Donaldson Co.'s fiscal third quarter profit fell 31 percent amid softer demand for agriculture and mining products.
The Bloomington-based manufacturer of filtration systems for trucks, power plants, airplanes and construction and mining equipment warned investors on May 1 of lower-than-expected results due to turbulent market conditions. On that day, it lowered its 2015 earnings guidance for the third time in six months.
On Thursday, Donaldson reported a profit of $46.4 million, or 33 cents a share, for the quarter ended April 30. Revenue sunk 9 percent to $568 million. Currency translations reduced sales by $44 million.
Excluding a $5.2 million charge associated with severance and restructuring costs, earnings were 36 cents a share, which beat analysts' average expectations by a penny.
Donaldson's stock rose 2 percent to close at $36.42 Thursday.
Donaldson CEO Tod Carpenter said the results were in line with the company's revised guidance. He noted the "slowdown" of Donaldson's aftermarket engine parts business and "pressure" from "challenged" end markets that normally buy its off-road ag, mining and construction equipment. Only truck and plane filtration orders saw slight sales bumps.
"Although the end market pressures we saw are reflective of our customers' orders, we are taking further actions to improve our performance until business conditions rebound," said Carpenter, adding that officials intend to "aggressively manage expenses and margins."
In April, Donaldson cut about 1 percent of its 12,500 global workforce, including an unknown number from Minnesota. A spokesman said previously that fewer than 50 people would be laid off at the Bloomington headquarters.
Edward Jones stock analyst Matt Arnold said Carpenter expects to reduce costs this year by about $40 million. About $15 million to $20 million of those cost reductions are new. Arnold noted that all costs won't fall to the bottom line because "they still plan to do continued investments in distribution in international markets."