This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

Donaldson Reports Record Fourth Quarter And Full-Year Results

Donaldson is a member of the S&P MidCap 400 and Russell 1000 indices, and our shares trade on the NYSE under the symbol DCI. Additional information is available at www.donaldson.com.

SAFE HARBOR STATEMENT UNDER THE SECURITIES REFORM ACT OF 1995

The Company desires to take advantage of the “safe harbor” provisions of the Private Securities Litigation Reform Act of 1995 (the “Act”) and is making this cautionary statement in connection with such safe harbor legislation. This announcement contains forward-looking statements, including forecasts, plans, and projections relating to our business and financial performance and global economic conditions, which involve uncertainties that could materially impact results.

The Company wishes to caution investors that any forward-looking statements are subject to uncertainties and other risk factors that could cause actual results to differ materially from such statements, including but not limited to risks associated with: world economic factors and the ongoing economic uncertainty, reduced demand for hard disk drive products with the increased use of flash memory, the potential for some Customers to increase their reliance on their own filtration capabilities, currency fluctuations, commodity prices, political factors, the Company’s international operations, highly competitive markets, governmental laws and regulations, including the impact of various economic stimulus and financial reform measures, the implementation of our new information technology systems, potential global events resulting in market instability including financial bailouts and defaults of sovereign nations, military and terrorist activities, health outbreaks, natural disasters, and other factors included in our Annual and Quarterly Reports. We undertake no obligation to publicly update or revise any forward-looking statements.

CONDENSED STATEMENTS OF CONSOLIDATED EARNINGS
DONALDSON COMPANY, INC. AND SUBSIDIARIES
(Thousands of dollars, except share and per share amounts)
(Unaudited)
       

 

Three Months Ended

Twelve Months Ended

July 31 July 31
  2012    

2011

    2012     2011  
Net sales $ 656,833 $ 625,450 $ 2,493,248 $ 2,294,029
 
Cost of sales   427,050     398,445     1,619,485     1,480,233  
 
Gross margin 229,783 227,005 873,763 813,796
 
Operating expenses   130,299     136,998     510,747     498,513  
 
Operating income 99,484 90,007 363,016 315,283
 
Other income, net (5,503 ) (3,515 ) (19,253 ) (9,505 )
 
Interest expense   2,633     3,039     11,489     12,525  
 
Earnings before income taxes 102,354 90,483 370,780 312,263
 
Income taxes   31,373     24,716     106,479     86,972  
 
Net earnings $ 70,981   $ 65,767   $ 264,301   $ 225,291  
 

Weighted average shares Outstanding (*)

149,989,485 153,548,598 150,286,403 154,392,740
 
Diluted shares outstanding (*) 152,506,028 156,252,334 152,940,605 157,196,918
 
Net earnings per share (*) $ 0.47 $ 0.43 $ 1.76 $ 1.46
 

Net earnings per share assuming dilution (*)

$ 0.47 $ 0.42 $ 1.73 $ 1.43
 
Dividends paid per share (*)   $ 0.090     $ 0.075     $ 0.320     $ 0.268  
 

(*) Prior year shares and per share amounts reflect the impact of the Company’s two-for-one stock split that occurred during the third quarter of Fiscal 2012.

DONALDSON COMPANY, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED BALANCE SHEETS

(Thousands of dollars)

(Unaudited)

   
July 31 July 31
2012 2011
ASSETS
 
Cash, cash equivalents and short-term investments $ 318,151 $ 273,494
Accounts receivable – net 438,796 445,700
Inventories – net 256,116 271,476
Prepaids and other current assets   72,599   75,912
 
Total current assets 1,085,662 1,066,582
 
Other assets and deferred taxes 259,511 268,009
Property, plant and equipment – net   384,909   391,502
 
Total assets $ 1,730,082 $ 1,726,093
 
LIABILITIES AND SHAREHOLDERS’ EQUITY
 
Trade accounts payable $ 199,182 $ 215,918
Employee compensation and other liabilities 201,848 219,326
Short-term borrowings 95,147 13,129
Current maturity long-term debt   2,346   47,871
 
Total current liabilities 498,523 496,244
 
Long-term debt 203,483 205,748
Other long-term liabilities   118,062   89,390
 
Total liabilities 820,068 791,382
 
Equity   910,014   934,711
 
Total liabilities and equity $ 1,730,082 $ 1,726,093
 

DONALDSON COMPANY, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(Thousands of dollars)

(Unaudited)

 
Twelve Months Ended
July 31
2012

 

2011
OPERATING ACTIVITIES
 
Net earnings $ 264,301 $ 225,291

Adjustments to reconcile net earnings to net cash provided by operating activities:

Depreciation and amortization 61,165 60,491
Changes in operating assets and liabilities (45,609 ) (26,469 )
Tax benefit of equity plans (10,316 ) (9,873 )
Stock compensation plan expense 10,553 9,234
Other, net   (20,382 )   (12,619 )
Net cash provided by operating activities 259,712 246,055
 
INVESTING ACTIVITIES
 
Net expenditures on property and equipment (77,170 ) (59,851 )
Purchases of short-term investments (99,298 ) -
Acquisitions and divestitures, net   -     3,493  
Net cash used in investing activities (176,468 ) (56,358 )
 
FINANCING ACTIVITIES
 
Purchase of treasury stock (130,233 ) (108,929 )
Net change in debt and short-term borrowings 50,510 (43,182 )
Dividends paid (47,684 ) (41,013 )
Tax benefit of equity plans 10,316 9,873
Exercise of stock options   13,691     15,899  
Net cash used in financing activities (103,400 ) (167,352 )
 

Effect of exchange rate changes on cash

 

(27,549

)

 

19,149

 
 

Increase/(Decrease) in cash and cash equivalents

(47,705

)

41,494

 

Cash and cash equivalents – beginning of year

 

273,494

   

232,000

 
 

Cash and cash equivalents – end of period

$

225,789

 

$

273,494

 
 
SEGMENT DETAIL
(Thousands of dollars)
(Unaudited)
       

EngineProducts

IndustrialProducts

Corporate &Unallocated

TotalCompany

3 Months Ended July 31, 2012:
Net sales $ 398,540 $ 258,293 --- $ 656,833
Earnings before income taxes 57,509 45,561 (716 ) 102,354
 
3 Months Ended July 31, 2011:
Net sales $ 397,995 $ 227,455 --- $ 625,450
Earnings before income taxes 62,132 31,635 (3,284 ) 90,483
 
 
12 Months Ended July 31, 2012:
Net sales $ 1,570,140 $ 923,108 --- $ 2,493,248
Earnings before income taxes 227,941 149,249 (6,410 ) 370,780
 
12 Months Ended July 31, 2011:
Net sales $ 1,440,495 $ 853,534 --- $ 2,294,029
Earnings before income taxes 211,255 123,871 (22,863 ) 312,263
 
 
NET SALES BY PRODUCT
(Thousands of dollars)
(Unaudited)
 
Three Months Ended Twelve Months Ended
July 31 July 31
2012 2011 2012 2011
Engine Products segment:
Off-Road Products $ 95,420 $ 90,885 $ 376,870 $ 327,557
On-Road Products 39,800 38,381 163,934 127,107
Aftermarket Products 235,041 236,351 907,306 861,393
Retrofit Emissions Products 2,028 5,267 15,354 19,555
Aerospace and Defense Products   26,251   27,111   106,676     104,883
Total Engine Products segment $ 398,540 $ 397,995 $ 1,570,140   $ 1,440,495
 
Industrial Products segment:
Industrial Filtration Solutions Products $ 151,931 $ 138,637 $ 553,453 $ 507,646
Gas Turbine Products 57,041 40,119 180,669 154,726
Special Applications Products   49,321   48,699   188,986     191,162
Total Industrial Products segment $ 258,293 $ 227,455 $ 923,108   $ 853,534
 
Total Company $ 656,833 $ 625,450 $ 2,493,248   $ 2,294,029
 

RECONCILIATION OF NON-GAAP FINANCIAL MEASURES

(Thousands of dollars, except per share amounts)
(Unaudited)
   
Three Months Ended Twelve Months Ended
July 31 July 31
2012   2011 2012   2011
 
Net cash provided by operating activities $ 77,311 $ 77,512 $ 259,712 $ 246,055
Net capital expenditures   (19,183 )   (17,451 )   (77,170 )   (59,851 )
Free cash flow $ 58,128   $ 60,061   $ 182,542   $ 186,204  
 
Net earnings $ 70,981 $ 65,767 $ 264,301 $ 225,291
Income taxes 31,373 24,716 106,479 86,972
Interest expense (net) 1,312 1,711 7,025 9,241
Depreciation and amortization   14,951     15,215     61,165     60,491  
EBITDA $ 118,617   $ 107,409   $ 438,970   $ 381,995  
 
Net sales $ 656,833 $ 625,450 $ 2,493,248 $ 2,294,029
Foreign currency translation   36,281     (40,340 )   38,712     (49,831 )

Net sales, excluding foreign currency translation

$ 693,114   $ 585,110   $ 2,531,960   $ 2,244,198  
 
Net earnings $ 70,981 $ 65,767 $ 264,301 $ 225,291
Foreign currency translation   3,852     (3,954 )   4,006     (6,055 )

Net earnings, excluding foreign currency translation

$ 74,833   $ 61,813   $ 268,307   $ 219,236  
 
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES (CONTINUED)
(Thousands of dollars, except per share amounts)
(Unaudited)
   
Three Months Ended Twelve Months Ended
July 31 July 31
2012   2011 2012   2011
Net earnings $ 70,981 $ 65,767 $ 264,301 $ 225,291

Restructuring charges, net of tax

-

-

-

  566
 

Net earnings, excluding special items

$ 70,981 $ 65,767 $ 264,301 $ 225,857
 

Net earnings per share assuming dilution (*)

$ 0.47 $ 0.42 $ 1.73 $ 1.43

Restructuring charges per share, net of tax (*)

-

-

-

-

 

Net earnings per share assuming dilution, excluding special items (*)

$ 0.47 $ 0.42 $ 1.73 $ 1.43

(*) Prior year per share amounts reflect the impact of the Company’s two-for-one stock split that occurred during the third quarter of Fiscal 2012.

4 of 5

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
DOW 17,039.49 +60.36 0.36%
S&P 500 1,992.37 +5.86 0.30%
NASDAQ 4,532.1040 +5.6220 0.12%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs