Parker Reports Fiscal 2023 First Quarter Results

- Record sales and record adjusted total segment operating margin, net income and EPS
- Sales increased12%to$4.23billion; organic sales increased14%
- Total segment operating margin was19.8%, or22.7%adjusted, an increase of 70 basis points
- Net income was$387.9million, or$615.5million adjusted
- EPS were$2.98, or$4.74adjusted
- EBITDA margin was18.3%, or 23.3% adjusted, an increase of 120 basis points
- Company increases full year organic growth and adjusted EPS guidance

CLEVELAND, Nov. 03, 2022 (GLOBE NEWSWIRE) -- Parker Hannifin Corporation (NYSE: PH), the global leader in motion and control technologies, today reported results for the fiscal 2023 first quarter ended September 30, 2022. Fiscal 2023 first quarter sales were a record at $4.23 billion, an increase of 12%, compared with $3.76 billion in the first quarter of fiscal 2022. Net income was $387.9 million compared with $451.2 million in the prior year quarter. Adjusted net income was $615.5 million, an increase of 11% compared with $556.7 million in the first quarter of fiscal 2022. Earnings per share were $2.98 compared with $3.45 in the first quarter of fiscal 2022. Adjusted earnings per share increased 11% to a record of $4.74 compared with $4.26 in the prior year quarter. Fiscal 2023 year-to-date cash flow from operations was $457.4 million, or 10.8% of sales, compared with $424.4 million, or 11.3% of sales, in the prior year. A reconciliation of non-GAAP measures is included in the financial tables of this press release and includes various expenses associated with the completion of the acquisition of Meggitt plc and the related divestiture of the Aircraft Wheel and Brake Division during the first quarter of fiscal 2023.

“Our global team delivered yet another quarter of impressive performance and we reached an important milestone by completing the acquisition of Meggitt plc,” said Chairman and Chief Executive Officer, Tom Williams. “Sales were an all-time quarterly record despite currency headwinds as we had strong levels of organic growth in every region. Adjusted total segment operating margin was a first quarter record, increasing 70 basis points compared with the prior year period. Our adjusted EBITDA margin increased 120 basis points year-over-year, and we achieved a first quarter record for adjusted earnings per share. These results reflect the agility of our team members and the continued actions we have taken to strengthen our business under The Win Strategy™."

Segment Results
Diversified Industrial Segment: North American first quarter sales increased 19% to $2.13 billion and operating income was $453.0 million compared with $333.7 million in the same period a year ago. On an adjusted basis, North American operating income was $499.4 million, or 23.4% of sales, a 210 basis point increase compared with the prior year quarter. International first quarter sales decreased 2% to $1.36 billion and operating income was $293.9 million compared with $291.2 million in the same period a year ago. On an adjusted basis, International operating income was $312.8 million, or 23.1% of sales, a 30 basis point increase compared with the prior year quarter.