We could not find any results for:
Make sure your spelling is correct or try broadening your search.
Share Name | Share Symbol | Market | Type |
---|---|---|---|
Donaldson Co | NYSE:DCI | NYSE | Common Stock |
Price Change | % Change | Share Price | High Price | Low Price | Open Price | Shares Traded | Last Trade | |
---|---|---|---|---|---|---|---|---|
0.64 | 0.85% | 75.90 | 75.98 | 75.54 | 75.54 | 25,020 | 15:18:59 |
|
x
|
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 FOR THE QUARTERLY PERIOD ENDED JANUARY 31, 2017 OR
|
|
|
o
|
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 FOR THE TRANSITION PERIOD FROM _________________ TO _________________.
|
Delaware
|
|
41-0222640
|
(State or other jurisdiction of
|
|
(I.R.S. Employer
|
incorporation or organization)
|
|
Identification No.)
|
|
Large accelerated filer
x
|
Accelerated filer
o
|
|
|
|
|
Non-accelerated filer
o
(Do not check if a smaller reporting company)
|
Smaller reporting company
o
|
|
Item 1.
|
Financial Statements
|
|
Three Months Ended
January 31, |
|
Six Months Ended
January 31, |
||||||||||||
|
2017
|
|
2016
|
|
2017
|
|
2016
|
||||||||
Net sales
|
$
|
550.6
|
|
|
$
|
517.2
|
|
|
$
|
1,103.6
|
|
|
$
|
1,055.2
|
|
Cost of sales
|
362.7
|
|
|
346.4
|
|
|
721.5
|
|
|
706.3
|
|
||||
Gross profit
|
187.9
|
|
|
170.8
|
|
|
382.1
|
|
|
348.9
|
|
||||
Operating expenses
|
118.5
|
|
|
117.1
|
|
|
236.3
|
|
|
239.7
|
|
||||
Operating income
|
69.4
|
|
|
53.7
|
|
|
145.8
|
|
|
109.2
|
|
||||
Other income, net
|
(1.7
|
)
|
|
(1.2
|
)
|
|
(9.8
|
)
|
|
(4.1
|
)
|
||||
Interest expense
|
4.8
|
|
|
5.5
|
|
|
9.6
|
|
|
10.5
|
|
||||
Earnings before income taxes
|
66.3
|
|
|
49.4
|
|
|
146.0
|
|
|
102.8
|
|
||||
Income taxes
|
19.8
|
|
|
11.4
|
|
|
41.5
|
|
|
26.3
|
|
||||
Net earnings
|
$
|
46.5
|
|
|
$
|
38.0
|
|
|
$
|
104.5
|
|
|
$
|
76.5
|
|
|
|
|
|
|
|
|
|
||||||||
Weighted average shares - basic
|
132.9
|
|
|
133.7
|
|
|
133.2
|
|
|
133.8
|
|
||||
Weighted average shares - diluted
|
134.4
|
|
|
134.4
|
|
|
134.5
|
|
|
134.7
|
|
||||
Net earnings per share - basic
|
$
|
0.35
|
|
|
$
|
0.28
|
|
|
$
|
0.78
|
|
|
$
|
0.57
|
|
Net earnings per share - diluted
|
$
|
0.35
|
|
|
$
|
0.28
|
|
|
$
|
0.78
|
|
|
$
|
0.57
|
|
Cash dividends paid per share
|
$
|
0.175
|
|
|
$
|
0.170
|
|
|
$
|
0.350
|
|
|
$
|
0.340
|
|
|
Three Months Ended
January 31, |
|
Six Months Ended
January 31, |
||||||||||||
|
2017
|
|
2016
|
|
2017
|
|
2016
|
||||||||
Net earnings
|
$
|
46.5
|
|
|
$
|
38.0
|
|
|
$
|
104.5
|
|
|
$
|
76.5
|
|
Foreign currency translation loss
|
(8.4
|
)
|
|
(18.8
|
)
|
|
(20.8
|
)
|
|
(29.4
|
)
|
||||
Net gain (loss) on hedging derivatives, net of deferred taxes of $0.1, $(0.1), $(0.4) and $0.2, respectively
|
(0.3
|
)
|
|
(0.1
|
)
|
|
0.7
|
|
|
(0.7
|
)
|
||||
Pension and postretirement liability adjustment, net of deferred taxes of $(0.8), $9.5, $(1.8) and $10.7, respectively
|
1.3
|
|
|
(16.3
|
)
|
|
3.7
|
|
|
(17.3
|
)
|
||||
Total comprehensive income
|
$
|
39.1
|
|
|
$
|
2.8
|
|
|
$
|
88.1
|
|
|
$
|
29.1
|
|
|
January 31,
2017 |
|
July 31,
2016 |
||||
Assets
|
|
|
|
|
|
||
Current assets
|
|
|
|
|
|
||
Cash and cash equivalents
|
$
|
296.3
|
|
|
$
|
243.2
|
|
Accounts receivable, less allowance of $9.3 and $8.6
|
408.4
|
|
|
452.4
|
|
||
Inventories, net
|
260.4
|
|
|
234.1
|
|
||
Prepaids and other current assets
|
60.1
|
|
|
80.0
|
|
||
Total current assets
|
1,025.2
|
|
|
1,009.7
|
|
||
Property, plant, and equipment, at cost
|
1,160.4
|
|
|
1,150.6
|
|
||
Less accumulated depreciation
|
(700.7
|
)
|
|
(680.8
|
)
|
||
Property, plant, and equipment, net
|
459.7
|
|
|
469.8
|
|
||
Goodwill
|
228.7
|
|
|
229.3
|
|
||
Intangible assets, net
|
40.1
|
|
|
38.5
|
|
||
Deferred income taxes
|
34.2
|
|
|
7.8
|
|
||
Other long-term assets
|
29.8
|
|
|
31.9
|
|
||
Total assets
|
$
|
1,817.7
|
|
|
$
|
1,787.0
|
|
|
|
|
|
||||
Liabilities and shareholders' equity
|
|
|
|
||||
Current liabilities
|
|
|
|
||||
Short-term borrowings
|
$
|
176.4
|
|
|
$
|
165.5
|
|
Current maturities of long-term debt
|
100.7
|
|
|
51.2
|
|
||
Trade accounts payable
|
157.8
|
|
|
143.3
|
|
||
Other current liabilities
|
180.6
|
|
|
183.8
|
|
||
Total current liabilities
|
615.5
|
|
|
543.8
|
|
||
Long-term debt
|
297.8
|
|
|
350.2
|
|
||
Deferred income taxes
|
3.2
|
|
|
3.1
|
|
||
Other long-term liabilities
|
120.5
|
|
|
118.5
|
|
||
Total liabilities
|
1,037.0
|
|
|
1,015.6
|
|
||
|
|
|
|
||||
Commitments and contingencies (Note 14)
|
|
|
|
|
|
||
|
|
|
|
||||
Shareholders' equity
|
|
|
|
||||
Preferred stock, $1.00 par value, 1,000,000 shares authorized, none issued
|
—
|
|
|
—
|
|
||
Common stock, $5.00 par value, 240,000,000 shares authorized, 151,643,194 shares issued
|
758.2
|
|
|
758.2
|
|
||
Retained earnings
|
961.8
|
|
|
905.1
|
|
||
Non-controlling interest
|
4.2
|
|
|
4.0
|
|
||
Stock compensation plans
|
15.5
|
|
|
16.7
|
|
||
Accumulated other comprehensive loss
|
(222.0
|
)
|
|
(205.6
|
)
|
||
Treasury stock, 19,546,658 and 18,750,503 shares, at cost
|
(737.0
|
)
|
|
(707.0
|
)
|
||
Total shareholders' equity
|
780.7
|
|
|
771.4
|
|
||
Total liabilities and shareholders' equity
|
$
|
1,817.7
|
|
|
$
|
1,787.0
|
|
|
Six Months Ended
January 31, |
||||||
|
2017
|
|
2016
|
||||
Operating Activities
|
|
|
|
|
|
||
Net earnings
|
$
|
104.5
|
|
|
$
|
76.5
|
|
Adjustments to reconcile net earnings to net cash provided by operating activities:
|
|
|
|
||||
Depreciation and amortization
|
37.3
|
|
|
36.6
|
|
||
Changes in operating assets and liabilities, excluding effect of acquisition
|
19.8
|
|
|
(16.1
|
)
|
||
Tax benefit of equity plans
|
(3.0
|
)
|
|
(1.8
|
)
|
||
Stock compensation plan expense
|
5.8
|
|
|
5.3
|
|
||
Deferred taxes
|
(0.8
|
)
|
|
(1.3
|
)
|
||
Other, net
|
0.7
|
|
|
10.1
|
|
||
Net cash provided by operating activities
|
164.3
|
|
|
109.3
|
|
||
|
|
|
|
||||
Investing Activities
|
|
|
|
||||
Net expenditures on property, plant, and equipment
|
(25.0
|
)
|
|
(42.8
|
)
|
||
Proceeds from sale of short-term investments
|
—
|
|
|
18.0
|
|
||
Acquisitions, net of cash acquired
|
(10.9
|
)
|
|
(12.9
|
)
|
||
Net cash used in investing activities
|
(35.9
|
)
|
|
(37.7
|
)
|
||
|
|
|
|
||||
Financing Activities
|
|
|
|
||||
Purchase of treasury stock
|
(51.8
|
)
|
|
(68.0
|
)
|
||
Repayments of long-term debt
|
(0.5
|
)
|
|
(0.7
|
)
|
||
Change in short-term borrowings
|
12.0
|
|
|
73.1
|
|
||
Dividends paid
|
(46.3
|
)
|
|
(45.2
|
)
|
||
Tax benefit of equity plans
|
3.0
|
|
|
1.8
|
|
||
Exercise of stock options
|
12.1
|
|
|
5.0
|
|
||
Net cash used in financing activities
|
(71.5
|
)
|
|
(34.0
|
)
|
||
Effect of exchange rate changes on cash
|
(3.8
|
)
|
|
(5.4
|
)
|
||
Increase in cash and cash equivalents
|
53.1
|
|
|
32.2
|
|
||
Cash and cash equivalents, beginning of year
|
243.2
|
|
|
189.9
|
|
||
Cash and cash equivalents, end of period
|
$
|
296.3
|
|
|
$
|
222.1
|
|
|
January 31,
2017 |
|
July 31,
2016 |
||||
Raw materials
|
$
|
77.8
|
|
|
$
|
92.5
|
|
Work in process
|
25.0
|
|
|
18.4
|
|
||
Finished products
|
157.6
|
|
|
123.2
|
|
||
Total inventories
|
$
|
260.4
|
|
|
$
|
234.1
|
|
|
Three Months Ended
January 31, |
|
Six Months Ended
January 31, |
||||||||||||
|
2017
|
|
2016
|
|
2017
|
|
2016
|
||||||||
Net earnings
|
$
|
46.5
|
|
|
$
|
38.0
|
|
|
$
|
104.5
|
|
|
$
|
76.5
|
|
Weighted average common shares outstanding:
|
|
|
|
|
|
|
|
||||||||
Basic
|
132.9
|
|
|
133.7
|
|
|
133.2
|
|
|
133.8
|
|
||||
Dilutive impact of share based awards
|
1.5
|
|
|
0.7
|
|
|
1.3
|
|
|
0.9
|
|
||||
Diluted
|
134.4
|
|
|
134.4
|
|
|
134.5
|
|
|
134.7
|
|
||||
|
|
|
|
|
|
|
|
||||||||
Net earnings per share - basic
|
$
|
0.35
|
|
|
$
|
0.28
|
|
|
$
|
0.78
|
|
|
$
|
0.57
|
|
Net earnings per share - diluted
|
$
|
0.35
|
|
|
$
|
0.28
|
|
|
$
|
0.78
|
|
|
$
|
0.57
|
|
|
Engine
Products
|
|
Industrial
Products
|
|
Total
Goodwill
|
||||||
Balance as of July 31, 2016
|
$
|
77.3
|
|
|
$
|
152.0
|
|
|
$
|
229.3
|
|
Goodwill acquired
|
1.1
|
|
|
—
|
|
|
1.1
|
|
|||
Foreign exchange translation
|
(0.2
|
)
|
|
(1.5
|
)
|
|
(1.7
|
)
|
|||
Balance as of January 31, 2017
|
$
|
78.2
|
|
|
$
|
150.5
|
|
|
$
|
228.7
|
|
|
Six Months Ended
January 31, |
||||||
|
2017
|
|
2016
|
||||
Beginning balance
|
$
|
11.9
|
|
|
$
|
8.6
|
|
Accruals for warranties issued during the reporting period
|
1.5
|
|
|
2.6
|
|
||
Accruals related to pre-existing warranties (including changes in estimates)
|
3.8
|
|
|
2.7
|
|
||
Less settlements made during the period
|
(2.5
|
)
|
|
(1.7
|
)
|
||
Ending balance
|
$
|
14.7
|
|
|
$
|
12.2
|
|
|
Options
Outstanding
|
|
Weighted
Average
Exercise Price
|
|||
Outstanding as of July 31, 2016
|
6,822,390
|
|
|
$
|
30.09
|
|
Granted
|
888,500
|
|
|
$
|
42.65
|
|
Exercised
|
(531,438
|
)
|
|
$
|
23.65
|
|
Canceled
|
(34,447
|
)
|
|
$
|
36.60
|
|
Outstanding as of January 31, 2017
|
7,145,005
|
|
|
$
|
32.10
|
|
Range of Exercise Prices
|
|
Number Outstanding
|
|
Weighted
Average
Remaining
Contractual
Life (Years)
|
|
Weighted
Average
Exercise
Price of Outstanding Options
|
|
Number
Exercisable
|
|
Weighted
Average
Exercise
Price of Exercisable Options
|
||||||
$ 0.00 to $17.69
|
|
475,245
|
|
|
1.91
|
|
$
|
17.05
|
|
|
475,245
|
|
|
$
|
17.05
|
|
$17.70 to $23.69
|
|
1,173,588
|
|
|
2.17
|
|
$
|
21.44
|
|
|
1,173,588
|
|
|
$
|
21.44
|
|
$23.70 to $29.69
|
|
1,584,597
|
|
|
6.70
|
|
$
|
28.54
|
|
|
985,194
|
|
|
$
|
28.83
|
|
$29.70 to $35.69
|
|
1,432,395
|
|
|
5.35
|
|
$
|
34.22
|
|
|
1,406,129
|
|
|
$
|
34.27
|
|
$35.70 and above
|
|
2,479,180
|
|
|
8.27
|
|
$
|
41.08
|
|
|
1,286,423
|
|
|
$
|
40.59
|
|
|
|
7,145,005
|
|
|
5.91
|
|
$
|
32.10
|
|
|
5,326,579
|
|
|
$
|
30.43
|
|
|
Three Months Ended
January 31, |
|
Six Months Ended
January 31, |
||||||||||||
|
2017
|
|
2016
|
|
2017
|
|
2016
|
||||||||
Net periodic benefit cost:
|
|
|
|
|
|
|
|
|
|
|
|
||||
Service cost
|
$
|
2.0
|
|
|
$
|
4.5
|
|
|
$
|
4.1
|
|
|
$
|
9.1
|
|
Interest cost
|
3.4
|
|
|
4.8
|
|
|
6.7
|
|
|
9.5
|
|
||||
Expected return on assets
|
(6.6
|
)
|
|
(7.2
|
)
|
|
(13.2
|
)
|
|
(14.5
|
)
|
||||
Prior service cost amortization
|
0.2
|
|
|
0.1
|
|
|
0.4
|
|
|
0.3
|
|
||||
Actuarial loss amortization
|
1.8
|
|
|
2.1
|
|
|
3.6
|
|
|
4.3
|
|
||||
Net periodic benefit cost
|
$
|
0.8
|
|
|
$
|
4.3
|
|
|
$
|
1.6
|
|
|
$
|
8.7
|
|
|
Foreign
Currency Translation Adjustment (a) |
|
Pension
Benefits |
|
Derivative
Financial Instruments |
|
Total
|
||||||||
Balance as of October 31, 2016, net of tax
|
$
|
(101.7
|
)
|
|
$
|
(113.4
|
)
|
|
$
|
0.5
|
|
|
$
|
(214.6
|
)
|
Other comprehensive (loss) income before reclassifications and tax
|
(8.4
|
)
|
|
—
|
|
|
0.3
|
|
|
(8.1
|
)
|
||||
Tax benefit (expense)
|
—
|
|
|
—
|
|
|
(0.1
|
)
|
|
(0.1
|
)
|
||||
Other comprehensive (loss) income before reclassifications, net of tax
|
(8.4
|
)
|
|
—
|
|
|
0.2
|
|
|
(8.2
|
)
|
||||
Reclassifications, before tax
|
—
|
|
|
2.1
|
|
|
(0.7
|
)
|
|
1.4
|
|
||||
Tax benefit (expense)
|
—
|
|
|
(0.8
|
)
|
|
0.2
|
|
|
(0.6
|
)
|
||||
Reclassifications, net of tax
|
—
|
|
|
1.3
|
|
(b)
|
(0.5
|
)
|
(c)
|
0.8
|
|
||||
Other comprehensive (loss) income, net of tax
|
(8.4
|
)
|
|
1.3
|
|
|
(0.3
|
)
|
|
(7.4
|
)
|
||||
Balance as of January 31, 2017, net of tax
|
$
|
(110.1
|
)
|
|
$
|
(112.1
|
)
|
|
$
|
0.2
|
|
|
$
|
(222.0
|
)
|
|
|
|
|
|
|
|
|
||||||||
Balance as of October 31, 2015, net of tax
|
$
|
(81.4
|
)
|
|
$
|
(91.6
|
)
|
|
$
|
(1.2
|
)
|
|
$
|
(174.2
|
)
|
Other comprehensive (loss) income before reclassifications and tax
|
(18.8
|
)
|
|
(29.7
|
)
|
|
0.8
|
|
|
(47.7
|
)
|
||||
Tax benefit (expense)
|
—
|
|
|
10.7
|
|
|
(0.3
|
)
|
|
10.4
|
|
||||
Other comprehensive (loss) income before reclassifications, net of tax
|
(18.8
|
)
|
|
(19.0
|
)
|
|
0.5
|
|
|
(37.3
|
)
|
||||
Reclassifications, before tax
|
—
|
|
|
3.9
|
|
|
(0.8
|
)
|
|
3.1
|
|
||||
Tax benefit (expense)
|
—
|
|
|
(1.2
|
)
|
|
0.2
|
|
|
(1.0
|
)
|
||||
Reclassifications, net of tax
|
—
|
|
|
2.7
|
|
(b)
|
(0.6
|
)
|
(c)
|
2.1
|
|
||||
Other comprehensive (loss) income, net of tax
|
(18.8
|
)
|
|
(16.3
|
)
|
|
(0.1
|
)
|
|
(35.2
|
)
|
||||
Balance as of January 31, 2016, net of tax
|
$
|
(100.2
|
)
|
|
$
|
(107.9
|
)
|
|
$
|
(1.3
|
)
|
|
$
|
(209.4
|
)
|
(a)
|
Taxes are not provided on cumulative translation adjustments as substantially all translation adjustments relate to earnings that are intended to be indefinitely reinvested outside the U.S.
|
(b)
|
Primarily includes net amortization of prior service costs and actuarial losses included in net periodic benefit cost (see Note 9) that were reclassified from accumulated other comprehensive loss to operating expenses or cost of sales.
|
(c)
|
Relates to foreign currency cash flow hedges that were reclassified from accumulated other comprehensive loss to other income, net.
|
|
Foreign
Currency Translation Adjustment (a) |
|
Pension
Benefits |
|
Derivative
Financial Instruments |
|
Total
|
||||||||
Balance as of July 31, 2016, net of tax
|
$
|
(89.3
|
)
|
|
$
|
(115.8
|
)
|
|
$
|
(0.5
|
)
|
|
$
|
(205.6
|
)
|
Other comprehensive (loss) income before reclassifications and tax
|
(20.8
|
)
|
|
—
|
|
|
1.9
|
|
|
(18.9
|
)
|
||||
Tax benefit (expense)
|
—
|
|
|
—
|
|
|
(0.6
|
)
|
|
(0.6
|
)
|
||||
Other comprehensive (loss) income before reclassifications, net of tax
|
(20.8
|
)
|
|
—
|
|
|
1.3
|
|
|
(19.5
|
)
|
||||
Reclassifications, before tax
|
—
|
|
|
5.5
|
|
|
(0.8
|
)
|
|
4.7
|
|
||||
Tax benefit (expense)
|
—
|
|
|
(1.8
|
)
|
|
0.2
|
|
|
(1.6
|
)
|
||||
Reclassifications, net of tax
|
—
|
|
|
3.7
|
|
(b)
|
(0.6
|
)
|
(c)
|
3.1
|
|
||||
Other comprehensive (loss) income, net of tax
|
(20.8
|
)
|
|
3.7
|
|
|
0.7
|
|
|
(16.4
|
)
|
||||
Balance as of January 31, 2017, net of tax
|
$
|
(110.1
|
)
|
|
$
|
(112.1
|
)
|
|
$
|
0.2
|
|
|
$
|
(222.0
|
)
|
|
|
|
|
|
|
|
|
||||||||
Balance as of July 31, 2015, net of tax
|
$
|
(70.8
|
)
|
|
$
|
(90.6
|
)
|
|
$
|
(0.6
|
)
|
|
$
|
(162.0
|
)
|
Other comprehensive (loss) income before reclassifications and tax
|
(29.4
|
)
|
|
(38.8
|
)
|
|
(0.4
|
)
|
|
(68.6
|
)
|
||||
Tax benefit (expense)
|
—
|
|
|
14.1
|
|
|
0.1
|
|
|
14.2
|
|
||||
Other comprehensive (loss) income before reclassifications, net of tax
|
(29.4
|
)
|
|
(24.7
|
)
|
|
(0.3
|
)
|
|
(54.4
|
)
|
||||
Reclassifications, before tax
|
—
|
|
|
10.8
|
|
|
(0.5
|
)
|
|
10.3
|
|
||||
Tax benefit (expense)
|
—
|
|
|
(3.4
|
)
|
|
0.1
|
|
|
(3.3
|
)
|
||||
Reclassifications, net of tax
|
—
|
|
|
7.4
|
|
(b)
|
(0.4
|
)
|
(c)
|
7.0
|
|
||||
Other comprehensive (loss) income, net of tax
|
(29.4
|
)
|
|
(17.3
|
)
|
|
(0.7
|
)
|
|
(47.4
|
)
|
||||
Balance as of January 31, 2016, net of tax
|
$
|
(100.2
|
)
|
|
$
|
(107.9
|
)
|
|
$
|
(1.3
|
)
|
|
$
|
(209.4
|
)
|
(a)
|
Taxes are not provided on cumulative translation adjustments as substantially all translation adjustments relate to earnings that are intended to be indefinitely reinvested outside the U.S.
|
(b)
|
Primarily includes net amortization of prior service costs and actuarial losses included in net periodic benefit cost (see Note 9) that were reclassified from accumulated other comprehensive loss to operating expenses or cost of sales.
|
(c)
|
Relates to foreign currency cash flow hedges that were reclassified from accumulated other comprehensive loss to other income, net.
|
|
Three Months Ended
January 31, |
|
Six Months Ended
January 31, |
||||||||||||
|
2017
|
|
2016
|
|
2017
|
|
2016
|
||||||||
Net Sales
|
|
|
|
|
|
|
|
||||||||
Engine Products segment
|
$
|
361.9
|
|
|
$
|
320.9
|
|
|
$
|
715.7
|
|
|
$
|
667.5
|
|
Industrial Products segment
|
188.7
|
|
|
196.3
|
|
|
387.9
|
|
|
387.7
|
|
||||
Total
|
$
|
550.6
|
|
|
$
|
517.2
|
|
|
$
|
1,103.6
|
|
|
$
|
1,055.2
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Earnings Before Income Taxes
|
|
|
|
|
|
|
|
||||||||
Engine Products segment
|
$
|
48.7
|
|
|
$
|
27.4
|
|
|
$
|
94.1
|
|
|
$
|
63.4
|
|
Industrial Products segment
|
24.3
|
|
|
27.7
|
|
|
62.6
|
|
|
51.7
|
|
||||
Corporate and Unallocated
|
(6.7
|
)
|
|
(5.7
|
)
|
|
(10.7
|
)
|
|
(12.3
|
)
|
||||
Total
|
$
|
66.3
|
|
|
$
|
49.4
|
|
|
$
|
146.0
|
|
|
$
|
102.8
|
|
Item 2.
|
Management’s Discussion and Analysis of Financial Condition and Results of Operations
|
|
Three Months Ended January 31,
|
||||||||||||
|
2017
|
|
2016
|
||||||||||
Net sales
|
$
|
550.6
|
|
|
|
|
$
|
517.2
|
|
|
|
||
Cost of sales
|
362.7
|
|
|
65.9
|
%
|
|
346.4
|
|
|
67.0
|
%
|
||
Gross profit
|
187.9
|
|
|
34.1
|
%
|
|
170.8
|
|
|
33.0
|
%
|
||
Operating expenses
|
118.5
|
|
|
21.5
|
%
|
|
117.1
|
|
|
22.6
|
%
|
||
Operating income
|
69.4
|
|
|
12.6
|
%
|
|
53.7
|
|
|
10.4
|
%
|
||
Other income, net
|
(1.7
|
)
|
|
(0.3
|
)%
|
|
(1.2
|
)
|
|
(0.2
|
)%
|
||
Interest expense
|
4.8
|
|
|
0.9
|
%
|
|
5.5
|
|
|
1.1
|
%
|
||
Earnings before income taxes
|
66.3
|
|
|
12.0
|
%
|
|
49.4
|
|
|
9.6
|
%
|
||
Income taxes
|
19.8
|
|
|
3.6
|
%
|
|
11.4
|
|
|
2.2
|
%
|
||
Net earnings
|
$
|
46.5
|
|
|
8.4
|
%
|
|
$
|
38.0
|
|
|
7.3
|
%
|
|
Six Months Ended January 31, 2017
|
||||||||||||
|
2017
|
|
2016
|
||||||||||
Net sales
|
$
|
1,103.6
|
|
|
|
|
$
|
1,055.2
|
|
|
|
||
Cost of sales
|
721.5
|
|
|
65.4
|
%
|
|
706.3
|
|
|
66.9
|
%
|
||
Gross profit
|
382.1
|
|
|
34.6
|
%
|
|
348.9
|
|
|
33.1
|
%
|
||
Operating expenses
|
236.3
|
|
|
21.4
|
%
|
|
239.7
|
|
|
22.7
|
%
|
||
Operating income
|
145.8
|
|
|
13.2
|
%
|
|
109.2
|
|
|
10.3
|
%
|
||
Other income, net
|
(9.8
|
)
|
|
(0.9
|
)%
|
|
(4.1
|
)
|
|
(0.4
|
)%
|
||
Interest expense
|
9.6
|
|
|
0.9
|
%
|
|
10.5
|
|
|
1.0
|
%
|
||
Earnings before income taxes
|
146.0
|
|
|
13.2
|
%
|
|
102.8
|
|
|
9.7
|
%
|
||
Income taxes
|
41.5
|
|
|
3.8
|
%
|
|
26.3
|
|
|
2.5
|
%
|
||
Net earnings
|
$
|
104.5
|
|
|
9.5
|
%
|
|
$
|
76.5
|
|
|
7.2
|
%
|
|
Three Months Ended
January 31, |
|
Six Months Ended
January 31, |
||||||||||||
|
2017
|
|
2016
|
|
2017
|
|
2016
|
||||||||
Net Sales:
|
|
|
|
|
|
|
|
||||||||
Engine Products segment
|
$
|
361.9
|
|
|
$
|
320.9
|
|
|
$
|
715.7
|
|
|
$
|
667.5
|
|
Industrial Products segment
|
188.7
|
|
|
196.3
|
|
|
387.9
|
|
|
387.7
|
|
||||
Total
|
$
|
550.6
|
|
|
$
|
517.2
|
|
|
$
|
1,103.6
|
|
|
$
|
1,055.2
|
|
|
|
|
|
|
|
|
|
||||||||
Earnings Before Income Taxes:
|
|
|
|
|
|
|
|
||||||||
Engine Products segment
|
$
|
48.7
|
|
|
$
|
27.4
|
|
|
$
|
94.1
|
|
|
$
|
63.4
|
|
Industrial Products segment
|
24.3
|
|
|
27.7
|
|
|
62.6
|
|
|
51.7
|
|
||||
Corporate and Unallocated
|
(6.7
|
)
|
|
(5.7
|
)
|
|
(10.7
|
)
|
|
(12.3
|
)
|
||||
Total
|
$
|
66.3
|
|
|
$
|
49.4
|
|
|
$
|
146.0
|
|
|
$
|
102.8
|
|
|
Three Months Ended
January 31, |
|
Six Months Ended
January 31, |
||||||||||||
|
2017
|
|
2016
|
|
2017
|
|
2016
|
||||||||
Net Sales Engine Products segment:
|
|
|
|
|
|
|
|
||||||||
Off-Road Products
|
$
|
57.6
|
|
|
$
|
52.6
|
|
|
$
|
112.4
|
|
|
$
|
107.4
|
|
On-Road Products
|
23.3
|
|
|
32.5
|
|
|
49.9
|
|
|
68.3
|
|
||||
Aftermarket Products
|
256.6
|
|
|
213.7
|
|
|
504.2
|
|
|
445.9
|
|
||||
Aerospace and Defense Products
|
24.4
|
|
|
22.1
|
|
|
49.2
|
|
|
45.9
|
|
||||
Net Sales Engine Products segment
|
$
|
361.9
|
|
|
$
|
320.9
|
|
|
$
|
715.7
|
|
|
$
|
667.5
|
|
|
|
|
|
|
|
|
|
||||||||
Engine Products segment Earnings Before Income Taxes
|
$
|
48.7
|
|
|
$
|
27.4
|
|
|
$
|
94.1
|
|
|
$
|
63.4
|
|
|
Three Months Ended
January 31, |
|
Six Months Ended
January 31, |
||||||||||||
|
2017
|
|
2016
|
|
2017
|
|
2016
|
||||||||
Net Sales Industrial Products segment:
|
|
|
|
|
|
|
|
||||||||
Industrial Filtration Solutions
|
$
|
127.8
|
|
|
$
|
120.4
|
|
|
$
|
254.2
|
|
|
$
|
246.9
|
|
Gas Turbine Systems
|
21.2
|
|
|
32.8
|
|
|
53.7
|
|
|
57.0
|
|
||||
Special Application Products
|
39.7
|
|
|
43.1
|
|
|
80.0
|
|
|
83.8
|
|
||||
Net Sales Industrial Products segment
|
$
|
188.7
|
|
|
$
|
196.3
|
|
|
$
|
387.9
|
|
|
$
|
387.7
|
|
|
|
|
|
|
|
|
|
||||||||
Industrial Products segment Earnings Before Income Taxes
|
$
|
24.3
|
|
|
$
|
27.7
|
|
|
$
|
62.6
|
|
|
$
|
51.7
|
|
Item 3.
|
Quantitative and Qualitative Disclosures about Market Risk
|
Item 4.
|
Controls and Procedures
|
Item 1.
|
Legal Proceedings
|
Item 1A.
|
Risk Factors
|
Item 2.
|
Unregistered Sales of Equity Securities and Use of Proceeds
|
Period
|
|
Total Number
of Shares
Purchased (1)
|
|
Average Price
Paid per Share
|
|
Total Number
of Shares
Purchased as
Part of Publicly
Announced Plans
or Programs
|
|
Maximum
Number
of Shares
that May Yet
Be Purchased
Under the Plans
or Programs
|
|||||
November 1 - November 30, 2016
|
|
10,099
|
|
|
$
|
36.03
|
|
|
—
|
|
|
9,373,842
|
|
December 1 - December 31, 2016
|
|
—
|
|
|
—
|
|
|
—
|
|
|
9,373,842
|
|
|
January 1 - January 31, 2017
|
|
250,000
|
|
|
41.96
|
|
|
250,000
|
|
|
9,123,842
|
|
|
Total
|
|
260,099
|
|
|
$
|
41.73
|
|
|
250,000
|
|
|
|
|
Item 6.
|
Exhibits
|
|
*3-A – Restated Certificate of Incorporation of Registrant as currently in effect (Filed as Exhibit 3-A to Form 10-Q Report for the Second Quarter ended January 31, 2012)
|
|
*3-B – Certificate of Designation, Preferences and Rights of Series A Junior Participating Preferred Stock of Registrant, dated as of March 3, 2006 (Filed as Exhibit 3-B to 2011 Form 10-K Report)
|
|
*3-C – Amended and Restated Bylaws of Registrant (as of July 29, 2016) (Filed as Exhibit 3-C to Form 8-K Report filed on July 29, 2016)
|
|
*4 – **
|
|
*4-A – Preferred Stock Amended and Restated Rights Agreement between Registrant and Wells Fargo Bank, N.A., as Rights Agent, dated as of January 27, 2006 (Filed as Exhibit 4-A to 2011 Form 10-K Report)
|
|
31-A – Certification of Chief Executive Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
|
|
31-B – Certification of Chief Financial Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
|
|
32 – Certifications of Chief Executive Officer and Chief Financial Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002
|
|
101 – The following information from the Donaldson Company, Inc. Quarterly Report on Form 10-Q for the fiscal quarter ended January 31, 2017, as filed with the Securities and Exchange Commission, formatted in Extensible Business Reporting Language (XBRL): (i) the Condensed Consolidated Statements of Earnings, (ii) the Condensed Consolidated Balance Sheets, (iii) the Condensed Consolidated Statements of Comprehensive Income, (iv) the Condensed Consolidated Statements of Cash Flows and (v) the Notes to Condensed Consolidated Financial Statements.
|
*
|
Exhibit has previously been filed with the Securities and Exchange Commission and is incorporated herein by reference as an exhibit.
|
**
|
Pursuant to the provisions of Regulation S-K Item 601(b)(4)(iii)(A), copies of instruments defining the rights of holders of certain long-term debts of the Company and its subsidiaries are not filed and in lieu thereof the Company agrees to furnish a copy thereof to the Securities and Exchange Commission upon request.
|
|
|
|
|
DONALDSON COMPANY, INC.
|
|
|
(Registrant)
|
Date: March 8, 2017
|
By:
|
/s/ Tod E. Carpenter
|
|
|
Tod E. Carpenter
President and
Chief Executive Officer
(duly authorized officer)
|
|
|
|
|
|
|
Date: March 8, 2017
|
By:
|
/s/ Scott J. Robinson
|
|
|
Scott J. Robinson
Vice President,
Chief Financial Officer
(principal financial officer)
|
|
|
|
|
|
|
Date: March 8, 2017
|
By:
|
/s/ Melissa A. Osland
|
|
|
Melissa A. Osland
Corporate Controller
(principal accounting officer)
|
1 Year Donaldson Chart |
1 Month Donaldson Chart |
It looks like you are not logged in. Click the button below to log in and keep track of your recent history.
Support: +44 (0) 203 8794 460 | support@advfn.com
By accessing the services available at ADVFN you are agreeing to be bound by ADVFN's Terms & Conditions