Donaldson Company, Inc. (NYSE:DCI) saw shares head earthward Tuesday n the release of first-quarter numbers.
The Minneapolis-based Donaldson reported first-quarter 2020 net earnings of $65.0 million, or $0.51 per share, compared with $73.8 million, or $0.56 per share, in first quarter 2019.
First-quarter 2020 sales declined 4.1% to $672.7 million from $701.4 million in 2019. Factors affecting the year-over-year sales change include: Currency translation negatively impacted sales by approximately 1.4%.
The acquisition of BOFA International Ltd., which was completed in first quarter 2019, contributed an increase of approximately 1.1%, and price increases added approximately 0.6%.
Donaldson’s first-quarter 2020 earnings before interest, taxes, depreciation and amortization rate of sales was 16.7%, compared with 17.1% in 2019
CEO Tod Carpenter, "We are pleased with first quarter’s gross margin performance, and we remain on track to deliver another consecutive year of record profit.
"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."
Shares in DCI flopped $3.18, or 5.8%, to $51.99
