Donaldson Company, Inc. today announced third quarter 2017 net earnings of $60.1 million, or $0.45 per share, compared with $54.8 million, or $0.41 per share, in 2016. The prior-year results included restructuring charges, which reduced GAAP earnings per share (EPS) by approximately 2 cents. Excluding this impact, third quarter 2016 adjusted EPS2 were $0.43. The tables attached to this press release include a reconciliation of GAAP to non-GAAP measures.
Donaldson generated third quarter 2017 sales of $608.2 million, an increase of 6.5 percent from $571.3 million in 2016. Excluding the negative impact from currency translation, third quarter sales increased 7.7 percent from the prior year, driven by an increase of 14.3 percent in sales of Engine Products, partially offset by a 3.3 percent decline in Industrial Products. The table below illustrates year-over-year sales performance with and without the impact from foreign currency translation.
Reported % Change
|Donaldson Filtration Solutions||Three months ended
April 30, 2017
|Nine months ended
April 30, 2017
|Reported % Change||Reported % Change|
|Aerospace & Defense||22.3||12.1|
|Industrial Filtration Solutions||.03||2.1|
|Gas Turbine Systems||(34.5)||(18.9)|
“Our employees are doing an excellent job executing our strategy while also supporting our customers as we react to stronger-than-expected demand in our Engine segment,” said Tod Carpenter, president and chief executive officer. “We anticipate the strong growth in Engine, particularly in Off-Road and Aftermarket, carrying through the fourth quarter, resulting in full-year sales and profit that are both above our prior guidance.
“While the signs of stabilization in our Engine markets are encouraging, the variability in our Industrial segment is a reminder that there is still economic and geopolitical uncertainty. We continue to address the mixed operating environment by planning cautiously while making targeted investments. These actions are guided by our strategic priorities, and our results so far this year are evidence of the progress we have made. Sales of innovative products and replacement parts are strong, and the recent acquisition of Hy-Pro Filtration will contribute to our inorganic growth targets. I am confident that we can leverage this success to meet our strategic and financial targets for this fiscal year and further strengthen our foundation for delivering long-term growth.”