Parker Reports Fiscal 2015 First Quarter Sales
Parker Hannifin Corporation reported results for the fiscal 2015 first quarter ended September 30, 2014. Fiscal 2015 first quarter sales were $3.27 billion, a first quarter record, compared with $3.23 billion in the prior year quarter. Net income was $280.2 million, a 15 percent increase compared with $244.3 million in the first quarter of fiscal 2014.
Fiscal 2015 first quarter earnings per diluted share were $1.85, an increase of 15 percent compared with $1.61 in the prior year quarter. Excluding restructuring, earnings per diluted share for the first quarter of fiscal 2015 were $1.89, compared with $1.67 in the prior year quarter. A reconciliation of reported to adjusted earnings per share is included with the financial tables accompanying this news release. Cash flow from operations was $260.9 million or 8 percent of sales compared with $282.7 million in the prior year quarter.
"We are off to a very strong start in fiscal year 2015 reinforcing our positive view on the year," said Chairman, CEO and President, Don Washkewicz. "As a result of the restructuring activities we engaged in last year, we are beginning to see stronger year-over-year segment operating margin performance, which reached 15.9 percent this quarter, or 16.1 percent adjusted. Margin performance was driven by improvements in our Diversified Industrial International and Aerospace businesses and continued strength in our Diversified Industrial North America business where we had an all-time record for quarterly operating margins. We continue to execute well."
Diversified Industrial Segment: North American first quarter sales increased 6 percent to $1.47 billion, and operating income was $264.2 million compared with $234.2 million in the same period a year ago. International first quarter sales decreased 1 percent to $1.26 billion, and operating income was $189.8 million compared with $173.4 million in the same period a year ago.
Aerospace Systems Segment: First quarter sales decreased 6 percent to $534.6 million, reflecting the impact of the joint venture between Parker Aerospace and GE Aviation recorded in the second quarter of fiscal 2014. Operating income was $65.3 million compared with $57.3 million in the same period a year ago.
Parker reported an increase of 5 percent in orders for the quarter ending September 30, 2014, compared with the same quarter a year ago. The company reported the following orders by business:
- Orders increased 6 percent in the Diversified Industrial North America businesses compared with the same quarter a year ago.
- Orders increased 2 percent in the Diversified Industrial International businesses compared with the same quarter a year ago.
- Orders increased 12 percent in the Aerospace Systems segment on a rolling 12-month average basis.
For the fiscal year ending June 30, 2015, the company has increased guidance for earnings from continuing operations to the range of $7.20 to $7.80 per diluted share, or $7.45 to $8.05 per diluted share on an adjusted basis. Fiscal year 2015 guidance is adjusted for expected restructuring expenses of approximately $0.25 per diluted share.
Washkewicz added, "We are increasing our fiscal 2015 guidance to reflect strong first quarter performance moderated by what we anticipate to be the expected negative effect of foreign currency. Macroeconomic readings indicate some uncertainty in demand levels, particularly internationally. However, savings resulting from the timely and solid execution of our restructuring activities give us confidence that we can achieve our earnings outlook and deliver a record year. Reflecting confidence in our outlook, last week the Board approved a 31 percent increase in the quarterly dividend and a new share repurchase authorization. Our goal is to repurchase $2 billion to $3 billion in shares in the next 24 months."
Source: Parker Hannifin Corp