CLEVELAND — On Nov. 4, Parker Hannifin Corporation reported results for its fiscal 2022 first quarter ended Sept. 30. Fiscal 2022 first quarter sales were a first quarter record at $3.76 billion, an increase of 17 percent compared with $3.23 billion in the first quarter of fiscal 2021. Net income was also a first quarter record at $451.2 million, an increase of 41 percent compared with $319.8 million in the prior year quarter.
“We delivered impressive results in the quarter,” said Tom Williams, Parker Hannifin chairman and CEO. "Our performance demonstrated operational discipline and agility in a challenging manufacturing environment that coupled increased demand with labor and supply chain constraints. We achieved first quarter records for sales, segment operating margins, net income and earnings per share. Adjusted total segment operating margin and adjusted EBITDA margin both increased 210 basis points as a result of The Win Strategy 3.0, portfolio enhancements and the excellent efforts from our global team.”
Diversified Industrial Segment: North American first quarter sales increased 17% to $1.79 billion and operating income was $333.7 million compared with $268.8 million in the same period a year ago. International first quarter sales increased 22% to $1.38 billion and operating income was $291.2 million compared with $186.9 million in the same period a year ago.
Aerospace Systems Segment: First quarter sales increased 3% to $592.7 million and operating income was $118.3 million compared with $86.8 million in the same period a year ago.
Parker reported the following orders for the quarter ending September 30, 2021, compared with the same quarter a year ago:
- Orders increased 26% for total Parker
- Orders increased 32% in the Diversified Industrial North America businesses
- Orders increased 25% in the Diversified Industrial International businesses
- Orders increased 16% in the Aerospace Systems Segment on a rolling 12-month average basis
Offer to Acquire Meggitt PLC
As previously announced on August 2, 2021, the company has reached an agreement on the terms of a recommended cash acquisition of the entire issued and to be issued ordinary share capital of Meggitt PLC. The acquisition was approved by Meggitt shareholders on September 21, 2021. The transaction remains subject to satisfaction of the conditions set out in the scheme document, including regulatory clearances. Under the UK Companies Act, the Scheme of Arrangement further requires the sanction of the Court, currently expected during the third quarter of calendar year 2022.
For the fiscal year ending June 30, 2022, the company has increased guidance for earnings per share to the range of $14.52 to $15.22, or $16.95 to $17.65 on an adjusted basis. Guidance assumes organic sales growth of approximately 7% to 10% compared with the prior year.
Williams added, “Robust demand trends continue across nearly all of our end markets reinforcing our positive outlook for sales and earnings per share for this fiscal year. The transformation of our portfolio and the Win Strategy 3.0 continue to position us to deliver sustainable long-term growth and top quartile performance."