Donaldson Posts Higher Profit In Q4, Sees Up To 8% Sales Growth In FY15 - Update

(RTTNews) - Filtration systems maker Donaldson Co. Inc. (DCI) Wednesday reported a rise in the fourth-quarter profit, amid 6 percent growth in sales and lower tax rate. The company forecast 4 to 8 percent sales growth for fiscal 2015.

For the fourth quarter ended July 31, the company posted net earnings of $72.96 million, slightly up from $72.61 million in the prior year. On a per share basis, earnings increased to $0.50 from $0.48 per share reported last year.

Excluding special items, net earnings for the recent quarter were $0.51, while the company posted $0.49 per share a year ago.

On average, 11 analysts polled by Thomson Reuters expected earnings per share of $0.47 for the quarter. Analysts' estimates typically exclude one-time items.

Net sales for the quarter grew 6 percent to $668.23 million from $632.59 million a year earlier, while the consensus sales estimate was $654.67 million.

During the quarter, the foreign currency translation impact improved sales by 0.8 percent, and it increased net earnings by 0.5 percent.

According to the firm, its replacement filter sales were strong, with double-digit percent growth in both Engine and Industrial segments. Engine Products' sales increased 6 percent in local currency from last year. Industrial Products' sales were up 3 percent from the year-ago quarter.

Operating margin for the quarter was 14.8 percent, down 100 basis points from the prior year.

Effective tax rate fell to 27.7 percent from 28.2 percent in the same quarter last year.

Looking ahead, for fiscal 2015, the company expects earnings per share to be in the range of $1.81 to $2.01 per share. The company also forecast sales to be between $2.57 billion and $2.67 billion, or an increase of 4 to 8 percent from last year.

For fiscal 2014, Donaldson's sales totaled $2.47 billion.

Analysts forecast annual earnings of $1.93 per share, on revenues of $2.62 billion.

DCI closed Tuesday's trading at $40.69 on the NYSE.