Fresh from reporting record numbers for fiscal 2011 and forecasting even better performance this year, executives at Clarcor say they plan to spend at least $45 million on plant expansions in the coming 12 months — a number that would double their investments of the past few years.
In their annual report filed last week, officials said "plant asset additions in fiscal year are estimated to be between $45 and $55 million." That number includes land, buildings, furniture and production equipment as well as computers and communications tools. Clarcor spent about $24 million in each of the past two fiscal years and almost $22 million in 2009 on property, plant and equipment. (Search here for "24,171".)
Clarcor execs also say they are looking to rework their $250 million revolving credit facility, which will expire at the end of the year. As of Dec. 31, the company had only $16 million of the line accounted for.
At this rate, he'll be done by Super Bowl weekend.
Norm Johnson on Tuesday sold 50,000 or so shares of Clarcor, the filtration and packaging company he led until November. The $2.6 million sale came the day after Johnson unloaded a slightly larger block of stock and leaves him with almost 290,000 directly owned shares — which, oh by the way, are trading at all-time highs.
Norm Johnson, who recently turned over the CEO role at Franklin-based Clarcor to Chris Conway, on Monday cashed out more than 50,000 shares of the filtration products maker. The sale was worth almost $2.7 million to Johnson, who is staying on as executive chairman until November. The remaining shares held by Johnson and his wife are worth more than $23 million.
Shares of Franklin-based Clarcor have climbed steadily in recent months and recently topped $50 for the first time. That apparenty hasn't escaped the attention of director Robert Burgstahler, who on Monday exercised 15,000 stock options that would have expired this March and next and then sold the resulting shares. His gain on the transactions was almost $530,000.
Analysts covering two local stocks that have done well in recent months have lifted their price targets. Susquehanna researcher Chris Svezia has lifted his target for high-flying Genesco to $75 from $72. Genesco (Ticker: GCO), which is up 9 percent in the past three months and 70 percent in the past year, closed Wednesday trading at $61.49.
Meanwhile at Robert W. Baird, Richard Eastman has reiterated his 'outperform' rating on Franklin-based filtration products maker Clarcor and hiked his target to $57 from $51. Clarcor shares (Ticker: CLC) closed Wednesday trading at $51.31 and have climbed 14 percent in the past three months. Analysts' median price target stands right at $51.
The leadership transition at filtration company Clarcor from Norm Johnson to Chris Conway has been completed. The board of the Franklin-based company this week voted to hike Conway's salary to $500,000 from $325,000 and give him the chance to earn a bonus of up to 75 percent of the new number. By way of comparison, Johnson's salary in 2010 was more than $730,000.
Franklin-based Clarcor will at the end of next week make the move from the S&P SmallCap 600 Index to the MidCap 400, a transition that's likely to create a little bit of turbulence in the stock as index-based fund managers adjust their holdings. Shares of Clarcor (Ticker: CLC) are up more than 10 percent so far in 2011 and about 80 percent since the market's March 2009 lows.
Kevin Maczka at BB&T Capital Markets has downgraded Clarcor to 'hold' from 'buy' after the stock's 16 percent run over the past three months. Year to date, Clarcor (Ticker: CLC) is up about 13 percent.
Global aluminum prices have been pressuring margins for companies such as Franklin-based Noranda, which has led Goldman Sachs analyst Sal Tharani to cut his EPS estimates and price target for the company. Tharani now sees the stock (Ticker: NOR) going to $12 from its current $10-and-change levels, down from $14.