Parker-Hannifin Corporation Reports Unaudited Consolidated Earnings Results for the Second Quarter and Six Months Ended December 31, 2015; Provides Earnings Guidance for the Third Quarter and Full Year of Fiscal 2016
January 26, 2016 at 07:30 am
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Parker-Hannifin Corporation reported unaudited consolidated earnings results for the second quarter and six months ended December 31, 2015. For the quarter, the company reported net sales of $2,705,590,000 against $3,134,993,000 a year ago. Income before income taxes was $229,880,000 against $343,266,000 a year ago. Net income attributable to common shareholders was $182,982,000 against $267,252,000 a year ago. Diluted earnings per share were $1.33 against $1.80 a year ago. Adjusted net income was $208,600,000 against $273,785,000 a year ago. Adjusted earnings per diluted share were $1.52 against $1.84 a year ago. Cash flow was 8.9% of sales.
For the six months, the company reported net sales of $5,574,938,000 against $6,404,925,000 a year ago. Income before income taxes was $505,529,000 against $739,901,000 a year ago. Net income attributable to common shareholders was $377,960,000 against $547,341,000 a year ago. Diluted earnings per share were $2.74 against $3.66 a year ago. Adjusted net income was $419,178,000 against $559,468,000 a year ago. Adjusted earnings per diluted share were $3.04 against $3.74 a year ago. Net cash provided by operating activities was $346,628,000 against $538,497,000 a year ago. Capital expenditures were $75,419,000 against $109,781,000 a year ago.
For the fiscal year ending June 30, 2016, the company has maintained the midpoint and narrowed the range of guidance for earnings from continuing operations to $5.40 to $5.80 per share, or $5.90 to $6.30 per share on an adjusted basis. Fiscal year 2016 guidance is adjusted for expected business realignment expenses of approximately $0.50 per share, of which $0.30 per share relates to the company's Simplification initiatives. Guidance also reflects an expected full year tax rate of approximately 28%.
For the third quarter of 2016, adjusted earnings per share is projected to be $1.40 per share at the midpoint, and this excludes $0.17 of business realignment expenses.
Parker Hannifin Corporation specializes in designing, manufacturing, and selling monitoring and control systems. Net sales break down by family of products as follows:
- industrial systems (84.1%): industrial pipes, pipe connectors and adapters, oil filters, air filters, motors, hydraulic pumps and valves, pneumatic accessories, diagnostic equipment, climate control and monitoring systems (carbonic gas control systems, electronic controllers, pressure regulators, electromagnetic valves, thermostatic pressure relief valves), etc. North America accounts for 57.7% of net sales;
- aerospace systems and components (15.9%): flight control systems, fluid flow automation and monitoring systems, hydraulic components, brakes, etc. intended for military and commercial aircraft.
Net sales break down geographically as follows: North America (64.4%), Europe (19.9%), Asia-Pacific (14.4%) and Latin America (1.3%).
Parker-Hannifin Corporation Reports Unaudited Consolidated Earnings Results for the Second Quarter and Six Months Ended December 31, 2015; Provides Earnings Guidance for the Third Quarter and Full Year of Fiscal 2016