Parker Hannifin Corporation (NYSE: PH), the global leader in motion
and control technologies, today reported results for the fiscal
2020 second quarter ended December 31, 2019. Fiscal 2020
second quarter sales were $3.50 billion, compared with $3.47
billion in the prior year quarter. Net income was $204.5
million, compared with $311.7 million in the second quarter of
fiscal 2019. Fiscal 2020 second quarter earnings per share
were $1.57, compared with $2.36 in the prior year quarter.
Adjusted earnings per share were $2.54, an increase compared with
adjusted earnings per share of $2.51 in the second quarter of
fiscal 2019. Fiscal year-to-date cash flow from operations
was a second quarter record at $826.0 million and reached 12.1% of
sales, compared with 7.8% in the prior year period, or 10.7% when
adjusted for a fiscal 2019 discretionary pension
contribution. A reconciliation of non-GAAP measures is
included in the financial tables of this press release.
“With effective execution of The Win Strategy™, we delivered
strong financial performance in the period," said Chairman and
Chief Executive Officer, Tom Williams. "Despite
macro-economic headwinds, we have maintained strong adjusted total
segment operating margin, adjusted EBITDA margin of 18.5%, solid
earnings and impressive cash flow. Cash flow from operations
reached 12.1% of sales, despite the incumbrance of significant
transaction costs from our two recently closed, transformative
acquisitions. Great progress has been made in integrating
LORD Corporation and Exotic Metals Forming Company, and we remain
on track to realize our previously announced synergies."
Segment ResultsDiversified Industrial
Segment: North American second quarter sales decreased 1% to
$1.6 billion, and operating income was $211.3 million, compared
with $257.8 million in the same period a year ago.
International second quarter sales decreased 6% to $1.1 billion,
and operating income was $153.8 million, compared with $189.1
million in the same period a year ago.
Aerospace Systems Segment: Second quarter sales increased
19% to $735.0 million, and operating income was $121.0 million,
compared with $121.5 million in the same period a year ago.
Parker reported the following orders for the quarter ending
December 31, 2019, compared with the same quarter a year
ago:
- Orders decreased 3% for total Parker
- Orders decreased 7% in the Diversified Industrial North America
businesses
- Orders decreased 6% in the Diversified Industrial International
businesses
- Orders increased 12% in the Aerospace Systems Segment on a
rolling 12-month average basis
OutlookFor the fiscal year ending June 30,
2020, the company has increased guidance for earnings per share to
the range of $8.78 to $9.38, or $10.25 to $10.85 on an adjusted
basis. Fiscal year 2020 guidance is adjusted on a pre-tax
basis for expected business realignment expenses of approximately
$40 million, costs to achieve of approximately $27 million, and
one-time acquisition expenses of approximately $185 million
pertaining to the LORD Corporation and Exotic Metals Forming
Company transactions. Guidance assumes an organic sales
decline in the range of 7.6% to 5.1%. A reconciliation of
forecasted earnings per share to adjusted forecasted earnings per
share is included in the financial tables of this press
release.
Williams added, "The actions we have taken under the Win
Strategy to strengthen our operations have positioned Parker for a
strong second half of fiscal 2020. Thanks to our global team
members for their continued focus and dedication. We are
optimistic about the future and the prospect of reaching our
targeted financial goals for fiscal 2023."
NOTICE OF CONFERENCE CALL: Parker Hannifin's
conference call and slide presentation to discuss its fiscal 2020
second quarter results are 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.
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 63 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 OrdersOrders 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 Diversified Industrial North America and Diversified Industrial
International, and the year-over-year 12-month rolling average of
orders for the Aerospace Systems Segment.
Note on Net IncomeNet income referenced in this
press release is equal to net income attributable to common
shareholders.
Note on Non-GAAP Financial MeasuresThis press
release contains references to non-GAAP financial information
including (a) adjusted earnings per share; (b) adjusted cash flow
from operations; (c) adjusted total segment operating margin;
EBITDA margin; adjusted EBITDA margin; and (d) adjusted forecasted
earnings per share. The adjusted earnings per share, cash flow from
operations and total segment operating margin measures are
presented to allow investors and the company to meaningfully
evaluate changes in earnings per share, cash flows from operations
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 StatementsForward-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,” “anticipates,” “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 the United States and foreign jurisdictions
and any judicial or regulatory interpretations thereof on future
performance and earnings projections may impact the company’s tax
calculations. A change in the economic conditions in individual
markets may have a particularly volatile effect on segment
performance.
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 CLARCOR, LORD Corporation or Exotic
Metals Forming Company; 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 capital allocation initiatives, including
timing, price and execution of share repurchases; availability,
limitations or cost increases of raw materials, component products
and/or commodities that cannot be recovered in product pricing;
ability to manage costs related to insurance and employee
retirement and health care benefits; compliance costs associated
with environmental laws and regulations; potential labor
disruptions; threats associated with and efforts to combat
terrorism and cyber-security risks; uncertainties surrounding the
ultimate resolution of outstanding legal proceedings, including the
outcome of any appeals; global competitive market conditions,
including global reactions to U.S. trade policies, and resulting
effects on sales and pricing; and 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
and credit availability. The company makes these statements as of
the date of this disclosure and undertakes no obligation to update
them unless otherwise required by law.
PARKER
HANNIFIN CORPORATION - DECEMBER 31, 2019 |
|
|
|
|
|
|
|
CONSOLIDATED STATEMENT
OF INCOME |
|
|
|
|
|
|
|
(Unaudited) |
Three Months Ended December 31, |
|
Six Months Ended December 31, |
(Dollars in thousands, except
per share amounts) |
2019 |
|
|
2018 |
|
|
2019 |
|
|
2018 |
|
Net sales |
$ |
3,497,974 |
|
|
$ |
3,472,045 |
|
|
$ |
6,832,485 |
|
|
$ |
6,951,339 |
|
Cost of sales |
2,682,765 |
|
|
2,602,339 |
|
|
5,162,506 |
|
|
5,197,162 |
|
Selling, general and
administrative expenses |
491,121 |
|
|
397,259 |
|
|
890,300 |
|
|
791,581 |
|
Interest expense |
82,891 |
|
|
47,518 |
|
|
152,847 |
|
|
91,857 |
|
Other (income), net |
(13,549 |
) |
|
(6,225 |
) |
|
(61,070 |
) |
|
(20,138 |
) |
Income before income
taxes |
254,746 |
|
|
431,154 |
|
|
687,902 |
|
|
890,877 |
|
Income taxes |
50,148 |
|
|
119,241 |
|
|
144,263 |
|
|
203,065 |
|
Net income |
204,598 |
|
|
311,913 |
|
|
543,639 |
|
|
687,812 |
|
Less: Noncontrolling
interests |
124 |
|
|
176 |
|
|
267 |
|
|
364 |
|
Net income
attributable to common shareholders |
$ |
204,474 |
|
|
$ |
311,737 |
|
|
$ |
543,372 |
|
|
$ |
687,448 |
|
|
|
|
|
|
|
|
|
Earnings per share
attributable to common shareholders: |
|
|
|
|
|
|
|
Basic earnings per share |
$ |
1.59 |
|
|
$ |
2.39 |
|
|
$ |
4.23 |
|
|
$ |
5.23 |
|
Diluted earnings per share |
$ |
1.57 |
|
|
$ |
2.36 |
|
|
$ |
4.17 |
|
|
$ |
5.15 |
|
|
|
|
|
|
|
|
|
Average shares outstanding
during period - Basic |
128,396,933 |
|
|
130,361,273 |
|
|
128,430,463 |
|
|
131,361,464 |
|
Average shares outstanding
during period - Diluted |
130,495,381 |
|
|
132,311,210 |
|
|
130,154,079 |
|
|
133,449,674 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CASH DIVIDENDS PER
COMMON SHARE |
|
|
|
|
|
|
|
(Unaudited) |
Three Months Ended December 31, |
|
Six Months Ended December 31, |
(Amounts in dollars) |
2019 |
|
|
2018 |
|
|
2019 |
|
|
2018 |
|
Cash dividends per
common share |
$ |
0.88 |
|
|
$ |
0.76 |
|
|
$ |
1.76 |
|
|
$ |
1.52 |
|
|
|
|
|
|
|
|
|
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) |
2019 |
|
|
2018 |
|
|
2019 |
|
|
2018 |
|
Earnings per diluted
share |
$ |
1.57 |
|
|
$ |
2.36 |
|
|
$ |
4.17 |
|
|
$ |
5.15 |
|
Adjustments: |
|
|
|
|
|
|
|
Business realignment charges |
0.08 |
|
|
0.02 |
|
|
0.12 |
|
|
0.04 |
|
Clarcor costs to achieve |
— |
|
|
0.04 |
|
|
— |
|
|
0.09 |
|
Lord costs to achieve |
0.05 |
|
|
— |
|
|
0.08 |
|
|
— |
|
Exotic costs to achieve |
— |
|
|
— |
|
|
0.01 |
|
|
— |
|
Acquisition-related expenses |
1.14 |
|
|
— |
|
|
1.28 |
|
|
— |
|
Tax effect of adjustments1 |
(0.30 |
) |
|
(0.02 |
) |
|
(0.36 |
) |
|
(0.04 |
) |
Tax expense related to U.S. Tax Reform |
— |
|
|
0.11 |
|
|
— |
|
|
0.11 |
|
Adjusted earnings per
diluted share |
$ |
2.54 |
|
|
$ |
2.51 |
|
|
$ |
5.30 |
|
|
$ |
5.35 |
|
|
|
|
|
|
|
|
|
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, 2019 |
|
|
|
|
|
|
|
RECONCILIATION OF EBITDA TO ADJUSTED EBITDA |
|
|
|
|
(Unaudited) |
|
Three Months Ended December 31, |
|
Six Months Ended December 31, |
(Dollars in thousands) |
|
2019 |
|
|
2018 |
|
|
2019 |
|
|
2018 |
|
Net sales |
|
$ |
3,497,974 |
|
|
$ |
3,472,045 |
|
|
$ |
6,832,485 |
|
|
$ |
6,951,339 |
|
|
|
|
|
|
|
|
|
|
Net income |
|
$ |
204,598 |
|
|
$ |
311,913 |
|
|
$ |
543,639 |
|
|
$ |
687,812 |
|
Income taxes |
|
50,148 |
|
|
119,241 |
|
|
144,263 |
|
|
203,065 |
|
Depreciation and
amortization |
|
144,229 |
|
|
110,052 |
|
|
253,300 |
|
|
222,543 |
|
Interest expense |
|
82,891 |
|
|
47,518 |
|
|
152,847 |
|
|
91,857 |
|
EBITDA |
|
481,866 |
|
|
588,724 |
|
|
1,094,049 |
|
|
1,205,277 |
|
Adjustments: |
|
|
|
|
|
|
|
|
Business realignment charges |
|
9,836 |
|
|
2,515 |
|
|
14,559 |
|
|
4,918 |
|
Clarcor costs to achieve |
— |
|
|
5,087 |
|
|
— |
|
|
11,297 |
|
Lord costs to achieve |
6,725 |
|
|
— |
|
|
10,139 |
|
|
— |
|
Exotic costs to achieve |
489 |
|
|
— |
|
|
1,084 |
|
|
— |
|
Acquisition-related expenses |
|
148,467 |
|
|
— |
|
|
165,916 |
|
|
— |
|
Adjusted
EBITDA |
|
$ |
647,383 |
|
|
$ |
596,326 |
|
|
$ |
1,285,747 |
|
|
$ |
1,221,492 |
|
|
|
|
|
|
|
|
|
|
EBITDA
margin |
|
13.8 |
% |
|
17.0 |
% |
|
16.0 |
% |
|
17.3 |
% |
Adjusted EBITDA
margin |
|
18.5 |
% |
|
17.2 |
% |
|
18.8 |
% |
|
17.6 |
% |
PARKER
HANNIFIN CORPORATION - DECEMBER 31, 2019 |
|
|
|
|
|
|
|
BUSINESS
SEGMENT INFORMATION |
|
|
|
|
|
|
|
(Unaudited) |
|
Three Months Ended December 31, |
|
Six Months Ended December 31, |
(Dollars in thousands) |
|
2019 |
|
|
2018 |
|
|
2019 |
|
|
2018 |
|
Net
sales |
|
|
|
|
|
|
|
|
Diversified Industrial: |
|
|
|
|
|
|
|
|
North America |
|
$ |
1,615,852 |
|
|
$ |
1,632,059 |
|
|
$ |
3,240,457 |
|
|
$ |
3,313,103 |
|
International |
|
1,147,084 |
|
|
1,223,679 |
|
|
2,225,934 |
|
|
2,457,445 |
|
Aerospace Systems |
|
735,038 |
|
|
616,307 |
|
|
1,366,094 |
|
|
1,180,791 |
|
Total net
sales |
|
$ |
3,497,974 |
|
|
$ |
3,472,045 |
|
|
$ |
6,832,485 |
|
|
$ |
6,951,339 |
|
Segment operating
income |
|
|
|
|
|
|
|
|
Diversified Industrial: |
|
|
|
|
|
|
|
|
North America |
|
$ |
211,339 |
|
|
$ |
257,774 |
|
|
$ |
486,531 |
|
|
$ |
532,885 |
|
International |
|
153,816 |
|
|
189,085 |
|
|
322,389 |
|
|
395,179 |
|
Aerospace Systems |
|
121,039 |
|
|
121,463 |
|
|
244,019 |
|
|
231,318 |
|
Total
segment operating income |
486,194 |
|
|
568,322 |
|
|
1,052,939 |
|
|
1,159,382 |
|
Corporate general
and administrative expenses |
35,660 |
|
|
63,890 |
|
|
84,562 |
|
|
114,215 |
|
Income before
interest expense and other expense |
450,534 |
|
|
504,432 |
|
|
968,377 |
|
|
1,045,167 |
|
Interest expense |
|
82,891 |
|
|
47,518 |
|
|
152,847 |
|
|
91,857 |
|
Other expense |
|
112,897 |
|
|
25,760 |
|
|
127,628 |
|
|
62,433 |
|
Income before income
taxes |
|
$ |
254,746 |
|
|
$ |
431,154 |
|
|
$ |
687,902 |
|
|
$ |
890,877 |
|
PARKER
HANNIFIN CORPORATION - DECEMBER 31, 2019 |
|
|
|
|
|
|
RECONCILIATION OF TOTAL SEGMENT OPERATING MARGIN TO
ADJUSTED TOTAL SEGMENT OPERATING MARGIN |
|
|
|
|
|
|
|
|
(Unaudited) |
Three Months Ended |
|
Three Months Ended |
(Dollars in thousands) |
December 31, 2019 |
|
December 31, 2018 |
|
Operating income |
|
|
Operating margin |
|
|
Operating income |
|
|
Operating margin |
|
Total segment operating income |
$ |
486,194 |
|
|
13.9 |
% |
|
$ |
568,322 |
|
|
16.4 |
% |
Adjustments: |
|
|
|
|
|
|
|
Business realignment charges |
9,719 |
|
|
|
|
2,515 |
|
|
|
Clarcor costs to achieve |
— |
|
|
|
|
4,867 |
|
|
|
Lord costs to achieve |
6,725 |
|
|
|
|
— |
|
|
|
Exotic costs to achieve |
489 |
|
|
|
|
— |
|
|
|
Acquisition-related expenses |
48,725 |
|
|
|
|
— |
|
|
|
Adjusted total segment
operating income |
$ |
551,852 |
|
|
15.8 |
% |
|
$ |
575,704 |
|
|
16.6 |
% |
|
|
|
|
|
|
|
|
|
Six Months Ended |
|
Six Months Ended |
|
December 31, 2019 |
|
December 31, 2018 |
|
Operating income |
|
|
Operating margin |
|
|
Operating income |
|
|
Operating margin |
|
Total segment
operating income |
$ |
1,052,939 |
|
|
15.4 |
% |
|
$ |
1,159,382 |
|
|
16.7 |
% |
Adjustments: |
|
|
|
|
|
|
|
Business realignment charges |
14,437 |
|
|
|
|
4,918 |
|
|
|
Clarcor costs to achieve |
— |
|
|
|
|
11,022 |
|
|
|
Lord costs to achieve |
10,139 |
|
|
|
|
— |
|
|
|
Exotic costs to achieve |
1,084 |
|
|
|
|
— |
|
|
|
Acquisition-related expenses |
51,244 |
|
|
|
|
— |
|
|
|
Adjusted total segment
operating income |
$ |
1,129,843 |
|
|
16.5 |
% |
|
$ |
1,175,322 |
|
|
16.9 |
% |
PARKER
HANNIFIN CORPORATION - DECEMBER 31, 2019 |
|
|
|
|
|
CONSOLIDATED BALANCE SHEET |
|
|
|
|
|
|
|
(Unaudited) |
|
December 31, |
|
|
June 30, |
|
|
December 31, |
|
(Dollars in thousands) |
|
2019 |
|
|
2019 |
|
|
2018 |
|
Assets |
|
|
|
|
|
|
Current
assets: |
|
|
|
|
|
|
Cash and cash equivalents |
|
$ |
948,355 |
|
|
$ |
3,219,767 |
|
|
$ |
1,047,385 |
|
Marketable securities and
other investments |
|
145,120 |
|
|
150,931 |
|
|
30,956 |
|
Trade accounts receivable,
net |
|
1,973,187 |
|
|
2,131,054 |
|
|
1,938,709 |
|
Non-trade and notes
receivable |
|
319,126 |
|
|
310,708 |
|
|
324,254 |
|
Inventories |
|
2,014,260 |
|
|
1,678,132 |
|
|
1,804,564 |
|
Prepaid expenses and
other |
|
261,103 |
|
|
182,494 |
|
|
188,868 |
|
Total current
assets |
|
5,661,151 |
|
|
7,673,086 |
|
|
5,334,736 |
|
Plant and equipment, net |
|
2,335,940 |
|
|
1,768,287 |
|
|
1,793,805 |
|
Deferred income taxes |
|
114,032 |
|
|
150,462 |
|
|
98,779 |
|
Goodwill |
|
7,955,170 |
|
|
5,453,805 |
|
|
5,462,555 |
|
Intangible assets, net |
|
4,036,108 |
|
|
1,783,277 |
|
|
1,883,825 |
|
Investments and other
assets |
|
941,588 |
|
|
747,773 |
|
|
733,987 |
|
Total
assets |
|
$ |
21,043,989 |
|
|
$ |
17,576,690 |
|
|
$ |
15,307,687 |
|
|
|
|
|
|
|
|
Liabilities and
equity |
|
|
|
|
|
|
Current
liabilities: |
|
|
|
|
|
|
Notes payable and long-term
debt payable within one year |
|
$ |
1,604,318 |
|
|
$ |
587,014 |
|
|
$ |
1,144,347 |
|
Accounts payable, trade |
|
1,311,733 |
|
|
1,413,155 |
|
|
1,307,178 |
|
Accrued payrolls and other
compensation |
|
372,549 |
|
|
426,285 |
|
|
319,787 |
|
Accrued domestic and foreign
taxes |
|
165,265 |
|
|
167,312 |
|
|
182,617 |
|
Other accrued liabilities |
|
637,257 |
|
|
558,007 |
|
|
555,005 |
|
Total current
liabilities |
|
4,091,122 |
|
|
3,151,773 |
|
|
3,508,934 |
|
Long-term debt |
|
8,141,220 |
|
|
6,520,831 |
|
|
4,303,331 |
|
Pensions and other
postretirement benefits |
|
1,366,814 |
|
|
1,304,379 |
|
|
937,938 |
|
Deferred income taxes |
|
569,582 |
|
|
193,066 |
|
|
286,622 |
|
Other liabilities |
|
532,750 |
|
|
438,489 |
|
|
449,696 |
|
Shareholders' equity |
|
6,330,175 |
|
|
5,961,969 |
|
|
5,815,209 |
|
Noncontrolling interests |
|
12,326 |
|
|
6,183 |
|
|
5,957 |
|
Total liabilities and
equity |
|
$ |
21,043,989 |
|
|
$ |
17,576,690 |
|
|
$ |
15,307,687 |
|
PARKER
HANNIFIN CORPORATION - DECEMBER 31, 2019 |
|
|
|
CONSOLIDATED STATEMENT
OF CASH FLOWS |
|
|
|
|
(Unaudited) |
|
Six Months Ended December 31, |
(Dollars in thousands) |
|
2019 |
|
|
2018 |
|
Cash flows from
operating activities: |
|
|
|
|
Net income |
|
$ |
543,639 |
|
|
$ |
687,812 |
|
Depreciation and
amortization |
|
253,300 |
|
|
222,543 |
|
Stock incentive plan
compensation |
|
73,069 |
|
|
64,615 |
|
Loss on sale of
businesses |
|
— |
|
|
623 |
|
(Gain) loss on plant and
equipment and intangible assets |
|
(4,478 |
) |
|
3,428 |
|
(Gain) loss on marketable
securities |
|
(1,969 |
) |
|
5,701 |
|
Gain on investments |
|
(1,849 |
) |
|
(3,213 |
) |
Net change in receivables,
inventories and trade payables |
|
227,247 |
|
|
(110,709 |
) |
Net change in other assets and
liabilities |
|
(278,168 |
) |
|
(379,687 |
) |
Other, net |
|
15,177 |
|
|
49,927 |
|
Net cash provided by
operating activities |
|
825,968 |
|
|
541,040 |
|
Cash flows from
investing activities: |
|
|
|
|
Acquisitions (net of cash of
$82,192 in 2019 and $690 in 2018) |
|
(5,075,605 |
) |
|
(2,042 |
) |
Capital expenditures |
|
(118,593 |
) |
|
(94,426 |
) |
Proceeds from sale of plant
and equipment |
|
20,993 |
|
|
34,121 |
|
Proceeds from sale of
businesses |
|
— |
|
|
19,540 |
|
Purchases of marketable
securities and other investments |
|
(190,129 |
) |
|
(2,845 |
) |
Maturities and sales of
marketable securities and other investments |
|
198,872 |
|
|
14,432 |
|
Other |
|
9,374 |
|
|
(90 |
) |
Net cash used in
investing activities |
|
(5,155,088 |
) |
|
(31,310 |
) |
Cash flows from
financing activities: |
|
|
|
|
Net payments for common stock
activity |
|
(134,892 |
) |
|
(565,335 |
) |
Net proceeds from debt |
|
2,416,222 |
|
|
505,811 |
|
Dividends paid |
|
(227,025 |
) |
|
(200,459 |
) |
Net cash provided by
(used in) financing activities |
|
2,054,305 |
|
|
(259,983 |
) |
Effect of exchange rate
changes on cash |
|
3,403 |
|
|
(24,499 |
) |
Net (decrease) increase in
cash and cash equivalents |
|
(2,271,412 |
) |
|
225,248 |
|
Cash and cash equivalents at
beginning of period |
|
3,219,767 |
|
|
822,137 |
|
Cash and cash
equivalents at end of period |
|
$ |
948,355 |
|
|
$ |
1,047,385 |
|
RECONCILIATION OF CASH FLOW FROM OPERATIONS TO ADJUSTED
CASH FLOW FROM OPERATIONS |
(Unaudited) |
|
Six Months Ended |
|
Six Months Ended |
(Dollars in thousands) |
|
December 31, 2019 |
|
Percent of sales |
|
December 31, 2018 |
|
Percent of sales |
As reported cash flow from operations |
|
$ |
825,968 |
|
|
12.1 |
% |
|
$ |
541,040 |
|
|
7.8 |
% |
Discretionary pension contribution |
|
— |
|
|
|
|
200,000 |
|
|
|
Adjusted cash flow
from operations |
|
$ |
825,968 |
|
|
12.1 |
% |
|
$ |
741,040 |
|
|
10.7 |
% |
|
|
|
|
|
|
|
|
|
PARKER
HANNIFIN CORPORATION - DECEMBER 31, 2019 |
|
RECONCILIATION OF FORECASTED EARNINGS PER DILUTED SHARE TO
ADJUSTED FORECASTED EARNINGS PER DILUTED SHARE |
|
|
|
(Unaudited) |
|
|
(Amounts in dollars) |
|
Fiscal Year 2020 |
Forecasted
earnings per diluted share |
$8.78 - $9.38 |
Adjustments: |
|
Business realignment charges |
0.30 |
Costs to achieve |
|
0.20 |
One-time acquisition expenses |
|
1.43 |
Tax effect of adjustments1 |
|
(0.46) |
Adjusted
forecasted earnings per diluted share |
$10.25 - $10.85 |
|
|
|
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 |
|
aidan.gormley@parker.com |
|
|
|
|
|
Financial Analysts
- |
|
|
Robin J. Davenport, Vice
President, Corporate Finance |
216-896-2265 |
|
rjdavenport@parker.com |
|
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