Highlights:
* Second quarter record net income of$447.3 million , EPS at$3.41 as reported, or$3.44 adjusted
* Second quarter record total segment operating margin of 17.4% as reported, or 20.4% adjusted
* Second quarter EBITDA margin was 23.1% as reported, or 20.8% adjusted
* Cash flow from operations was a Q2 YTD record at$1.35 billion , or 20.4% of sales
* Cumulative debt reduction reaches approximately$2.8 billion in the last 14 months
* Company increases fiscal 2021 EPS guidance midpoint to$12.15 as reported, or$13.90 adjusted
'Parker team members continue to deliver outstanding results including many records in a challenging environment,' said Chairman and Chief Executive Officer,
During the quarter, the company made debt repayments of
Segment Results
Diversified Industrial Segment: North American second quarter sales decreased 3% to
Aerospace Systems Segment: Second quarter sales decreased 20% to
Parker reported the following orders for the quarter ending
Orders were flat for total Parker
Orders increased 1% in the
Orders increased 10% in the
Orders decreased 18% in the Aerospace Systems Segment on a rolling 12-month average basis
Outlook
For the fiscal year ending
Williams added, 'Our performance in the first half of this year has exceeded our expectations, and as a result, we are increasing our full year guidance for fiscal 2021. While the outlook for key end markets continues to be uncertain in the current environment, we remain committed to driving improvements through the execution of the Win Strategy and making continued progress toward our long-term financial goals.'
NOTICE OF CONFERENCE CALL: Parker Hannifin's conference call and slide presentation to discuss its fiscal 2021 second 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; (c) EBITDA margin; and (d) 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
MEDIA CONTACTS
Corporate Contact
Director,
216 896 3258
aidan.gormley@parker.com
Financial Analysts
Vice President, Corporate Finance
216 896 2265
rjdavenport@parker.com
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