Donaldson Company, Inc. (NYSE: DCI) announced its financial results for
its fiscal 2014 fourth quarter. Summarized financial results are as
follows (dollars in millions, except per share data):
|
|
|
|
|
|
|
|
|
| Three Months Ended |
|
| Twelve Months Ended |
|
|
| July 31 |
|
| July 31 |
|
|
| 2014 |
|
| 2013 |
|
| Change |
|
| 2014 |
|
| 2013 |
|
| Change |
Net sales
|
|
|
$668
|
|
|
$633
|
|
|
6%
|
|
|
$2,473
|
|
|
$2,437
|
|
|
2%
|
Operating income
|
|
|
99
|
|
|
100
|
|
|
(1)%
|
|
|
356
|
|
|
343
|
|
|
4%
|
Net earnings
|
|
|
73
|
|
|
73
|
|
|
---%
|
|
|
260
|
|
|
247
|
|
|
5%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted EPS
|
|
|
$0.50
|
|
|
$0.48
|
|
|
4%
|
|
|
$1.76
|
|
|
$1.64
|
|
|
7%
|
|
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|
|
|
|
|
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"We are very pleased to report a strong finish to our FY14, with record
sales, net earnings, and EPS in our fourth quarter, and also record EPS
for the full year," said Bill Cook, Donaldson's CEO. "Our replacement
filter sales were strong again this quarter, with double-digit percent
growth in both our Engine and Industrial segments. Our Engine Products'
sales increased 6 percent in local currency from last year, driven by
increases in Engine Aftermarket and On-Road sales of 16 and 8 percent,
respectively. Our Industrial Products' sales increased 3 percent in
local currency, with increases in Special Applications and in Industrial
Filtration Solutions of 11 and 4 percent, respectively, offsetting a 9
percent decline in our Gas Turbine shipments. Internationally, our local
currency sales were strong, with Asia Pacific up 7 percent, Europe up 8
percent, and Latin America up 20 percent."
"Looking forward to FY15, we are forecasting 4 to 8 percent sales
growth. We expect sales of our replacement filters to remain strong and
a continuing improvement in our OEM first-fit end markets for
construction equipment, on-road trucks, and gas turbine systems. We will
maintain our focus on our Continuous Improvement initiatives to
help deliver a higher operating margin in FY15, while also continuing
our strategic investments in our Global ERP Project and our targeted
revenue growth initiatives. The combination of our top-line growth
forecast and our continued emphasis on operational excellence results in
our FY15 EPS forecast of between $1.81 and $2.01 per share."
Financial Statement Discussion
The impact of foreign currency translation increased sales by $4.8
million, or 0.8 percent, during the quarter and decreased sales by $11.4
million, or 0.5 percent, for the year. The foreign currency translation
impact increased net earnings by $0.4 million, or 0.5 percent, during
the quarter and decreased net earnings by $1.0 million, or 0.4 percent,
for the year.
Gross margin was 35.7 percent for the quarter versus 36.1 percent in the
prior year quarter due to higher compensation expenses and an increase
in our purchased material costs. These offset the positive impact from a
higher percentage of replacement filter sales and the benefits from our Continuous
Improvement initiatives. For the full year, our gross margin
increased to 35.5 percent versus 34.8 percent last year.
Operating expenses for the quarter were $139.2 million, up 8.4 percent
from the prior year. The increase was driven primarily by our Global ERP
Project and incentive compensation. Operating expenses for the year were
$522.1 million, up 3.6 percent from the prior year total of $503.8
million.
Our operating margin for the quarter was 14.8 percent, down 100 basis
points from the prior year. For the year, our operating margin was 14.4
percent, up 30 basis points from last year.
Our effective tax rate for the quarter was 27.7 percent, compared to the
prior year rate of 28.2 percent. Compared to the prior year this
decrease was primarily due to changes in the mix of earnings between tax
jurisdictions. For the year, the effective tax rate was 27.9 percent,
compared to the prior year rate of 29.0 percent.
As part of our ongoing share repurchase program, we repurchased
2,757,000 shares for $114 million during the quarter. For the year, we
repurchased 6,796,000 shares, or 4.6 percent of our diluted outstanding
shares, for $279 million.
FY15 Outlook
This outlook excludes the impact from our pending acquisition of
Northern Technical L.L.C., which is expected to close in September.
-
We project our Company's sales to be between $2.57 and $2.67 billion,
or an increase of 4 to 8 percent.
-
Our full-year operating margin forecast is 14.1 to 14.9 percent.
Included in this forecast is approximately $10 million in incremental
operating expenses for our Global ERP Project and our targeted sales
growth initiatives.
-
Our FY15 tax rate is anticipated to be between 27 and 30 percent.
-
We forecast our full-year FY15 EPS to be between $1.81 and $2.01.
-
Cash generated by operating activities is projected to be between $260
and $300 million. Our capital spending is estimated to be between $90
and $100 million. We plan to repurchase between 2 to 4 percent of our
diluted outstanding shares in FY15.
Engine Products: We forecast
our FY15 sales to increase 3 to 7 percent, including the impact of
foreign currency.
-
Our On-Road OEM Customers are expecting to increase production of
heavy- and medium-duty trucks in 2015.
-
Demand from our global Off-Road OEM Customers is anticipated to be
mixed: build rates of construction equipment are expected to improve
with North America forecasted to be the strongest region, build rates
of agriculture equipment are forecasted to decrease in all regions,
and build rates of mining equipment are expected to remain stable at
their current low levels.
-
We are anticipating strong growth globally for our Engine Aftermarket
business. Utilization rates for off-road equipment and on-road heavy
truck fleets are expected to continue improving. We should also
benefit from our continued expansion into emerging economies, the
increasing number of first-fit systems installed in the field with our
proprietary first-fit filter systems, and through continued expansion
of our product portfolio.
-
We forecast a mid-single digit percent sales increase for our
Aerospace and Defense business as the continued slowdown in U.S.
military activity should be offset by growth from our commercial
aerospace sales.
Industrial Products: We
forecast sales to increase 5 to 9 percent, including the impact of
foreign currency. However, our Industrial Products' forecast excludes
the impact from our pending acquisition of Northern Technical L.L.C.,
which is expected to close in September.
-
Our Industrial Filtration Solutions' sales are projected to increase 1
to 7 percent. We assume our replacement filter sales will remain
strong due to improving general manufacturing conditions, while our
new filtration system sales are forecasted to grow due to improvements
in manufacturing capital spending and from our new product
introductions.
-
We anticipate our Gas Turbine sales will increase 20 to 26 percent due
to a forecasted improvement in the large turbine power generation
market.
-
We forecast our Special Applications' sales to increase 1 to 5 percent
due to improved demand for our membrane, semiconductor, and venting
products.
About Donaldson Company
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 12,600 employees contribute to the
Company's success by supporting our Customers at our more than 140
sales, manufacturing, and distribution locations around the world.
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, without limitation, forecasts, plans, trends, and projections
relating to our business and financial performance and global economic
conditions, which involve uncertainties that could materially impact
results. All statements other than statements of historical fact are
forward-looking statements. These statements do not guarantee future
performance.
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, the 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 the various economic stimulus and financial reform measures,
the implementation of our new information technology systems,
information security and data breaches, potential global events
resulting in market instability including financial bailouts and
defaults of sovereign nations, military and terrorist activities,
including political unrest in the Middle East and Ukraine, health
outbreaks, natural disasters, and all of the other risk factors included
in our Annual Report on Form 10-K and Quarterly Reports on Form 10-Q. 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
|
|
|
|
2014
|
|
|
2013
|
|
|
2014
|
|
|
2013
|
Net sales
|
|
|
$668,226
|
|
|
$632,594
|
|
|
$2,473,466
|
|
|
$2,436,948
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of sales
|
|
|
429,903
|
|
|
404,238
|
|
|
1,595,640
|
|
|
1,589,821
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross profit
|
|
|
238,323
|
|
|
228,356
|
|
|
877,826
|
|
|
847,127
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating expenses
|
|
|
139,173
|
|
|
128,343
|
|
|
522,087
|
|
|
503,798
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating income
|
|
|
99,150
|
|
|
100,013
|
|
|
355,739
|
|
|
343,329
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other income, net
|
|
|
(4,915)
|
|
|
(3,800)
|
|
|
(15,164)
|
|
|
(15,762)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest expense
|
|
|
3,213
|
|
|
2,635
|
|
|
10,200
|
|
|
10,910
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings before income taxes
|
|
|
100,852
|
|
|
101,178
|
|
|
360,703
|
|
|
348,181
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income taxes
|
|
|
27,896
|
|
|
28,569
|
|
|
100,479
|
|
|
100,804
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net earnings
|
|
|
$72,956
|
|
|
$72,609
|
|
|
$260,224
|
|
|
$247,377
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average shares outstanding
|
|
|
142,742,659
|
|
|
147,880,382
|
|
|
145,594,300
|
|
|
148,273,904
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted shares outstanding
|
|
|
144,728,637
|
|
|
149,940,905
|
|
|
147,641,113
|
|
|
150,455,193
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net earnings per share
|
|
|
$0.51
|
|
|
$0.49
|
|
|
$1.79
|
|
|
$1.67
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net earnings per share assuming dilution
|
|
|
$0.50
|
|
|
$0.48
|
|
|
$1.76
|
|
|
$1.64
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Dividends paid per share
|
|
|
$0.165
|
|
|
$0.13
|
|
|
$0.575
|
|
|
$0.41
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
DONALDSON COMPANY, INC. AND SUBSIDIARIES
|
CONDENSED CONSOLIDATED BALANCE SHEETS
|
(Thousands of dollars)
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
July 31
|
|
|
July 31
|
|
|
|
2014
|
|
|
2013
|
ASSETS
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash and cash equivalents
|
|
|
$296,418
|
|
$224,138
|
Short-term investments
|
|
|
127,201
|
|
99,750
|
Accounts receivable, net
|
|
|
474,157
|
|
430,766
|
Inventories, net
|
|
|
253,351
|
|
234,820
|
Prepaids and other current assets
|
|
|
74,150
|
|
66,188
|
|
|
|
|
|
|
Total current assets
|
|
|
1,225,277
|
|
1,055,662
|
|
|
|
|
|
|
Other assets and deferred taxes
|
|
|
265,469
|
|
268,614
|
Property, plant, and equipment, net
|
|
|
451,665
|
|
419,280
|
|
|
|
|
|
|
Total assets
|
|
|
$1,942,411
|
|
|
$1,743,556
|
|
|
|
|
|
|
|
LIABILITIES AND SHAREHOLDERS' EQUITY
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Trade accounts payable
|
|
|
$216,603
|
|
|
$186,460
|
Employee compensation and other liabilities
|
|
|
205,936
|
|
182,121
|
Short-term borrowings
|
|
|
185,303
|
|
9,190
|
Current maturity long-term debt
|
|
|
1,738
|
|
98,664
|
|
|
|
|
|
|
Total current liabilities
|
|
|
609,580
|
|
476,435
|
|
|
|
|
|
|
Long-term debt
|
|
|
243,726
|
|
102,774
|
Other long-term liabilities
|
|
|
86,622
|
|
79,160
|
|
|
|
|
|
|
Total liabilities
|
|
|
939,928
|
|
658,369
|
|
|
|
|
|
|
|
Equity
|
|
|
1,002,483
|
|
|
1,085,187
|
|
|
|
|
|
|
|
Total liabilities and equity
|
|
|
$1,942,411
|
|
|
$1,743,556
|
|
|
|
|
|
|
|
|
DONALDSON COMPANY, INC. AND SUBSIDIARIES
|
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
|
(Thousands of dollars)
|
(Unaudited)
|
|
|
|
|
|
|
|
Twelve Months Ended
|
|
|
|
July 31
|
|
|
|
2014
|
|
|
2013
|
OPERATING ACTIVITIES
|
|
|
|
|
|
|
|
|
|
|
|
Net earnings
|
|
|
$260,224
|
|
$247,377
|
Adjustments to reconcile net earnings to net cash provided by
operating activities:
|
|
|
|
|
|
Depreciation and amortization
|
|
|
67,163
|
|
64,290
|
Changes in operating assets and liabilities
|
|
|
(12,207)
|
|
2,490
|
Tax benefit of equity plans
|
|
|
(8,781)
|
|
(11,191)
|
Stock compensation plan expense
|
|
|
11,640
|
|
9,148
|
Loss on sale of business
|
|
|
905
|
|
-
|
Other, net
|
|
|
(1,105)
|
|
3,809
|
Net cash provided by operating activities
|
|
|
317,839
|
|
315,923
|
|
|
|
|
|
|
|
INVESTING ACTIVITIES
|
|
|
|
|
|
|
|
|
|
|
|
|
Net expenditures on property and equipment
|
|
|
(96,815)
|
|
(94,337)
|
Net change in short-term investments
|
|
|
(27,307)
|
|
(1,974)
|
Net cash used in investing activities
|
|
|
(124,122)
|
|
(96,311)
|
|
|
|
|
|
|
|
FINANCING ACTIVITIES
|
|
|
|
|
|
|
|
|
|
|
|
|
Purchase of treasury stock
|
|
|
(279,395)
|
|
(102,572)
|
Net change in debt and short-term borrowings
|
|
|
218,446
|
|
(88,310)
|
Dividends paid
|
|
|
(83,070)
|
|
(60,320)
|
Tax benefit of equity plans
|
|
|
8,781
|
|
11,191
|
Exercise of stock options
|
|
|
14,437
|
|
|
16,043
|
Net cash used in financing activities
|
|
|
(120,801)
|
|
|
(223,968)
|
|
|
|
|
|
|
|
Effect of exchange rate changes on cash
|
|
|
(636)
|
|
|
2,705
|
|
|
|
|
|
|
|
Increase or (decrease) in cash and cash equivalents
|
|
|
72,280
|
|
|
(1,651)
|
|
|
|
|
|
|
|
Cash and cash equivalents – beginning of year
|
|
|
224,138
|
|
|
225,789
|
|
|
|
|
|
|
|
Cash and cash equivalents – end of period
|
|
|
$296,418
|
|
|
$224,138
|
|
|
|
|
|
|
|
|
SEGMENT DETAIL
|
(Thousands of dollars)
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Engine
|
|
|
Industrial
|
|
|
Corporate &
|
|
|
Total
|
|
|
|
Products
|
|
|
Products
|
|
|
Unallocated
|
|
|
Company
|
3 Months Ended July 31, 2014:
|
|
|
|
|
|
|
|
|
|
|
|
|
Net sales
|
|
|
$423,079
|
|
|
$245,147
|
|
|
---
|
|
|
$668,226
|
Earnings before income taxes
|
|
|
63,121
|
|
|
42,296
|
|
|
(4,565)
|
|
|
100,852
|
|
|
|
|
|
|
|
|
|
|
|
|
|
3 Months Ended July 31, 2013:
|
|
|
|
|
|
|
|
|
|
|
|
|
Net sales
|
|
|
$396,374
|
|
|
$236,220
|
|
|
---
|
|
|
$632,594
|
Earnings before income taxes
|
|
|
68,763
|
|
|
36,399
|
|
|
(3,984)
|
|
|
101,178
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
12 Months Ended July 31, 2014:
|
|
|
|
|
|
|
|
|
|
|
|
|
Net sales
|
|
|
$1,584,027
|
|
|
$889,439
|
|
|
---
|
|
|
$2,473,466
|
Earnings before income taxes
|
|
|
233,920
|
|
|
133,978
|
|
|
(7,195)
|
|
|
360,703
|
|
|
|
|
|
|
|
|
|
|
|
|
|
12 Months Ended July 31, 2013:
|
|
|
|
|
|
|
|
|
|
|
|
|
Net sales
|
|
|
$1,504,188
|
|
|
$932,760
|
|
|
---
|
|
|
$2,436,948
|
Earnings before income taxes
|
|
|
220,892
|
|
|
139,108
|
|
|
(11,819)
|
|
|
348,181
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NET SALES BY PRODUCT
|
(Thousands of dollars)
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
|
|
|
Twelve Months Ended
|
|
|
|
July 31
|
|
|
July 31
|
|
|
|
2014
|
|
|
2013
|
|
|
2014
|
|
|
2013
|
Engine Products segment:
|
|
|
|
|
|
|
|
|
|
|
|
|
Off-Road Products
|
|
|
$81,903
|
|
|
$90,778
|
|
|
$342,205
|
|
|
$358,834
|
On-Road Products
|
|
|
34,631
|
|
|
32,239
|
|
|
130,029
|
|
|
128,446
|
Aftermarket Products
|
|
|
283,113
|
|
|
244,453
|
|
|
1,012,165
|
|
|
912,717
|
Aerospace and Defense Products
|
|
|
23,432
|
|
|
28,904
|
|
|
99,628
|
|
|
104,191
|
Total Engine Products segment
|
|
|
$423,079
|
|
|
$396,374
|
|
|
$1,584,027
|
|
|
$1,504,188
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Industrial Products segment:
|
|
|
|
|
|
|
|
|
|
|
|
|
Industrial Filtration Solutions Products
|
|
|
$151,714
|
|
|
$143,276
|
|
|
$553,356
|
|
|
$529,751
|
Gas Turbine Products
|
|
|
46,754
|
|
|
50,627
|
|
|
156,860
|
|
|
232,922
|
Special Applications Products
|
|
|
46,679
|
|
|
42,317
|
|
|
179,223
|
|
|
170,087
|
Total Industrial Products segment
|
|
|
$245,147
|
|
|
$236,220
|
|
|
$889,439
|
|
|
$932,760
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Company
|
|
|
$668,226
|
|
|
$632,594
|
|
|
$2,473,466
|
|
|
$2,436,948
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES
|
(Thousands of dollars, except per share amounts)
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
|
|
|
Twelve Months Ended
|
|
|
|
July 31
|
|
|
July 31
|
|
|
|
2014
|
|
|
2013
|
|
|
2014
|
|
|
2013
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net cash provided by operating activities
|
|
|
$87,733
|
|
|
$98,534
|
|
|
$317,839
|
|
|
$315,923
|
Net capital expenditures
|
|
|
(30,769)
|
|
|
(24,912)
|
|
|
(96,815)
|
|
|
(94,337)
|
Free cash flow
|
|
|
$56,964
|
|
|
$73,622
|
|
|
$221,024
|
|
|
$221,586
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net earnings
|
|
|
$72,956
|
|
|
$72,609
|
|
|
$260,224
|
|
|
$247,377
|
Income taxes
|
|
|
27,896
|
|
|
28,569
|
|
|
100,479
|
|
|
100,804
|
Interest expense, net
|
|
|
2,552
|
|
|
1,987
|
|
|
7,889
|
|
|
8,097
|
Depreciation and amortization
|
|
|
16,918
|
|
|
15,763
|
|
|
67,163
|
|
|
64,290
|
EBITDA
|
|
|
$120,322
|
|
|
$118,928
|
|
|
$435,755
|
|
|
$420,568
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Prior year net sales
|
|
|
$632,594
|
|
|
$656,833
|
|
|
$2,436,948
|
|
|
$2,493,248
|
Change in net sales, excluding foreign currency translation
|
|
|
30,826
|
|
|
(20,710)
|
|
|
47,920
|
|
|
(24,144)
|
Foreign currency translation
|
|
|
4,806
|
|
|
(3,529)
|
|
|
(11,402)
|
|
|
(32,156)
|
Current year net sales
|
|
|
$668,226
|
|
|
$632,594
|
|
|
$2,473,466
|
|
|
$2,436,948
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Prior year net earnings
|
|
|
$72,609
|
|
|
$70,981
|
|
|
$247,377
|
|
|
$264,301
|
Change in net earnings, excluding foreign currency translation
|
|
|
(13)
|
|
|
1,883
|
|
|
13,873
|
|
|
(14,815)
|
Foreign currency translation
|
|
|
360
|
|
|
(255)
|
|
|
(1,026)
|
|
|
(2,109)
|
Current year net earnings
|
|
|
$72,956
|
|
|
$72,609
|
|
|
$260,224
|
|
|
$247,377
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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
|
|
|
|
2014
|
|
|
2013
|
|
|
2014
|
|
|
2013
|
Net earnings
|
|
|
$72,956
|
|
|
$72,609
|
|
|
$260,224
|
|
|
$247,377
|
Restructuring charges, net of tax
|
|
|
377
|
|
|
856
|
|
|
2,398
|
|
|
2,954
|
Net earnings, excluding special items
|
|
|
$73,333
|
|
|
$73,465
|
|
|
$262,622
|
|
|
$250,331
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net earnings per share assuming dilution
|
|
|
$0.50
|
|
|
$0.48
|
|
|
$1.76
|
|
|
$1.64
|
Restructuring charges per share, net of tax
|
|
|
0.01
|
|
|
0.01
|
|
|
0.02
|
|
|
0.02
|
Net earnings per share assuming dilution, excluding special items
|
|
|
$0.51
|
|
|
$0.49
|
|
|
$1.78
|
|
|
$1.66
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Although free cash flow, EBITDA, net sales excluding foreign currency
translation, and net earnings excluding foreign currency translation are
not measures of financial performance under GAAP, the Company believes
they are useful in understanding its financial results. Free cash flow
is a commonly used measure of a company's ability to generate cash in
excess of its operating needs. EBITDA is a commonly used measure of
operating earnings less non-cash expenses. Both net sales and net
earnings excluding foreign currency translation provide a comparable
measure for understanding the operating results of the company's foreign
entities excluding the impact of foreign exchange. A shortcoming of
these financial measures is that they do not reflect the company's
actual results under GAAP. Management does not intend these items to be
considered in isolation or as a substitute for the related GAAP measures.
Donaldson Company, Inc.
Rich Sheffer, 952-887-3753
Aug 27, 2014