Donaldson Profit Falls Slightly in Most Recent Quarter
Donaldson released financial results for its fiscal second quarter ending at the close of January, showing a 14% drop in net earnings despite a small uptick in sales.
Donaldson Co. Inc. on Tuesday released financial results for its fiscal second quarter ending at the close of January, showing a 14% drop in net earnings despite a small uptick in sales.
Net earnings for the filtration provider to trucking and other industries totaled $50 million compared to $58 million the same time a year earlier, or 35 cents per diluted share compared to 39 cents per diluted share.
Net sales increased to $597 million from $582 million during the same time frame.
When the past six months are compared to a year earlier, net sales increased 1% while net earnings fell 13%. In fiscal 2014, Donaldson reported sales of $2.5 billion and record earnings per share.
The company said much of the decline in net earnings was due to a strengthened U.S. dollar, payments to its U.S. pension plan and a favorable settlement from a tax audit a year earlier.
“Overall, the currency headwinds were significant in the quarter and decreased our reported sales by $28 million compared to the prior year," said CEO Bill Cook. “We achieved solid constant currency sales growth of 7% in the quarter.”
He said Donaldson expects global economic conditions to improve only slightly over the next year. “In addition to the negative impact of the stronger U.S. dollar, the slow growth of the global economy combined with ongoing weak commodity prices is projected to have a negative impact on most of our OEM customers' sales, and as a result, ours.”
Overall the company now expects full-year sales to be flat to down 3%, which should result in fiscal 2015 diluted EPS of between $1.65 and $1.85 per share, excluding restructuring and pension lump sum settlement expenses.
"Since current conditions in many of our end markets remain weak, we will implement additional productivity improvement and restructuring actions during the balance of this fiscal year,” Cook said. “This will allow us to continue to invest in our key growth initiatives as we execute our plan to grow to $5 billion in revenues by Fiscal 2021."
For the 2015 fiscal year, Donaldson is projecting overall sales to be between $2.40 billion and $2.50 billion.
In its engine products division, it is forecasting sales growth to be down as much as 3%, due to foreign currency translation. In local currency, sales are forecasted to increase 1% to 5%.
Donaldson said its on-road OEM customers are expecting to increase production of heavy- and medium-duty trucks in 2015, while demand from off-road OEM customers is anticipated to be mixed, but it is anticipating continued strong growth for its engine aftermarket business globally.
As for the company’s industrial products division, it is forecasting sales to increase as much as 3%, including the impact of foreign currency translation. In local currency, sales are forecasted to increase 5% to 8%. Filtration sales are projected to be down as much as 4%, due mainly to currency headwinds.
More Equipment

Atlas Expands Kodiak Driverless Truck Fleet in Permian Basin
Atlas Energy Solutions is expanding autonomous frac sand hauling in the Permian Basin with a second load-out location and plans for 100 driverless trucks by mid-2027.
Read More →
Putting Mack’s Command Steer to the Test
A test drive of Mack’s Command Steer active steering system evaluates how it can make truck driving easier and less tiring.
Read More →
Mack, Volvo Expand DEF Derate Software Updates
The updated software gives Mack and Volvo truck owners more time to address DEF-related issues before the engine derates or the vehicle goes into reduced-speed inducement, following new EPA guidance.
Read More →
Rush, MCT Team Up to Grow Refrigeration Service Network
The joint venture will operate MCT's network of Carrier Transicold dealerships and mobile service locations, with the companies promising greater service capacity and uptime for refrigerated fleets.
Read More →
Cummins Adjusts 2027 Engine Rollout After EPA Proposal
The engine maker will gradually introduce its new Model Year 2027 diesel engines while continuing to offer current models during the transition, citing the EPA's proposed emissions rule changes.
Read More →
Aurora Rolls Out Next Generation of Driverless Trucks for Commercial Freight
Aurora's latest autonomous trucks it's rolling out with International feature lower-cost hardware designed for a million miles as the company expands commercial driverless freight operations across the U.S. Sun Belt.
Read More →
Peterbilt 589 Spotlight: A Close Look at a Custom Working Truck [Video]
There's more to this customized Peterbilt Model 589 and Great Dane refrigerated trailer than chrome and stainless (although there's plenty of that too!) A veteran driver explains the design choices and practical features behind this working truck.
Read More →
Continental Expands Retread Lineup With New ContiTread HDL 5 EP
New long-haul drive retread is designed to improve fuel efficiency, extend tread life, and lower fleets' cost per mile.
Read More →
EPA Proposal Could Ease 2027 Truck Costs and Buying Uncertainty
The proposal doesn't change the tougher NOx standard, but it would revise key implementation requirements that manufacturers say have driven up costs and complicated fleet purchasing decisions.
Read More →
Cummins, Paccar Ease DEF Derates After EPA Guidance
Updated diesel engine software gives truck operators more time to address emissions-system issues while staying compliant with EPA emissions standards.
Read More →
