Crane Co.Reports First Quarter `09 Results

STAMFORD, Conn.--(Business Wire)--
Crane Co. (NYSE: CR), a diversified manufacturer of highly engineered industrial
products, reported first quarter 2009 net income of $23.3 million, or $0.40 per
diluted share, compared with first quarter 2008 net income of $48.4 million, or
$0.79 per diluted share. First quarter 2009 net income included an after-tax
charge of $5.0 million, or $0.09 per share, related to a legal settlement
separately announced today; excluding this charge, first quarter 2009 net income
would have been $28.1 million, or $0.48 per diluted share. (Please see non-GAAP
Financial Measures table for details.)

First quarter 2009 sales decreased $123.7 million, or 18%, including a core
business decline of $107.8 million (16%) and unfavorable foreign currency
translation of $49.3 million (7%), partially offset by an increase in sales from
acquired businesses of $33.3 million (5%).

Order backlog at March 31, 2009 was $724 million, or 7% lower than the December
31, 2008 backlog of $782 million.

Cash Flow and Financial Position

Cash provided by operating activities was $15.4 million in the first quarter of
2009, compared to $44.1 million in the first quarter of 2008, primarily
reflecting lower earnings in 2009. The Company`s cash position was $210.3
million at March 31, 2009, down from $231.8 million at December 31, 2008. Other
significant cash flow items for the first quarter of 2009 were: capital
expenditures ($10.0 million), dividends paid ($11.7 million), debt repayment
($9.3 million) and the unfavorable effect of exchange rates on cash and cash
equivalents ($7.0 million). (Please see the Condensed Statement of Cash Flows
and the Non-GAAP Financial Measures table.)

"While our sales and earnings declined significantly from our record first
quarter 2008 results, our earnings were in line with our expectations. Sales and
orders were lower than expected, as core sales declined 16% and orders declined
more sharply resulting in backlog decreasing 7% compared to year end 2008," said
Crane Co. president and chief executive officer, Eric C. Fast.

"The sales decline was most notable in our short-cycle businesses, particularly
Engineered Materials and Merchandising Systems, both which have been impacted by
very difficult end market conditions. While sales were lower than anticipated in
certain businesses, we are pleased with the impact of our cost reduction
efforts. We continue to pursue further opportunities to ensure our cost
structure is properly aligned to demand and expect to substantially exceed our
previously announced 2009 cost savings goal of $75 million. Excluding the two
acquisitions in 2008, headcount has been reduced by 1,600 people, or 13%, since
year end 2007, of which 700 occurred in the first quarter of this year. We
anticipate that our expanded cost reduction program will allow us to offset the
impact of lower than expected sales, and excluding the impact of the legal
settlement we are re-affirming earnings guidance. Our cash flow guidance remains
unchanged.

"With $210 million in cash, a $300 million revolving bank credit agreement, and
no near-term debt maturities, we have a strong liquidity position. This will
allow us to continue to fund targeted internal growth opportunities and make
selective acquisitions to strengthen our existing businesses."

Segment Results All comparisons detailed in this section refer to the first
quarter 2009 versus the first quarter 2008.

Aerospace & Electronics

First Quarter Change
(dollars in millions) 2009 2008
Sales $ 151.9 $ 158.5 ($6.5 ) (4 %)

Operating Profit $ 17.2 $ 16.0 $ 1.2 8 %

Profit Margin 11.3 % 10.1 %

The first quarter 2009 sales decrease of $6.5 million reflected a sales decrease
of $8.1 million in the Aerospace Group, primarily from a decline in OEM demand,
and an increase of $1.6 million in the Electronics Group. Segment operating
profit increased by $1.2 million as a result of higher profits in Electronics,
partially offset by reduced profitability in the Aerospace Group from the lower
sales.

The Aerospace & Electronics segment backlog was $396 million at March 31, 2009,
a 3% decrease compared to $407 million on March 31, 2008 and a decrease of 5%
from $418 million at December 31, 2008.

Engineered Materials

First Quarter Change
(dollars in millions) 2009 2008
Sales $ 38.2 $ 82.8 ($44.6 ) (54 %)

Operating Profit $ 1.5 $ 11.7 ($10.2 ) (87 %)

Operating Margin 3.9 % 14.1 %

Reflecting further weakening demand from recreational vehicle, transportation
and, to a lesser extent, building products end markets, segment sales were down
$44.6 million, or 54%. Operating income of $1.5 million reflected significantly
lower sales. As a result of declining demand during 2008, which continued in
2009, headcount has been reduced by 45% compared to year end 2007 levels and
other cost reduction initiatives are being implemented as part of the
Restructuring Program. The Grand Junction, TN, facility ceased manufacturing
operations at the end of March, and the Company has transferred this production
to other Crane facilities.

Merchandising Systems

First Quarter Change
(dollars in millions) 2009 2008
Sales $ 71.7 $ 113.5 ($41.8 ) (37 %)

Operating Profit $ 3.0 $ 14.1 ($11.2 ) (79 %)

Profit Margin 4.2 % 12.5 %

Total Merchandising Systems sales declined $41.8 million, or 37%, reflecting a
sharp decline in Vending sales and, to a lesser extent, a sales decline in the
Payment Solutions businesses. Operating profit and margins declined
significantly reflecting the deleverage on reduced sales. In response to lower
demand, Merchandising Systems headcount has been reduced approximately 21%
compared to year end 2007 levels. During the first quarter of 2009, the Company
announced that as part of its Restructuring Program it will consolidate its
vending machine production from St. Louis, Missouri into its Williston, South
Carolina facility during the fourth quarter.

Fluid Handling

First Quarter Change
(dollars in millions) 2009 2008
Sales $ 266.5 $ 288.5 ($22.0 ) (8 %)

Operating Profit $ 36.8 $ 44.8 ($8.0 ) (18 %)

Profit Margin 13.8 % 15.5 %

First quarter 2009 sales decreased $22.0 million, or 8%, including unfavorable
foreign currency translation of $39.9 million (14%) and a decline of $15.4
million (5%) of core sales,partially offset by sales from acquired businesses of
$33.3 million (11%). The core sales decline was broad-based and reflected
weakness in the short-cycle businesses, including the Building Services and
Utilities business in the UK, commercial valves in North America, and MRO
products for chemical and pharmaceutical businesses. Profit margins decreased to
13.8% from 15.5%, primarily reflecting the impact of unfavorable foreign
exchange associated with the Company`s European operations.

The Fluid Handling segment backlog was $276 million at March 31, 2009, a
decrease of 9% over $303 million at December 31, 2008.

Controls

First Quarter Change
(dollars in millions) 2009 2008
Sales $ 26.8 $ 35.6 ($8.8 ) (25 %)

Operating Profit $ 0.4 $ 1.3 ($0.9 ) (68 %)

Profit Margin 1.5 % 3.6 %

First quarter 2009 sales declined $8.8 million reflecting deterioration in the
oil & gas and transportation end markets. Operating profit decreased $0.9
million primarily reflecting the impact of lower sales in certain Controls
businesses.

Full Year 2009 Guidance

Excluding the impact of the legal settlement announced today of $0.09 per share,
the Company re-affirmed its 2009 earnings per share guidance of $2.10 - $2.40,
which includes the previously disclosed $0.15 per share for planned
restructuring and integration activities. Including the legal settlement, the
Company`s guidance is $2.01 to $2.31 per share. The Company noted there is
considerable uncertainty about the global economy and the timing and ultimate
impact of worldwide fiscal and monetary stimulus packages. Free cash flow
guidance remains unchanged and is expected to exceed the $146 million achieved
in 2008. (Please see Non-GAAP table)

Please see the Non-GAAP Financial Measures table attached to this press release
for details. Additional information with respect to the Company`s asbestos
liability and related accounting provisions and cash requirements is set forth
in the Current Report on Form 8-K filed with a copy of this press release.

Conference Call

Crane Co. has scheduled a conference call to discuss the first quarter`s
financial results on Tuesday, April 21, 2009 at 10:00 A.M. (Eastern). All
interested parties may listen to a live webcast of the call at
http://www.craneco.com. An archived webcast will also be available to replay
this conference call directly from the Company`s website.

Crane Co. is a diversified manufacturer of highly engineered industrial
products. Founded in 1855, Crane provides products and solutions to customers in
the aerospace, electronics, hydrocarbon processing, petrochemical, chemical,
power generation, automated merchandising, transportation and other markets. The
Company has five business segments: Aerospace & Electronics, Engineered
Materials, Merchandising Systems, Fluid Handling, and Controls. Crane has
approximately 11,000 employees in North America, South America, Europe, Asia and
Australia. Crane Co. is traded on the New York Stock Exchange (NYSE:CR). For
more information, visit www.craneco.com.

This press release may contain forward-looking statements as defined by the
Private Securities Litigation Reform Act of 1995.These statements present
management`s expectations, beliefs, plans and objectives regarding future
financial performance, and assumptions or judgments concerning such
performance.Any discussions contained in this press release, except to the
extent that they contain historical facts, are forward-looking and accordingly
involve estimates, assumptions, judgments and uncertainties.There are a number
of factors that could cause actual results or outcomes to differ materially from
those addressed in the forward-looking statements.Such factors are detailed in
the Company`s Annual Report on Form 10-K for the fiscal year ended December 31,
2008 and subsequent reports filed with the Securities and Exchange Commission.

(Financial Tables Follow)

2009 - 8

CRANE CO.
Income Statement Data
(in thousands, except per share data)

Three Months Ended
March 31,
2009 2008
Net Sales:
Aerospace & Electronics $ 151,947 $ 158,451
Engineered Materials 38,152 82,773
Merchandising Systems 71,694 113,504
Fluid Handling 266,497 288,500
Controls 26,849 35,640
Total Net Sales $ 555,139 $ 678,868

Operating Profit:
Aerospace & Electronics $ 17,233 $ 15,995
Engineered Materials 1,487 11,654
Merchandising Systems 2,980 14,138
Fluid Handling 36,767 44,762
Controls 414 1,300
Corporate (20,997 ) * (12,500 )
Total Operating Profit 37,884 75,349

Interest Income 843 2,284
Interest Expense (6,770 ) (6,505 )
Miscellaneous- Net 1,592 330
Income Before Income Taxes 33,549 71,458
Provision for Income Taxes 10,238 23,080
Net Income $ 23,311 $ 48,378

Share Data:
Net Income per Diluted Share $ 0.40 $ 0.79

Average Diluted Shares Outstanding 58,543 60,955
Average Basic Shares Outstanding 58,453 60,040

Supplemental Data:
Cost of Sales $ 382,010 $ 452,531
Selling, General & Administrative 135,245 150,988
Depreciation and Amortization ** 15,053 14,983
Stock-Based Compensation Expense 2,062 3,615

* Includes a charge of $7.75 million related to the settlement of a lawsuit brought against the Company by a customer
alleging failure of our fiberglass-reinforced plastic material.

** Amount included within cost of sales and selling, general & administrative costs.

CRANE CO.
Condensed Balance Sheets
(in thousands)

March 31, December 31,
2009 2008

ASSETS
Current Assets
Cash and Cash Equivalents $ 210,315 $ 231,840
Accounts Receivable, net 324,596 334,263
Current Insurance Receivable - Asbestos 35,300 41,300
Inventories, net 352,056 349,926
Other Current Assets 67,320 63,911
Total Current Assets 989,587 1,021,240

Property, Plant and Equipment, net 287,798 290,814
Long-Term Insurance Receivable - Asbestos 244,956 260,660
Other Assets 412,601 420,542
Goodwill 765,125 781,232

Total Assets $ 2,700,067 $ 2,774,488

LIABILITIES AND SHAREHOLDERS' EQUITY
Current Liabilities
Notes Payable and Current Maturities of Long-Term Debt $ 7,507 $ 16,622
Accounts Payable 156,917 182,147
Current Asbestos Liability 91,000 91,000
Accrued Liabilities 243,164 246,915
Income Taxes 228 1,980
Total Current Liabilities 498,816 538,664

Long-Term Debt 398,523 398,479
Long-Term Deferred Tax Liability 22,533 22,971
Long-Term Asbestos Liability 820,447 839,496
Other Liabilities 221,526 229,057

Shareholders' Equity 738,222 745,821

Total Liabilities and Shareholders' Equity $ 2,700,067 $ 2,774,488

CRANE CO.
Condensed Statements of Cash Flows
(in thousands)

Three Months Ended
March 31,
2009 2008
Operating Activities:
Net income $ 23,311 $ 48,378
Depreciation and amortization 15,053 14,983
Stock-based compensation expense 2,062 3,615
Deferred income taxes 8,694 6,097
Cash used for operating working capital (27,619 ) (29,834 )
Other (8,773 ) 2,951
Subtotal 12,728 46,190
Asbestos related payments, net of insurance recoveries 2,656 * (2,061 )
Total provided by operating activities 15,384 44,129

Investing Activities:
Capital expenditures (9,974 ) (9,080 )
Proceeds from disposition of capital assets 1,703 676
Payment for acquisition, net of cash acquired - (85 )
Proceeds from divestiture - 506
Total used for investing activities (8,271 ) (7,983 )

Financing Activities:
Dividends paid (11,688 ) (10,795 )
Reacquisition of shares on open market - (40,000 )
Stock options exercised - net of shares reacquired (637 ) 3,556
Excess tax benefit from stock-based compensation - 107
Change in short-term debt (9,316 ) 9,037
Total used for financing activities (21,641 ) (38,095 )

Effect of exchange rate on cash and cash equivalents (6,997 ) 13,307
(Decrease) increase in cash and cash equivalents (21,525 ) 11,358
Cash and cash equivalents at beginning of period 231,840 283,370
Cash and cash equivalents at end of period $ 210,315 $ 294,728

* Includes a $14.5 million insurance settlement receipt from the Highlands Insurance Company.

CRANE CO.
Order Backlog
(in thousands)

March 31, December 31, March 31,
2009 2008 2008

Aerospace & Electronics $ 396,393 $ 418,382 $ 407,398
Engineered Materials 6,924 6,942 15,941
Merchandising Systems 18,822 23,407 42,551
Fluid Handling* 275,660 302,653 268,302
Controls 26,667 30,509 34,464
Total Backlog $ 724,466 $ 781,893 $ 768,656

* Includes Order Backlog of $46.5 million in March 2009 and $57.0 million in December 2008 pertaining to 2008
acquisitions of Delta and Krombach.

CRANE CO.
Non-GAAP Financial Measures
(in thousands)

Three Months Ended Percent Change
March 31, March 31, 2009
2009 2008 Three Months
INCOME ITEMS

Net Sales $ 555,139 $ 678,868 -18.2 %

Operating Profit 37,884 75,349

Special Items impacting Operating Profit:
Lawsuit Settlement - Pre-Tax (a) 7,750 -

Restructuring Charges (Gains) (448 ) -

Operating Profit before Special Items $ 45,186 $ 75,349 -40.0 %

Percentage of Sales 8.1 % 11.1 %
2009 Full Year Guidance
Low High

Net Income $ 23,311 $ 48,378 $ 118,862 $ 136,562
Per Share $ 0.40 $ 0.79 $ 2.01 $ 2.31

Special Items impacting Net Income:

Lawsuit Settlement - Net of Tax (a) 5,038 - 5,038 5,038
Per Share $ 0.09 - $ 0.09 $ 0.09

Restructuring Charges (Gains) - Net of Tax (291 ) - 8,850 (b) 8,850 (b)
Per Share $ (0.00 ) - $ 0.15 $ 0.15

Net Income before Special Items $ 28,058 $ 48,378 -42.0 % $ 132,750 $ 150,450
Per Share $ 0.48 $ 0.79 $ 2.25 $ 2.55

(a) During the three months ended March 31, 2009, the Company recorded a charge for the settlement of a lawsuit brought against the Company by a customer alleging failure or our fiberglass-reinforced plastic material.

(b) Amounts represent $15 million of pre-tax restructuring charges ($8.85 million after-tax) in connection with the Restructuring Program and integration expenses related to the acquisition of Krombach.

March 31, December 31,
2009 2008

BALANCE SHEET ITEMS
Notes Payable and Current Maturities of Long-Term Debt $ 7,507 $ 16,622
Long-Term Debt 398,523 398,479
Total Debt 406,030 415,101
Less: Cash and Cash Equivalents (210,315 ) (231,840 )
Net Debt 195,715 183,261
Shareholders' Equity 738,222 745,821
Net Capitalization $ 933,937 $ 929,082
Percentage of Net Debt to Net Capitalization 21.0 % 19.7 %

Three Months Ended
March 31,
2009 2008

CASH FLOW ITEMS
Cash Provided from Operating Activities before Asbestos - Related Payments $ 12,728 $ 46,190
Asbestos Related Payments, Net of Insurance Recoveries 2,656 * (2,061 )
Cash Provided from Operating Activities 15,384 44,129
Less: Capital Expenditures (9,974 ) (9,080 )
Free Cash Flow $ 5,410 $ 35,049

* Includes a $14.5 million insurance settlement receipt from the Highlands Insurance Company.

Certain non-GAAP measures have been provided to facilitate comparison with the prior year.

The Company reports its financial results in accordance with U.S. generally accepted accounting principles (GAAP).
However, management believes that non-GAAP financial measures which exclude certain non-recurring items present
additional useful comparisons between current results and results in prior operating periods, providing investors with a
clearer view of the underlying trends of the business. Management also uses these non-GAAP financial measures in making
financial, operating, planning and compensation decisions and in evaluating the Company's performance. In addition, Free
Cash Flow provides supplemental information to assist management and investors in analyzing the Company`s ability to
generate positive cash flow. Non-GAAP financial measures, which may be inconsistent with similarly captioned measures
presented by other companies, should be viewed in addition to, and not as a substitute for, the Company`s reported
results prepared in accordance with GAAP.

Crane Co.
Richard E. Koch, 203-363-7352
Director, Investor Relations and Corporate Communications
www.craneco.com

Copyright Business Wire 2009