CLARCOR 3Q16 Earnings Call Notes

CLARCOR’s (CLC) CEO Christopher Conway on Q3 2016 Results

Expect continued challenges in 4Q

“Many of the markets we faced remained challenged most significantly in our oil and gas related businesses and to a lesser extent, agriculture and industrial air markets. And we anticipate these challenges continuing through the fourth quarter, such that we are reducing the midpoint of our 2016 guidance to $2.60.”

David Fallon

Some say oil and gas has stabilized but we’re not seeing it

“We put guidance out there just like any company, there’s a level of uncertainty. The thing that most significantly impacted our look into this year compared to where we said in January was the oil and gas business, and quite frankly, we got it wrong. I think our initial guidance had that business down 10%, and it’s probably going to be down more than 20%. Now there has been some favorable offset.

But I think going into next year, there will be that similar uncertainty with oil and gas. There are some that say that that market has stabilized. Quite frankly, we’re not seeing it. And we’ve talked at the end of the second quarter and we can reiterate again today that it could be another down year in oil and gas for us next year. I think that’s probably the most significant variable. There is always positives and negative surprises as you go through the year. But most of our businesses aftermarket and there is a sense of stability with that aftermarket.

For the Engine/Mobile side of things, we’re definitely impacted by the ag and construction equipment markets. In general, we’ve got that somewhat right. I think it maybe has been a little worse than we anticipated but it’s within the range of what we think is reasonable.”