Parker Hannifin Corp. reported record profits per share of $2.15, up 21 percent, for the fourth quarter of fiscal 2017.
MAYFIELD HEIGHTS, Ohio - Parker Hannifin Corp., the Fortune 250 global leader in motion and control technologies, reported record profits per share of $2.15, up 21 percent, for the fourth quarter of its 2017 fiscal year.
"Our fourth quarter performance was outstanding, and capped a year in which we made tremendous progress with actions that are driving significant long-term shareholder value and financial performance," Chairman and Chief Executive Tom Williams said in a written statement.
"Orders grew for the fourth consecutive quarter, as we see continued signs of demand improving in key end markets and regions," he said. Orders grew 10 percent among its industrial North American businesses, 10 percent among its industrial international businesses, and 8 percent for Parker overall during the fourth quarter.
"This was also a transformative year for our portfolio as we acquired Clarcor, resulting in a significant increase to our filtration business and the aftermarket mix of Parker," Williams said. Clarcor, founded in 1904 and based in Franklin, Tennessee, is a global manufacturer of mobile, industrial and environmental filtration products with annual sales of about $1.4 billion.
Highlights for the quarter that ended June 30 include:
- Fourth-quarter profits rose 21 percent to $293.4 million, compared with $241.9 million in the fourth quarter of fiscal 2016.
- Fourth-quarter sales rose 18 percent to $3.50 billion, compared with $2.96 billion in the same quarter last year.
- Fourth-quarter diluted earnings per share increased to $2.15, compared with $1.77 per share in fiscal 2016. If not for pre-tax expenses of $21.4 million for business realignment and $36.3 million related to acquisitions, profits per share would have risen 29 percent to $2.45.
For fiscal 2017 as a whole:
- Sales increased 6 percent to $12.0 billion, compared to $11.4 billion last fiscal year.
- Profits rose 22 percent to $983.8 million, compared to $807.2 million in fiscal 2016.
- Profits per share grew 23 percent to $7.25, compared with $5.89 in fiscal 2016. Profits per share would have risen 26 percent to $8.11 if not for pre-tax expenses of $56.4 million for business realignment and $103.1 million related to acquisitions.
For the 2018 fiscal year, Parker expects earnings from continuing operations of $7.88 to $8.58 per share. That includes adjustments of about $58 million for expected business realignment and about $52 million for Clarcor acquisition costs.
"Looking ahead to fiscal year 2018, we are anticipating a record year as we continue to operate with the benefit of stronger market conditions for the full year, a lower fixed cost structure, and the strategic addition of Clarcor to our portfolio," Williams said.
"Our focus remains on further advancing the new Win Strategy initiatives" and outpacing the financial performance of its competitors, "placing Parker among the best performing diversified industrial companies in the world."
Parker's shares closed at $165.32 on Thursday, up $1.02 from Wednesday's close of $164.30.
