(By Balachander) Donaldson Inc. (NYSE: DCI) posted a 21 percent drop in quarterly earnings amid lower sales and contraction of margins and the maker of filtration systems cuts its sales guidance assuming weaker demand from its Engine OEM and Disk Drive Customers.
Earnings declined to $54 million or $0.36 per share for the first quarter from $69 million or $0.45 per share in the corresponding period of last year.
Net sales fell 3 percent to $589 million from $608 million.
Wall Street analysts, on average, expected the company to earn $0.34 per share on sales of $584.7 million.
Gross margin shrank to 33.7 percent from 35.3 percent, mainly due to lower production volumes and the mix impact due to large Gas Turbine project shipments.
[Related -Donaldson (DCI) Q3 Misses Street; Cuts Guidance]
Looking ahead for the full year ending July 2013, the company continues to expect earnings per share in the range of $1.68 to $1.88, while analysts expect $1.76.
Sales growth are now projected to be zero to 4 percent from 1 percent to 5 percent increased projected earlier, while consensus estimate a rise of 2.90 percent.
DCI shares, which have been trading in the 52-week range between $30.51 and $38.89, closed Tuesday's regular trading session at $33.84.