Donaldson fails to meet expectations for fourth quarter

Facing challenging market conditions globally, Donaldson Co.'s reported fourth-quarter and full-year earnings that came in slightly below guidance and analyst expectations.

The Bloomington-based maker of filtration solutions for global industrial companies reported adjusted earnings per share (EPS) of 46 cents for the fourth quarter, up from 45 cents per share in the fourth quarter last year but below analyst expectations of 49 cents per share. Full-year adjusted EPS declined 3.8 percent to $1.52 per share, which missed analysts expectations by 2 cents per share.

The company had said in its third-quarter earnings release that it expected adjusted EPS for the year to be in the $1.53 to $1.59 per-share range.

"The markets presented significant challenges in the past year, and I am very proud of the dedication and resilience our employees have shown," President and CEO Tod Carpenter said in a statement. "As a company, we maintained an unwavering commitment to our customers while intensifying our focus on operational efficiency."

The company believes 2017 will be challenging as well but because of its focus on operational discipline, officials expect to show operating profit growth in 2017 despite another flat year for sales.

"Looking to fiscal 2017, we do not expect overall market conditions to improve meaningfully, so we will continue to press forward where we see opportunity," Carpenter said.

The company's net earnings for the quarter ended July 31 increased 5.5 percent to $59.5 million, or 44 cents per share. However, earnings for the year were down 8.3 percent to $190.8 million, or $1.42 per share.

In the company's earnings conference call the company said it expects full-year sales for fiscal 2017 to be within 2 percent of fiscal 2016 sales and that earnings per share are expected to be in the $1.50 to $1.66 range.

Shares of the company closed Thursday at $36.61, down 71 cents or 1.9 percent.