Pall Corporation (PLL) reported earnings per share from continuing operations of 42 cents for the second quarter of 2010, compared to the Zacks Consensus Estimate of 47 cents (see conference call transcript here). Revenues were $560.4 million, up 3.2% compared to the second quarter of FY 2009. Sales in local currency declined 2.8% year over year.
BioPharmaceuticals sales were $147 million, while Medical sales were $100 million in the quarter.
For BioPharmaceuticals, consumables in the Pharmaceuticals submarket grew about 15% for the second successive quarter, helped by demand for Pall's single-use products in biotechnology manufacturing.
While in Medical, sales in the Blood Filtration submarkets grew slightly on the whole and were better in Asia. This region has witnessed increasing adoption of universal leukoreduction.
Energy, Water and Process Technologies sales were $194 million, while Aerospace & Transportation contributed $58 million in revenues. Microelectronics sales amounted to $61 million.
Microelectronics sales improved almost 15%, reflecting the recovery of the semiconductor industry.
Energy, Water & Process Technologies sales were impacted by the deferral of orders for capital intensive jobs over the prior year, particularly in the Energy and Municipal Water submarkets.
Within Aerospace & Transportation, the Commercial Aerospace submarkets declined almost 7%, reflecting the weakness of the regional and private jet markets. The Military Aerospace submarket revenues fell 27%, reflecting deferrals in defense spending. Sales to the Transportation submarket declined over 7%.
Pall Industrial orders and backlog are increasing and the company expects to return to top line growth in the second half of 2010. Overall BioPharmaceuticals revenue growth rate is expected to be in the single digits for the remainder of 2010 due to the demand cycle within the biotechnology market.
Pall Corporation manufactures and markets filtration, purification, and separation products and integrated systems solutions worldwide.
We currently have a Neutral recommendation for PLL.