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Parker Hannifin reports record Q3 results

Parker Hannifin Corp. on Thursday reported record third-quarter income, beating Street estimates.

For the quarter ended March 31, the Cleveland-based manufacturer reported revenue of $3.75 billion, up from $3.7 billion in the same quarter last year. Net income for the quarter was $471.7 million, compared with $367.4 million in the third quarter last year. On a per-share basis, adjusted diluted earnings were $4.11, up from $3.39 in the year-ago quarter.

Parker Hannifin, a global leader in motion and control technologies, has three facilities in the Rochester area, including two in Wayne County — its Engineered Polymer Systems and its Aerospace Group — and its Chomerics Division in Fairport.

“In the third quarter, we delivered all-time quarterly records for net income, EPS and segment operating margins,” said Chairman and CEO Tom Williams in a statement. “We also generated record year-to-date cash from operations and continued to accelerate the paydown of available debt, putting us in a very strong financial position.

“Our results reflect sustainable performance improvements across our business. These include strengthening our portfolio through the effective integration and accelerated synergies from our acquisitions,” he added. “Broad-based execution of the Win Strategy continues to drive improved profitability and cash flow. Order rates increased by 6 percent in the third quarter, reinforcing our view that demand is at a positive inflection point.”

During the third quarter, the company made debt repayments of $426 million, bringing the cumulative debt reduction to roughly $3.2 billion over the last 17 months. Also during the quarter, the company made share repurchases of $50 million under its 10b5-1 share repurchase program. Last week the company said it would increase its quarterly cash dividend by 17 percent.

Third-quarter sales for the company’s Aerospace Systems Segment decreased 20 percent to $598.9 million, and operating income was $102.3 million, compared with $127.4 million in the same period a year ago.

For the fiscal year ending June 30, 2021, the company has increased guidance for earnings per share to the range of $12.96 to $13.26, or $14.65 to $14.95 on an adjusted basis.

“Our increased guidance reflects strong year-to-date performance and a positive outlook for macroeconomic conditions as we enter the fourth quarter of this fiscal year,” Williams said. “My thanks to our global team as they continue to execute the Win Strategy and progress towards achieving our long-term financial targets, positioning us among the top-quartile of our peer group of diversified industrial companies.”

Shares of company stock (NYSE: PH) were down more than 2 percent to $312.29 in morning trading Thursday.

[email protected] / 585-653-4021
Follow Velvet Spicer on Twitter: @Velvet_Spicer

Parker Hannifin reports Q1 sales increase, revises full-year guidance

parker-hannifin-logologobrand-logoiconslogos-2515199387710dv6xParker Hannifin Corp. on Thursday reported increases in first quarter sales and income, beating analyst estimates for EPS.

For the first quarter ended Sept. 30, Parker Hannifin—which has some 100 employees in the Rochester area—reported a 3 percent sales increase to $3.48 billion, compared with $3.36 billion in the first quarter last year. Net income for the quarter increased by nearly one-third to $375.7 million, from $285.4 million in the year ago quarter.

On a per share basis, earnings for the quarter came in at $2.79, up from $2.10 per share in the first quarter last year.

Analysts polled by Zacks Investment Research has expected earnings of $2.51 on revenue of $3.53 billion.

“This was an excellent start to fiscal 2019, reflecting benefits of our continued execution of the ‘Win Strategy,’ which is driving record performance levels,” Chairman and CEO Tom Williams said in a news release. “Strong organic growth of 6 percent was consistent with our expectations, while sales were partially offset by higher unfavorable currency impact.”

North American first quarter sales increased 5 percent to $1.7 billion in the quarter, while operating income grew 8 percent to $275.1 million. Within Parker Hannifin’s aerospace systems segment, first quarter sales rose to $564.5 million, while operating income increased 42 percent to $109.9 million.

Parker Hannifin revised its full-year guidance to earnings in the range of $10.90 to $11.50 per share, or $11.10 to $11.70 per share adjusted.

“With generally positive conditions across our end markets and our ongoing commitment to the ‘Win Strategy’ initiatives, the increase of our guidance at the operating line reflects the additional earnings achieved in the first quarter, as well as our confidence in the outlook for the remainder of the year,” Williams said.

The company’s “Win Strategy” is a strategy designed to accomplish four goals: engaged people, premier customer experience, profitable growth and financial performance.

The Cleveland-based global leader in motion and control technologies employs roughly 100 people at its Fairport Parker Chomerics Division. The facility designs and manufactures injection molded plastic products for automotive, business machine, consumer and industrial customers.

The Parker Chomerics Division is part of Parker Hannifin’s Engineered Materials Group and is a global leader in development and application of electrically and thermally conductive materials in electronics, transportation and alternative energy systems.

[email protected] / 585-653-4021
Follow Velvet Spicer on Twitter: @Velvet_Spicer

Parker Hannifin reports record Q4 sales

parker-hannifin-logologobrand-logoiconslogos-2515199387710dv6xParker Hannifin Corp. reported a rise in fourth quarter revenues that missed Street estimates but had an increase in earnings that topped predictions.

Sales for the quarter ended June 30 came in at $3.82 billion, a 9 percent increase from $3.5 billion a year ago. Net income increased 20 percent to $353.3 million, compared with $293.4 million in the prior year quarter. On a per-share basis, diluted earnings increased 31 percent to $3.22, compared with $2.45 a year ago.

Analysts polled by Zacks Investment Research had anticipated diluted earnings per share of $2.91 on revenues of $3.84 billion.

Parker reported a fourth-quarter sales increase of 8 percent in its North American Diversified Industrial Segment, while its international sales increased 12 percent. Parker’s Aerospace Systems Segment reported a 6 percent sales increase in the final quarter of fiscal 2018.

For the full year, revenues totaled $14.3 billion, a 19 percent increased from $12 billion in fiscal 2017. Net income was $1.06 billion, up 8 percent from $983.8 million a year ago. Adjusted earnings per share increased to $10.42, compared with $8.11 per share in the previous year.

“We ended fiscal 2018 by achieving a number of records in the quarter, which contributed to Parker delivering the strongest year of financial performance in the company’s history,” Chairman and CEO Tom Williams said in a news release. “For the year, Parker achieved records in sales, segment operating margins, earnings per share and cash flow from operations.”

Looking ahead, Parker expects adjusted earnings in the range of $10.70 to $11.50. Company officials said fiscal year 2019 guidance is adjusted for expected business realignment expenses of roughly $22 million.

“Fiscal 2019 will see us make continued progress toward achieving our new five-year financial targets that will maintain Parker’s position among the best performing diversified industrial companies and generate significant long-term value for our shareholders,” Williams said. “While we have made meaningful progress, we have the opportunity to drive further improvement by building upon our strong financial position and distinct competitive advantages.”

The Cleveland-based global leader in motion and control technologies employs roughly 100 people at its Fairport Parker Chomerics Division. The facility designs and manufactures injection molded plastic products for automotive, business machine, consumer and industrial customers.

The Parker Chomerics Division is part of Parker Hannifin’s Engineered Materials Group and is a global leader in development and application of electrically and thermally conductive materials in electronics, transportation and alternative energy systems.

Shares of company stock (NYSE: PH) have climbed to $172.57 since Parker’s earnings release last Thursday.

[email protected] / 585-653-4021
Follow Velvet Spicer on Twitter: @Velvet_Spicer

Parker Hannifin reports record earnings

parker-hannifin-logologobrand-logoiconslogos-2515199387710dv6xParker Hannifin Corp. on Thursday reported record third-quarter sales and earnings, beating Street estimates.

Sales for the quarter ended March 31 rose 20 percent to $3.75 billion, compared with $3.12 billion last year. Net income for the quarter increased to a record $366.1 million from $238.8 million in the third quarter last year.

On a per-share basis, earnings were a record $2.70, compared with $1.75 in the prior year. Analysts polled by Zacks Investment Research had expected diluted earnings per share of $2.62 on revenue of $3.69 billion for the quarter.

“We achieved record performance this quarter, supported by broad-based demand improvement across our key end markets and regions,” Parker Hannifin Chairman and CEO Tom Williams said in a statement.

For the full year, the company has increased its guidance for earnings to a range of $7.76 to $7.96 per share, or $9.95 to $10.15 per share on an adjusted basis.

“We expect record performance in fiscal year 2018 that will serve as a solid foundation for us to achieve new five-year targets that include 19 percent total segment operating margins and a greater than 10 percent compound annual growth rate in adjusted earnings per share by fiscal year 2023,” Williams said.

Company officials in its earnings release did not address reports that the company plans to close its Kent, Ohio, factory that is part of the company’s Fluid Systems Connectors division. The plant employs more than 50 workers, reports say.

Last week the company announced a quarterly cash dividend of 76 cents per share of common stock. The dividend is payable June 1 to shareholders of record as of May 10. The dividend is a 15 percent increase over the previous quarter.

“This increase in our quarterly dividend reflects the board’s confidence in our consistent cash flow generation and long-term outlook,” said the company’s CFO and Executive Vice President, Finance and Administration Cathy Suever. “Maintaining our dividend increase record, now at 62 consecutive fiscal years and among the top five longest-running dividend-increase records in the S&P 500 Index, remains a top priority for capital allocation.

The Cleveland-based global leader in motion and control technologies employs roughly 100 people at its Fairport Parker Chomerics Division. The facility designs and manufactures injection molded plastic products for automotive, business machine, consumer and industrial customers.

The Parker Chomerics Division is part of Parker Hannifin’s Engineered Materials Group and is a global leader in development and application of electrically and thermally conductive materials in electronics, transportation and alternative energy systems.

Shares of company stock (NYSE: PH) were down nearly 3 percent to $163.54 in brisk trading Thursday morning.

[email protected] / 585-653-4021
Follow Velvet Spicer on Twitter: @Velvet_Spicer