East Hills, NY (September 2, 2004) - - Pall Corporation (NYSE: PLL) today reported sales and earnings results for the fourth quarter and fiscal year ended July 31, 2004.
Sales for the fourth quarter increased 7% to $504.5 million compared to $471.4 million last year. Earnings on a pro forma basis amounted to $56.8 million compared to $56.0 million, or 45 cents per share in both quarters. The effect of foreign currency translation added $19.8 million or 4% to revenues and increased pro forma earnings per share by approximately 1 cent.
For the full year, sales increased 9 1/2% to $1.77 billion compared to $1.61 billion last year. Pro forma earnings for the full year increased 7 1/2% to $159.8 million, or $1.26 per share compared to last year's $148.8 million, or $1.20 per share. Foreign currency translation increased sales by 7% or $109.9 million and pro forma earnings per share by approximately 7 cents.
Reported earnings per share for the fourth quarter and full year were 44 cents and $1.20, respectively.
In the year, we recorded restructuring and other charges net of approximately $12.5 million. The charges include an increase in our environmental reserves of $21.3 million and restructuring charges of $4.4 million, partly offset by a gain of $7.6 million related to the sale of our investment in Oiltools International and non-recurring income of $5.6 million related to a decrease of pension liabilities in Germany. The environmental reserve increase relates primarily to a change in the estimated duration and costs of the remediation effort at our Ann Arbor, Michigan facility.
On September 1, the Michigan Department of Environmental Quality (MDEQ) provided Pall and the state court with its response to the Company's proposed remedial alternative regarding the Unit E aquifer, giving the Company one year to demonstrate that its proposed clean-up method is approvable as a final remedy. The MDEQ has also identified an alternative remedy that would, in the MDEQ's judgment, need to be implemented if the Company could not resolve the outstanding issues regarding the Company's remedy within one year. The MDEQ's remedial alternative would be subject to possible legal challenge as being unauthorized by law. These matters are still under investigation. The costs to implement an alternative clean-up methodology could be significant and are not reflected in the Company's balance sheet at July 31, 2004.
Eric Krasnoff, Chairman and CEO, said, “The fourth quarter showed a continued resurgence in our Industrial business. The results by segment, with sales reported in local currency, are:
Microelectronics fourth quarter sales were up 27% over last year, operating profit margins reached 20.2% and operating profit dollars increased 40%. We are capitalizing on the cyclical upturn in the semiconductor cycle and from the impact of new product introductions.
General Industrial sales increased 4 1/2%. As in the third quarter, we again grew in all five of its Industrial business divisions. The operating profit margin was 14.2% and operating profit dollars increased 21% to $27.7 million. Within General Industrial, Water Processing sales grew 3% and orders increased 32 1/2%. Power Generation's sales increased 14% and orders increased 27% over last year. Fuels and Chemicals sales were up slightly with orders up 38% over last year.
Food and Beverage grew 7%, as our Total Fluid Management strategy begins to take hold. Machinery and Equipment sales increased 4 1/2% in the quarter. This segment covers a number of cyclical industrial markets and our growth is another confirmation of a generally strengthening industrial landscape.
As we've mentioned throughout the year, non-repeating military sales associated with the Iraqi conflict led to a 6 1/2% reduction in Aerospace sales compared to last year. Commercial Aerospace posted modest growth. Aerospace operating margins were still an impressive 26.2% in the quarter.
This adds up to an overall Industrial business sales increase of 6%. Industrial's operating profit margin was 17.3% with operating profit dollars increasing about 13 1/2% to $52.3 million.
Page 2
Turning now to Life Sciences, growth in BioSciences and the core Blood Business was offset by lower sales in Pharmaceuticals and Critical Care. Sales came in at $202.5 million, a decrease of 1 1/2 %. Life Sciences operating profit margins were also down slightly at 25.5%.
Looking at the reporting segments, sales in Medical were down 1% as growth in blood bank and hospital sales were offset by a decline in the OEM portion of Critical Care. The Western Hemisphere blood business grew 7% in the quarter. Operating profit margins were 24.7%. Pall's new eBDS Bacterial Detection System and the Pall-Aquasafe(TM) Water Filters are selling well and our revolutionary Leukotrap(R) Affinity Prion Reduction Filter is on schedule for commercial launch next year.
Sales in BioPharmaceuticals were down 2% as the decline in the plasma fractionation industry offset continuing growth of biotechnology products. BioPharmaceuticals operating profit margin remained strong at 26.3%.
We are successfully executing our CoRe cost reduction programs. I am pleased to report that S, G & A as a percentage of sales reduced by 50 basis points compared to last year and by 20 basis points sequentially. The CoRe efforts are on track to deliver the savings expected.
As for the company's balance sheet and cash flow, Mr. Krasnoff said, "Our strong cash flow enabled us to repurchase $75 million of our stock, invest $66 million in capital expenditures, pay dividends of $45 million and still reduce net debt by $63 million in the year.
Looking ahead to fiscal year 2005, Mr. Krasnoff continued, "We anticipate this new fiscal year will benefit substantially from the investments made in fiscal 2004 in the CoRe cost initiatives, the benefits of which should ramp up this fiscal year. The next phase of our plan has already started and involves the rationalization of infrastructure globally. As part of this initiative, we are combining our operations into three integrated businesses: Life Sciences, comprising Medical and BioPharmaceuticals; Aeropower, comprising Aerospace and General Industrial's Machinery & Equipment business; while our remaining Industrial businesses will operate under the banner Pall Process Technologies, comprising Food & Beverage, Fuels & Chemicals, Power Generation, Municipal Water and Microelectronics. We expect these changes will propel us to reach the high end of our CoRe goals. At the same time, we will achieve greater efficiencies and profit growth with this leaner, customer-centric structure. Overall, we anticipate pro forma earnings per share for fiscal 2005 to be in the range of $1.38 to $1.52."
Page 3
Tomorrow, September 3, 2004, at 8:30 am ET, Pall Corporation will host its quarterly earnings conference call. Individuals can access the webcast on the home page of the Company's website, www.pall.com. Listening to the webcast requires speakers and Microsoft Windows Media Player software. The webcast will be archived for 30 days.
About Pall Corporation:
Pall Corporation is the global leader in the rapidly growing field of filtration, separations and purification. Pall's business is organized around two broad markets: Life Sciences and Industrial. The Company provides leading-edge products to meet the demanding needs of customers in biotechnology, pharmaceuticals, transfusion medicine, semiconductors, municipal drinking water and aerospace. Total revenues are $1.8 billion. The Company is headquartered in East Hills, New York. Further information can be found on its Web site www.pall.com.
This release contains "forward-looking statements" as defined in the Private Securities Litigation Reform Act of 1995. These statements are based on current Company expectations and are subject to risks and uncertainties, which could cause actual results to differ materially. Such risks and uncertainties include, but are not limited to: fluctuations in foreign currency exchange rates; regulatory approval and market acceptance of new technologies; changes in product mix and product pricing and in interest rates and cost of raw materials; the Company's success in enforcing its patents and protecting its proprietary products and manufacturing techniques; global and regional economic conditions and legislative, regulatory and political developments and its ability to achieve the savings anticipated from its cost reduction initiatives; and domestic and international competition in the Company's global markets.
Additional information regarding these and other factors is available on the web at www.pall.com and is included in the Company's reports filed with the U.S. Securities and Exchange Commission. Copies of such reports can be obtained, without charge, at: www.sec.gov.
Management uses certain non-GAAP measurements to assess Pall's current and future financial performance. The non-GAAP measurements do not replace the presentation of Pall's GAAP financial results. These measurements provide supplemental information to assist management in analyzing Pall's financial position and results of operations. Pall 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 on-going operations.
Page 4 -- Financial Tables Follow...
| PALL CORPORATION CONDENSED CONSOLIDATED BALANCE SHEETS | | |
| (Amounts in thousands) | | | | | | | |
| | | | | | | | |
| | | | JUL. 31, | | | AUG. 2, | |
| | | | 2004 | | | 2003 | |
|
|
|
|
|
|
| |
| Assets | | | | | | | |
| | | | | | | | |
| Cash and short-term investments | | $ | 207,277 | | $ | 149,753 | |
| Accounts receivable, net | | | 468,905 | | | 423,467 | |
| Inventories, net | | | 302,861 | | | 274,442 | |
| Other current assets | | | 90,971 | | | 90,772 | |
| | |
|
| |
|
| |
| | | | | | | | |
| Total current assets | | | 1,070,014 | | | 938,434 | |
| | | | | | | | |
| Property, plant and equipment, net | | | 600,383 | | | 600,153 | |
| Other assets | | | 471,518 | | | 478,139 | |
| | |
|
| |
|
| |
| | | | | | | | |
| Total assets | | $ | 2,141,915 | | $ | 2,016,726 | |
| | |
| |
|
| |
| | | | | | | | |
| | | | | | | | |
| | | | | | | | |
| Liabilities and Stockholders' Equity | | | | | | | |
| | | | | | | | |
| Short-term debt | | $ | 32,550 | | $ | 63,791 | |
| Accounts payable, income taxes | | | | | | | |
| and other current liabilities | | | 359,298 | | | 357,705 | |
| | |
|
| |
|
| |
| | | | | | | | |
| Total current liabilities | | | 391,848 | | | 421,496 | |
| | | | | | | | |
| Long-term debt | | | 515,617 | | | 489,870 | |
| Deferred taxes and other | | | | | | | |
| non-current liabilities | | | 180,006 | | | 170,824 | |
| | |
|
| |
|
| |
| | | | | | | | |
| Total liabilities | | | 1,087,471 | | | 1,082,190 | |
| | | | | | | | |
| Stockholders' equity | | | 1,054,444 | | | 934,536 | |
| | |
| |
|
| |
| | | | | | | | |
| Total liabilities and | | | | | | | |
| stockholders' equity | | $ | 2,141,915 | | $ | 2,016,726 | |
| | |
| |
|
| |
Page 5
| PALL CORPORATION CONSOLIDATED STATEMENTS OF EARNINGS | | | | | |
| (Amounts in thousands, except per share data) | | | | | | | |
| | | | | | | | | | | | | |
| | | | | | | | | | | | | |
| | | | | | | | | | | | | |
| | | | | | | | | | | | | |
| | | FOURTH QUARTER ENDED | | | YEAR ENDED | |
| | |
| | |
| |
| | | JUL. 31, | | | AUG. 2, | | | JUL. 31, | AUG. 2, | |
| | | 2004 | | | 2003 | | | 2004 | | | 2003 | |
|
|
|
|
|
|
|
|
|
|
|
| |
| | | | | | | | | | | | | |
| | | | | | | | | | | | | |
| Net sales | $ | 504,455 | | $ | 471,412 | | $ | 1,770,747 | | $ | 1,613,635 | |
| Cost of sales | | 250,048 | | | 230,106 | | | 899,119 | | | 810,039 | |
| | |
| | |
| | |
| | |
| |
| Gross profit | | 254,407 | | | 241,306 | | | 871,628 | | | 803,596 | |
| | | | | | | | | | | | | |
| | | | | | | | | | | | | |
| | | | | | | | | | | | | |
| | | | | | | | | | | | | |
| Selling, general and | | | | | | | | | | | | |
| administrative expenses | | 160,022 | | | 151,833 | | | 583,539 | | | 536,194 | |
| Research and development | | 14,079 | | | 12,489 | | | 57,279 | | | 52,204 | |
| Restructuring and other | | | | | | | | | | | | |
| charges, net | | 1,831 | | | 1,189 | | | 12,477 | | | 47,524 | |
| Interest expense, net | | 5,461 | | | 5,200 | | | 20,501 | | | 24,438 | |
| |
|
| |
|
| |
|
| |
|
| |
| Earnings before | | | | | | | | | | | | |
| income taxes | | 73,014 | | | 70,595 | | | 197,832 | | | 143,236 | |
| Provision for | | | | | | | | | | | | |
| income taxes | | 17,459 | | | 15,989 | | | 46,239 | | | 40,034 | |
| |
|
| |
|
| |
|
| |
|
| |
| | | | | | | | | | | | | |
| | | | | | | | | | | | | |
| Net earnings | $ | 55,555 | | $ | 54,606 | | $ | 151,593 | | $ | 103,202 | |
| |
|
| |
|
| |
|
| |
|
| |
| | | | | | | | | | | | | |
| | | | | | | | | | | | | |
| Earnings per share: | | | | | | | | | | | | |
| Basic: | $ | 0.44 | | $ | 0.44 | | $ | 1.21 | | $ | 0.84 | |
| |
|
| |
|
| |
|
| |
|
| |
| Diluted: | $ | 0.44 | | $ | 0.44 | | $ | 1.20 | | $ | 0.83 | |
| |
|
| |
|
| |
|
| |
|
| |
| | | | | | | | | | | | | |
| | | | | | | | | | | | | |
| Average number of | | | | | | | | | | | | |
| shares outstanding: | | | | | | | | | | | | |
| Basic: | | 125,220 | | | 124,062 | | | 125,685 | | | 123,275 | |
| Diluted: | | 126,141 | | | 125,330 | | | 126,737 | | | 124,214 | |
| | | | | | | | | | | | | |
| | | | | | | | | | | | | |
| Net earnings | | | | | | | | | | | | |
| as reported | $ | 55,555 | | $ | 54,606 | | $ | 151,593 | | $ | 103,202 | |
| Restructuring and other | | | | | | | | | | | | |
| charges, net, after | | | | | | | | | | | | |
| pro forma tax effect | | 1,243 | (a) | | 1,386 | (b) | | 8,158 | (a) | | 45,591 | (b) |
| |
|
| |
|
| |
|
| |
|
| |
| Pro forma earnings | $ | 56,798 | | $ | 55,992 | | $ | 159,751 | | $ | 148,793 | |
| |
|
| |
|
| |
|
| |
|
| |
| | | | | | | | | | | | | |
| | | | | | | | | | | | | |
| Diluted earnings per | | | | | | | | | | | | |
| share as reported | $ | 0.44 | | $ | 0.44 | | $ | 1.20 | | $ | 0.83 | |
| Restructuring and | | | | | | | | | | | | |
| other charges, net | $ | 0.01 | (a) | $ | 0.01 | (b) | $ | 0.06 | (a) | $ | 0.37 | (b) |
| |
|
| |
|
| |
|
| |
|
| |
| Pro forma diluted | | | | | | | | | | | | |
| earnings per share | $ | 0.45 | | $ | 0.45 | | $ | 1.26 | | $ | 1.20 | |
| |
|
| |
|
| |
|
| |
|
| |
Page 6
(a) Restructuring and other charges, net, for the year includes $20,837 (11 cents per share, after pro forma tax effect) to increase environmental reserves inclusive of $9,337 (5 cents per share, after pro forma tax effect) incurred in the fourth quarter. In addition, $4,846 (3 cents per share, after pro forma tax effect) was recorded in the year primarily related to the restructuring of operations in Europe and Japan (of which $1,757 relates to the fourth quarter). These were partly offset by a $7,580 (4 cents per share, after pro forma tax effect) gain on the sale of our investment in Oiltools in the fourth quarter and a $5,626 (3 cents per share, after pro forma tax effect), first quarter adjustment to decrease a pension liability.
(b) Restructuring and other charges, net, for the year includes $37,600 (30 cents per share) of acquired in-process research and development and $9,924 (7 cents per share, after pro forma tax effect) of restructuring costs inclusive of $1,189 (1 cent per share, after pro forma tax effect) incurred in the fourth quarter.
Page 7
| PALL CORPORATION MARKET SEGMENT AND GEOGRAPHIC INFORMATION | | | | | | | | | | |
| (DOLLAR AMOUNTS IN THOUSANDS) | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | % CHANGE |
| SALES | | | | | | | | % | | IN LOCAL |
| FOURTH QUARTER ENDED: | | JUL. 31, 2004 | | | AUG. 2, 2003 | | | CHANGE | | CURRENCY |
|
|
|
|
|
|
|
|
|
|
|
| MARKET SEGMENT | | | | | | | | | | | | | | | |
| INFORMATION: | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | |
| Medical | $ | 97,800 | | $ | 95,981 | | | | | | 2 | | | | (1) |
| BioPharmaceuticals | | 104,707 | | | 102,864 | | | | | | 2 | | | | (2) |
| |
|
| |
|
| | | | | | | | | | |
| Total Life Sciences | | 202,507 | | | 198,845 | | | | | | 2 | | | | (1 1/2) |
| |
|
| |
|
| | | | | | | | | | |
| | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | |
| General Industrial | | 194,960 | | | 177,893 | | | | | | 9 1/2 | | | | 4 1/2 |
| Aerospace | | 49,429 | | | 51,399 | | | | | | (4) | | | | (6 1/2) |
| Microelectronics | | 57,559 | | | 43,275 | | | | | | 33 | | | | 27 |
| |
|
| |
|
| | | | | | | | | | |
| Total Industrial | | 301,948 | | | 272,567 | | | | | | 11 | | | | 6 |
| |
|
| |
|
| | | | | | | | | | |
| | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | |
| Total | $ | 504,455 | | $ | 471,412 | | | | | | 7 | | | | 3 |
| |
|
| |
|
| | | | | | | | | | |
| | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | |
| GEOGRAPHIC | | | | | | | | | | | | | | | |
| INFORMATION: | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | |
| SALES | | | | | | | | | | | | | | | |
| TO UNAFFILIATED CUSTOMERS | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | |
| Western | | | | | | | | | | | | | | | |
| Hemisphere | $ | 195,489 | | $ | 176,738 | | | | | | 10 1/2 | | | | 10 1/2 |
| Europe | | 205,644 | | | 192,104 | | | | | | 7 | | | | (1/2) |
| Asia | | 103,322 | | | 102,570 | | | | | | 1 | | | | (4) |
| |
|
| |
|
| | | | | | | | | | |
| | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | |
| Total | $ | 504,455 | | $ | 471,412 | | | | | | 7 | | | | 3 |
| |
|
| |
|
| | | | | | | | | | |
| | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | |
| TOTAL SALES | | | | | | | | | | | | | | | |
| Western | | | | | | | | | | | | | | | |
| Hemisphere | $ | 247,743 | | $ | 220,971 | | | | | | | | | | |
| Europe | | 238,004 | | | 217,577 | | | | | | | | | | |
| Asia | | 104,418 | | | 103,543 | | | | | | | | | | |
| Eliminations | | (85,710 | ) | | (70,679 | ) | | | | | | | | | |
| |
|
| |
|
| | | | | | | | | | |
| | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | |
| Total | $ | 504,455 | | $ | 471,412 | | | | | | | | | | |
| |
|
| |
|
| | | | | | | | | | |
Page 8
| OPERATING PROFIT | | | | | | | | | | |
| FOURTH QUARTER ENDED: | | JUL. 31, 2004 | | % | | | AUG. 2, 2003 | | % | |
|
|
|
|
|
|
|
|
|
| |
| MARKET SEGMENT | | | | | | | | | | |
| INFORMATION: | | | | | | | | | | |
| | | | | | | | | | | |
| | | | | | | | | | | |
| Medical | $ | 24,155 | | 24.7 | | $ | 24,140 | | 25.2 | |
| BioPharmaceuticals | | 27,580 | | 26.3 | | | 27,727 | | 27.0 | |
| |
|
| | | |
|
| | | |
| Total Life Sciences | | 51,735 | | 25.5 | | | 51,867 | | 26.1 | |
| |
|
| | | |
|
| | | |
| | | | | | | | | | | |
| | | | | | | | | | | |
| General Industrial | | 27,696 | | 14.2 | | | 22,874 | | 12.9 | |
| Aerospace | | 12,956 | | 26.2 | | | 15,000 | | 29.2 | |
| Microelectronics | | 11,628 | | 20.2 | | | 8,282 | | 19.1 | |
| |
|
| | | |
|
| | | |
| Total Industrial | | 52,280 | | 17.3 | | | 46,156 | | 16.9 | |
| |
|
| | | |
|
| | | |
| Subtotal | | 104,015 | | 20.6 | | | 98,023 | | 20.8 | |
| Restructuring and other charges | | (1,831 | ) | | | | (1,189 | ) | | |
| General corporate expenses | | (23,709 | ) | | | | (21,039 | ) | | |
| Interest expense, net | | (5,461 | ) | | | | (5,200 | ) | | |
| |
|
| | | |
|
| | | |
| Earnings before income taxes | $ | 73,014 | | | | $ | 70,595 | | | |
| |
|
| | | |
|
| | | |
| | | | | | | | | | | |
| | | | | | | | | | | |
| GEOGRAPHIC INFORMATION: | | | | | | | | | | |
| | | | | | | | | | | |
| | | | | | | | | | | |
| Western Hemisphere | $ | 48,725 | | 19.7 | | $ | 39,558 | | 17.9 | |
| Europe | | 38,144 | | 16.0 | | | 36,998 | | 17.0 | |
| Asia | | 16,344 | | 15.7 | | | 20,760 | | 20.0 | |
| Eliminations | | 802 | | | | | 707 | | | |
| |
|
| | | |
|
| | | |
| Subtotal | | 104,015 | | 20.6 | | | 98,023 | | 20.8 | |
| Restructuring and other charges | | (1,831 | ) | | | | (1,189 | ) | | |
| General corporate expenses | | (23,709 | ) | | | | (21,039 | ) | | |
| Interest expense, net | | (5,461 | ) | | | | (5,200 | ) | | |
| |
|
| | | |
|
| | | |
| Earnings before income taxes | $ | 73,014 | | | | $ | 70,595 | | | |
| |
|
| | | |
|
| | | |
Page 9
| PALL CORPORATION MARKET SEGMENT AND GEOGRAPHIC INFORMATION | | | |
| (DOLLAR AMOUNTS IN THOUSANDS) | | | | | | | |
| | | | | | | | | | | |
| | | | | | | | | | | |
| | | | | | | | | | | % CHANGE |
| SALES | | | | | | | | | % | IN LOCAL |
| YEAR ENDED: | | JUL. 31, 2004 | | | | AUG. 2, 2003 | | CHANGE | CURRENCY |
|
|
|
|
|
|
|
|
|
|
| MARKET SEGMENT | | | | | | | | | | |
| INFORMATION: | | | | | | | | | | |
| | | | | | | | | | | |
| | | | | | | | | | | |
| Medical | | $ | 347,598 | | | $ | 317,051 | | 9 1/2 | 5 |
| BioPharmaceuticals | | | 373,593 | | | | 351,874 | | 6 | (1/2) |
| | | |
| | | |
| | | |
| Total Life Sciences | | | 721,191 | | | | 668,925 | | 8 | 2 |
| | | |
| | | |
| | | |
| | | | | | | | | | | |
| | | | | | | | | | | |
| General Industrial | | | 666,771 | | | | 595,210 | | 12 | 3 |
| Aerospace | | | 178,178 | | | | 185,431 | | (4) | (7 1/2) |
| Microelectronics | | | 204,607 | | | | 164,069 | | 24 1/2 | 17 1/2 |
| | | |
| | | |
| | | |
| Total Industrial | | | 1,049,556 | | | | 944,710 | | 11 | 3 1/2 |
| | |
| | | |
| | | |
| | | | | | | | | | | |
| | | | | | | | | | | |
| Total | | $ | 1,770,747 | | | $ | 1,613,635 | | 9 1/2 | 2 1/2 |
| | |
| | |
| | | |
| | | | | | | | | | | |
| | | | | | | | | | | |
| | | | | | | | | | | |
| | | | | | | | | | | |
| GEOGRAPHIC INFORMATION: | | | | | | | | | | |
| | | | | | | | | | | |
| | | | | | | | | | | |
| SALES | | | | | | | | | | |
| TO UNAFFILIATED CUSTOMERS | | | | | | | | | | |
| Western | | | | | | | | | | |
| Hemisphere | | $ | 667,535 | | | $ | 630,307 | | 6 | 5 1/2 |
| Europe | | | 735,969 | | | | 671,660 | | 9 1/2 | (2 1/2) |
| Asia | | | 367,243 | | | | 311,668 | | 18 | 10 |
| | | |
| | | |
| | | |
| | | | | | | | | | | |
| | | | | | | | | | | |
| Total | | $ | 1,770,747 | | | $ | 1,613,635 | | 9 1/2 | 2 1/2 |
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| | | | | | | | | | | |
| | | | | | | | | | | |
| TOTAL SALES | | | | | | | | | | |
| Western | | | | | | | | | | |
| Hemisphere | | $ | 853,073 | | | $ | 794,819 | | | |
| Europe | | | 840,003 | | | | 758,717 | | | |
| Asia | | | 371,979 | | | | 315,496 | | | |
| Eliminations | | | (294,308 | ) | | | (255,397 | ) | | |
| | | |
| | | |
| | | |
| | | | | | | | | | | |
| | | | | | | | | | | |
| Total | | $ | 1,770,747 | | | $ | 1,613,635 | | | |
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Page 10
| OPERATING PROFIT | | | | | | | | | | |
| YEAR ENDED: | JUL. 31, 2004 | | % | | AUG. 2, 2003 | | % | |
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| MARKET SEGMENT | | | | | | | | | | |
| INFORMATION: | | | | | | | | | | |
| | | | | | | | | | | |
| | | | | | | | | | | |
| Medical | $ | 64,133 | | 18.5 | | $ | 57,745 | | 18.2 | |
| BioPharmaceuticals | | 84,689 | | 22.7 | | | 82,207 | | 23.4 | |
| |
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| | | |
| Life Sciences | | 148,822 | | 20.6 | | | 139,952 | | 20.9 | |
| |
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| | | | | | | | | | | |
| General Industrial | | 78,226 | | 11.7 | | | 67,493 | | 11.3 | |
| Aerospace | | 43,634 | | 24.5 | | | 52,593 | | 28.4 | |
| Microelectronics | | 38,476 | | 18.8 | | | 28,103 | | 17.1 | |
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| | | |
| Industrial | | 160,336 | | 15.3 | | | 148,189 | | 15.7 | |
| |
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| Subtotal | | 309,158 | | 17.5 | | | 288,141 | | 17.9 | |
| Restructuring and other charges | (12,477 | ) | | | | (47,524 | ) | | |
| General corporate expenses | | (78,348 | ) | | | | (72,943 | ) | | |
| Interest expense, net | | (20,501 | ) | | | | (24,438 | ) | | |
| |
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| | | |
| Earnings before income taxes | $ | 197,832 | | | | $ | 143,236 | | | |
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| GEOGRAPHIC INFORMATION: | | | | | | | | | | |
| | | | | | | | | | | |
| | | | | | | | | | | |
| Western Hemisphere | $ | 127,235 | | 14.9 | | $ | 116,035 | | 14.6 | |
| Europe | | 121,078 | | 14.4 | | | 120,992 | | 15.9 | |
| Asia | | 62,531 | | 16.8 | | | 52,269 | | 16.6 | |
| Eliminations | | (1,686 | ) | | | | (1,155 | ) | | |
| |
|
| | | |
|
| | | |
| Subtotal | | 309,158 | | 17.5 | | | 288,141 | | 17.9 | |
| Restructuring and other charges | (12,477 | ) | | | | (47,524 | ) | | |
| General corporate expenses | | (78,348 | ) | | | | (72,943 | ) | | |
| Interest expense, net | | (20,501 | ) | | | | (24,438 | ) | | |
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| Earnings before income taxes | $ | 197,832 | | | | $ | 143,236 | | | |
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#
Contacts:
John Adamovich
Pall Corporation
Tel: (516) 801-9808
