Clarcor Results Top Estimate, Lifts FY Outlook; Stock Up - Update

(RTTNews) - Filtration products maker Clarcor Inc (CLC), Wednesday reported a five percent increase in second-quarter profit, helped by acquisition-led growth in sales, partly offset by weak margins. Both earnings and revenue for the quarter topped Wall Street estimates.

Moving ahead, Clarcor lifted its earnings and sales outlook for 2014, mainly reflecting the April acquisition of Stanadyne Corp.

Clarcor shares were up more than 5 percent in after-hours trade on the New York Stock Exchange.

Franklin, Tennessee-based Clarcor reported second-quarter net earnings of $34.6 million or $0.68 per share, compared with $33 million or $0.66 per share last year.

Excluding items, adjusted earnings for the quarter were $0.76 per share. On average, six analysts polled by Thomson Reuters expected earnings of $0.62 per share for the quarter. Analysts' estimates typically exclude special items.

Sales for the second quarter jumped 34 percent to $386.6 million from $287.6 million a year ago. Five analysts had a consensus revenue estimate of $364 million for the quarter.

Sales at engine/mobile filtration segment grew 12 percent. Sales at Industrial/Environmental Filtration segment increased 61 percent, due mainly to the GE Air Filtration acquisition.

Operating margin for the quarter declined by 400 basis points at 13.2 percent.

For fiscal 2014, the company now expect net earnings of $2.72 to $2.82 per share, adjusted earnings of $2.85 to $2.95 per share and sales of $1.49 billion and $1.54 billion. Clarcor had earlier projected earnings of $2.60 to $2.75 per share and sales of $1.41 billion to $1.47 billion.

Analysts expect earnings of $2.73 per share on sales of $1.49 billion for the year.

In April, Clarcor agreed to buy the filtration business of Stanadyne Corp, a portfolio company of Kohlberg & Co LLC, for about $325 million. With about 200 employees and 2013 annual revenue of about $107 million, the business is a supplier of original equipment and replacement fuel filtration products.

Clarcor stock closed Wednesday at $58.80, up $0.07 or 0.12%, on a volume of 349k shares on the NYSE. In after hours, the stock gained $3.20 or 5.44%, at $62.00.