Pall's CEO Discusses Q2 2012 Results - Earnings Call Transcript

Pall (PLL)

Q2 2012 Earnings Call

March 08, 2012 8:30 am ET

Executives

Lawrence D. Kingsley - Chief Executive Officer, President and Director

Lisa McDermott - Chief Financial Officer and Treasurer

Analysts

Jonathan P. Groberg - Macquarie Research

Kevin R. Maczka - BB&T Capital Markets, Research Division

Hamzah Mazari - Crédit Suisse AG, Research Division

Tracy Marshbanks - First Analysis Securities Corporation, Research Division

Brian Drab - William Blair & Company L.L.C., Research Division

Presentation

Operator

Welcome to Pall Corporation's Conference Call and Webcast for the Second Quarter of Fiscal 2012. Today's call is being recorded and simultaneously webcast. [Operator Instructions] We'd like to remind you that the company's second quarter press release is available at www.pall.com.

Management's remarks this morning will include forward-looking statements. Please refer to Slide 2 or request a copy of the specific wording of this qualification of the company's remarks. Management also uses certain non-GAAP measures to assess the company's performance. Reconciliations of these measures to their GAAP counterparts are included in slides at the end of the presentation.

At this time, I will turn the call over to Mr. Larry Kingsley, Pall Corporation's President and CEO. Please go ahead, sir.

Lawrence D. Kingsley

Good morning, and thanks for joining us. I'm here today with Lisa McDermott, our CFO; and Frank Moschella, our Corporate Controller.

We'll review the quarter and our outlook, but before I do that, I'll provide my assessment of the company, generally where we are and what we need to do after a couple quarters of experience. I came to Pall to build a company that's among the most respected in the world, and we have the potential to achieve that level of performance and the respect that comes with it. I visited most of our facilities around the world and met with many employees at all levels and positions within the company. I've also gotten lots of feedback from customers and suppliers. These meetings have reaffirmed my impressions of the company's opportunity. I see a very strong long-term value creation opportunity, and I stress, I'd like you to think about it that way as well. We have a lot of organization and operations foundation work to do over the next couple of years, but we'll get there. We also are focusing on taking waste out of the system and improving our cost structure now, particularly given some of the market softness that we're seeing. The big picture, we serve highly attractive end markets, many with high barriers to entry. 2/3 of the sales are consumables that are largely nondiscretionary purchases. Our applications expertise is second to none, as is our global sales channel, and we have a great balance sheet to fuel growth. Pall employees are highly committed to our success and hungry for change. All of this provides a great platform to build on.

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