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Donaldson Provides Updated Fiscal 2015 GuidanceDonaldson Company, Inc. (NYSE: DCI) today updated its guidance for fiscal 2015. "The second half of our fiscal year has been disappointing, driven by an unforeseen slowdown in our Engine Aftermarket distribution channels, further weakening in industrial conditions in China, continued softening in our Engine OEM Off-Road equipment end markets, and incremental pressure associated with the strong U.S. dollar, which we experienced throughout the third quarter," said Tod Carpenter, President and CEO of Donaldson. "Consistent with the commitment made during our second quarter earnings call, we executed productivity and restructuring actions during our third quarter that are expected to generate annual savings of $20 million. These savings are incremental to the future benefits we expect to realize through the previously announced decision to close our facility in Grinnell, Iowa. During our upcoming third quarter earnings call on May 21, we will provide details on additional actions that we are taking to further adjust our business to changing market conditions. "In local currency, we continue to see organic growth in our On-Road, Industrial Filtration Solutions, and Gas Turbine businesses. Despite uncertainty in the global industrial environment, we are strengthening our foundation for future growth as we continue to win new propriety first-fit programs in our Engine and Industrial segments. We have the right strategy, and I am confident that our business model, combined with our relentless focus on our Customers, will ensure our Company's future growth." Updated Fiscal 2015 Outlook
1 Beginning with its fiscal 215 second quarter, we provide adjusted operating margin and adjusted diluted earnings per share ("adjusted EPS") measures, which are non-GAAP financial measures that exclude the impact of certain matters not related to the Company's ongoing operations, including restructuring charges and expenses related to pension settlements. Engine Products: We now forecast full-year 2015 sales in U.S. dollars to decline 5 percent to 7 percent. In local currency, our sales are expected to be flat to down 2 percent.
Industrial Products: We now forecast full-year 2015 sales in U.S. dollars to decline 1 percent to 3 percent. In local currency, sales are expected to increase 4 percent to 6 percent.
Fiscal Third and Fourth Quarter Outlook for the Company
Miscellaneous We will discuss our revised fiscal 2015 outlook at 9:00 a.m. CDT (News - Alert) on Monday, May 4, during a live webcast. To participate, go to IR.Donaldson.com and click on the webcast icon. We will release our third quarter earnings on May 21. Details about the release will be available at IR.Donaldson.com (click on "Calendar of Events"). About Donaldson Company Founded 100 years ago, Donaldson (NYSE: DCI) is a global leader in the filtration industry. The Company's innovative filtration technologies improve people's lives, enhance Customers' equipment performance and protect the environment. More than 12,500 employees support Customers at 140 sales, manufacturing, and distribution locations. For more information, visit www.Donaldson.com. Forward-Looking Statements The Company desires to take advantage of the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995 (the "Act") and is making this cautionary statement in connection with such safe harbor legislation. This announcement contains forward-looking statements, including, without limitation, forecasts, plans, trends, and projections relating to our business and financial performance and global economic conditions, which involve uncertainties that could materially impact results. All statements other than statements of historical fact are forward-looking statements. These statements do not guarantee future performance. The Company wishes to caution investors that any forward-looking statements are subject to uncertainties and other risk factors that could cause actual results to differ materially from such statements, including but not limited to risks associated with: world economic factors and the ongoing economic uncertainty, the reduced demand for hard disk drive products with the increased use of flash memory, currency fluctuations, commodity prices, political factors, the Company's international operations, highly competitive markets, governmental laws and regulations, including the impact of the various economic stimulus and financial reform measures, the implementation of our new information technology systems, information security and data breaches, potential global events resulting in market instability including financial bailouts and defaults of sovereign nations, military and terrorist activities, including political unrest in the Middle East and Ukraine, health outbreaks, natural disasters, and all of the other risk factors included in our Annual Report on Form 10-K and Quarterly Reports on Form 10-Q. We undertake no obligation to publicly update or revise any forward-looking statements.
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