Donaldson Company Issues FY17 Outlook - Quick Facts

(RTTNews) - Donaldson Company, Inc. (DCI) announced it expects full-year 2017 GAAP and adjusted EPS between $1.50 and $1.66. The company expects full-year sales in a range between a 2 percent decline and a 2 percent increase compared with 2016, and the impact on total sales from foreign currency translation is expected to be immaterial.

Donaldson expects full-year 2017 operating margin between 13.3 percent and 13.9 percent and an effective income tax rate between 26.7 percent and 28.7 percent. During fiscal 2017, the company expects to repurchase between 2 percent and 3 percent of its outstanding shares.

Tod Carpenter, president and CEO, stated: "Looking to fiscal 2017, we do not expect overall market conditions to improve meaningfully, so we will continue to press forward where we see opportunity. Across the world, we are actively pursuing growth of our replacement part sales while also remaining focused on winning new first-fit programs for future growth. Through these efforts, and supported by our operational discipline, we expect to translate a relatively flat sales environment into operating profit growth in fiscal 2017."

Donaldson generated fiscal 2016 sales of $2.22 billion, reflecting a year-over-year decline of 6.4 percent. For the full year, constant-currency sales declined 3.2 percent. Full-year 2016 adjusted EPS declined 3.8 percent to $1.52 from $1.58 in 2015.