- Sales increased 3% to $4.8 billion; organic sales increased 3%
- Segment operating margin was 21.1%, or a record 24.5% adjusted, an increase of 300 basis points
- EPS were $5.23, or a record $6.15 adjusted, an increase of 29%
- Company increases outlook for segment operating margin and EPS
CLEVELAND, Feb. 01, 2024 (GLOBE NEWSWIRE) — Parker Hannifin Corporation (NYSE: PH), the global leader in motion and control technologies, today reported results for the fiscal 2024 second quarter ended December 31, 2023. Sales were a record at $4.8 billion, an increase of 3%, compared with $4.7 billion in the second quarter of fiscal 2023. Net income was $681.9 million compared with $395.2 million in the prior year quarter. Adjusted net income was $802.4 million, an increase of 30% compared with $618.9 million in the second quarter of fiscal 2023. Earnings per share were $5.23 compared with $3.04 in the prior year quarter. Adjusted earnings per share increased 29% to $6.15 compared with $4.76 in the second quarter of fiscal 2023. Fiscal 2024 year-to-date cash flow from operations increased 26% to $1.4 billion, or 14.0% of sales, compared with $1.1 billion, or 12.1% of sales, in the prior year. A reconciliation of non-GAAP measures is included in the financial tables of this press release.
“We continue to produce exceptional results that reflect the strength of our portfolio and our ability to execute at a high level, underpinned by our business system, The Win Strategy™,” said Chairman and Chief Executive Officer, Jenny Parmentier. “Our adjusted operating margin increased by 300 basis points year-over-year, as we saw meaningful margin improvement in every segment. Strong aerospace and defense results, including synergies from the Meggitt acquisition, were a key driver of performance in the quarter. We continued to generate strong cash flow and direct it towards reducing debt. Our results are a testament to the dedication and persistence of our global teams.”
Segment Results
Diversified Industrial Segment: North American second quarter sales decreased 1% to $2.1 billion and operating income was $461.9 million compared with $419.9 million in the same period a year ago. On an adjusted basis, North American operating income was $510.4 million, or 24.2% of sales, a 240 basis point increase compared with the second quarter of fiscal 2023. International second quarter sales were flat at $1.4 billion and operating income was $290.5 million compared with $285.5 million in the same period a year ago. On an adjusted basis, International operating income was $323.4 million, or 23.0% of sales, a 110 basis point increase compared with the prior year quarter.
Aerospace Systems Segment: Second quarter sales increased 15% to $1.3 billion and operating income was $263.1 million compared with $8.8 million in the same period a year ago. On an adjusted basis, operating income was $346.9 million, or 26.5% of sales, a 590 basis point increase compared with the prior year quarter.
Orders
The company reported the following orders for the quarter ending December 31, 2023, compared with the same quarter a year ago:
- Orders increased 2% for total Parker
- Orders decreased 4% in the Diversified Industrial North America businesses
- Orders decreased 5% in the Diversified Industrial International businesses
- Orders increased 21% in the Aerospace Systems Segment on a rolling 12-month average basis.
Outlook
Parker’s outlook for the fiscal year ending June 30, 2024 has been updated. The company expects total sales growth in fiscal 2024 to be in the range of 3% to 5%; total segment operating margin in the range of 20.7% to 21.1%, or 24.1% to 24.5% on an adjusted basis; and earnings per share in the range of $20.00 to $20.60, or $23.90 to $24.50 on an adjusted basis. Reconciliations of forecasted segment operating margin to adjusted forecasted segment operating margin and forecasted earnings per share to adjusted forecasted earnings per share are included in the financial tables of this press release.
Parmentier added, “We are increasing our outlook for fiscal 2024 and expect another year of record performance. We will continue to stay focused on executing the Win Strategy and leveraging the growth in aerospace markets. Our future looks very bright supported by favorable secular growth trends and further opportunities to improve our customer experience.”
NOTICE OF WEBCAST: Parker Hannifin’s webcast to discuss its fiscal 2024 second quarter results is available to all interested parties via live webcast today at 11:00 a.m. ET, at www.phstock.com. A replay of the webcast will be available on the site 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 please visit www.phstock.com.
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 67 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. Beginning in the third quarter of fiscal 2023, all comparisons include acquisitions in both the numerator and denominator and exclude divestitures. Diversified Industrial comparisons are on 3-month average computations and Aerospace Systems comparisons are on rolling 12-month average computations.
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 net income; (b) adjusted earnings per share; (c) adjusted segment operating margins; (d) adjusted segment operating income; and (e) organic sales growth. The adjusted net income, earnings per share, segment operating margin, segment operating income and organic sales measures are presented to allow investors and the company to meaningfully evaluate changes in net income, earnings per share and segment operating margins on a comparable basis from period to period. Comparable descriptions of record adjusted results in this release refer only to the period from the first quarter of FY2011 to the periods presented in this release. This period coincides with recast historical financial results provided in association with our FY2014 change in segment reporting. 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. Often but not always, these statements may be identified from the use of forward-looking terminology such as “anticipates,” “believes,” “may,” “should,” “could,” “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. Neither Parker nor any of its respective associates or directors, officers or advisers, provides any representation, assurance or guarantee that the occurrence of the events expressed or implied in any forward-looking statements will actually occur. 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 past performance or current expectations.
Among other factors which may affect future performance are: 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 Meggitt PLC; 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 business and operating initiatives, including the timing, price and execution of share repurchases and other capital initiatives; availability, cost increases of or other limitations on our access to raw materials, component products and/or commodities if associated costs cannot be recovered in product pricing; ability to manage costs related to insurance and employee retirement and health care benefits; legal and regulatory developments and changes; compliance costs associated with environmental laws and regulations; potential supply chain and labor disruptions, including as a result of labor shortages; threats associated with international conflicts and efforts to combat terrorism and cyber security risks; uncertainties surrounding the ultimate resolution of outstanding legal proceedings, including the outcome of any appeals; local and global political and competitive market conditions, including global reactions to U.S. trade policies, and resulting effects on sales and pricing; 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 (including fluctuations associated with any potential credit rating decline) and credit availability; inability to obtain, or meet conditions imposed for, required governmental and regulatory approvals; changes in consumer habits and preferences; government actions, including the impact of changes in the tax laws in the United States and foreign jurisdictions and any judicial or regulatory interpretation thereof; large scale disasters, such as floods, earthquakes, hurricanes, industrial accidents and pandemics. Readers should consider these forward-looking statements in light of risk factors discussed in Parker’s Annual Report on Form 10-K for the fiscal year ended June 30, 2023 and other periodic filings made with the SEC.
| PARKER HANNIFIN CORPORATION – DECEMBER 31, 2023 | ||||||||||||||||
| CONSOLIDATED STATEMENT OF INCOME | ||||||||||||||||
| (Unaudited) | Three Months Ended December 31, | Six Months Ended December 31, | ||||||||||||||
| (Dollars in thousands, except per share amounts) | 2023 | 2022 | 2023 | 2022 | ||||||||||||
| Net sales | $ | 4,820,947 | $ | 4,674,811 | $ | 9,668,435 | $ | 8,907,586 | ||||||||
| Cost of sales | 3,101,962 | 3,236,812 | 6,199,311 | 6,032,268 | ||||||||||||
| Selling, general and administrative expenses | 806,802 | 814,966 | 1,680,493 | 1,650,770 | ||||||||||||
| Interest expense | 129,029 | 146,931 | 263,497 | 264,725 | ||||||||||||
| Other income, net | (85,011 | ) | (40,641 | ) | (163,466 | ) | (60,265 | ) | ||||||||
| Income before income taxes | 868,165 | 516,743 | 1,688,600 | 1,020,088 | ||||||||||||
| Income taxes | 186,108 | 121,282 | 355,471 | 236,590 | ||||||||||||
| Net income | 682,057 | 395,461 | 1,333,129 | 783,498 | ||||||||||||
| Less: Noncontrolling interests | 206 | 224 | 451 | 407 | ||||||||||||
| Net income attributable to common shareholders | $ | 681,851 | $ | 395,237 | $ | 1,332,678 | $ | 783,091 | ||||||||
| Earnings per share attributable to common shareholders: | ||||||||||||||||
| Basic earnings per share | $ | 5.31 | $ | 3.08 | $ | 10.38 | $ | 6.10 | ||||||||
| Diluted earnings per share | $ | 5.23 | $ | 3.04 | $ | 10.23 | $ | 6.03 | ||||||||
| Average shares outstanding during period – Basic | 128,426,247 | 128,313,322 | 128,449,398 | 128,369,162 | ||||||||||||
| Average shares outstanding during period – Diluted | 130,367,351 | 130,045,013 | 130,314,326 | 129,961,696 | ||||||||||||
| CASH DIVIDENDS PER COMMON SHARE | ||||||||||||||||
| (Unaudited) | Three Months Ended December 31, | Six Months Ended December 31, | ||||||||||||||
| (Amounts in dollars) | 2023 | 2022 | 2023 | 2022 | ||||||||||||
| Cash dividends per common share | $ | 1.48 | $ | 1.33 | $ | 2.96 | $ | 2.66 | ||||||||
| RECONCILIATION OF ORGANIC GROWTH | ||||||||||||
| (Unaudited) | Three Months Ended December 31, | Six Months Ended December 31, | ||||||||||
| 2023 | 2022 | 2023 | 2022 | |||||||||
| Sales growth – as reported | 3.1 | % | 22.2 | % | 8.5 | % | 17.4 | % | ||||
| Adjustments: | ||||||||||||
| Acquisitions | — | % | 16.5 | % | 5.6 | % | 10.2 | % | ||||
| Divestitures | (0.3)% | (0.5)% | (0.4)% | (0.3)% | ||||||||
| Currency | 0.5 | % | (4.1)% | 0.7 | % | (4.7)% | ||||||
| Organic sales growth | 2.9 | % | 10.3 | % | 2.6 | % | 12.2 | % | ||||
| PARKER HANNIFIN CORPORATION – DECEMBER 31, 2023 | ||||||||||||||||
| RECONCILIATION OF NET INCOME ATTRIBUTABLE TO COMMON SHAREHOLDERS TO ADJUSTED NET INCOME ATTRIBUTABLE TO COMMON SHAREHOLDERS | ||||||||||||||||
| (Unaudited) | Three Months Ended December 31, | Six Months Ended December 31, | ||||||||||||||
| (Dollars in thousands) | 2023 | 2022 | 2023 | 2022 | ||||||||||||
| Net income attributable to common shareholders | $ | 681,851 | $ | 395,237 | $ | 1,332,678 | $ | 783,091 | ||||||||
| Adjustments: | ||||||||||||||||
| Acquired intangible asset amortization expense | 142,027 | 142,256 | 297,547 | 229,270 | ||||||||||||
| Business realignment charges | 14,354 | 5,378 | 27,446 | 9,239 | ||||||||||||
| Integration costs to achieve | 10,014 | 33,418 | 16,420 | 45,409 | ||||||||||||
| Acquisition-related expenses | — | 1,983 | — | 162,241 | ||||||||||||
| Loss on deal-contingent forward contracts | — | — | — | 389,992 | ||||||||||||
| Net gain on divestitures | (12,391 | ) | — | (25,651 | ) | (372,930 | ) | |||||||||
| Amortization of inventory step-up to fair value | — | 111,973 | — | 130,331 | ||||||||||||
| Tax effect of adjustments1 | (33,476 | ) | (71,391 | ) | (69,624 | ) | (142,246 | ) | ||||||||
| Adjusted net income attributable to common shareholders | $ | 802,379 | $ | 618,854 | $ | 1,578,816 | $ | 1,234,397 | ||||||||
| RECONCILIATION OF EARNINGS PER DILUTED SHARE TO ADJUSTED EARNINGS PER DILUTED SHARE | ||||||||||||||||
| (Unaudited) | Three Months Ended December 31, | Six Months Ended December 31, | ||||||||||||||
| (Amounts in dollars) | 2023 | 2022 | 2023 | 2022 | ||||||||||||
| Earnings per diluted share | $ | 5.23 | $ | 3.04 | $ | 10.23 | $ | 6.03 | ||||||||
| Adjustments: | ||||||||||||||||
| Acquired intangible asset amortization expense | 1.09 | 1.09 | 2.28 | 1.76 | ||||||||||||
| Business realignment charges | 0.11 | 0.04 | 0.21 | 0.07 | ||||||||||||
| Integration costs to achieve | 0.08 | 0.26 | 0.13 | 0.35 | ||||||||||||
| Acquisition-related expenses | — | 0.02 | — | 1.26 | ||||||||||||
| Loss on deal-contingent forward contracts | — | — | — | 3.00 | ||||||||||||
| Net gain on divestitures | (0.10 | ) | — | (0.20 | ) | (2.87 | ) | |||||||||
| Amortization of inventory step-up to fair value | — | 0.86 | — | 1.00 | ||||||||||||
| Tax effect of adjustments1 | (0.26 | ) | (0.55 | ) | (0.53 | ) | (1.09 | ) | ||||||||
| Adjusted earnings per diluted share | $ | 6.15 | $ | 4.76 | $ | 12.12 | $ | 9.51 | ||||||||
| 1This line item reflects the aggregate tax effect of all non-tax adjustments reflected in the preceding line items of the table. We estimate the tax effect of each adjustment item by applying our overall effective tax rate for continuing operations to the pre-tax amount, unless the nature of the item and/or the tax jurisdiction in which the item has been recorded requires application of a specific tax rate or tax treatment, in which case the tax effect of such item is estimated by applying such specific tax rate or tax treatment. | ||||||||||||||||
| PARKER HANNIFIN CORPORATION – DECEMBER 31, 2023 | ||||||||||||||
| BUSINESS SEGMENT INFORMATION | ||||||||||||||
| (Unaudited) | Three Months Ended December 31, | Six Months Ended December 31, | ||||||||||||
| (Dollars in thousands) | 2023 | 2022 | 2023 | 2022 | ||||||||||
| Net sales | ||||||||||||||
| Diversified Industrial: | ||||||||||||||
| North America | $ | 2,110,203 | $ | 2,140,685 | $ | 4,340,109 | $ | 4,272,445 | ||||||
| International | 1,404,270 | 1,397,699 | 2,792,892 | 2,752,712 | ||||||||||
| Aerospace Systems | 1,306,474 | 1,136,427 | 2,535,434 | 1,882,429 | ||||||||||
| Total net sales | $ | 4,820,947 | $ | 4,674,811 | $ | 9,668,435 | $ | 8,907,586 | ||||||
| Segment operating income | ||||||||||||||
| Diversified Industrial: | ||||||||||||||
| North America | $ | 461,850 | $ | 419,921 | $ | 967,903 | $ | 872,907 | ||||||
| International | 290,484 | 285,520 | 591,185 | 579,460 | ||||||||||
| Aerospace Systems | 263,112 | 8,793 | 489,372 | 100,944 | ||||||||||
| Total segment operating income | 1,015,446 | 714,234 | 2,048,460 | 1,553,311 | ||||||||||
| Corporate general and administrative expenses | 49,902 | 48,901 | 105,558 | 100,561 | ||||||||||
| Income before interest expense and other expense | 965,544 | 665,333 | 1,942,902 | 1,452,750 | ||||||||||
| Interest expense | 129,029 | 146,931 | 263,497 | 264,725 | ||||||||||
| Other (income) expense, net | (31,650 | ) | 1,659 | (9,195 | ) | 167,937 | ||||||||
| Income before income taxes | $ | 868,165 | $ | 516,743 | $ | 1,688,600 | $ | 1,020,088 | ||||||
| RECONCILIATION OF SEGMENT OPERATING MARGINS TO ADJUSTED SEGMENT OPERATING MARGINS | ||||||||||||||||
| (Unaudited) | Three Months Ended December 31, | Six Months Ended December 31, | ||||||||||||||
| (Dollars in thousands) | 2023 | 2022 | 2023 | 2022 | ||||||||||||
| Diversified Industrial North America sales | $ | 2,110,203 | $ | 2,140,685 | $ | 4,340,109 | $ | 4,272,445 | ||||||||
| Diversified Industrial North America operating income | $ | 461,850 | $ | 419,921 | $ | 967,903 | $ | 872,907 | ||||||||
| Adjustments: | ||||||||||||||||
| Acquired intangible asset amortization | 44,699 | 44,358 | 89,382 | 90,632 | ||||||||||||
| Business realignment charges | 3,250 | 1,338 | 5,834 | 1,471 | ||||||||||||
| Integration costs to achieve | 562 | 1,270 | 1,507 | 1,317 | ||||||||||||
| Adjusted Diversified Industrial North America operating income | $ | 510,361 | $ | 466,887 | $ | 1,064,626 | $ | 966,327 | ||||||||
| Diversified Industrial North America operating margin | 21.9 | % | 19.6 | % | 22.3 | % | 20.4 | % | ||||||||
| Adjusted Diversified Industrial North America operating margin | 24.2 | % | 21.8 | % | 24.5 | % | 22.6 | % | ||||||||
| PARKER HANNIFIN CORPORATION – DECEMBER 31, 2023 | ||||||||||||||||
| RECONCILIATION OF SEGMENT OPERATING MARGINS TO ADJUSTED SEGMENT OPERATING MARGINS | ||||||||||||||||
| (Unaudited) | Three Months Ended December 31, | Six Months Ended December 31, | ||||||||||||||
| (Dollars in thousands) | 2023 | 2022 | 2023 | 2022 | ||||||||||||
| Diversified Industrial International sales | $ | 1,404,270 | $ | 1,397,699 | $ | 2,792,892 | $ | 2,752,712 | ||||||||
| Diversified Industrial International operating income | $ | 290,484 | $ | 285,520 | $ | 591,185 | $ | 579,460 | ||||||||
| Adjustments: | ||||||||||||||||
| Acquired intangible asset amortization | 22,610 | 16,819 | 45,878 | 33,624 | ||||||||||||
| Business realignment charges | 10,035 | 3,039 | 20,090 | 4,918 | ||||||||||||
| Integration costs to achieve | 309 | 425 | 503 | 564 | ||||||||||||
| Adjusted Diversified Industrial International operating income | $ | 323,438 | $ | 305,803 | $ | 657,656 | $ | 618,566 | ||||||||
| Diversified Industrial International operating margin | 20.7 | % | 20.4 | % | 21.2 | % | 21.1 | % | ||||||||
| Adjusted Diversified Industrial International operating margin | 23.0 | % | 21.9 | % | 23.5 | % | 22.5 | % | ||||||||
| (Unaudited) | Three Months Ended December 31, | Six Months Ended December 31, | ||||||||||||||
| (Dollars in thousands) | 2023 | 2022 | 2023 | 2022 | ||||||||||||
| Aerospace Systems sales | $ | 1,306,474 | $ | 1,136,427 | $ | 2,535,434 | $ | 1,882,429 | ||||||||
| Aerospace Systems operating income | $ | 263,112 | $ | 8,793 | $ | 489,372 | $ | 100,944 | ||||||||
| Adjustments: | ||||||||||||||||
| Acquired intangible asset amortization | 74,718 | 81,079 | 162,287 | 105,014 | ||||||||||||
| Business realignment charges | (123 | ) | 1,001 | 330 | 2,850 | |||||||||||
| Integration costs to achieve | 9,143 | 31,723 | 14,410 | 43,528 | ||||||||||||
| Amortization of inventory step-up to fair value | — | 111,973 | — | 130,331 | ||||||||||||
| Adjusted Aerospace Systems operating income | $ | 346,850 | $ | 234,569 | $ | 666,399 | $ | 382,667 | ||||||||
| Aerospace Systems operating margin | 20.1 | % | 0.8 | % | 19.3 | % | 5.4 | % | ||||||||
| Adjusted Aerospace Systems operating margin | 26.5 | % | 20.6 | % | 26.3 | % | 20.3 | % | ||||||||
| (Unaudited) | Three Months Ended December 31, | Six Months Ended December 31, | ||||||||||||||
| (Dollars in thousands) | 2023 | 2022 | 2023 | 2022 | ||||||||||||
| Total net sales | $ | 4,820,947 | $ | 4,674,811 | $ | 9,668,435 | $ | 8,907,586 | ||||||||
| Total segment operating income | $ | 1,015,446 | $ | 714,234 | $ | 2,048,460 | $ | 1,553,311 | ||||||||
| Adjustments: | ||||||||||||||||
| Acquired intangible asset amortization | 142,027 | 142,256 | 297,547 | 229,270 | ||||||||||||
| Business realignment charges | 13,162 | 5,378 | 26,254 | 9,239 | ||||||||||||
| Integration costs to achieve | 10,014 | 33,418 | 16,420 | 45,409 | ||||||||||||
| Amortization of inventory step-up to fair value | — | 111,973 | — | 130,331 | ||||||||||||
| Adjusted total segment operating income | $ | 1,180,649 | $ | 1,007,259 | $ | 2,388,681 | $ | 1,967,560 | ||||||||
| Total segment operating margin | 21.1 | % | 15.3 | % | 21.2 | % | 17.4 | % | ||||||||
| Adjusted total segment operating margin | 24.5 | % | 21.5 | % | 24.7 | % | 22.1 | % | ||||||||
| PARKER HANNIFIN CORPORATION – DECEMBER 31, 2023 | |||||||||
| CONSOLIDATED BALANCE SHEET | |||||||||
| (Unaudited) | December 31, | June 30, | December 31, | ||||||
| (Dollars in thousands) | 2023 | 2023 | 2022 | ||||||
| Assets | |||||||||
| Current assets: | |||||||||
| Cash and cash equivalents | $ | 382,815 | $ | 475,182 | $ | 756,055 | |||
| Marketable securities and other investments | 11,053 | 8,390 | 21,611 | ||||||
| Trade accounts receivable, net | 2,611,404 | 2,827,297 | 2,578,045 | ||||||
| Non-trade and notes receivable | 321,680 | 309,167 | 371,474 | ||||||
| Inventories | 3,092,923 | 2,907,879 | 3,095,722 | ||||||
| Prepaid expenses and other | 309,985 | 306,314 | 462,093 | ||||||
| Total current assets | 6,729,860 | 6,834,229 | 7,285,000 | ||||||
| Property, plant and equipment, net | 2,905,744 | 2,865,030 | 2,839,524 | ||||||
| Deferred income taxes | 77,256 | 81,429 | 133,348 | ||||||
| Investments and other assets | 1,156,710 | 1,104,576 | 1,206,194 | ||||||
| Intangible assets, net | 8,153,468 | 8,450,614 | 8,387,917 | ||||||
| Goodwill | 10,671,897 | 10,628,594 | 10,668,904 | ||||||
| Total assets | $ | 29,694,935 | $ | 29,964,472 | $ | 30,520,887 | |||
| Liabilities and equity | |||||||||
| Current liabilities: | |||||||||
| Notes payable and long-term debt payable within one year | $ | 3,681,167 | $ | 3,763,175 | $ | 1,994,333 | |||
| Accounts payable, trade | 1,971,943 | 2,050,934 | 1,966,757 | ||||||
| Accrued payrolls and other compensation | 472,243 | 651,319 | 453,037 | ||||||
| Accrued domestic and foreign taxes | 302,113 | 374,571 | 236,227 | ||||||
| Other accrued liabilities | 1,069,607 | 895,371 | 1,053,049 | ||||||
| Total current liabilities | 7,497,073 | 7,735,370 | 5,703,403 | ||||||
| Long-term debt | 8,108,696 | 8,796,284 | 12,025,860 | ||||||
| Pensions and other postretirement benefits | 482,752 | 551,510 | 807,124 | ||||||
| Deferred income taxes | 1,579,197 | 1,649,674 | 1,751,321 | ||||||
| Other liabilities | 714,838 | 893,355 | 898,703 | ||||||
| Shareholders’ equity | 11,302,578 | 10,326,888 | 9,322,380 | ||||||
| Noncontrolling interests | 9,801 | 11,391 | 12,096 | ||||||
| Total liabilities and equity | $ | 29,694,935 | $ | 29,964,472 | $ | 30,520,887 | |||
| PARKER HANNIFIN CORPORATION – DECEMBER 31, 2023 | ||||||||
| CONSOLIDATED STATEMENT OF CASH FLOWS | ||||||||
| (Unaudited) | Six Months Ended December 31, | |||||||
| (Dollars in thousands) | 2023 | 2022 | ||||||
| Cash flows from operating activities: | ||||||||
| Net income | $ | 1,333,129 | $ | 783,498 | ||||
| Depreciation and amortization | 468,165 | 383,725 | ||||||
| Stock incentive plan compensation | 108,061 | 89,709 | ||||||
| Gain on sale of businesses | (25,964 | ) | (377,251 | ) | ||||
| Loss (gain) on disposal of property, plant and equipment | 5,097 | (2,551 | ) | |||||
| Gain on marketable securities | (96 | ) | (1,354 | ) | ||||
| Gain on investments | (1,384 | ) | (2,929 | ) | ||||
| Net change in receivables, inventories and trade payables | (42,804 | ) | 112,216 | |||||
| Net change in other assets and liabilities | (407,366 | ) | (112,066 | ) | ||||
| Other, net | (84,851 | ) | 203,137 | |||||
| Net cash provided by operating activities | 1,351,987 | 1,076,134 | ||||||
| Cash flows from investing activities: | ||||||||
| Acquisitions (net of cash of $89,704 in 2022) | — | (7,146,110 | ) | |||||
| Capital expenditures | (204,117 | ) | (185,704 | ) | ||||
| Proceeds from sale of property, plant and equipment | 1,360 | 11,632 | ||||||
| Proceeds from sale of businesses | 74,595 | 447,300 | ||||||
| Purchases of marketable securities and other investments | (9,396 | ) | (25,198 | ) | ||||
| Maturities and sales of marketable securities and other investments | 6,880 | 30,594 | ||||||
| Payments of deal-contingent forward contracts | — | (1,405,418 | ) | |||||
| Other | (438 | ) | 251,174 | |||||
| Net cash used in investing activities | (131,116 | ) | (8,021,730 | ) | ||||
| Cash flows from financing activities: | ||||||||
| Net payments for common stock activity | (136,394 | ) | (119,944 | ) | ||||
| Acquisition of noncontrolling interests | (2,883 | ) | — | |||||
| Net (payments for) proceeds from debt | (784,847 | ) | 1,536,211 | |||||
| Financing fees paid | — | (8,911 | ) | |||||
| Dividends paid | (381,115 | ) | (342,360 | ) | ||||
| Net cash (used in) provided by financing activities | (1,305,239 | ) | 1,064,996 | |||||
| Effect of exchange rate changes on cash | (7,999 | ) | (11,221 | ) | ||||
| Net decrease in cash, cash equivalents and restricted cash | (92,367 | ) | (5,891,821 | ) | ||||
| Cash, cash equivalents and restricted cash at beginning of year | 475,182 | 6,647,876 | ||||||
| Cash and cash equivalents at end of period | $ | 382,815 | $ | 756,055 | ||||
| PARKER HANNIFIN CORPORATION – DECEMBER 31, 2023 | |||
| RECONCILIATION OF FORECASTED SEGMENT OPERATING MARGIN TO ADJUSTED FORECASTED SEGMENT OPERATING MARGIN | |||
| (Unaudited) | |||
| (Amounts in percentages) | Fiscal Year 2024 | ||
| Forecasted segment operating margin | 20.7% to 21.1% | ||
| Adjustments: | |||
| Business realignment charges | 0.3% | ||
| Costs to achieve | 0.2% | ||
| Acquisition-related intangible asset amortization expense | 2.9% | ||
| Adjusted forecasted segment operating margin | 24.1% to 24.5% | ||
| RECONCILIATION OF FORECASTED EARNINGS PER DILUTED SHARE TO ADJUSTED FORECASTED EARNINGS PER DILUTED SHARE | |||
| (Unaudited) | |||
| (Amounts in dollars) | Fiscal Year 2024 | ||
| Forecasted earnings per diluted share | $20.00 to $20.60 | ||
| Adjustments: | |||
| Business realignment charges | 0.54 | ||
| Costs to achieve | 0.27 | ||
| Acquisition-related intangible asset amortization expense | 4.45 | ||
| Net gain on divestitures | (0.20) | ||
| Tax effect of adjustments1 | (1.16) | ||
| Adjusted forecasted earnings per diluted share | $23.90 to $24.50 | ||
| 1This line item reflects the aggregate tax effect of all non-tax adjustments reflected in the preceding line items of the table. We estimate the tax effect of each adjustment item by applying our overall effective tax rate for continuing operations to the pre-tax amount, unless the nature of the item and/or the tax jurisdiction in which the item has been recorded requires application of a specific tax rate or tax treatment, in which case the tax effect of such item is estimated by applying such specific tax rate or tax treatment. | |||
| Contact: | Media – | |
| Aidan Gormley – Director, Global Communications and Branding | 216-896-3258 | |
| [email protected] | ||
| Financial Analysts – | ||
| Jeff Miller – Vice President, Investor Relations | 216-896-2708 | |
| [email protected] | ||
| Stock Symbol: | PH – NYSE |
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