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.

« First ‹ Previous 1 2 3 4 5 Next › Last »