Donaldson Company Inc (DCI) has reported a 9.67 percent rise in profit for the quarter ended Apr. 30, 2017. The company has earned $60.10 million, or $0.45 a share in the quarter, compared with $54.80 million, or $0.41 a share for the same period last year. On the other hand, adjusted net income for the quarter stood at $60.10 million, or $0.45 a share compared with $57.70 million or $0.43 a share, a year ago.
Revenue during the quarter grew 6.46 percent to $608.20 million from $571.30 million in the previous year period. Gross margin for the quarter expanded 36 basis points over the previous year period to 34.77 percent. Total expenses were 85.45 percent of quarterly revenues, down from 86.89 percent for the same period last year. This has led to an improvement of 144 basis points in operating margin to 14.55 percent.
Operating income for the quarter was $88.50 million, compared with $74.90 million in the previous year period.
However, the adjusted operating income for the quarter stood at $88.50 million compared to $79 million in the prior year period. At the same time, adjusted operating margin improved 72 basis points in the quarter to 14.55 percent from 13.83 percent in the last year period.
"Our employees are doing an excellent job executing our strategy while also supporting our customers as we react to stronger-than-expected demand in our Engine segment," said Tod Carpenter, president and chief executive officer. "We anticipate the strong growth in Engine, particularly in Off-Road and Aftermarket, carrying through the fourth quarter, resulting in full-year sales and profit that are both above our prior guidance.
For financial year 2017, the company forecasts operating income to grow in the range of 14 percent to 14.40 percent. The company expects diluted earnings per share to be in the range of $1.75 to $1.80. It expects diluted earnings per share to be in the range of $1.67 to $1.71 on adjusted basis.
Operating cash flow improves
Donaldson CompanyInc has generated cash of $224.10 million from operating activities during the nine month period, up 11 percent or $22.20 million, when compared with the last year period.
The company has spent $52.10 million cash to meet investing activities during the nine month period as against cash outgo of $44.30 million in the last year period.
The company has spent $117.70 million cash to carry out financing activities during the nine month period as against cash outgo of $101.50 million in the last year period.
Cash and cash equivalents stood at stood at $295.90 million as at Apr. 30, 2017.
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