Donaldson Co. beat fourth-quarter and fiscal-year earnings expectations, but revenue dropped and the stock fell about 2 percent in trading Tuesday.
Record fourth-quarter net earnings for the period ended July 31 were $72.6 million, or 48 cents a share. Revenue was $632.6 million, down about 4 percent. The company said revenue suffered from declines in engine-products sales in the United States and Asia, and from slower sales of industrial products.
Despite lower fourth-quarter sales, "we delivered higher operating income with a record operating margin of 15.8 percent," said CEO Bill Cook.
The Bloomington-based maker of filtration systems for factories, airplanes, trucks and other uses reported adjusted fourth-quarter earnings of 49 cents per share, up 4 percent, compared to an average Wall Street prediction of 45 cents. Full-year adjusted earnings were $1.66 per share, down 4 percent, compared to the analysts' estimate of $1.62.
Full-year net earnings were $247.4 million, or $1.64 per share. Revenue was $2.4 billion, down about 2 percent.
"We believe that many of our end markets have now stabilized and will begin to grow moderately during the second half of our fiscal year 2014," Cook said.
Donaldson said it expects fiscal 2014 sales to rise 1 to 5 percent to a range of $2.45 billion to $2.55 billion. Analysts had been expecting $2.52 billion. Full-year adjusted earnings per share are expected to range from $1.65 to $1.85. Analysts had been expecting $1.80 per share.
Donaldson shares fell 80 cents, or 2.2 percent, to $36.11.