Clarcor shares fall on 3Q miss, guidance cut

Clarcor shares drop after 3Q miss, company cuts 2009 guidance below Wall Street expectations

• On 11:45 am EDT, Thursday September 17, 2009

HARTFORD, Conn. (AP) -- Shares of Clarcor Inc. fell Thursday, a day after the air filtration system maker posted worse-than-expected third-quarter results and cut its 2009 earnings forecast below Wall Street expectations.

The company said Wednesday its profit slid 18 percent to $21.3 million, or 42 cents per share, on revenue of $230.3 million. That fell short of the 43 cents per share expected by analysts, on revenue of $246.4 million.

The Franklin, Tenn.-based company again cut its full-year profit outlook -- to between $1.30 per share and $1.40 per share, from a prior view of $1.40 per share to $1.60 per share. In March, the company had forecast an annual profit of $1.60 to $1.75 per share.

Analyst Gary Farber of C.L. King and Associates said in a client note Thursday he views Clarcor as "a high-quality company" and attributed the per-share earnings shortfall primarily on revenue of $230 million, which was similar to the second quarter and down 17 percent from last year's third quarter.

In addition, changes in foreign currency cut into sales by about $7 million and operating profit by about $1 million, he said.

Despite the weak revenue, Clarcor showed favorable cost control, Farber said.

He maintained a "Neutral" rating.

Shares fell 99 cents, or 3 percent, to $31.99 in late morning trading.

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