FRANKLIN, Tenn. (AP) -- Clarcor Inc., which makes filters for homes, factories and automobiles, said Thursday its third-quarter net income fell 6 percent, hurt by lower-than-expected sales of heavy-duty engine filtration products in the U.S. and China.
The results fell short of Wall Street predictions and the Franklin, Tenn.-based company also cut its full-year profit guidance. Shares fell more than 9 percent in midday trading.
For the quarter ended Sept. 1, Clarcor earned $30.3 million, or 60 cents per share, down from $32.1 million, or 63 cents per share, in the same quarter last year. Revenue edged up less than a percent to $286.7 million, from $284.8 million.
Analysts, on average, expected a profit of 69 cents per share, on $298.9 million in revenue, according to a FactSet poll.
The company said sales rose at its industrial and environmental filtration business, but was offset by a drop in domestic heavy-duty engine filter aftermarket sales and unfavorable changes in foreign currency exchange rates.
Clarcor, like other companies that do significant business outside the U.S., can be hurt by a rising dollar because income earned in foreign currencies shrinks when it's translated back into a stronger U.S. dollar.
The company said that unfavorable exchange rates reduced its net sales by 2 percent, which lowered its earnings per share by a penny compared with the year-ago period.
Clarcor added that while its sales of heavy-duty engine filters in China were lower than expected, they still beat year-ago levels, helped by a recent acquisition.
Based on its third-quarter results and fourth-quarter expectations, Clarcor cut its full-year profit prediction to a range of $2.35 to $2.45 per share. It had previously projected a profit of between $2.50 and $2.65 per share. Analysts were expecting fiscal-year earnings of $2.58 per share, with estimates ranging from $2.54 to $2.63.
The guidance implies a fourth-quarter profit of between 65 cents and 75 cents per share, while analysts expect 78 cents per share, with forecasts ranging from 75 cents to 80 cents.
Clarcor shares fell $4.54, or 9.2 percent, to $45.03 in morning trading.