DOW JONES NEWSWIRES

Clarcor Inc.'s (CLC) fiscal fourth-quarter net income rose 8.7%, as growth remained solid overseas, particularly in Asia, but the company experienced a slowdown in most U.S. markets.

The filtration systems and packaging company issued a fiscal 2009 view in line with analyst estimates, but said it was disappointed with the slow pace of returns from its restructuring of CLC Air. The company also detailed a plan to consolidate four facilities into one site in early 2009.

For the quarter ended Nov. 29, Clarcor reported net income of $29.1 million, or 56 cents a share, up from $26.7 million, or 53 cents a share, a year earlier. Analysts polled by Thomson Reuters were looking for earnings of 54 cents a share.

Net sales grew 11% to $266 million, but currency changes reduced fourth-quarter sales by $6 million.

In September, the company said it expected net sales between $278.8 million and $285.9 million, while analysts were most recently forecasting $273 million.

Operating margin increased to 17.3% from 16.8%.

Chairman and Chief Executive Norm Johnson said it was an unusual year for raw material costs, as increases in metals, oil and natural gas prices during the first three quarters retreated in the fourth quarter. Johnson said the company expects to see declines reflected in its cost structure throughout 2009.

Clarcor now expects savings at CLC Air that had been projected for 2008 will now occur in 2009. In addition, the $14 million improvement in operating profit it had expected by the end of 2009 will occur in 2010.

Looking ahead, Clarcor expects fiscal 2009 per-share earnings of $1.78 to $2.08. Wall Street was looking for earnings of $1.89.

Capital expenditures, which were $35 million in 2008 and $37 million in 2007, are expected to be $30 million to $40 million in 2009.

Shares were trading up 6.2% at $29.20 after closing the regular session down 1.4%.

-By John Kell, Dow Jones Newswires; 201-938-5285; john.kell@dowjones.com;

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