Casino cash payment technology provider Crane posts $105 million in first-quarter profit
Crane Co, a provider of products and services to industries such as cash handling in the casino industry, posted a net profit of $105.0 million in the first quarter. That profit fell 3.1% year-on-year but rose 45.6% sequentially, according to a press release on Monday.
First-quarter net sales were US$801.1 million, compared to US$779.6 million a year earlier. The company said the sales increase “comprised a $36 million, or 5%, increase in base sales, partially offset by a $14 million, or 2%, impact from foreign exchange. unfavorable”.
First quarter 2022 operating profit was $133.6 million, compared to $140.0 million in the first quarter of 2021. Operating profit margin was 16.7%, compared to 18.0% over the prior year period, the decline “primarily due to a gain”. on the sale of real estate in 2021 without a similar gain in 2022, coupled with higher transaction costs in 2022.”
The company on Monday announced a regular quarterly dividend of US$0.47 per share for the second quarter of 2022. The dividend is payable June 8 to shareholders of record at the close of business May 31.
In payments and merchandising technologies, including casino operator services, Crane saw net sales fall 1.5% year-on-year to $332.6 million in the first quarter. Segment operating profit decreased 2.3% from a year earlier to $84.2 million.
Max Mitchell, Group Chairman and Chief Executive, noted in prepared remarks released with the results on Monday: “The results for this quarter are another example of how we have positioned our business to drive growth, with a strong growth in sales and base orders supporting our 15 percent increase in adjusted earnings per share.
The company also announced on Monday an agreement to sell Crane Supply, the group’s Canada-based distribution business, for C$380 million ($298.4 million).
The group is involved in payment and merchandising technologies; aerospace and electronics; and engineered materials and fluid handling services.
Crane previously announced the sale for $360 million of its engineering materials business to Mexican company Grupo Verzatec SA de CV. But the United States Department of Justice has filed a complaint which is currently blocking the sale, due to antitrust concerns.
In March, Crane announced a plan to split into two independent, publicly traded companies. The plan would see Crane Co cover the aerospace and electronics segment, as well as the process flow technology sector; while the payments and merchandising technology business would transform into Crane NXT.
In Monday’s statement, Mr. Mitchell said: “As we move forward, shareholders will see how, post separation, Crane NXT and Crane Co will be positioned to further accelerate core growth and create value through their independently optimized capital allocation strategies. .”