Core Viewpoint - Donaldson Company, Inc. (DCI) is experiencing operational challenges due to weaknesses in both its off-road and on-road businesses, alongside rising expenses that are expected to impact earnings in the near future [1][5][6]. Business Performance - The on-road business has seen a sales decline of 24.4% year-over-year, primarily due to lower global truck production linked to softness in industrial markets [5]. - The off-road business has also been affected, with a sales decline of 12.8% year-over-year, driven by weak agricultural markets and soft global end-market demand [5]. Expense Trends - Selling, general and administrative expenses increased by 1.5% in the second quarter of fiscal 2025, attributed to rising headcount and costs from acquired businesses [6]. - Overall operating expenses rose by 3.9% year-over-year to $369.2 million in the first half of fiscal 2025, with operating expenses as a percentage of total revenues increasing by 30 basis points to 20.9% [6]. Foreign Exchange and Supply Chain Issues - DCI's international operations expose the company to economic, political, and environmental risks, as well as fluctuations in foreign currencies [7]. - Supply-chain disruptions could impact operations, as DCI relies on a variety of raw materials and components, necessitating price adjustments that may affect competitiveness [8].