EX-99 2 y31550exv99.htm EX-99: PRESS RELEASE EX-99
 

EXHIBIT 99
Pall Corporation Earnings Up Over 50%
on Sales Increase of 14%
March 1, 2007 (EAST HILLS, NY) — Pall Corporation (NYSE: PLL) today reported sales and earnings results for the second quarter ended January 31, 2007.
Sales for the quarter were $544.9 million, up 13.9% compared with the second quarter last year. Diluted earnings per share (“EPS”) were $0.45, up from $0.26 a year ago. Net earnings were $55.8 million compared to $32.4 million a year ago. EPS on a pro forma basis, excluding items principally related to the Company’s cost reduction initiatives, were $0.43 per share as compared to $0.28 per share in the same quarter last year.
For the six months ended January 31, 2007, sales were $1.04 billion, an increase of 14.8% over the prior year. Net earnings were $80.2 million, or $0.64 per share compared to $0.46 last year. Earnings on a pro forma basis, excluding charges principally related to the Company’s cost reduction initiatives, were $0.71 per share as compared to $0.48 per share in the same period last year.
“Sales growth was strong in Industrial and Life Sciences driven by our ‘Total Fluid Managementsm’ strategy and leading position in fast-growing markets. Improvements in productivity and our well-established cost reduction initiatives were the real stars of the quarter. Our six month operating profit growth of 33% demonstrates that Pall is successfully executing its profit improvement efforts,” said Eric Krasnoff, Chairman and CEO.
Income Statement Discussion
At constant exchange rates, sales increased $43.9 million, or 9.2%, in the quarter and $103.2 million, or 11.3%, during the six months. The impact of foreign currency translation increased the reported sales growth to $66.5 million, or 13.9%, for the quarter, and $134.6 million, or 14.8%, for the first six months. The impact of foreign currency translation increased EPS by $0.01 in the quarter and for the six months.
Mr. Krasnoff added, “Results for the second quarter indicate that gross margins are now beginning to stabilize, reflecting top-line leverage and our cost reduction initiatives. System sales were up 36% in the quarter. Profitability of systems is improving as our cost reduction and rationalization initiatives gain traction. We are on track to see significant gross margin expansion in fiscal 2008.
Selling, general and administrative (“S,G&A”) expenses again decreased as a percentage of sales, falling to 30.9% in the quarter. This continues a long-term improving trend.”

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EXHIBIT 99
Life Sciences — Second Quarter Summary
                         
                    % CHANGE  
                    IN LOCAL  
Sales:   JAN. 31, 2007     % CHANGE     CURRENCY  
Medical
   $ 119,605       11.5       7.7  
BioPharmaceuticals
     92,330       14.6       8.8  
 
                      
Total Life Sciences segment
   $ 211,935       12.8       8.1  
 
                      
 
            % OF SALES          
Gross profit
   $ 106,014       50.0 %        
Operating profit
   $ 37,036       17.5 %        
Highlights of the Quarter:
BioPharmaceuticals sales reflect the continued adoption of Pall technologies throughout the fast-growing biotechnology and vaccine industries.
Medical sales increased driven by new blood center customers and new products and applications for the blood business; and growth in the Hospital and BioSciences markets. Laboratory products posted growth of over 11% on top of strong performance in the same quarter last year.
Gross margin improved to 50% compared with 49.3% last year. S,G&A improved to 28.8% as a percentage of sales. Operating profit increased 34% to $37 million and operating margin improved to 17.5% from 14.7% last year.
The backlog in Life Sciences increased 14% compared to a year ago, with strong growth in the BioSciences and BioPharmaceuticals markets.
Industrial — Second Quarter Summary
                         
                    % CHANGE  
                    IN LOCAL  
Sales:   JAN. 31, 2007     % CHANGE     CURRENCY  
General Industrial
   $ 196,975       14.6       9.3  
Aerospace and Transportation
   60,735       7.4       2.8  
Microelectronics
     75,285       21.2       17.7  
 
                      
Total Industrial segment
   $ 332,995       14.6       9.8  
 
                      
 
            % OF SALES          
Gross profit
   $ 152,545       45.8 %        
Operating profit
   $ 48,373       14.5 %        

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EXHIBIT 99
Highlights of the Quarter:
General Industrial systems sales growth in the Municipal Water and energy markets was particularly strong.
Microelectronics sales continue to benefit from our strategic diversification into the consumer side of the electronics market. Sales in Asia were robust while the U.S. market started to slow in the quarter.
Gross margins were on par with last year. S,G&A improved by 3.1% as a percentage of sales to 29.1% reflecting top-line leverage and cost reduction initiatives. Operating profit increased almost 42% to $48.4 million and operating margin improved to 14.5% from 11.8% last year.
The backlog in Industrial was up 21% compared to a year ago. The systems backlog increased 24%, with particularly strong growth in the Municipal Water market.
Outlook
Life Sciences: We continue to expect mid single-digit sales growth in fiscal 2007 with Medical sales growth abating in the second half of the year and BioPharmaceuticals achieving low double-digit growth for the year.
Industrial: We expect sales in Pall Industrial to modestly surpass the 5-7% growth range provided at the beginning of the fiscal year reflecting a slowdown in Microelectronics and the consistent vitality of the systems business.
We expect gross margins for the Corporation to stabilize as the impact of our cost reduction initiatives grows. S,G&A is expected to be about 31% of sales for the full year and our underlying tax rate to be about 24% for the full year. Free cash flow (net cash provided by operating activities less capital expenditures) is expected to exceed our earlier estimate of $135 to $180 million.
With these six month results and assuming a steady macroeconomic environment, we now expect to post full year earnings per share on a pro forma basis above our original guidance of $1.45 to $1.60.
Conference Call
Tomorrow, March 2, 2007, at 8:30 am ET, Pall Corporation will host its quarterly earnings conference call. The call will be webcast and individuals can access it at www.pall.com/investor. Listening to the webcast requires speakers and Microsoft Windows Media Player software. The webcast will be archived for 30 days.
About Pall Corporation:
Pall Corporation is the global leader in the rapidly growing field of filtration, separation and purification. Pall is organized into two businesses: Life Sciences and Industrial. These businesses provide leading-edge products to meet the demanding needs of customers in biotechnology, pharmaceutical, transfusion medicine, energy, electronics, municipal and industrial water purification, aerospace, transportation and broad industrial markets. Total revenues for fiscal year 2006 were $2.0 billion. The Company headquarters is in East Hills, New York with extensive operations throughout the world. For more information visit Pall at http://www.pall.com/.

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EXHIBIT 99
Forward Looking Statements:
Results for second quarter ended January 31, 2007 are preliminary until the Company’s Form 10-Q is filed with the Securities and Exchange Commission. Forward-looking statements contained in this and other written and oral reports are based on current Company expectations and are subject to risks and uncertainties, which could cause actual results to differ materially. All statements regarding future performance, earnings projections, earnings guidance, events or developments are forward-looking statements. Such risks and uncertainties include, but are not limited to: changes in product mix and product pricing particularly as we expand our systems business in which we experience significantly longer sales cycles and less predictable revenue with no certainty of future revenue streams from related consumable product offerings and services; increases in costs of manufacturing and operating costs including energy and raw materials; the Company’s ability to achieve the savings anticipated from cost reduction and margin improvement initiatives including the timing of completion of the facilities rationalization initiative; fluctuations in foreign currency exchange rates and interest rates; regulatory approval and market acceptance of new technologies; changes in business relationships with key customers and suppliers including delays or cancellations in shipments; success in enforcing patents and protecting proprietary products and manufacturing techniques; successful completion or integration of acquisitions; domestic and international competition in the Company’s global markets; and global and regional economic conditions and legislative, regulatory and political developments. The Company makes these statements as of the date of this disclosure and undertakes no obligation to update them.
Management uses certain non-GAAP measurements to assess Pall’s current and future financial performance. The non-GAAP measurements do not replace the presentation of Pall’s GAAP financial results. These measurements provide supplemental information to assist management in analyzing Pall’s financial position and results of operations. Pall has chosen to provide this information to facilitate meaningful comparisons of past, present and future operating results and as a means to emphasize the results of ongoing operations.

4

 

PALL CORPORATION
CONDENSED CONSOLIDATED BALANCE SHEETS
(Unaudited)
(AMOUNTS IN THOUSANDS)
                 
    JAN. 31, 2007     JUL. 31, 2006  
Assets:
                
Cash and cash equivalents
   $ 345,686     $ 317,657  
Accounts receivable
     476,286       517,632  
Inventories
     434,891       408,273  
Other current assets
     141,405       133,419  
 
            
Total current assets
     1,398,268       1,376,981  
 
            
 
                
Property, plant and equipment, net
     576,730       620,979  
Other assets
     536,848       554,898  
 
            
Total assets
   $ 2,511,846     $ 2,552,858  
 
            
 
                
Liabilities and Stockholders’ Equity:
                
 
                
Short-term debt
   $ 55,090     $ 63,382  
Accounts payable, income taxes and other current liabilities
     454,908       467,434  
 
            
Total current liabilities
     509,998       530,816  
 
            
 
                
Long-term debt
     533,993       640,015  
Deferred taxes and other non-current liabilities
     207,413       203,331  
 
            
Total liabilities
     1,251,404       1,374,162  
 
                
Stockholders’ Equity
     1,260,442       1,178,696  
 
            
Total liabilities and stockholders’ equity
   $ 2,511,846     $ 2,552,858  
 
            

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EXHIBIT 99
PALL CORPORATION
CONSOLIDATED STATEMENTS OF EARNINGS
(Unaudited)
(Amounts in thousands, except per share data)
                                 
    SECOND QUARTER ENDED     SIX MONTHS ENDED  
    JAN. 31,     JAN. 31,     JAN. 31,     JAN. 31,  
    2007     2006     2007     2006  
Net Sales
   $ 544,930     $ 478,436     $ 1,044,218     $ 909,598  
Cost of sales
     288,460 (a)     252,618 (b)     564,076 (a)     482,103 (b)
 
                        
Gross profit
     256,470       225,818       480,142       427,495  
 
                        
% of sales
     47.1 %     47.2 %     46.0 %     47.0 %
Selling, general and administrative expenses
     168,203       159,136       325,578       308,843  
Research and development
     15,277       14,398       29,511       27,464  
 
                        
 
                                
Earnings before restructuring and other charges/(gains), net (“ROTC”), interest expense, net, and income taxes
     72,990       52,284       125,053       91,188  
ROTC
     (3,648 )(a)     3,736 (b)     13,440 (a)     3,686 (b)
Interest expense, net
     4,848       5,642       10,634       11,381  
 
                        
 
                                
Earnings before income taxes
     71,790       42,906       100,979       76,121  
Provision for income taxes
     15,987 (a)     10,470       20,742 (a)     18,575  
 
                        
Net earnings
   $ 55,803     $ 32,436     $ 80,237     $ 57,546  
 
                        
 
                                
Earnings per share:
                                
Basic
   $ 0.45     $ 0.26     $ 0.65     $ 0.46  
Diluted
   $ 0.45     $ 0.26     $ 0.64     $ 0.46  
 
                                
Average shares outstanding:
                                
Basic
     123,185       125,225       122,988       125,045  
Diluted
     124,504       126,090       124,392       125,879  
 
                                
Net earnings as reported
   $ 55,803     $ 32,436     $ 80,237     $ 57,546  

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EXHIBIT 99
                                 
    SECOND QUARTER ENDED     SIX MONTHS ENDED  
    JAN. 31,     JAN. 31,     JAN. 31,     JAN. 31,  
    2007     2006     2007     2006  
ROTC and one-time purchase accounting adjustment, after pro forma tax effect
     (915 )     2,608       10,146       2,779  
Reversal of valuation allowance
     (1,517 )     —       (1,517 )     —  
 
                        
Pro forma earnings
   $ 53,371     $ 35,044     $ 88,866     $ 60,325  
 
                        
 
                                
Diluted earnings per share as reported
   $ 0.45     $ 0.26     $ 0.64     $ 0.46  
ROTC and one-time purchase accounting adjustment, after pro forma tax effect
     (0.01 )     0.02       0.08       0.02  
Reversal of valuation allowance
     (0.01 )     —       (0.01 )     —  
 
                        
 
                                
Pro forma diluted earnings per share
   $ 0.43     $ 0.28     $ 0.71     $ 0.48  
 
                        
 
(a)   Cost of sales includes incremental depreciation and other adjustments of $1,523 (1 cent per share after pro forma tax effect) in the quarter and $1,950 (1 cent per share, after pro forma tax effect) in the six months recorded in conjunction with the Company’s facilities rationalization initiative. Furthermore, cost of sales includes a charge of $566 for the quarter and six months related to a one-time purchase accounting adjustment to record at market value, inventory acquired from BioSepra. This resulted in an $2,431 increase in acquired inventories in accordance with SFAS No. 141 “Business Combinations” and charges to cost of sales in the periods when the sale of a portion of the underlying inventory occurred.
 
    ROTC in the quarter includes income of $3,648 (2 cents per share, after pro forma tax effect) primarily comprised of a gain on the sale of a facility partly offset by severance and other costs related to the Company’s cost reduction programs, including its facilities rationalization initiative. ROTC in the six months includes a charge of $10,879 (6 cents per share, after pro forma tax effect) primarily comprised of severance costs and an impairment charge on certain long-lived assets partly offset by a gain on the sale of a facility. The charges in the six months relate to the Company’s cost reduction programs, including its facilities rationalization initiative. In addition, the six months includes $2,561 (1 cent per share, after pro forma tax effect) related to an increase in environmental reserves.

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EXHIBIT 99
    Provision for income taxes includes the reversal of a deferred tax asset valuation reserve of $1,517 (1 cent per share) in the quarter and six months.
 
(b)   Included in cost of sales is a charge of $195 and $506 in the quarter and six months, respectively, related to a one-time purchase accounting adjustment to record at market value, inventory acquired from BioSepra as discussed above.
 
    ROTC includes severance and other costs of $4,130 (2 cents per share, after pro forma tax effect) in the quarter and $5,886 (3 cents per share, after pro forma tax effect) in the six months primarily related to the Company’s business realignment and ongoing cost reduction programs, partly offset by gains of $394 in the quarter and $2,200 ( 1 cent per share, after pro forma tax effect) in the six months.

8

 

EXHIBIT 99
PALL CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOW
(Unaudited)
(AMOUNTS IN THOUSANDS)
                 
    SIX MONTHS ENDED  
    JAN. 31, 2007     JAN. 31, 2006  
 
            
Net cash provided by operating activities
   $ 148,875     $ 125,020  
 
            
 
                
Investing activities:
                
 
                
Proceeds from sale of assets
     42,029       —  
Capital expenditures
     (32,210 )     (52,021 )
Other
     127       (7,591 )
 
            
 
                
Net cash provided/(used) by investing activities
     9,946       (59,612 )
 
            
 
                
Financing activities:
                
 
                
Dividends paid
     (26,885 )     (24,885 )
Notes payable and long-term borrowings
     (121,281 )     11,651  
Purchase of treasury stock
     (11,800 )     (5,750 )
Other
     27,759       14,861  
 
            
Net cash used by financing activities
     (132,207 )     (4,123 )
 
            
 
                
Cash flow for period
     26,614       61,285  
Cash and cash equivalents at beginning of year
     317,657       164,928  
Effect of exchange rate changes on cash
     1,415       1,785  
 
            
Cash and cash equivalents at end of period
   $ 345,686     $ 227,998  
 
            
 
                
Free cash flow:
                
Net cash provided by operating activities
   $ 148,875     $ 125,020  
Less capital expenditures
     32,210       52,021  
 
            
Free cash flow
   $ 116,665     $ 72,999  
 
            

9

 

EXHIBIT 99
PALL CORPORATION
SUMMARY STATEMENT OF OPERATING PROFIT BY SEGMENT
(Unaudited)
(DOLLAR AMOUNTS IN THOUSANDS)
                                 
    SECOND QUARTER ENDED     SIX MONTHS ENDED  
    JAN. 31, 2007     JAN. 31, 2006     JAN. 31, 2007     JAN. 31, 2006  
Life Sciences
                                
Sales
   $ 211,935     $ 187,867     $ 404,937     $ 356,814  
Cost of sales (a)
     105,921       95,265       203,697       181,835  
 
                        
Gross profit
     106,014       92,602       201,240       174,979  
% of sales
     50.0 %     49.3 %     49.7 %     49.0 %
 
                                
Selling, general and administrative expenses
     61,136       56,356       119,528       109,352  
Research and development
     7,842       8,697       15,488       15,511  
 
                        
Operating profit
   $ 37,036     $ 27,549     $ 66,224     $ 50,116  
% of sales
     17.5 %     14.7 %     16.4 %     14.0 %
 
                        
 
                                
Industrial
                                
Sales
   $ 332,995     $ 290,569     $ 639,281     $ 552,784  
Cost of sales (a)
     180,450       157,158       357,863       299,762  
 
                        
Gross profit
     152,545       133,411       281,418       253,022  
% of sales
     45.8 %     45.9 %     44.0 %     45.8 %
 
                                
Selling, general and administrative expenses
     96,737       93,564       185,733       180,142  
Research and development
     7,435       5,701       14,023       11,953  
 
                        
 
                                
Operating profit
   $ 48,373     $ 34,146     $ 81,662     $ 60,927  
% of sales
     14.5 %     11.8 %     12.8 %     11.0 %
 
                        

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EXHIBIT 99
                                 
    SECOND QUARTER ENDED     SIX MONTHS ENDED  
    JAN. 31, 2007     JAN. 31, 2006     JAN. 31, 2007     JAN. 31, 2006  
CONSOLIDATED:
                                
Operating profit
   $ 85,409     $ 61,695     $ 147,886     $ 111,043  
General corporate expenses
     (10,330 )     (9,216 )     (20,317 )     (19,349 )
 
                        
Earnings before ROTC, interest expense, net and income taxes(a)
     75,079       52,479       127,569       91,694  
ROTC (a)
     1,559       (3,931 )     (15,956 )     (4,192 )
Interest expense, net
     (4,848 )     (5,642 )     (10,634 )     (11,381 )
 
                        
Earnings before income taxes
   $ 71,790     $ 42,906     $ 100,979     $ 76,121  
 
                        
 
(a)   Included in ROTC for the purpose of evaluation of segment profitability are other adjustments recorded in cost of sales. For the quarter and six months ended January 31, 2007, such adjustments include incremental depreciation and other adjustments of $1,523 and $1,950 recorded in conjunction with the Company’s facilities rationalization initiative. Furthermore, such adjustments include a charge of $566 for the quarter and six months ended January 31, 2007 and $195 and $506 for the quarter and six months ended January 31, 2006, respectively, related to a one-time purchase accounting adjustment to record at market value, inventory acquired from BioSepra. This resulted in an $2,431 increase in acquired inventories in accordance with SFAS No. 141 “Business Combinations” and charges to cost of sales in in the periods when the sale of a portion of the underlying inventory occurred.

11

 

EXHIBIT 99
PALL CORPORATION
SUPPLEMENTAL SEGMENT SALES INFORMATION BY MARKET AND GEOGRAPHY
(Unaudited)
(DOLLAR AMOUNTS IN THOUSANDS)
                                 
                            % CHANGE  
                            IN LOCAL  
SECOND QUARTER ENDED   JAN. 31, 2007     JAN. 31, 2006     % CHANGE     CURRENCY  
Life Sciences
                                
By Market:
                                
Medical
   $ 119,605     $ 107,310       11.5       7.7  
BioPharmaceuticals
     92,330       80,557       14.6       8.8  
 
                            
Total Life Sciences
   $ 211,935     $ 187,867       12.8       8.1  
 
                            
 
                                
By Geography:
                                
Western Hemisphere
   $ 89,441     $ 86,335       3.6       3.6  
Europe
     95,249       76,047       25.3       14.6  
Asia
     27,245       25,485       6.9       4.4  
 
                            
Total Life Sciences
   $ 211,935     $ 187,867       12.8       8.1  
 
                            
 
                                
Industrial
                                
By Market:
                                
General Industrial (a)
   $ 196,975     $ 171,876       14.6       9.3  
Aerospace and Transportation (a)
     60,735       56,563       7.4       2.8  
Microelectronics
     75,285       62,130       21.2       17.7  
 
                            
Total Industrial
   $ 332,995     $ 290,569       14.6       9.8  
 
                            
 
                                
By Geography:
                                
Western Hemisphere
   $ 96,949     $ 91,498       6.0       6.0  
Europe
     131,687       112,150       17.4       7.5  
Asia
     104,359       86,921       20.1       17.0  
 
                            
Total Industrial
   $ 332,995     $ 290,569       14.6       9.8  
 
                            
 
(a)   Certain prior year amounts have been reclassified to conform to the current year presentation.

12

 

EXHIBIT 99
PALL CORPORATION
SUPPLEMENTAL SEGMENT SALES INFORMATION BY MARKET AND GEOGRAPHY
(Unaudited)
(DOLLAR AMOUNTS IN THOUSANDS)
                                 
                            % CHANGE  
                            IN LOCAL  
SIX MONTHS ENDED   JAN. 31, 2007     JAN. 31, 2006     % CHANGE     CURRENCY  
Life Sciences
                                
By Market:
                                
Medical
   $ 223,117     $ 202,457       10.2       7.5  
BioPharmaceuticals
     181,820       154,357       17.8       13.5  
 
                            
Total Life Sciences
   $ 404,937     $ 356,814       13.5       10.1  
 
                            
 
                                
By Geography:
                                
Western Hemisphere
   $ 173,637     $ 162,416       6.9       6.8  
Europe
     179,921       145,628       23.6       15.5  
Asia
     51,379       48,770       5.4       4.7  
 
                            
Total Life Sciences
   $ 404,937     $ 356,814       13.5       10.1  
 
                            
 
                                
Industrial
                                
By Market:
                                
General Industrial (a)
   $ 372,048     $ 325,547       14.3       10.3  
Aerospace and Transportation (a)
     121,067       111,699       8.4       5.1  
Microelectronics
     146,166       115,538       26.5       24.2  
 
                            
Total Industrial
   $ 639,281     $ 552,784       15.7       12.2  
 
                            
 
                                
By Geography:
                                
Western Hemisphere
   $ 185,915     $ 170,052       9.3       9.2  
Europe
     251,120       214,257       17.2       9.7  
Asia
     202,246       168,475       20.1       18.3  
 
                            
Total Industrial
   $ 639,281     $ 552,784       15.7       12.2  
 
                            
 
(a)   Certain prior year amounts have been reclassified to conform to the current year presentation.

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EXHIBIT 99
PALL CORPORATION
SUMMARY STATEMENT OF OPERATING PROFIT BY SEGMENT
Restated Fiscal Year 2006 By Quarter
(Unaudited)
(DOLLAR AMOUNTS IN THOUSANDS)
                                         
    Q1     Q2     Q3     Q4        
    OCT. 31,     JAN. 31,     APRIL 30,     JULY 31,     Total Year  
    2005     2006     2006     2006     2006  
Life Sciences
                                        
Sales
   $ 168,947     $ 187,867     $ 205,937     $ 233,554     $ 796,305  
Cost of sales (a)
     86,570       95,265       103,185       116,204       401,224  
 
                              
Gross profit
     82,377       92,602       102,752       117,350       395,081  
% of sales
     48.8 %     49.3 %     49.9 %     50.2 %     49.6 %
 
                                        
Selling, general and administrative expenses
     52,996       56,356       54,159       61,543       225,054  
% of sales
     31.4 %     30.0 %     26.3 %     26.4 %     28.3 %
Research and development
     6,814       8,697       7,625       8,452       31,588  
 
                              
Operating profit
   $ 22,567     $ 27,549     $ 40,968     $ 47,355     $ 138,439  
% of sales
     13.4 %     14.7 %     19.9 %     20.3 %     17.4 %
 
                              
 
                                        
Industrial
                                        
Sales
   $ 262,215     $ 290,569     $ 304,044     $ 363,697     $ 1,220,525  
Cost of sales (a)
     142,604       157,158       167,870       202,227       669,859  
 
                              
Gross profit
     119,611       133,411       136,174       161,470       550,666  
% of sales
     45.6 %     45.9 %     44.8 %     44.4 %     45.1 %
 
                                        
Selling, general and administrative expenses
     86,578       93,564       92,880       101,265       374,287  
% of sales
     33.0 %     32.2 %     30.5 %     27.8 %     30.7 %
Research and development
     6,252       5,701       6,886       6,944       25,783  
 
                              
Operating profit
   $ 26,781     $ 34,146     $ 36,408     $ 53,261     $ 150,596  
% of sales
     10.2 %     11.8 %     12.0 %     14.6 %     12.3 %
 
                              

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EXHIBIT 99
                                         
    Q1     Q2     Q3     Q4        
    OCT. 31,     JAN. 31,     APRIL 30,     JULY 31,     Total Year  
    2005     2006     2006     2006     2006  
CONSOLIDATED:
                                        
Operating profit
   $ 49,348     $ 61,695     $ 77,376     $ 100,616     $ 289,035  
General corporate expenses
     (10,133 )     (9,216 )     (10,368 )     (11,972 )     (41,689 )
 
                              
Earnings before ROTC, interest expense, net and income taxes (a)
     39,215       52,479       67,008       88,644       247,346  
ROTC (a)
     (261 )     (3,931 )     (7,646 )     (2,155 )     (13,993 )
Interest expense, net
     (5,739 )     (5,642 )     (5,091 )     (6,505 )     (22,977 )
 
                              
Earnings before income taxes
   $ 33,215     $ 42,906     $ 54,271     $ 79,984     $ 210,376  
 
                              
 
(a)   Included in ROTC for the purpose of evaluation of segment profitability are other adjustments of $1,667 recorded in cost of sales; $769 related to incremental depreciation recorded in conjunction with the Company’s facilities rationalization initiative and $898 related to a one-time purchase accounting adjustment to record at market value, inventory acquired from Biosepra. This resulted in a $2,431 increase in acquired inventories in accordance with SFAS No. 141 and a charge to cost of sales concurrent with the sale of a portion of the underlying inventory.

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EXHIBIT 99
PALL CORPORATION
SUPPLEMENTAL SALES INFORMATION BY GEOGRAPHY
Fiscal Year 2006 By Quarter
(Unaudited)
(DOLLAR AMOUNTS IN THOUSANDS)
                                         
    Q1     Q2     Q3     Q4        
    OCT. 31,     JAN. 31,     APRIL 30,     JULY 31,     Total Year  
    2005     2006     2006     2006     2006  
Life Sciences
                                        
Western Hemisphere
   $ 76,081     $ 86,335     $ 91,691     $ 97,920     $ 352,027  
Europe
     69,581       76,047       86,096       103,365       335,089  
Asia
     23,285       25,485       28,150       32,269       109,189  
 
                              
Total Life Sciences
   $ 168,947     $ 187,867     $ 205,937     $ 233,554     $ 796,305  
 
                              
 
                                        
Industrial
                                        
Western Hemisphere
   $ 78,554     $ 91,498     $ 94,147     $ 111,289     $ 375,488  
Europe
     102,107       112,150       114,683       142,001       470,941  
Asia
     81,554       86,921       95,214       110,407       374,096  
 
                              
Total Industrial
   $ 262,215     $ 290,569     $ 304,044     $ 363,697     $ 1,220,525  
 
                              
Contact:
Lisa McDermott
Pall Corporation
516-801-9808

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