1633 Broadway
... New York,-NY 10019
ft.
/ Member ofthe Executive Committee '* Member ofthe Audit Committee :i Member ofthe Organization and
Compensation Committee
<"Vs
- * ` '
* Equal Employment
Opportunity Policy
-
..
Crane Co. is an eqhaf^pportunity ,
employer. It js the poliaj' of the ' w
Company to recruit, hu-e, promote
and fransfer to all johjslassificptiriqs `
without regard to race, color, religion,
sex, age or national origin'.' .
`
CRTX 0813
Crane Co*
757 Third Avenue. Nrw York, New York 10017