|
Pall Corporation (PLL)
today reported financial results for the fourth quarter and fiscal year
ended July 31, 2012.
Fourth Quarter Sales and Earnings Overview
Total Company: Fourth quarter sales
were $783.7 million compared to $780.4 million last year, an increase of
0.4% (+6.1% in local currency ("LC")). Diluted earnings per share
("EPS") were $0.73 in the quarter, compared to $0.82 last year. Pro
forma diluted EPS(1) were $0.99 compared to $0.76 last year,
an increase of 30%. Foreign currency translation negatively impacted
fourth quarter EPS by $0.05.
Continuing Operations:(2) Sales
in the quarter were $722.4 million, an increase of about 1% (+6.4% LC).
Diluted EPS were $0.64 in the quarter, compared to $0.76 last year. Pro
forma EPS were $0.86 compared to $0.65 last year, an increase of 32%.
Larry Kingsley, President and CEO, said, "We executed a solid fourth
quarter. We focused almost exclusively on restoring customer service
levels and we have recovered from the ERP implementation challenges in
the third quarter of FY12. We also closed the transaction with
Haemonetics on August 1st as planned. We have taken action to
insure that we can achieve reasonable shareholder return in a choppy
economic environment.
"Our BioPharmaceuticals, Machinery & Equipment, and Aerospace markets
all performed very well in the quarter. On a regional basis, the
Americas had strong growth while Europe and Asia were flat. System sales
were negative in the quarter as a function of a very large comparison
quarter in FY11, our decision to pare certain unprofitable system sales,
and lower capital commitment in some markets.
"Consumable orders were strong globally with the exception of our
Industrial markets in Europe where orders declined 7% year-on-year.
"Our performance reflected slightly better than expected supply chain
recovery assumptions as stated in the prior quarter call."
Full Year Sales and Earnings Overview
Total Company: For the full year,
sales increased 5.9% over last year (+6.9% LC). Diluted EPS were $2.71,
compared to $2.67 for the same period last year. Pro forma EPS were
$3.19, a 15% increase compared to $2.77 a year earlier. Foreign currency
translation had an immaterial impact on full year EPS.
Continuing Operations:(2) Sales
from continuing operations for the full year increased 6.1% (+7.2% LC)
over last year. Diluted EPS were $2.39 compared to $2.36. Pro forma EPS
were $2.80, a 16% increase compared to $2.42 a year earlier.
Life Sciences - Fourth Quarter Highlights (2)
(Dollar Amounts in Thousands and Discussion of Sales Changes
are in Local Currency)
Sales: JUL. 31, 2012 JUL. 31, 2011 % CHANGE % CHANGE IN LC
--------------------------- ------------- ------------- --------- -------------
BioPharmaceuticals $ 217,591 $ 199,865 8.9 16.1
Food & Beverage 65,561 77,810 (15.7 ) (9.1 )
Medical 51,488 54,004 (4.7 ) 1.9
------- -------
Total Life Sciences segment $ 334,640 $ 331,679 0.9 7.8
====== ======= ====== =======
Gross profit $ 193,609 $ 186,325
% of sales 57.9 56.2
Segment profit $ 86,121 $ 78,836
% of sales 25.7 23.8
BioPharmaceuticals: Within
BioPharmaceuticals, our Pharmaceuticals sales increased 16%.
Consumables sales to Pharmaceuticals customers grew 21%, with
contributions from all regions, while systems sales declined 22%.
Continued strength in the biotech market, as well as ForteBio’s BLItz(TM)
and Octet(R) instrumentation platforms, which added about 4%, drove
consumables sales growth. Laboratory sales grew in all regions and
increased about 15% overall.
Food and Beverage: Sales were
down overall reflecting a divestiture in Italy which reduced sales by
almost 5%. Consumables sales grew about 12%, excluding the divestiture.
This growth reflects new products and growth in emerging markets.
Systems sales were down reflecting decreased capital investment in
Europe related to weak economic conditions in parts of the region.
Medical: Medical OEM sales
grew 10% driven by the Americas and Europe. Hospital sales were up
slightly. Other Medical markets were negatively impacted by channel
changes.
Industrial - Fourth Quarter Highlights (2)
(Dollar Amounts in Thousands and Discussion of Sales Changes
are in Local Currency)
Sales: JUL. 31, 2012 JUL. 31, 2011 % CHANGE % CHANGE IN LC
------------------------ ------------- ------------- -------- -------------
Process Technologies $ 235,506 $ 241,349 (2.4 ) 3.8
Aerospace 68,669 58,566 17.3 20.8
Microelectronics 83,556 87,122 (4.1 ) (1.5 )
------- -------
Total Industrial segment $ 387,731 $ 387,037 0.2 5.2
====== ======= ====== =======
Gross profit $ 178,546 $ 167,195
% of sales 46.0 43.2
Segment profit $ 67,552 $ 48,493
% of sales 17.4 12.5
Process Technologies: Machinery
& Equipment sales increased 9%. Consumables sales grew in all regions
reflecting growth in the mining, automotive in-plant and mobile OEM
sectors.
Sales in Fuels & Chemicals decreased approximately 4% overall on
weakness in Europe as well as tough comparables to a strong quarter in
fiscal year 2011.
Power Generation sales increased 18%. Systems sales more than doubled,
while consumables sales grew about 2%. Key growth drivers in the quarter
include the recovery of the turbine OEM sector in Europe.
Municipal Water sales increased about 5%, driven by growth in the
Americas.
Aerospace: Military Aerospace
grew 28% in the quarter, with all regions contributing. Sales in the
Americas were particularly strong. Commercial Aerospace sales increased
12%, with both Americas and Europe strong.
Microelectronics: The result
year over year reflects continuing weakness in our customer end
markets in Asia. Overall, orders were up 5%.
Conclusion/Outlook
Kingsley concluded, "I’m pleased with our execution in the quarter in
that we were able to restore customer confidence. However, we have much
to do to demonstrate that we can execute in a manner that is
industry-leading and that we can be proud of. Our team is working hard
to enable our strategy and build the necessary business processes to
deliver consistent performance.
"As we look forward, the market environment is mixed. We anticipate
challenges within our European Industrial markets, slower than
previously expected global semiconductor end markets, and moderating
growth in some emerging markets. Other markets, though, will continue to
grow in the current economic environment. Our current assumptions are
generally consistent with our third quarter characterization which
assumes low to mid-single digit local currency sales growth. On that
basis in 2013, we expect pro forma EPS in the $3.05 to $3.25 range,
reflecting 9% to 16% earnings per share growth. Included within our
guidance is the assumption of 22 - 24 cents of adverse currency
associated impact.
"We will provide further details regarding our expectations for fiscal
year 2013 on our Q4 call."
Conference Call
On Thursday, September 13, 2012, at 8:30 am ET, Pall Corporation will
host a conference call to review these results. The call can be accessed
at www.pall.com/investor.
The webcast will be archived for 30 days.
About Pall Corporation
Pall Corporation (PLL)
is a filtration, separation and purification leader providing solutions
to meet the critical fluid management needs of customers across the
broad spectrum of life sciences and industry. Pall works with customers
to advance health, safety and environmentally responsible technologies.
The Company’s engineered products enable process and product innovation
and minimize emissions and waste. Pall Corporation is an S&P 500 company
serving customers worldwide. Pall has been named a "top green company"
by Newsweek magazine. To see how Pall is helping enable a
greener, safer, more sustainable future, follow us on Twitter @PallCorporation
or visit www.pall.com/green.
Forward-Looking Statements
The matters discussed in this release contain "forward-looking
statements" as defined in the Private Securities Litigation Reform Act
of 1995. Results for fiscal year 2012 are preliminary until the
Company’s Form 10-K is filed with the Securities and Exchange Commission
on or before October 1, 2012.
Forward-looking statements are those that address activities, events or
developments that the Company or management intends, expects, projects,
believes or anticipates will or may occur in the future. All statements
regarding future performance, earnings projections, earnings guidance,
management’s expectations about its future cash needs, dilution from the
disposition or future allocation of capital and effective tax rate, and
other future events or developments are forward-looking statements.
Forward-looking statements are those that use terms such as "may,"
"will," "expect," "believe," "intend," "should," "could," "anticipate,"
"estimate," "forecast," "project," "plan," "predict," "potential," and
similar expressions. Forward-looking statements contained in this and
other written and oral reports are based on management’s assumptions and
assessments in light of past experience and trends, current conditions,
expected future developments and other relevant factors.
The Company’s forward-looking statements are subject to risks and
uncertainties and are not guarantees of future performance, and actual
results, developments and business decisions may differ materially from
those envisaged by the Company’s forward-looking statements. Such risks
and uncertainties include, but are not limited to, those discussed in
Part I-Item 1A.-Risk Factors in the 2011 Form 10-K, and other reports
the Company files with the Securities and Exchange Commission,
including: the impact of legislative, regulatory and political
developments globally; the impact of the uncertain global economic
environment; the extent to which adverse economic conditions may affect
the Company’s sales volume and results; demand for our products and
business relationships with key customers and suppliers, which may be
impacted by their cash flow and payment practices; delays or
cancellations in shipments; the Company’s ability to develop and
commercialize new technologies or obtain regulatory approval or market
acceptance of new technologies; increase in costs of manufacturing and
operating costs; the Company’s ability to achieve and sustain the
savings anticipated from its structural cost initiatives; the Company’s
ability to meet its regulatory obligations; changes in product mix,
market mix and product pricing, particularly relating to the expansion
of the systems business; the Company’s ability to successfully complete
the Company’s business improvement initiatives, which include supply
chain enhancements and integrating and upgrading the Company’s
information systems; the effect of a serious disruption in the Company’s
information systems; fluctuations in the Company’s effective tax rate;
the Company’s ability to enforce patents and protect proprietary
products and manufacturing techniques; the Company’s ability to
successfully complete or integrate any acquisitions; volatility in
foreign currency exchange rates, interest rates and energy costs and
other macroeconomic challenges currently affecting the Company; the
impact of pricing and other actions by competitors; the effect of
litigation and regulatory inquiries associated with the restatement of
the Company’s prior period financial statements; the Company’s ability
to attract and retain management talent or the loss of members of its
senior management team; and the effect of the restrictive covenants in
the Company’s debt facilities. Factors or events that could cause the
Company’s actual results to differ may emerge from time to time, and it
is not possible for the Company to predict all of them. The Company
makes these statements as of the date of this disclosure and undertakes
no obligation to update them, whether as a result of new information,
future developments or otherwise.
Management uses certain non-GAAP measurements to assess the Company’s
current and future financial performance. The non-GAAP measurements do
not replace the presentation of the Company’s GAAP financial results.
These measurements provide supplemental information to assist management
in analyzing the Company’s financial position and results of operations.
The Company has chosen to provide this information to facilitate
meaningful comparisons of past, present and future operating results and
as a means to emphasize the results of ongoing operations.
Notes to Release:
(1) Pro forma diluted EPS are defined as Reported diluted EPS adjusted
for "Discrete Items". Discrete items are defined as ROTC and other
items that are deemed to be non-recurring in nature and/or not
considered by management to be indicative of underlying operating
performance. A reconciliation of Reported to Pro forma amounts can
be found on page 7 of this release.
(2) As discussed in our news release dated August 1, 2012, the Company
completed the sale of certain assets of its Blood product line to
Haemonetics Corporation (HAE). Accordingly, discussion of
results from continuing operations excludes the Blood product line.
Tables appended to this release are presented on a continuing
operations basis (with reconciliation to include the discontinued
Blood product line). Further, Life Sciences and Industrial operating
profit have been restated to reflect a change in the allocation of
certain shared expenses on a continuing operations basis.
(3) Reflects assets to be disposed of related to the sale of the Blood
product line.
(4) Cash flows are inclusive of discontinued operations.
PALL CORPORATION
CONDENSED CONSOLIDATED BALANCE SHEETS
(Unaudited)
(Amounts in Thousands)
JUL. 31, 2012 JUL. 31, 2011
---------------- ----------------
Assets:
Cash and cash equivalents $ 500,274 $ 557,766
Accounts receivable 655,436 646,769
Inventories 364,766 444,842
Other current assets 195,464 159,831
Assets held for sale (3) 136,517 -
--------- ---------
Total current assets 1,852,457 1,809,208
--------- ---------
Property, plant and equipment 750,993 794,599
Other assets 744,442 628,609
--------- ---------
Total assets $ 3,347,892 $ 3,232,416
==== ========= ==== =========
Liabilities and Stockholders’ Equity:
Short-term debt $ 205,393 $ 215,468
Accounts payable, income taxes and other current liabilities 646,735 574,539
--------- ---------
Total current liabilities 852,128 790,007
Long-term debt, net of current portion 490,706 491,954
Deferred taxes and other non-current liabilities 495,023 460,634
--------- ---------
Total liabilities 1,837,857 1,742,595
Stockholders’ equity 1,510,035 1,489,821
--------- ---------
Total liabilities and stockholders’ equity $ 3,347,892 $ 3,232,416
==== ========= ==== =========
PALL CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS
(Unaudited)
(Amounts in Thousands, Except Per Share Data)
FOURTH QUARTER ENDED YEAR ENDED
-------------------------------------- ------------------------------------------
JUL. 31, 2012 JUL. 31, 2011 JUL. 31, 2012 JUL. 31, 2011
------------------ ------------------ -------------------- --------------------
Net sales $ 722,371 $ 718,716 $ 2,671,656 $ 2,517,195
Cost of sales 350,216 365,196 1,291,558 1,232,283
------- ------- --------- ---------
Gross profit 372,155 353,520 1,380,098 1,284,912
------- ------- --------- ---------
% of sales 51.5 % 49.2 % 51.7 % 51.0 %
Selling, general and administrative expenses 210,239 218,253 843,221 790,279
% of sales 29.1 % 30.4 % 31.6 % 31.4 %
Research and development 22,581 23,308 82,932 80,506
------- ------- --------- ---------
Operating profit 139,335 111,959 453,945 414,127
% of sales 19.3 % 15.6 % 17.0 % 16.5 %
Restructuring and other charges ("ROTC") (a) 35,857 12,584 66,858 26,505
Interest expense, net (c) 2,495 (273 ) 20,177 18,903
------- ------- ---- --------- ---------
Earnings from continuing operations before income taxes 100,983 99,648 366,910 368,719
Provision for income taxes (b) 25,272 9,501 85,963 89,522
------- ------- --------- ---------
Net earnings from continuing operations $ 75,711 $ 90,147 $ 280,947 $ 279,197
Earnings from discontinued operations, net of income taxes (d) 10,496 7,207 38,362 36,299
------- ------- --------- ---------
Net earnings $ 86,207 $ 97,354 $ 319,309 $ 315,496
==== ======= ==== ==== ======= ==== ==== ========= ==== ==== ========= ====
Average shares outstanding:
Basic 115,940 116,544 116,061 116,521
Diluted 117,519 118,249 117,663 118,266
Earnings per share:
--------------------------------------------------------------
From continuing operations:
Basic $ 0.65 $ 0.77 $ 2.42 $ 2.40
Diluted $ 0.64 $ 0.76 $ 2.39 $ 2.36
From discontinued operations:
Basic $ 0.09 $ 0.06 $ 0.33 $ 0.31
Diluted $ 0.09 $ 0.06 $ 0.32 $ 0.31
---- ------- ---- ------- ---- --------- ---- ---------
Total
Basic $ 0.74 $ 0.84 $ 2.75 $ 2.71
Diluted $ 0.73 $ 0.82 $ 2.71 $ 2.67
==== ======= ==== ======= ==== ========= ==== =========
Pro forma diluted earnings per share:
--------------------------------------------------------------
From continuing operations $ 0.86 $ 0.65 $ 2.80 $ 2.42
From discontinued operations $ 0.13 $ 0.11 $ 0.39 $ 0.35
---- ------- ---- ------- ---- --------- ---- ---------
Total $ 0.99 $ 0.76 $ 3.19 $ 2.77
==== ======= ==== ======= ==== ========= ==== =========
PALL CORPORATION
RECONCILIATION OF PRO FORMA EARNINGS
(Unaudited)
(Amounts in Thousands, Except Per Share Data)
FOURTH QUARTER ENDED YEAR ENDED
-------------------------------------- --------------------------------------
JUL. 31, 2012 JUL. 31, 2011 JUL. 31, 2012 JUL. 31, 2011
------------------ ------------------ ------------------ ------------------
Pro forma earnings reconciliation from
Continuing Operations
---------------------------------------------------------------------
Net earnings from continuing operations as reported $ 75,711 $ 90,147 $ 280,947 $ 279,197
Discrete items:
ROTC, after pro forma tax effect (a) 29,499 9,420 52,992 20,833
(2,859 ) (3,413 ) (2,859 ) (3,413 )
Interest adjustments, after pro forma tax effect (c)
Tax adjustments (b) (1,264 ) (18,990 ) (1,264 ) (10,581 )
------- ---- ------- ---- ------- ---- ------- ----
Total discrete items 25,376 (12,983 ) 48,869 6,839
------- ------- ---- ------- -------
Pro forma earnings from continuing operations $ 101,087 $ 77,164 $ 329,816 $ 286,036
==== ======= ==== ==== ======= ==== ==== ======= ==== ==== ======= ====
Diluted earnings per share from continuing operations as reported $ 0.64 $ 0.76 $ 2.39 $ 2.36
Discrete items:
ROTC, after pro forma tax effect (a) 0.25 0.08 0.44 0.18
(0.02 ) (0.03 ) (0.02 ) (0.03 )
Interest adjustments, after pro forma tax effect (c)
Tax adjustments (b) (0.01 ) (0.16 ) (0.01 ) (0.09 )
------- ---- ------- ---- ------- ---- ------- ----
Total discrete items 0.22 (0.11 ) 0.41 0.06
------- ------- ---- ------- -------
Pro forma diluted earnings per share from continuing operations $ 0.86 $ 0.65 $ 2.80 $ 2.42
==== ======= ==== ======= ==== ======= ==== =======
Pro forma earnings reconciliation from Total
Company
---------------------------------------------------------------------
Net earnings as reported $ 86,207 $ 97,354 $ 319,309 $ 315,496
Discrete items:
ROTC, after pro forma tax effect (a) 29,499 9,420 52,992 20,833
(2,859 ) (3,413 ) (2,859 ) (3,413 )
Interest adjustments, after pro forma tax effect (c)
Tax adjustments (b) (1,264 ) (18,990 ) (1,264 ) (10,581 )
Transaction costs and other charges, after pro forma tax effect (d) 4,321 5,319 7,444 5,319
------- ------- ------- -------
Total discrete items 29,697 (7,664 ) 56,313 12,158
------- ------- ---- ------- -------
Pro forma earnings $ 115,904 $ 89,690 $ 375,622 $ 327,654
==== ======= ==== ======= ==== ======= ==== =======
Diluted earnings per share as reported $ 0.73 $ 0.82 $ 2.71 $ 2.67
Discrete items:
ROTC, after pro forma tax effect (a) 0.25 0.08 0.44 0.18
(0.02 ) (0.03 ) (0.02 ) (0.03 )
Interest adjustments, after pro forma tax effect (c)
Tax adjustments (b) (0.01 ) (0.16 ) (0.01 ) (0.09 )
Transaction costs and other charges, after pro forma tax effect (d) 0.04 0.05 0.07 0.04
------- ------- ------- -------
Total discrete items 0.26 (0.06 ) 0.48 0.10
------- ------- ---- ------- -------
Pro forma diluted earnings per share $ 0.99 $ 0.76 $ 3.19 $ 2.77
==== ======= ==== ======= ==== ======= ==== =======
Pro forma earnings measures exclude the items desribed below as they are
deemed to be non-recurring in nature and/or not considered by management
to be indicative of underlying operating performance. The pro forma tax
effects disclosed were calculated using applicable entity-specific U.S.
federal and/or foreign tax rates.
(a) ROTC in the quarter and year ended July 31, 2012 of $35,857 ($29,499
after pro forma tax effect of $6,358) and $66,858 ($52,992 after pro
forma tax effect of $13,866), respectively, primarily includes severance
costs related to the Company’s structural cost improvement initiatives.
ROTC in the year ended July 31, 2012 also includes expenses related to
certain employment contract obligations, and a gain on the sale of an
investment.
ROTC in the quarter and year ended July 31, 2011 of $12,584 ($9,420
after pro forma tax effect of $3,164) and $26,505 ($20,833 after pro
forma tax effect of $5,672), respectively, primarily includes severance
and other costs related to the Company’s cost reduction initiatives,
certain employment contract obligations and an increase to environmental
reserves.
(b) Provision for income taxes in the quarter and year ended July 31,
2012 includes a net benefit of $1,264 primarily related to the
settlement of certain issues with the Internal Revenue Service and the
expiration of a foreign statute of limitation, partly offset by the tax
cost of repatriation of foreign earnings.
Provision for income taxes in the quarter and year ended July 31, 2011
includes the reversal of income taxes payable of $18,990 principally
related to the resolution of a U.S. tax audit, that increased earnings
by $27,496, partly offset by the tax cost of repatriation of foreign
earnings.
Provision for income taxes in the year ended July 31, 2011 also includes
a charge of $8,409 related to tax costs associated with the
establishment of the Company’s Asian Headquarters in Singapore.
(c) Interest expense, net, in the quarter and year ended July 31, 2012
includes the reversal of accrued interest of $4,435 ($2,859 after pro
forma tax effect of $1,576) primarily relating to the settlement of
certain issues with the Internal Revenue Service as described in (b)
above.
Interest expense, net, in the quarter and year ended July 31, 2011
includes the reversal of accrued interest of $6,184 ($3,413 after pro
forma tax effect of $2,771) related to the resolution of a U.S. tax
audit as decribed in (b) above.
(d) Discontinued operations in the quarter and year ended July 31, 2012
include transaction related costs of $5,156 ($4,321 after pro forma tax
effect of $835) and $9,149 ($7,444 after pro forma tax effect of $1,705)
respectively, related to the sale of the Blood product line.
Discontinued operations in the quarter and year ended July 31, 2011
includes $7,336 ($5,319 after pro forma tax effect of $2,017) related to
the impairment of certain assets of the Blood product line.
PALL CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
(Amounts in Thousands)
YEAR ENDED
--------------------------------------------
JUL. 31, 2012 (4) JUL. 31, 2011 (4)
------------------- -------------------
Net cash provided by operating activities $ 474,848 $ 429,987
---- -------- ---- --------
Investing activities:
Acquisitions of businesses (167,638 ) -
Capital expenditures (158,909 ) (160,771 )
Proceeds from sale of assets 26,551 1,971
Other (9,829 ) (17,741 )
-------- ---- -------- ----
Net cash used by investing activities (309,825 ) (176,541 )
-------- ---- -------- ----
Financing activities:
Dividends paid (88,955 ) (77,641 )
Repayments of notes payable and long-term borrowings (10,422 ) (88,743 )
Purchase of treasury stock (121,164 ) (149,907 )
Other 47,319 73,106
-------- --------
Net cash used by financing activities (173,222 ) (243,185 )
-------- ---- -------- ----
Cash flow for period (8,199 ) 10,261
Cash and cash equivalents at beginning of year 557,766 498,563
Effect of exchange rate changes on cash (49,293 ) 48,942
-------- ---- --------
Cash and cash equivalents at end of period $ 500,274 $ 557,766
==== ======== ==== ========
Free cash flow:
----------------------------------------------------
Net cash provided by operating activities $ 474,848 $ 429,987
Less capital expenditures 158,909 160,771
-------- --------
Free cash flow $ 315,939 $ 269,216
==== ======== ==== ========
PALL CORPORATION
SUMMARY SEGMENT PROFIT BY SEGMENT FROM CONTINUING OPERATIONS
(Unaudited)
(Dollar Amounts in Thousands)
FOURTH QUARTER ENDED (2) YEAR ENDED (2)
-------------------------------------- ------------------------------------------
JUL. 31, 2012 JUL. 31, 2011 JUL. 31, 2012 JUL. 31, 2011
------------------ ------------------ -------------------- --------------------
Life Sciences
-------------------------------------------------------
Sales $ 334,640 $ 331,679 $ 1,253,594 $ 1,184,142
Cost of sales 141,031 145,354 523,902 509,950
------- ------- --------- ---------
Gross profit 193,609 186,325 729,692 674,192
% of sales 57.9 % 56.2 % 58.2 % 56.9 %
Selling, general and administrative expenses 92,026 93,691 357,722 332,635
% of sales 27.5 % 28.2 % 28.5 % 28.1 %
Research and development 15,462 13,798 52,658 49,054
------- ------- --------- ---------
Segment profit $ 86,121 $ 78,836 $ 319,312 $ 292,503
==== ======= ==== ======= ==== ========= ==== =========
% of sales 25.7 % 23.8 % 25.5 % 24.7 %
Industrial
-------------------------------------------------------
Sales $ 387,731 $ 387,037 $ 1,418,062 $ 1,333,053
Cost of sales 209,185 219,842 767,656 722,333
------- ------- --------- ---------
Gross profit 178,546 167,195 650,406 610,720
% of sales 46.0 % 43.2 % 45.9 % 45.8 %
Selling, general and administrative expenses 103,875 109,192 421,385 396,519
% of sales 26.8 % 28.2 % 29.7 % 29.7 %
Research and development 7,119 9,510 30,274 31,452
------- ------- --------- ---------
Segment profit $ 67,552 $ 48,493 $ 198,747 $ 182,749
==== ======= ==== ======= ==== ========= ==== =========
% of sales 17.4 % 12.5 % 14.0 % 13.7 %
Consolidated:
-------------------------------------------------------
Segment profit $ 153,673 $ 127,329 $ 518,059 $ 475,252
Corporate services group 14,338 15,370 64,114 61,125
------- ------- --------- ---------
Operating profit 139,335 111,959 453,945 414,127
% of sales 19.3 % 15.6 % 17.0 % 16.5 %
ROTC 35,857 12,584 66,858 26,505
Interest expense, net 2,495 (273 ) 20,177 18,903
------- ------- ---- --------- ---------
Earnings from continuing operations before income taxes $ 100,983 $ 99,648 $ 366,910 $ 368,719
==== ======= ==== ======= ==== ========= ==== =========
PALL CORPORATION
SUPPLEMENTAL SEGMENT SALES INFORMATION BY MARKET AND REGION
FROM CONTINUING OPERATIONS
(Unaudited)
(Dollar Amounts in Thousands)
EXCHANGE % CHANGE
RATE IN LOCAL
FOURTH QUARTER ENDED JUL. 31, 2012 JUL. 31, 2011 % CHANGE IMPACT CURRENCY
----------------------- -------------- -------------- -------- ---------------- -------------------------
Life Sciences (2) |-------------- Increase/(Decrease) -------------|
-----------------------
By Market:
BioPharmaceuticals $ 217,591 $ 199,865 8.9 $ (14,359 ) 16.1
Food & Beverage 65,561 77,810 (15.7 ) (5,153 ) (9.1 )
Medical 51,488 54,004 (4.7 ) (3,561 ) 1.9
------- ------- ------- -
Total Life Sciences $ 334,640 $ 331,679 0.9 $ (23,073 ) 7.8
==== ======= ==== ======= ===== ======= =
By Region:
Americas $ 114,514 $ 94,770 20.8 $ (1,441 ) 22.4
Europe 145,965 168,912 (13.6 ) (19,493 ) (2.0 )
Asia 74,161 67,997 9.1 (2,139 ) 12.2
------- ------- ------- -
Total Life Sciences $ 334,640 $ 331,679 0.9 $ (23,073 ) 7.8
==== ======= ==== ======= ===== ======= =
Industrial
-----------------------
By Market:
Process Technologies $ 235,506 $ 241,349 (2.4 ) $ (14,974 ) 3.8
Aerospace 68,669 58,566 17.3 (2,097 ) 20.8
Microelectronics 83,556 87,122 (4.1 ) (2,293 ) (1.5 )
------- ------- ------- -
Total Industrial $ 387,731 $ 387,037 0.2 $ (19,364 ) 5.2
==== ======= ==== ======= ===== ======= =
By Region:
Americas $ 141,226 $ 116,542 21.2 $ (2,033 ) 22.9
Europe 107,431 118,550 (9.4 ) (13,958 ) 2.4
Asia 139,074 151,945 (8.5 ) (3,373 ) (6.3 )
------- ------- ------- -
Total Industrial $ 387,731 $ 387,037 0.2 $ (19,364 ) 5.2
==== ======= ==== ======= ===== ======= =
Total Sales:
Continuing operations $ 722,371 $ 718,716 0.5 $ (42,437 ) 6.4
Discontinued operations 61,333 61,683 (0.6 ) $ (2,103 ) 2.8
------- ------- ----- ------- -
Total Sales $ 783,704 $ 780,399 0.4 $ (44,540 ) 6.1
==== ======= ==== ======= ===== ======= =
PALL CORPORATION
SUPPLEMENTAL SEGMENT SALES INFORMATION BY MARKET AND REGION
FROM CONTINUING OPERATIONS
(Unaudited)
(Dollar Amounts in Thousands)
EXCHANGE % CHANGE
RATE IN LOCAL
YEAR ENDED JUL. 31, 2012 JUL. 31, 2011 % CHANGE IMPACT CURRENCY
----------------------- ---------------- ---------------- -------- ---------------- -------------------------
Life Sciences (2) |-------------- Increase/(Decrease) -------------|
-----------------------
By Market:
BioPharmaceuticals $ 816,920 $ 738,010 10.7 $ (9,656 ) 12.0
Food & Beverage 241,514 245,585 (1.7 ) (4,800 ) 0.3
Medical 195,160 200,547 (2.7 ) (2,806 ) (1.3 )
--------- --------- ------- -
Total Life Sciences $ 1,253,594 $ 1,184,142 5.9 $ (17,262 ) 7.3
==== ========= ==== ========= ===== ======= =
By Region:
Americas $ 384,757 $ 345,273 11.4 $ (2,439 ) 12.1
Europe 606,397 605,539 0.1 (18,725 ) 3.2
Asia 262,440 233,330 12.5 3,902 10.8
--------- --------- -------
Total Life Sciences $ 1,253,594 $ 1,184,142 5.9 $ (17,262 ) 7.3
==== ========= ==== ========= ===== ======= =
Industrial
-----------------------
By Market:
Process Technologies $ 875,249 $ 804,594 8.8 $ (11,676 ) 10.2
Aerospace 230,967 207,685 11.2 (2,085 ) 12.2
Microelectronics 311,846 320,774 (2.8 ) 4,305 (4.1 )
--------- --------- -------
Total Industrial $ 1,418,062 $ 1,333,053 6.4 $ (9,456 ) 7.1
==== ========= ==== ========= ===== ======= =
By Region:
Americas $ 455,227 $ 434,490 4.8 $ (2,998 ) 5.5
Europe 416,555 389,982 6.8 (17,221 ) 11.2
Asia 546,280 508,581 7.4 10,763 5.3
--------- --------- -------
Total Industrial $ 1,418,062 $ 1,333,053 6.4 $ (9,456 ) 7.1
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Total Sales:
Continuing operations $ 2,671,656 $ 2,517,195 6.1 $ (26,718 ) 7.2
Discontinued operations 230,826 223,721 3.2 $ (1,655 ) 3.9
--------- --------- ----- ------- -
Total Sales $ 2,902,482 $ 2,740,916 5.9 $ (28,373 ) 6.9
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SOURCE: Pall Corporation
Pall Corporation
Brent Jones
Vice President - Finance
Telephone: 516-801-9848
Email: investor_relations@pall.com
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