Summary
Parker-Hannifin Corporation, a global leader in motion and control technologies, presents its 2021 10-K filing, detailing a year marked by recovery and strategic growth initiatives. The company demonstrated resilience, with net sales increasing to $14.3 billion, driven by strong performance in its Diversified Industrial Segment, which constitutes 83% of total sales, and a notable recovery in the Aerospace Systems Segment. Despite ongoing economic uncertainties and the lingering effects of the COVID-19 pandemic, Parker-Hannifin achieved a 9.1% increase in its Diversified Industrial Segment net sales, benefiting from both organic growth and strategic acquisitions, alongside favorable currency impacts. The company's financial health remained robust, supported by strong cash flow from operations and a manageable debt profile. Looking ahead, Parker-Hannifin is strategically positioned for future growth, underscored by its pending acquisition of Meggitt plc, which is expected to significantly enhance its Aerospace Systems Segment. The company's commitment to its 'Win Strategy 3.0,' focused on engaged people, customer experience, profitable growth, and financial performance, continues to guide its operations. Investors can find comfort in the company's consistent dividend payments and a strong commitment to operational efficiency and innovation across its diverse markets.
Financial Highlights
56 data points| Revenue | $14.35B |
| Cost of Revenue | $9.60B |
| Gross Profit | $4.74B |
| R&D Expenses | $205.00M |
| SG&A Expenses | $2.38B |
| Operating Income | $2.46B |
| Interest Expense | $250.04M |
| Net Income | $1.75B |
| EPS (Basic) | $13.54 |
| EPS (Diluted) | $13.35 |
| Shares Outstanding (Basic) | 129.00M |
| Shares Outstanding (Diluted) | 130.83M |
Key Highlights
- 1Net sales for fiscal year 2021 reached $14.3 billion, an increase driven by both the Diversified Industrial Segment and recovery in the Aerospace Systems Segment.
- 2The Diversified Industrial Segment showed strong performance, with net sales up 9.1%, benefiting from acquisitions and favorable currency exchange rates, particularly in international markets.
- 3The Aerospace Systems Segment saw a decrease in sales primarily due to COVID-19 impacts on commercial markets, but was partially offset by higher military demand and prior-year acquisitions.
- 4The company announced a significant strategic move with the agreement to acquire Meggitt plc for approximately £6,308 million, aiming to enhance its Aerospace Systems Segment.
- 5Backlog increased to $6.5 billion at June 30, 2021, indicating strong forward demand, with 84% scheduled for delivery within the next twelve months.
- 6Parker-Hannifin maintained a strong financial position with a working capital of $2.5 billion and a current ratio of 1.8, demonstrating healthy liquidity.
- 7The company continued its commitment to shareholder returns, with 284 consecutive quarters of dividend payments and a consistent annual dividend increase for 65 years.