Donaldson Company, Inc. (NYSE: DCI) shares gloried Tuesday in third-quarter figures.
The Minneapolis-based global leader in the filtration industry with sales, manufacturing and distribution locations around the world, reported third-quarter 2020 net earnings of $63.4 million, or $0.50 per share, compared with third-quarter 2019 net earnings of $75.2 million, or $0.58 per share.
Third-quarter 2020 sales declined 11.7% to $629.7 million from $712.8 million in 2019. Excluding the negative impact from currency translation of approximately 2%, third-quarter 2020 sales declined 9.7% reflecting a broad-based global economic slowdown that is due in large part to the COVID-19 pandemic.
CEO Tod Carpenter, "We are pleased with the volume at the end of April, which resulted in third-quarter sales that were slightly better than we had anticipated, and cost controls throughout the quarter mitigated the profit impact from increasingly soft demand.
"Our teams are acting quickly and decisively to navigate this unprecedented environment, including adjusting production to match demand, adding resources to pursue growth, and maintaining an incredible level of coordination and collaboration within the company and across our valued base of suppliers and customers."
Donaldson’s third quarter 2020 EBITDA as a rate of sales was flat with the prior year at 17.6%. Third-quarter 2020 operating income as a rate of sales decreased to 13.4% from 14% in 2019, including an impact of approximately 0.6 percentage points from higher depreciation and amortization expense related to Donaldson’s capacity expansion and supply chain optimization efforts
DCI shares hiked $2.13, or 4.4%, to $50.09.
