Donaldson sees FY24 mobile sales up 1%-5% y/y

For FY24: Mobile sales are forecast to increase between 1% and 5% versus 2023. Softening end-market conditions, including in China, are expected to drive a mid-single digit decline in Off-Road sales and flat On-Road sales versus prior year. Aftermarket sales are projected to increase mid-single digits as a result of higher vehicle utilization rates and market share gains. Industrial sales are expected to increase between 3% and 7% compared with prior year. Strength in Power Generation and dust collection sales is forecast to drive mid-single digit growth in IFS. Aerospace and Defense sales are projected to increase mid-single digits due to robust end-market conditions and market share gains. Life Sciences sales are forecast to grow approximately 20% compared with 2023 benefitting from increases across all businesses including Food & Beverage, Bioprocessing Equipment and Consumables, and Disk Drive. Operating margin is expected to be between 14.7% and 15.3% versus 14.0%, or 14.6% on an adjusted basis, in 2023 with year-over-year gross margin improvement partially offset by investments in the Life Sciences segment. Interest expense is forecast to be approximately $23M and other income is expected to be between $7M-$11M. Donaldson projects a fiscal 2024 effective income tax rate of between 24% and 26%. Capital expenditures are forecast to be between $95M-$115M and free cash flow conversion is expected to be between 95%-105%. For the full year, Donaldson anticipates repurchasing approximately 2% of its shares outstanding.