Stock Market Watch

Donaldson – DCI – Record fourth quarter and full-year sales, operating margins, net earnings and EPS

by ·


Donaldson Company, Inc. (NYSE: DCI) announced its financial results for its fiscal 2012 fourth quarter.

“We are very pleased to report record fourth quarter and full-year sales, operating margins, net earnings, and EPS,” said Bill Cook, Chairman, President and CEO. “In the quarter, our sales in local currencies increased 11 percent over the prior year; the change in exchange rates due to the stronger U.S. dollar reduced this to the 5 percent increase we reported above. Industrial Products segment sales increased 20 percent in local currency, led by a 51 percent increase in Gas Turbine Products. Sales in our Engine Products segment increased 6 percent in local currency with growth in both Off-Road and On-Road Products. Our Aftermarket Products local currency sales were up 6 percent globally, with 10 percent growth in the Americas offsetting weaker market conditions in Europe and Asia.”

“Our operating margin was 15.1 percent, which was a new fourth quarter record. We continued to enjoy the benefits of great operating leverage and from our many Continuous Improvement initiatives. We have also remained diligent in managing our operating expenses.”

“We are beginning our new fiscal year with forecasted global GDP growth rates lower than they were a year ago. While we are not immune to the economic conditions in any of our end markets, we expect to deliver a sales increase of 5 to 9 percent in FY13 by executing our detailed Strategic Plans. By focusing on our global growth opportunities and operational excellence, we forecast delivering another EPS record of between $1.82 and $1.96 per share in FY13.”

DCI – FY13 Outlook

We forecast delivering record sales and earnings in FY13 as we manage through uncertain economic conditions while continuing to invest in our business for growth.

  • We project our sales to be between $2.62 and $2.72 billion, or up 5 to 9 percent. Our current forecast is based on the Euro at US$1.24 and 78 Yen to the US$. We expect foreign currency translation to have a negative impact on sales for most of our fiscal year.
  • Our full year operating margin is forecast to be 14.6 to 15.4 percent. Included in this forecast is $6 million for an increase in pension expense and $6 million for our Global Enterprise Resource Planning (ERP) project that is beginning this year.
  • Our full year FY13 tax rate is anticipated to be between 28 and 31 percent.
  • We forecast our full year FY13 EPS to be between $1.82 and $1.96.
  • Cash generated by operating activities is projected to be between $280 and $310 million. Capital spending is estimated to be approximately $125 million.

About Donaldson Company – DCI

Donaldson (DCI) 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. DCI approximately 13,600 employees contribute to the DCI ‘s success by supporting their customers at our more than 100 sales, manufacturing, and distribution locations around the world.

 

More Posts by this author

edliston
Post Written By: Ed Liston
Ed Liston is a senior contributing editor at TheStockMarketWatch.com. An active market watcher and investor, Ed guides an independent team of experienced analysts and writes for multiple stock trader publications. He is widely quoted in various financial publications on the Internet. When Ed is not writing about stocks, investing in stocks, talking about stocks, or otherwise doing something stock related, he likes to go sailing and fishing in his yacht.

Tags:

Ed Liston

Ed Liston is a senior contributing editor at TheStockMarketWatch.com. An active market watcher and investor, Ed guides an independent team of experienced analysts and writes for multiple stock trader publications. He is widely quoted in various financial publications on the Internet. When Ed is not writing about stocks, investing in stocks, talking about stocks, or otherwise doing something stock related, he likes to go sailing and fishing.

You may also like...