Donaldson Company Q1 2015 sales down by $11.1 millionStaff writer ▼ | November 21, 2014
Donaldson Company announced its financial results for its fiscal 2015 first quarter. The impact of foreign currency translation decreased sales by $11.1 million, or 1.9 percent, during the first quarter.
1.9 percent Donaldson saw a slight decrease
Gross margin was 35 percent versus 35.8 percent in last year's first quarter. The year-over-year decrease is primarily attributable to the negative impact of lower fixed cost absorption due to a decrease in company's production volumes, primarily outside the U.S.
These decreases were partially offset by benefits from company's ongoing Continuous Improvement initiatives and the positive mix impacts from company's higher aftermarket sales.
Operating expenses for the quarter were $132.1 million, up 7.7 percent from the prior year's $122.6 million. The increase was primarily attributable to higher compensation expenses, employee benefit costs in the U.S., and company's Global ERP Project. Amortization and integration expenses related to company's acquisition of Northern Technical were approximately $1 million in the quarter.
Our operating margin for the quarter was 12.9 percent, down 240 basis points from the prior year.
As part of company's ongoing share repurchase program we repurchased 3,342,000 shares, or 2.3 percent of company's diluted outstanding shares, for $134.3 million during the quarter. ■