FLUID HANDLING BRAD ELLIS SENIOR VICE PRESIDENT.»

Transcription

1 FLUID HANDLING BRAD ELLIS SENIOR VICE PRESIDENT 1

2 Fluid Handling Overview and Results Market Outlook Driving Growth and Margins Summary 2

3 Fluid Handling ($ Millions) G Sales 1,264 1, ,043 1,085 Operating Profit* Operating Margin* 15.6% 12.4% 12.0% 12.0% 13.0% Fluid Handling 37% Non-Res. Construction 30% Municipal 9% Oil & Gas 8% General Industrial 21% Power 12% Chemical 20% Emerging Markets 17% Western Europe 24% Developed Asia-Pacific 3% Canada 20% United States 36% Executing Well in Difficult Market; at Trough, Poised for Recovery * Excludes Special Items. Please see non-gaap Financial Measures tables for details. Note: Charts based on 2017 actual results. 3

4 Return to Mid-teen Margins Framework as Shown at March 2, 2017 Investor Day $1.50B $1.30B $1.00B $0.94B +$100M $1.04B $0.50B $0.00B Peak 2014 Trough 2017 Future Midterm Margins* 15.6% 12.0% Mid-teens +$100M of Core Revenue Mid-teen Margins * Excludes Special Items. Please see non-gaap Financial Measures tables for details. 4

5 Fluid Handling Overview and Results Market Outlook Driving Growth and Margins Summary 5

6 Fluid Handling Market Positive Outlook End Markets % of Total Sales Core Market Down from Prior Peak 2017 Actual Midterm Outlook Chemical 20% (21%) Power 12% (33%) Oil & Gas 8% (29%) General Industrial 21% (15%) Municipal 9% (4%) Non- Residential Commercial 30% (0%) TOTAL (15%) 6

7 Chemical Natural Gas Feedstock Ethylene Steam Cracker Derivative Plants US Low Cost Natural Gas Has Long Term global Cost Competitive Advantage 6% Ethylene, Polyethylene and Methanol US Capacity Growth of >6% Standard on-off Solutions Highly Competitive Standard Valves 4% VCM, Urea, MDI/TDI, Propylene Oxide, etc. US Capacity Growth of 3-4% Severe and Hazardous Applications Higher Margin Strong Crane Value Proposition Expecting Continued Chemical Investments Source: Industrial info Resources (IRR) and Crane Co Internal Data 7

8 Power / Oil & Gas Coal & Natural Gas US Power Valve Project Activity China Power Valve Project Activity Downstream Refining US Refinery Project Activity US Refinery Capacity Utilization (%)* US Gas Power Capacity Increase Offset by Drop in China Coal Investments Recovery in Refining Turnaround Projects 92% 90% 88% 86% 84% 82% 80% * Source: U.S. Energy Information Administration, Electric Power Annual and Preliminary Monthly Electric Generator Inventory, Internal Analysis. 8

9 Fluid Handling Overview and Results Market Outlook Driving Growth and Margins Summary 9

10 Consistent Transformation A Transformed Business 10

11 Consistent Transformation Fluid Handling Sales ($M) and Margin %* 1,400 1,300 1,200 Global Recession 1,100 1, % 14% 12% 14% 16% 12% 13% 800 6% G Sales Margins Confident in Returning to Mid-teen Margins * Excludes Special Items. Please see non-gaap Financial Measures tables for details. 11

12 Severe Service $M Sales Market Successful Launch Driving Growth New Product Innovation Triple Offset Valve Product Range 200% $4M-2017 > Triple $13M 2018F $40M 2021F Petrochemical 300M Chemical 140M Power 110M Refining 90M Other 260M 2016 $900M Multi-year Rollout that Opens Up New $900M Market 12

13 Evolving Waste Disposal Landscape $M Sales Market $B wipes sales Driving Growth New Product Innovation Chopper Pump Product Range Trend: Increasing Solid Content in Sewage 6% $2M 2018F $10M 2021F 2017 USA & Canada $290M Multi-year Rollout Addressing a $290M Market 13

14 Driving Growth New Product Innovation Digital Pressure Transducer Smart Pump Remote access to reduce operational cost Wireless monitoring of wastewater pumps New multi-year product portfolio roadmap into smart instrumentation market Package service with hardware Investing in New Technology and New Markets 14

15 Revenue from New Product Driving Growth Reinvesting Crane ChemPharma & Energy Business $34M 2018F $13M 2017 $12M 2014 $3M 2010 It is Working; Looking to Accelerated Revenue from New Products 15

16 Driving Growth Westlock Acquisition Market Leader with Strong Share and Brand Recognition Opens New Markets for Valve Monitoring and Control Westlock Controls Actuators Crane Valves On/Off Indication & Control Exceeding Expectations 16

17 Driving Growth Acquisitions Pressure Relief Valves Bolt-ons Process Sensors Mixers On/Off & Check Valves Automation Adjacencies Process Pumps Control Valves Process Flow Loop On/Off & Check Valves Filters / Strainers Process Sensors Instrumentation Pressure Relief Valves Process Pumps Control Valves Tanks Heat Exchangers Steam Traps Pharmaceuticals Steam Traps 17

18 Driving Margin Expansion Productivity Current State Transformation Future State Example: Lindau, DE Consolidated and Cleared-up Inefficiently Used Areas 40% Manufacturing 30% Productivity Footprint 18

19 Fluid Handling Overview and Results Market Outlook Driving Growth and Margins Summary 19

20 Summary 1 Transformed business; strong execution; confident in achieving margins of 14 19% 2 Market stabilized; favorable mid-term outlook 3 Driving share gains through growth and acquisitions 20

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