Despite a 13.5 percent drop in engine product sales, Donaldson Co. reported record revenue of $279.6 million for its second fiscal quarter ending Jan. 31.
Net earnings were $18.1 million. Revenue in second quarter quarter last year was $259.3 million. Net earnings were $17.4 million.
For the first six months, Donaldson's revenues were $569.5 million, up 12.6 percent from the first six months of fiscal 2000. Net earnings were $34.9 million, an incrase of 1.4 percent.
Engine product sales for the quarter were $136.6 million, compared to $160.2 million the previous year. Sales for the first six months were $305.8 million, down 4.9 percent.
The company said the decrease in revenue reflects an overall slowing in the U.S.
economy, excess inventory among Donaldson customers, and price pressures on suppliers.
Worldwide sales of medium and heavy duty truck products for the were down 58 percent from a year ago. Year-to-date they were down 52 percent. Roughly 60 percent of the drop reflects the dramatic downturn in the North American truckmarket, the company said. Donaldson also discontinued a block of business with a major customer "due to unfavorable commercial terms."
The decline in engine product sales was offset by a $141 million in industrial
product sales, a 42.4 percent increase from the previous year.