Parker Hannifin Corporation (PH) has reported a 27.58 percent rise in profit for the quarter ended Mar. 31, 2017. The company has earned $238.67 million, or $1.75 a share in the quarter, compared with $187.08 million, or $1.37 a share for the same period last year. On an adjusted basis, earnings per share were at $2.11 for the quarter compared with $1.51 in the same period last year. Revenue during the quarter grew 10.27 percent to $3,119.14 million from $2,828.66 million in the previous year period. Gross margin for the quarter expanded 168 basis points over the previous year period to 23.58 percent. Total expenses were 88.99 percent of quarterly revenues, down from 89.98 percent for the same period last year. This has led to an improvement of 99 basis points in operating margin to 11.01 percent.
Operating income for the quarter was $343.31 million, compared with $283.36 million in the previous year period.
"Accelerated sales growth combined with the benefits of ongoing execution of our Win Strategy™ initiatives, contributed to another strong quarter for Parker across many measures," said Chairman and Chief Executive Officer, Tom Williams. "While sales growth included the CLARCOR acquisition, we were particularly pleased that organic sales increased 6%. We drove meaningful year-over-year adjusted segment operating margin improvement of 140 basis points with total segment operating margins reaching 16.1%. With the completion of the CLARCOR acquisition, we are well underway with the integration of our two great filtration businesses designed to achieve significant synergies. We were also pleased at Parker’s ability to be a consistent generator of cash with strong year-to-date operating cash flow performance."
For fiscal year 2017, the company expects diluted earnings from continuing operations per share to be in the range of $6.90 to $7.20. For fiscal year 2017, the company expects diluted earnings from continuing operations per share to be in the range of $7.70 to $8 on adjusted basis.Operating cash flow improves Parker Hannifin Corporation has generated cash of $789.29 million from operating activities during the nine month period, up 12.03 percent or $84.73 million, when compared with the last year period.
The company has spent $3,308.36 million cash to meet investing activities during the nine month period as against cash outgo of $394.46 million in the last year period. It has incurred net capital expenditure of $136.78 million on net basis during the nine month period, up 41.46 percent or $40.09 million from year ago period.
Cash flow from financing activities was $2,168.35 million for the nine month period as against cash outgo of $415.70 million in the last year period.
Cash and cash equivalents stood at $819.56 million as on Mar. 31, 2017, down 20.81 percent or $215.41 million from $1,034.97 million on Mar. 31, 2016.
Debt increases substantially Parker Hannifin Corporation has witnessed an increase in total debt over the last one year. It stood at $6,031.32 million as on Mar. 31, 2017, up 86.82 percent or $2,802.86 million from $3,228.45 million on Mar. 31, 2016. Total debt was 39.36 percent of total assets as on Mar. 31, 2017, compared with 26.75 percent on Mar. 31, 2016. Debt to equity ratio was at 1.27 as on Mar. 31, 2017, up from 0.64 as on Mar. 31, 2016. Interest coverage ratio deteriorated to 8.16 for the quarter from 8.40 for the same period last year. Disclaimer: Please note that this is an auto-generated article. IRIS does not guarantee the accuracy, adequacy or completeness of any information and is not responsible for any errors or omissions or for the results obtained from the use of such information. IRIS especially states that it has no financial liability whatsoever to any user on account of the use of information provided on its website. For queries contact: [email protected]
