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Pall stock hits highest point since March as earnings beat expectations
Shares of Pall Corp., a maker of high-tech purification devices to filter beer, water and myriad other substances, continued to rise this morning on news that the Port Washington company released fourth-quarter earnings that beat analysts' expectations.
Pall's stock was up 8 percent to $62.88 in early trading, hitting its highest point since March. The company reported Wednesday night that sales rose modestly during June, July and August as Pall recovered from a supply-chain disruption earlier this year. Revenue edged up 0.4 percent, to $783.7 million, compared with the same period last year.
During a call with investors today, Pall chief executive Larry Kingsley said the company would embark on an aggressive three-year effort next year to acquire other companies.
“We are building an acquisition pipeline and expect that we will begin to more consistently acquire about a year from now,” said Kingsley, who joined the company in October 2011.
Despite the rise in sales, Pall's fourth-quarter net income dropped 11 percent, to $86.2 million, or 64 cents per share. That decrease stemmed in part from Pall paying $35.9 million in restructuring costs, an increase of about $23 million from the year-earlier quarter, mostly due to severance payments as the company sought to lower expenses.
Pall's fourth-quarter profits were also lower compared with 2011 because of taxes. This year, the company set aside $25.3 million. In 2011, its fourth-quarter taxes came to $9.5 million after receiving a $19 million refund following the resolution of an audit by the Internal Revenue Service.
The company, founded six decades ago by David Pall, is among the world's largest manufacturers and distributors of filters, and is the fifth largest public company on Long Island by revenue. It has roughly 11,000 employees globally, with an estimated 750 on Long Island.