Donaldson Company, Inc. (NYSE: DCI) today reported first quarter 2020 net earnings of $65.0 million, or $0.51 per share,1 compared with $73.8 million, or $0.56 per share, in first quarter 2019. Reports Q1 revenue $672.7M, consensus $699.32M. Donaldson backs FY20 EPS view of $2.21-$2.37, consensus $2.26.
“We are pleased with first quarter’s gross margin performance, and we remain on track to deliver another consecutive year of record profit,” said Tod Carpenter, chairman, president and chief executive officer. “As expected, demand in the first quarter was uneven. The market for new equipment was soft, sales of replacement parts were more stable, and growth businesses like Process Filtration were up notably from last year.
“We expect growth in our ‘Advance and Accelerate’ portfolio will continue to outpace the company average, supported by further investments to gain share, while customer cautiousness combined with peaking levels of equipment production will likely pressure our ‘Critical Core’ portfolio. Increasing gross margin remains our top operational priority, and we are making progress bringing new capacity online and optimizing our supply chain. We are also making progress on our initiatives to drive innovation, including our new Materials Research Center and recently announced commercial launches of connected solutions offerings. We are excited about our opportunities, and I am confident that we are well-positioned to navigate near-term unevenness while strengthening our foundation for long-term, profitable growth.”