Parker Reports Record Fiscal 2015 Second Quarter Sales and Earnings per Share
Parker Hannifin Corporation reported results for the fiscal 2015 second quarter ended December 31, 2014. Fiscal 2015 second quarter sales were $3.13 billion, a second quarter record, compared with $3.11 billion in the prior year quarter. Net income was $267.3 million, a 6 percent increase compared with $253.4 million in the second quarter of fiscal 2014.
Fiscal 2015 second quarter earnings per share were $1.80, a second quarter record and an increase of 8 percent, compared with $1.66 in the prior year quarter.
Adjusted earnings per share for the second quarter of fiscal 2015 were $1.84, compared with $1.30 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 $538.5 million or 8.4 percent of sales for the first six months of fiscal 2015 compared with $540.1 million in the prior year period.
"This was a record quarter for Parker as we continue to execute very well in fiscal 2015," said Chairman, CEO and President, Don Washkewicz. "While currency headwinds were significant, this was offset by solid organic growth of 4%. Our year-over-year segment operating margins improved by 150 basis points, primarily reflecting strength in our Diversified Industrial North America businesses and improvement in our Aerospace Systems segment."
Diversified Industrial Segment: North American second quarter sales increased 5 percent to $1.4 billion, and operating income was $226.9 million compared with $200.6 million in the same period a year ago. International second quarter sales decreased 7 percent to $1.2 billion, and operating income was $136.5 million compared with $134.2 million in the same period a year ago.
Aerospace Systems Segment: Second quarter sales increased 11 percent to $558.4 million, and operating income was $66.8 million compared with $45.0 million in the same period a year ago.
Parker reported an increase of 4 percent in orders for the quarter ending December 31, 2014, compared with the same quarter a year ago. The company reported the following orders by business:
- Orders increased 4 percent in the Diversified Industrial North America businesses compared with the same quarter a year ago.
- Orders increased 1 percent in the Diversified Industrial International businesses compared with the same quarter a year ago.
- Orders increased 9 percent in the Aerospace Systems segment on a rolling 12-month average basis.
During the second quarter of fiscal year 2015, the company completed share repurchases of $817 million.
For the fiscal year ending June 30, 2015, the company has increased guidance for earnings from continuing operations to the range of $7.70 to $8.10 per share, or $7.90 to $8.30 per share on an adjusted basis. Fiscal year 2015 guidance is adjusted for expected restructuring expenses of approximately $0.20 per share.
Washkewicz added, "We are increasing our fiscal 2015 full year guidance to primarily reflect strong first half performance and the impact of our share repurchase program. We expect currency headwinds into the future. Despite these conditions, Parker remains on track to deliver a record year."
Source: Parker Hannifin Corp