Shares of filtration and packaging manufacturer Clarcor fell to their lowest level in 10 months Thursday after the company reported disappointing quarterly results and lowered its profit guidance for the second consecutive quarter.
Franklin-based Clarcor said it earned $30.3 million in the three months ended Sept. 1, down 6 percent from a year ago. Per diluted share, earnings were 60 cents, 9 cents less than what analysts had expected.
CEO Chris Conway said the main culprits behind the big miss were lower-than-expected sales of heavy-duty engine filtration products in both the United States and China. Other filtration segments and packaging products also contributed to the shortfall. Conway said the disappointing numbers reflect the weak economic recovery in many parts of the world.
"We believe our sales levels are consistent with slowing industry demand primarily in the over-the-road truck market — which represents about two-thirds of our domestic aftermarket — indicative of a slowdown in the U.S. economy," Conway said. "We believe we have maintained our market share through the first nine months of 2012, and we anticipate a rebound in our base domestic business when the U.S. economy accelerates."
Many investors appear to not be willing to wait for that time: As of 1:45 p.m., shares of Clarcor (Ticker: CLC) were down more than 10 percent on the day to about $44.40. Year to date, they're down 11 percent.
Conway also lowered his team's forecast for the rest of its fiscal year. It now expects to earn between $2.35 and $2.45 per share, down from a previous range of $2.50 to $2.65. Before it reported fiscal Q2 numbers in June, Clarcor had expected to earn between $2.55 and $2.70 per share.