CLARCOR Inc. (CLC, Financial) filed Quarterly Report for the period ended 2011-02-26.
Clarcor Inc. has a market cap of $2.15 billion; its shares were traded at around $42.6 with a P/E ratio of 22.6 and P/S ratio of 2.1. The dividend yield of Clarcor Inc. stocks is 1%. Clarcor Inc. had an annual average earning growth of 7.2% over the past 10 years. GuruFocus rated Clarcor Inc. the business predictability rank of 3-star.
Selling and administrative expenses as a percentage of net sales declined 1.6 points as we were able to leverage the 14% increase in net sales while increasing selling and administrative expenses only 6%. The $2.8 million increase in selling and administrative expenses included a $1.3 million increase in pension costs due to the retirement of one of our former executive officers, a $0.6 million increase related to TransWeb which was not in the prior period and $1.0 million increase in legal costs related to on-going litigation. On the strength of the improvement in both gross margin and selling and administrative expenses as a percentage of net sales, our operating margin increased 2.1 points from the first quarter of 2010.
The acquisition of TransWeb in the first quarter of 2011 positively impacted sales by $2.4 million and operating profit by $0.3 million. Operating profit at TransWeb was negatively influenced by a $0.2 million write-up of inventory pursuant to purchase accounting. There were no acquisitions in 2010.
The average exchange rate for foreign currencies versus the U.S. dollar positively impacted our translated U.S. dollar value of net sales by $0.3 million and operating profit by $0.2 million in the first quarter of 2011 versus the first quarter of 2010. The U.S. dollar value of the Euro declined while the U.S. dollar value of certain other currencies increased including the Chinese Yuan Renminbi, the Australian Dollar and the South African Rand.
Interest expense decreased $0.1 million in the first quarter of 2011 compared with the first quarter of 2010. This decrease is the result of our repayment of the outstanding balance on our line of credit during fiscal year 2010. We had an average of $21.7 million outstanding on our line of credit in the first quarter of 2010 while we had no amounts outstanding in the first quarter of 2011. The interest rate on our line of credit was 0.6% in the first quarter of 2010 which would have been consistent with the interest rate in the first quarter of 2011 if we had amounts outstanding.
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Clarcor Inc. has a market cap of $2.15 billion; its shares were traded at around $42.6 with a P/E ratio of 22.6 and P/S ratio of 2.1. The dividend yield of Clarcor Inc. stocks is 1%. Clarcor Inc. had an annual average earning growth of 7.2% over the past 10 years. GuruFocus rated Clarcor Inc. the business predictability rank of 3-star.
Highlight of Business Operations:
Our strong financial performance in the first quarter of 2011 compared with the first quarter of 2010 was primarily the result of the 14% or $30.6 million increase in net sales. Net sales were higher in each of our operating segments. The $14.9 million increase in our Engine/Mobile Filtration segment was driven by continued strength in heavy-duty engine filter sales in most of our end-markets both domestically and internationally. The $10.1 million increase in our Industrial/Environmental Filtration segment was the result of stronger sales domestically in most of our end markets as a result of the improved economy. The $5.6 million increase in net sales in our Packaging segment was due to continued strength in the smokeless tobacco, confection, spice and decorated flat sheet metal markets.Selling and administrative expenses as a percentage of net sales declined 1.6 points as we were able to leverage the 14% increase in net sales while increasing selling and administrative expenses only 6%. The $2.8 million increase in selling and administrative expenses included a $1.3 million increase in pension costs due to the retirement of one of our former executive officers, a $0.6 million increase related to TransWeb which was not in the prior period and $1.0 million increase in legal costs related to on-going litigation. On the strength of the improvement in both gross margin and selling and administrative expenses as a percentage of net sales, our operating margin increased 2.1 points from the first quarter of 2010.
The acquisition of TransWeb in the first quarter of 2011 positively impacted sales by $2.4 million and operating profit by $0.3 million. Operating profit at TransWeb was negatively influenced by a $0.2 million write-up of inventory pursuant to purchase accounting. There were no acquisitions in 2010.
The average exchange rate for foreign currencies versus the U.S. dollar positively impacted our translated U.S. dollar value of net sales by $0.3 million and operating profit by $0.2 million in the first quarter of 2011 versus the first quarter of 2010. The U.S. dollar value of the Euro declined while the U.S. dollar value of certain other currencies increased including the Chinese Yuan Renminbi, the Australian Dollar and the South African Rand.
Interest expense decreased $0.1 million in the first quarter of 2011 compared with the first quarter of 2010. This decrease is the result of our repayment of the outstanding balance on our line of credit during fiscal year 2010. We had an average of $21.7 million outstanding on our line of credit in the first quarter of 2010 while we had no amounts outstanding in the first quarter of 2011. The interest rate on our line of credit was 0.6% in the first quarter of 2010 which would have been consistent with the interest rate in the first quarter of 2011 if we had amounts outstanding.
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