Printer Friendly

DONALDSON CO. 'F-1' COMMERCIAL PAPER, 'A' INDUSTRIAL REVENUE BONDS AFFIRMED BY FITCH -- FITCH FINANCIAL WIRE --

 DONALDSON CO. 'F-1' COMMERCIAL PAPER, 'A' INDUSTRIAL REVENUE BONDS
 AFFIRMED BY FITCH -- FITCH FINANCIAL WIRE --
 NEW YORK, June 24 /PRNewswire/ -- Donaldson Co., Inc.'s (NYSE: DCI) 'F-1' commercial paper and its 'A' industrial revenue bonds are affirmed by Fitch. The credit trend is stable.
 The ratings reflect DCI's dominant position in its engine products markets, strong cash flows from operations in spite of the maure and cyclical nature of its customer base, and conservative capital structure while recognizing its dependence on the original equipment diesel engine markets.
 Generally, over the last ten years, the company has maintained its ratio of total debt to capitalization in the range of 20 percent to 30 percent. In 1987, DCI borrowed $21 million to finance the creation of its Employee Stock Ownership Plan. Accordingly, total debt to total capital jumped from 21.9 percent at year-end 1986 to 31.2 percent at year end 1987. The company is most comfortable with its debt ratio below 30 percent, but has indicated that it would be comfortable allowing this ratio to rise above 30 percent on a temporary basis to fund an acquisition. The company has made a variety of acquisitions during the last five years which were funded internally. At April 30, 1992, total debt to capital was a conservative 22.4 percent.
 Strong cash flow from operations has allowed DCI to fund its capital requirements while managing its debt. During fiscal 1991, a recessionary year, cash flow from operations was 84.5 percent of total debt and 178.6 percent of capital expenditure and dividend requirements. Over the last five years, cash flow from operations of $153.1 million was 174.4 percent of capital expenditure and dividend requirements.
 Donaldson is a global manufacturer of engine (67 percent of 1991 sales) and industrial (33 percent of 1991 sales) filtration products. Engine products are first fit devices used for air, liquid, and exhaust filtration. The end users of these products are original equipment diesel engine manufacturers, their dealers, and independent wholesale distributors. Industrial products, used for dust collection, gas turbine, or high purity applications, are sold through a direct sales network to original equipment manufacturers and independent distributors.
 -0- 6/24/92
 /CONTACT: Donald H. Powell of Fitch, 212-908-0570/
 (DCI) CO: Donaldson Co. Inc. ST: Minnesota IN: SU: RTG


PS -- NY028 -- 3245 06/24/92 11:24 EDT
COPYRIGHT 1992 PR Newswire Association LLC
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 1992 Gale, Cengage Learning. All rights reserved.

Article Details
Printer friendly Cite/link Email Feedback
Publication:PR Newswire
Date:Jun 24, 1992
Words:393
Previous Article:DIRECTORS, OFFICERS OF NONPROFITS SHOW GREATER CONCERN FOR LIABILITY INSURANCE; EMPLOYEES FILING MOST COMPLAINTS, WYATT STUDY FINDS
Next Article:BOARD NAMES RICHARD A. THOMPSON MICROLOG PRESIDENT AND CHIEF OPERATING OFFICER
Topics:


Related Articles
JACKSONVILLE ELECTRIC AUTHORITY $77 MILLION CP RATED 'F-1+' BY FITCH -- FITCH FINANCIAL WIRE --
MICHCON 'A' BONDS, PREFERRED AFFIRMED, CP RATED 'F-1' BY FITCH -- FITCH FINANCIAL WIRE --
VIRGINIA ELECTRIC $370 MILLION SENIOR DEBT RATED 'A+' BY FITCH -- FITCH FINANCIAL WIRE --
Westinghouse Electric $350 Million Senior Unsecured Notes Rated 'A' By Fitch -- FITCH FINANCIAL WIRE --
MIDWEST POWER SENIOR DEBT 'A', CP 'F-1' BY FITCH AFTER MERGER -- FITCH FINANCIAL WIRE --
CORRECTION TO MIDWEST POWER SENIOR DEBT 'A', CP 'F-1' BY FITCH AFTER MERGER
BOSTON WATER & SEWER COMMISSION'S REVENUE BONDS RATED 'A+' BY FITCH -- FITCH FINANCIAL WIRE --
GRANT COUNTY (WA) PUBLIC UTILITY DISTRICT SECOND SERIES BONDS 'AA-' BY FITCH -- FITCH FINANCIAL WIRE --
IBM CORP. UNITS 'A' SENIOR DEBT AFFIRMED BY FITCH AFTER SALE ANNOUNCEMENT -- FITCH FINANCIAL WIRE --
DONALDSON CO., INC. 'F-1' CP, 'A' SR DEBT AFFIRMED BY FITCH -- FITCH FINANCIAL WIRE --

Terms of use | Copyright © 2016 Farlex, Inc. | Feedback | For webmasters