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 MINNEAPOLIS, Sept. 20 /PRNewswire/ -- Donaldson Company, Inc. (NYSE: DCI) today reported record fourth-quarter and full year results for the year ended July 31, 1993. For the quarter, sales of $149.2 million were up 16 percent from prior year sales of $128.3 million. Net earnings of $9.0 million, or 66 cents per share, were up 22 percent from prior year earnings of $7.4 million, or 53 cents per share.
 For the year, sales of $533.3 million were up 11 percent from prior year sales of $482.1 million. Net earnings of $28.2 million, or $2.03 per share, were up 10 percent from prior year earnings of $25.8 million, or $1.84 per share.
 "We are very pleased to report a fourth consecutive year of record sales and earnings," said William A. Hodder, chairman, president and chief executive officer. "Furthermore, the quarter itself was the company's sixth consecutive quarter of year-over-year revenue and profitability improvements.
 "Excluding gas turbine filtration sales, the sales mix for the quarter was consistent with the year's first three quarters as strong sales increases in transportation, aftermarket and dust collection offset declines in defense and high purity products. Gas turbine filtration had a record sales quarter of $22.1 million, up more than 70 percent compared to the prior year.
 "Operating margins remained consistent with prior periods as improvements in gross margins were offset by increased operating expenses -- primarily related to increased marketing expenses and increased warranty expenses for the diesel particulate trap. Operating profit margins of 10.1 percent and 8.5 percent for the quarter and year- to-date period, respectively, were consistent with the comparable periods last year."
 Hodder went on to say that "we have completed a reassessment of the worldwide market potential for diesel particulate traps and have decided to no longer accept orders for new or retrofit traps. Though not accepting orders, we will meet all current order commitments and will fully honor warranty and service obligations related to in-service traps. Adequate reserves have been established to cover the known warranty costs of exiting the trap business."
 Total backlogs of $130.9 million were down 1 percent from the prior year end and down 5 percent from the end of the third quarter. The quarterly decline was entirely attributable to gas turbine filtration as backlogs decreased due to the business' record sales quarter. Year over year, however, gas turbine filtration backlogs are still up almost 70 percent, offsetting declines in defense and international engine backlogs. Hard order backlogs -- goods scheduled for delivery within 90 days -- of $88.1 million were down 8 percent from the end of the third quarter and 2 percent from the prior year end. Donaldson Company, Inc. is a worldwide manufacturer of filtration products. The Company's product mix includes air and liquid filters and exhaust and emission control products for heavy duty mobile equipment; in-plant air cleaning systems; air intake systems and exhaust products for industrial gas turbines; and specialized filters for such diverse applications as computer disk drives, aircraft and personal respirators. Products are produced at nine U.S. plants, ten other plants around the world and two joint ventures. The Company's shares are traded on the New York Stock Exchange under the symbol DCI.
 Consolidated Statements of Earnings
 For the periods ended July 31,
 (Thousands of dollars, except per share amounts)
 Three Months 12 Months
 Fiscal Fiscal Fiscal Fiscal
 1993 1992 1993 1992
 Net Sales $149,191 $128,284 $533,327 $482,104
 Cost of Sales 104,149 90,770 381,091 348,530
 Gross Margin 45,042 37,514 152,236 133,574
 Operating Expenses 30,051 24,552 106,990 92,325
 Other (Income) Expense (130) 179 (2,159) (3,153)
 Interest Expense 535 683 2,723 2,681
 Earnings Before
 Income Taxes 14,586 12,100 44,682 41,721
 Income Taxes 5,573 4,726 16,468 15,952
 Net Earnings $9,013 $7,374 $28,214 $25,769
 Earnings Per Share $.66 $.53 $2.03 $1.84
 Weighted Average
 Number of Shares
 Outstanding 13,737,633 13,924,175 13,908,247 13,983,274
 -0- 9/20/93
 /CONTACT: John Mackay Padilla Speer Beardsley Inc., 612-871-8877 or In New York, 212-752-8338, for Donaldson Company; or John R. Schweers, of Donaldson, 612-887-3014/

CO: Donaldson Company, Inc. ST: Minnesota IN: SU: ERN

Al-DS -- MN004 -- 3486 09/20/93 08:52 EDT
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Publication:PR Newswire
Date:Sep 20, 1993

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