Cleveland, OH-based motion control technology supplier Parker-Hannifin Corp. reported its 2015 fourth quarter and full year financial earnings on Tuesday.
The company totaled Q4 sales of $3.14 billion, down from last year's $3.53 billion, for which the company notes the effect of currency headwinds and reduced end market demand. Profit for Q4 was $179.6 million, a sharp drop from last year's $301.2 million.
"We continue to feel the effects of changes in currency rates and have been taking actions to adjust to weak macro-economic and end market conditions," said Tom Williams, Parker-Hannifin CEO. "Despite the significant year over year sales decline, the company performed well with adjusted segment operating margins growing to 14.9 percent from 14.4 percent in fiscal 2014."
For the full year, 2015 sales were $12.7 billion, down from 2014's $13.2 billion, for which the company noted the same challenges faced in Q4. Total 2015 profit was $1.01 billion, a dip from 2014's $1.04 bilion.
By segment, Parker-Hannifin's Industrial Segment had Q4 sales of $1.41 billion, down 7 percent from last year. Operating income of $228.9 million was down from last year's $268.7 million. International sales decreased 17 percent in Q4 to$1.14 billion, while Industrial operating income was $118.1 million, down from last year's $137.9 million.
Parker-Hannifin's Aerospace Systems segment had Q4 sales of $589.2 million, down 5 percent from last year. Operating income was $93.5 million, down from last year's $104.9 million.
The company reported a 9 percent decrease in Q4 orders, with Industrial North America orders down 9 percent, Industrial International down 5 percent, and a 14 percent decrease in Aerospace Systems orders.
The company expects ongoing demand decline into its fiscal 2016.
"We anticipate continued end market weakness in fiscal year 2016," Williams said. "Sales are expected to be down slightly and our results will be influenced by ongoing business realignment actions designed to drive efficiencies, streamline our operations and better serve our customers."
