Pall Corporation Reports First Quarter Results
PORT WASHINGTON, N.Y., November 25, 2014 -- Pall Corporation (NYSE:PLL) today reported financial results for the first quarter of fiscal year 2015 which ended October 31, 2014.
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| ▪ | Sales in the quarter increased 11%; up 13% in local currency |
| |
| ▪ | Orders in the quarter grew 8%; up 11% in local currency |
| |
| ▪ | Diluted EPS in the quarter of $0.81, up 29%; pro forma diluted EPS of $0.89, up 27% |
First Quarter Sales and Earnings Overview
First quarter sales were $696.5 million compared to $629.8 million last year, an increase of 11%. Sales in local currency (“LC”) were up 13%, and about 9% excluding acquisitions. Diluted EPS were $0.81 in the quarter, compared to $0.63 last year. Pro forma diluted EPS(1) were $0.89, a 27% increase compared to $0.70 a year earlier, including a detriment of approximately $0.05 from foreign currency translation.
Larry Kingsley, Pall Chairman and CEO, said, “We delivered an exceptional quarter. Organic revenue growth was 9 percent, operating margin expanded 210 basis points and free cash flow was 118 percent of net income.”
Life Sciences – First Quarter Highlights
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| | | | | | | | | | | | | | |
| (Dollar Amounts in Millions and Discussion of Sales Changes are in Local Currency) |
| | | | | | | | | |
| Sales: | | OCT. 31, 2014 | | OCT. 31, 2013 | | % CHANGE | | % CHANGE IN LC |
| BioPharmaceuticals | | $ | 227 |
| | $ | 196 |
| | 16 |
| | 18 |
|
| Food & Beverage | | 43 |
| | 43 |
| | (1 | ) | | 4 |
|
| Medical | | 53 |
| | 56 |
| | (4 | ) | | (2 | ) |
| Total Consumables | | 323 |
| | 295 |
| | 9 |
| | 12 |
|
| Systems | | 29 |
| | 24 |
| | 24 |
| | 28 |
|
| Total Life Sciences segment | | $ | 352 |
| | $ | 319 |
| | 11 |
| | 14 |
|
| | | | | | | | | |
| Gross profit | | $ | 199 |
| | $ | 182 |
| | | | |
| % of sales | | 56.3 |
| | 57.1 |
| | | | |
| Segment profit | | $ | 86 |
| | $ | 73 |
| | | | |
| % of sales | | 24.5 |
| | 22.9 |
| | | | |
BioPharmaceuticals: Consumables sales grew 18% compared to last year, on overall market strength, the benefit of acquisitions and to some extent easier compares and timing of shipments.
Food and Beverage: Consumables sales were up 4% compared to last year, on growth in the Americas and Asia.
Medical: Consumables sales declined 2% compared to last year, on lower OEM and blood media sales.
Systems: Sales were up 28% compared to last year, on timing of BioPharmaceuticals and Food & Beverage projects.
Industrial – First Quarter Highlights
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| | | | | | | | | | | | | | |
| (Dollar Amounts in Millions and Discussion of Sales Changes are in Local Currency) | | |
| | | | | | | | | |
| Sales: | | OCT. 31, 2014 | | OCT. 31, 2013 | | % CHANGE | | % CHANGE IN LC |
| Process Technologies | | $ | 145 |
| | $ | 125 |
| | 16 |
| | 19 |
|
| Aerospace | | 62 |
| | 59 |
| | 5 |
| | 6 |
|
| Microelectronics | | 75 |
| | 71 |
| | 5 |
| | 8 |
|
| Total Consumables | | 282 |
| | 255 |
| | 10 |
| | 13 |
|
| Systems | | 62 |
| | 56 |
| | 12 |
| | 16 |
|
| Total Industrial segment | | $ | 344 |
| | $ | 311 |
| | 11 |
| | 13 |
|
| | | | | | | | | |
| Gross profit | | $ | 163 |
| | $ | 144 |
| | | | |
| % of sales | | 47.3 |
| | 46.2 |
| | | | |
| Segment profit | | $ | 64 |
| | $ | 50 |
| | | | |
| % of sales | | 18.7 |
| | 16.2 |
| | | | |
Process Technologies: Consumables sales increased 19% compared to last year, on double-digit growth in Fuels & Chemicals and benefit from our recent acquisition of Filter Specialists, Inc.
Aerospace: Consumables sales increased 6% compared to last year, on strong Military OEM and helicopter program sales.
Microelectronics: Consumables sales grew 8% compared to last year, on continuing strength in Asia, particularly in E-materials.
Systems: Sales increased 16% compared to last year, on timing of Fuels & Chemicals projects.
Conclusion/Outlook
Kingsley concluded, “The dramatic strengthening of the U.S. Dollar, which began during our first quarter, will be a very significant earnings headwind for the year. However, our operating momentum provides us with confidence that we can largely offset FX and deliver a full year outlook consistent with our original guidance. We continue to expect pro forma diluted EPS for fiscal 2015 to be in the range of $3.75 to $3.95 per share. This is an increase of between 9 to 15% over fiscal 2014.”
Conference Call
On Tuesday, November 25, 2014, at 8:30 am ET, Pall Corporation will host a conference call to review these results. The call can be accessed at www.pall.com/investor. The webcast will be archived for 30 days.
About Pall Corporation
Pall Corporation (NYSE:PLL) is a filtration, separation and purification leader providing solutions to meet the critical fluid management needs of customers across the broad spectrum of life sciences and industry. Pall works with customers to advance health, safety and environmentally responsible technologies. The Company’s engineered products enable process and product innovation and minimize emissions and waste. Pall Corporation is an S&P 500 company serving customers worldwide. Follow us on Twitter @PallCorporation or visit www.pall.com.
Forward-Looking Statements
The matters discussed in this press release contain “forward-looking statements” as defined in the Private Securities Litigation Reform Act of 1995. Results for the first quarter of fiscal year 2015 are preliminary until our Form 10-Q is filed with the Securities and Exchange Commission on or before December 10, 2014. Forward-looking statements are those that address activities, events or developments that we intend, expect, project, believe or anticipate will or may occur in the future. All statements regarding future performance, earnings
projections, earnings guidance, management’s expectations about our future cash needs and effective tax rate, and other future events or developments are forward-looking statements. Forward-looking statements are those that use terms such as “may,” “will,” “expect,” “believe,” “intend,” “should,” “could,” “anticipate,” “estimate,” “forecast,” “project,” “plan,” “predict,” “potential,” and similar expressions. Forward-looking statements contained in this and other written and oral reports are based on management’s assumptions and assessments in light of past experience and trends, current conditions, expected future developments and other relevant factors.
Our forward-looking statements are subject to risks and uncertainties and are not guarantees of future performance, and actual results, developments and business decisions may differ materially from those envisaged by our forward-looking statements. Such risks and uncertainties include, but are not limited to, those discussed in Part I-Item 1A.-Risk Factors in the 2014 Form 10-K, and other reports we file with the Securities and Exchange Commission, including: the impact of disruptions in the supply of raw materials and key components for our products from suppliers, including limited or single source suppliers; the impact of terrorist acts, conflicts and wars or natural disasters; the extent to which special U.S. and foreign government laws and regulations, such as the Foreign Corrupt Practices Act and the U.K. Bribery Act, and regulations and procurement policies and practices, including regulations on import-export control, may expose us to liability or impair our ability to compete in international markets; the impact of a significant disruption in, or breach in security of, our information technology systems or we fail to implement, manage or integrate new systems, software and technologies successfully; the impact of economic, political, social and regulatory instability in emerging markets, and other risks characteristic of doing business in emerging markets; fluctuations in foreign currency exchange rates and interest rates; our ability to successfully complete or integrate acquisitions; product defects and unanticipated use or inadequate disclosure with respect to our products; our ability to develop innovative and competitive new products; the impact of global and regional economic conditions and legislative and political developments; our ability to comply with a broad array of regulatory requirements; the loss of one or more members of our senior management team and our ability to recruit and retain qualified management personnel; changes in the demand for our products and business relationships with key customers and suppliers; changes in product mix and product pricing, particularly with systems products and associated hardware and devices for our consumable filtration products; our ability to deliver our backlog on time; increases in manufacturing and operating costs and/or our ability to achieve the savings anticipated from our structural cost improvement initiative; the impact of environmental, health and safety laws and regulations, and violations; our ability to enforce patents or protect proprietary products and manufacturing techniques; costs and outcomes of pending or future litigation and the availability of insurance or indemnification rights; changes in our effective tax rate; the impact of certain risks associated with potential labor disruptions; our ability to compete effectively in domestic and global markets; and the effect of the restrictive covenants in our debt facilities. Factors or events that could cause our actual results to differ may emerge from time to time, and it is not possible for us to predict all of them. We make these statements as of the date of this disclosure and undertake no obligation to update them, whether as a result of new information, future developments or otherwise.
Management uses certain non-GAAP measurements to assess the Company’s current and future financial performance. The non-GAAP measurements do not replace the presentation of the Company’s GAAP financial results. These measurements provide supplemental information to assist management in analyzing the Company’s financial position and results of operations. The Company has chosen to provide this information to facilitate meaningful comparisons of past, present and future operating results and as a means to emphasize the results of ongoing operations. Reconciliations of the non-GAAP financial measures used throughout this release to the most directly comparable GAAP measures appear in the accompanying tables at the end of this document and are also available on Pall’s website at www.pall.com/investor.
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| | | | | | | | |
| PALL CORPORATION |
| CONDENSED CONSOLIDATED BALANCE SHEETS |
| (Unaudited) |
| (Amounts in Thousands) |
| | | | | |
| | | OCT. 31, 2014 | | JUL. 31, 2014 |
| | | | | |
| Assets: | | | | |
| | | | | |
| Cash and cash equivalents | | $ | 1,001,481 |
| | $ | 964,110 |
|
| Accounts receivable | | 561,013 |
| | 615,713 |
|
| Inventories | | 401,524 |
| | 404,878 |
|
| Other current assets | | 156,855 |
| | 152,522 |
|
| Total current assets | | 2,120,873 |
| | 2,137,223 |
|
| | | | | |
| Property, plant and equipment | | 773,373 |
| | 805,327 |
|
| Other assets | | 881,288 |
| | 909,963 |
|
| Total assets | | $ | 3,775,534 |
| | $ | 3,852,513 |
|
| | | | | |
| Liabilities and Stockholders' Equity: | | | | |
| | | | | |
| Short-term debt | | $ | 807,520 |
| | $ | 512,898 |
|
| Accounts payable, income taxes and other current liabilities | 531,299 |
| | 584,748 |
|
| Total current liabilities | | 1,338,819 |
| | 1,097,646 |
|
| | | | | |
| Long-term debt, net of current portion | | 375,593 |
| | 375,826 |
|
| Deferred taxes and other non-current liabilities | | 466,281 |
| | 483,684 |
|
| Total liabilities | | 2,180,693 |
| | 1,957,156 |
|
| | | | | |
| Stockholders' equity | | 1,594,841 |
| | 1,895,357 |
|
| Total liabilities and stockholders' equity | | $ | 3,775,534 |
| | $ | 3,852,513 |
|
|
| | | | | | | | |
| PALL CORPORATION |
| CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS |
| (Unaudited) |
| (Amounts in Thousands, Except Per Share Data) |
| | | | | |
| | | FIRST QUARTER ENDED |
| | | OCT. 31, 2014 | | OCT. 31, 2013 |
| | | | | |
| Net sales | | $ | 696,492 |
| | $ | 629,779 |
|
| Cost of sales | | 335,084 |
| | 304,065 |
|
| Gross profit | | 361,408 |
| | 325,714 |
|
| % of sales | | 51.9% |
| | 51.7% |
|
| Selling, general and administrative expenses | | 202,656 |
| | 194,884 |
|
| % of sales | | 29.1% |
| | 30.9% |
|
| Research and development | | 24,777 |
| | 23,267 |
|
| Operating profit | | 133,975 |
| | 107,563 |
|
| % of sales | | 19.2% |
| | 17.1% |
|
Restructuring and other charges ("ROTC") (2) | | 9,240 |
| | 9,198 |
|
| Interest expense, net | | 6,702 |
| | 5,977 |
|
| Earnings before income taxes | | 118,033 |
| | 92,388 |
|
| Provision for income taxes | | 29,760 |
| | 20,875 |
|
| Net earnings | | $ | 88,273 |
| | $ | 71,513 |
|
| | | | | |
| Average shares outstanding: | | | | |
| Basic | | 108,081 |
| | 111,870 |
|
| Diluted | | 109,219 |
| | 113,135 |
|
| | | | | |
| Earnings per share: | | | | |
| Basic | | $ | 0.82 |
| | $ | 0.64 |
|
| Diluted | | $ | 0.81 |
| | $ | 0.63 |
|
| | | | | |
| Pro forma diluted earnings per share: | | $ | 0.89 |
| | $ | 0.70 |
|
|
| | | | | | | | | | | | |
| PALL CORPORATION | |
| RECONCILIATION OF PRO FORMA EARNINGS | |
| (Unaudited) | |
| (Amounts in Thousands, Except Per Share Data) | |
| | | | | | | |
| | | FIRST QUARTER ENDED | | |
| | | OCT. 31, 2014 | | OCT. 31, 2013 | | |
| | | | | | | |
| Net earnings as reported | | $ | 88,273 |
| | $ | 71,513 |
| | |
| Discrete items: | | | | | | |
ROTC, after pro forma tax effect (2) | | 8,725 |
| | 7,518 |
| | |
| Total discrete items | | 8,725 |
| | 7,518 |
| | |
| Pro forma net earnings | | $ | 96,998 |
| | $ | 79,031 |
| | |
| | | | | | | |
| | | | | | | FISCAL YEAR |
| | | FIRST QUARTER ENDED | | 2015 (ESTIMATE |
| | | OCT. 31, 2014 | | OCT. 31, 2013 | | AT MIDPOINT) |
| | | | | | | |
| Diluted earnings per share as reported | | $ | 0.81 |
| | $ | 0.63 |
| | $ | 3.77 |
|
| Discrete items: | | | | | | |
ROTC, after pro forma tax effect (2) | | 0.08 |
| | 0.07 |
| | 0.08 |
|
| Total discrete items | | 0.08 |
| | 0.07 |
| | 0.08 |
|
| Pro forma diluted earnings per share | | $ | 0.89 |
| | $ | 0.70 |
| | $ | 3.85 |
|
|
| | | | | | | | |
| PALL CORPORATION |
| CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS |
| (Unaudited) |
| (Amounts in Thousands) |
| | | | | |
| | | QUARTER ENDED |
| | | OCT. 31, 2014 | | OCT. 31, 2013 |
| | | | | |
| Net cash provided by operating activities | | $ | 114,537 |
| | $ | 85,897 |
|
| | | | | |
| Investing activities: | | | | |
| | | | | |
| Acquisitions of businesses | | — |
| | (1,460 | ) |
| Capital expenditures | | (10,408 | ) | | (18,915 | ) |
| Proceeds from sale of assets | | 1,577 |
| | 471 |
|
| Other | | (1,444 | ) | | 2,649 |
|
| Net cash provided/(used) by investing activities | | (10,275 | ) | | (17,255 | ) |
| | | | | |
| Financing activities: | | | | |
| | | | | |
| Dividends paid | | (30,202 | ) | | (27,947 | ) |
| Notes payable and long-term borrowings/(repayments) | 299,645 |
| | 85,885 |
|
| Purchase of treasury stock | | (300,000 | ) | | (125,000 | ) |
| Other | | 838 |
| | 18,373 |
|
| Net cash used by financing activities | | (29,719 | ) | | (48,689 | ) |
| | | | | |
| Cash flow for period | | 74,543 |
| | 19,953 |
|
| Cash and cash equivalents at beginning of year | | 964,110 |
| | 936,886 |
|
| Effect of exchange rate changes on cash | | (37,172 | ) | | 11,137 |
|
| Cash and cash equivalents at end of period | | $ | 1,001,481 |
| | $ | 967,976 |
|
| | | | | |
| | | | | |
| Free cash flow: | | | | |
| Net cash provided by operating activities | | $ | 114,537 |
| | $ | 85,897 |
|
| Less capital expenditures | | 10,408 |
| | 18,915 |
|
| Free cash flow | | $ | 104,129 |
| | $ | 66,982 |
|
|
| | | | | | | | |
| PALL CORPORATION |
| SUMMARY SEGMENT PROFIT BY SEGMENT |
| (Unaudited) |
| (Dollar Amounts in Thousands) |
| | | | | |
| | | FIRST QUARTER ENDED |
| | | OCT. 31, 2014 | | OCT. 31, 2013 |
| | | | | |
| Life Sciences | | | | |
| Sales | | $ | 352,464 |
| | $ | 318,946 |
|
| Cost of sales | | 153,910 |
| | 136,867 |
|
| Gross profit | | 198,554 |
| | 182,079 |
|
| % of sales | | 56.3% |
| | 57.1% |
|
| | | | | |
| Selling, general and administrative expenses | | 97,171 |
| | 94,091 |
|
| % of sales | | 27.6% |
| | 29.5% |
|
| Research and development | | 14,903 |
| | 14,943 |
|
| Segment profit | | $ | 86,480 |
| | $ | 73,045 |
|
| % of sales | | 24.5% |
| | 22.9% |
|
| | | | | |
| Industrial | | | | |
| Sales | | $ | 344,028 |
| | $ | 310,833 |
|
| Cost of sales | | 181,174 |
| | 167,198 |
|
| Gross profit | | 162,854 |
| | 143,635 |
|
| % of sales | | 47.3% |
| | 46.2% |
|
| | | | | |
| Selling, general and administrative expenses | | 88,748 |
| | 84,829 |
|
| % of sales | | 25.8% |
| | 27.3% |
|
| Research and development | | 9,874 |
| | 8,324 |
|
| Segment profit | | $ | 64,232 |
| | $ | 50,482 |
|
| % of sales | | 18.7% |
| | 16.2% |
|
| | | | | |
| Consolidated: | | | | |
| Segment profit | | $ | 150,712 |
| | $ | 123,527 |
|
| Corporate services group | | 16,737 |
| | 15,964 |
|
| Operating profit | | 133,975 |
| | 107,563 |
|
| % of sales | | 19.2% |
| | 17.1% |
|
| ROTC | | 9,240 |
| | 9,198 |
|
| Interest expense, net | | 6,702 |
| | 5,977 |
|
| Earnings before income taxes | | $ | 118,033 |
| | $ | 92,388 |
|
|
| | | | | | | | | | | | | | | | | | |
| PALL CORPORATION |
| SUPPLEMENTAL SEGMENT SALES INFORMATION BY PRODUCT/MARKET AND REGION |
| (Unaudited) |
| (Dollar Amounts in Thousands) |
| | | | | | | | | | | |
| | | | | | | | | EXCHANGE | | % CHANGE |
| | | | | | | | | RATE | | IN LOCAL |
| FIRST QUARTER ENDED | | OCT. 31, 2014 | | OCT. 31, 2013 | | % CHANGE | | IMPACT | | CURRENCY |
| | | | | | | | | | | |
| Life Sciences | | | | | | |-------------- Increase/(Decrease) -------------| |
| By Product/Market: | | | | | | | | | | |
| BioPharmaceuticals | | $ | 226,605 |
| | $ | 196,118 |
| | 15.5 |
| | $ | (5,625 | ) | | 18.4 |
|
| Food & Beverage | | 43,168 |
| | 43,569 |
| | (0.9 | ) | | (2,109 | ) | | 3.9 |
|
| Medical | | 53,446 |
| | 55,717 |
| | (4.1 | ) | | (1,225 | ) | | (1.9 | ) |
| Total Consumables | | 323,219 |
| | 295,404 |
| | 9.4 |
| | (8,959 | ) | | 12.4 |
|
| Systems | | 29,245 |
| | 23,542 |
| | 24.2 |
| | (798 | ) | | 27.6 |
|
| Total Life Sciences | | $ | 352,464 |
| | $ | 318,946 |
| | 10.5 |
| | $ | (9,757 | ) | | 13.6 |
|
| | | | | | | | | | | |
| By Region: | | | | | | | | | | |
| Americas | | $ | 107,657 |
| | $ | 97,776 |
| | 10.1 |
| | $ | (1,799 | ) | | 11.9 |
|
| Europe | | 176,033 |
| | 161,930 |
| | 8.7 |
| | (6,135 | ) | | 12.5 |
|
| Asia | | 68,774 |
| | 59,240 |
| | 16.1 |
| | (1,823 | ) | | 19.2 |
|
| Total Life Sciences | | $ | 352,464 |
| | $ | 318,946 |
| | 10.5 |
| | $ | (9,757 | ) | | 13.6 |
|
| | | | | | | | | | | |
| | | | | | | | | | | |
| Industrial | | | | | | |
| By Product/Market: | | | | | | | | | | |
| Process Technologies | | $ | 144,926 |
| | $ | 125,078 |
| | 15.9 |
| | $ | (3,885 | ) | | 19.0 |
|
| Aerospace | | 61,811 |
| | 58,771 |
| | 5.2 |
| | (334 | ) | | 5.7 |
|
| Microelectronics | | 75,166 |
| | 71,416 |
| | 5.3 |
| | (1,715 | ) | | 7.7 |
|
| Total Consumables | | 281,903 |
| | 255,265 |
| | 10.4 |
| | (5,934 | ) | | 12.8 |
|
| Systems | | 62,125 |
| | 55,568 |
| | 11.8 |
| | (2,284 | ) | | 15.9 |
|
| Total Industrial | | $ | 344,028 |
| | $ | 310,833 |
| | 10.7 |
| | $ | (8,218 | ) | | 13.3 |
|
| | | | | | | | | | | |
| By Region: | | | | | | | | | | |
| Americas | | $ | 124,937 |
| | $ | 100,575 |
| | 24.2 |
| | $ | (1,365 | ) | | 25.6 |
|
| Europe | | 99,790 |
| | 98,696 |
| | 1.1 |
| | (4,059 | ) | | 5.2 |
|
| Asia | | 119,301 |
| | 111,562 |
| | 6.9 |
| | (2,794 | ) | | 9.4 |
|
| Total Industrial | | $ | 344,028 |
| | $ | 310,833 |
| | 10.7 |
| | $ | (8,218 | ) | | 13.3 |
|
|
| | | | | | | | | | | | | | | | | | |
| PALL CORPORATION |
| SUPPLEMENTAL ORGANIC SALES GROWTH INFORMATION BY SEGMENT |
| (Unaudited) |
| (Dollar Amounts in Thousands) |
| | | | | | | | | | | |
| | | | | | | | | EXCHANGE | | % CHANGE |
| | | | | | | | | RATE | | IN LOCAL |
| FIRST QUARTER ENDED | | OCT. 31, 2014 | | OCT. 31, 2013 | | % CHANGE | | IMPACT | | CURRENCY |
| | | | | | | | | | | |
| | | | | | | |-------------- Increase/(Decrease) -------------| |
| Life Sciences: | | | | | | | | | | |
| Organic | | $ | 339,322 |
| | $ | 318,946 |
| | 6.4 |
| | $ | (9,757 | ) | | 9.4 |
|
| Acquisitions | | 13,142 |
| | — |
| | | | — |
| | |
| Total Life Sciences Sales | | $ | 352,464 |
| | $ | 318,946 |
| | 10.5 |
| | $ | (9,757 | ) | | 13.6 |
|
| | | | | | | | | | | |
| Industrial: | | | | | | | | | | |
| Organic | | $ | 327,139 |
| | $ | 310,833 |
| | 5.2 |
| | $ | (8,218 | ) | | 7.9 |
|
| Acquisitions | | 16,889 |
| | — |
| | | | — |
| | |
| Total Industrial Sales | | $ | 344,028 |
| | $ | 310,833 |
| | 10.7 |
| | $ | (8,218 | ) | | 13.3 |
|
| | | | | | | | | | | |
| Total Pall: | | | | | | | | | | |
| Organic | | $ | 666,461 |
| | $ | 629,779 |
| | 5.8 |
| | $ | (17,975 | ) | | 8.7 |
|
| Acquisitions | | 30,031 |
| | — |
| | | | — |
| | |
| Total Pall Sales | | $ | 696,492 |
| | $ | 629,779 |
| | 10.6 |
| | $ | (17,975 | ) | | 13.4 |
|
Notes to release:
| |
| (1) | Pro forma earnings measures exclude the items described below in footnote 2 as they are deemed to be non-recurring in nature and/or not considered by management to be indicative of underlying operating performance. The pro forma tax effects disclosed were calculated using applicable entity-specific tax rates. |
| |
| (2) | ROTC in the quarter ended October 31, 2014 of $9,240 ($8,725 after pro forma tax effect of $515) primarily includes severance costs related to the Company's structural cost improvement initiative. |
ROTC in the quarter ended October 31, 2013 of $9,198 ($7,518 after pro forma tax effect of $1,680) primarily includes severance costs related to the Company's structural cost improvement initiative and an adjustment to environmental reserves.
# # #
Contact:
Pall Corporation
R. Brent Jones
Senior Vice President Corporate Development & Treasurer
Telephone: 516-801-9871
