Parker Hannifin Corporation (NYSE: PH), the global leader in motion
and control technologies, today reported results for the fiscal
2019 first quarter ended September 30, 2018. Fiscal 2019
first quarter sales increased 3% to $3.48 billion compared with
$3.36 billion in the prior year quarter. Net income increased
32% to $375.7 million compared with $285.4 million in the prior
year quarter. Fiscal 2019 first quarter earnings per share
increased 33% to $2.79, compared with $2.10 in the fiscal 2018
first quarter. On an adjusted basis, earnings per share
increased 27% to $2.84, compared with adjusted earnings per share
of $2.24 in the prior year quarter. Fiscal year to date net
cash provided by operating activities was $159.4 million or 4.6% of
sales. Excluding a $200 million discretionary pension
contribution, operating cash flow was 10.3% of sales, compared with
7.1% of sales in the prior year period. A reconciliation of
non-GAAP measures is included in the financial tables of this press
release. “This was an excellent start to fiscal 2019,
reflecting benefits of our continued execution of the Win
Strategy™, which is driving record performance levels,” said
Chairman and Chief Executive Officer, Tom Williams. “Strong
organic growth of 6% was consistent with our expectations, while
sales were partially offset by higher unfavorable currency
impact. We generated record segment operating margins for the
company, which increased 140 basis points. All-time quarterly
records for earnings per share, net income and return on sales
further demonstrate that our actions are driving the consistent
improvement of Parker’s financial performance and reinforce our
confidence in achieving another record year for sales and
earnings.”
First Quarter Fiscal 2019 Segment
ResultsDiversified Industrial Segment: North American
first quarter sales increased 5% to $1.7 billion, and operating
income increased 8% to $275.1 million compared with $256.0 million
in the same period a year ago. While first quarter
International sales were flat at $1.2 billion, operating income
increased 8% to $206.1 million compared with $191.8 million in the
fiscal 2018 first quarter.
Aerospace Systems Segment: First quarter sales were $564.5
million compared with $531.2 million in the prior year period, and
operating income increased 42% to $109.9 million compared with
$77.4 million in the same period a year ago.
Parker reported the following orders for the quarter ending
September 30, 2018, compared with the same quarter a year ago:
- Orders increased 5% for total Parker
- Orders increased 8% in the Diversified Industrial North America
businesses
- Orders increased 3% in the Diversified Industrial International
businesses
- Orders increased 3% in the Aerospace Systems Segment on a
rolling 12-month average basis
OutlookFor the fiscal year ending June 30,
2019, the company has revised guidance for earnings in the range of
$10.90 to $11.50 per share, or $11.10 to $11.70 per share on an
adjusted basis. Fiscal year 2019 guidance is adjusted on a
pre-tax basis for expected business realignment expenses of
approximately $22 million and CLARCOR costs to achieve of
approximately $13 million. Guidance assumes organic sales
growth in the range of 2.5% to 5.3%.
Williams added, “With generally positive conditions across
our end markets, and our ongoing commitment to the Win Strategy
initiatives, the increase of our guidance at the operating line
reflects the additional earnings achieved in the first quarter as
well as our confidence in the outlook for the remainder of the
year. Slightly offsetting this increase is higher tax expense
for the rest of the year. We are very pleased with our first
quarter performance as it reinforces our belief in achieving our
fiscal 2023 performance goals.”
NOTICE OF CONFERENCE CALL: Parker Hannifin's
conference call and slide presentation to discuss its fiscal 2019
first quarter results are available to all interested parties via
live webcast today at 11:00 a.m. ET, on the company's investor
information web site at www.phstock.com. To access the call,
click on the "Live Webcast" link. From this link, users also
may complete a pre-call system test and register for e-mail
notification of future events and information available from
Parker. A replay of the webcast will be accessible on
Parker's investor relations website, www.phstock.com, approximately
one hour after the completion of the call, and will remain
available for one year. To register for e-mail notification
of future events and information available from Parker please visit
www.phstock.com.
Parker Hannifin is a Fortune 250 global leader in motion and
control technologies. For over 100 years the company has
engineered the success of its customers in a wide range of
diversified industrial and aerospace markets. Parker has
increased its annual dividend per share paid to shareholders for 62
consecutive fiscal years, among the top five longest-running
dividend-increase records in the S&P 500 index. Learn
more at www.parker.com or @parkerhannifin.
Note on OrdersOrders provide near-term
perspective on the company's outlook, particularly when viewed in
the context of prior and future quarterly order rates. However,
orders are not in themselves an indication of future performance.
All comparisons are at constant currency exchange rates, with the
prior year restated to the current-year rates. All exclude
acquisitions until they can be reflected in both the numerator and
denominator. Aerospace comparisons are rolling 12-month average
computations. The total Parker orders number is derived from a
weighted average of the year-over-year quarterly % change in orders
for Diversified Industrial North America and Diversified Industrial
International, and the year-over-year 12-month rolling average of
orders for the Aerospace Systems Segment.
Note on Net IncomeNet Income referenced in this
press release is equal to net income attributable to common
shareholders.
Note on Non-GAAP NumbersThis press release
contains references to (a) earnings per share without the effect of
business realignment charges, CLARCOR costs to achieve and loss on
sale of investment, (b) segment operating margins without the
effect of business realignment charges and CLARCOR costs to
achieve; (c) the effect of business realignment charges and CLARCOR
costs to achieve on forecasted earnings from continuing operations
per share; (d) and cash flows from operations without the
effect of discretionary pension contributions. The
effects of business realignment charges, CLARCOR costs to achieve,
loss on sale of investment and discretionary pension
contributions are removed to allow investors and the company to
meaningfully evaluate changes in earnings per share, segment
operating margins and cash flows from operations on a comparable
basis from period to period. This press release also contains
references to EBITDA and adjusted EBITDA. EBITDA is defined as
earnings before interest, taxes, depreciation and amortization.
Adjusted EBITDA is defined as EBITDA before business
realignment charges, CLARCOR costs to achieve, and loss on
sale of investment. Although EBITDA and Adjusted EBITDA are
not measures of performance calculated in accordance with GAAP, we
believe that it is useful to an investor in evaluating the results
of this quarter versus the prior period.
Forward-Looking StatementsForward-looking
statements contained in this and other written and oral reports are
made based on known events and circumstances at the time of
release, and as such, are subject in the future to unforeseen
uncertainties and risks. These statements may be identified from
the use of forward-looking terminology such as “anticipates,”
“believes,” “may,” “should,” “could,” “potential,” “continues,”
“plans,” “forecasts,” “estimates,” “projects,” “predicts,” “would,”
“intends,” “anticipates,” “expects,” “targets,” “is likely,”
“will,” or the negative of these terms and similar expressions, and
include all statements regarding future performance, earnings
projections, events or developments.
It is possible that the future performance and earnings
projections of the company, including its individual segments, may
differ materially from current expectations, depending on economic
conditions within its mobile, industrial and aerospace markets, and
the company's ability to maintain and achieve anticipated benefits
associated with announced realignment activities, strategic
initiatives to improve operating margins, actions taken to combat
the effects of the current economic environment, and growth,
innovation and global diversification initiatives. A change in the
economic conditions in individual markets may have a particularly
volatile effect on segment performance. Additionally, the actual
impact of the U.S. Tax Cuts and Jobs Act may affect future
performance and earnings projections as the amounts reflected in
this period are preliminary estimates and exact amounts will not be
determined until a later date, and there may be other judicial or
regulatory interpretations of the U.S. Tax Cuts and Jobs Act that
may also affect these estimates and the actual impact on the
company. A change in the economic conditions in individual markets
may have a particularly volatile effect on segment performance.
Among other factors which may affect future performance of the
company are, as applicable: changes in business relationships with
and purchases by or from major customers, suppliers or
distributors, including delays or cancellations in shipments;
disputes regarding contract terms or significant changes in
financial condition, changes in contract cost and revenue estimates
for new development programs and changes in product mix; ability to
identify acceptable strategic acquisition targets; uncertainties
surrounding timing, successful completion or integration of
acquisitions and similar transactions, including the integration of
CLARCOR; the ability to successfully divest businesses planned for
divestiture and realize the anticipated benefits of such
divestitures; the determination to undertake business realignment
activities and the expected costs thereof and, if undertaken, the
ability to complete such activities and realize the anticipated
cost savings from such activities; ability to implement
successfully capital allocation initiatives, including timing,
price and execution of share repurchases; availability, limitations
or cost increases of raw materials, component products and/or
commodities that cannot be recovered in product pricing; ability to
manage costs related to insurance and employee retirement and
health care benefits; compliance costs associated with
environmental laws and regulations; potential labor disruptions;
threats associated with and efforts to combat terrorism and
cyber-security risks; uncertainties surrounding the ultimate
resolution of outstanding legal proceedings, including the outcome
of any appeals; global competitive market conditions, including
global reactions to U.S. trade policies, and resulting effects on
sales and pricing; and global economic factors, including
manufacturing activity, air travel trends, currency exchange rates,
difficulties entering new markets and general economic conditions
such as inflation, deflation, interest rates and credit
availability. The company makes these statements as of the date of
this disclosure and undertakes no obligation to update them unless
otherwise required by law.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
PARKER HANNIFIN CORPORATION - SEPTEMBER
30, 2018 |
|
|
|
|
|
|
|
|
|
|
|
CONSOLIDATED STATEMENT OF
INCOME |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Unaudited) |
|
Three Months Ended September
30, |
|
|
|
|
|
|
|
|
|
|
|
|
(Dollars in thousands except per
share amounts) |
|
2018 |
|
|
|
2017 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net sales |
|
|
$ |
3,479,294 |
|
|
$ |
3,364,651 |
|
|
|
|
|
|
|
|
|
|
|
|
Cost of sales |
|
|
|
2,594,823 |
|
|
|
2,523,294 |
|
|
|
|
|
|
|
|
|
|
|
|
Selling, general and administrative
expenses |
|
394,322 |
|
|
|
396,984 |
|
|
|
|
|
|
|
|
|
|
|
|
Interest expense |
|
44,339 |
|
|
|
53,555 |
|
|
|
|
|
|
|
|
|
|
|
|
Other (income) expense,
net |
|
(13,913 |
) |
|
|
16,516 |
|
|
|
|
|
|
|
|
|
|
|
|
Income before income taxes |
|
459,723 |
|
|
|
374,302 |
|
|
|
|
|
|
|
|
|
|
|
|
Income taxes |
|
83,824 |
|
|
|
88,767 |
|
|
|
|
|
|
|
|
|
|
|
|
Net income |
|
375,899 |
|
|
|
285,535 |
|
|
|
|
|
|
|
|
|
|
|
|
Less: Noncontrolling
interests |
|
188 |
|
|
|
138 |
|
|
|
|
|
|
|
|
|
|
|
|
Net income attributable
to common shareholders |
$ |
375,711 |
|
|
$ |
285,397 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per share
attributable to common shareholders: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic earnings per
share |
$ |
2.84 |
|
|
$ |
2.14 |
|
|
|
|
|
|
|
|
|
|
|
|
Diluted earnings per
share |
$ |
2.79 |
|
|
$ |
2.10 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average shares outstanding during period -
Basic |
|
132,361,654 |
|
|
|
133,176,964 |
|
|
|
|
|
|
|
|
|
|
|
|
Average shares outstanding during period -
Diluted |
|
134,664,496 |
|
|
|
135,794,270 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash dividends per common
share |
$ |
0.76 |
|
|
$ |
0.66 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
RECONCILIATION OF EARNINGS PER DILUTED
SHARE TO ADJUSTED EARNINGS PER DILUTED SHARE |
|
|
|
|
|
|
|
|
|
(Unaudited) |
Three Months Ended September
30, |
|
|
|
|
|
|
|
|
|
|
|
|
(Amounts in dollars) |
|
2018 |
|
|
|
2017 |
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per diluted
share |
$ |
2.79 |
|
|
$ |
2.10 |
|
|
|
|
|
|
|
|
|
|
|
|
Adjustments: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loss on sale of investment |
|
- |
|
|
|
0.07 |
|
|
|
|
|
|
|
|
|
|
|
|
Business realignment charges |
|
0.01 |
|
|
|
0.04 |
|
|
|
|
|
|
|
|
|
|
|
|
Clarcor costs to
achieve |
|
0.04 |
|
|
|
0.03 |
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted earnings per
diluted share |
$ |
2.84 |
|
|
$ |
2.24 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
RECONCILIATION OF EBITDA TO ADJUSTED
EBITDA |
|
|
|
|
|
|
|
|
|
|
|
(Unaudited) |
Three Months Ended September
30, |
|
|
|
|
|
|
|
|
|
|
|
|
(Dollars in
thousands) |
|
2018 |
|
|
|
2017 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net sales |
|
$ |
3,479,294 |
|
|
$ |
3,364,651 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings before income taxes |
$ |
459,723 |
|
|
$ |
374,302 |
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation and amortization |
|
|
112,491 |
|
|
|
116,107 |
|
|
|
|
|
|
|
|
|
|
|
|
Interest expense |
|
|
44,339 |
|
|
|
53,555 |
|
|
|
|
|
|
|
|
|
|
|
|
EBITDA |
|
|
|
|
616,553 |
|
|
|
543,964 |
|
|
|
|
|
|
|
|
|
|
|
|
Adjustments: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loss on sale of investment |
|
- |
|
|
|
13,777 |
|
|
|
|
|
|
|
|
|
|
|
|
Business realignment charges |
|
2,403 |
|
|
|
8,226 |
|
|
|
|
|
|
|
|
|
|
|
|
Clarcor costs to
achieve |
|
6,210 |
|
|
|
5,800 |
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted
EBITDA |
|
|
$ |
625,166 |
|
|
$ |
571,767 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EBITDA margin |
|
17.7 |
% |
|
|
16.2 |
% |
|
|
|
|
|
|
|
|
|
|
|
Adjusted EBITDA margin |
|
18.0 |
% |
|
|
17.0 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
BUSINESS SEGMENT
INFORMATION |
|
|
|
|
|
|
|
|
|
|
|
(Unaudited) |
Three Months Ended September
30, |
|
|
|
|
|
|
|
|
|
|
|
|
(Dollars in
thousands) |
|
2018 |
|
|
|
2017 |
|
|
|
|
|
|
|
|
|
|
|
|
Net sales |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diversified Industrial: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
North America |
$ |
1,681,044 |
|
|
$ |
1,594,691 |
|
|
|
|
|
|
|
|
|
|
|
|
International |
|
1,233,766 |
|
|
|
1,238,774 |
|
|
|
|
|
|
|
|
|
|
|
|
Aerospace
Systems |
|
564,484 |
|
|
|
531,186 |
|
|
|
|
|
|
|
|
|
|
|
|
Total net
sales |
$ |
3,479,294 |
|
|
$ |
3,364,651 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Segment operating
income |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diversified Industrial: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
North America |
$ |
275,111 |
|
|
$ |
256,027 |
|
|
|
|
|
|
|
|
|
|
|
|
International |
|
206,094 |
|
|
|
191,791 |
|
|
|
|
|
|
|
|
|
|
|
|
Aerospace
Systems |
|
109,855 |
|
|
|
77,434 |
|
|
|
|
|
|
|
|
|
|
|
|
Total segment operating
income |
|
591,060 |
|
|
|
525,252 |
|
|
|
|
|
|
|
|
|
|
|
|
Corporate general and
administrative expenses |
|
50,325 |
|
|
|
41,350 |
|
|
|
|
|
|
|
|
|
|
|
|
Income before interest and other
expense |
|
540,735 |
|
|
|
483,902 |
|
|
|
|
|
|
|
|
|
|
|
|
Interest expense |
|
44,339 |
|
|
|
53,555 |
|
|
|
|
|
|
|
|
|
|
|
|
Other expense |
|
36,673 |
|
|
|
56,045 |
|
|
|
|
|
|
|
|
|
|
|
|
Income before income
taxes |
$ |
459,723 |
|
|
$ |
374,302 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
RECONCILIATION OF TOTAL SEGMENT OPERATING
MARGIN TO ADJUSTED TOTAL SEGMENT OPERATING MARGIN |
|
|
|
|
|
|
|
|
|
(Unaudited) |
Three Months
Ended |
|
Three Months Ended |
|
|
|
|
|
|
|
(Dollars in
thousands) |
September 30,
2018 |
|
September 30, 2017 |
|
|
|
|
|
|
|
|
Operating
income |
|
|
Operating
margin |
|
Operating income |
|
Operating margin |
|
|
|
|
|
|
|
Total segment operating
income |
|
$ |
591,060 |
|
|
|
17.0 |
% |
|
$ |
525,252 |
|
15.6 |
% |
|
|
|
|
|
|
|
Adjustments: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Business realignment charges |
|
2,403 |
|
|
|
|
|
8,226 |
|
|
|
|
|
|
|
|
|
Clarcor costs to
achieve |
|
6,155 |
|
|
|
|
|
5,800 |
|
|
|
|
|
|
|
|
|
Adjusted total segment
operating income |
$ |
599,618 |
|
|
|
17.2 |
% |
|
$ |
539,278 |
|
16.0 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CONSOLIDATED BALANCE SHEET |
|
|
|
|
|
|
|
|
|
|
|
(Unaudited) |
|
September
30, |
|
|
June 30, |
|
|
September 30, |
|
|
|
|
|
|
|
|
|
(Dollars in
thousands) |
|
|
2018 |
|
|
|
2018 |
|
|
|
2017 |
|
|
|
|
|
|
|
|
|
Assets |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Current assets: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash and cash equivalents |
$ |
952,122 |
|
|
$ |
822,137 |
|
|
$ |
874,766 |
|
|
|
|
|
|
|
|
|
Marketable securities and other
investments |
|
40,787 |
|
|
|
32,995 |
|
|
|
99,792 |
|
|
|
|
|
|
|
|
|
Trade accounts receivable, net |
|
2,065,158 |
|
|
|
2,145,517 |
|
|
|
1,922,288 |
|
|
|
|
|
|
|
|
|
Non-trade and notes receivable |
|
312,162 |
|
|
|
328,399 |
|
|
|
266,421 |
|
|
|
|
|
|
|
|
|
Inventories |
|
1,762,640 |
|
|
|
1,621,304 |
|
|
|
1,707,001 |
|
|
|
|
|
|
|
|
|
Prepaid expenses and
other |
|
165,213 |
|
|
|
134,886 |
|
|
|
134,350 |
|
|
|
|
|
|
|
|
|
Total current assets |
|
5,298,082 |
|
|
|
5,085,238 |
|
|
|
5,004,618 |
|
|
|
|
|
|
|
|
|
Plant and equipment, net |
|
1,828,034 |
|
|
|
1,856,237 |
|
|
|
1,962,846 |
|
|
|
|
|
|
|
|
|
Deferred income taxes |
|
99,886 |
|
|
|
57,623 |
|
|
|
35,194 |
|
|
|
|
|
|
|
|
|
Goodwill |
|
5,485,144 |
|
|
|
5,504,420 |
|
|
|
5,679,239 |
|
|
|
|
|
|
|
|
|
Intangible assets, net |
|
1,956,101 |
|
|
|
2,015,520 |
|
|
|
2,215,297 |
|
|
|
|
|
|
|
|
|
Other assets |
|
757,795 |
|
|
|
801,049 |
|
|
|
834,085 |
|
|
|
|
|
|
|
|
|
Total
assets |
|
|
$ |
15,425,042 |
|
|
$ |
15,320,087 |
|
|
$ |
15,731,279 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities and equity |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Current liabilities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Notes payable |
$ |
796,861 |
|
|
$ |
638,466 |
|
|
$ |
1,144,054 |
|
|
|
|
|
|
|
|
|
Accounts payable |
|
1,404,716 |
|
|
|
1,430,306 |
|
|
|
1,304,260 |
|
|
|
|
|
|
|
|
|
Accrued liabilities |
|
868,521 |
|
|
|
929,833 |
|
|
|
845,524 |
|
|
|
|
|
|
|
|
|
Accrued domestic and foreign
taxes |
|
238,423 |
|
|
|
198,878 |
|
|
|
173,286 |
|
|
|
|
|
|
|
|
|
Total current
liabilities |
|
3,308,521 |
|
|
|
3,197,483 |
|
|
|
3,467,124 |
|
|
|
|
|
|
|
|
|
Long-term debt |
|
4,313,221 |
|
|
|
4,318,559 |
|
|
|
4,788,147 |
|
|
|
|
|
|
|
|
|
Pensions and other postretirement
benefits |
|
958,937 |
|
|
|
1,177,605 |
|
|
|
1,391,820 |
|
|
|
|
|
|
|
|
|
Deferred income taxes |
|
265,418 |
|
|
|
234,858 |
|
|
|
212,334 |
|
|
|
|
|
|
|
|
|
Other liabilities |
|
471,839 |
|
|
|
526,089 |
|
|
|
341,195 |
|
|
|
|
|
|
|
|
|
Shareholders' equity |
|
6,101,380 |
|
|
|
5,859,866 |
|
|
|
5,524,940 |
|
|
|
|
|
|
|
|
|
Noncontrolling
interests |
|
5,726 |
|
|
|
5,627 |
|
|
|
5,719 |
|
|
|
|
|
|
|
|
|
Total liabilities and
equity |
$ |
15,425,042 |
|
|
$ |
15,320,087 |
|
|
$ |
15,731,279 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CONSOLIDATED STATEMENT OF CASH
FLOWS |
|
|
|
|
|
|
|
|
|
|
|
|
|
(Unaudited) |
Three Months Ended September
30, |
|
|
|
|
|
|
|
|
|
|
|
|
(Dollars in
thousands) |
|
2018 |
|
|
|
2017 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash flows from operating
activities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income |
$ |
375,899 |
|
|
$ |
285,535 |
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation and amortization |
|
112,491 |
|
|
|
116,107 |
|
|
|
|
|
|
|
|
|
|
|
|
Stock incentive plan compensation |
|
42,941 |
|
|
|
43,211 |
|
|
|
|
|
|
|
|
|
|
|
|
Loss on sale of businesses |
|
3,029 |
|
|
|
- |
|
|
|
|
|
|
|
|
|
|
|
|
(Gain) on disposal of assets |
|
(3,826 |
) |
|
|
(256 |
) |
|
|
|
|
|
|
|
|
|
|
|
(Gain) on sale of marketable securities |
|
(3,204 |
) |
|
|
- |
|
|
|
|
|
|
|
|
|
|
|
|
(Gain) loss on investments |
|
(2,536 |
) |
|
|
13,777 |
|
|
|
|
|
|
|
|
|
|
|
|
Net change in receivables, inventories, and trade
payables |
|
(70,973 |
) |
|
|
(129,061 |
) |
|
|
|
|
|
|
|
|
|
|
|
Net change in other assets and
liabilities |
|
(329,726 |
) |
|
|
(105,127 |
) |
|
|
|
|
|
|
|
|
|
|
|
Other, net |
|
35,293 |
|
|
|
13,814 |
|
|
|
|
|
|
|
|
|
|
|
|
Net cash provided by
operating activities |
|
159,388 |
|
|
|
238,000 |
|
|
|
|
|
|
|
|
|
|
|
|
Cash flows from investing
activities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Acquisitions (net of cash of $690 in
2018) |
|
(2,042 |
) |
|
|
- |
|
|
|
|
|
|
|
|
|
|
|
|
Capital expenditures |
|
(42,106 |
) |
|
|
(79,336 |
) |
|
|
|
|
|
|
|
|
|
|
|
Proceeds from sale of plant and
equipment |
|
10,969 |
|
|
|
12,448 |
|
|
|
|
|
|
|
|
|
|
|
|
Proceeds from sale of businesses |
|
4,515 |
|
|
|
- |
|
|
|
|
|
|
|
|
|
|
|
|
Purchases of marketable securities and other
investments |
|
(2,844 |
) |
|
|
(70,253 |
) |
|
|
|
|
|
|
|
|
|
|
|
Maturities and sales of marketable securities and
other investments |
14,127 |
|
|
|
12,499 |
|
|
|
|
|
|
|
|
|
|
|
|
Other, net |
|
2,318 |
|
|
|
7,329 |
|
|
|
|
|
|
|
|
|
|
|
|
Net cash (used in)
investing activities |
|
|
(15,063 |
) |
|
|
(117,313 |
) |
|
|
|
|
|
|
|
|
|
|
|
Cash flows from financing
activities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net payments for common stock activity |
|
(64,855 |
) |
|
|
(76,915 |
) |
|
|
|
|
|
|
|
|
|
|
|
Net proceeds from debt |
|
158,477 |
|
|
|
29,606 |
|
|
|
|
|
|
|
|
|
|
|
|
Dividends |
|
(100,869 |
) |
|
|
(88,104 |
) |
|
|
|
|
|
|
|
|
|
|
|
Net cash (used in)
financing activities |
|
(7,247 |
) |
|
|
(135,413 |
) |
|
|
|
|
|
|
|
|
|
|
|
Effect of exchange rate changes
on cash |
|
(7,093 |
) |
|
|
4,606 |
|
|
|
|
|
|
|
|
|
|
|
|
Net increase (decrease) in cash and cash
equivalents |
|
129,985 |
|
|
|
(10,120 |
) |
|
|
|
|
|
|
|
|
|
|
|
Cash and cash equivalents at
beginning of period |
|
822,137 |
|
|
|
884,886 |
|
|
|
|
|
|
|
|
|
|
|
|
Cash and cash
equivalents at end of period |
$ |
952,122 |
|
|
$ |
874,766 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
RECONCILIATION OF CASH FLOW FROM
OPERATIONS TO ADJUSTED CASH FLOW FROM OPERATIONS |
|
|
|
|
|
|
|
|
|
|
|
(Unaudited) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Dollars in thousands) |
Three Months Ended
September 30, 2018 |
|
|
|
Three Months Ended September 30,
2017 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Percent of
sales |
|
|
|
Percent of sales |
|
|
|
|
|
|
|
As reported cash flow from
operations |
$ |
159,388 |
|
|
|
4.6 |
% |
|
$ |
238,000 |
|
7.1 |
% |
|
|
|
|
|
|
|
Discretionary pension
contribution |
|
200,000 |
|
|
|
|
|
- |
|
|
|
|
|
|
|
|
|
Adjusted cash flow from
operations |
$ |
359,388 |
|
|
|
10.3 |
% |
|
$ |
238,000 |
|
7.1 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
RECONCILIATION OF FORECASTED EARNINGS PER
DILUTED SHARE TO ADJUSTED FORECASTED EARNINGS PER DILUTED
SHARE |
|
|
|
|
|
|
|
|
|
(Unaudited) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Amounts in dollars) |
Fiscal Year |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2019 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Forecasted earnings per diluted
share |
$10.90 -
$11.50 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjustments: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Business realignment charges |
|
0.13 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Clarcor costs to
achieve |
|
0.07 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted forecasted
earnings per diluted share |
$11.10 -
$11.70 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Contact: |
Media – |
|
|
Aidan Gormley, Director, Global Communications and Branding |
216/896-3258 |
|
aidan.gormley@parker.com |
|
|
|
|
|
Financial Analysts – |
|
|
Robin J. Davenport, Vice President, Corporate Finance |
216/896-2265 |
|
rjdavenport@parker.com |
|
|
|
|
Parker Hannifin (NYSE:PH)
Historical Stock Chart
From Aug 2024 to Sep 2024
Parker Hannifin (NYSE:PH)
Historical Stock Chart
From Sep 2023 to Sep 2024