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Donaldson Company's CEO Discusses F3Q12 Results - Earnings Call Transcript

Next, I need to review our Safe Harbor statement with you. Any statements in this call regarding our business that are not historical facts are forward-looking statements, and our future results could differ materially from the forward-looking statements made today. Our actual results may be affected by many important factors, including risks and uncertainties identified in our press release and in our SEC filings.

Now I’d like to turn the call over to Bill Cook. Bill?

William Cook

Thanks, Rich, and good morning everyone. As you’ve seen in the press release we issued earlier this morning, we had a very good third quarter as we set records for our sales, our operating margin, and our earnings per share. I’d like to take a few minutes to review our results.

Our third quarter sales were 647 million, up 9% over last year. Excluding the negative impact of foreign currency translation due to the strengthening of the U.S. dollar, we actually achieved organic sales growth of 11%. The combination of our 11% organic sales growth and a 15.2% operating margin helped to deliver a net income increase of 15% and earnings per share increase of 18% to an EPS record of $0.46 per share.

As you know, within our company we have two reporting segments, and I’d like to cover a few highlights for each. I’ll start first with our engine products segment. Excluding the impact of foreign exchange, our local currency sales increased 10%. The primary drivers of this 10% year-over-year increase were our first fit OEM businesses, on-road and off-road, which were up 37 and 13% respectively. The 37% increase in our on-road product sales was primarily due to a significant rebound in North American new heavy truck build rates at our customers. For example, Class A heavy truck builds in North America were 77,000 in our third quarter, a 44% increase over last year. We also saw strong year-over-year growth in Japan as a result of that country’s recovery from last year’s earthquake and tsunami.

Stock quotes in this article: DCI 

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