Donaldson and Evonik navigating stormy seas.

Navigating the Waters: How Donaldson and Evonik are Steering Through Market Changes

Author's portrait.
Beau Callahan in Business & Economy August 2025 • 4 min read.

"A comparative look at how Donaldson and Evonik are leveraging strategic measures and innovation to maintain profitability and growth in fluctuating markets."


In today's rapidly evolving global economy, companies across all sectors face a myriad of challenges, from fluctuating market conditions to shifting consumer demands. To thrive in this environment, businesses must be agile, innovative, and strategically astute. Two companies that exemplify these qualities are Donaldson Co Inc., a leader in filtration solutions, and Evonik Industries AG, a specialty chemicals manufacturer.

This article delves into the recent financial performances and strategic initiatives of Donaldson and Evonik, providing a comparative analysis of their approaches to navigating market changes. By examining their key figures, sales strategies, and cost management techniques, we can gain valuable insights into how these industry leaders are maintaining profitability and positioning themselves for future success.

Whether you're an investor, a business professional, or simply someone interested in understanding how companies adapt and thrive, this analysis offers a comprehensive overview of the strategies employed by Donaldson and Evonik to stay ahead in today's competitive landscape. Join us as we explore the dynamics of their respective markets and the innovative solutions they're implementing to ensure continued growth and resilience.

Sales Growth and Strategic Adaptations: A Comparative Analysis

Donaldson and Evonik navigating stormy seas.

Donaldson reported a robust fourth quarter for fiscal year 2018, with sales reaching US$724.7 million, marking a 9.8% increase year-over-year. This growth was significantly propelled by a 50.1% surge in net earnings, which climbed to US$102.4 million. Evonik, on the other hand, reported second-quarter net sales of €3.9 billion, a 7.0% increase from the previous year. Both companies demonstrated sales growth, but their strategic approaches and segment performances varied.

Donaldson's sales growth was particularly strong in its Engine Products segment, where revenues increased by 14.0% to US$492.2 million. All business units within this segment registered growth, with the On-Road unit leading the way with a 36.1% upturn. In contrast, Evonik saw its Performance Materials division leading the charge with a 12.6% increase in sales, reaching €1.0 billion, driven by higher selling prices in the methacrylate business.

  • Engine Products vs. Performance Materials: Donaldson's strength in engine products highlights the ongoing demand for filtration solutions in automotive and industrial applications. Evonik's success in performance materials underscores the importance of specialty chemicals in driving growth.
  • On-Road Unit Surge: The significant upturn in Donaldson's On-Road unit indicates a strong market for its products, likely due to increased vehicle production and aftermarket demand.
  • Methacrylate Business: Evonik's success in the methacrylate business reflects the positive impact of strategic pricing and a favorable market environment for intermediates.
Donaldson's Industrial Products segment experienced more subdued growth, with revenues edging up 1.9% to US$232.5 million. Conversely, Evonik's Resource Efficiency sector, which includes its Sepuran gas separation membrane range, saw sales increase by 8.3% to €1.5 billion. The Nutrition & Care sector at Evonik also saw a sales climb of 2.2% to €1.2 billion. These figures indicate that while Donaldson's industrial segment faced headwinds, Evonik experienced more balanced growth across its sectors.

Strategic Implications and Future Outlook

The financial results and strategic initiatives of Donaldson and Evonik offer valuable insights into navigating today's complex market conditions. Donaldson's focus on sales momentum and margin improvement, coupled with effective price realization and expense leverage, highlights the importance of operational efficiency. Evonik's emphasis on strategic measures and cost awareness underscores the significance of long-term planning and resource management. Both companies demonstrate that a combination of strategic adaptation, innovation, and financial discipline is essential for sustaining growth and profitability in a dynamic global economy. As they continue to navigate market changes, their experiences will undoubtedly provide valuable lessons for other businesses striving to succeed in an increasingly competitive world.

About this Article -

This article was crafted using a human-AI hybrid and collaborative approach. AI assisted our team with initial drafting, research insights, identifying key questions, and image generation. Our human editors guided topic selection, defined the angle, structured the content, ensured factual accuracy and relevance, refined the tone, and conducted thorough editing to deliver helpful, high-quality information.See our About page for more information.

Everything You Need To Know

1

What were the key financial results for Donaldson in fiscal year 2018 and how did they achieve growth?

Donaldson reported a robust fourth quarter for fiscal year 2018, with sales reaching US$724.7 million, representing a 9.8% increase year-over-year. Significantly, net earnings surged by 50.1% to US$102.4 million. The growth was primarily driven by strong performance in the Engine Products segment, particularly the On-Road unit. This indicates Donaldson's success in leveraging sales momentum and margin improvement, combined with effective price realization and expense management.

2

How did Evonik's sales performance in the second quarter of the year compare to Donaldson's, and what were the main drivers of its growth?

Evonik reported second-quarter net sales of €3.9 billion, a 7.0% increase from the previous year. While both Donaldson and Evonik experienced sales growth, their growth drivers differed. Evonik's Performance Materials division led its growth, increasing sales by 12.6% to €1.0 billion, thanks to higher selling prices in the methacrylate business. Evonik also saw growth in the Resource Efficiency and Nutrition & Care sectors, demonstrating balanced performance across its business sectors compared to Donaldson's focus.

3

What strategic implications can be drawn from the contrasting performances of Donaldson's Engine Products and Evonik's Performance Materials divisions?

Donaldson's Engine Products segment strength underscores the ongoing demand for filtration solutions in automotive and industrial applications. The significant upturn in Donaldson's On-Road unit highlights a strong market for its products, likely due to increased vehicle production and aftermarket demand. Conversely, Evonik's success in Performance Materials, particularly the methacrylate business, reflects the impact of strategic pricing and a favorable market environment. This shows Evonik's ability to capitalize on market opportunities through their specialty chemicals.

4

How did the Industrial Products segment at Donaldson and the Resource Efficiency sector at Evonik perform, and what does this reveal about their market positions?

Donaldson's Industrial Products segment experienced more subdued growth, with revenues edging up 1.9% to US$232.5 million, suggesting challenges within that specific area. In contrast, Evonik's Resource Efficiency sector, including the Sepuran gas separation membrane range, saw sales increase by 8.3% to €1.5 billion. This indicates that while Donaldson's industrial segment faced headwinds, Evonik's diversified portfolio and strategic focus on sectors like resource efficiency contributed to a more balanced growth across its sectors.

5

Based on the analysis, what are the key takeaways for businesses aiming to thrive in the current market conditions, using the examples of Donaldson and Evonik?

The experiences of Donaldson and Evonik demonstrate that strategic adaptation, innovation, and financial discipline are essential for sustaining growth and profitability. Donaldson's focus on sales momentum, margin improvement, price realization, and expense leverage highlights the importance of operational efficiency. Evonik's emphasis on strategic measures, cost awareness, and long-term planning underscores the significance of resource management. Businesses must adopt a combination of these strategies to navigate market changes successfully.

Newsletter Subscribe

Subscribe to get the latest articles and insights directly in your inbox.