Clarcor Q3 Profit Rises - Update

(RTTNews) - Air filter maker Clarcor Inc. (CLC), Wednesday reported a surge in profit for the third quarter, driven mainly by a 38 percent jump in revenue and stronger margins. Nevertheless, revenues for the quarter fell short of Wall Street estimates, while earnings beat expectations.

Franklin, Tennessee-headquartered Clarcor's third-quarter profit rose to $41.7 million or $0.82 per share from $28.7 million or $0.57 per share for a year-ago.

Excluding special items, adjusted earnings improved to $0.83 per share from $0.67 per share last year. On average, six analysts polled by Thomson Reuters expected earnings of $0.78 per share for the third quarter. Analysts' estimates typically exclude special items.

Clarcor, which makes air and fluid filters for engines and buildings, said sales for the third quarter surged 38 percent to $400.2 million from $289.1 million a year ago. Analysts had a consensus revenue estimate of $403.05 million for the third quarter.

Sales growth reflects additional sales of $90.7 million from the three acquisitions.

"The integration of our 2014 acquisitions remain on track, and the top-line of our base business continues to grow—7% in the third quarter and 6% year-to-date from comparable periods last year—as our long-term sales growth initiatives gain traction," said CEO Chris Conway.

Engine/filtration sales rose to $165.9 million from $129.1 million, while industrial/environmental filtration division sales increased to $213.8 million from $139.7 million. Packaging segment sales was $20.5 million compared to $20.3 million last year.

Operating margin for the quarter improved to 15.6 percent from 14.5 percent last year.

For the fiscal year 2014, the company now expect adjusted earnings of $2.92 to $2.98 per share and sales of $1.50 billion to $1.53 billion. Earlier, the company expected adjusted earnings of $2.85 to $2.95 per share and sales of $1.49 billion and $1.54 billion. Analysts currently expect earnings of $2.82 per share on revenues of $1.51 billion for the fiscal year 2014.

CLC closed Wednesday's trading at $63.30, down $0.14 or 0.22%, on the NYSE. The stock, however, gained $0.20 or 0.32% in after-hours trade.