Sales in both the Engine Products and Industrial Products segments grew 8.8% from the prior-year quarter, with all the business units in Engine Products posting year-over-year sales growth. In the Industrial Products segment, all the business units delivered sales increases on a year-over-year basis, except for Gas Turbine Systems, which posted a 3.1% decline in sales.
The company saw increases in total sales across all geographical regions except for Latin America. Both segments also posted sales growth across all regions, barring Latin America.
Donaldson increased its guidance for the full year of 2019 to reflect the effect of the BOFA acquisition. Full-year sales in total and for both segments are expected to increase 7-11%, including a negative impact from currency translation. Sales from BOFA are expected to add about 1% to total company sales, or 4% to Industrial sales.
The Engine sales forecast reflects growth in On-Road, Off-Road and Aftermarket, along with flat sales of Aerospace and Defense. Engine sales are expected to see a benefit of 1% from a revenue recognition accounting change. The Industrial forecast, which includes BOFA sales, reflects growth in Industrial Filtration Solutions, flat sales of Special Applications and a decline in Gas Turbine Systems.
Shares of Donaldson have gained 15.7% so far this year. The stock was down 5.4% at market open on Tuesday.