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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