Cleveland, OH - Parker Hannifin Corporation reported results for the fiscal 2014 first quarter ended September 30, 2013. Fiscal 2014 first quarter sales were $3.23 billion compared with $3.21 billion in the prior year quarter. Net income was $244.3 million compared with $239.9 million in the first quarter of fiscal 2013. Fiscal 2014 first quarter earnings per diluted share were $1.61 compared with $1.57 in the prior year quarter and included $0.06 per diluted share in expenses associated with its previously announced restructuring initiatives. Cash flow from operations was $282.7 million or 8.8 percent of sales and was 11.1 percent of sales before a discretionary pension contribution of $75 million.
"I am pleased that we delivered strong first quarter segment operating profit, earnings and cash flow performance in a mixed economic environment," said Chairman, CEO and President, Don Washkewicz. "Our order growth this quarter and near-term improvements in several key macroeconomic indicators support our revised guidance."
Segment Results
Diversified Industrial Segment: North American first quarter sales decreased 2.6 percent to $1.39 billion, and operating income was $234.2 million compared with $244.1 million in the same period a year ago. International first quarter sales increased 1.8 percent to $1.27 billion, and operating income was $173.4 million compared with $156.6 million in the same period a year ago. Aerospace Systems Segment: First quarter sales increased 4.9 percent to $567.5 million, and operating income was $57.3 million compared with $61.9 million in the same period a year ago.
Orders
Parker reported an increase of 5 percent in orders for the quarter ending September 30, 2013, compared with the same quarter a year ago.
The company reported the following orders by business:
-- Orders increased 3 percent in the Diversified Industrial North America businesses compared with the same quarter a year ago.
-- Orders increased 5 percent in the Diversified Industrial International businesses compared with the same quarter a year ago.
-- Orders increased 11 percent in the Aerospace Systems segment on a rolling 12-month average basis.
Outlook
For the fiscal year ending June 30, 2014, the company has increased guidance for earnings from continuing operations to the range of $7.78 to $8.38 per diluted share. Fiscal 2014 guidance includes expenses of $100 million or $0.47 per diluted share associated with its previously announced restructuring and an expected gain of $1.68 per diluted share associated with a joint venture agreement between Parker Aerospace and GE Aviation to be recorded in the quarter ending December 31, 2013. A reconciliation of current guidance to previous guidance is included in the first quarter earnings call presentation, which has been posted to www.phstock.com.
Washkewicz added, "We are increasing our fiscal 2014 guidance to reflect higher than anticipated earnings in the first quarter and a larger than expected gain related to the GE Aviation joint venture, which will be recorded in our second quarter. We are also moving forward with our restructuring activities having announced plant consolidations and other organizational improvements. These actions are designed to strengthen our global competitiveness."
