PAL Equatorial Palm Oil Plc

RNS No 4497j
PALL CORPORATION
1 December 1998


( BW)(PALL)(PLL) Pall Corporation Announces First Quarter FY'99
Earnings Results
 
    EAST HILLS, N.Y.--(BUSINESS WIRE)--Dec. 1, 1998--Pall Corporation
(NYSE: PLL) today reported first quarter fiscal 1999 earnings results.

    Earnings for the quarter ended October 31, 1998, amounted to
$14,480,000 equal to 12 cents per diluted share compared to last
year's $18,414,000, equal to 14 cents per diluted share.

    Eric Krasnoff, Pall's Chairman and CEO, said, "We announced record
first quarter sales results and our earnings expectations at our
annual shareholders' meeting. For the quarter, sales were
$249,850,000, an increase of 5 1/2% over the prior year. In local
currency, sales increased 6%. Adverse foreign currency exchange rates
reduced sales by $1,600,000 or 1/2%. Our statement that earnings per
share were expected to be down a couple of cents compared to last
year's first quarter is now confirmed in this release.

    The first quarter's results were affected by a rebate earned by
the American Red Cross ("ARC") under a new two-year agreement covering
its purchase of Pall filters and systems for the leukocyte reduction
of blood by filtration. Sales to the ARC have ramped up faster than
anticipated. In fact, total blood filter sales increased 10 1/2%
reflecting growing worldwide momentum toward 100% leukocyte depletion
of blood.

    In the quarter, cost of sales increased 1.8% as a percentage of
sales. Major contributing factors were the effects of the ARC rebate
and Hurricane Georges, as well as changes in product mix. Net interest
expense increased nearly $2,000,000, reflecting higher debt levels due
to the purchase of Rochem in last year's second quarter and the
effects of our stock buy-back program. The effective tax rate for the
quarter was 25%, consistent with the underlying tax rate for fiscal
year 1998.

    Orders continue to be strong and backlog in the quarter was up
$22,000,000 at $192,000,000, an increase of 19% over the first quarter
last year. Particularly encouraging is that, when compared to
year-earlier levels, backlog in Health Care is up 43%, while Fluid
Processing backlog is up 10% despite a 63% reduction in
Microelectronics' backlog. The high level of backlog gives us the
confidence that we will meet our targets for 1999."
 
PALL CORPORATION CONSOLIDATED STATEMENTS OF EARNINGS
(Amounts in thousands, except per share data)
 
                                          FIRST QUARTER ENDED
                                       OCT. 31,          NOV. 1,
                                         1998             1997
REVENUES
Net sales                             $249,850         $237,351
 
COSTS AND EXPENSES
Cost of sales                          115,773          105,611
Selling, general and
 administrative expenses                96,887           90,987
Research and development                14,935           14,190
Interest expense, net                    2,948              988
 
Total costs and expenses               230,543          211,776
 
Earnings before
 income taxes                           19,307           25,575
Provisions for
 income taxes                            4,827            7,161
 
Net earnings                          $ 14,480         $ 18,414
 
Earnings per share:
   Basic                              $   0.12         $   0.15
   Diluted                            $   0.12         $   0.14
 
Average number of shares 
 outstanding:
   Basic                               124,107          126,956
   Diluted                             124,618          127,609
 
CONDENSED CONSOLIDATED BALANCE SHEETS
(Amounts in thousands)
                                        OCT. 31,          AUG. 1,
                                          1998             1998
Assets
 
Cash and short-term investments     $   46,092       $   28,925
Accounts receivable, net               287,962          291,535
Inventories                            245,472          227,254
Other current assets                    59,476           54,775
 
  Total current assets                 639,002          602,489
 
Property, plant and equipment, net     529,156          520,592
Other assets                           220,280          223,838
 
  Total assets                      $1,388,438       $1,346,919
 
Liabilities and Stockholders' Equity
 
Short-term debt                     $  210,032       $  184,907
Accounts payable, income taxes
 and other current liabilities         214,672          209,183
 
  Total current liabilities            424,704          394,090
 
Long-term debt                         112,860          111,469
Deferred taxes and other
  non-current liabilities               77,498           75,745
Stockholders' equity                   773,376          765,615
 
  Total liabilities and
  stockholders' equity              $1,388,438       $1,346,919
 
    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 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,
regulatory approval, market acceptance of new technologies, economic
conditions and market demand.
 
    CONTACT: Pall Corp., East Hills
             John Adamovich, Chief Financial Officer 
             516/484-5400
 END

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