Donaldson Co. Inc., the Bloomington-based technology led filtration company, saw its profits rise nearly 20% in its fiscal second quarter as inflation eased.
"Our robust second quarter earnings were driven by significant gross margin strength through pricing and the stabilization of inflationary pressures," said Tod Carpenter, Donaldson's chairman, president and chief executive in a news release.
Earnings for the quarter, which ended Jan. 31, were $86 million, or 70 cents a share. After backing out some non-recurring charges in the quarter adjusted EPS was 75 cents a share. Adjusted EPS was better than analysts expectations of 69 cents a share.
Sales in the quarter were $828.3 million, up 3.2% from the same quarter a year ago and 7.5% after adjusting for foreign currency translations. Gross margins improved 320 basis points over the year-ago quarter to 34.3%.
This was the first quarter Donaldson reported results under the company's new organizational structure that was instituted to better serve Donaldson's end market consumers. New reporting segments include Mobile Solutions, Industrial Solutions and a Life Sciences segment.
A reviving commercial aerospace industry helped the Industrial Solutions unit, which saw sales up 12.8% to $246.4 million. The new Life Sciences segment saw sales down 16% to $59 million, though saw potential in Donaldson's food and beverage and bioprocessing equipment lines.
Donaldson's largest segment Mobile Solutions includes filtration solutions in the the Off-Road and On-Road markets as well as corresponding Aftermarket sales.
Sales of Donaldson were trading at $65.47, up 3.5% in early trading Wednesday.
