UPDATE: Polypore (PPO) Issues Q3, Q4 EPS Warnings, Shares Slammed

Polypore International (NYSE: PPO) issued an update to guidance aahead of its investor day, which will focus on technology, strategy and competitive position. Shares are down over 12 percent in early trading.

From the release [emphasis ours]:

• Based on the results through July and August, earnings for the second half of 2012 are expected to be in a range similar to or slightly below the first half of 2012.
  
  
• The same temporary items that affected the second quarter continued into the third quarter. While September sales are improving, the seasonality and weakness experienced in July and August, combined with the recently announced temporary shut-down of a plug-in electric drive vehicle production facility, are expected to result in Adjusted EPS for the third quarter in the low- to mid-30-cent range.
  
  The Street was looking for Q3 EPS of 49 cents.
  
  
• The September sales momentum is expected to continue into the fourth quarter with strong sequential improvement being driven by the following factors:
  
  
• A favorable lead-acid battery build schedule in preparation for winter months leading to improved separator sales
  
  
• The start-up of two electric drive vehicle production facilities – one in the United States and another in the United Kingdom
  
  
• The re-start of the previously mentioned customer's plug-in hybrid production facility
  
  
• The re-start of production by healthcare customers originally shut down by the earthquakes in Italy
  
  
• The fulfillment of certain orders delayed by filtration customers from the third quarter into the fourth quarter.

As a result, the Company expects Adjusted EPS for the fourth quarter in the low-50-cent to low-60-cent range.

The Street sees Q4 EPS of 62 cents.

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