PORT WASHINGTON, N.Y., June 06, 2012 - Pall Corporation (NYSE:PLL) today reported financial results for the third quarter of fiscal year 2012 which ended on April 30, 2012.
Third Quarter and Nine Months Sales and Earnings Overview
Third quarter sales were $715.2 million, an increase of about 1% (+2.6% in local currency (“LC”)) over last year. Diluted earnings per share (“EPS”) were $0.67 in the quarter, compared to $0.60 last year. Pro forma EPS were $0.70 (excluding restructuring and other charges and transaction costs, as well as items impacting provision for income taxes in the prior period, defined as “Discrete Items”). Foreign currency translation negatively impacted third quarter EPS by $0.01. This compares to $0.72 last year.
For the nine months, sales increased 8.1% over last year (+7.2% LC). Diluted EPS were $1.98 in the nine months, compared to $1.84 for the same period last year. Pro forma EPS, excluding Discrete Items, were $2.20, a 9.5% increase compared to $2.01 a year earlier, including a benefit of approximately $0.05 from translation.
Sales from continuing operations (1) in the quarter were $658.0 million, an increase of about 1% over last year (+2.5% LC). Diluted EPS from continuing operations were $0.60 in the quarter, compared to $0.52 last year. Pro forma EPS from continuing operations were $0.61 compared to $0.64 last year.
Sales from continuing operations for the nine months increased 8.4% (+7.5% LC) over last year. Diluted EPS from continuing operations were $1.74 in the nine months, compared to $1.60 for the same period last year. Pro forma EPS, excluding Discrete Items, were $1.94, a 9.6% increase compared to $1.77 a year earlier.
Larry Kingsley, President and CEO, said, “It was a difficult quarter, especially as the Eurozone struggled and our previously announced “global go-live” ERP transition disrupted our supply chain more than anticipated. As a result of this temporary disruption, certain shipments of high margin consumables were delayed and we incurred substantial additional costs to take care of our customers. The ERP transition issues are being resolved and we are making good progress in filling past due orders. We expect to have caught up with backorders by this August, which is the beginning of our FY ’13, and we are grateful for the continued patience and support of our customers.”
Noting that consumables orders increased over 3% in Life Sciences, with double digit growth in the Pharmaceutical market and low single digits in Food and Beverage, Kingsley said, “Unrelated to the temporary operational challenges in the quarter, we experienced relatively soft industrial orders in all geographies, with consumables down 8%. While the Americas order rate is strengthening in most end markets, Europe remains weak and we are taking appropriate cost actions to mitigate potential impact on FY ’13 profitability.”