Filtration products maker Donaldson Co., Inc. (DCI) said Monday after the markets closed that its fourth quarter profit more than doubled from last year, helped by higher sales and improved margins. The company's quarterly earnings per share also came in above analysts' expectations. However, the company issued an earnings outlook range for fiscal 2011, the mid-point of which fell below analysts' current consensus estimate.
The Minneapolis, Minnesota-based company reported net income for the fourth quarter of $51.2 million or $0.65 per share, compared to $23.6 million or $0.30 per share for the year-ago quarter.
The company said restructuring and asset impairment charges were not material in the latest quarter.
On average, 8 analysts polled by Thomson Reuters expected the company to earn $0.64 per share for the fourth quarter. Analysts' estimates typically exclude special items.
Gross margin for the fourth quarter increased to 36.3% from 32.8% a year ago, due to improved fixed cost absorption and ongoing continuous improvement initiatives.
Net sales for the fourth quarter rose 22% to $515.24 million from $421.32 million in the same quarter last year. Fourth quarter net sales grew 4% sequentially. Eight analysts had a consensus revenue estimate of $499.50 million for the fourth quarter.
"While we have seen a gradual improvement in global economic conditions, what has really driven our performance has been our relentless focus on those things we can control. We have focused on our Continuous Improvement initiatives, new product introductions, emerging market growth, and the expansion of distribution for our Customers," said Bill Cook, Chairman, President and CEO.
Net sales in the company's engine products segment increased 35% to $308.0 million in the fourth quarter, as equipment build rates improved at the company's OEM customers and its aftermarket products' sales remained robust due to better equipment utilization and recent market share 'wins.'
Net sales in the company's industrial products segment grew 7% to $207.3 million in the fourth quarter, driven mainly by its special applications products and stronger than expected dust collection sales in industrial filtration solutions.
During the fourth quarter, Donaldson repurchased about 1.01 million shares of its common stock for $42.9 million, taking the full year total to about 1.65 million shares purchased for $66.7 million.
For the fiscal year 2010, the company reported net income of $166.2 million or $2.10 per share, compared to $131.9 million or $1.67 per share for the fiscal year 2009.
Excluding items, adjusted net income for the fiscal year 2010 was $173.4 million or $2.19 per share, compared to $144.0 million or $1.82 per share last year.
Net sales for the fiscal year 2010 grew 1% to $1.88 billion from $1.87 billion for the fiscal year 2010.
The company had forecast sales of $1.83 billion to $1.86 billion, earnings of $2.01 to $2.11 per share, and adjusted earnings of $2.10 to $2.20 per share.
Analysts had expected the company to earn $2.16 per share on revenue of $1.86 billion for the fiscal year 2010.
Looking forward, the company said it expects a continued recovery in many of its end markets in fiscal 2011, with higher growth in the emerging economies. The company forecast sales of about $2 billion and earnings of $2.28 to $2.48 for the fiscal year 2010.
Analysts currently expect the company to earn $2.45 per share on revenue of $2.06 billion for the fiscal year 2011.
Donaldson shares, which have traded in a range of $32.60 to $48.26 over the past year, closed Monday's regular trading session at $42.88, down 48 cents or 1.11%, and lost an additional 78 cents or 1.82% in after hours trading.
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June 05, 2026 16:18 ET A busy week for economic news flow saw a slew of reports being released that reflected the trends in the U.S. labor market. In Europe, economic growth and inflation data gained attention as the European Central Bank and Bank of England head for policy session later in the month. In Asia, the monetary policy session of the Indian central bank was in focus as the country, a major oil importer, reels under the pressures of a weaker rupee and rising inflation.