Donaldson Company
Encyclopedia
Donaldson Company, Inc. is a vertically integrated filtration
company engaged in the production and marketing of products used as a means to improve performance efficiency
and air quality. Its products are used by various industry sectors ranging from commercial/industrial (engines, exhausts, transmissions of all types of vehicles, vents in private vehicles, hydraulics of pipelines, windmills and other equipment), aerospace (helicopters, planes) to chemical producers requiring membranes of various fiber sizes. The company also plays a key role in the alternative energy and pharmaceutical industries by providing self cleaning, temperature balancing air systems in rotating devices involved in energy production, and filters used to prevent contamination of chemicals in research facilities. As a multinational company it operates in Belgium, Mexico, China, UK, Thailand, USA, Japan, Italy, Germany and France. In the 2010 fiscal year 45.3% of operating income came from business in the Asia, Pacific region (was 37.9% in 2008), 24.6% from Europe (was 43.3% in 2008) and 19.7% from the US. It is also an aftermarket parts
supplier.
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. Although sales were steady between 2007 and 2010 long term debt rose 98.6% over that period. No single customer contributes more than 10% to Donaldson's revenue (Caterpillar
is the largest at 10%).
The company has been recognized for innovations it made in air filter technology (it has spent at least $40.6 million each year since 2008 on research and development). Also it has been involved in technological advancements associated with fuel cells.
in 1915 by Donaldson, his parents and his siblings as Donaldson Company Inc.
During the first decade Donaldson Company made two important moves, it acquired the Wilcox-Bennet air filter license and introduced a new kind of filter, the Simplex used to prevent 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 that was invented by Frank Donaldson. The 1930s were a transitionary period for the company, at the beginning of the decade it was forced to contract in size due to tough economic conditions in the United States causing business from farmers to fall however the sale of patents to influential investors provided the funds and market exposure it needed to survive and grow (part of the agreement was that Donaldson Company produce the filters). World War II provided an opportunity for the company to expand into aerospace and military hydraulic equipment and device filters.
The 1950s were bittersweet, the company gained market share, grew in size and went public (1955) but was faced with 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.
In the 1960s subsidiaries were established in Germany, South Africa, Britain, France, Australia and Benelux.
Key dates and events
The 2 core business segments are
Industrial includes all business involved in the filtration of computer disk drives and commercial plant emissions as well as applications which enhance the performance of air compressors and rotating turbines. This segment accounted for 40% of revenue in the fourth quarter of 2010 down from 42.9% in the 2nd half of 2009.
Engine customers include OEM
of many different types of commercial and private vehicles. Engine Products accounted for 60% of revenue in the fourth quarter of 2010 up from 57.1% in the 2nd half of 2009 (60.2% of which was aftermarket parts, 11.7% was business related to aerospace and defense).
The business lines with growing importance are after market parts (35% of total sales in 2010 compared to 28-29% in 2008 and 2009) and special applications products (10% up from 8% the two previous years). Aerospace and defense and offroad products have been steady (6% and 4% respectively) while all other business lines have decreased some more than others (gas turbine products down to 8% from 10 and 11% the two previous years and industrial filtration solutions products down to 24% from 27% in 2008 and 2009)
Filtration
Filtration is commonly the mechanical or physical operation which is used for the separation of solids from fluids by interposing a medium through which only the fluid can pass...
company engaged in the production and marketing of products used as a means to improve performance efficiency
Efficiency
Efficiency in general describes the extent to which time or effort is well used for the intended task or purpose. It is often used with the specific purpose of relaying the capability of a specific application of effort to produce a specific outcome effectively with a minimum amount or quantity of...
and air quality. Its products are used by various industry sectors ranging from commercial/industrial (engines, exhausts, transmissions of all types of vehicles, vents in private vehicles, hydraulics of pipelines, windmills and other equipment), aerospace (helicopters, planes) to chemical producers requiring membranes of various fiber sizes. The company also plays a key role in the alternative energy and pharmaceutical industries by providing self cleaning, temperature balancing air systems in rotating devices involved in energy production, and filters used to prevent contamination of chemicals in research facilities. As a multinational company it operates in Belgium, Mexico, China, UK, Thailand, USA, Japan, Italy, Germany and France. In the 2010 fiscal year 45.3% of operating income came from business in the Asia, Pacific region (was 37.9% in 2008), 24.6% from Europe (was 43.3% in 2008) and 19.7% from the US. It is also an aftermarket parts
After-market (general)
After-market refers to any market where the customers who purchase one product or service are likely to purchase a related, follow-on product....
supplier.
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. Although sales were steady between 2007 and 2010 long term debt rose 98.6% over that period. No single customer contributes more than 10% to Donaldson's revenue (Caterpillar
Caterpillar
Caterpillars are the larval form of members of the order Lepidoptera . They are mostly herbivorous in food habit, although some species are insectivorous. Caterpillars are voracious feeders and many of them are considered to be pests in agriculture...
is the largest at 10%).
The company has been recognized for innovations it made in air filter technology (it has spent at least $40.6 million each year since 2008 on research and development). Also it has been involved in technological advancements associated with fuel cells.
History
Started as Donaldson Engineering, a small business built around Frank Donaldson's air intake filter invention (engine air cleaner). The business was incorporatedIncorporation (business)
Incorporation is the forming of a new corporation . The corporation may be a business, a non-profit organisation, sports club, or a government of a new city or town...
in 1915 by Donaldson, his parents and his siblings as Donaldson Company Inc.
During the first decade Donaldson Company made two important moves, it acquired the Wilcox-Bennet air filter license and introduced a new kind of filter, the Simplex used to prevent engine damage. Deere & Company
Deere & Company
Deere & Company, usually known by its brand name John Deere , is an American corporation based in Moline, Illinois, and the leading manufacturer of agricultural machinery in the world. In 2010, it was listed as 107th in the Fortune 500 ranking...
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 that was invented by Frank Donaldson. The 1930s were a transitionary period for the company, at the beginning of the decade it was forced to contract in size due to tough economic conditions in the United States causing business from farmers to fall however the sale of patents to influential investors provided the funds and market exposure it needed to survive and grow (part of the agreement was that Donaldson Company produce the filters). World War II provided an opportunity for the company to expand into aerospace and military hydraulic equipment and device filters.
The 1950s were bittersweet, the company gained market share, grew in size and went public (1955) but was faced with 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.
In the 1960s subsidiaries were established in Germany, South Africa, Britain, France, Australia and Benelux.
Key dates and events
- 1938 - First production facility abroad (Canada)
- 1942 - Frank Donaldson died his son Frank jr. eventually replaced him as president in 1951
- 1960 - International expansion
- 1973 - Acquired Torit Corp. and Majac Inc. (both involved in air dust filtration)
- 1975 - new hydraulic fluid filtration system created
- 1984 - Forced to enter new markets (through acquisitions) and restructure due to recessionary affects on major customers like John Deere Tractor CompanyDeere & CompanyDeere & Company, usually known by its brand name John Deere , is an American corporation based in Moline, Illinois, and the leading manufacturer of agricultural machinery in the world. In 2010, it was listed as 107th in the Fortune 500 ranking...
- 1996 - Acquired French muffler manufacturer Tecnov
- 1997 - Launched Donaldson Korea Company.
- 1999 - Began producing in China (computer disk drive) and purchased AirMaze Corp for $31.9 million
- 2000 - Acquired England based company DCE dust control for $56.4 million
- 2002 - Acquired industrial parts maker Ultrafilter International AG for $68 million. Ultrafilter had sales of $100 million and operated in 30 countries.
- 2007 - Purchased outright Aerospace Filtration Systems a company that had 18 million in sales the year before. Made a distribution agreement with Kaman Industrial Technologies
Divisions and Subsidiaries
Numerous subsidiaries are grouped based on whether their products are related to engine, industrial, aerospace or pharmaceutical applications.The 2 core business segments are
Industrial includes all business involved in the filtration of computer disk drives and commercial plant emissions as well as applications which enhance the performance of air compressors and rotating turbines. This segment accounted for 40% of revenue in the fourth quarter of 2010 down from 42.9% in the 2nd half of 2009.
Engine customers include OEM
OEM
OEM means the original manufacturer of a component for a product, which may be resold by another company.OEM may also refer to:-Computing:* OEM font, or OEM-US, the original character set of the IBM PC, circa 1981...
of many different types of commercial and private vehicles. Engine Products accounted for 60% of revenue in the fourth quarter of 2010 up from 57.1% in the 2nd half of 2009 (60.2% of which was aftermarket parts, 11.7% was business related to aerospace and defense).
The business lines with growing importance are after market parts (35% of total sales in 2010 compared to 28-29% in 2008 and 2009) and special applications products (10% up from 8% the two previous years). Aerospace and defense and offroad products have been steady (6% and 4% respectively) while all other business lines have decreased some more than others (gas turbine products down to 8% from 10 and 11% the two previous years and industrial filtration solutions products down to 24% from 27% in 2008 and 2009)