PAL Equatorial Palm Oil Plc

RNS No 7223d
PALL CORPORATION
21st November 1997

Pall Corporation Reports Sales for First Quarter FY'98 
 
    GARDEN CITY, N.Y.--(BUSINESS WIRE)--November 20, 1997--Pall 
Corporation (NYSE: PLL) today reported first quarter sales results 
and the outlook for the Company's future at its annual shareholders' 
meeting.  

    Sales for the first quarter of fiscal 1998 were $237,351,000 
compared to last year's $235,791,000 an increase of 1/2%.  The 
negative effect of exchange rates reduced sales 5% or $11 million.  
In local currency, sales increased 5 1/2%.  

    Commenting on the results, Eric Krasnoff, Chairman and CEO said 

"Even though a sales increase of 5 1/2% in local currency shrank to 
growth of 1/2% when consolidated back into $US, this was our first 
positive quarter since the first quarter last year.  We believe that 
most of the problems that affected our results in 1997 have been 
addressed and that this first quarter marks the beginning of renewed 
growth.  

    Our best performance this quarter came from the Aerospace 
division where sales in local currency grew 37%.  This growth, which 
was mostly in the US, came from both Military which grew 42% and 
Commercial which grew 34%.  This growth was not at the expense of 
backlog, which, in the Aeropower segment also increased by $9 million.  

    Microelectronics returned to growth with a local currency 
increase of 5 1/2%.  What was more satisfying was that orders 
increased 36% led by a 70% increase in the US and a 20% local 
currency increase in Asia.  This is the second quarter in a row that 
we have seen double-digit growth in orders in this segment.  

    Other Fluid Processing grew 7 1/2% and, after a sluggish 1997, 
Power Generation came back with a 23% increase.  Also of interest, 
but from a low base, we saw Stratapac(R) filter sales increase more 
than 50%.  Orders were particularly strong and each of the 
subsegments of Fluid Processing increased more than 30%.  Our move 
into waste and municipal water is already beginning to pay off.  
Backlog in the Fluid Processing segment was up $15 million.  

           As expected, the Health Care segment was flat in local currency with
Patient Protection down 2%.  Blood filter sales were down 2%.  Sales 
to blood centers grew 1% and hospital sales were down 4%.  Other 
Health Care sales were up 2 1/2% in local currency, led by a 21% 
increase in Food and Beverage.  Pall Gelman laboratory sales held 
steady.  

    On a geographic basis, sales in each of our three major 
geographies grew between 5% and 5 1/2% in local currency.  
    Once again, foreign currency had a major effect on sales and is 
likely to reduce earnings by 3 or 4 cents in the quarter.  We expect 
earnings per share to be about 15 cents compared to last years 17 
cents.  

    Looking forward, we still expect sales to be reduced in the 
second quarter by 4% due to exchange rates, but we expect unit and 
price growth to be a little higher than the first quarter, although 
still in single-digits.  

           For the second half of the year, at current rates, exchange rate 
comparisons should ease to about 1% negative.  We feel that we will 
return to double-digit growth in the second half of the year, due to 
the strong growth in orders as well as the acquisition of Rochem.  

    Our goal is to grow earnings at a faster rate than our sales 
growth and, although currency will hurt our gross margins, we project
that this can be more than offset by a reduction of selling, general 
and administrative costs.  This will come from the Gelman acquisition
synergies, which are on target, as well as the savings from other 
restructuring we did last year.  In addition, we have reduced our 
expected corporate tax rate to 28% in the first quarter and we do 
not expect the rate for the year to be any higher than this."  

    Mr. Krasnoff also reported that the Company has bought back 2.3 
million shares of its own stock at a cost of $50 million.  The 
Company's Board of Directors had authorized a $150 million stock 
repurchase program in early October, 1997.  

      PALL CORPORATION SALES BY MARKET FOR THE FIRST QUARTER 
            ENDED FISCAL 1998 COMPARED TO FISCAL 1997 
                         (000s omitted)
 
                   FIRST QUARTER ENDED            EXCHANGE     % CHANGE
                   NOV. 1,    NOV. 2,      %      RATE         IN LOCAL
                     1997       1996     CHANGE   DIFFERENCE   CURRENCY
 
Patient Protection $ 54,544   $ 58,248   (6 1/2)  $ (2,561)      (2)    
Other                67,081     68,701   (2 1/2)    (3,386)       2 1/2
Total Health Care   121,625    126,949   (4)        (5,947)         1/2
 
Microelectronics     22,251     22,439   (1)        (1,436)       5 1/2
Other                37,326     36,155    3         (1,474)       7 1/2
Total 
  Fluid Processing   59,577     58,594    1 1/2     (2,910)       6 1/2
 
Aeropower            56,149     50,248    11 1/2    (2,235)      16
 
TOTAL              $237,351   $235,791       1/2  $(11,092)      5 1/2
 
                PALL CORPORATION SALES BY GEOGRAPHIC REGION 
                   FOR FIRST QUARTER ENDED FISCAL 1998 
                         COMPARED TO FISCAL 1997
                              (000s omitted)
 
                FIRST QUARTER ENDED             EXCHANGE     % CHANGE 
                NOV. 1,      NOV. 2,     %      RATE         IN LOCAL 
                  1997        1996     CHANGE   DIFFERENCE   CURRENCY
 
Asia           $ 45,121    $ 46,410     (3)     $ (3,723)    5     
Europe           80,327      83,457     (4)       (7,307)    5             
Western 
  Hemisphere    111,903     105,924      5 1/2       (62)    5 1/2   
TOTAL          $237,351    $235,791        1/2  $(11,092)    5 1/2
 
    Pall Corporation, with annual sales over $1 billion, is based in 
East Hills, New York, USA.  The Company has the broadest-based 
filtration and separation capabilities in the world.  Since 1946, 
Pall Corporation has demonstrated technological leadership and 
offered innovative solutions to complex fluid clarification and 
purification problems in each of its three major markets: Health 
Care, Aeropower and Fluid Processing.  The Company employs 8,500 
people at offices and manufacturing facilities throughout the world.
The Company's shares are listed on the New York Stock Exchange (PLL) 
and the London Stock Exchange (0668260).  To receive the latest 
information about Pall Corporation, visit Pall's Internet web site at
http://www.pall.com or dial Pall's Select-A-Fax(TM) system at 
1-800-664-PALL.  
 
This release contains forward-looking statements that are based on 
current Company expectations and are subject to risks and 
uncertainties which could cause actual results to differ materially.
Such risks and uncertainties include, but are not limited to, foreign
exchange rates, regulatory approval, market acceptance of new 
technologies, economic conditions and market demand.  
 
    CONTACT: Pall Corporation, Garden City
             Jeremy Hayward-Surry
             (516) 484-5400
 

END

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