US-based technologies firm Crane Co has reported a 30% decline in operating profit to US$370 million in 2022, despite group-wide net sales remaining largely flat year-on-year at US$3.8 billion.
The reduced profit and lower profit margin were primarily attributed to the August divesture of a legacy subsidiary which indemnified the company against “asbestos liabilities”, Crane said in a Tuesday release, noting that adjusted profit for the year was in fact 13% higher than in 2021 at US$597 million.
It also pointed to a strong finish to 2022 with 4Q22 operating profit up 39% year-on-year to US$129 million on sales of US$824 million. The Q4 result included an 8% increase in net sales in Crane’s Payment and Merchandising Technologies segment, which provides payment technology to the global gaming industry, to US$335 million with operating profit up 36% to US$82 million.
In Process Flow Technologies, which provides engineered products and systems such as valves, pumps, lined pipes, instrumentation and controls, sales fell 16% to US$252 million with operating profit down 10% to US$37 million, while in Aerospace & Electronics, sales grew by 15% to US$181 million with profit up 74% to US$36 million.
Crane President and CEO Max Mitchell said the results indicated strength across all platforms but warned of more challenging business conditions in 2023.
“Based on broader macroeconomic trends and general uncertainty, we are planning for somewhat constrained and mixed activity in 2023 paired with gradual supply chain relief throughout the year,” he explained.
“That said, we are confident that we are positioned to drive above-market growth in any potential environment, and we are prepared to respond quickly to capitalize on any demand above our current outlook.”