Donaldson Company, Inc. (NYSE:DCI) today announced that it has filed its
Annual Report on Form 10-K for the fiscal year ended July 31, 2015,
following the completion of the previously announced independent
investigation related to the recognition of revenue for certain projects
in its European Gas Turbine Products business. As a result of this
filing, the Company expects to regain compliance with NYSE listing
standards.
"With our 10-K filed and the investigation into our European Gas Turbine
business behind us, we are now focused on reemphasizing our core values,
enhancing our training and strengthening our control processes," said
Tod Carpenter, President and CEO of Donaldson. "Donaldson has always
been committed to continuous improvement, and we will leverage this
experience to become an even stronger company."
The independent investigation concluded that the revenue transactions
for certain projects in the European Gas Turbine business were valid
customer orders, but the revenue related to these projects was
inappropriately recognized in an accelerated manner during the fourth
quarter of fiscal 2014 and the second and third quarters of fiscal 2015.
The impact to full-year 2014 financial results was determined to be
immaterial, and there was no impact to full-year 2015 financial results.
Although the impact to previously issued interim financial statements
was also determined to be immaterial, Donaldson chose to revise its
quarterly financial information within its Form 10-K to correct the
misstatements.
The most significant impact to previously issued interim financial
statements occurred in the second and third quarters of fiscal 2015.
Specifically, fiscal 2015 second quarter revenue and net income was
overstated by $8.4 million and $1.6 million, respectively, and third
quarter revenue and net income was understated by $7.6 million and $1.4
million, respectively. As a result, EPS in second quarter fiscal 2015
was overstated by approximately 1 cent, while third quarter EPS was
understated by approximately 1 cent. Additional detail related to these
revisions is included in Note O of the Company's Form 10-K for the
fiscal year ended July 31, 2015.
Miscellaneous
For more information, please reference the Company's Form 10-K for the
fiscal year ended July 31, 2015. This document, the related Form 12b-25,
Notification of Late Filing, and all associated press releases, are
available on Donaldson's investor relations site at IR.Donaldson.com.
The Company wishes to caution investors that any forward-looking
statements (such as those identified by words such as "believe,"
"expect" or similar expressions) 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 the
timing and outcome of the Audit Committee's investigation, including the
possible identification of additional facts that could have an impact on
the Company's historical or future financial results. The Company
undertakes no obligation to publicly update or revise any
forward-looking statements.
About Donaldson Company
Founded 100 years ago, Donaldson (NYSE:DCI) is a global leader in the
filtration industry. The Company's innovative filtration technologies
improve people's lives, enhance Customers' equipment performance, and
protect the environment. More than 12,500 employees support Customers at
140 sales, manufacturing, and distribution locations. For more
information, visit www.Donaldson.com.
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Donaldson Company, Inc.
Brad Pogalz, 952-887-3753
Nov 10, 2015