Thanks largely to booming sales of gas turbine product, the Donaldson Company posted record revenues and earnings for fiscal 2001.

Total revenues for the year, which ended July 31, were $1.14 billion, a 4.1% increase over fiscal 2000 and a company record. Net earnings were a record $75.5 million, up 7.6% from the previous year. Revenue for the fourth quarter was $297.8 million, down 1.1% from the same period a year ago. Net fourth quarter earnings were a record $22.8 million, up 24.4% from last year.
“Our people worked through the most challenging business environment in the past decade to deliver their 12th consecutive year of double-digit earnings growth,” said Bill Van Dyke, chairman, president and CEO. “In spite of the strong headwind faced this year -- a depressed truck market in North America, soft U.S. capital spending, weakening international economic conditions, negative foreign currency shifts and our significant investment in plant rationalization -- we still got the job done.”
Sales in its Engine Products segment were hurt by the weak North American economy and by the strong U.S. dollar overseas. Engine product revenues for the year totaled $606.8 million, down 10% from 2000. Fourth quarter sales were $151.7 million, down 15%. Sales of products for medium and heavy duty trucks were $79.7 million for the year, down 47.6%; and $19.9 million for the fourth quarter, down 38.6%.
Worldwide sales of off-road products were $181.8 million for the year, down 5.9% from 2000, and $44.9 million for the quarter, down 13.7%. Aftermarket product sales were $345.3 million for the year, an increase of 5% from 2000, and $86.9 million for the quarter, a decrease of 7.5% from fourth quarter 2000.
Donaldson noted that industry build rates suggest that the medium and heavy truck market may be starting a slow recovery. The company expects another decline in truck product sales during its first fiscal quarter but a gradual increase from there. Aftermarket product sales are expected to be about flat the next two quarters. Off-road sales will be down slightly until international economic conditions improve.
In Donaldson’s Industrial Products segment, annual sales of gas turbine products in 2001 were a record $195 million, up 66.6% from the previous year. Sales for the quarter were a record $68 million, up 117.5% from fourth quarter 2000.