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DONALDSON COMPANY ANNOUNCES RECORD SECOND-QUARTER RESULTS

 MINNEAPOLIS, Feb. 22 /PRNewswire/ -- Donaldson Company, Inc. (NYSE: DCI) today reported record second-quarter and six-month results for the period ended Jan. 31, 1993. For the quarter, sales of $125.0 million were up 10 percent from prior year's sales of $113.9 million. Net earnings of $5.2 million, or 37 cents per share, were up 6 percent from prior year's earnings of $4.9 million, or 36 cents per share.
 For the six-month period, sales of $250.7 million were up 10 percent compared to last year's sales of $227.0 million. Net earnings of $11.5 million, or 82 cents per share, were up 4 percent from last year's earnings of $11.1 million, or 79 cents per share.
 "Historically, the company's second quarter is negatively impacted be seasonal plant shutdowns around the world," said William A. Hodder, chairman, president and chief executive officer. "This year was no exception. We are pleased, however, to report record second-quarter sales and earnings.
 "In the second quarter, industrial product sales were up 17 percent with gas turbine filtrations sales being up more than 60 percent. This increase more than offset a 15 percent decline in high purity products sales which reflects lower disk drive filter revenues, primarily to IBM- Europe. Engine product sales were up 6 percent year-over-year, reflecting strong sales growth in our independent aftermarket and transportation markets.
 "For the quarter, gross margins of 26.8 percent improved from last year's level of 26.1 percent; the increase primarily relates to marked improvements in industrial product gross margins. Operating expenses, as a percentage of sales, increased to 20.7 percent from 19.8 percent last year; the increase relates to increased marketing expenses as well as the recognition of warranty reserves on diesel particulate trap sales.
 "Second quarter and year-to-date financial results continued to be negatively impacted by weakness in our overseas markets and the strengthening of the U.S. dollar. In particular, Brazil's economy remains depressed and we reported 3 cents per share of additional losses in Brazil in the quarter compared to the same period last year."
 Total backlogs of $127.5 million were down 5 percent from the same period last year and down 2 percent from the prior year end. Defense backlogs are down more than $8 million compared to the prior year, but the business has stabilized over the past six months. Hard order backlogs -- goods scheduled for delivery within 90 days -- of $84.4 million were down 7 percent from the same period last year and down 6 percent from 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, 10 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.
 DONALDSON COMPANY, INC.
 Consolidated Statements of Earnings
 For the periods ended Jan. 31
 (Thousands of dollars except per share amounts)
 Three Months Ended Six Months Ended
 Fiscal Fiscal Fiscal Fiscal
 1993 1992 1993 1992
 Net sales $125,047 $113,878 $250,725 $226,967
 Cost of sales 91,515 84,108 180,993 165,371
 Gross margin 33,532 29,770 69,732 61,596
 Operating expenses 25,896 22,532 51,139 44,510
 Other (income) (1,283) $(1,382) $(1,136) $(2,229)
 Interest expense 806 677 1,592 1,328
 Earnings before
 income taxes 8,113 7,943 18,137 17,987
 Income taxes 2,891 3,008 6,620 6,925
 Net earnings $5,222 $4,935 $11,517 $11,062
 Earnings per share $.37 $.36 $.82 $.79
 Weighted average
 number of shares
 outstanding 14,002,835 13,982,388 13,980,578 14,038,904
 -0- 2/22/93
 /CONTACT: John R. Schweers of Donaldson Company, 612-887-3014 or John Mackay of Padilla Speer Beardsley, 612-871-8877, for Donaldson/
 (DCI)


CO: Donaldson Company ST: Minnesota IN: SU: ERN

KH -- MN001 -- 8813 02/22/93 09:03 EST
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Date:Feb 22, 1993
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