Donaldson Posts 21% Sales Gain

June 3, 2021

Donaldson Co. reported third-quarter sales of $765.0 million, up 21.5 percent from the same period in 2020, when sales were $629.7 million.

Donaldson’s third quarter sales were the highest quarterly sales in our 106-year history and reflected strength in the economy as seen in our Engine segment and the beginning of recovery in our Industrial segment,” said Tod Carpenter, chairman, president, CEO, in a prepared statement. “Additionally, although we faced pressures from our supply chain, raw material costs, and sales mix, we were able to offset this with volume leverage and recorded a year-over-year increase in gross margin of 50 basis points to 33.7 percent. We continue to expand our leadership position in filtration technology as we deliver on our strategy to increase our addressable market and generate higher returns.

“With one quarter left in our fiscal year and customer demand at a high level for most of our businesses, we are confident the sales momentum we experienced in the third quarter will carry through our fiscal year-end. While challenges in supply chain are expected to continue through the fourth quarter of fiscal 2021, we are increasing our 2021 sales guidance due to our strong third quarter sales results along with continued strength in our Engine Off-Road and Aftermarket businesses, an uptick in our On-Road business, and increasing momentum in our Industrial segment. Total sales are expected to increase between 9 percent and 11 percent, compared with prior guidance of between 5 percent and 8 percent. ”

Engine sales for the quarter increased 26.3 percent compared to the same period in 2020. The company cites strong performance in Off-Road, On-Road, and Aftermarket in all regions, partially offset by a decline in Aerospace and Defense sales as a result of ongoing weakness in commercial aerospace.

On-road sales increased 58.2 percent, led by increased Class 8 truck build rates in the United States and increased build rates and market share gains in China. Off-Road sales increased 50.7 percent compared to 2020, including strong growth in EMEA and Latin America, where sales nearly doubled, and a strong increase in China.

Aftermarket sales, which rose 23.0 percent compared to 2020, experienced broad growth with all regions up year-over-year as utilization rates for construction equipment, agriculture equipment, and on-road heavy-duty trucks remain at a high level.

Donaldson revised 2021 outlook

Donaldson is increasing its fiscal 2021 guidance due to strong third quarter fiscal 2021 results, current backlog levels, and incoming order rates. It expects full-year sales to increase between 9 and 11 percent compared to 2020.

Fiscal 2021 Engine sales are now projected to increase between 12 and 14 percent from fiscal 2020. Off-Road, On-Road, and Aftermarket are expected to show strong growth.

Source: Donaldson Co.

Frank Raczon, Construction Equipment
Mark Pentz, Calvin Group/IEDA
Mark Pentz, Calvin Group/IEDA
Mark Pentz, Calvin Group/IEDA
Mark Pentz, Calvin Group/IEDA
Mark Pentz, Calvin Group/IEDA
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ID 9194607 © Arak7 | Dreamstime.com