Parker Reports Fiscal 2014 Fourth Quarter and Full Year Sales

11.08.2014

Parker Hannifin Corporation reported results for the fiscal 2014 fourth quarter and full year ended June 30, 2014. Fiscal 2014 sales were a record at $13.2 billion, compared with $13.0 billion in fiscal 2013.

Net income for fiscal 2014 was $1,041 million, or $6.87 per diluted share, compared with net income of $949 million, or $6.26 per diluted share in fiscal 2013. Adjusted earnings per diluted share for fiscal 2014 were $6.94. A reconciliation of reported to adjusted sales, net income and earnings per diluted share is included with the financial tables accompanying this news release. Cash flow from operations for fiscal 2014 was $1.4 billion or 10.5 percent of sales compared with $1.2 billion or 9.1 percent of sales in the prior year. Excluding a discretionary contribution to the company s pension plan of $75 million in fiscal 2014, cash flow from operations was 11.1 percent of sales.

"Fiscal 2014 was a transitional year as we worked through the most significant restructuring in our history." said Chairman, CEO and President, Don Washkewicz. "I am proud that our global team was able to stay focused and still deliver record sales and strong earnings and cash flow for the year, which included record fourth quarter operating cash flow. Overall, we are well positioned entering the new fiscal year."

Fiscal 2014 fourth quarter sales increased 3 percent to a record $3.53 billion, compared with $3.43 billion in the same period a year ago. Fiscal 2014 fourth quarter net income was $301.2 million, or $1.98 earnings per diluted share, compared with $271.1 million, or $1.78 earnings per diluted share in the prior year quarter. Fiscal 2014 fourth quarter earnings per diluted share were $2.06 adjusted for the impact of $0.08 in earnings per diluted share in restructuring expenses.

Fourth Quarter Segment Results

Diversified Industrial Segment: North American fourth quarter sales increased 4.0 percent to $1.53 billion, and operating income was $268.7 million compared with $249.7 million in the same period a year ago. International fourth quarter sales increased 3.1 percent to $1.38 billion, and operating income was $137.9 million compared with $162.6 million in the same period a year ago.

Aerospace Systems Segment: Fourth quarter sales were essentially flat at $617.6 million, reflecting the impact of the previously announced joint venture between Parker Aerospace and GE Aviation. Operating income was $104.9 million compared with $86.1 million in the same period a year ago.

Orders

Parker reported an increase of 4 percent in orders for the quarter ending June 30, 2014, compared with the same quarter a year ago. This is the fourth consecutive quarter of year-over-year positive order growth. The company reported the following orders by business:

  • Orders increased 6 percent in the Diversified Industrial North America businesses
  • Orders decreased 4 percent in the Diversified Industrial International businesses
  • Orders increased 17 percent in the Aerospace Systems segment on a rolling 12-month average basis.

Fiscal 2015 Outlook

For the fiscal year ending June 30, 2015, the company has issued guidance for earnings per diluted share in the range of $7.00 to $7.80, or $7.25 to $8.05 on an adjusted basis. Fiscal year 2015 guidance is adjusted for expected restructuring expenses of approximately $0.25 per diluted share.

Washkewicz added, "In fiscal year 2015, we anticipate generally stable macroeconomic conditions. As always, we will stay the course by executing the Win Strategy, which has helped us deliver consistent results and are poised to deliver another year of record earnings performance for Parker."

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