Summary
Parker-Hannifin Corporation (PH) reported a strong fiscal second quarter ending September 30, 2021, with significant year-over-year growth in net sales and net income. Net sales surged by 16.5% to $3.76 billion, driven by robust performance in both the Diversified Industrial and Aerospace Systems segments, reflecting increased demand across various markets. Profitability also saw a substantial improvement, with net income attributable to common shareholders jumping 41.1% to $451.2 million. This growth was supported by higher sales volumes, improved gross profit margins due to efficiency initiatives and pricing actions, and a favorable effective tax rate. The company continues to navigate supply chain challenges while focusing on strategic growth, including the significant proposed acquisition of Meggitt plc, for which financing arrangements are progressing.
Financial Highlights
55 data points| Revenue | $3.76B |
| Cost of Revenue | $2.50B |
| Gross Profit | $1.26B |
| SG&A Expenses | $626.75M |
| Operating Income | $694.06M |
| Interest Expense | $59.35M |
| Net Income | $451.16M |
| EPS (Basic) | $3.50 |
| EPS (Diluted) | $3.45 |
| Shares Outstanding (Basic) | 128.73M |
| Shares Outstanding (Diluted) | 130.83M |
Key Highlights
- 1Net sales increased by 16.5% to $3.76 billion compared to the prior year quarter, driven by strong volume in both Diversified Industrial and Aerospace Systems segments.
- 2Net income attributable to common shareholders rose significantly by 41.1% to $451.2 million ($3.45 diluted EPS), demonstrating improved profitability.
- 3Gross profit margin improved to 27.9% from 26.1% year-over-year, benefiting from higher volumes, continuous improvement initiatives, and price increases, partially offset by rising costs.
- 4The company is actively progressing with the proposed acquisition of Meggitt plc, having secured significant financing through a Bridge Credit Agreement and a Term Loan Facility, and entered into deal-contingent forward contracts.
- 5Diversified Industrial segment sales grew by 19.3% overall, with North America up 17.4% and International up 21.9%, indicating broad market demand.
- 6Aerospace Systems segment sales increased by 3.4% year-over-year, showing signs of recovery and growth in commercial OEM and aftermarket businesses.
- 7Cash flow from operations was $424.4 million, a decrease from the prior year, primarily due to increased working capital requirements, though the company maintains a strong liquidity position.