Donaldson Company, Inc. (NYSE:DCI) Q1 2024 Earnings Conference Call November 29, 2023 10:00 AM ET

Company Participants

Sarika Dhadwal - Director of IR

Tod Carpenter - Chairman, CEO and President

Scott Robinson - CFO

Conference Call Participants

Bryan Blair - Oppenheimer

Nathan Jones - Stifel

Rob Mason - Baird

Brian Drab - William Blair

Dan Rizzo - Jefferies

Operator

Good morning, and welcome to the Donaldson Fiscal First Quarter 2024 Earnings Call. Please note that this call is being recorded. [Operator Instructions] Thank you.

I will now turn the call over to Sarika Dhadwal, Head of Investor Relations. Please go ahead.

Sarika Dhadwal

Good morning. Thank you for joining Donaldson's first quarter fiscal 2024 earnings conference call. With me today are Tod Carpenter, Chairman, CEO and President; and Scott Robinson, Chief Financial Officer. This morning, Tod and Scott will provide a summary of our first quarter performance and details on our outlook for fiscal 2024. During today's call, we will discuss non-GAAP or adjusted results. In the prior year period, first quarter fiscal 2023 non-GAAP results exclude restructuring and other charges of $7.6 million. A reconciliation of GAAP to non-GAAP metrics is provided within the schedules attached to this morning's press release. Additionally, please keep in mind that any forward-looking statements made during this call are subject to risks and uncertainties, which are described in our press release and SEC filings.

With that, I'll now turn the call over to Tod Carpenter.

Tod Carpenter

Thanks, Sarika. Good morning, everyone. I am pleased to report our first quarter earnings results, which demonstrate our continued ability to deliver to our customers and shareholders despite overhanging macro uncertainty. This quarter, we reported consolidated gross margin at nearly a decade high, driven by our team's efforts on strategic pricing, deflation in select input costs, mix benefits and plant productivity.

We focused on executing in and growing each of our three operating segments and laid the groundwork for a record fiscal 2024. In Mobile Solutions, despite volume weakness from softer end market conditions, we delivered strong profit margins driven by strategic pricing, select input cost deflation, mix benefits and strong plant performance.

Our Industrial Solutions business continues to outperform from a top and bottom line perspective. Our create, connect, replace service business model has allowed us to first create high-quality, first-fit solutions through innovation and the addition of connected features; second, connect solutions through next-generation gateways and controllers.