CLEVELAND -- Parker Hannifin Corp. reports fiscal year 2014 net income of $1,041 million, or $6.87 per diluted share. This compares with net income of $949 million, or $6.25 per diluted share, for fiscal 2013.
Sales were a record $13.2 billion for fiscal 2014, up from $13 billion in the previous year.
Cash flow from operations for fiscal 2014 was $1.4 billion, or 10.5% of sales, compared with $1.2 billion, or 9.1% of sales, in the prior year. Excluding a discretionary contribution to the company's pension plan of $75 million in fiscal 2014, cash flow from operations was 11.1% of sales.
"Fiscal 2014 was a transitional year as we worked through the most significant restructuring in our history." said Don Washkewicz, chairman, CEO and president. "Our global team was able to stay focused and still deliver record sales and strong earnings and cash flow for the year, which included record fourth quarter operating cash flow. Overall, we are well positioned entering the new fiscal year."
Fiscal 2014 fourth quarter sales increased 3% to a record $3.53 billion compared with $3.43 billion in the same period a year ago. Fourth-quarter net income was $301.2 million, or $1.98 earnings per diluted share, compared with $271.1 million, or $1.78 earnings per diluted share a year ago.
North American fourth quarter sales increased 4% to $1.53 billion, and operating income was $268.7 million, compared with a year ago. International fourth quarter sales increased 3.1% to $1.38 billion, and operating income was $137.9 million compared with $162.6 million a year ago.
In the aerospace systems segment, fourth quarter sales were essentially flat at $617.6 million, reflecting the impact of the previously announced joint venture between Parker Aerospace and GE Aviation. Operating income was $104.9 million compared with $86.1 million in the same period a year ago.
Parker reported an increase of 4% in orders for the quarter ending June 30 compared with the same quarter a year ago. This is the fourth consecutive quarter of year-over-year positive order growth. The company reported the following orders by business:
For the fiscal year ending June 30, 2015, the company has issued guidance for earnings per diluted share in the range of $7 to $7.80, or $7.25 to $8.05 on an adjusted basis. "In fiscal year 2015, we anticipate generally stable macroeconomic conditions," Washkewicz said.
Published by The Business Journal, Youngstown, Ohio.
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