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Pall Corp. shares fall with earnings report

Pall Corp. chief executive Eric Krasnoff outside of

Pall Corp. chief executive Eric Krasnoff outside of the company's headquarters in Port Washington. Krasnoff says he will leave his post at the company Oct. 3, 2011. Credit: Ed Betz, 2009

News of a decline in profitability in a key segment of its business -- the industrial division -- sent shares of Pall Corp. down nearly 10 percent in a single day Thursday.

Pall Corp. issued a preliminary earnings report saying its overall profit increased substantially in the final quarter of its fiscal year; and for the full fiscal year, the company earned $315.5 million compared with a profit of $241.2 million the year before. And fiscal 2011 revenue was $2.74 billion, up 14 percent compared to fiscal 2010.

But despite the good news on overall earnings, Pall's share price declined from $48.82 to close at $44.03 Thursday.

Analysts told Bloomberg News and the Associated Press that they were lowering their expectations for the stock due to a decline in operating profit in its industrial division. Pall reported operating profit of $52 million in the industrial division, an $18 million decline compared to the same quarter in the previous year.

Port Washington-based Pall Corp. makes filtration and purification systems.

“Pall Industrial fell short of what we anticipated,” Eric Krasnoff, the chief executive officer, said in a Thursday news release. “The end result is that the fourth quarter is a disappointing finish to an otherwise good year.”

In the fourth quarter, revenue rose 15 percent to $780.4 million, surpassing analyst expectations of $760.9 million.

The company's audited full-year and quarterly earnings reports are due to be filed next week.

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