) reported second-quarter fiscal 2012 earnings per share from
continuing operations of 72 cents, below the Zacks Consensus
Estimate of 82 cents but above the prior-year earnings per share of
Total revenue in the quarter increased by 8.2% year over year to
$698 million, including positive impact from foreign currency
translation of 0.2%. Orders, in terms of local currency, increased
by 3.4%. Revenue in the quarter was aided by increased sales in
both Life Sciences and Industrial segments. Emerging markets were
good contributor, with sales rising by 20%.
Segment wise, the company's revenue in Life Sciences segment
climbed by 7% in local currency to $357.2 million and in Industrial
segment was up 9.2% in local currency to $340.8 million.
Within Life Sciences, Biopharmaceuticals sales were up 12.3%,
Medical sales declined by 0.2% and Food & Beverage sales
increased by 2.4%. Within Industrial segment, Process Technologies
sales increased by 13.4%, Aerospace sales increased 16.2% while
sales of Microelectronics declined by 5.5%.
Gross margin in the quarter was 51.6% compared with 51.5% in the
second quarter of fiscal 2011.
Life Sciences operating margin was 24.8% compared with 25% and
Industrial segment operating margin was 15.4%, flat year over
Balance Sheet and Cash Flow
Cash and cash equivalents was $527.9 million with long-term debt
of $493.7 million and shareowner's equity of $1,573.8 million.
Net cash flow from operations was $204 million compared with
$155.5 million in prior-year quarter.
The company aims to achieve the mid-point or more of its
earnings guidance of $3.20. Emerging markets are good contributor
for the company. Pall continues to make investment in these
Pall's Aeropower business derives significant benefits from the
emerging markets, particularly in Asia. Key drivers include
increasing passenger air miles flown, a ramp-up in US military
budgets, new military and commercial aircraft, and demand for new
aircraft and mobile construction equipment. In the long run, Pall
will likely benefit from several secular trends, such as global
infrastructure growth, increasing demand for water filtration
systems and continued steady growth in the medical and
However, changes in product mix and product pricing may impact
the company's operating results, particularly with the expansion of
the systems business. The company experiences significantly longer
sales cycles in systems business with less predictable revenue and
no certainty of future revenue streams from related consumable
product offerings and services.
Based in New York, Pall Corporation was incorporated in July
1946. Along with its subsidiaries, Pall Corporation is a leading
supplier of filtration, separation and purification technologies,
and uses its engineering capability and fluid management
We currently maintain our Neutral rating on Pall Corporation for
the long term, with a Zacks #3 Rank (short-term Hold
recommendation) over the next one-to-three months.
PALL CORP (
): Free Stock Analysis Report
To read this article on Zacks.com click here.