Parker Hannifin sees record sales, income

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.

Fourth quarter sales for Parker’s business group that includes its filtration, fluid connectors, hydraulics and instrumentation businesses, were up 27% in North America and international sales rose 37%.

“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.

Segment Results

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.”