Donaldson Company

Last updated
Donaldson Company, Inc.
Company type Public
NYSE:  DCI
S&P 400 Component
Industry Filtration Engines
Membranes Gas Turbines
Valves Hydraulics
Founded1915
Headquarters Bloomington, Minnesota, U.S.
Key people
Tod E. Carpenter Chief Executive Officer, President and Director
Scott Robinson, Chief Financial Officer
RevenueSteady2.svg $2220.3 mil Decrease2.svg6.4% 2016 FY [1] [2]
$274.2 mil Decrease2.svg4.9% 2016 FY [1] [3]
$190.8 Decrease2.svg8.3% 2016 FY [1]
Total assets $1.7886 bil (July 2016)Steady2.svg
Number of employees
11,700 (July 31, 2016)
Divisions Engine
Industrial
Website Donaldson Company

Donaldson Company, Inc. is a vertically integrated filtration company engaged in the production and marketing of air filters used in 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. Also the company's research division, located in Minneapolis, Minn., participated in defense-related projects for various military applications ( see below ).

Contents

As a multinational company it operates in Belgium, Mexico, China, UK, Czech Republic, Malaysia, Thailand, USA, South Africa, Russia, [4] Japan, Italy, Germany and France. In fiscal year 2016 20.3% of sales came from business in the Asia-Pacific region (up from 19.9%), 28.5% from Europe (vs 28.3%) and 42.2% from the US (42.5% in 2015). [1] 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. [5] [6] 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). 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). [7] It has also participated in technological advancements associated with fuel cells. [8]

Donaldson Company is generally well-regarded for its innovative culture and a strong benefits package, which includes 401(k) matching and healthcare.

History

Started as Donaldson Engineering, a small business built around Frank Donaldson's air intake filter invention (engine air cleaner). [9] Frank Donaldson invented the air intake filter while repairing a tractor in Utah. The business was incorporated in 1915 by Donaldson, his parents and his siblings as Donaldson Company Inc. [10]

In its first decade, Donaldson Company made two important moves; it acquired the Wilcox-Bennet air filter license and introduced the Simplex, a filter that also prevents 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 1930’s were a transitional period, beginning with tough economic conditions in the United States which caused business from farmers to fall and subsequently forcing the company to contract in size. This was later followed by the sale of patents to influential investors provided the company with funds and market exposure 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. While the company gained market share, grew in size and went public in 1955, it was beset by 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. [9]

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), with the two core business segments being 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 semiconductor 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 of the US. Donaldson operates a network of approximately 140 sales, manufacturing and distribution locations in 44 countries across the world. [18]

Donaldson silencers were used for reducing venting noise levels in the Deaerator equipment industry in the 1980s and 1990s. 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. These percentages were the same in both 2016 and 2015. [18]

In November 2021, Donaldson Company acquired Italy-based Solaris Biotechnology Slr for more than $46 million. [19]

USMC-081229-M-2700C-676.jpg
Donaldson-developed air filtration subsystem of AGT-1500 engine turbine

Since the early Cold War years, the company's research division has continuously participated in government-funded research projects for various military applications. Its focus mainly being on advanced development of modularized, collective protection for military vehicles, vans and shelters, [20] nuclear, biological and chemical protection, development of CBRN defense systems (primarily for detection and warning of chemically contaminated environment, air and/or surface decontamination equipment,) for combat vehicles and manpower in the field, intended for use with all military branches of the United States Armed Forces, [21] air filtration systems for missile systems and space vehicles, [22] M1 Abrams main battle tank turbine engines, [23] and complex military equipment such as the AN/TPQ-36 and AN/TPQ-37 Firefinder radars. [24] Donaldson-developed chemical defensive material includes protective clothing and equipment to secure area and enclosures/compartments from chemical contamination, protect military personnel and individual soldiers from chemical agents; collective protection shelters for certain military headquarters and military communications functions, for rest and relief, and for certain vehicle crews; manual and automatic detection and warning devices that respond to toxic agents on all surfaces, in the atmosphere, and in food and water; means to decontaminate skin, clothing, equipment, terrain, food, and water. [25]

Awards

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

2015, 2016 - Award for Aftermarket Excellence by Volvo Group Purchasing in consecutive years [26]

Related Research Articles

<span class="mw-page-title-main">Cooper Industries</span> American worldwide electrical products manufacturer

Cooper Industries was an American worldwide electrical products manufacturer headquartered in Houston, Texas. Founded in 1833, the company had seven operating divisions including Bussmann electrical and electronic fuses; Crouse-Hinds and CEAG explosion-proof electrical equipment; Halo and Metalux lighting fixtures; and Kyle and McGraw-Edison power systems products.

The automotive aftermarket is the secondary parts market of the automotive industry, concerned with the manufacturing, remanufacturing, distribution, retailing, and installation of all vehicle parts, chemicals, equipment, and accessories, after the sale of the automobile by the original equipment manufacturer (OEM) to the consumer. The parts, accessories, etc. for sale may or may not be manufactured by the OEM.

<span class="mw-page-title-main">Parker Hannifin</span> American technology firm

Parker-Hannifin Corporation, originally Parker Appliance Company, usually referred to as just Parker, is an American corporation specializing in motion and control technologies. Its corporate headquarters are in Mayfield Heights, Ohio, in Greater Cleveland.

<span class="mw-page-title-main">AlliedSignal</span> Defunct American aerospace, automotive and engineering company

AlliedSignal, Inc. was an American aerospace, automotive and engineering company, created through the 1985 merger of Allied Corp. and The Signal Companies. It purchased Honeywell for $14.8 billion in 1999, and adopted the Honeywell name and identity.

Teledyne Technologies Incorporated is an American industrial conglomerate. It was founded in 1960, as Teledyne, Inc., by Henry Singleton and George Kozmetsky.

<span class="mw-page-title-main">Cummins</span> American engines and related technology company

Cummins Inc. is an American multinational corporation that designs, manufactures, and distributes engines, filtration, and power generation products. Cummins also services engines and related equipment, including fuel systems, controls, air handling, filtration, emission control, electrical power generation systems, and trucks.

Moog Inc. is an American-based designer and manufacturer of electric, electro-hydraulic and hydraulic motion, controls and systems for applications in aerospace, defense, industrial and medical devices. The company operates under four segments: aircraft controls, space and defense controls, industrial controls, and components. Moog is headquartered in Elma, New York, and has sales, engineering, and manufacturing facilities in twenty-six countries.

Zodiac Aerospace was a French aerospace group, active from 1896 to 2018, that supplied systems and equipment for aircraft. In October 2018, it was acquired by French aerospace and defense company Safran.

Federal-Mogul Corporation is an American developer, manufacturer, and supplier of products for automotive, commercial, aerospace, marine, rail, and off-road vehicles, as well as industrial, agricultural, and power-generation applications. It was acquired in February 2022 by Apollo Global Management.

BorgWarner Inc. is an American automotive and e-mobility supplier headquartered in Auburn Hills, Michigan. As of 2022, the company maintains production facilities and sites at 92 locations in 24 countries, and generates revenues of US$15.8 billion, while employing around 52,000 people. The company is one of the 25 largest automotive suppliers in the world.

Pall Corporation, headquartered in Port Washington, New York and a wholly owned subsidiary of Danaher Corporation since 2015, is a global supplier of filtration, separations and purification products. Total revenues for fiscal year 2014 were $2.8 billion, with $103 million spent on R&D. Pall Corporation's business is split into two broad groups: Life Sciences (c.51%) and Industrial (c.49%). These business groups provide fluid management products and systems to customers in biotechnology, pharmaceutical, transfusion medicine, energy, electronics, municipal and industrial water purification, aerospace, transportation and broad industrial markets.

<span class="mw-page-title-main">TE Connectivity</span> Irish-domiciled technology company

TE Connectivity plc is an Irish-domiciled technology company that designs and manufactures electrical and electronic products for several industries, including automotive, aerospace, defense, medical, and energy.

<span class="mw-page-title-main">Dover Corporation</span> American industrial conglomerate corporation

Dover Corporation is an American conglomerate manufacturer of industrial products. The Downers Grove, Illinois-based company was founded in 1955. As of 2021, Dover's business was divided into five segments: Engineered Products, Clean Energy and Fueling, Imaging & Identification, Pumps & Process Solutions and Climate and Sustainability Technologies. Dover is a constituent of the S&P 500 index and trades on the New York Stock Exchange under "DOV." Dover was ranked 445 in the 2023 Fortune 500. The company relocated its headquarters to Illinois from New York in mid-2010.

<span class="mw-page-title-main">Precision Castparts Corp.</span> American manufacturing company

Precision Castparts Corp. is an American industrial goods and metal fabrication company that manufactures investment castings, forged components, and airfoil castings for use in the aerospace, industrial gas turbine, and defense industries. In 2009 it ranked 362nd on the Fortune 500 list, and 11th in the aerospace and defense industry. In 2015 it ranked 322nd overall and 9th in the aerospace and defense industry. In 2014 it ranked 133rd on the S&P 500 based on market capitalization. In January 2016, the company became a wholly owned subsidiary of Berkshire Hathaway. Before that event, it used to be one of the three Fortune 500 companies headquartered in Oregon.

Héroux-Devtek Inc. is an international company specializing in the design, development, manufacture, repair and overhaul of landing gear, actuation systems and components for the aerospace market. Founded in 1942, the company's head office is located in Longueuil, Quebec. Héroux-Devtek Inc. has more than 1960 employees working in 18 facilities in North America and Europe. The corporation is the third-largest landing gear company worldwide, supplying both the commercial and defence sectors of the Aerospace market with new landing gear systems and components, as well as aftermarket products and services. It also manufactures actuation systems as well as ball screws. Héroux-Devtek's accomplishments include the manufacturing of the landing gear for the lunar module that landed Neil Armstrong on the moon for the Apollo 11 mission in 1969.

<span class="mw-page-title-main">Mahle GmbH</span> German automotive parts manufacturer

MAHLE GmbH is a German automotive parts manufacturer based in Stuttgart, Germany. It is one of the largest automotive suppliers worldwide. As a manufacturer of components and systems for the combustion engine and its periphery, the company is one of the three largest systems suppliers worldwide for engine systems, filtration, electrics, mechatronics, and thermal management. In 2018, Mahle's sales amounted to over €12.5 billion.

Ingersoll Rand Inc. is an American multinational company that provides flow creation and industrial products. The company was formed in February 2020 through the spinoff of the industrial segment of Ingersoll-Rand plc and its merger with Gardner Denver. Its products are sold under more than 40 brands across all major global markets.

Triumph Group, Inc. is an American supplier of aerospace services, structures, systems and support. Based in Radnor, Pennsylvania, United States, Triumph engineers, designs, and manufactures aircraft components, systems, and accessories. Several services and products are offered through three of their operating organizations, Integrated Systems, Aerospace Structures, and Product Support.

CLARCOR Inc. was a manufacturer of filtration systems and packaging materials based in Franklin, Tennessee. founded in Rockford, Illinois as JL Clark Manufacturing Co. by John Lewis Clark in 1904. It had approximately 30 manufacturing and distribution sites in the United States.

Sullair is a major American manufacturer of portable and stationary rotary screw air compressors designed for commercial and industrial use. Founded in 1965 in the town of Michigan City, Indiana U.S.A., Sullair has manufacturing facilities in Michigan City that distribute and service air compressor packages and systems worldwide. Sullair also has manufacturing facilities in Suzhou, Jiangsu and Shenzhen, Guangdong China that service the Asian and Australasian markets. Sullair also has offices in Dandenong South, Australia near Melbourne, and in Sunderland, United Kingdom that services markets in the EMEA and Russia.

References

  1. 1 2 3 4 "Donaldson Company Annual Report 2016" (PDF). September 23, 2016.
  2. ↑ "Donaldson Company Annual Report 2015". November 10, 2015.
  3. ↑ "DONALDSON CO INC, Form 10-K, Annual Report, Filing Date Sep 27, 2013" (PDF). secdatabase.com. Retrieved May 15, 2018.
  4. ↑ "Donaldson in Russia". 2013-06-19.
  5. ↑ "Donaldson Net Rises; Phillips-Van Heusen Net Loss". 2010-05-25. Archived from the original on 2011-07-07. Retrieved 2010-09-21.
  6. ↑ "Donaldson:Looks Like the Streak Is Over". 2009-02-26.
  7. ↑ "Donaldson Recognized by Frost & Sullivan for Product Innovation in Automotive Air Filters Aftermarket". 2006-02-14.
  8. ↑ "Donaldson Company and Los Alamos National Laboratory Join Forces". 2003-04-22. Archived from the original on 2016-03-04. Retrieved 2010-09-20.
  9. 1 2 "about Donaldson". Archived from the original on 2011-07-10. Retrieved 2010-09-20.
  10. ↑ Donaldson Company History
  11. ↑ "Donaldson Company, Inc. - Company Profile, Information, Business Description, History, Background Information on Donaldson Company, Inc". www.referenceforbusiness.com. Retrieved 2016-03-23.
  12. ↑ "26 Mar 1991, Page 16 - Star Tribune at Newspapers.com". Newspapers.com. Retrieved 2022-08-09.
  13. ↑ "DONALDSON CO INC, Form 10-K405, Filing Date Oct 26, 2001". secdatabase.com. Retrieved May 15, 2018.
  14. ↑ "Donaldson Company Announces Agreement to Acquire Ultrafilter international AG". business wire. 2002-06-13.
  15. ↑ "Kaman Industrial Technologies". 2007-10-01. Archived from the original on 2010-12-06. Retrieved 2010-09-20.
  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. ↑ "Bloomington-based Donaldson Buys Italian Biotech Firm for $46M". 30 November 2021. Retrieved 2021-11-30.
  20. ↑ Army RDT&E Contracts Exceed $1 Billion, Army Research and Development Newsmagazine, September 1967, vol. 8, no. 8, p. 15.
  21. ↑ Statement of Lt. Gen. William C. Gribble, Jr., United States Army, Chief of Research and Development, Department of Defense Appropriations for Fiscal Year 1972, pp. 1472-1473.
  22. ↑ Contracts and procurements, Missiles and Rockets, October 14, 1963, vol. 13, no. 16, p. 42.
  23. ↑ Statement of Maj. Gen. George Sammet, Jr., United States Army, Deputy Chief of Research and Development, Fiscal Year 1974 Authorization for Military Procurement, pt. 4, p. 2007.
  24. ↑ Army Weapon Systems 2000, p. 320, ISBN   0-16-050302-7.
  25. ↑ Statement of Lt. Gen. William C. Gribble, Jr., United States Army, Chief of Research and Development, Department of Defense Appropriations for Fiscal Year 1972, pp. 1495-1496.
  26. ↑ "Volvo Group Purchasing Recognizes Donaldson Co. With Aftermarket Excellence Award". aftermarketNews. Retrieved 2016-03-23.
This page is based on this Wikipedia article
Text is available under the CC BY-SA 4.0 license; additional terms may apply.
Images, videos and audio are available under their respective licenses.