Parker Hannifin sees record sales, income
By Mike Brezonick06 August 2021
Parker Hannifin Corp., the global supplier of motion and control technologies, reported that its fiscal 2021 fourth quarter sales were an all-time quarterly record of $3.96 billion, an increase of 25% compared with $3.16 billion in the fourth quarter of fiscal 2020. Net income was also a record at $504.8 million, an increase of 74% compared with $289.5 million in the prior year quarter.
“We had an outstanding fourth quarter that capped off a record year for Parker,” said Chairman and Chief Executive Officer Tom Williams. “Despite extraordinary challenges, we generated record financial performance in fiscal 2021, setting all-time highs for sales, net income, earnings per share, segment operating margins and cash flow from operations. Notably, our full year adjusted segment operating margins reached 21.1%, a 220 basis point improvement versus the prior year.”
For the full year, fiscal 2021 sales were a record at $14.35 billion, an increase of 5% compared with $13.70 billion in fiscal 2020. Net income was a record at $1.75 billion, a 45% increase compared with $1.20 billion in the prior year period.
In the Diversified Industrial Segment, which includes Parker’s filtration, fluid connectors, hydraulics and instrumentation businesses, North American fourth quarter sales increased 27% to $1.82 billion. International fourth quarter sales increased 37% to $1.51 billion. Fourth quarter orders in North America increased 56%, while international orders were up 58%.
Outlook for 2022
For the fiscal year ending June 30, 2022, the company has issued guidance for earnings per share to the range of $14.08 to $14.88, or $16.20 to $17.00 on an adjusted basis. Guidance assumes organic sales growth of approximately 5% to 9% compared with the prior year.
“We are encouraged by the positive demand trends across many of our end markets and anticipate a continued recovery in commercial aerospace during fiscal 2022,” Williams said. “We expect this improving macro-economic outlook to enhance the impact of our continued actions to drive profitable growth by executing the Win Strategy and delivering top quartile financial performance.”