Donaldson Updates Fiscal 2015 Guidance

May 4, 2015

Donaldson Company, Inc. updated its guidance for fiscal 2015. Full-year sales now expected to increase 1 percent to 2 percent in constant currencies.

Updated Fiscal 2015 Outlook:

  • Full-year sales are now expected to be in the range of $2.3 billion to $2.4 billion, or 4 percent to 5 percent below last year. In local currency, our sales are expected to increase 1 percent to 2 percent.
    • The forecast for the second half of fiscal 2015 is based on the Euro at US$1.07 and 120 Yen to the US$. Compared to our prior guidance, the estimated negative year-over-year impact from currency translation has grown to $152 million from $136 million.
  • Adjusted operating margin for the full year is expected to be in the range of 12.7 percent to 13.1 percent, which compares to prior guidance of 13.6 percent to 14.4 percent.
  • Expect full-year tax rate to be between 27 percent and 29 percent.
  • Adjusted diluted earnings per share (EPS) are now expected to be $1.51 to $1.61, which compares with prior guidance of $1.65 to $1.85 per share.
  • Excluding the impact from any additional restructuring actions, our GAAP diluted EPS are expected to be approximately 7 cents lower than adjusted EPS, driven by:

      Restructuring charges of approximately $10 million, or 5 cents per share, including approximately $6 million of charges related to the restructuring actions taken in our third quarter, and

  • A charge in the second quarter of $3.9 million, or 2 cents per share, resulting from a U.S. pension settlement.
  • As part of our ongoing share repurchase program, we are targeting a reduction of our outstanding shares of at least 4 percent in fiscal 2015