Donaldson Company, Inc. (DCI) has been benefiting from its diversified business structure with exposure in various end markets like construction, mining, aerospace, defense and food & beverage. Strength in the company’s industrial filtration solutions business driven by solid best collection and power generation sales have been aiding the Industrial Solutions segment. Increasing defense sales within the Aerospace and Defense business augur well for the segment.The company remains focused on acquiring busine ...

MINNEAPOLIS--(BUSINESS WIRE)--Donaldson Company, Inc. (NYSE: DCI), a leading worldwide provider of innovative filtration products and solutions, will webcast its second quarter 2024 earnings conference call on Wednesday, February 28, 2024, at 9:00 a.m. CT. WEBCAST: To listen to a live webcast of the call, visit the “Events & Presentations” section of Donaldson’s Investor Relations website at IR.Donaldson.com and click on the “listen to webcast” option.   REPLAY: The webcast replay wil ...

MINNEAPOLIS--(BUSINESS WIRE)--Donaldson Company, Inc. (NYSE: DCI) today announced that its Board of Directors declared a regular cash dividend of 25.0 cents per share. The dividend is payable February 28, 2024, to shareholders of record on February 12, 2024. Donaldson is a member of the S&P High-Yield Dividend Aristocrats Index and calendar year 2023 marked the 28th consecutive year of annual dividend increases. The Company has paid a cash dividend every quarter for 68 years. About Donaldson Company, Inc. ...

Donaldson Company, Inc. (DCI) has been benefiting from its focus on innovation, growth investments and a healthy demand scenario despite softness in the Mobile Solutions segment and rising costs.Let us discuss the factors why investors should retain the stock for the time being.Growth CatalystsBusiness Strength: A diversified business structure with exposure in various geographies and end markets like construction, mining, aerospace, defense, and food & beverage is a boon for the company. Continued strength ...

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FORM 10-Q _____________________________________________________________ (Mark One) UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 FOR THE QUARTERLY PERIOD ENDED OCTOBER 31, 2023 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 FOR THE TRANSITION PERIOD FROM _________________ TO _________________. Commission File Number 1-7891 DONALDSON COMPANY, INC. ...

Financial Data and Key Metrics Changes - Total company sales were $846 million, essentially flat compared to the prior year, with pricing providing an approximate 3% benefit [20][36][56] - Operating income decreased by 2% from the prior year, largely due to ongoing investments in the Life Sciences segment [36] - EPS for the quarter was $0.75, flat year-over-year, as gross margin gains were offset by investments in growth areas [30][36] Business Line Data and Key Metrics Changes - In Mobile Solutions, total sales were $540 million, a 3% decline versus 2023, with pricing adding 3% [20][36] - Life Sciences sales were $60 million, a 4% year-over-year decrease, primarily due to ongoing disk-drive market weakness [22][36] - Industrial Solutions segment had sales increase of 7% to $246 million, with pricing contributing 2% [33][36] Market Data and Key Metrics Changes - The Americas, including the United States and Latin America, continue to show solid performance, while China remains troubled with a 14% sales decline [7][59] - Europe is under closer scrutiny, with a more cautious outlook as conditions develop [8] Company Strategy and Development Direction - The company is focused on executing and growing in its three operating segments while investing in strategic pricing and operational excellence [16][19] - There is a commitment to long-term profitable growth through investments in Life Sciences and other strategic acquisitions [38][46] Management's Comments on Operating Environment and Future Outlook - Management noted that supply chain conditions have improved, allowing a return to a focus on operational excellence [19] - The outlook for total sales growth remains unchanged, with expectations for operating margin and earnings at all-time high levels [23][41] Other Important Information - The company authorized a new share repurchase program allowing for the repurchase of up to 12 million shares [39] - Capital expenditures for the first quarter were approximately $23 million, with a full-year forecast of $95 million to $115 million focused on growth initiatives [64][69] Q&A Session Summary Question: How does the mobile aftermarket business growth look for the year? - Management indicated that the mobile aftermarket is expected to return to solid growth in fiscal Q2, driven by share gains in the independent channel and stabilization in the OEM channel [76] Question: What are the expectations for gross margin moving forward? - Management expects some moderation from the current gross margin of 35.6%, but anticipates year-over-year gross margin improvement throughout the year [78][102] Question: Can you provide an update on the Life Sciences growth forecast? - The Life Sciences segment is expected to achieve approximately 20% growth, driven by geographic expansion and scaling of bioprocessing equipment [41][108]

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 Form 10-K Commission File Number: 1-7891 DONALDSON COMPANY, INC. (Exact name of registrant as specified in its charter) (State or other jurisdiction of incorporation or organization) (I.R.S. Employer Identification No.) 1400 West 94th Street, Minneapolis, Minnesota 55431 Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging g ...

Donaldson Company, Inc. (NYSE:DCI) Q4 2023 Earnings Call Transcript August 29, 2023 10:00 AM ET Company Participants Sarika Dhadwal - Director of IR Tod Carpenter - Chairman, CEO and President Scott Robinson - CFO Conference Call Participants Bryan Blair - Oppenheimer Nathan Jones - Stifel Brian Drab - William Blair Rob Mason - Baird Operator Hello, and thank you for standing by. My name is Regina, and I will be your conference operator today. At this time, I would like to welcome everyone to the Donaldson ...

[PART I. FINANCIAL INFORMATION](index=2&type=section&id=PART%20I.%20FINANCIAL%20INFORMATION) This section provides the unaudited condensed consolidated financial statements and management's discussion and analysis for the specified periods [Item 1. Financial Statements](index=2&type=section&id=Item%201.%20Financial%20Statements) This section presents the unaudited condensed consolidated financial statements for Donaldson Company, Inc. for the three and nine months ended April 30, 2023 [Condensed Consolidated Statements of Earnings](index=2&type=section&id=CONDENSED%20CONSOLIDATED%20STATEMENTS%20OF%20EARNINGS) Net sales and net earnings increased year-over-year for both the three and nine-month periods ended April 30, 2023, driven by pricing and volume growth Consolidated Earnings Summary (YoY) | Metric | Three Months Ended April 30, 2023 | Three Months Ended April 30, 2022 | Nine Months Ended April 30, 2023 | Nine Months Ended April 30, 2022 | | :--- | :--- | :--- | :--- | :--- | | **Net sales** | $875.7M | $853.2M | $2,551.3M | $2,416.6M | | **Gross profit** | $288.8M | $269.0M | $860.5M | $775.8M | | **Operating income** | $124.0M | $111.0M | $359.6M | $314.2M | | **Net earnings** | $93.7M | $83.0M | $266.9M | $231.8M | | **Diluted EPS** | $0.76 | $0.67 | $2.16 | $1.85 | [Condensed Consolidated Statements of Comprehensive Income](index=3&type=section&id=CONDENSED%20CONSOLIDATED%20STATEMENTS%20OF%20COMPREHENSIVE%20INCOME) Comprehensive income significantly increased for both periods, primarily due to favorable foreign currency translation adjustments Comprehensive Income Summary (YoY) | Metric | Three Months Ended April 30, 2023 | Three Months Ended April 30, 2022 | Nine Months Ended April 30, 2023 | Nine Months Ended April 30, 2022 | | :--- | :--- | :--- | :--- | :--- | | **Net earnings** | $93.7M | $83.0M | $266.9M | $231.8M | | **Foreign currency translation gain (loss)** | $1.2M | $(42.8)M | $26.4M | $(70.4)M | | **Comprehensive income** | $94.4M | $40.8M | $293.0M | $167.7M | [Condensed Consolidated Balance Sheets](index=4&type=section&id=CONDENSED%20CONSOLIDATED%20BALANCE%20SHEETS) Total assets increased, while total liabilities decreased, leading to a rise in total stockholders' equity as of April 30, 2023 Balance Sheet Summary | Metric | April 30, 2023 | July 31, 2022 | | :--- | :--- | :--- | | **Total current assets** | $1,352.6M | $1,406.5M | | **Total assets** | $2,675.5M | $2,600.3M | | **Total current liabilities** | $712.0M | $629.6M | | **Total liabilities** | $1,376.8M | $1,467.1M | | **Total stockholders' equity** | $1,298.7M | $1,133.2M | [Condensed Consolidated Statements of Cash Flows](index=5&type=section&id=CONDENSED%20CONSOLIDATED%20STATEMENTS%20OF%20CASH%20FLOWS) Net cash provided by operating activities substantially increased, while cash used in investing and financing activities also rose for the nine months ended April 30, 2023 Cash Flow Summary (Nine Months Ended April 30) | Activity | 2023 | 2022 | | :--- | :--- | :--- | | **Net cash provided by operating activities** | $353.7M | $143.9M | | **Net cash used in investing activities** | $(155.1)M | $(105.8)M | | **Net cash used in financing activities** | $(204.1)M | $(82.8)M | | **Decrease in cash and cash equivalents** | $(7.3)M | $(54.1)M | [Condensed Consolidated Statements of Changes in Stockholders' Equity](index=6&type=section&id=CONDENSED%20CONSOLIDATED%20STATEMENTS%20OF%20CHANGES%20IN%20STOCKHOLDERS'%20EQUITY) Stockholders' equity increased, primarily due to net earnings and other comprehensive income, partially offset by share repurchases and dividends - Key drivers of the change in stockholders' equity for the nine months ended April 30, 2023 include net earnings of **$266.9 million**, offset by **$119.3 million** in treasury stock purchases and **$55.8 million** in dividends[20](index=20&type=chunk) [Notes to Condensed Consolidated Financial Statements](index=7&type=section&id=NOTES%20TO%20CONDENSED%20CONSOLIDATED%20FINANCIAL%20STATEMENTS) This section details accounting policies, segment reporting changes, the acquisition of Isolere Bio, Inc., and share repurchase activities - Effective November 1, 2022, the Company established a new segment reporting structure with three reportable segments: Mobile Solutions, Industrial Solutions, and Life Sciences[22](index=22&type=chunk)[93](index=93&type=chunk) - In Q3 fiscal 2023, the Company acquired Isolere Bio, Inc. for cash consideration of **$62.3 million**, net of cash acquired. Isolere is reported within the Life Sciences segment[29](index=29&type=chunk) - For the nine months ended April 30, 2023, the company repurchased **2.1 million** shares for **$119.3 million**. As of April 30, 2023, authorization remained to repurchase **3.3 million** shares[48](index=48&type=chunk) [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=20&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses the company's financial performance, segment results, liquidity, and capital resources for the three and nine months ended April 30, 2023 [Consolidated Results of Operations](index=21&type=section&id=Consolidated%20Results%20of%20Operations) Consolidated net sales and net earnings grew, with gross margin expansion attributed to pricing actions offsetting inflationary pressures Q3 FY2023 vs Q3 FY2022 Operating Results | Metric | Q3 2023 | Q3 2022 | Change | | :--- | :--- | :--- | :--- | | **Net Sales** | $875.7M | $853.2M | +2.6% | | **Gross Margin** | 33.0% | 31.5% | +1.5 p.p. | | **Operating Income** | $124.0M | $111.0M | +11.7% | | **Net Earnings** | $93.7M | $83.0M | +13.0% | | **Diluted EPS** | $0.76 | $0.67 | +14.0% | Nine Months FY2023 vs FY2022 Operating Results | Metric | 9M 2023 | 9M 2022 | Change | | :--- | :--- | :--- | :--- | | **Net Sales** | $2,551.3M | $2,416.6M | +5.6% | | **Gross Margin** | 33.7% | 32.1% | +1.6 p.p. | | **Operating Income** | $359.6M | $314.2M | +14.5% | | **Net Earnings** | $266.9M | $231.8M | +15.2% | | **Diluted EPS** | $2.16 | $1.85 | +16.9% | - Sales growth was primarily driven by higher pricing, with a negative impact from foreign currency translation of **$23.6 million** in Q3 and **$116.6 million** for the nine-month period[110](index=110&type=chunk)[120](index=120&type=chunk) [Segment Results of Operations](index=24&type=section&id=Segment%20Results%20of%20Operations) Industrial Solutions showed strong growth, Mobile Solutions was flat in Q3 but grew over nine months, and Life Sciences declined due to specific business weaknesses and acquisition impacts Net Sales by Segment (YoY % Change) | Segment | Q3 2023 vs Q3 2022 | 9M 2023 vs 9M 2022 | | :--- | :--- | :--- | | **Mobile Solutions** | -0.1% | +4.9% | | **Industrial Solutions** | +13.8% | +13.6% | | **Life Sciences** | -12.6% | -14.1% | Earnings Before Income Taxes by Segment (YoY % Change) | Segment | Q3 2023 vs Q3 2022 | 9M 2023 vs 9M 2022 | | :--- | :--- | :--- | | **Mobile Solutions** | +4.6% | +18.8% | | **Industrial Solutions** | +43.1% | +54.5% | | **Life Sciences** | -98.6% | -66.1% | - Mobile Solutions' Aftermarket sales decreased in Q3 as large OEM customers normalized inventories, reflecting improving global supply chains[132](index=132&type=chunk) - Life Sciences' earnings decline was driven by lower disk drive sales volumes and the expected initial negative earnings impact from recent acquisitions[146](index=146&type=chunk)[148](index=148&type=chunk) [Liquidity, Capital Resources and Financial Condition](index=27&type=section&id=Liquidity,%20Capital%20Resources%20and%20Financial%20Condition) The company maintained a strong liquidity position with increased cash from operations, reduced debt to capitalization, and improved working capital management - Cash provided by operating activities increased by **$209.8 million** for the nine months ended April 30, 2023, compared to the prior year, primarily due to inventory reduction and higher earnings[151](index=151&type=chunk) - The company repurchased **$119.3 million** of its common stock and paid **$84.1 million** in dividends during the first nine months of fiscal 2023[154](index=154&type=chunk) Working Capital Metrics | Metric | April 30, 2023 | July 31, 2022 | | :--- | :--- | :--- | | **Days sales outstanding** | 61 days | 62 days | | **Days inventory outstanding** | 72 days | 78 days | | **Days payable outstanding** | 47 days | 52 days | [Item 3. Quantitative and Qualitative Disclosures About Market Risk](index=29&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company manages market risks related to foreign currency, interest rates, and commodity prices using derivative instruments - For the nine months ended April 30, 2023, foreign currency translation decreased reported net sales by **$116.6 million** and net earnings by **$14.5 million**[171](index=171&type=chunk) - The company uses foreign currency forward contracts and net investment hedges to manage currency risk. As of April 30, 2023, the total notional amount of designated forward contracts was **$69.3 million**, and net investment hedges was **€80 million**[174](index=174&type=chunk)[175](index=175&type=chunk) - A hypothetical **0.5 percentage point** increase in short-term interest rates would have increased interest expense by approximately **$0.7 million** in the nine months ended April 30, 2023[177](index=177&type=chunk) [Item 4. Controls and Procedures](index=31&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded that disclosure controls and procedures were effective, with no material changes to internal control over financial reporting - The Chief Executive Officer and Chief Financial Officer concluded that the Company's disclosure controls and procedures were effective as of the end of the period covered by this report[182](index=182&type=chunk) - No material changes to the Company's internal control over financial reporting occurred during the fiscal quarter ended April 30, 2023[183](index=183&type=chunk) [PART II. OTHER INFORMATION](index=32&type=section&id=PART%20II.%20OTHER%20INFORMATION) This section covers legal proceedings, risk factors, equity security sales, and a list of exhibits [Item 1. Legal Proceedings](index=32&type=section&id=Item%201.%20Legal%20Proceedings) The company assesses recorded liabilities for claims or litigation as not material to its financial position or results of operations - The Company believes the estimated liability for claims or litigation is adequate and not material to its financial position, results of operations, or liquidity[186](index=186&type=chunk) [Item 1A. Risk Factors](index=32&type=section&id=Item%201A.%20Risk%20Factors) No material changes to the risk factors previously disclosed in the Annual Report on Form 10-K for fiscal year 2022 have occurred - There have been no material changes to the risk factors previously disclosed in the Company's Annual Report on Form 10-K for the fiscal year ended July 31, 2022[187](index=187&type=chunk) [Item 2. Unregistered Sales of Equity Securities and Use of Proceeds](index=32&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) The company repurchased 64,000 shares of common stock in Q3, with remaining authorization for 3.3 million shares Share Repurchases for the Three Months Ended April 30, 2023 | Period | Total Shares Purchased | Average Price Paid per Share | | :--- | :--- | :--- | | **February 2023** | — | $— | | **March 2023** | — | $— | | **April 2023** | 64,000 | $63.66 | | **Total** | **64,000** | **$63.66** | - As of April 30, 2023, the Company had remaining authorization to repurchase **3.3 million** shares under its plan[188](index=188&type=chunk) [Item 6. Exhibits](index=33&type=section&id=Item%206.%20Exhibits) This section lists the exhibits filed with the Form 10-Q, including certifications by the CEO and CFO pursuant to the Sarbanes-Oxley Act and financial data formatted in iXBRL