Crane shares surge after strong 3Q, outlook lifted

NEW YORK (AP) — Shares of Crane Co. surged to a 52-week high Tuesday after the maker of engineered products beat Wall Street expectations for the third quarter on cost savings. The company also improved its earnings forecast for the year.

After the market closed Monday, the company reported third-quarter profit of $35.1 million, or 60 cents per share, compared with $36.1 million, or 60 cents per share, in the year-earlier period.

Analysts projected income of 48 per share, according to a Thomson Reuters poll.

Sales fell to $550.7 million from $642.7 million. They beat analyst expectations of $542.2 million.

Crane credited cost savings with the strong performance.

"In July, we estimated our cost savings would be in excess of $125 million," CEO Eric C. Fast said. "We now expect that our cost savings for 2009 will exceed $150 million."

As a result, Crane increased the lower end of its 2009 earnings-per-share guidance. The company now predicts earnings per share of $1.90 to $2.05, compared with a previous range of $1.75 to $2.05.

Shares surged $4.39, or 16.6 percent, to $30.87 in midday trading. They earlier traded as high as $31.08, eclipsing a previous 52-week high of $27.90 set Monday.