CLARCOR FY 4Q15 Earnings Call Notes

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CLARCOR’s (CLC) CEO Chris Conway on Q4 2015 Results

Economic conditions are unsettled

“As we entered 2016, economic conditions are as unsettled as they were at the start of the year.”

Conditions remain challenging and have even deteriorated in Ag and Energy. Cost cuts forthcoming.

“Conditions in these markets remain challenging in an Ag and oil and gas have even deteriorated from where they were last year at this time. As a result we made adjustments in our business with our restructuring in the fourth quarter in order to reflect the market conditions we face. We expect a headcount reduction and other cost reduction initiative we have undertaken. ”

David Fallon

Expectation that these dynamics will continue into 2016

“Based upon these challenges and our expectation that these dynamics will likely continue into fiscal 2016. We have taken some aggressive cost reduction actions as summarized by Chris in his comments.”

Pressure should actually get worse in ag and construction equipment businesses based on orders we’re seeing

“If you look at some of the other businesses that we anticipate the see pressure one is agricultural and construction equipment businesses. Sales there were down by 23% in the fourth quarter only 16% for the year so it’s certainly ramped up as we moved through in the third and fourth quarters. We anticipate that pressure to actually get a little bit worse based on the orders that we have here in the first quarter.”

We think we’re at a low point in agricultural activity here in the first quarter

“I would say we don’t have crystal ball, it’s hard for us to project when agricultural activity is going to turn around, however we do believe we are at a low point here in the first quarter as it relates for that activity based on conversation with some of our customers.”