Donaldson Co., Inc. engages in the manufacture of filtration systems and replacement parts. It operates through the following segments: Engine Products and Industrial Products. The Engine Products segment includes replacement filters for both air and liquid filtration applications, air filtration systems, liquid filtration systems for fuel, lube and hydraulic applications, and exhaust and emissions systems. The Industrial Products segment consist of dust, fume and mist collectors, compressed air purification systems, air filtration systems for gas turbines, polytetrafluoroethylene membrane-based products, and specialized air and gas filtration systems for applications as well as hard disk drives, and semi-conductor manufacturing. The company was founded by Frank Donaldson in 1915 and is headquartered in Minneapolis, MN.
Economic Environment - the demand for our products is impacted by economic, industrial and political conditions worldwide.
Products - maintaining a competitive advantage requires consistent investment with uncertain returns.
Evolving Customer Needs - disruptive technologies may threaten our growth in certain industries.
Competition - we participate in highly competitive markets with pricing pressure.
Intellectual Property - demand for our products may be affected by new entrants that copy our products and/or infringe on our intellectual property.
Global Operations - we have a broad footprint and global operations may present challenges.
Customer Concentration and Retention - a number of our customers operate in similar cyclical industries. Economic conditions in these industries could impact our sales.
Supply Chain - unavailable raw materials or significant demand fluctuations or material cost inflation.
Operations - inability to meet demand could result in the loss of customers.
Technology Investments and Security Risks - vulnerability with our information technology systems and security.
Currency - an unfavorable fluctuation in foreign currency exchange rates.
Legal and Regulatory - costs associated with lawsuits, investigations or complying with laws and regulations.
Income Tax - changes in our effective tax rate in various jurisdictions.
Personnel - our success may be affected if we are not able to attract, engage and retain qualified personnel.
Liquidity - changes in the capital and credit markets may negatively affect our ability to access financing to support strategic initiatives.
Acquisitions - the execution of our acquisition strategy may not provide the desired return on investment.
Impairment - if our operating units do not meet performance expectations, intangible assets could be subject to impairment.
Productivity Improvements - if we do not successfully manage productivity improvements, we may not realize the expected benefits.
Business Disruption - unexpected events, including natural disasters, may increase our cost of doing business or disrupt our operations.
Internal Controls - if we fail to maintain an effective system of internal control over financial reporting, we may not be able to accurately report our financial results and prevent material fraud, which could adversely affect the value of our common stock.
BREXIT - the United Kingdom’s decision to end its membership in the European Union could materially and adversely impact our results of operations, financial condition and cash flows.