Donaldson Company Reports Third Quarter 2019 Earnings
Third quarter 2019 sales increased 1.8 percent from 2018, or 5.9 percent in constant currency
Third quarter 2019 GAAP EPS increased 9.4% to $0.58 from $0.53 in 2018
Full-year 2019 sales forecast up 3.5 to 4.5 percent; EPS forecast up 10 to 12 percent1
MINNEAPOLIS (June 4, 2019) - Donaldson Company, Inc. (NYSE: DCI) today reported third quarter net earnings of $75.2 million, an increase of 7.6 percent from $69.9 million in 2018. Third quarter 2019 GAAP earnings per share (EPS) increased 9.4 percent to $0.58 from $0.53 last year.
“We remain on pace to deliver record levels of sales and profit in 2019, with third quarter performance reflecting strong growth in our strategically important ‘Advance and Accelerate’2 businesses and modest year-over-year gross margin improvement in both segments,” said Tod Carpenter, chairman, president and chief executive officer. “While we built momentum in gross margin, a notable decline in customer backlogs and orders toward the end of the quarter resulted in lower-than-expected sales against our already modest forecast.
“Volatility continued into this quarter as uneven demand and apparent destocking suggest that our customers are taking an increasingly cautious stance in light of market uncertainties. Given these dynamics, we revised our fourth quarter sales and profit projections for Off-Road, Aftermarket and Industrial Filtration Solutions to reflect the current operating environment.
“In all market conditions, we focus on operational excellence and strong execution of our strategic priorities. To deliver our sales targets and meaningful operating margin growth through fiscal 2021, we are balancing cost-optimization with further investments in strategically important businesses, like process filtration and our innovative air and fuel products. We also remain committed to returning cash to shareholders, illustrated by the recently announced 10.5 percent increase to our quarterly dividend and a new share repurchase authorization. With our focused approach to planning and disciplined capital deployment, we believe we are well-positioned to deliver long-term profitable growth.”
1 All earnings per share figures refer to diluted earnings per share. Year-over-year increase compares fiscal 2019 GAAP EPS forecast with fiscal 2018 adjusted EPS of $2.00. Adjusted earnings are a non-GAAP financial measure that exclude the impact of certain items not related to ongoing operations.
2 Includes Industrial Air Filtration replacement parts, Engine Aftermarket, Venting Solutions, Process Filtration, Semiconductor and Industrial Hydraulics.
The following information was filed by Donaldson Co Inc (DCI) on Tuesday, June 4, 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.