Parker Appoints New Execs, Reports Major Sales Growth, Confirms Meggitt Acquisition

The news includes a new COO and handful of VPs, major growth in Parker's Industrial segments and a pending acquisition of aerospace-defense-energy supplier Meggitt.

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CLEVELAND — Parker Hannifin Corporation, the global provider in motion and control technologies, announced Aug. 13 that Lee C. Banks, currently president and chief operating officer, has been elected by the board of directors to a new role as vice chairman and president. The board also has elected Jennifer A. Parmentier, currently vice president and president - Motion Systems Group, to the role of chief operating officer, reporting to Banks. Berend Bracht, currently vice president of operations - Engineered Materials Group, has been elected to succeed Parmentier as vice president and president - Motion Systems Group. 

“Our strategic approach to succession planning across our leadership team allows our executives to build the experiences and skills necessary to continue the transformation of our company,” said Tom Williams, chairman and chief executive officer. “Lee’s new role will allow greater focus on our regional growth strategies and key commercial aspects of our company, in addition to his overall company responsibilities as President. Jenny has a proven record of success across Parker, which will serve her well as she takes on leadership responsibility for each of Parker’s operating groups.  We are pleased to be working closely with Jenny as a key member of the office of the chief executive.” 

Parmentier became vice president and president - Motion Systems Group in 2019 and has been responsible for all fiscal and strategic aspects of the group's global operations. prior to her current position, she served as vice president and president - Engineered Materials Group. Since joining Parker in 2008, she has held a variety of operational roles including general manager of the Sporlan Division, part of the Instrumentation Group, and general manager of the Hose Products Division in the Fluid Connectors Group. Prior to joining Parker, Parmentier was Business Leader for Ingersoll Rand Trane Residential Systems. Previously, she held operational leadership positions with Magna Corporation. She holds a Bachelor of Arts in Management from Webster University and an Executive MBA from Loyola Chicago Quinlan School of Business. She currently serves on the Board of Nordson Corporation, the National Fluid Power Association, the ALS Association Northern Ohio Chapter, and the Cuyahoga County Public Library Foundation.

Commenting on Bracht’s election as vice president and president - Motion Systems Group, Williams added, “Berend is well prepared to step into a group president role. He has demonstrated outstanding leadership skills, most recently as the integration leader for Parker LORD. His prior experiences across global operations and in leadership positions in motion and control technologies companies will allow him to be successful in his new role.” 

Bracht joined Parker in 2018 as vice president of operations - Engineered Materials Group where he has responsibility for the global operations of Parker LORD since its acquisition in 2019.  Before joining Parker, from 2015 to 2018, Bracht was president and CEO of Bendix Commercial Vehicle Systems LLC, a leader in the development and manufacture of leading-edge active safety and braking system technologies. Prior to joining Bendix, he had an accomplished 24-year career at Bosch Rexroth, a drive and control technology company, including serving as president and chief executive officer of Bosch Rexroth Americas.

Q4 and Full-year 2021 Results

On Aug. 5, Parker Hannifin reported results for the fiscal 2021 fourth quarter and full-year ended June 30, 2021. Fiscal 2021 fourth quarter sales were an all-time quarterly record at $3.96 billion, an increase of 25 percent compared with $3.16 billion in the fourth quarter of fiscal 2020. Net income was also a record at $504.8 million, an increase of 74 percent compared with $289.5 million in the prior-year quarter. Fiscal 2021 fourth quarter earnings per share were also an all-time quarterly record at $3.84, an increase of 72 percent compared with $2.23 in the fourth quarter of fiscal 2020. Adjusted earnings per share increased 46 percent to $4.38 compared with adjusted earnings per share of $2.99 in the prior-year quarter.

For the full year, fiscal 2021 sales were a record at $14.35 billion, an increase of 5 percent compared with $13.70 billion in fiscal 2020. Net income was a record at $1.75 billion, a 45 percent increase compared with $1.20 billion in the prior-year period.

In the fiscal 2021 fourth quarter, the company made debt repayments of $184 million, bringing the cumulative debt reduction to approximately $3.4 billion over the last 20 months. The company has now retired all serviceable debt bringing the multiple of gross debt to EBITDA down to 2.1 times.

Segment Results

Diversified Industrial Segment: North American fourth quarter sales increased 27 percent to $1.82 billion and operating income was $360.4 million compared with $219.8 million in the same period a year ago. International fourth quarter sales increased 37 percent to $1.51 billion and operating income was $306.5 million compared with $175.4 million in the same period a year ago.

Aerospace Systems Segment: Fourth quarter sales increased 1% to $630.0 million and operating income was $123.1 million compared with $105.4 million in the same period a year ago.

Parker reported the following orders for the quarter ending June 30, 2021, compared with the same quarter a year ago:

  • Orders increased 43% for total Parker
  • Orders increased 56% in the Diversified Industrial North America businesses
  • Orders increased 58% in the Diversified Industrial International businesses
  • Orders decreased 7% in the Aerospace Systems Segment on a rolling 12-month average basis

Offer to Acquire Meggitt PLC

As previously announced on Aug. 2, 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, an international group and a world leader in aerospace, defense and energy. The acquisition is expected to close in approximately 12 months, subject to customary closing conditions, including regulatory clearances and approval by Meggitt’s shareholders.

“The combination of Parker and Meggitt is an exciting opportunity for both companies’ team members, customers, shareholders and communities,” said Tom Williams, Parker chairman and CEO. “We strongly believe Parker is the right home for Meggitt. Together, we can better serve our customers through innovation, accelerated R&D and a complementary portfolio of aerospace and defense technologies.

“We are committed to being a responsible steward of Meggitt and are pleased our acquisition has the full support of Meggitt’s Board. We fully understand these responsibilities and are making a number of strong commitments that reflect them. During our longstanding presence in the UK we have built great respect for Meggitt, its heritage, and its place in British industry. Our own journey over more than 100 years has taught us the importance of a strong culture and reputation.”

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