Donaldson Company Reports Second Quarter 2019 Earnings
Donaldson achieves record second quarter sales and EPS1
Second quarter 2019 sales increased 5.9 percent from 2018, or 8.6 percent in constant currency
Donaldson’s fiscal 2019 forecast reflects a year-over-year sales increase of 5 to 9 percent and an
operating margin increase of 0.4 to 0.8 percentage points
MINNEAPOLIS (March 6, 2019) - Donaldson Company, Inc. (NYSE: DCI) today reported record second quarter net earnings of $60.1 million, compared with a loss of $52.9 million in 2018. The current- and prior-year periods included tax expense of $0.4 million and $109.7 million, respectively, related to the Federal Tax Cuts and Jobs Act (TCJA).2 Excluding these impacts, second quarter 2019 adjusted EPS3 increased 9.3 percent to $0.47 from $0.43 in 2018. The tables attached to this press release include a reconciliation of GAAP to non-GAAP measures.
“We delivered second quarter sales and earnings records, with benefits from execution of our strategic priorities and expense leverage more than offsetting the impacts from volatility within the quarter related to market conditions and currency,” said Tod Carpenter, chairman, president and chief executive officer. “As we move through the cycle, we naturally expect the pace of growth in certain businesses will moderate; however, uneven demand during the past quarter, including a sharp and broad-based slowdown in December, resulted in some adjustments to our full-year forecast.
“Despite these adjustments, which were influenced by currency translation and uncertainty from macro-factors like global trade and the political environment, we remain on pace to deliver record sales and EPS in fiscal 2019. In addition to strong top- and bottom-line results, we continue to forecast growth in operating margin as our focused approach to expense management allows us to generate incremental levels of profitability while funding our strategic priorities.
“We see excellent opportunities to expand our core products and technologies into new and emerging markets, with strength in innovative air and fuel products, process filtration and growth in China reflective of our progress. Our incremental investments in technology development and capacity expansion extend these opportunities, further building on our reputation as a leader in the global filtration industry while enhancing our profit margin. I want to thank our employees for their commitment and strong execution of our strategic priorities, and I am confident that we are well-positioned to create long-term value for our customers and shareholders.”
1 All earnings per share figures refer to diluted earnings per share.
2 See the “Accounting Considerations” section for more information about the TCJA and adoption of new accounting standards.
3 Adjusted earnings are a non-GAAP financial measure that exclude the impact of certain items not related to ongoing operations.
The following information was filed by Donaldson Co Inc (DCI) on Wednesday, March 6, 2019 as an 8K 2.02 statement, which is an earnings press release pertaining to results of operations and financial condition. It may be helpful to assess the quality of management by comparing the information in the press release to the information in the accompanying 10-Q Quarterly Report statement of earnings and operation as management may choose to highlight particular information in the press release.