Crane NXT, Co. Reports Strong First Quarter 2023 Results and Raises Full-Year Outlook
May 11, 2023 at 04:17 pm IST
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WALTHAM, Mass. - Crane NXT, Co. (NYSE: CXT) ('Crane NXT' or the 'Company'), a premier industrial technology company announced its stand-alone financial results for the first quarter of 2023.
On April 3, 2023, Crane Holdings, Co. completed the separation of its wholly-owned subsidiary at that time, Crane Company, in a tax-free distribution of Crane Company shares to Crane Holdings, Co. stockholders, and changed its name to Crane NXT, Co. Historical financial measures in this release for Crane NXT are presented on a carve-out basis; consolidated results of Crane Holdings, Co. as of March 31, 2023 and December 31, 2022 and for the three months ended March 31, 2023 and 2022 are included as an appendix to this release.
Aaron W. Saak, Crane NXT's President and Chief Executive Officer stated: 'Following our successful separation transaction last month, Crane NXT is off to a great start as an independent company based on our strong first quarter results. Our performance is indicative of our position as a premier industrial technology company with differentiated technology and leading market positions focused on providing trusted technology solutions to secure, detect, and authenticate our customers' most valued assets. Our businesses' strength is paired with a solid and flexible balance sheet, as well as a talented team that is energized and excited about the opportunities that lie ahead of us.'
Mr. Saak continued: 'Our first quarter revenue and operating profit was stronger than anticipated, with 10% core sales growth at Crane Payment Innovations accompanied by significant margin expansion driven by our focus on continuous improvement through deployment of the Crane Business System (CBS). Crane Currency's results were in line with our forecast and guidance, driven by timing of shipments through the balance of 2023. The strong orders and backlog growth in Crane Currency in the quarter supports our expectations of accelerating sales and margin expansion as the year progresses. As a result of our strong first quarter results, we are raising the midpoint of our adjusted EPS guidance range by $0.10 to a range of $3.75-$4.05.'
About Crane NXT, Co.
Crane NXT is a premier industrial technology company that provides trusted technology solutions to secure, detect, and authenticate what matters most to its customers. Crane NXT is a pioneer in advanced micro-optics technology for securing physical products, and its sophisticated electronic equipment and associated software leverages proprietary core capabilities with detection and sensing technologies. Crane NXT has approximately 4,000 employees with global operations and manufacturing facilities in the United States, the United Kingdom, Mexico, Japan, Switzerland, Germany, Sweden, and Malta. For more information, visit www.cranenxt.com.
Forward-Looking Statements Disclaimer
This press release contains forward-looking statements within the meaning of the federal securities laws. Forward-looking statements include all statements that are not historical statements of fact and those regarding the Company's intent, belief, or expectations, including, but not limited to: statements regarding Crane NXT's portfolio composition and its relationship with Crane Company following the business separation; benefits and synergies of the separation transaction; strategic and competitive advantages of Crane NXT; future financing plans and opportunities; and business strategies, prospects and projected operating and financial results. The Company cautions investors not to place undue reliance on any such forward-looking statements.
Words such as 'anticipate(s),' 'expect(s),' 'intend(s),' 'believe(s),' 'plan(s),' 'may,' 'will,' 'would,' 'could,' 'should,' 'seek(s),' and similar expressions, or the negative of these terms, are intended to identify such forward-looking statements. These statements are based on management's current expectations and beliefs and are subject to a number of risks and uncertainties that could lead to actual results differing materially from those projected, forecasted or expected. Although the Company believes that the assumptions underlying the forward-looking statements are reasonable, it can give no assurance that its expectations will be attained.
Risks and uncertainties that could cause actual results to differ materially from the Company's expectations include, but are not limited to: changes in global economic conditions (including inflationary pressures) and geopolitical risks, including macroeconomic fluctuations that may harm its business, results of operation and stock price; the continuing effects from the COVID-19 pandemic on its business and the global and U.S. economies generally; information systems and technology networks failures and breaches in data security, theft of personally identifiable and other information, non-compliance with its contractual or other legal obligations regarding such information; its ability to source components and raw materials from suppliers, including disruptions and delays in its supply chain; demand for its products, which is variable and subject to factors beyond its control; governmental regulations and failure to comply with those regulations; fluctuations in the prices of its components and raw materials; loss of personnel or being able to hire and retain additional personnel needed to sustain and grow its business as planned; risks from environmental liabilities, costs, litigation and violations that could adversely affect its financial condition, results of operations, cash flows and reputation; risks associated with conducting a substantial portion of its business outside the U.S.; being unable to identify or complete acquisitions, or to successfully integrate the businesses the Company acquires, or complete dispositions; adverse impacts from intangible asset impairment charges; potential product liability or warranty claims; being unable to successfully develop and introduce new products, which would limit its ability to grow and maintain its competitive position and adversely affect its financial condition, results of operations and cash flow; significant competition in the Company's markets; additional tax expenses or exposures that could affect its financial condition, results of operations and cash flows; inadequate or ineffective internal controls; specific risks relating to the Company's reportable segments, including Crane Payment Innovations and Crane Currency; the ability and willingness of Crane NXT and Crane Company to meet and/or perform their obligations under any contractual arrangements that are entered into among the parties in connection with the separation transaction and any of their obligations to indemnify, defend and hold the other party harmless from and against various claims, litigation and liabilities; and the ability to achieve some or all the benefits that the Company expects to achieve from the separation transaction.
Crane NXT, Co. is an industrial technology company that provides technology solutions to secure, detect, and authenticate what matters most to its customers. The Company operates through two segments: Crane Payment Innovations (CPI) and Security and Authentication Technologies. The CPI segment provides electronic equipment and associated software leveraging extensive and proprietary core capabilities with various detection and sensing technologies for applications, including verification and authentication of payment transactions. The Security and Authentication Technologies segment provides advanced security solutions based on proprietary technology for securing physical products, including banknotes, consumer goods and industrial products. The Security and Authentication Technologies segment also provides brand protection and authentication solutions. The Company operates in the United States, the United Kingdom, Mexico, Japan, Germany, Sweden, and Malta.
CRANE NXT, CO. 
