Q3 2024 Donaldson Company Inc Earnings Call Transcript
Key Points
- Sales increased 6% to a record $928 million.
- EPS increased 22% to a record $0.92.
- Operating margin reached a decade-long high.
- All three operating segments demonstrated growth and profitability.
- Strong performance in mobile solutions with a pretax profit margin hitting an all-time high of 18.4%.
- Sales in China decreased 32% year-over-year due to weak demand and timing of Chinese New Year.
- On-road sales declined 6% due to lower levels of equipment production, particularly in APAC.
- Off-road sales declined 10% as agriculture markets remain soft and business in China continues to be weak.
- Life sciences segment's full-year profit margins are expected to be down low single digits.
- Operating expenses as a percent of sales increased to 20.1% from 18.8% a year ago, largely due to higher people-related costs and acquisition-related expenses.
Thank you for standing by and welcome to the Donaldson Company third-quarter 2024 earnings conference call. (Operator instructions)
Thank you. I'd now like to turn the call over to Sarika Dhadwal, Senior Director of Investor Relations and ESG. You may begin.
Good morning. Thank you for joining Donaldson's third-quarter fiscal 2024 earnings conference call. With me today are Tod Carpenter, Chairman, CEO and President; and Scott Robinson, Chief Financial officer. This morning, Tod and Scott will provide a summary of our third-quarter performance and details on our outlook for fiscal 2024.
During today's call, we will discuss non-GAAP or adjusted results. Well, there were no non-GAAP adjustments in the third quarter of either fiscal 2024 or 2023, for the full year fiscal 2023, non-GAAP results exclude pretax restructuring and other charges of $21.8 million. A reconciliation of GAAP to non-GAAP metrics is provided within the schedules attached to this morning's press release. Additionally
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