Highlights:
* First quarter EPS were
* First quarter total segment operating margin was 16.8% as reported, or 19.9% adjusted
* First quarter EBITDA margin was 19.5% as reported, or 20.1% adjusted
* Cash flow from operations was a first quarter record at
* Acquisition-related debt reduction of approximately
* Company increases fiscal 2021 full year guidance
CLEVELAND-
'Thanks to the dedication of our global team executing The Win Strategy, Parker continues to deliver excellent results in the midst of the ongoing challenging market conditions,' said Chairman and Chief Executive Officer,
Segment Results
Diversified Industrial Segment: North American first quarter sales decreased 6% to
Aerospace Systems Segment: First quarter sales decreased 9% to
Parker reported the following orders for the quarter ending
Orders decreased 12% for total Parker
Orders decreased 11% in the
Orders decreased 4% in the
Orders decreased 25% in the Aerospace Systems Segment on a rolling 12-month average basis
Outlook
For the fiscal year ending
Williams added, 'Given our strong first quarter performance, we are updating our previously issued guidance but remain cautious about performance trends for the remainder of this fiscal year. While there are indicators that the worst of the economic downturn is behind us, the COVID-19 pandemic is likely to continue to create headwinds in the global environment. We are confident in our ability to perform in FY21 and in the future, driven by the Win Strategy 3.0 as our business system.'
NOTICE OF CONFERENCE CALL: Parker Hannifin's conference call and slide presentation to discuss its fiscal 2021 first quarter results are available to all interested parties via live webcast today at
About Parker Hannifin
Parker Hannifin is a Fortune 250 global leader in motion and control technologies. For more than a century the company has been enabling engineering breakthroughs that lead to a better tomorrow. Parker has increased its annual dividend per share paid to shareholders for 64 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 Orders
Orders 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
Note on Net Income
Net income referenced in this press release is equal to net income attributable to common shareholders.
Note on Non-GAAP Financial Measures
This press release contains references to non-GAAP financial information including (a) adjusted earnings per share; (b) adjusted total segment operating margin; EBITDA margin; and adjusted EBITDA margin. The adjusted earnings per share and total segment operating margin measures are presented to allow investors and the company to meaningfully evaluate changes in earnings per share and total segment operating margin on a comparable basis from period to period. This press release also contains references to EBITDA, EBITDA margin and adjusted EBITDA margin. EBITDA is defined as earnings before interest, taxes, depreciation and amortization. Although EBITDA, EBITDA margin and adjusted EBITDA margin are not measures of performance calculated in accordance with GAAP, we believe that they are useful to an investor in evaluating the results of this quarter versus the prior period. A reconciliation of non-GAAP measures is included in the financial tables of this press release.
Forward-Looking Statements
Forward-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,' '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. Parker cautions readers not to place undue reliance on these statements. 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. Additionally, the actual impact of changes in tax laws in
Among other factors which may affect future performance are: the impact of the global outbreak of COVID-19 and governmental and other actions taken in response; 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
FY2021 1st Quarter Financial Tables: Available for download at: https://prker.co/3n5NZb7
MEDIA CONTACTS
Director,
216 896 3258
aidan.gormley@parker.com
Vice President, Corporate Finance
216 896 2265
rjdavenport@parker.com
Director,
216 896 3258
aidan.gormley@parker.com
Vice President, Corporate Finance
216 896 2265
rjdavenport@parker.com
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