Pall Corporation, the leading US filtration, separation and purification provider, has reported a drop in both sales and profits for the third quarter and nine months of fiscal 2002, which ended April 27, 2002.
Pall sales for the third quarter were $302.4 million (€322.4m) compared to $321.1 million last year. Adverse foreign exchange rates reduced sales by 2% or $6.6 million. Earnings for the third quarter were $26.4 million or 21 cents per share, compared to $36.9 million. Costs incurred during the quarter to integrate the newly acquired Filtration and Separations Group had a considerable effect on earnings.
Sales for the nine months were $861.9 compared to $903.9 million last year. Foreign exchange rates reduced sales 2 per cent or $17.3 million.
Eric Krasnoff, Chairman and CEO, said, "While we are starting to see signs of a recovery, the general industrial malaise in certain key markets continues. The semiconductor and aerospace markets have been difficult across all geographies. We still expect this to continue through to the end of this fiscal year. Earnings were at the high end of our expectations and exceeded Street consensus estimates in the quarter."
In the General Industrial segment sales were flat in the quarter. While the largest part of the segment, Machinery and Equipment, was down 10 per cent, there was good growth in the major non-cyclical parts of the business. The Water Processing business turned in impressive growth of 20 per cent and Food and Beverage was up 13 per cent.
Commenting on the recent acquisition of FSG, Krasnoff said: "The process of integrating our two companies is off to a quick start and continues to progress well. With the help of a consulting firm, we have put critical retention plans in place for customers and people. We already succeeded in our goal of identifying at least $15 million in cost reductions. Additional opportunities for increased sales through cross-selling are also being developed. We expect to record a charge in this year's fourth quarter when the integration plans are well advanced."
Pall Corporation is the global leader in the rapidly growing fields of filtration, separations and purification. Pall's business is organised around two broad markets: Life Sciences and Industrial. The company is headquartered in East Hills, New York and has major operations in more than 30 countries.