checkAd

Parker Reports Fiscal 2021 Second Quarter Results

Nachrichtenquelle: globenewswire
04.02.2021, 13:30  |  104   |   |   

- Second quarter record net income of $447.3 million, EPS at $3.41 as reported, or $3.44 adjusted
- Second quarter record total segment operating margin of 17.4% as reported, or 20.4% adjusted
- Second quarter EBITDA margin was 23.1% as reported, or 20.8% adjusted
- Cash flow from operations was a Q2 YTD record at $1.35 billion, or 20.4% of sales
- Cumulative debt reduction reaches approximately $2.8 billion in the last 14 months
- Company increases fiscal 2021 EPS guidance midpoint to $12.15 as reported, or $13.90 adjusted

CLEVELAND, Feb. 04, 2021 (GLOBE NEWSWIRE) -- Parker Hannifin Corporation (NYSE: PH), the global leader in motion and control technologies, today reported results for the fiscal 2021 second quarter ended December 31, 2020. Fiscal 2021 second quarter sales were $3.41 billion, compared with $3.50 billion in the prior year quarter. Net income was a record $447.3 million, which includes a gain of approximately $76.4 million from the sale of land, compared with $204.5 million in the second quarter of fiscal 2020. Fiscal 2021 second quarter earnings per share were $3.41, compared with $1.57 in the prior year quarter. Adjusted earnings per share increased 15% to $3.44, compared with adjusted earnings per share of $2.98 in the second quarter of fiscal 2020. Fiscal year-to-date cash flow from operations was a second quarter record at $1.35 billion and reached 20.4% of sales, compared with $826.0 million or 12.1% of sales in the prior year period. A reconciliation of non-GAAP measures is included in the financial tables of this press release.

“Parker team members continue to deliver outstanding results including many records in a challenging environment,” said Chairman and Chief Executive Officer, Tom Williams. “Our current results reflect the combined effect of significant operating performance improvement via The Win Strategy and strategic acquisitions that have strengthened our portfolio. We achieved second quarter records in total segment operating margin, earnings and year-to-date operating cash flow. We also delivered better than expected organic sales reflecting a more resilient business portfolio and strong performance in our Diversified Industrial segment. This was also the first quarter since September 2018 that industrial order rates were positive. Second quarter adjusted segment operating margin increased 250 basis points year over year and adjusted EBITDA margin increased 230 basis points compared with the prior year quarter.”

During the quarter, the company made debt repayments of $767 million, further accelerating the cumulative debt reduction to approximately $2.8 billion over the last 14 months. The company has also reinitiated its 10b5-1 share repurchase program, which had been temporarily suspended in March 2020, and intends to resume quarterly share repurchases under the program of $50 million in the fiscal 2021 third quarter, effective February 5, 2021.

Segment Results
Diversified Industrial Segment: North American second quarter sales decreased 3% to $1.6 billion, and operating income was $281.6 million, compared with $211.3 million in the same period a year ago. International second quarter sales increased 10% to $1.3 billion, and operating income was $220.2 million, compared with $153.8 million in the same period a year ago.

Aerospace Systems Segment: Second quarter sales decreased 20% to $585.4 million, and operating income was $90.7 million, compared with $121.0 million in the same period a year ago.

Parker reported the following orders for the quarter ending December 31, 2020, compared with the same quarter a year ago:

  • Orders were flat for total Parker
  • Orders increased 1% in the Diversified Industrial North America businesses
  • Orders increased 10% in the Diversified Industrial International businesses
  • Orders decreased 18% in the Aerospace Systems Segment on a rolling 12-month average basis

Outlook
For the fiscal year ending June 30, 2021, the company has increased guidance for earnings per share to the range of $11.90 to $12.40, or $13.65 to $14.15 on an adjusted basis. Guidance assumes an organic sales decline in the range of (4.5%) to (2.5%). Fiscal year 2021 guidance is adjusted on a pre-tax basis for expected business realignment expenses of approximately $60 million, costs to achieve of approximately $15 million, acquisition-related intangible asset amortization of approximately $322 million and a gain on the sale of land of approximately $101 million. A reconciliation of forecasted earnings per share to adjusted forecasted earnings per share is included in the financial tables of this press release.

Williams added, “Our performance in the first half of this year has exceeded our expectations, and as a result, we are increasing our full year guidance for fiscal 2021. While the outlook for key end markets continues to be uncertain in the current environment, we remain committed to driving improvements through the execution of the Win Strategy and making continued progress toward our long-term financial goals."

NOTICE OF CONFERENCE CALL:  Parker Hannifin's conference call and slide presentation to discuss its fiscal 2021 second quarter results are available to all interested parties via live webcast today at 11:00 a.m. ET, at www.phstock.com. A replay of the webcast will be available on the site approximately one hour after the completion of the call and will remain available for one year. To register for e-mail notification of future events please visit www.phstock.com.

About Parker Hannifin
Parker Hannifin is a Fortune 250 global leader in motion and control technologies. For more than a century the company has been enabling engineering breakthroughs that lead to a better tomorrow. Parker has increased its annual dividend per share paid to shareholders for 64 consecutive fiscal years, among the top five longest-running dividend-increase records in the S&P 500 index. Learn more at www.parker.com or @parkerhannifin.

Note on Orders
Orders provide near-term perspective on the company's outlook, particularly when viewed in the context of prior and future quarterly order rates. However, orders are not in themselves an indication of future performance. All comparisons are at constant currency exchange rates, with the prior year restated to the current-year rates. All exclude acquisitions until they can be reflected in both the numerator and denominator. Aerospace comparisons are rolling 12-month average computations. The total Parker orders number is derived from a weighted average of the year-over-year quarterly % change in orders for Diversified Industrial North America and Diversified Industrial International, and the year-over-year 12-month rolling average of orders for the Aerospace Systems Segment.

Note on Net Income
Net income referenced in this press release is equal to net income attributable to common shareholders.

Note on Non-GAAP Financial Measures
This press release contains references to non-GAAP financial information including (a) adjusted earnings per share; (b) adjusted total segment operating margin; (c) EBITDA margin; and (d) adjusted EBITDA margin. The adjusted earnings per share and total segment operating margin measures are presented to allow investors and the company to meaningfully evaluate changes in earnings per share and total segment operating margin on a comparable basis from period to period. This press release also contains references to EBITDA, EBITDA margin and adjusted EBITDA margin. EBITDA is defined as earnings before interest, taxes, depreciation and amortization. Although EBITDA, EBITDA margin and adjusted EBITDA margin are not measures of performance calculated in accordance with GAAP, we believe that they are useful to an investor in evaluating the results of this quarter versus the prior period. A reconciliation of non-GAAP measures is included in the financial tables of this press release.

Forward-Looking Statements
Forward-looking statements contained in this and other written and oral reports are made based on known events and circumstances at the time of release, and as such, are subject in the future to unforeseen uncertainties and risks. These statements may be identified from the use of forward-looking terminology such as “anticipates,” “believes,” “may,” “should,” “could,” “potential,” “continues,” “plans,” “forecasts,” “estimates,” “projects,” “predicts,” “would,” “intends,” “expects,” “targets,” “is likely,” “will,” or the negative of these terms and similar expressions, and include all statements regarding future performance, earnings projections, events or developments. Parker cautions readers not to place undue reliance on these statements. It is possible that the future performance and earnings projections of the company, including its individual segments, may differ materially from current expectations, depending on economic conditions within its mobile, industrial and aerospace markets, and the company's ability to maintain and achieve anticipated benefits associated with announced realignment activities, strategic initiatives to improve operating margins, actions taken to combat the effects of the current economic environment, and growth, innovation and global diversification initiatives. Additionally, the actual impact of changes in tax laws in the United States and foreign jurisdictions and any judicial or regulatory interpretation thereof on future performance and earnings projections may impact the company’s tax calculations. A change in the economic conditions in individual markets may have a particularly volatile effect on segment performance.

Among other factors which may affect future performance are: the impact of the global outbreak of COVID-19 and governmental and other actions taken in response; changes in business relationships with and purchases by or from major customers, suppliers or distributors, including delays or cancellations in shipments; disputes regarding contract terms or significant changes in financial condition, changes in contract cost and revenue estimates for new development programs and changes in product mix; ability to identify acceptable strategic acquisition targets; uncertainties surrounding timing, successful completion or integration of acquisitions and similar transactions, including the integration of LORD Corporation or Exotic Metals; the ability to successfully divest businesses planned for divestiture and realize the anticipated benefits of such divestitures; the determination to undertake business realignment activities and the expected costs thereof and, if undertaken, the ability to complete such activities and realize the anticipated cost savings from such activities; ability to implement successfully capital allocation initiatives, including timing, price and execution of share repurchases; availability, limitations or cost increases of raw materials, component products and/or commodities that cannot be recovered in product pricing; ability to manage costs related to insurance and employee retirement and health care benefits; compliance costs associated with environmental laws and regulations; potential labor disruptions; threats associated with and efforts to combat terrorism and cyber-security risks; uncertainties surrounding the ultimate resolution of outstanding legal proceedings, including the outcome of any appeals; global competitive market conditions, including global reactions to U.S. trade policies, and resulting effects on sales and pricing; and global economic factors, including manufacturing activity, air travel trends, currency exchange rates, difficulties entering new markets and general economic conditions such as inflation, deflation, interest rates and credit availability, as well as uncertainties associated with the timing and conditions surrounding the return to service of the Boeing 737 MAX. The company makes these statements as of the date of this disclosure and undertakes no obligation to update them unless otherwise required by law.​

 
PARKER HANNIFIN CORPORATION - DECEMBER 31, 2020
CONSOLIDATED STATEMENT OF INCOME    
(Unaudited) Three Months Ended December 31,   Six Months Ended December 31,
(Dollars in thousands, except per share amounts) 2020     2019     2020     2019  
Net sales $ 3,411,905     $ 3,497,974     $ 6,642,445     $ 6,832,485  
Cost of sales 2,519,545     2,682,765     4,903,873     5,162,506  
Selling, general and administrative expenses 356,572     491,121     726,423     890,300  
Interest expense 62,990     82,891     128,948     152,847  
Other (income), net (103,714 )   (13,549 )   (108,606 )   (61,070 )
Income before income taxes 576,512     254,746     991,807     687,902  
Income taxes 129,015     50,148     222,593     144,263  
Net income 447,497     204,598     769,214     543,639  
Less: Noncontrolling interests 191     124     499     267  
Net income attributable to common shareholders $ 447,306     $ 204,474     $ 768,715     $ 543,372  
               
Earnings per share attributable to common shareholders:              
Basic earnings per share $ 3.47     $ 1.59     $ 5.97     $ 4.23  
Diluted earnings per share $ 3.41     $ 1.57     $ 5.89     $ 4.17  
                               
Average shares outstanding during period - Basic   129,013,781       128,396,933       128,860,763       128,430,463  
Average shares outstanding during period - Diluted   131,075,655       130,495,381       130,482,564       130,154,079  
               
               
CASH DIVIDENDS PER COMMON SHARE       
(Unaudited) Three Months Ended December 31,   Six Months Ended December 31,
(Amounts in dollars) 2020     2019     2020     2019  
Cash dividends per common share $ 0.88     $ 0.88     $ 1.76     $ 1.76  
               
RECONCILIATION OF EARNINGS PER DILUTED SHARE TO ADJUSTED EARNINGS PER DILUTED SHARE
(Unaudited) Three Months Ended December 31,   Six Months Ended December 31,
(Amounts in dollars) 2020     2019     2020     2019  
Earnings per diluted share $ 3.41     $ 1.57     $ 5.89     $ 4.17  
Adjustments:              
Acquired intangible asset amortization expense 0.62     0.57     1.25     0.95  
Business realignment charges 0.14     0.08     0.26     0.12  
Lord costs to achieve 0.02     0.05     0.05     0.08  
Exotic costs to achieve —              0.01  
Acquisition-related expenses —      1.14         1.28  
Gain on sale of land (0.77 )       (0.77 )    
Tax effect of adjustments1 0.02     (0.43 )   (0.16 )   (0.58 )
Adjusted earnings per diluted share $ 3.44     $ 2.98     $ 6.52     $ 6.03  
               
1This line item reflects the aggregate tax effect of all non-tax adjustments reflected in the preceding line items of the table. We estimate the tax effect of each adjustment item by applying our overall effective tax rate for continuing operations to the pre-tax amount, unless the nature of the item and/or the tax jurisdiction in which the item has been recorded requires application of a specific tax rate or tax treatment, in which case the tax effect of such item is estimated by applying such specific tax rate or tax treatment.
 


PARKER HANNIFIN CORPORATION - DECEMBER 31, 2020    
RECONCILIATION OF EBITDA TO ADJUSTED EBITDA
(Unaudited) Three Months Ended December 31,   Six Months Ended December 31,
(Dollars in thousands) 2020     2019     2020     2019  
Net sales $ 3,411,905     $ 3,497,974     $ 6,642,445     $ 6,832,485  
               
Net income $ 447,497     $ 204,598     $ 769,214     $ 543,639  
Income taxes 129,015     50,148     222,593     144,263  
Depreciation and amortization 149,818     144,229     298,260     253,300  
Interest expense 62,990     82,891     128,948     152,847  
EBITDA 789,320     481,866     1,419,015     1,094,049  
Adjustments:              
Business realignment charges 18,767     9,836     34,468     14,559  
Lord costs to achieve 3,249     6,725     6,864     10,139  
Exotic costs to achieve 343     489     675     1,084  
Acquisition-related expenses     148,467         165,916  
Gain on sale of land (100,893 )       (100,893 )    
Adjusted EBITDA $ 710,786     $ 647,383     $ 1,360,129     $ 1,285,747  
               
EBITDA margin 23.1 %   13.8 %   21.4 %   16.0 %
Adjusted EBITDA margin 20.8 %   18.5 %   20.5 %   18.8 %
                       


PARKER HANNIFIN CORPORATION - DECEMBER 31, 2020
BUSINESS SEGMENT INFORMATION 
(Unaudited) Three Months Ended December 31,   Six Months Ended December 31,
(Dollars in thousands) 2020     2019     2020     2019  
Net sales                              
Diversified Industrial:                              
North America $ 1,566,877     $ 1,615,852     $ 3,094,988     $ 3,240,457  
International 1,259,625     1,147,084     2,388,876     2,225,934  
Aerospace Systems 585,403     735,038     1,158,581     1,366,094  
Total net sales $ 3,411,905     $ 3,497,974     $ 6,642,445     $ 6,832,485  
Segment operating income              
Diversified Industrial:              
North America $ 281,619     $ 211,339     $ 550,452     $ 486,531  
International 220,213     153,816     407,114     322,389  
Aerospace Systems 90,729     121,039     177,495     244,019  
Total segment operating income 592,561     486,194     1,135,061     1,052,939  
Corporate general and administrative expenses 38,720     35,660     75,455     84,562  
Income before interest expense and other expense 553,841     450,534     1,059,606     968,377  
Interest expense 62,990     82,891     128,948     152,847  
Other (income) expense (85,661 )   112,897     (61,149 )   127,628  
Income before income taxes $ 576,512     $ 254,746     $ 991,807     $ 687,902  
                               


PARKER HANNIFIN CORPORATION - DECEMBER 31, 2020
RECONCILIATION OF TOTAL SEGMENT OPERATING MARGIN TO ADJUSTED TOTAL SEGMENT OPERATING MARGIN
               
(Unaudited) Three Months Ended   Three Months Ended
(Dollars in thousands) December 31, 2020   December 31, 2019
  Operating
income
    Operating
margin
    Operating
income
    Operating
margin
 
Total segment operating income $ 592,561     17.4 %   $ 486,194     13.9 %
Adjustments:              
Acquired intangible asset amortization expense 81,237         73,956      
Business realignment charges 17,922         9,719      
Lord costs to achieve 3,249         6,725      
Exotic costs to achieve 343         489      
Acquisition-related expenses         48,725      
Adjusted total segment operating income $ 695,312     20.4 %   $ 625,808     17.9 %
               
  Six Months Ended   Six Months Ended
  December 31, 2020   December 31, 2019
  Operating
income
    Operating
margin
    Operating
income
    Operating
margin
 
Total segment operating income $ 1,135,061     17.1 %   $ 1,052,939     15.4 %
Adjustments:              
Acquired intangible asset amortization expense 162,940         123,389      
Business realignment charges 32,445         14,437      
Lord costs to achieve 6,864         10,139      
Exotic costs to achieve 675         1,084      
Acquisition-related expenses         51,244      
Adjusted total segment operating income $ 1,337,985     20.1 %   $ 1,253,232     18.3 %
                           


PARKER HANNIFIN CORPORATION - DECEMBER 31, 2020
CONSOLIDATED BALANCE SHEET  
(Unaudited) December 31,     June 30,     December 31,  
(Dollars in thousands) 2020     2020     2019  
Assets                      
Current assets:                      
Cash and cash equivalents $ 564,734     $ 685,514     $ 948,355  
Marketable securities and other investments 43,314     70,805     145,120  
Trade accounts receivable, net 1,816,731     1,854,398     1,973,187  
Non-trade and notes receivable 312,590     244,870     319,126  
Inventories 1,870,948     1,814,631     2,014,260  
Prepaid expenses and other 191,362     214,986     261,103  
Total current assets 4,799,679     4,885,204     5,661,151  
Property, plant and equipment, net 2,302,142     2,292,735     2,335,940  
Deferred income taxes 134,325     126,839     114,032  
Investments and other assets 795,073     764,563     941,588  
Intangible assets, net 3,695,194     3,798,913     4,036,108  
Goodwill 8,101,016     7,869,935     7,955,170  
Total assets $ 19,827,429     $ 19,738,189     $ 21,043,989  
           
Liabilities and equity          
Current liabilities:          
Notes payable and long-term debt payable within one year $ 610,909     $ 809,529     $ 1,604,318  
Accounts payable, trade 1,343,011     1,111,759     1,311,733  
Accrued payrolls and other compensation 345,973     424,231     372,549  
Accrued domestic and foreign taxes 218,624     195,314     165,265  
Other accrued liabilities 688,566     607,540     637,257  
Total current liabilities 3,207,083     3,148,373     4,091,122  
Long-term debt 6,602,309     7,652,256     8,141,220  
Pensions and other postretirement benefits 1,843,209     1,887,414     1,366,814  
Deferred income taxes 420,699     382,528     569,582  
Other liabilities 631,825     539,089     532,750  
Shareholders' equity 7,105,982     6,113,983     6,330,175  
Noncontrolling interests 16,322     14,546     12,326  
Total liabilities and equity $ 19,827,429     $ 19,738,189     $ 21,043,989  
                       


PARKER HANNIFIN CORPORATION - DECEMBER 31, 2020
CONSOLIDATED STATEMENT OF CASH FLOWS   
(Unaudited) Six Months Ended December 31,
(Dollars in thousands) 2020     2019  
Cash flows from operating activities:              
Net income $ 769,214     $ 543,639  
Depreciation and amortization 298,260     253,300  
Share incentive plan compensation 79,833     73,069  
Gain on property, plant and equipment (102,565 )   (4,478 )
Gain on marketable securities (6,959 )   (1,969 )
Gain on investments (4,783 )   (1,849 )
Net change in receivables, inventories and trade payables 269,322     227,247  
Net change in other assets and liabilities 47,707     (278,168 )
Other, net 3,959     15,177  
Net cash provided by operating activities 1,353,988     825,968  
Cash flows from investing activities:      
Acquisitions (net of cash of $82,192 in 2019)     (5,075,605 )
Capital expenditures (92,907 )   (118,593 )
Proceeds from sale of property, plant and equipment 124,428     20,993  
Purchases of marketable securities and other investments (16,029 )   (190,129 )
Maturities and sales of marketable securities and other investments 52,019     198,872  
Other 11,183     9,374  
Net cash provided by (used in) investing activities 78,694     (5,155,088 )
Cash flows from financing activities:      
Net payments for common stock activity (57,688 )   (134,892 )
Net (payments for) proceeds from debt (1,324,348 )   2,416,222  
Dividends paid (227,228 )   (227,025 )
Net cash (used in) provided by financing activities (1,609,264 )   2,054,305  
Effect of exchange rate changes on cash 55,802     3,403  
Net decrease in cash and cash equivalents (120,780 )   (2,271,412 )
Cash and cash equivalents at beginning of year 685,514     3,219,767  
Cash and cash equivalents at end of period $ 564,734     $ 948,355  
               


PARKER HANNIFIN CORPORATION - DECEMBER 31, 2020 
RECONCILIATION OF FORECASTED EARNINGS PER DILUTED SHARE TO ADJUSTED FORECASTED EARNINGS PER DILUTED SHARE
   
(Unaudited)  
(Amounts in dollars) Fiscal Year 2021
Forecasted earnings per diluted share $11.90 to $12.40
Adjustments:  
Business realignment charges 0.46
Costs to achieve 0.11
Acquisition-related intangible asset amortization expense 2.47
Gain on sale of land (0.77)
Tax effect of adjustments1 (0.52)
Adjusted forecasted earnings per diluted share $13.65 to $14.15
   
1This line item reflects the aggregate tax effect of all non-tax adjustments reflected in the preceding line items of the table. We estimate the tax effect of each adjustment item by applying our overall effective tax rate for continuing operations to the pre-tax amount, unless the nature of the item and/or the tax jurisdiction in which the item has been recorded requires application of a specific tax rate or tax treatment, in which case the tax effect of such item is estimated by applying such specific tax rate or tax treatment.


     
Contact: Media -  
  Aidan Gormley - Director, Global Communications and Branding 216-896-3258
  aidan.gormley@parker.com   
     
  Financial Analysts -  
  Robin J. Davenport, Vice President, Corporate Finance 216-896-2265
  rjdavenport@parker.com   

Parker-Hannifin Aktie jetzt über den Testsieger (Finanztest 11/2020) handeln, ab 0 € auf Smartbroker.de



Wertpapier



0 Kommentare

Schreibe Deinen Kommentar

Bitte melden Sie sich an, um zu kommentieren. Anmelden | Registrieren

 

Disclaimer

Parker Reports Fiscal 2021 Second Quarter Results - Second quarter record net income of $447.3 million, EPS at $3.41 as reported, or $3.44 adjusted- Second quarter record total segment operating margin of 17.4% as reported, or 20.4% adjusted- Second quarter EBITDA margin was 23.1% as reported, or …

Nachrichten des Autors

Titel
Titel
Titel
Titel