Pall Corporation - 1st Quarter Results
November 18 1999 - 3:46AM
UK Regulatory
RNS Number:0244B
Pall Corporation
17 November 1999
For More Information Contact:
John Adamovich, Pall Corporation
(516) 484-5400
Pall Corporation Projects 82% Earnings Increase
East Hills, NY (11/17/99) -- Eric Krasnoff, Chairman and CEO of Pall Corporation
(NYSE:PLL) announced at today's Annual Shareholders' Meeting the
Company's sales results and earnings estimates for its first quarter which ended
on October 30,1999.
Mr. Krasnoff said, "Sales for the quarter reached $267,122,000. This is an
increase of 7% over the first quarter of last year.
"Earnings will be released on November 30." said Mr. Krasnoff. "We expect the
first quarter's earnings to be about 20 cents per share compared to 11 cents
achieved for the first quarter last year. This is an increase of 82%. The
benefits of our restructuring continue to be seen in these numbers. Other key
contributors to growth are the recovery of the Microelectronics segment,
continued strength of blood filter sales and improved margins in our Industrial
Systems business.
Part of our restructuring plan involved the consolidation of certain facilities.
The results for the first quarter will reflect a profit of $1.3 million from the
sale of a property located in the United Kingdom. Offsetting this are adverse
foreign currency exchange rates and the sale of our Stratapac business which
reduced sales in the quarter by $1.65 million or 1/2%.
Commenting on the sales results, Mr. Krasnoff continued, "Microelectronics sales
grew 61%, with local currency growth of 52%. The backlog also increased
substantially. Microelectronics sales in the US more than doubled and local
currency growth was over 20% in both Europe and Asia.
Sales of blood filters to blood centers were equally strong, posting a 59%
increase. Sales nearly doubled in Europe and were up 42% in the US. As expected,
hospital sales were down 16%, netting a total blood filter
sales increase of 24%.
The BioPharmaceuticals segment grew 5% in the quarter and 6% in local currency.
Double-digit growth in Food & Beverage continued, while Specialty Material sales
were flat. Sales to pharmaceutical producers and laboratory products customers
grew 5%.
The good news in Aeropower is the return to growth of the Industrial
Hydraulics sub-segment. The US, in particular, posted a sales gain of 6 1/2%,
its best showing in many quarters.
As expected, Aerospace sales were fairly flat. Here, we continued to see strong
growth of 21% in the military area while commercial aerospace sales were down
11% due to the timing of OEM business in the quarter. Overall Aerospace is still
expected to be fiat for the year with commercial aerospace up a few percent and
military down due to non-repeating orders received in fiscal 1999.
As part of our restructuring, we reorganized our Industrial Systems business.
This can be seen in an improvement in cost of sales in industrial systems which
will be reflected in our profits in the quarter. These measures, which included
an adjustment to market focus and greater selectivity in accepting certain
projects, has temporarily retrenched sales. Taking into account the sale of our
Stratapac business in the third quarter last year, sales were about flat. We did
see a good increase again in the backlog and expect to achieve double- digit
sales growth for the year. Within the Industrial Process segment, Power
Generation sales grew 25%. Water Processing sales were down 36%,
reflecting the effects of big system sales in the first quarter last year."
Regarding Pall's earnings expectations for the rest of the year, Mr. Krasnoff
said, "The strong increase in earnings in the first quarter is expected to
continue and position Pall for record profits this fiscal year. The benefits of
our restructuring began in the third quarter of last fiscal year and will
continue to show in the second quarter. The growth in earnings in the second
half of fiscal 2000 is more likely to be closer to the rate of sales increase.
On this basis, our current expectation is that earnings per share for the whole
year may well increase 30% from last year's 92 cents (after adjusting for a
change in accounting principle related to start-up costs and before the effects
of one-time charges in fiscal 1999)."
PALL CORPORATION SALES BY MARKET
(000s omitted)
FIRST QUARTER ENDED
OCT. 30, OCT. 31, %
1999 1998 CHANGE
Medical $ 67,150 $ 60,050 12
BioPharmaceuticals 74,579 71,178 5
Aerospace 30,013 29,901 1/2
Industrial Hydraulics 31,291 30,371 3
Total Aeropower 61,304 60,272 1 1/2
Microelectronics 18,822 11,698 61
Industrial Process 45,267 46,652 (3)
Total
Fluid Processing 64,089 58,350 10
TOTAL $267,122 $249,850 7
EXCHANGE % CHANGE
RATE IN LOCAL
DIFFERENCE CURRENCY
Medical $ (452) 12 1/2
BioPharmaceuticals (803) 6
Aerospace (257) 1
Industrial Hydraulics (810) 5 1/2
Total Aeropower (1,067) 3 1/2
Microelectronics 1,032 52
Industrial Process 433 (4)
Total
Fluid Processing 1,465 7 1/2
TOTAL $ (857) 7 1/2
PALL CORPORATION SALES BY GEOGRAPHY
(000s omitted)
FIRST QUARTER ENDED EXCHANGE CHANGE
OCT. 30, OCT. 31, % RATE IN LOCAL
1999 1998 CHANGE DIFFERENCE CURRENCY
Asia $ 46,949 $ 37,297 26 $ 6,329 9
Europe 97,458 99,662 (2) (7,303) 5
Western
Hemisphere 122,715 112,891 8 1/2 117 8 1/2
TOTAL $ 267,122 $ 249,850 7 $ (857) 7 1/2
With annual sales over $1 billion, Pall Corporation is based in East Hills, New
York, USA and operates directly in 30 countries. Pall Corporation provides
innovative solutions to complex filtration and separations problems in three
major markets: Health Care, Aeropower and Fluid Processing. The Company's shares
are listed on the New York Stock Exchange (PLL) and the London Stock Exchange
(0668260). Further information about Pall Corporation is available on the
Company's Web site at http://www.pall.com.
This release contains "forward looking statements" as defined in the Private
Securities Litigation Reform Act of 1995. These statements are based an current
Company expectations and are subject to risks and uncertainties which could
cause actual results to differ materially. In addition to foreign exchange
rates, such risks and uncertainties include, but are not limited to, regulatory
approval, market acceptance of new technologies, economic conditions and market
demand.
END
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