Donaldson Q2 Sales Up 2.6%

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Donaldson year-over-year sales increased 2.6 percent in the second quarter to $679.1 million from $662.0 million in 2020. Net earnings were down 12.7 percent to $56.2 million, compared to the $64.4 million reported in the second quarter of 2020.

The company cited “restructuring activities” primarily in its Europe, Middle East, and Africa region. Adjusted net earnings were $66.8 million.

“Our second quarter results demonstrate the advantage of our diversified portfolio of businesses that allow Donaldson to benefit from cyclical end-market recovery while mitigating the effects of weaker markets at different points in the cycle,” said Tod Carpenter, chairman, president, and CEO, in a prepared statement. “We are executing our strategy to expand our total addressable markets to further enable Donaldson to leverage our filtration technology leadership position, and we are well-positioned to benefit from the post-pandemic recovery.

“We are encouraged by the robust growth in our Engine Off-Road and Aftermarket businesses, which contributed to stronger-than-expected second quarter sales, as well as emerging signs of broad-based recovery. As we are now midway through our fiscal year, and with the backdrop of improving end markets, while noting that uncertainties due to the pandemic continue to exist, full year guidance has been provided for fiscal 2021. We expect adjusted operating margin to increase in fiscal 2021 driven by expanded leverage on higher volumes partially offset by higher commodity costs and mix pressures.”

Engine Products sales increased 6.2 percent for the quarter, reflecting strong results in Off-Road and Aftermarket, partially offset by continued weakness in Aerospace and Defense and On-Road. On-Road sales declined modestly driven primarily by weaker U.S. Class 8 truck builds.

Source: Donaldson