Donaldson Company

Donaldson Company Inc.
public
Traded as NYSE: DCI
Industry Filtration Engines
Membranes Gas Turbines
Valves Hydraulics
Founded 1915
Headquarters Bloomington, Minnesota
Key people
 Tod E. Carpenter Chief Executive Officer, President and Director
Scott Robinson, Chief Financial Officer
Jim Shaw, Chief Finance Compliance Officer
Revenue Steady$2371.213 mil 2015 FY[1]
$288.3 mil Decrease19.0% 2014 FY[2]
$208.1 Decrease20.0% 2014 FY[2]
Total assets $1.8095 bil (Nov 2015)Decrease7%
Number of employees
 12,500 (March 23, 2016)
Divisions Engine
Industrial
Website Donaldson Company

Donaldson Company, Inc. is a vertically integrated filtration company engaged in the production and marketing of products used as a means to improve performance efficiency and air quality. Its products are used by a variety of industry sectors, including commercial/industrial (engines, exhausts, transmissions, vents in private vehicles, hydraulics), aerospace (helicopters, planes), chemical, alternative energy (windmills) and pharmaceuticals.

As a multinational company it operates in Belgium, Mexico, China, UK, Thailand, USA, Russia,[3] Japan, Italy, Germany and France. In fiscal year 2015 33.0% of operating income came from business in the Asia-Pacific region (was 33.8% in 2014), 33.3% from Europe (33.7% in 2014) and 15.7% from the US (20.3% in 2014).[2][4][5] The company also makes aftermarket parts.

There was significant growth in the size of the company in terms of market value in 2009, going from about $2 billion at the start of the year to $3.26 billion in May 2010.[6][7] Although sales were steady between 2007 and 2010 long term debt rose 98.6% over that period; Long term debt increased 44% in 2008 and remained near that level until January 2011 when it fell 17% quarter to quarter (then fell a further 3% by January 2012).[5] No single customer contributes more than 10% of revenue.

The company has been recognized for innovations made in air filter technology (since 2008 annual spending on research and development has exceeded $40.6 million).[8] It has also participated in technological advancements associated with fuel cells.[9]

History

Started as Donaldson Engineering, a small business built around Frank Donaldson's air intake filter invention (engine air cleaner).[10] The business was incorporated in 1915 by Donaldson, his parents and his siblings as Donaldson Company Inc.[11]

In the first decade Donaldson Company made two important moves, it acquired the Wilcox-Bennet air filter license and introduced a new kind of filter the Simplex, used to prevent engine damage. Deere & Company was the company's most important client during the first couple decades. The early 1930s brought additional prosperity when William Lowther joined the company and designed the NS Filter, a tractor performance enhancing filter invented by Frank Donaldson. The 1930s were a transitionary period, at the beginning of the decade it was forced to contract in size due to tough economic conditions in the United States causing business from farmers to fall however, the sale of patents to influential investors provided the funds and market exposure it needed to survive and grow (part of the agreement was that Donaldson Company produce the filters). World War II provided opportunities for the company to expand into aerospace and military hydraulic equipment and device filters.

The 1950s were bittersweet, the company gained market share, grew in size and went public (1955) but was faced with employee strikes, the exodus of key employees (who started a new company to compete with Donaldson for market share) and IRS charges of hidden back taxes.[10]

In the 1960s subsidiaries were established in Germany, South Africa, Britain, France, Australia and Benelux.

Key dates and events

Divisions and Subsidiaries

Subsidiaries are grouped based on the products they deal in: engine, industrial, aerospace or pharmaceutical applications. The 2 core business segments are Engine Products and Industrial Products.

Products in the Engine Products segment consist of air filtration systems, exhaust and emissions systems, liquid filtration systems including hydraulics, fuel, and lube systems, and replacement filters. The Engine Products segment sells to original equipment manufacturers (OEMs) in the construction, mining, agriculture, aerospace, defense, and truck markets, and to independent distributors, OEM dealer networks, private label accounts, and large equipment fleets.[18]

Products in the Industrial Products segment consist of dust, fume, and mist collectors, compressed air purification systems, air filtration systems for gas turbines, PTFE membrane-based products, and specialized air and gas filtration systems for applications including computer hard disk drives and semi-conductor manufacturing. The Industrial Products segment sells to various industrial dealers, distributors, OEMs of gas-fired turbines, and OEMs and end-users requiring clean filtration solutions and replacement filters.[18]

The company delivered revenue of $2.4 billion in fiscal year 2015 (compared to $2.5 billion in fiscal year 2014) through its diversified portfolio of Engine and Industrial filtration products, with roughly 60% of total sales being generated outside the U.S. Donaldson operates a network of approximately 140 sales, manufacturing and distribution locations in 44 countries across the world.[18]

In fiscal year 2015 the Engine Products segment contributed to 63% of total net sales and Industrial Products segment contributed 37%. Aftermarket Products in the Engine segment made up 41% of total net sales.[18]

Awards

2014 - Master of Quality Award from Daimler Trucks North America (DTNA)

2016 - Awarded a Supplier Award for Aftermarket Excellence by Volvo Group Purchasing for the second consecutive year [19]

References

  1. ↑ "Donaldson Company Annual Report 2015". November 10, 2015.
  2. 1 2 3 "Donaldson Company Annual Report 2013". September 27, 2013.
  3. ↑ "Donaldson in Russia". 2013-06-19.
  4. ↑ "Donaldson Company Inc 2011 SEC 10-K Report" (PDF). 2012.
  5. 1 2 "Donaldson Company 2010 Fiscal Year SEC 10-K Form". 2010-09-24.
  6. ↑ "Donaldson Net Rises; Phillips-Van Heusen Net Loss". 2010-05-25.
  7. ↑ "Donaldson:Looks Like the Streak Is Over". 2009-02-26.
  8. ↑ "Donaldson Recognized by Frost & Sullivan for Product Innovation in Automotive Air Filters Aftermarket". 2006-02-14.
  9. ↑ "Donaldson Company and Los Alamos National Laboratory Join Forces". 2003-04-22.
  10. 1 2 about Donaldson
  11. ↑ Donaldson Company History
  12. ↑ "Donaldson Company, Inc. - Company Profile, Information, Business Description, History, Background Information on Donaldson Company, Inc.". www.referenceforbusiness.com. Retrieved 2016-03-23.
  13. ↑ "Donaldson Company". Securities and Exchange Commission. 2001-07-31.
  14. ↑ "Donaldson Company Announces Agreement to Acquire Ultrafilter international AG". business wire. 2002-06-13.
  15. ↑ "Kaman Industrial Technologies". 2007-10-01.
  16. ↑ "Donaldson Company Acquires Aerospace Filtration Systems, Inc.". 2007-03-01.
  17. ↑ "Donaldson Opens New Facilities in Colombia and Poland to Support Growth | Business Wire". www.businesswire.com. Retrieved 2016-03-23.
  18. 1 2 3 4 ":DCI Annual Report 10-K Filling". quote.morningstar.com. Retrieved 2016-03-23.
  19. ↑ "Volvo Group Purchasing Recognizes Donaldson Co. With Aftermarket Excellence Award". aftermarketNews. Retrieved 2016-03-23.
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