Donaldson Co. CEO Tod Carpenter said the Bloomington industrial-filtration company is in good shape financially despite a global downturn because of COVID-19.
Carpenter said in an earnings call Tuesday that the Asia-Pacific economy, led by China, is now in recovery mode, and Europe is beginning to stabilize.
The company said revenue for its quarter ended April 30 was down 11.7% to $629.7 million. Third-quarter net earnings were $63.4 million, or 50 cents a share, down about 15% from the same period a year ago.
Donaldson’s sales started to improve in April, and Carpenter said results were slightly better than anticipated.
“We are well-positioned to deal with continued unevenness, which will likely extend beyond the end of our fiscal year in July,” Carpenter said in the company’s earnings statement. “We have further enhanced our already-strong liquidity position, and we will maintain our historically disciplined approach to capital deployment, giving us necessary flexibility to respond to demand changes while continuing to prioritize investments in long-term capabilities.”
Despite the positive signs globally, uncertainty remains, so the company is withholding guidance for the remainder of the fiscal year and also for fiscal 2021.
Europe, despite stabilizing, is still in various stages of reopening, Carpenter said in the earnings call. North and South American markets remain challenging with varying degrees of government-mandated economic lockdowns still in effect.
Donaldson’s strategy is to support different regions of the world with manufacturing locations in more than 40 countries. That has given the company broad geographic diversity in responding to the global coronavirus pandemic and the ability to adjust production to local health, business and government conditions, company officials said.
Carpenter concluded the earnings call by addressing the events in the Twin Cities last week, offering condolences to the family of George Floyd, who died in Minneapolis police custody, and pledging that Donaldson is committed to sustainable change and is united with its local communities and the nation to stop cycles of discrimination.
Donaldson shares closed Tuesday at $49.04, up 2.3%. Year-to-date Donaldson share are down 14%.