This Day On The Street
Continue to site
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

Donaldson Updates Fiscal 2013 Outlook

Donaldson Company, Inc. (NYSE:DCI) announced today that it has updated its outlook for FY13.

FY13 Outlook

We are changing our sales and earnings outlook as conditions in many of our end markets have recently weakened. Many of our Engine OEM and Disk Drive Customers have lowered their production levels. In addition, some large Gas Turbine project shipments have moved from our first quarter into our second and third quarters. As a result, we now forecast our first quarter FY13 sales to decline between 2 and 6 percent from the prior year’s first quarter and EPS to be between $0.30 and $0.36 per share. We anticipate returning to growth beginning in our second quarter as conditions are forecasted to begin slowly improving in many end markets, and we anticipate a strong quarter for our Gas Turbine project shipments.
  • We now project our full year sales to be between $2.52 and $2.62 billion, or up 1 to 5 percent over last year’s record. Our current forecast is based on the Euro at US$1.29 and 78 Yen to the US$. We expect foreign currency translation to have a negative impact on our sales for most of our fiscal year.
  • Our updated full year operating margin forecast is now 14.2 to 15.0 percent. We plan to maintain strong margin performance through cost containment actions, which are currently being implemented.
  • We now forecast our full year FY13 EPS to be between $1.68 and $1.88.

Engine Products : We now forecast FY13 sales to be equal to FY12, including the negative impact of foreign currency.
  • Our on-road OEM Customers are now planning to build fewer heavy- and medium-duty trucks in most regions. Demand from our off-road OEM Customers is anticipated to be mixed: build rates of new agriculture equipment is forecasted to remain good, construction activity is slowly improving in North America but remains weak in Europe and China, and mining activity is now slowing down globally.
  • We are anticipating lower growth of our Aftermarket Products as current utilization rates for off-road equipment and on-road heavy trucks have softened recently in many regions. However, we should mitigate much of this through our continued expansion into emerging economies, from the increasing number of systems installed in the field with our proprietary filtration systems, and from our increasing sales of liquid filtration products.
  • We forecast our Aerospace and Defense Products’ sales to be equal to the prior year as the continued slowdown in military spending is anticipated to be offset by increased commercial aerospace sales.

Industrial Products : We forecast sales to increase 5 to 11 percent over FY12, including the negative impact of foreign currency.
  • Our Industrial Filtration Solutions Products’ sales are projected to increase 0 to 6 percent. We assume manufacturing activity will remain strong in the Americas, slowly improve in Asia, and weaken in Europe.
  • We now anticipate our Gas Turbine Products’ sales to be up 23 to 29 percent due to the continuing strength in the large turbine power generation and in the oil and gas markets.
  • Special Applications Products’ sales are forecast to increase 3 to 9 percent, with lower growth expected from disk drive filtration and membranes products.

The Company will conduct a call with analysts to discuss the revised outlook at 10:00 a.m. CT on Wednesday, October 24 th. The Company plans to release its FY13 first quarter results pre-market on Wednesday, November 21 st and conduct its earnings call at 10:00 a.m. CT that morning. Dial-in information will be emailed separately to institutional investors for both calls. To listen to a webcast of either of these calls, please visit the Investors page at

About Donaldson Company, Inc.

Donaldson is a leading worldwide provider of filtration systems that improve people’s lives, enhance our Customers’ equipment performance, and protect our environment. We are a technology-driven Company committed to satisfying our Customers’ needs for filtration solutions through innovative research and development, application expertise, and global presence. Our approximately 13,200 employees contribute to the Company’s success by supporting our Customers at our more than 100 sales, manufacturing, and distribution locations around the world.

1 of 2

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

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
Stocks Under $10

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

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

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
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free


Chart of I:DJI
DOW 17,798.49 -14.90 -0.08%
S&P 500 2,090.11 +1.24 0.06%
NASDAQ 5,127.5250 +11.3820 0.22%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs