QUOTE AND NEWS
GenEng News  Oct 14  Comment 
BD (Becton, Dickinson and Co.) has acquired GenCell Biosystems, in a deal that expands the buyer’s offerings into next-generation sequencing (NGS). The price and other financial details were not disclosed. Founded in 2011, GenCell has...
Forbes  Sep 29  Comment 
CLARCOR (CLC) resolved to increase the company's regular quarterly dividend by approximately 18%, from $0.17 per share of common stock to $0.20 per share of common stock. The Board further resolved to pay the new $0.20 per share dividend on...
SeekingAlpha  Sep 19  Comment 
By The Value Investor: Clarcor (NYSE:CLC) posted solid third quarter results on Wednesday after the close of business which were welcomed by investors. Three acquisitions which the company made over the past year added significantly to reported...
SeekingAlpha  Sep 18  Comment 
By SA Transcripts: CLARCOR Inc. (NYSE:CLC) Q3 2014 Earnings Conference Call September 18, 2014 11:00 AM ET Executives Tom Lawrence - IR Chris Conway - Chairman and CEO David Fallon - VP, Finance and CFO Analysts Kevin...
StreetInsider.com  Sep 17  Comment 
Flexion Therapeutics (Nasdaq: FLXN) 22.6% LOWER; announced that the United States Food and Drug Administration (FDA) informed the company yesterday that a clinical hold has been placed on patient enrollment and dosing in an ongoing Phase 2b...
DailyFinance  Sep 3  Comment 
CLARCOR Inc. (NYSE: CLC) said today it will release financial results for the third quarter of its 2014 fiscal year on Wednesday, September 17, 2014, after the close of trading on the New York Stock Exchange. The...
TheStreet.com  Jul 17  Comment 
NEW YORK (TheStreet) -- Robert W. Baird upgraded Clarcor  to "outperform" from "neutral" and set a $67 price target. The firm said the recent acquisition of Stanadyne should augment improving core fundamentals.  The stock closed at $60.67...
Benzinga  Jul 17  Comment 
Forbes  Jun 25  Comment 
Freeport-McMoRan Copper & Gold (FCX) declared a cash dividend of $0.3125 per share payable on August 1, 2014 to holders of record as of July 15, 2014 for its common stock.
SeekingAlpha  Jun 19  Comment 
CLARCOR Inc. (CLC) Q2 2014 Earnings Conference Call June 19, 2014 11:00 AM ET Executives Tom Lawrence - IR Chris Conway - Chairman, President and CEO David Fallon - CFO David Janicek - CC Analysts Kevin Maczka - BB&T...
TheStreet.com  Jun 19  Comment 
NEW YORK (TheStreet) -- Shares of Clarcor Inc.  are up 6.62% to $62.69 after it reported second quarter adjusted earnings per share of 76 cents excluding items, 14 cents better than the Thompson Reuters consensus estimate of of 62 cents.Revenue...




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Clarcor (NYSE:CLC) is a Tennessee based manufacturer, marketer and servicer of filtration products & systems and containers. Though traditionally a producer of plastic and metal containers (currently part of packaging division John Lewis Clark named after the founder of Clarcor) the company entered the filtration market in 1981 after acquiring J.A. Baldwin Manufacturing Company followed by Dahl Manufacturing and Michigan Spring Company in 1986. In 1987 it renamed itself Clarcor from Clark. Between two filtration business segments; Industrial-Environmental and Engine-Mobile (trains, busses, trucks, cars, as well as commercial equipment) the products it makes filter sewage, gas, oil, microbials and other pollutants out of water (in lakes and engines) and air. Since 1991 it has had operations abroad (beginning with Australia where it purchased 1/5th of the largest filtration company there GUD Holdings Ltd. in 1991). Since 1993 it has been involved in the manufacturing of environmental control systems (Airguard Industries, Inc.).

2009 and 2006 revenue was nearly identical although that was mostly the result of negative growth (decreases of 14.3% in sales and 30% in operating profit) between 2008 and 2009.[1][2]

The company has a diverse client base which ranges from commercial (factories, oil and gas drillers, agricultural equipment providers, food and beverage processors) to public institutions (hospitals, residences). In 2009 it became even more vertically integrated when it purchased a manufacturer or metal mesh filters for plastic resins and fibers (sales to the resins market were the biggest disappointment that year before the acquisition).[3]

Clarcor also has a research laboratory, Filtration Research Center in Forrest, Ohio where it tests the designs of filters and packages.

Company Overview

Although the market it serves may appear small it isn't as it plays a key role in an industry sector (that hasn't had much competition for much of its history) that is becoming increasingly tied to other sectors. The use of and importance of high quality filters is gradually rising as energy reduction policies and efficiency standards demand new anti pollution technology many of which rely on products that utilize filtration systems. In Europe a lot of its business comes from the aviation and wastewater markets (global demand of those types of products fell 15% over the year leading up to the end of the first half of 2010.

3 core business segments

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Filtration - main customers are original equipment manufacturers (OEM)
  • Engine/Mobile (1hfy10 44.37% of CLARCOR's revenue, 70.2% of ebitda, had the highest operating margin among the 3 core segments (19.8% up from 17.9% & 3 times higher than the other 2 divisions in 1hfy09)) - serves parts wholesalers, aftermarkets businesses, engine manufacturers and service centers in the business of construction, agricultural and mining equipment as well as commercial and private buses, trains, cars, airplanes. In engines it separates water and fuels. There are also coolant and transmission filters and filter bags. Subsidiaries include Baldwin Filters Hastings Premium Filters Clark Filter Clarcor UK
  • Industrial/Environmental (1hfy10 the division represented 46.4% of CLARCOR's revenue down from 52.7% in 1hfy09, 24.8% of ebitda up from 16.8% yoy; 1hfy09 sales and oper profit fell yoy 14%, 49% resp driven down by sales to offshore oil drilling (nat gas market down 5%) and automobile manufacturers, CLC air operation softened the impact) - products are used mostly with the aim of cleaning natural resources like water and air. Sytems are used in dust, microbes, oil and natural gas collection in addition to general air pollution, micro and ultra filtration, aviation fuel collectors, food and beverage processing and microbial contaminants. It also specializes in High Efficiency Particulate Air filters.

Subsidiaries which are numerous make up 2 major product lines Air Filtration and Air and Liquid Process Filtration and include AirGuard, United Air Specialists, Keddeg, MKI, Purolator Advanced Filtration, Purolator Lilquid Proccess, Total Filtration Services, Facet International, Peco Facet, TPS. Has regional divisions in China and the UK (Clarcor UK),

Consumer Packaging J.L. Clark (1hfy10 responsible for 9.2% of all CLARCOR's revenue, 5% of ebitda up from 1.6% yoy, operating margin more than three times higher than in 2009 (6.8%); 1hfy09 sales fell 10%, operating profit fell 42%) - Products depend on FDA approval.

  • Products protect and store food and non food items. Containers are of high quality and many also have aesthetic value. Materials used are metals and plastics. Examples of products used are batteries.

Business & Financials

  • Half year data is up to May 29-30, Fiscal Year data goes up to Nov 30.

1hfy09 sales of filter systems needing periodic replacements or aftermarket parts (maintenance) were a lot better than ones that didn't (80% of sales were to the replacement market). Operating margins rose to 11 % in the second quarter from 6.4% in the first quarter. The company purchased the remaining 20% interest in Baldwin-Weifang engine filter company (China) it didn't own, enlarging its heavy filter business in Asia. Currency exchange rates had a negative affect (lost $12 million)

business operations income data, USD million 2007[4][5] 2008[2] 2009[2] 9M09[6][7] 9M10[7] 9 month
change %
Revenue 921.1911059.6907.748673.4735.89.27%
Cost of Sales 641.457628.46719.726468.832489.5614.42%
Operating Profit 129.814151.923105.73371.0100.841.97%
Net Income 90.65995.65471.54346.967.143.07%
Depreciation 20.858 25.23126.00520.43420.357(-)0.38%
Ammortization 2.5315.1574.9573.6623.563(-)2.70%
Total Equity 555.730651.759686.619683.720731.8027.03%
Total Assets 739.135 957,882971,889978.6051010.2552.31%
capex 37.0[8]35.022.015.030 FYna
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In 2009 the 10 largest customers of the packaging business segment accounted for 73% of revenue compared to 25% for engine mobile filtration and 10% for industrial environmental filtration. Being too dependent on a few customers contributes to greater volatility as the business can end up being increasingly exposed to economic fluctuations (can't easily turn to another sector of the economy for growth). Clarcor's strongest market position was in liquid and air filters for diesel engines of trains. Profitability is strongly tied to the cost of raw materials (40% of 2009 total costs). There's also a lot of cost associated with protecting its patent rights and intellectual property abroad (the company has also sued other companies for various reason like 2006 when subsidiary Total Filtration Services Inc took Electronic Data Systems Corp to court over filtration products related to a supply agreement.[9]

1hfy10 as compared to 1hfy09 was markedly higher with increases across all key metrics 7% for net sales but operating income and diluted earnings were up sharply 52% for ebitda and diluted earnings per share which was up to 0.76 from 0.50. A lot of that growth was from the 2nd quarter which changed 12% yoy. The largest aggregate growth came from engine mobile filtration which was 23%/$21.1 million higher yoy but the largest percentage growth came from the packaging division 56%/$9.7 million yoy (driven by higher sales of smokeless tobacco packaging).[10][11] Oil drilling filter sales increased.

Competition

Main direct compeititor is Donaldson Company Inc a 1918 established filtration company that dominated the filter market up to the late 1980's (at one point had close to a 90% market share). It has a diverse clientele ranging from food processors to automobile engine, vents manufacturers to production plant and pharmaceutical businesses (air quality). Because it has such a long history it has many key patents. In 2009 revenue was about twice that of CLARCOR ($1.869 billion compared to $907.75 million but CLARCOR's net income and total assets are about 70% as large).

The biggest company in the filtration industry is Cummins which specialzes in heavy duty filters however the filtration business is small relative to the engine segment. Cummins was affected by the recession more than Clarcor, its net revenue dropped 25%.

References

  1. google finance income statement CLARCOR
  2. 2.0 2.1 2.2 Clarcor 2009 Fiscal Year Report
  3. CLARCOR complete financial report Jan 2010 includes information from 2007, 2008, 2009
  4. 2007 Annual Report Clarcor
  5. Clarkor 10 k fiscal year ended December 1, 2007
  6. Clarcor Third Quarter 2009 Results (2009-09-16).
  7. 7.0 7.1 Clarcor Third Quarter 2010 Results (2010-09-15).
  8. [1]
  9. Clarcor Files Lawsuit Against EDS July 5, 2006
  10. Clarcor June 16, 2010 Interim Report
  11. Clarcor Reports Second Quarter 2009 Results
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