Donaldson Reports Record Second Quarter Earnings

Donaldson Company, Inc. (NYSE: DCI) announced its financial results for its fiscal 2014 second quarter. Summarized financial results are as follows (dollars in millions, except per share data):
  Three Months Ended   Six Months Ended
January 31 January 31






Net sales $582 $596 (2)% $1,181 $1,185 ---%
Operating income 72 71 1% 164 145 13%
Net earnings 58 51 15% 120 105 14%
Diluted EPS $0.39 $0.34 15% $0.80 $0.70 14%

“We delivered record net earnings in our second quarter,” said Bill Cook, Donaldson’s CEO. “We see stabilization within many of our OEM first-fit equipment end markets and increasing demand for our replacement filters. Our Engine Products’ sales increased 7 percent in local currency from last year, driven by an 11 percent increase in Engine Aftermarket sales and a 10 percent increase in OEM sales outside of the U.S. Our Industrial Products’ sales decreased 12 percent in local currency as a result of a 50 percent decrease in our Gas Turbine sales from last year’s record second quarter of $66 million. As we have discussed previously, we had a surge in our gas turbine shipments last year, and the overall industry is now installing that new electrical generation capacity. We do see our Gas Turbine sales improving during the balance of our FY14 and into FY15. Partially offsetting Gas Turbine sales in the quarter was our Special Applications business, which grew 7 percent. Geographically, excluding our Gas Turbine sales, our local currency sales were strong with South Africa up 5 percent, Asia Pacific up 8 percent, Europe up 9 percent, and Latin America up 17 percent.”

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