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.”

Miscellaneous Notes 3.18.16

IDEXX 2016 Shareholder Letter CEO Andrew Silvernail

Values are our foundation

“Our culture is to win as a team in a high performance environment where people are inveted to do and be their best every day. Our values are the foundation of our culture and guide our decisions and actions.”

Sherwin Williams 2016 Shareholder Letter CEO Christopher Connor

The world looks different than in December

“In many respects the world looks different today than it did just a few short months ago when the Federal Reserve Bank took its first step toward interest rate normalization. In most advanced economies a modest choppy recovery is expected to continue.”

JA Solar Holdings’ (JASO) Q4 2015 Results Jian Xie — President

Solar shipments are heading to countries throughout Asia

“By geography, Asia continued to drive our growth, but we are seeing traction in new regions. Asia was over 80% of shipment, a dominant number but down from over 90% in Q3. China declined from over 50% of shipments to 44% as other Asia-Pacific regions grew. For instance, we shipped 180 megawatts into the Philippines, a demonstration of our dominant position in the market. We are also growing in other regions in the regions such as Thailand, India, and Australia. ”

FactSet Research Systems’ (FDS) CEO Phil Snow on Q2 2016 Results

Scott Miller

Haven’t seen a dramatic shift in spending

“Not dramatically different than we had seen in the previous quarters. We are – clearly as we’ve said over the last couple of questions, market volatility gets people thinking and pausing a little bit but we haven’t seen a dramatic shift in the spending. When you do see markets go the way they did, in many cases, there is a requirement for more analytics and more data. So we are approaching it from a proactive standpoint and we haven’t really seen a dramatic shift in spending.”

CLARCOR’s (CLC) CEO Chris Conway on Q1 2016 Results

David Fallon

Sales into ag and natural gas didn’t decline as much as expected

“Better than expected financial performance was assisted by higher than expected sales of fuel filtration products into the Ag and construction equipment markets. Although sales in these markets declined 17% from last year’s first quarter, we as we discussed in our January call, had expected sales to drop 25% to 30%. In addition, although sales in our natural gas filtration market declined 12% from last year’s first quarter, we had expected sales to decline 20% to 25%.”

Jeremy’s Miscellaneous Notes

Former GE CEO Jack Welch said the economy is improving

“Today, as I sit here, I’ve spent the last few days at Private Equity firm Clayton Dubilier & Rice, looking at 6 businesses, things are looking up.  It’s clearly a pocket of change, particularly in the last couple of weeks in February and the first couple of weeks in March.  It’s that recent.  It feels a lot better, there’s just no question about it.”

And he says consumers are leading this rebound in economic strength

“We know the consumer has more money now, whether it’s gas prices or employment levels.  You’re getting strength in autos, you’re getting real strength in housing.  And the housing sector spills off into so many businesses.”

Source: Video Interview

CLARCOR FY 4Q15 Earnings Call Notes

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.”