Second quarter 2022 sales increased 18.2% from 2021 to a quarterly record of $802.5 million
GAAP EPS increased 30.4%; Adjusted EPS increased 9.8%
Donaldson increases fiscal 2022 sales and EPS guidance
MINNEAPOLIS--(BUSINESS WIRE)--Donaldson Company, Inc. (NYSE: DCI) (Donaldson or the Company) today reported second quarter 2022 net earnings of $71.8 million, an increase of 27.7% from $56.2 million in 2021. Earnings per share (EPS)1 for the second quarter 2022 increased 30.4% to $0.57 from $0.44. The prior year EPS includes an impact of approximately $0.08 related to restructuring charges. Excluding this impact, second quarter 2022 EPS increased 9.8% from adjusted EPS2 of $0.52 in 2021. The tables attached to this press release include a reconciliation of measures calculated in accordance with generally accepted accounting principles (GAAP) to non-GAAP measures.
“Second quarter record sales demonstrate the resiliency of our business model, the Donaldson team and our commitment to delivering value to our customers,” said Tod Carpenter, chairman, president and chief executive officer. “Although ongoing inflation and supply chain challenges pressured gross margin more than we expected, we worked to mitigate the impact through our strategic pricing and expense management while continuing to invest for future growth.
“With the first half of the fiscal year behind us and given our expectations for robust sales through the balance of the year, we are increasing our fiscal 2022 sales and earnings guidance. Inflation and supply chain constraints are likely to remain a headwind, however, we expect our second half gross margins to improve sequentially as we realize increased benefits from pricing actions. More broadly, I am confident in the direction Donaldson is heading with our expanded global footprint, commitment to R&D, and integration and scaling of recent and future acquisitions.”
1 All earnings per share figures refer to diluted earnings per share. |
2 Adjusted earnings per share is a non-GAAP financial measure that excludes the impact of certain items not related to ongoing operations. |
Operating Results
Second quarter 2022 sales increased 18.2% to $802.5 million from $679.1 million in 2021, including a negative impact of 2.6 percentage points from currency translation.
|
Three Months Ended |
|
Six Months Ended |
||||||||
|
January 31, 2022 |
|
January 31, 2022 |
||||||||
|
Reported %
|
|
Constant
|
|
Reported %
|
|
Constant
|
||||
Engine Products segment |
|
|
|
|
|
|
|
||||
Off-Road |
22.6 |
% |
|
26.6 |
% |
|
32.8 |
% |
|
35.0 |
% |
On-Road |
(0.7 |
) |
|
1.4 |
|
|
(1.1 |
) |
|
0.1 |
|
Aftermarket |
20.6 |
|
|
22.9 |
|
|
19.4 |
|
|
20.1 |
|
Aerospace and Defense |
29.6 |
|
|
32.1 |
|
|
26.1 |
|
|
27.4 |
|
Total Engine Products segment |
19.8 |
|
|
22.4 |
|
|
20.3 |
|
|
21.4 |
|
|
|
|
|
|
|
|
|
||||
Industrial Products segment |
|
|
|
|
|
|
|
||||
Industrial Filtration Solutions |
14.1 |
|
|
16.7 |
|
|
17.9 |
|
|
18.8 |
|
Gas Turbine Systems |
26.3 |
|
|
27.0 |
|
|
(0.5 |
) |
|
(0.2 |
) |
Special Applications |
9.8 |
|
|
14.8 |
|
|
16.4 |
|
|
19.6 |
|
Total Industrial Products segment |
14.6 |
|
|
17.4 |
|
|
15.5 |
|
|
16.9 |
|
Total Company |
18.2 |
% |
|
20.8 |
% |
|
18.8 |
% |
|
20.0 |
% |
Second quarter 2022 sales in the Engine Products segment (Engine) increased 19.8%, with Aerospace and Defense, Off-Road, and Aftermarket strength partially offset by a slight decrease in On-Road. Aerospace and Defense sales grew 29.6% compared with 2021, as stronger economic conditions in the commercial aerospace industry and market share gains drove results. Off-Road sales increased 22.6% versus the prior year, with growth in all regions as equipment production levels remained high and Exhaust and Emissions program wins in Europe bolstered results. Second quarter 2022 Aftermarket sales rose 20.6%, driven by strong demand across all primary end-markets. On-Road sales, down 0.7% year-over-year, continue to be negatively impacted by a strategic decision to discontinue sales of a low profit product line in the United States.
Second quarter Industrial Products segment (Industrial) sales rose 14.6%, with strong growth in Gas Turbine Systems (GTS) and Industrial Filtration Solutions (IFS). GTS sales increased 26.3% versus the prior year due to timing of project deliveries. IFS sales growth of 14.1% was the result of ongoing momentum in the industrial dust collection business as well as Process Filtration sales performance. Special Applications sales rose 9.8% compared with 2021, with growth in all regions and across the product portfolio.
Second quarter 2022 operating income as a percentage of sales (operating margin) increased to 11.9% from 11.2% in 2021. Second quarter 2021 adjusted operating margin, which excludes the impact of restructuring charges, was 13.4%. Gross margin decreased to 31.1% from 33.2% in the prior year, as inflation headwinds from raw materials, freight and labor costs persisted. Second quarter 2021 adjusted gross margin was 34.0%.
Second quarter 2022 operating expenses as a percentage of sales were 19.2%, an improvement from 22.0% in 2021 due to leverage on higher sales. Prior year adjusted operating expenses as a percentage of sales, which excludes $9.0 million of restructuring charges, was 20.7%.
Second quarter 2022 interest expense was $3.6 million, compared with $3.3 million in the prior year. Other income, net was favorable by $1.3 million versus the prior year, primarily driven by a reduction in donation expense. Second quarter 2022 effective tax rate increased to 24.1% from 23.9% in 2021.
During the second quarter, Donaldson paid dividends of $27.2 million and repurchased approximately 0.2% of its outstanding shares for $12.8 million. Year to date, the Company has paid $54.6 million in dividends and repurchased approximately 1.4% of its outstanding shares for $115.6 million.
Updated Fiscal 2022 Outlook
Donaldson is increasing its fiscal 2022 sales and EPS guidance to reflect a better-than-expected sales outlook given first half performance combined with additional pricing realization planned in the second half of the year. Net sales are projected to increase between 11% and 15% year-over-year, up from previous guidance of 8% to 12%. Currency translation is forecast to negatively impact sales by approximately 2%. Fiscal 2022 GAAP EPS is now expected to be between $2.66 and $2.76, versus a previous range of between $2.57 and $2.73. GAAP and adjusted EPS2 in 2021 were $2.24 and $2.32, respectively.
Fiscal 2022 Engine sales are projected to increase between 12% to 16% compared with 2021 and versus previous guidance of an 8% to 12% increase. Incremental pricing and ongoing demand are expected to drive the overall improvement, particularly in the Aftermarket segment. Aerospace and Defense sales are also projected to increase versus previous expectations due to improved commercial aerospace market conditions and market share gains. Forecasts for Off-Road and On-Road performance are unchanged.
Donaldson Fiscal 2022 Full Year Sales Guidance Ranges | ||||
Engine Products Segment | Current Guidance (March 2, 2022) | Previous Guidance (December 1, 2021) | ||
Off-Road | + high teens (no change) | + high teens | ||
On-Road | - low single-digits (no change) | - low single-digits | ||
Aftermarket | + mid teens | + high single-digits | ||
Aerospace and Defense | + low twenties | + low double-digits | ||
Total Engine Products segment | + 12% to 16% | + 8% to 12% |
Fiscal 2022 Industrial sales are expected to increase between 9% and 13% compared with 2021 and compared with previous guidance of 7% to 11%. Continued momentum in Special Applications is expected to benefit results. IFS and GTS sales are projected to be in line with previous guidance.
Donaldson Fiscal 2022 Full Year Sales Guidance Ranges | ||||
Industrial Products Segment | Current Guidance (March 2, 2022) | Previous Guidance (December 1, 2021) | ||
Industrial Filtration Solutions | + low double-digits (no change) | + low double-digits | ||
Gas Turbine Systems | + high single-digits (no change) | + high single-digits | ||
Special Applications | + mid single-digits | + low single-digits | ||
Total Industrial Products segment | + 9% to 13% | + 7% to 11% |
Fiscal 2022 gross margin is expected to be down between 1 to 1.5 percentage points compared with 2021 and versus the previous forecast of a decrease of 0.5 to 1 percentage point. Inflationary pressures were greater than expected in the first half and are anticipated to continue through the balance of the year.
Fiscal 2022 operating margin is forecast to be between 14.0% and 14.4% compared with previous guidance of between 14.1% and 14.7%. GAAP and adjusted operating margin were 13.5% and 14.0%, respectively, in 2021. Compared with 2021, leverage on higher sales and expense management will drive results.
The Company anticipates fiscal 2022 interest expense of approximately $14.0 million, and other income of between $7.0 million and $11.0 million. Donaldson expects a fiscal 2022 effective income tax rate of between 24% and 26%.
Fiscal 2022 capital expenditures are projected to be between $90.0 million and $110.0 million and free cash flow conversion is expected to be between 70% and 80%. Donaldson anticipates repurchasing approximately 2% of its outstanding shares during fiscal 2022.
The Company will webcast its second quarter 2022 earnings conference call today at 9:00 a.m. CST. To listen to the webcast, visit the “Events & Presentations” section of Donaldson’s Investor Relations website (IR.Donaldson.com), and click on the “listen to webcast” option. The webcast replay will be available at approximately 12:00 p.m. CST today.
Statements in this release regarding future events and expectations, such as forecasts, plans, trends and projections relating to the Company’s business and financial performance, are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 and are identified by words or phrases such as “will likely result,” “are expected to,” “will continue,” “will allow,” “estimate,” “project,” “believe,” “expect,” “anticipate,” “forecast,” “plan” and similar expressions. These forward-looking statements speak only as of the date such statements are made and are subject to risks and uncertainties that could affect the Company’s performance and could cause the Company’s actual results for future periods to differ materially from any opinions or statements expressed. These factors include, but are not limited to, challenges in global operations; impacts of global economic, industrial and political conditions on product demand; impacts from unexpected events, including the COVID-19 pandemic; effects of unavailable raw materials or material cost inflation; inability to attract and retain qualified personnel; inability to meet customer demand; inability to maintain competitive advantages; threats from disruptive technologies; effects of highly competitive markets with pricing pressure; exposure to customer concentration in certain cyclical industries; impairment of intangible assets; inability to manage productivity improvements; inability to maintain an effective system of internal control over financial reporting; vulnerabilities associated with information technology systems and security; inability to protect and enforce intellectual property rights; costs associated with governmental laws and regulations; impacts of foreign currency fluctuations; effects of changes in capital and credit markets; changes in tax laws and tax rates, regulations and results of examinations; and results of execution of any acquisition, divestiture and other strategic transactions strategy. These and other factors are described in Item 1A, “Risk Factors” of the Company’s Annual Report on Form 10-K for the fiscal year ended July 31, 2021. The Company undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise unless required by law. The results presented herein are preliminary, unaudited and subject to revision until the Company files its results with the United States Securities and Exchange Commission on Form 10-Q.
About Donaldson Company
Founded in 1915, Donaldson is a global leader in technology-led filtration products and solutions, serving a broad range of industries and advanced markets. Our diverse, skilled employees at over 140 locations on six continents partner with customers—from small business owners to the world’s biggest OEM brands—to solve complex filtration challenges. Discover how Donaldson is Advancing Filtration for a Cleaner World at www.Donaldson.com.
CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS |
|||||||||||||||||||||
(In millions, except per share amounts) |
|||||||||||||||||||||
(Unaudited) |
|||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
Three Months Ended |
|
Six Months Ended |
||||||||||||||||||
|
January 31, |
|
January 31, |
||||||||||||||||||
|
2022 |
|
2021 |
|
Change |
|
2022 |
|
2021 |
|
Change |
||||||||||
Net sales |
$ |
802.5 |
|
|
$ |
679.1 |
|
|
18.2 |
% |
|
$ |
1,563.4 |
|
|
$ |
1,315.8 |
|
|
18.8 |
% |
Cost of sales |
|
552.7 |
|
|
|
453.8 |
|
|
21.8 |
|
|
|
1,056.6 |
|
|
|
867.8 |
|
|
21.8 |
|
Gross profit |
|
249.8 |
|
|
|
225.3 |
|
|
10.9 |
|
|
|
506.8 |
|
|
|
448.0 |
|
|
13.1 |
|
Operating expenses |
|
154.1 |
|
|
|
149.2 |
|
|
3.2 |
|
|
|
303.6 |
|
|
|
284.7 |
|
|
6.6 |
|
Operating income |
|
95.7 |
|
|
|
76.1 |
|
|
25.8 |
|
|
|
203.2 |
|
|
|
163.3 |
|
|
24.4 |
|
Interest expense |
|
3.6 |
|
|
|
3.3 |
|
|
10.6 |
|
|
|
7.1 |
|
|
|
6.8 |
|
|
4.2 |
|
Other (income) expense, net |
|
(2.4 |
) |
|
|
(1.1 |
) |
|
121.3 |
|
|
|
(2.4 |
) |
|
|
0.4 |
|
|
(786.5 |
) |
Earnings before income taxes |
|
94.5 |
|
|
|
73.9 |
|
|
27.9 |
|
|
|
198.5 |
|
|
|
156.1 |
|
|
27.1 |
|
Income taxes |
|
22.7 |
|
|
|
17.7 |
|
|
28.7 |
|
|
|
49.7 |
|
|
|
38.0 |
|
|
30.9 |
|
Net earnings |
$ |
71.8 |
|
|
$ |
56.2 |
|
|
27.7 |
% |
|
$ |
148.8 |
|
|
$ |
118.1 |
|
|
25.9 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Weighted average shares – basic |
|
123.9 |
|
|
|
126.6 |
|
|
(2.2 |
) % |
|
|
124.1 |
|
|
|
126.7 |
|
|
(2.1 |
) % |
Weighted average shares – diluted |
|
125.6 |
|
|
|
128.2 |
|
|
(2.1 |
) % |
|
|
126.0 |
|
|
|
128.2 |
|
|
(1.7 |
) % |
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Net earnings per share – basic |
$ |
0.58 |
|
|
$ |
0.44 |
|
|
30.5 |
% |
|
$ |
1.20 |
|
|
$ |
0.93 |
|
|
28.6 |
% |
Net earnings per share – diluted |
$ |
0.57 |
|
|
$ |
0.44 |
|
|
30.4 |
% |
|
$ |
1.18 |
|
|
$ |
0.92 |
|
|
28.1 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Dividends paid per share |
$ |
0.22 |
|
|
$ |
0.21 |
|
|
4.8 |
% |
|
$ |
0.44 |
|
|
$ |
0.42 |
|
|
4.8 |
% |
Note: Amounts may not foot due to rounding. |
CONDENSED CONSOLIDATED BALANCE SHEETS |
|||||||
(In millions) |
|||||||
(Unaudited) |
|||||||
|
|
|
|
||||
|
January 31, |
|
July 31, |
||||
|
2022 |
|
2021 |
||||
Assets |
|
|
|
||||
Current assets: |
|
|
|
||||
Cash and cash equivalents |
$ |
170.4 |
|
|
$ |
222.8 |
|
Accounts receivable, net |
|
553.4 |
|
|
|
552.7 |
|
Inventories, net |
|
480.7 |
|
|
|
384.5 |
|
Prepaid expenses and other current assets |
|
109.7 |
|
|
|
84.0 |
|
Total current assets |
|
1,314.2 |
|
|
|
1,244.0 |
|
Property, plant and equipment, net |
|
601.0 |
|
|
|
617.8 |
|
Goodwill |
|
344.3 |
|
|
|
322.5 |
|
Intangible assets, net |
|
79.4 |
|
|
|
61.6 |
|
Other long-term assets |
|
152.4 |
|
|
|
154.3 |
|
Total assets |
$ |
2,491.3 |
|
|
$ |
2,400.2 |
|
|
|
|
|
||||
Liabilities and Stockholders’ Equity |
|
|
|
||||
Current liabilities: |
|
|
|
||||
Short-term borrowings |
$ |
63.9 |
|
|
$ |
48.5 |
|
Accounts payable |
|
324.5 |
|
|
|
293.9 |
|
Accrued employee compensation and related taxes |
|
89.6 |
|
|
|
126.8 |
|
Income taxes payable |
|
28.9 |
|
|
|
17.7 |
|
Dividends payable |
|
27.3 |
|
|
|
27.6 |
|
Other current liabilities |
|
104.3 |
|
|
|
92.1 |
|
Total current liabilities |
|
638.5 |
|
|
|
606.6 |
|
Long-term debt |
|
553.9 |
|
|
|
461.0 |
|
Non-current income taxes payable |
|
74.4 |
|
|
|
80.7 |
|
Deferred income taxes |
|
30.6 |
|
|
|
26.6 |
|
Other long-term liabilities |
|
77.1 |
|
|
|
88.2 |
|
Total liabilities |
|
1,374.5 |
|
|
|
1,263.1 |
|
|
|
|
|
||||
Total stockholders’ equity |
|
1,116.8 |
|
|
|
1,137.1 |
|
Total liabilities and stockholders’ equity |
$ |
2,491.3 |
|
|
$ |
2,400.2 |
|
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS |
|||||||
(In millions) |
|||||||
(Unaudited) |
|||||||
|
|
|
|
||||
|
Six Months Ended |
||||||
|
January 31, |
||||||
|
2022 |
|
2021 |
||||
Operating Activities |
|
|
|
||||
Net earnings |
$ |
148.8 |
|
|
$ |
118.1 |
|
Adjustments to reconcile net earnings to net cash provided by operating activities: |
|
|
|
||||
Depreciation and amortization |
|
47.5 |
|
|
|
46.6 |
|
Deferred income taxes |
|
1.2 |
|
|
|
(7.0 |
) |
Stock-based compensation expense |
|
13.4 |
|
|
|
10.2 |
|
Other, net |
|
6.5 |
|
|
|
13.5 |
|
Changes in operating assets and liabilities |
|
(137.6 |
) |
|
|
20.9 |
|
Net cash provided by operating activities |
|
79.8 |
|
|
|
202.3 |
|
|
|
|
|
||||
Investing Activities |
|
|
|
||||
Purchases of property, plant and equipment |
|
(33.5 |
) |
|
|
(30.4 |
) |
Acquisitions, net of cash acquired |
|
(49.0 |
) |
|
|
— |
|
Net cash used in investing activities |
|
(82.5 |
) |
|
|
(30.4 |
) |
|
|
|
|
||||
Financing Activities |
|
|
|
||||
Proceeds from long-term debt |
|
174.3 |
|
|
|
— |
|
Repayments of long-term debt |
|
(75.0 |
) |
|
|
(125.0 |
) |
Change in short-term borrowings |
|
15.9 |
|
|
|
13.0 |
|
Purchase of non-controlling interests |
|
— |
|
|
|
(14.4 |
) |
Purchase of treasury stock |
|
(115.6 |
) |
|
|
(46.3 |
) |
Dividends paid |
|
(54.6 |
) |
|
|
(53.1 |
) |
Tax withholding for stock compensation transactions |
|
(1.2 |
) |
|
|
(3.5 |
) |
Exercise of stock options |
|
10.5 |
|
|
|
18.7 |
|
Net cash used in financing activities |
|
(45.7 |
) |
|
|
(210.6 |
) |
Effect of exchange rate changes on cash |
|
(4.0 |
) |
|
|
9.4 |
|
Decrease in cash and cash equivalents |
|
(52.4 |
) |
|
|
(29.3 |
) |
Cash and cash equivalents, beginning of period |
|
222.8 |
|
|
|
236.6 |
|
Cash and cash equivalents, end of period |
$ |
170.4 |
|
|
$ |
207.3 |
|
CONSOLIDATED RATE ANALYSIS |
|||||||||||
(Unaudited) |
|||||||||||
|
|
|
|
|
|
|
|
||||
|
Three Months Ended |
Six Months Ended |
|||||||||
|
January 31, |
January 31, |
|||||||||
|
2022 |
|
2021 |
|
2022 |
|
2021 |
||||
Gross margin |
31.1 |
% |
|
33.2 |
% |
|
32.4 |
% |
|
34.0 |
% |
Operating expenses |
19.2 |
% |
|
22.0 |
% |
|
19.4 |
% |
|
21.6 |
% |
Operating margin |
11.9 |
% |
|
11.2 |
% |
|
13.0 |
% |
|
12.4 |
% |
Other (income) expense, net |
(0.3 |
) % |
|
(0.2 |
) % |
|
(0.2 |
) % |
|
— |
% |
Depreciation and amortization |
2.9 |
% |
|
3.4 |
% |
|
3.0 |
% |
|
3.5 |
% |
EBITDA |
15.2 |
% |
|
14.8 |
% |
|
16.2 |
% |
|
15.9 |
% |
Effective tax rate |
24.1 |
% |
|
23.9 |
% |
|
25.0 |
% |
|
24.3 |
% |
Earnings before income taxes - Engine Products |
11.7 |
% |
|
13.3 |
% |
|
12.7 |
% |
|
13.5 |
% |
Earnings before income taxes - Industrial Products |
15.1 |
% |
|
11.9 |
% |
|
15.7 |
% |
|
12.8 |
% |
Cash conversion ratio |
30.2 |
% |
|
109.9 |
% |
|
31.0 |
% |
|
145.4 |
% |
|
|
|
|
|
|
|
|
||||
|
Three Months Ended |
Six Months Ended |
|||||||||
|
January 31, |
January 31, |
|||||||||
|
2022 |
|
2021 |
|
2022 |
|
2021 |
||||
Adjusted Rates |
|
|
|
|
|
|
|
||||
Gross margin |
31.1 |
% |
|
34.0 |
% |
|
32.4 |
% |
|
34.5 |
% |
Operating expenses |
19.2 |
% |
|
20.7 |
% |
|
19.4 |
% |
|
21.0 |
% |
Operating margin |
11.9 |
% |
|
13.4 |
% |
|
13.0 |
% |
|
13.5 |
% |
Other (income) expense, net |
(0.3 |
) % |
|
(0.2 |
) % |
|
(0.2 |
) % |
|
— |
% |
Depreciation and amortization |
2.9 |
% |
|
3.4 |
% |
|
3.0 |
% |
|
3.5 |
% |
EBITDA |
15.2 |
% |
|
17.0 |
% |
|
16.2 |
% |
|
17.0 |
% |
Effective tax rate |
24.1 |
% |
|
24.7 |
% |
|
25.0 |
% |
|
24.7 |
% |
Earnings before income taxes - Engine Products |
11.7 |
% |
|
13.8 |
% |
|
12.7 |
% |
|
13.8 |
% |
Earnings before income taxes - Industrial Products |
15.1 |
% |
|
14.8 |
% |
|
15.7 |
% |
|
14.3 |
% |
Cash conversion ratio |
30.2 |
% |
|
92.5 |
% |
|
31.0 |
% |
|
133.6 |
% |
Note: Rate analysis metrics are computed by dividing the applicable amount by net sales, and cash conversion ratio reflects free cash flow divided by net earnings. Adjusted rates exclude the impact of restructuring charges. Adjusted rates are non-GAAP measures; see the Reconciliation of Non-GAAP Financial Measures schedule for additional information. |
SEGMENT DETAIL |
|||||||||||||||||||||
(In millions) |
|||||||||||||||||||||
(Unaudited) |
|||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
Three Months Ended January 31, |
|
Six Months Ended January 31, |
||||||||||||||||||
|
2022 |
|
2021 |
|
Change |
|
2022 |
|
2021 |
|
Change |
||||||||||
Net sales |
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Engine Products segment |
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Off-Road |
$ |
95.5 |
|
|
$ |
77.9 |
|
|
22.6 |
% |
|
$ |
189.4 |
|
|
$ |
142.6 |
|
|
32.8 |
% |
On-Road |
|
33.1 |
|
|
|
33.4 |
|
|
(0.7 |
) |
|
|
64.6 |
|
|
|
65.3 |
|
|
(1.1 |
) |
Aftermarket |
|
398.4 |
|
|
|
330.2 |
|
|
20.6 |
|
|
|
772.7 |
|
|
|
647.4 |
|
|
19.4 |
|
Aerospace and Defense |
|
27.1 |
|
|
|
20.9 |
|
|
29.6 |
|
|
|
54.6 |
|
|
|
43.3 |
|
|
26.1 |
|
Total Engine Products segment |
|
554.1 |
|
|
|
462.4 |
|
|
19.8 |
|
|
|
1,081.3 |
|
|
|
898.6 |
|
|
20.3 |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Industrial Products segment |
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Industrial Filtration Solutions |
|
171.2 |
|
|
|
149.9 |
|
|
14.1 |
|
|
|
336.7 |
|
|
|
285.6 |
|
|
17.9 |
|
Gas Turbine Systems |
|
29.6 |
|
|
|
23.4 |
|
|
26.3 |
|
|
|
46.2 |
|
|
|
46.4 |
|
|
(0.5 |
) |
Special Applications |
|
47.6 |
|
|
|
43.4 |
|
|
9.8 |
|
|
|
99.2 |
|
|
|
85.2 |
|
|
16.4 |
|
Total Industrial Products segment |
|
248.4 |
|
|
|
216.7 |
|
|
14.6 |
|
|
|
482.1 |
|
|
|
417.2 |
|
|
15.5 |
|
Total Company |
$ |
802.5 |
|
|
$ |
679.1 |
|
|
18.2 |
% |
|
$ |
1,563.4 |
|
|
$ |
1,315.8 |
|
|
18.8 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Earnings before income taxes |
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Engine Products segment |
$ |
65.0 |
|
|
$ |
61.3 |
|
|
6.0 |
% |
|
$ |
137.3 |
|
|
$ |
121.7 |
|
|
12.8 |
% |
Industrial Products segment |
|
37.5 |
|
|
|
25.8 |
|
|
45.3 |
|
|
|
75.8 |
|
|
|
53.3 |
|
|
42.2 |
|
Corporate and unallocated |
|
(8.0 |
) |
|
|
(13.2 |
) |
|
39.4 |
|
|
|
(14.6 |
) |
|
|
(18.9 |
) |
|
22.8 |
|
Total Company |
$ |
94.5 |
|
|
$ |
73.9 |
|
|
27.9 |
% |
|
$ |
198.5 |
|
|
$ |
156.1 |
|
|
27.1 |
% |
Earnings before income taxes percentage |
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Engine Products segment |
|
11.7 |
% |
|
|
13.3 |
% |
|
(1.6 |
) % |
|
|
12.7 |
% |
|
|
13.5 |
% |
|
(0.8 |
) % |
Industrial Products segment |
|
15.1 |
% |
|
|
11.9 |
% |
|
3.2 |
% |
|
|
15.7 |
% |
|
|
12.8 |
% |
|
2.9 |
% |
Note: Earnings before income taxes percentage is calculated by dividing earnings before income taxes by net sales. Amounts may not foot due to rounding. |
SEGMENT SALES PERCENT CHANGE FROM PRIOR PERIODS BY GEOGRAPHY, AS REPORTED |
||||||||||||||
(Unaudited) |
||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||
|
Three Months Ended January 31, 2022 |
|||||||||||||
|
TOTAL |
|
U.S.(1)/CA(2) |
|
EMEA(3) |
|
APAC(4) |
|
LATAM(5) |
|||||
Engine Products segment |
|
|
|
|
|
|
|
|
|
|||||
Off-Road |
22.6 |
% |
|
24.2 |
% |
|
36.7 |
% |
|
0.8 |
% |
|
83.9 |
% |
On-Road |
(0.7 |
) |
|
(6.6 |
) |
|
(14.1 |
) |
|
13.8 |
|
|
79.1 |
|
Aftermarket |
20.6 |
|
|
27.5 |
|
|
18.8 |
|
|
4.3 |
|
|
26.9 |
|
Aerospace and Defense |
29.6 |
|
|
16.4 |
|
|
70.0 |
|
|
37.5 |
|
|
N/A |
|
Total Engine Products segment |
19.8 |
|
|
22.7 |
|
|
23.6 |
|
|
4.5 |
|
|
29.3 |
|
|
|
|
|
|
|
|
|
|
|
|||||
Industrial Products segment |
|
|
|
|
|
|
|
|
|
|||||
Industrial Filtration Solutions |
14.1 |
|
|
21.1 |
|
|
13.9 |
|
|
2.6 |
|
|
17.0 |
|
Gas Turbine Systems |
26.3 |
|
|
20.7 |
|
|
30.1 |
|
|
82.1 |
|
|
(22.6 |
) |
Special Applications |
9.8 |
|
|
40.3 |
|
|
2.7 |
|
|
7.8 |
|
|
46.9 |
|
Total Industrial Products segment |
14.6 |
|
|
22.2 |
|
|
14.7 |
|
|
7.0 |
|
|
11.1 |
|
Total Company |
18.2 |
% |
|
22.6 |
% |
|
20.2 |
% |
|
5.5 |
% |
|
26.9 |
% |
|
|
|
|
|
|
|
|
|
|
|||||
|
Six Months Ended January 31, 2022 |
|||||||||||||
|
TOTAL |
|
US/CA |
|
EMEA |
|
APAC |
|
LATAM |
|||||
Engine Products segment |
|
|
|
|
|
|
|
|
|
|||||
Off-Road |
32.8 |
% |
|
31.5 |
% |
|
53.8 |
% |
|
7.1 |
% |
|
82.0 |
% |
On-Road |
(1.1 |
) |
|
(10.0 |
) |
|
(6.5 |
) |
|
16.0 |
|
|
131.9 |
|
Aftermarket |
19.4 |
|
|
22.5 |
|
|
19.5 |
|
|
6.0 |
|
|
28.0 |
|
Aerospace and Defense |
26.1 |
|
|
22.4 |
|
|
36.7 |
|
|
44.1 |
|
|
N/A |
|
Total Engine Products segment |
20.3 |
|
|
20.3 |
|
|
26.2 |
|
|
7.3 |
|
|
30.6 |
|
|
|
|
|
|
|
|
|
|
|
|||||
Industrial Products segment |
|
|
|
|
|
|
|
|
|
|||||
Industrial Filtration Solutions |
17.9 |
|
|
28.6 |
|
|
11.8 |
|
|
9.7 |
|
|
27.5 |
|
Gas Turbine Systems |
(0.5 |
) |
|
(0.5 |
) |
|
1.1 |
|
|
(8.7 |
) |
|
6.4 |
|
Special Applications |
16.4 |
|
|
26.5 |
|
|
8.7 |
|
|
16.8 |
|
|
135.5 |
|
Total Industrial Products segment |
15.5 |
|
|
23.8 |
|
|
10.1 |
|
|
12.4 |
|
|
25.6 |
|
Total Company |
18.8 |
% |
|
21.2 |
% |
|
19.9 |
% |
|
9.3 |
% |
|
30.0 |
% |
Note: Amounts may not foot due to rounding.
|
(1) United States (U.S.) |
(2) Canada (CA) |
(3) Europe, Middle East and Africa (EMEA) |
(4) Asia Pacific (APAC) |
(5) Latin America (LATAM) |
SEGMENT SALES PERCENT CHANGE FROM PRIOR PERIODS BY GEOGRAPHY, CONSTANT CURRENCY |
||||||||||||||
(Unaudited) |
||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||
|
Three Months Ended January 31, 2022 |
|||||||||||||
|
TOTAL |
|
US/CA |
|
EMEA |
|
APAC |
|
LATAM |
|||||
Engine Products segment |
|
|
|
|
|
|
|
|
|
|||||
Off-Road |
26.6 |
% |
|
24.2 |
% |
|
44.9 |
% |
|
4.0 |
% |
|
90.0 |
% |
On-Road |
1.4 |
|
|
(6.6 |
) |
|
(10.7 |
) |
|
19.4 |
|
|
84.2 |
|
Aftermarket |
22.9 |
|
|
27.5 |
|
|
24.3 |
|
|
7.0 |
|
|
29.1 |
|
Aerospace and Defense |
32.1 |
|
|
16.4 |
|
|
79.4 |
|
|
48.2 |
|
|
N/A |
|
Total Engine Products segment |
22.4 |
|
|
22.7 |
|
|
29.8 |
|
|
7.6 |
|
|
31.6 |
|
|
|
|
|
|
|
|
|
|
|
|||||
Industrial Products segment |
|
|
|
|
|
|
|
|
|
|||||
Industrial Filtration Solutions |
16.7 |
|
|
21.1 |
|
|
19.1 |
|
|
4.4 |
|
|
18.1 |
|
Gas Turbine Systems |
27.0 |
|
|
20.7 |
|
|
31.1 |
|
|
86.7 |
|
|
(22.6 |
) |
Special Applications |
14.8 |
|
|
40.3 |
|
|
7.0 |
|
|
13.6 |
|
|
46.9 |
|
Total Industrial Products segment |
17.4 |
|
|
22.2 |
|
|
19.4 |
|
|
10.8 |
|
|
12.0 |
|
Total Company |
20.8 |
% |
|
22.6 |
% |
|
25.7 |
% |
|
8.9 |
% |
|
29.0 |
% |
|
|
|
|
|
|
|
|
|
|
|||||
|
Six Months Ended January 31, 2022 |
|||||||||||||
|
TOTAL |
|
US/CA |
|
EMEA |
|
APAC |
|
LATAM |
|||||
Engine Products segment |
|
|
|
|
|
|
|
|
|
|||||
Off-Road |
35.0 |
% |
|
31.5 |
% |
|
58.9 |
% |
|
8.9 |
% |
|
83.7 |
% |
On-Road |
0.1 |
|
|
(10.0 |
) |
|
(5.7 |
) |
|
20.2 |
|
|
133.1 |
|
Aftermarket |
20.1 |
|
|
22.5 |
|
|
21.2 |
|
|
6.8 |
|
|
28.9 |
|
Aerospace and Defense |
27.4 |
|
|
22.4 |
|
|
41.7 |
|
|
51.3 |
|
|
N/A |
|
Total Engine Products segment |
21.4 |
|
|
20.3 |
|
|
28.7 |
|
|
8.7 |
|
|
31.5 |
|
|
|
|
|
|
|
|
|
|
|
|||||
Industrial Products segment |
|
|
|
|
|
|
|
|
|
|||||
Industrial Filtration Solutions |
18.8 |
|
|
28.6 |
|
|
14.0 |
|
|
9.9 |
|
|
27.8 |
|
Gas Turbine Systems |
(0.2 |
) |
|
(0.5 |
) |
|
1.7 |
|
|
(8.1 |
) |
|
6.4 |
|
Special Applications |
19.6 |
|
|
26.5 |
|
|
10.2 |
|
|
20.9 |
|
|
135.5 |
|
Total Industrial Products segment |
16.9 |
|
|
23.8 |
|
|
12.1 |
|
|
14.5 |
|
|
25.9 |
|
Total Company |
20.0 |
% |
|
21.2 |
% |
|
22.2 |
% |
|
11.0 |
% |
|
30.8 |
% |
Note: The constant currency presentation, which is a non-GAAP measure, excludes the impact of fluctuations in foreign currency exchange rates. The Company believes providing constant currency information provides valuable supplemental information regarding its results of operations. The Company calculates constant currency percentages by converting its current period local currency financial results using the prior period exchanges rates and compared these adjusted amounts to its prior period reported results. Amounts may not foot due to rounding. |
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES |
|||||||||||||||
(In millions, except per share amounts) |
|||||||||||||||
(Unaudited) |
|||||||||||||||
|
Three Months Ended |
|
Six Months Ended |
||||||||||||
|
January 31, |
|
January 31, |
||||||||||||
|
2022 |
|
2021 |
|
2022 |
|
2021 |
||||||||
Net cash provided by operating activities |
$ |
36.9 |
|
|
$ |
73.4 |
|
|
$ |
79.8 |
|
|
$ |
202.3 |
|
Net capital expenditures |
|
(15.2 |
) |
|
|
(11.6 |
) |
|
|
(33.5 |
) |
|
|
(30.4 |
) |
Free cash flow |
$ |
21.7 |
|
|
$ |
61.8 |
|
|
$ |
46.3 |
|
|
$ |
171.9 |
|
|
|
|
|
|
|
|
|
||||||||
Net earnings |
$ |
71.8 |
|
|
$ |
56.2 |
|
|
$ |
148.8 |
|
|
$ |
118.1 |
|
Income taxes |
|
22.7 |
|
|
|
17.7 |
|
|
|
49.7 |
|
|
|
38.0 |
|
Interest expense |
|
3.6 |
|
|
|
3.3 |
|
|
|
7.1 |
|
|
|
6.8 |
|
Depreciation and amortization |
|
23.6 |
|
|
|
23.3 |
|
|
|
47.5 |
|
|
|
46.6 |
|
EBITDA |
$ |
121.7 |
|
|
$ |
100.5 |
|
|
$ |
253.1 |
|
|
$ |
209.5 |
|
|
|
|
|
|
|
|
|
||||||||
Adjusted net earnings |
$ |
71.8 |
|
|
$ |
66.8 |
|
|
$ |
148.8 |
|
|
$ |
128.7 |
|
Adjusted income taxes |
|
22.7 |
|
|
|
21.9 |
|
|
|
49.7 |
|
|
|
42.2 |
|
Interest expense |
|
3.6 |
|
|
|
3.3 |
|
|
|
7.1 |
|
|
|
6.8 |
|
Depreciation and amortization |
|
23.6 |
|
|
|
23.3 |
|
|
|
47.5 |
|
|
|
46.6 |
|
Adjusted EBITDA |
$ |
121.7 |
|
|
$ |
115.3 |
|
|
$ |
253.1 |
|
|
$ |
224.3 |
|
|
|
|
|
|
|
|
|
||||||||
Gross profit |
$ |
249.8 |
|
|
$ |
225.3 |
|
|
$ |
506.8 |
|
|
$ |
448.0 |
|
Restructuring charges |
|
— |
|
|
|
5.8 |
|
|
|
— |
|
|
|
5.8 |
|
Adjusted gross profit |
$ |
249.8 |
|
|
$ |
231.1 |
|
|
$ |
506.8 |
|
|
$ |
453.8 |
|
|
|
|
|
|
|
|
|
||||||||
Operating expense |
$ |
154.1 |
|
|
$ |
149.2 |
|
|
$ |
303.6 |
|
|
$ |
284.7 |
|
Restructuring charges |
|
— |
|
|
|
9.0 |
|
|
|
— |
|
|
|
9.0 |
|
Adjusted operating expense |
$ |
154.1 |
|
|
$ |
140.2 |
|
|
$ |
303.6 |
|
|
$ |
275.7 |
|
|
|
|
|
|
|
|
|
||||||||
Operating income |
$ |
95.7 |
|
|
$ |
76.1 |
|
|
$ |
203.2 |
|
|
$ |
163.3 |
|
Restructuring charges |
|
— |
|
|
|
14.8 |
|
|
|
— |
|
|
|
14.8 |
|
Adjusted operating income |
$ |
95.7 |
|
|
$ |
90.9 |
|
|
$ |
203.2 |
|
|
$ |
178.1 |
|
|
|
|
|
|
|
|
|
||||||||
Net earnings |
$ |
71.8 |
|
|
$ |
56.2 |
|
|
$ |
148.8 |
|
|
$ |
118.1 |
|
Restructuring charges, net of tax |
|
— |
|
|
|
10.6 |
|
|
|
— |
|
|
|
10.6 |
|
Adjusted net earnings |
$ |
71.8 |
|
|
$ |
66.8 |
|
|
$ |
148.8 |
|
|
$ |
128.7 |
|
|
|
|
|
|
|
|
|
||||||||
Diluted earnings per share |
$ |
0.57 |
|
|
$ |
0.44 |
|
|
$ |
1.18 |
|
|
$ |
0.92 |
|
Restructuring charges per share |
|
— |
|
|
|
0.08 |
|
|
|
— |
|
|
|
0.08 |
|
Adjusted diluted earnings per share |
$ |
0.57 |
|
|
$ |
0.52 |
|
|
$ |
1.18 |
|
|
$ |
1.00 |
|
Note: Although free cash flow, EBITDA, adjusted EBITDA, adjusted gross profit, adjusted operating expense, adjusted operating income, adjusted net earnings and adjusted diluted EPS are not measures of financial performance under GAAP, the Company believes they are useful in understanding its financial results. Free cash flow is a commonly used measure of a company’s ability to generate cash in excess of its operating needs. EBITDA is a commonly used measure of operating earnings less non-cash expenses. The adjusted basis presentation excludes the impact of certain matters not related to the Company’s ongoing operations. Management believes that the adjusted basis presentation reflects management’s performance in operating the Company and provides a meaningful representation of the performance of the Company’s core business and is useful to understanding its financial results. A shortcoming of these financial measures is that they do not reflect the Company’s actual results under GAAP. Management does not intend these items to be considered in isolation or as a substitute for the related GAAP measures. Amounts may not foot due to rounding. |
Продажи во втором квартале 2022 года выросли на 18,2% по сравнению с 2021 годом до квартального рекорда в 802,5 млн долларов.
GAAP EPS увеличилась на 30,4%; Скорректированная прибыль на акцию увеличилась на 9,8%
Дональдсон увеличивает продажи на 2022 финансовый год и прогнозирует прибыль на акцию
МИННЕАПОЛИС – (BUSINESS WIRE) – Donaldson Company, Inc. (NYSE: DCI) (Donaldson or the Company) сегодня сообщила о чистой прибыли за второй квартал 2022 года в размере 71,8 млн долларов, что на 27,7% больше, чем 56,2 млн долларов в 2021 году. Прибыль на акцию ( EPS)1 за второй квартал 2022 года увеличился на 30,4% до 0,57 доллара с 0,44 доллара. Прибыль на акцию за предыдущий год включает влияние затрат на реструктуризацию в размере примерно 0,08 доллара США. Если исключить это влияние, прибыль на акцию во втором квартале 2022 года увеличилась на 9,8% по сравнению с скорректированной прибылью на акцию 2, равной 0,52 доллара США в 2021 году. Таблицы, прилагаемые к настоящему пресс-релизу, включают сверку показателей, рассчитанных в соответствии с общепринятыми принципами бухгалтерского учета (GAAP), с показателями, не предусмотренными GAAP.
«Рекордные продажи во втором квартале демонстрируют устойчивость нашей бизнес-модели, команды Дональдсона и нашего стремления приносить пользу нашим клиентам», — сказал Тод Карпентер, председатель, президент и главный исполнительный директор. «Несмотря на то, что продолжающаяся инфляция и проблемы с цепочками поставок оказали большее давление на валовую прибыль, чем мы ожидали, мы работали над смягчением последствий с помощью нашего стратегического ценообразования и управления расходами, продолжая инвестировать в будущий рост.
«Поскольку первая половина финансового года позади и с учетом наших ожиданий высоких продаж в течение года, мы повышаем наш прогноз продаж и прибыли на 2022 финансовый год. Инфляция и ограничения цепочки поставок, вероятно, останутся встречным ветром, однако мы ожидаем, что наша валовая прибыль во втором полугодии будет последовательно улучшаться по мере того, как мы осознаем увеличение выгод от ценовых действий. В более широком смысле я уверен в том направлении, в котором движется Дональдсон благодаря нашему расширению глобального присутствия, приверженности исследованиям и разработкам, а также интеграции и масштабированию недавних и будущих приобретений».
1 All earnings per share figures refer to diluted earnings per share. |
2 Adjusted earnings per share is a non-GAAP financial measure that excludes the impact of certain items not related to ongoing operations. |
Операционные результаты
Продажи во втором квартале 2022 года выросли на 18,2% до 802,5 млн долларов с 679,1 млн долларов в 2021 году, включая негативное влияние пересчета валюты на 2,6 процентных пункта.
|
Three Months Ended |
|
Six Months Ended |
||||||||
|
January 31, 2022 |
|
January 31, 2022 |
||||||||
|
Reported %
|
|
Constant
|
|
Reported %
|
|
Constant
|
||||
Engine Products segment |
|
|
|
|
|
|
|
||||
Off-Road |
22.6 |
% |
|
26.6 |
% |
|
32.8 |
% |
|
35.0 |
% |
On-Road |
(0.7 |
) |
|
1.4 |
|
|
(1.1 |
) |
|
0.1 |
|
Aftermarket |
20.6 |
|
|
22.9 |
|
|
19.4 |
|
|
20.1 |
|
Aerospace and Defense |
29.6 |
|
|
32.1 |
|
|
26.1 |
|
|
27.4 |
|
Total Engine Products segment |
19.8 |
|
|
22.4 |
|
|
20.3 |
|
|
21.4 |
|
|
|
|
|
|
|
|
|
||||
Industrial Products segment |
|
|
|
|
|
|
|
||||
Industrial Filtration Solutions |
14.1 |
|
|
16.7 |
|
|
17.9 |
|
|
18.8 |
|
Gas Turbine Systems |
26.3 |
|
|
27.0 |
|
|
(0.5 |
) |
|
(0.2 |
) |
Special Applications |
9.8 |
|
|
14.8 |
|
|
16.4 |
|
|
19.6 |
|
Total Industrial Products segment |
14.6 |
|
|
17.4 |
|
|
15.5 |
|
|
16.9 |
|
Total Company |
18.2 |
% |
|
20.8 |
% |
|
18.8 |
% |
|
20.0 |
% |
Продажи во втором квартале 2022 года в сегменте продукции для двигателей (Двигатели) выросли на 19,8%, при этом рост аэрокосмической и оборонной промышленности, внедорожников и послепродажного обслуживания частично компенсировался небольшим снижением в сегменте дорожных автомобилей. Продажи аэрокосмической и оборонной промышленности выросли на 29,6% по сравнению с 2021 годом, так как более сильные экономические условия в коммерческой аэрокосмической отрасли и увеличение доли рынка привели к результатам. Продажи внедорожников выросли на 22,6% по сравнению с предыдущим годом, при этом рост наблюдался во всех регионах, поскольку объемы производства оборудования оставались высокими, а успехи программы «Выхлопы и выбросы» в Европе подкрепили результаты. Во втором квартале 2022 года продажи на вторичном рынке выросли на 20,6% благодаря высокому спросу на всех первичных конечных рынках. Продажи дорожных автомобилей, которые снизились на 0,7% по сравнению с прошлым годом, по-прежнему испытывают негативное влияние стратегического решения о прекращении продаж низкодоходной линейки продуктов в США.
Продажи в сегменте «Промышленные товары» (Industrial) во втором квартале выросли на 14,6% благодаря сильному росту в сегменте «Газотурбинные системы» (GTS) и «Промышленные фильтрационные решения» (IFS). Продажи GTS выросли на 26,3% по сравнению с предыдущим годом из-за сроков реализации проекта. Рост продаж IFS на 14,1% стал результатом продолжающегося роста бизнеса по сбору промышленной пыли, а также показателей продаж в области технологической фильтрации. Продажи специальных приложений выросли на 9,8% по сравнению с 2021 годом, при этом рост наблюдается во всех регионах и по всему портфелю продуктов.
Операционная прибыль во втором квартале 2022 года в процентах от продаж (операционная маржа) увеличилась до 11,9% с 11,2% в 2021 году. Скорректированная операционная маржа во втором квартале 2021 года, которая исключает влияние затрат на реструктуризацию, составила 13,4%. Валовая прибыль снизилась до 31,1% с 33,2% в предыдущем году, поскольку сохранялись инфляционные препятствия, связанные с затратами на сырье, фрахт и рабочую силу. Скорректированная валовая прибыль за второй квартал 2021 года составила 34,0%.
Операционные расходы во втором квартале 2022 г. в процентах от продаж составили 19,2%, что выше по сравнению с 22,0% в 2021 г. за счет увеличения продаж. Скорректированные операционные расходы предыдущего года в процентах от продаж, исключая расходы на реструктуризацию в размере $9,0 млн, составили 20,7%.
Процентные расходы во втором квартале 2022 года составили 3,6 млн долларов США по сравнению с 3,3 млн долларов США в предыдущем году. Чистый прочий доход был благоприятнее на 1,3 млн долл. США по сравнению с предыдущим годом, в основном за счет сокращения расходов на пожертвования. Эффективная налоговая ставка во втором квартале 2022 года увеличилась до 24,1% с 23,9% в 2021 году.
Во втором квартале Дональдсон выплатил дивиденды в размере 27,2 млн долларов и выкупил примерно 0,2% своих акций в обращении за 12,8 млн долларов. С начала года Компания выплатила 54,6 млн долларов в виде дивидендов и выкупила примерно 1,4% выпущенных акций за 115,6 млн долларов.
Обновленный прогноз на 2022 финансовый год
Дональдсон увеличивает свои прогнозы по продажам и прибыли на акцию на 2022 финансовый год, чтобы отразить более высокие, чем ожидалось, перспективы продаж, учитывая результаты первого полугодия в сочетании с дополнительными ценами, запланированными на вторую половину года. Прогнозируется, что чистые продажи вырастут на 11-15% в годовом исчислении по сравнению с предыдущим прогнозом в 8-12%. Прогнозируется, что перевод валюты негативно повлияет на продажи примерно на 2%. Ожидается, что прибыль на акцию по GAAP за 2022 финансовый год составит от 2,66 до 2,76 доллара по сравнению с предыдущим диапазоном от 2,57 до 2,73 доллара. GAAP и скорректированная прибыль на акцию 2 в 2021 году составляли 2,24 и 2,32 доллара США соответственно.
Прогнозируется, что продажи двигателей на 2022 финансовый год увеличатся на 12-16% по сравнению с 2021 годом и по сравнению с предыдущим прогнозом на 8-12%. Ожидается, что рост цен и постоянный спрос будут способствовать общему улучшению, особенно в сегменте послепродажного обслуживания. Прогнозируется, что продажи аэрокосмической и оборонной промышленности также увеличатся по сравнению с предыдущими ожиданиями благодаря улучшению условий на рынке коммерческой аэрокосмической техники и увеличению доли рынка. Прогнозы производительности для бездорожья и движения по бездорожью не изменились.
Donaldson Fiscal 2022 Full Year Sales Guidance Ranges | ||||
Engine Products Segment | Current Guidance (March 2, 2022) | Previous Guidance (December 1, 2021) | ||
Off-Road | + high teens (no change) | + high teens | ||
On-Road | - low single-digits (no change) | - low single-digits | ||
Aftermarket | + mid teens | + high single-digits | ||
Aerospace and Defense | + low twenties | + low double-digits | ||
Total Engine Products segment | + 12% to 16% | + 8% to 12% |
Ожидается, что в 2022 финансовом году промышленные продажи увеличатся на 9-13% по сравнению с 2021 годом и по сравнению с предыдущим прогнозом на уровне 7-11%. Ожидается, что дальнейшее развитие специальных приложений принесет пользу. Ожидается, что продажи IFS и GTS будут соответствовать предыдущим прогнозам.
Donaldson Fiscal 2022 Full Year Sales Guidance Ranges | ||||
Industrial Products Segment | Current Guidance (March 2, 2022) | Previous Guidance (December 1, 2021) | ||
Industrial Filtration Solutions | + low double-digits (no change) | + low double-digits | ||
Gas Turbine Systems | + high single-digits (no change) | + high single-digits | ||
Special Applications | + mid single-digits | + low single-digits | ||
Total Industrial Products segment | + 9% to 13% | + 7% to 11% |
Ожидается, что валовая прибыль в 2022 финансовом году снизится на 1–1,5 процентных пункта по сравнению с 2021 годом и по сравнению с предыдущим прогнозом снижения на 0,5–1 процентный пункт. Инфляционное давление было выше, чем ожидалось, в первом полугодии, и ожидается, что оно сохранится до конца года.
Ожидается, что операционная маржа на 2022 финансовый год составит от 14,0% до 14,4% по сравнению с предыдущим прогнозом от 14,1% до 14,7%. GAAP и скорректированная операционная маржа составили 13,5% и 14,0% соответственно в 2021 году. По сравнению с 2021 годом, рост продаж и управление расходами будут способствовать достижению результатов.
Компания ожидает, что процентные расходы в 2022 финансовом году составят примерно 14,0 млн долларов, а прочие доходы составят от 7,0 до 11,0 млн долларов. Дональдсон ожидает, что эффективная ставка налога на прибыль в 2022 финансовом году составит от 24% до 26%.
Ожидается, что капитальные затраты на 2022 финансовый год составят от 90,0 до 110,0 млн долларов США, а конверсия свободного денежного потока составит от 70% до 80%. Дональдсон планирует выкупить примерно 2% своих акций в обращении в течение 2022 финансового года.
Сегодня в 9:00 по центральному поясному времени компания проведет веб-трансляцию телефонной конференции о доходах за второй квартал 2022 года. Чтобы послушать веб-трансляцию, посетите раздел «Мероприятия и презентации» на веб-сайте отдела по связям с инвесторами Дональдсона (IR.Donaldson.com) и нажмите «прослушать веб-трансляцию». Повтор веб-трансляции будет доступен сегодня примерно в 12:00 по центральному поясному времени.
Заявления в этом выпуске относительно будущих событий и ожиданий, таких как прогнозы, планы, тенденции и прогнозы, касающиеся деловой и финансовой деятельности Компании, являются прогнозными заявлениями по смыслу Закона о реформе судебных разбирательств по частным ценным бумагам 1995 года и обозначаются словами или такие фразы, как «скорее всего приведет», «ожидается», «будет продолжаться», «позволит», «оценить», «проектировать», «верить», «ожидать», «предвидеть», «прогнозировать», «план» и подобные выражения. Эти прогнозные заявления действительны только на дату таких заявлений и подвержены рискам и неопределенностям, которые могут повлиять на деятельность Компании и привести к тому, что фактические результаты Компании за будущие периоды могут существенно отличаться от любых высказанных мнений или заявлений. Эти факторы включают, помимо прочего, проблемы в глобальных операциях; воздействие глобальных экономических, промышленных и политических условий на спрос на продукцию; воздействие неожиданных событий, включая пандемию COVID-19; последствия недоступности сырья или роста стоимости материалов; неспособность привлекать и удерживать квалифицированный персонал; неспособность удовлетворить спрос клиентов; неспособность поддерживать конкурентные преимущества; угрозы от прорывных технологий; влияние высококонкурентных рынков с ценовым давлением; подверженность концентрации клиентов в определенных циклических отраслях; обесценение нематериальных активов; неспособность управлять повышением производительности; неспособность поддерживать эффективную систему внутреннего контроля за финансовой отчетностью; уязвимости, связанные с системами информационных технологий и безопасностью; неспособность защитить и обеспечить соблюдение прав интеллектуальной собственности; расходы, связанные с государственными законами и постановлениями; влияние колебаний иностранной валюты; последствия изменений на рынках капитала и кредита; изменения в налоговом законодательстве и налоговых ставках, положениях и результатах проверок; и результаты выполнения любой стратегии приобретения, отчуждения и других стратегических транзакций. Эти и другие факторы описаны в пункте 1A «Факторы риска» Годового отчета Компании по форме 10-K за финансовый год, закончившийся 31 июля 2021 года. Компания не берет на себя обязательств публично обновлять или пересматривать какие-либо прогнозные заявления, будь то в результате новой информации, будущих событий или иным образом, если это не требуется по закону. Представленные здесь результаты являются предварительными, непроверенными и подлежат пересмотру до тех пор, пока Компания не представит свои результаты в Комиссию по ценным бумагам и биржам США по форме 10-Q.
Об Donaldson Company
Компания Donaldson, основанная в 1915 году, является мировым лидером в области высокотехнологичных продуктов и решений для фильтрации, обслуживающих широкий спектр отраслей и передовых рынков. Наши разносторонние квалифицированные сотрудники в более чем 140 офисах на шести континентах сотрудничают с клиентами — от владельцев малого бизнеса до крупнейших мировых OEM-брендов — для решения сложных задач фильтрации. Узнайте, как Дональдсон продвигает фильтрацию для более чистого мира, на сайте www.Donaldson.com.
CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS |
|||||||||||||||||||||
(In millions, except per share amounts) |
|||||||||||||||||||||
(Unaudited) |
|||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
Three Months Ended |
|
Six Months Ended |
||||||||||||||||||
|
January 31, |
|
January 31, |
||||||||||||||||||
|
2022 |
|
2021 |
|
Change |
|
2022 |
|
2021 |
|
Change |
||||||||||
Net sales |
$ |
802.5 |
|
|
$ |
679.1 |
|
|
18.2 |
% |
|
$ |
1,563.4 |
|
|
$ |
1,315.8 |
|
|
18.8 |
% |
Cost of sales |
|
552.7 |
|
|
|
453.8 |
|
|
21.8 |
|
|
|
1,056.6 |
|
|
|
867.8 |
|
|
21.8 |
|
Gross profit |
|
249.8 |
|
|
|
225.3 |
|
|
10.9 |
|
|
|
506.8 |
|
|
|
448.0 |
|
|
13.1 |
|
Operating expenses |
|
154.1 |
|
|
|
149.2 |
|
|
3.2 |
|
|
|
303.6 |
|
|
|
284.7 |
|
|
6.6 |
|
Operating income |
|
95.7 |
|
|
|
76.1 |
|
|
25.8 |
|
|
|
203.2 |
|
|
|
163.3 |
|
|
24.4 |
|
Interest expense |
|
3.6 |
|
|
|
3.3 |
|
|
10.6 |
|
|
|
7.1 |
|
|
|
6.8 |
|
|
4.2 |
|
Other (income) expense, net |
|
(2.4 |
) |
|
|
(1.1 |
) |
|
121.3 |
|
|
|
(2.4 |
) |
|
|
0.4 |
|
|
(786.5 |
) |
Earnings before income taxes |
|
94.5 |
|
|
|
73.9 |
|
|
27.9 |
|
|
|
198.5 |
|
|
|
156.1 |
|
|
27.1 |
|
Income taxes |
|
22.7 |
|
|
|
17.7 |
|
|
28.7 |
|
|
|
49.7 |
|
|
|
38.0 |
|
|
30.9 |
|
Net earnings |
$ |
71.8 |
|
|
$ |
56.2 |
|
|
27.7 |
% |
|
$ |
148.8 |
|
|
$ |
118.1 |
|
|
25.9 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Weighted average shares – basic |
|
123.9 |
|
|
|
126.6 |
|
|
(2.2 |
) % |
|
|
124.1 |
|
|
|
126.7 |
|
|
(2.1 |
) % |
Weighted average shares – diluted |
|
125.6 |
|
|
|
128.2 |
|
|
(2.1 |
) % |
|
|
126.0 |
|
|
|
128.2 |
|
|
(1.7 |
) % |
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Net earnings per share – basic |
$ |
0.58 |
|
|
$ |
0.44 |
|
|
30.5 |
% |
|
$ |
1.20 |
|
|
$ |
0.93 |
|
|
28.6 |
% |
Net earnings per share – diluted |
$ |
0.57 |
|
|
$ |
0.44 |
|
|
30.4 |
% |
|
$ |
1.18 |
|
|
$ |
0.92 |
|
|
28.1 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Dividends paid per share |
$ |
0.22 |
|
|
$ |
0.21 |
|
|
4.8 |
% |
|
$ |
0.44 |
|
|
$ |
0.42 |
|
|
4.8 |
% |
Note: Amounts may not foot due to rounding. |
CONDENSED CONSOLIDATED BALANCE SHEETS |
|||||||
(In millions) |
|||||||
(Unaudited) |
|||||||
|
|
|
|
||||
|
January 31, |
|
July 31, |
||||
|
2022 |
|
2021 |
||||
Assets |
|
|
|
||||
Current assets: |
|
|
|
||||
Cash and cash equivalents |
$ |
170.4 |
|
|
$ |
222.8 |
|
Accounts receivable, net |
|
553.4 |
|
|
|
552.7 |
|
Inventories, net |
|
480.7 |
|
|
|
384.5 |
|
Prepaid expenses and other current assets |
|
109.7 |
|
|
|
84.0 |
|
Total current assets |
|
1,314.2 |
|
|
|
1,244.0 |
|
Property, plant and equipment, net |
|
601.0 |
|
|
|
617.8 |
|
Goodwill |
|
344.3 |
|
|
|
322.5 |
|
Intangible assets, net |
|
79.4 |
|
|
|
61.6 |
|
Other long-term assets |
|
152.4 |
|
|
|
154.3 |
|
Total assets |
$ |
2,491.3 |
|
|
$ |
2,400.2 |
|
|
|
|
|
||||
Liabilities and Stockholders’ Equity |
|
|
|
||||
Current liabilities: |
|
|
|
||||
Short-term borrowings |
$ |
63.9 |
|
|
$ |
48.5 |
|
Accounts payable |
|
324.5 |
|
|
|
293.9 |
|
Accrued employee compensation and related taxes |
|
89.6 |
|
|
|
126.8 |
|
Income taxes payable |
|
28.9 |
|
|
|
17.7 |
|
Dividends payable |
|
27.3 |
|
|
|
27.6 |
|
Other current liabilities |
|
104.3 |
|
|
|
92.1 |
|
Total current liabilities |
|
638.5 |
|
|
|
606.6 |
|
Long-term debt |
|
553.9 |
|
|
|
461.0 |
|
Non-current income taxes payable |
|
74.4 |
|
|
|
80.7 |
|
Deferred income taxes |
|
30.6 |
|
|
|
26.6 |
|
Other long-term liabilities |
|
77.1 |
|
|
|
88.2 |
|
Total liabilities |
|
1,374.5 |
|
|
|
1,263.1 |
|
|
|
|
|
||||
Total stockholders’ equity |
|
1,116.8 |
|
|
|
1,137.1 |
|
Total liabilities and stockholders’ equity |
$ |
2,491.3 |
|
|
$ |
2,400.2 |
|
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS |
|||||||
(In millions) |
|||||||
(Unaudited) |
|||||||
|
|
|
|
||||
|
Six Months Ended |
||||||
|
January 31, |
||||||
|
2022 |
|
2021 |
||||
Operating Activities |
|
|
|
||||
Net earnings |
$ |
148.8 |
|
|
$ |
118.1 |
|
Adjustments to reconcile net earnings to net cash provided by operating activities: |
|
|
|
||||
Depreciation and amortization |
|
47.5 |
|
|
|
46.6 |
|
Deferred income taxes |
|
1.2 |
|
|
|
(7.0 |
) |
Stock-based compensation expense |
|
13.4 |
|
|
|
10.2 |
|
Other, net |
|
6.5 |
|
|
|
13.5 |
|
Changes in operating assets and liabilities |
|
(137.6 |
) |
|
|
20.9 |
|
Net cash provided by operating activities |
|
79.8 |
|
|
|
202.3 |
|
|
|
|
|
||||
Investing Activities |
|
|
|
||||
Purchases of property, plant and equipment |
|
(33.5 |
) |
|
|
(30.4 |
) |
Acquisitions, net of cash acquired |
|
(49.0 |
) |
|
|
— |
|
Net cash used in investing activities |
|
(82.5 |
) |
|
|
(30.4 |
) |
|
|
|
|
||||
Financing Activities |
|
|
|
||||
Proceeds from long-term debt |
|
174.3 |
|
|
|
— |
|
Repayments of long-term debt |
|
(75.0 |
) |
|
|
(125.0 |
) |
Change in short-term borrowings |
|
15.9 |
|
|
|
13.0 |
|
Purchase of non-controlling interests |
|
— |
|
|
|
(14.4 |
) |
Purchase of treasury stock |
|
(115.6 |
) |
|
|
(46.3 |
) |
Dividends paid |
|
(54.6 |
) |
|
|
(53.1 |
) |
Tax withholding for stock compensation transactions |
|
(1.2 |
) |
|
|
(3.5 |
) |
Exercise of stock options |
|
10.5 |
|
|
|
18.7 |
|
Net cash used in financing activities |
|
(45.7 |
) |
|
|
(210.6 |
) |
Effect of exchange rate changes on cash |
|
(4.0 |
) |
|
|
9.4 |
|
Decrease in cash and cash equivalents |
|
(52.4 |
) |
|
|
(29.3 |
) |
Cash and cash equivalents, beginning of period |
|
222.8 |
|
|
|
236.6 |
|
Cash and cash equivalents, end of period |
$ |
170.4 |
|
|
$ |
207.3 |
|
CONSOLIDATED RATE ANALYSIS |
|||||||||||
(Unaudited) |
|||||||||||
|
|
|
|
|
|
|
|
||||
|
Three Months Ended |
Six Months Ended |
|||||||||
|
January 31, |
January 31, |
|||||||||
|
2022 |
|
2021 |
|
2022 |
|
2021 |
||||
Gross margin |
31.1 |
% |
|
33.2 |
% |
|
32.4 |
% |
|
34.0 |
% |
Operating expenses |
19.2 |
% |
|
22.0 |
% |
|
19.4 |
% |
|
21.6 |
% |
Operating margin |
11.9 |
% |
|
11.2 |
% |
|
13.0 |
% |
|
12.4 |
% |
Other (income) expense, net |
(0.3 |
) % |
|
(0.2 |
) % |
|
(0.2 |
) % |
|
— |
% |
Depreciation and amortization |
2.9 |
% |
|
3.4 |
% |
|
3.0 |
% |
|
3.5 |
% |
EBITDA |
15.2 |
% |
|
14.8 |
% |
|
16.2 |
% |
|
15.9 |
% |
Effective tax rate |
24.1 |
% |
|
23.9 |
% |
|
25.0 |
% |
|
24.3 |
% |
Earnings before income taxes - Engine Products |
11.7 |
% |
|
13.3 |
% |
|
12.7 |
% |
|
13.5 |
% |
Earnings before income taxes - Industrial Products |
15.1 |
% |
|
11.9 |
% |
|
15.7 |
% |
|
12.8 |
% |
Cash conversion ratio |
30.2 |
% |
|
109.9 |
% |
|
31.0 |
% |
|
145.4 |
% |
|
|
|
|
|
|
|
|
||||
|
Three Months Ended |
Six Months Ended |
|||||||||
|
January 31, |
January 31, |
|||||||||
|
2022 |
|
2021 |
|
2022 |
|
2021 |
||||
Adjusted Rates |
|
|
|
|
|
|
|
||||
Gross margin |
31.1 |
% |
|
34.0 |
% |
|
32.4 |
% |
|
34.5 |
% |
Operating expenses |
19.2 |
% |
|
20.7 |
% |
|
19.4 |
% |
|
21.0 |
% |
Operating margin |
11.9 |
% |
|
13.4 |
% |
|
13.0 |
% |
|
13.5 |
% |
Other (income) expense, net |
(0.3 |
) % |
|
(0.2 |
) % |
|
(0.2 |
) % |
|
— |
% |
Depreciation and amortization |
2.9 |
% |
|
3.4 |
% |
|
3.0 |
% |
|
3.5 |
% |
EBITDA |
15.2 |
% |
|
17.0 |
% |
|
16.2 |
% |
|
17.0 |
% |
Effective tax rate |
24.1 |
% |
|
24.7 |
% |
|
25.0 |
% |
|
24.7 |
% |
Earnings before income taxes - Engine Products |
11.7 |
% |
|
13.8 |
% |
|
12.7 |
% |
|
13.8 |
% |
Earnings before income taxes - Industrial Products |
15.1 |
% |
|
14.8 |
% |
|
15.7 |
% |
|
14.3 |
% |
Cash conversion ratio |
30.2 |
% |
|
92.5 |
% |
|
31.0 |
% |
|
133.6 |
% |
Note: Rate analysis metrics are computed by dividing the applicable amount by net sales, and cash conversion ratio reflects free cash flow divided by net earnings. Adjusted rates exclude the impact of restructuring charges. Adjusted rates are non-GAAP measures; see the Reconciliation of Non-GAAP Financial Measures schedule for additional information. |
SEGMENT DETAIL |
|||||||||||||||||||||
(In millions) |
|||||||||||||||||||||
(Unaudited) |
|||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
Three Months Ended January 31, |
|
Six Months Ended January 31, |
||||||||||||||||||
|
2022 |
|
2021 |
|
Change |
|
2022 |
|
2021 |
|
Change |
||||||||||
Net sales |
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Engine Products segment |
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Off-Road |
$ |
95.5 |
|
|
$ |
77.9 |
|
|
22.6 |
% |
|
$ |
189.4 |
|
|
$ |
142.6 |
|
|
32.8 |
% |
On-Road |
|
33.1 |
|
|
|
33.4 |
|
|
(0.7 |
) |
|
|
64.6 |
|
|
|
65.3 |
|
|
(1.1 |
) |
Aftermarket |
|
398.4 |
|
|
|
330.2 |
|
|
20.6 |
|
|
|
772.7 |
|
|
|
647.4 |
|
|
19.4 |
|
Aerospace and Defense |
|
27.1 |
|
|
|
20.9 |
|
|
29.6 |
|
|
|
54.6 |
|
|
|
43.3 |
|
|
26.1 |
|
Total Engine Products segment |
|
554.1 |
|
|
|
462.4 |
|
|
19.8 |
|
|
|
1,081.3 |
|
|
|
898.6 |
|
|
20.3 |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Industrial Products segment |
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Industrial Filtration Solutions |
|
171.2 |
|
|
|
149.9 |
|
|
14.1 |
|
|
|
336.7 |
|
|
|
285.6 |
|
|
17.9 |
|
Gas Turbine Systems |
|
29.6 |
|
|
|
23.4 |
|
|
26.3 |
|
|
|
46.2 |
|
|
|
46.4 |
|
|
(0.5 |
) |
Special Applications |
|
47.6 |
|
|
|
43.4 |
|
|
9.8 |
|
|
|
99.2 |
|
|
|
85.2 |
|
|
16.4 |
|
Total Industrial Products segment |
|
248.4 |
|
|
|
216.7 |
|
|
14.6 |
|
|
|
482.1 |
|
|
|
417.2 |
|
|
15.5 |
|
Total Company |
$ |
802.5 |
|
|
$ |
679.1 |
|
|
18.2 |
% |
|
$ |
1,563.4 |
|
|
$ |
1,315.8 |
|
|
18.8 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Earnings before income taxes |
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Engine Products segment |
$ |
65.0 |
|
|
$ |
61.3 |
|
|
6.0 |
% |
|
$ |
137.3 |
|
|
$ |
121.7 |
|
|
12.8 |
% |
Industrial Products segment |
|
37.5 |
|
|
|
25.8 |
|
|
45.3 |
|
|
|
75.8 |
|
|
|
53.3 |
|
|
42.2 |
|
Corporate and unallocated |
|
(8.0 |
) |
|
|
(13.2 |
) |
|
39.4 |
|
|
|
(14.6 |
) |
|
|
(18.9 |
) |
|
22.8 |
|
Total Company |
$ |
94.5 |
|
|
$ |
73.9 |
|
|
27.9 |
% |
|
$ |
198.5 |
|
|
$ |
156.1 |
|
|
27.1 |
% |
Earnings before income taxes percentage |
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Engine Products segment |
|
11.7 |
% |
|
|
13.3 |
% |
|
(1.6 |
) % |
|
|
12.7 |
% |
|
|
13.5 |
% |
|
(0.8 |
) % |
Industrial Products segment |
|
15.1 |
% |
|
|
11.9 |
% |
|
3.2 |
% |
|
|
15.7 |
% |
|
|
12.8 |
% |
|
2.9 |
% |
Note: Earnings before income taxes percentage is calculated by dividing earnings before income taxes by net sales. Amounts may not foot due to rounding. |
SEGMENT SALES PERCENT CHANGE FROM PRIOR PERIODS BY GEOGRAPHY, AS REPORTED |
||||||||||||||
(Unaudited) |
||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||
|
Three Months Ended January 31, 2022 |
|||||||||||||
|
TOTAL |
|
U.S.(1)/CA(2) |
|
EMEA(3) |
|
APAC(4) |
|
LATAM(5) |
|||||
Engine Products segment |
|
|
|
|
|
|
|
|
|
|||||
Off-Road |
22.6 |
% |
|
24.2 |
% |
|
36.7 |
% |
|
0.8 |
% |
|
83.9 |
% |
On-Road |
(0.7 |
) |
|
(6.6 |
) |
|
(14.1 |
) |
|
13.8 |
|
|
79.1 |
|
Aftermarket |
20.6 |
|
|
27.5 |
|
|
18.8 |
|
|
4.3 |
|
|
26.9 |
|
Aerospace and Defense |
29.6 |
|
|
16.4 |
|
|
70.0 |
|
|
37.5 |
|
|
N/A |
|
Total Engine Products segment |
19.8 |
|
|
22.7 |
|
|
23.6 |
|
|
4.5 |
|
|
29.3 |
|
|
|
|
|
|
|
|
|
|
|
|||||
Industrial Products segment |
|
|
|
|
|
|
|
|
|
|||||
Industrial Filtration Solutions |
14.1 |
|
|
21.1 |
|
|
13.9 |
|
|
2.6 |
|
|
17.0 |
|
Gas Turbine Systems |
26.3 |
|
|
20.7 |
|
|
30.1 |
|
|
82.1 |
|
|
(22.6 |
) |
Special Applications |
9.8 |
|
|
40.3 |
|
|
2.7 |
|
|
7.8 |
|
|
46.9 |
|
Total Industrial Products segment |
14.6 |
|
|
22.2 |
|
|
14.7 |
|
|
7.0 |
|
|
11.1 |
|
Total Company |
18.2 |
% |
|
22.6 |
% |
|
20.2 |
% |
|
5.5 |
% |
|
26.9 |
% |
|
|
|
|
|
|
|
|
|
|
|||||
|
Six Months Ended January 31, 2022 |
|||||||||||||
|
TOTAL |
|
US/CA |
|
EMEA |
|
APAC |
|
LATAM |
|||||
Engine Products segment |
|
|
|
|
|
|
|
|
|
|||||
Off-Road |
32.8 |
% |
|
31.5 |
% |
|
53.8 |
% |
|
7.1 |
% |
|
82.0 |
% |
On-Road |
(1.1 |
) |
|
(10.0 |
) |
|
(6.5 |
) |
|
16.0 |
|
|
131.9 |
|
Aftermarket |
19.4 |
|
|
22.5 |
|
|
19.5 |
|
|
6.0 |
|
|
28.0 |
|
Aerospace and Defense |
26.1 |
|
|
22.4 |
|
|
36.7 |
|
|
44.1 |
|
|
N/A |
|
Total Engine Products segment |
20.3 |
|
|
20.3 |
|
|
26.2 |
|
|
7.3 |
|
|
30.6 |
|
|
|
|
|
|
|
|
|
|
|
|||||
Industrial Products segment |
|
|
|
|
|
|
|
|
|
|||||
Industrial Filtration Solutions |
17.9 |
|
|
28.6 |
|
|
11.8 |
|
|
9.7 |
|
|
27.5 |
|
Gas Turbine Systems |
(0.5 |
) |
|
(0.5 |
) |
|
1.1 |
|
|
(8.7 |
) |
|
6.4 |
|
Special Applications |
16.4 |
|
|
26.5 |
|
|
8.7 |
|
|
16.8 |
|
|
135.5 |
|
Total Industrial Products segment |
15.5 |
|
|
23.8 |
|
|
10.1 |
|
|
12.4 |
|
|
25.6 |
|
Total Company |
18.8 |
% |
|
21.2 |
% |
|
19.9 |
% |
|
9.3 |
% |
|
30.0 |
% |
Note: Amounts may not foot due to rounding.
|
(1) United States (U.S.) |
(2) Canada (CA) |
(3) Europe, Middle East and Africa (EMEA) |
(4) Asia Pacific (APAC) |
(5) Latin America (LATAM) |
SEGMENT SALES PERCENT CHANGE FROM PRIOR PERIODS BY GEOGRAPHY, CONSTANT CURRENCY |
||||||||||||||
(Unaudited) |
||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||
|
Three Months Ended January 31, 2022 |
|||||||||||||
|
TOTAL |
|
US/CA |
|
EMEA |
|
APAC |
|
LATAM |
|||||
Engine Products segment |
|
|
|
|
|
|
|
|
|
|||||
Off-Road |
26.6 |
% |
|
24.2 |
% |
|
44.9 |
% |
|
4.0 |
% |
|
90.0 |
% |
On-Road |
1.4 |
|
|
(6.6 |
) |
|
(10.7 |
) |
|
19.4 |
|
|
84.2 |
|
Aftermarket |
22.9 |
|
|
27.5 |
|
|
24.3 |
|
|
7.0 |
|
|
29.1 |
|
Aerospace and Defense |
32.1 |
|
|
16.4 |
|
|
79.4 |
|
|
48.2 |
|
|
N/A |
|
Total Engine Products segment |
22.4 |
|
|
22.7 |
|
|
29.8 |
|
|
7.6 |
|
|
31.6 |
|
|
|
|
|
|
|
|
|
|
|
|||||
Industrial Products segment |
|
|
|
|
|
|
|
|
|
|||||
Industrial Filtration Solutions |
16.7 |
|
|
21.1 |
|
|
19.1 |
|
|
4.4 |
|
|
18.1 |
|
Gas Turbine Systems |
27.0 |
|
|
20.7 |
|
|
31.1 |
|
|
86.7 |
|
|
(22.6 |
) |
Special Applications |
14.8 |
|
|
40.3 |
|
|
7.0 |
|
|
13.6 |
|
|
46.9 |
|
Total Industrial Products segment |
17.4 |
|
|
22.2 |
|
|
19.4 |
|
|
10.8 |
|
|
12.0 |
|
Total Company |
20.8 |
% |
|
22.6 |
% |
|
25.7 |
% |
|
8.9 |
% |
|
29.0 |
% |
|
|
|
|
|
|
|
|
|
|
|||||
|
Six Months Ended January 31, 2022 |
|||||||||||||
|
TOTAL |
|
US/CA |
|
EMEA |
|
APAC |
|
LATAM |
|||||
Engine Products segment |
|
|
|
|
|
|
|
|
|
|||||
Off-Road |
35.0 |
% |
|
31.5 |
% |
|
58.9 |
% |
|
8.9 |
% |
|
83.7 |
% |
On-Road |
0.1 |
|
|
(10.0 |
) |
|
(5.7 |
) |
|
20.2 |
|
|
133.1 |
|
Aftermarket |
20.1 |
|
|
22.5 |
|
|
21.2 |
|
|
6.8 |
|
|
28.9 |
|
Aerospace and Defense |
27.4 |
|
|
22.4 |
|
|
41.7 |
|
|
51.3 |
|
|
N/A |
|
Total Engine Products segment |
21.4 |
|
|
20.3 |
|
|
28.7 |
|
|
8.7 |
|
|
31.5 |
|
|
|
|
|
|
|
|
|
|
|
|||||
Industrial Products segment |
|
|
|
|
|
|
|
|
|
|||||
Industrial Filtration Solutions |
18.8 |
|
|
28.6 |
|
|
14.0 |
|
|
9.9 |
|
|
27.8 |
|
Gas Turbine Systems |
(0.2 |
) |
|
(0.5 |
) |
|
1.7 |
|
|
(8.1 |
) |
|
6.4 |
|
Special Applications |
19.6 |
|
|
26.5 |
|
|
10.2 |
|
|
20.9 |
|
|
135.5 |
|
Total Industrial Products segment |
16.9 |
|
|
23.8 |
|
|
12.1 |
|
|
14.5 |
|
|
25.9 |
|
Total Company |
20.0 |
% |
|
21.2 |
% |
|
22.2 |
% |
|
11.0 |
% |
|
30.8 |
% |
Note: The constant currency presentation, which is a non-GAAP measure, excludes the impact of fluctuations in foreign currency exchange rates. The Company believes providing constant currency information provides valuable supplemental information regarding its results of operations. The Company calculates constant currency percentages by converting its current period local currency financial results using the prior period exchanges rates and compared these adjusted amounts to its prior period reported results. Amounts may not foot due to rounding. |
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES |
|||||||||||||||
(In millions, except per share amounts) |
|||||||||||||||
(Unaudited) |
|||||||||||||||
|
Three Months Ended |
|
Six Months Ended |
||||||||||||
|
January 31, |
|
January 31, |
||||||||||||
|
2022 |
|
2021 |
|
2022 |
|
2021 |
||||||||
Net cash provided by operating activities |
$ |
36.9 |
|
|
$ |
73.4 |
|
|
$ |
79.8 |
|
|
$ |
202.3 |
|
Net capital expenditures |
|
(15.2 |
) |
|
|
(11.6 |
) |
|
|
(33.5 |
) |
|
|
(30.4 |
) |
Free cash flow |
$ |
21.7 |
|
|
$ |
61.8 |
|
|
$ |
46.3 |
|
|
$ |
171.9 |
|
|
|
|
|
|
|
|
|
||||||||
Net earnings |
$ |
71.8 |
|
|
$ |
56.2 |
|
|
$ |
148.8 |
|
|
$ |
118.1 |
|
Income taxes |
|
22.7 |
|
|
|
17.7 |
|
|
|
49.7 |
|
|
|
38.0 |
|
Interest expense |
|
3.6 |
|
|
|
3.3 |
|
|
|
7.1 |
|
|
|
6.8 |
|
Depreciation and amortization |
|
23.6 |
|
|
|
23.3 |
|
|
|
47.5 |
|
|
|
46.6 |
|
EBITDA |
$ |
121.7 |
|
|
$ |
100.5 |
|
|
$ |
253.1 |
|
|
$ |
209.5 |
|
|
|
|
|
|
|
|
|
||||||||
Adjusted net earnings |
$ |
71.8 |
|
|
$ |
66.8 |
|
|
$ |
148.8 |
|
|
$ |
128.7 |
|
Adjusted income taxes |
|
22.7 |
|
|
|
21.9 |
|
|
|
49.7 |
|
|
|
42.2 |
|
Interest expense |
|
3.6 |
|
|
|
3.3 |
|
|
|
7.1 |
|
|
|
6.8 |
|
Depreciation and amortization |
|
23.6 |
|
|
|
23.3 |
|
|
|
47.5 |
|
|
|
46.6 |
|
Adjusted EBITDA |
$ |
121.7 |
|
|
$ |
115.3 |
|
|
$ |
253.1 |
|
|
$ |
224.3 |
|
|
|
|
|
|
|
|
|
||||||||
Gross profit |
$ |
249.8 |
|
|
$ |
225.3 |
|
|
$ |
506.8 |
|
|
$ |
448.0 |
|
Restructuring charges |
|
— |
|
|
|
5.8 |
|
|
|
— |
|
|
|
5.8 |
|
Adjusted gross profit |
$ |
249.8 |
|
|
$ |
231.1 |
|
|
$ |
506.8 |
|
|
$ |
453.8 |
|
|
|
|
|
|
|
|
|
||||||||
Operating expense |
$ |
154.1 |
|
|
$ |
149.2 |
|
|
$ |
303.6 |
|
|
$ |
284.7 |
|
Restructuring charges |
|
— |
|
|
|
9.0 |
|
|
|
— |
|
|
|
9.0 |
|
Adjusted operating expense |
$ |
154.1 |
|
|
$ |
140.2 |
|
|
$ |
303.6 |
|
|
$ |
275.7 |
|
|
|
|
|
|
|
|
|
||||||||
Operating income |
$ |
95.7 |
|
|
$ |
76.1 |
|
|
$ |
203.2 |
|
|
$ |
163.3 |
|
Restructuring charges |
|
— |
|
|
|
14.8 |
|
|
|
— |
|
|
|
14.8 |
|
Adjusted operating income |
$ |
95.7 |
|
|
$ |
90.9 |
|
|
$ |
203.2 |
|
|
$ |
178.1 |
|
|
|
|
|
|
|
|
|
||||||||
Net earnings |
$ |
71.8 |
|
|
$ |
56.2 |
|
|
$ |
148.8 |
|
|
$ |
118.1 |
|
Restructuring charges, net of tax |
|
— |
|
|
|
10.6 |
|
|
|
— |
|
|
|
10.6 |
|
Adjusted net earnings |
$ |
71.8 |
|
|
$ |
66.8 |
|
|
$ |
148.8 |
|
|
$ |
128.7 |
|
|
|
|
|
|
|
|
|
||||||||
Diluted earnings per share |
$ |
0.57 |
|
|
$ |
0.44 |
|
|
$ |
1.18 |
|
|
$ |
0.92 |
|
Restructuring charges per share |
|
— |
|
|
|
0.08 |
|
|
|
— |
|
|
|
0.08 |
|
Adjusted diluted earnings per share |
$ |
0.57 |
|
|
$ |
0.52 |
|
|
$ |
1.18 |
|
|
$ |
1.00 |
|
Note: Although free cash flow, EBITDA, adjusted EBITDA, adjusted gross profit, adjusted operating expense, adjusted operating income, adjusted net earnings and adjusted diluted EPS are not measures of financial performance under GAAP, the Company believes they are useful in understanding its financial results. Free cash flow is a commonly used measure of a company’s ability to generate cash in excess of its operating needs. EBITDA is a commonly used measure of operating earnings less non-cash expenses. The adjusted basis presentation excludes the impact of certain matters not related to the Company’s ongoing operations. Management believes that the adjusted basis presentation reflects management’s performance in operating the Company and provides a meaningful representation of the performance of the Company’s core business and is useful to understanding its financial results. A shortcoming of these financial measures is that they do not reflect the Company’s actual results under GAAP. Management does not intend these items to be considered in isolation or as a substitute for the related GAAP measures. Amounts may not foot due to rounding. |