Donaldson Co. Inc. posted a record second-quarter profit of $26.9 million, a slight increase over last year's net income of $26.7 million. For 2006, profits are up 9% to $59.1 million, or 69 cents per share, from $54.1 million, or 62 cents per share, a year earlier.
The maker of filtration systems and replacement parts for diesel engines and industrial applications also reported its operating margin improved to 10.2% from 9.6% last year. "Donaldson is running very well with our continued focus on cost-reduction efforts offsetting higher commodity prices and driving the improvement in our profit margins," said Bill Cook, chairman, president and CEO of Donaldson, in a Feb. 28 statement. "We reduced our full-year sales outlook, mainly due to currency translation since the dollar is currently weaker against the euro and yen than it was in the second half of last year. However, we expect continued positive year-over-year sales growth and for operating margins to continue at these improved levels, giving us confidence in delivering our 17th consecutive year of record earnings."
The company expects high single-digit sales growth in the second half of 2006 for its engine products and mid single-digit sales growth for its industrial products.
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