CLARCOR Inc. (NYSE: CLC): -0- *T Unaudited Fiscal Second Quarter
and Six Months 2005 Highlights (Amounts in thousands, except per
share data and percentages)
----------------------------------------------------------------------
Quarter Ended % Six Months Ended % 5/28/05 5/29/04 Change 5/28/05
5/29/04 Change -------- -------- ------ -------- -------- ------
Net Sales $219,786 $198,712 10.6 $416,047 $373,984 11.2 Operating
Profit $27,553 $23,793 15.8 $48,633 $41,606 16.9 Net Earnings
$17,346 $14,914 16.3 $30,500 $26,575 14.8 Diluted Earnings Per
Share $0.33 $0.29 13.8 $0.58 $0.51 13.7
----------------------------------------------------------------------
Note: All per share amounts have been adjusted for a 2-for-1 stock
split which became effective in April 2005. *T -0- *T Second
Quarter and Six Months 2005 Operating Review *T CLARCOR Inc. (NYSE:
CLC) reported today that second quarter 2005 net earnings increased
by 16% and diluted earnings per share rose by 14% compared to the
same quarter in 2004. Sales increased by 11% compared to the prior
year's second quarter, and operating profit climbed by 16%. For the
six-month 2005 period, sales increased by 11%, and net earnings and
diluted earnings per share gained 15% and 14%, respectively,
compared to 2004. Norm Johnson, CLARCOR's Chairman and Chief
Executive Officer, said, "We are pleased to report double-digit
earnings growth in the second quarter of 2005 on an 11% increase in
sales compared to the second quarter in 2004. Operating margins
rose from 12.0% last year to 12.5% this year. Sales and operating
profit improved at each of our operating segments in the second
quarter compared to the same quarter in 2004, both domestically and
internationally. For this year's second quarter and also for the
six-month period, foreign currency fluctuations did not have a
material impact on either sales or operating profit. "Engine/Mobile
Filtration sales rose by nearly 13% from last year's second
quarter. Sales to heavy-duty aftermarket independent distributors
were strong in the first quarter of 2005 and this continued
throughout the second quarter. Our initiatives to increase sales to
original equipment manufacturers and, particularly, OEM dealers
have been successful and are now at a level where the impact on
reported revenues is evident. We expect to show further growth
throughout 2005 and into next year. Sales at Baldwin Weifang, our
operation in Weifang, China, have risen nearly twofold from the
second quarter last year. Baldwin Weifang is now one of our largest
international operations within this segment. We expect
double-digit revenue growth there for the foreseeable future.
"Industrial/Environmental Filtration sales increased by nearly 9%
from the second quarter of last year. This includes $7.5 million in
sales from Purolator EFP which we acquired in the fourth quarter of
2004 and from Niagara Ltd. which we acquired in the second quarter
of 2005. Operating profit grew by 3%. HVAC filter sales, for both
residential and commercial markets, are still slow. This is
particularly true for maintenance filters sold to automobile and
automobile parts manufacturers. We expect this trend will continue
for the rest of 2005. Demand remains good, however, for most of our
other product lines in this segment. Sales of waste water treatment
systems, aviation fuel filtration systems, filters for oil drilling
and filters for plastic and polymer production were particularly
strong in the second quarter. "Packaging segment sales improved by
11% this quarter compared to last year, and operating profit
increased by over 40%. Operating margins increased to 8.7% this
quarter from 6.6% in the second quarter last year, and were driven
primarily by cost reduction initiatives implemented over the last
several years. Sales of both metal and plastic products increased
during the quarter. This segment's sales have become much less
seasonal over the last few years as its sales mix has changed from
promotional products sold largely in the last half of the year to
products sold on a continual basis throughout the year. We
anticipate that second half sales will be a little stronger than
the sales run rate in the second quarter of 2005. Margins are
expected to be consistent with those recorded in the second
quarter. "There was little change in other income compared to last
year's second quarter and our tax rate stayed at approximately
36.3%. Capital expenditures reached $11 million for the six-month
period just ended compared to $9 million in the six-month period a
year earlier. We expect capital expenditures to be $20 million to
$22 million for 2005 compared to $22 million in 2004. We are
investing significantly more capital this year in new technologies,
particularly new media development. We plan to expand the capacity
of our operations in China to manufacture a wider range of our
filter products that will sell mostly in Chinese and Southeast
Asian markets. We will also complete the building of a new aviation
fuel filter testing center in Greensboro, North Carolina later this
year. "Cash flow continues to be strong and cash from operations
rose to $28 million this quarter from $19 million in last year's
second quarter. We expect to continue to accumulate cash during the
balance of this year provided we do not make any acquisitions. We
are always evaluating acquisition opportunities, and hope to
complete several later this year. With our consistent cash flow and
significant borrowing capacity we are able to fund ongoing
operations and our current development and expansion plans, and
continue to pay dividends. "Based on our first half results and
current backlog, we expect diluted earnings per share for 2005 to
be $1.32 to $1.38. This estimate does not include the impact of
stock option expense as implementation of this accounting change
has been delayed until the first quarter of 2006. We estimate that,
for fiscal 2006, the impact from expensing stock options will be
approximately $0.04 per share. We continue to monitor changes in
commodity prices closely, particularly for steel and petroleum
products, and have aggressively put through price increases to
reflect increases in our costs, whenever possible. We are confident
that CLARCOR will have a record 2005 and post its 13th consecutive
year of increased earnings." CLARCOR will be holding a conference
call to discuss the second quarter results at 10:00 am CDT on June
16, 2005. Interested parties can listen to the conference call at
www.clarcor.com or www.viavid.net. A replay will be available on
these websites, and also by providing access code 5149154 at
888-203-1112 or 719-457-0820. The replay will be available through
June 23, 2005 by telephone and for 30 days on the Internet. CLARCOR
is based in Franklin, Tennessee, and is a diversified marketer and
manufacturer of mobile, industrial and environmental filtration
products and consumer and industrial packaging products sold in
domestic and international markets. Common shares of the Company
are traded on the New York Stock Exchange under the symbol CLC. The
statements in this release concerning the Company's sales,
earnings, business performance and prospects are forward-looking
statements that involve significant risks and uncertainties,
including the effect of changes in product demand, availability of
labor, price and product competition, raw material costs, health
care costs, energy prices, productivity improvement and plant
consolidation programs, distribution channels, acquisitions and
divestitures, general economic conditions in both domestic and
foreign markets, interest rates, currency fluctuations, the success
of our Total Filtration Program, the success of sales and marketing
programs, the cost of compliance with recently enacted regulatory
requirements, the effect of changes in accounting rules and other
factors discussed in filings made with the Securities and Exchange
Commission. TABLES FOLLOW -0- *T CONSOLIDATED STATEMENTS OF
EARNINGS (Dollars in thousands except per share data) Per Share
Data Restated for 2-for-1 Stock Split Effective April 29, 2005 For
periods ended Second Quarter Six Months May 28, 2005 and
------------------------ ------------------------- May 29, 2004
2005 2004 2005 2004 ------------------------------ ------------
------------ ------------ Net sales $ 219,786 $ 198,712 $ 416,047 $
373,984 Cost of sales 153,700 137,613 292,942 261,401 -----------
----------- ----------- ----------- Gross profit 66,086 61,099
123,105 112,583 Selling and administrative expenses 38,533 37,306
74,472 70,977 ----------- ----------- ----------- -----------
Operating profit 27,553 23,793 48,633 41,606 Other income (expense)
(95) (217) (407) 368 ----------- ----------- -----------
----------- Earnings before income taxes and minority interests
27,458 23,576 48,226 41,974 Income taxes 9,973 8,567 17,509 15,270
----------- ----------- ----------- ----------- Earnings before
minority interests 17,485 15,009 30,717 26,704 Minority interests
in earnings of subsidiaries (139) (95) (217) (129) -----------
----------- ----------- ----------- Net earnings $ 17,346 $ 14,914
$ 30,500 $ 26,575 =========== =========== =========== ===========
Net earnings per common share: Basic $ 0.34 $ 0.29 $ 0.59 $ 0.52
=========== =========== =========== =========== Diluted $ 0.33 $
0.29 $ 0.58 $ 0.51 =========== =========== =========== ===========
Average shares outstanding: Basic 51,631,794 50,871,720 51,528,689
50,804,746 Diluted 52,418,831 51,745,840 52,316,801 51,682,644 *T
-0- *T CONSOLIDATED BALANCE SHEETS (Dollars in thousands) May 28,
November 27, 2005 2004 ---------- ------------ Assets Current
assets: Cash and cash investments $ 27,600 $ 22,520 Accounts
receivable, net 145,831 143,719 Inventories 120,804 115,571 Other
22,824 22,180 --------- --------- Total current assets 317,059
303,990 Plant assets, net 142,230 142,242 Acquired intangibles, net
150,700 147,789 Pension assets 24,418 24,574 Other assets 9,185
9,202 --------- --------- $ 643,592 $ 627,797 ========= =========
Liabilities Current liabilities: Current portion of long-term debt
$ 191 $ 420 Accounts payable and accrued liabilities 105,105
117,859 Income taxes 13,998 7,993 --------- --------- Total current
liabilities 119,294 126,272 Long-term debt 16,029 24,130 Long-term
pension liabilities 13,197 11,256 Other liabilities 38,316 37,677
--------- --------- 186,836 199,335 Shareholders' Equity 456,756
428,462 --------- --------- $ 643,592 $ 627,797 ========= =========
*T -0- *T SUMMARY CASH FLOWS (Dollars in thousands) Six Months
-------------------- 2005 2004 -------- -------- From Operating
Activities Net earnings $ 30,500 $ 26,575 Depreciation 10,336 9,291
Amortization 630 380 Changes in assets and liabilities (2,198)
(2,064) Other, net 118 (571) -------- -------- Total provided
(used) by operating activities 39,386 33,611 -------- -------- From
Investing Activities Plant asset additions (10,562) (9,197)
Business acquisitions (3,508) (4,871) Other, net 614 1,415 --------
-------- Total provided (used) by investing activities (13,456)
(12,653) -------- -------- From Financing Activities Net payments
under line of credit (7,500) - Payments on long-term debt (830)
(280) Cash dividends paid (6,577) (6,361) Other, net (5,679) 871
-------- -------- Total provided (used) by financing activities
(20,586) (5,770) -------- -------- Effect of exchange rate changes
on cash (264) (20) -------- -------- Change in Cash and Cash
Investments $ 5,080 $ 15,168 ======== ======== *T -0- *T QUARTERLY
INCOME STATEMENT DATA BY SEGMENT (Dollars in thousands) 2005
------------------------------- Quarter Quarter Ended Ended Six
February 26 May 28 Months ----------- --------- --------- Net sales
by segment: Engine/Mobile Filtration $ 83,129 $ 93,722 $176,851
Industrial/Environmental Filtration 97,198 106,668 203,866
Packaging 15,934 19,396 35,330 -------- -------- -------- $196,261
$219,786 $416,047 ======== ======== ======== Operating profit by
segment: Engine/Mobile Filtration $ 16,778 $ 19,629 $ 36,407
Industrial/Environmental Filtration 3,969 6,234 10,203 Packaging
333 1,690 2,023 -------- -------- -------- $ 21,080 $ 27,553 $
48,633 ======== ======== ======== Operating margin by segment:
Engine/Mobile Filtration 20.2% 20.9% 20.6% Industrial/Environmental
Filtration 4.1% 5.8% 5.0% Packaging 2.1% 8.7% 5.7% --------
-------- -------- 10.7% 12.5% 11.7% ======== ======== ======== 2004
------------------------------- Quarter Quarter Ended Ended Six
February 28 May 29 Months ----------- --------- --------- Net sales
by segment: Engine/Mobile Filtration $ 70,800 $ 82,992 $153,792
Industrial/Environmental Filtration 88,962 98,249 187,211 Packaging
15,510 17,471 32,981 -------- -------- -------- $175,272 $198,712
$373,984 ======== ======== ======== Operating profit by segment:
Engine/Mobile Filtration $ 14,425 $ 16,989 $ 31,414
Industrial/Environmental Filtration 3,252 6,076 9,328 Packaging 136
1,153 1,289 Relocation Costs - (425) (425) -------- --------
-------- $ 17,813 $ 23,793 $ 41,606 ======== ======== ========
Operating margin by segment: Engine/Mobile Filtration 20.4% 20.5%
20.4% Industrial/Environmental Filtration 3.7% 6.2% 5.0% Packaging
0.9% 6.6% 3.9% -------- -------- -------- 10.2% 12.0% 11.1%
======== ======== ======== *T
Clarcor (NYSE:CLC)
Historical Stock Chart
Von Jun 2024 bis Jul 2024
Clarcor (NYSE:CLC)
Historical Stock Chart
Von Jul 2023 bis Jul 2024