(RTTNews) - Filtration products and service provider Clarcor Inc. (CLC: News ), Wednesday said its third quarter profit declined 17.5%, due to lower sales reflecting currency fluctuations, as well as reduced demand, both in the U.S and overseas. The company's quarterly earnings failed to meet the analysts' expectations. Looking forward, the company lowered its earnings outlook for fiscal year 2009.

The Franklin, Tennessee-based company reported net earnings of $21.3 million for the third quarter, down 17.5% from $25.8 million in the prior year quarter. Earnings per share dropped 16% to $0.42 from $0.50 in the previous year quarter. On average, 6 analysts polled by Thomson Reuters expected the company to report earnings of $0.43 per share for the third quarter. Analysts' estimates typically exclude special items.

Operating profit for the quarter decreased 21% to $32.1 million from $40.8 million a year earlier.

Third quarter net sales declined 17% to $230.27 million from $276.30 million in the same quarter last year. Four analysts had a consensus revenue estimate of $246.40 million for the third quarter.

Foreign currency fluctuations decreased sales and the operating profit by about $7 million and $1 million, respectively, for the quarter.

For the second quarter, Clarcor reported net earnings of $16.8 million or $0.33 per share, and net sales of $229.4 million. The sequential improvement in earnings and sales was attributed to the cost reduction efforts, new product introductions and new customer relationships.

Segment wise, Engine/Mobile Filtration sales for the quarter fell 18% to $96.4 million, Industrial/Environmental Filtration sales slipped 17% to $114.6 million, and Packaging sales dropped 3% to $19.2 million from a year ago.
During the third quarter, Clarcor repurchased 688,200 shares of its stock at an average purchase price of $28.72. The company noted that about $167 million remains outstanding under its current share repurchase authorization.

For the nine-month period of 2009, Clarcor posted net earnings of $46.9 million or $0.92 per share, compared to $66.6 million or $1.30 per share in the previous year period.

Net sales for the year-to-date period declined 15.2% to $673.36 million from $793.62 million in the prior year period.

For 2009, Clarcor lowered its earnings oultook to a range of $1.30 to $1.40 per share from its prior estimate of $1.40 to $1.60 per share. The Street currently expects earnings of $1.44 per share for the year.

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