Filtration products maker Pall Corp. (PLL) said Monday after the markets closed that its fourth quarter profit declined slightly from last year, as sustained cost reduction efforts and decreased provision for income tax could not offset a 10% sales drop. However, the company's quarterly earnings per share, excluding items, came in above analysts' expectations.
The company reported net income for the fourth quarter of $69.5 million or $0.58 per share, compared to $69.9 million or $0.57 per share for the year-ago quarter.
The company had an average about 119.3 million diluted shares outstanding in the fourth quarter, compared to 121.9 million in the fourth quarter of last year.
Excluding restructuring and other changes, pro forma net income for the fourth quarter was $68.6 million or $0.57 per share, compared to $74.7 million or $0.61 per share in the prior year quarter.
On average, 7 analysts polled by Thomson Reuters expected the company to earn $0.52 per share for the fourth quarter. Analysts' estimates typically exclude special items.
The estimated impact of foreign currency translation reduced earnings per share by $0.05, the company noted.
Selling, general and administrative expenses for the quarter fell 10% to $183.5 million from $204.2 million a year earlier.
Net sales for he fourth quarter fell 10% to $651.96 million from $723.21 million in the same quarter last year. Five analysts had a consensus revenue estimate of $631.99 million for the fourth quarter.
Eric Krasnoff, Pall Chairman and CEO, said, "The economy has certainly presented challenges. Revenues in the fourth quarter were still off from a robust 2008."
Fourth quarter sales for the company's life sciences segment fell 1.7% year-over year to $258.8 million, while sales for Industrial segment dropped 14.5% to $393.2 million, reflecting a generally depressed manufacturing landscape particularly in the microelectronics sector.
For the fiscal year 2009, the company reported net income of $195.6 million or $1.64 per share, compared to $217.3 million or $1.76 per share for the fiscal year 2008.
Pro forma net income for the fiscal year 2009 was $212.1 million or $1.77 per share, compared to $243.6 million or $1.97 per share in the prior fiscal year.
Net sales for the fiscal year 2009 fell 9.3% to $2.33 billion from $2.57 billion last year.
Analysts expected the company to earn $1.71 per share on revenue of $2.31 billion for the fiscal year 2009.
Looking forward to fiscal 2010, the company said its current expectation is for global economic activity to remain weak for at least the first half of the year and a slow recovery in the second half.
Krasnoff said, "Pall's market and geographic diversity continue to moderate the impact of a challenging macroeconomic environment."
Pall shares, which have traded in a range of $18.20 to $37.83 over the past year, closed Monday's regular trading session at $32.60, up 26 cents and gained an additional 65 cents or 1.99% in after hours trading.
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