Parker Hannifin Q4 Net Income Decreases; Launches Simplification Initiative

(RTTNews) - Parker Hannifin Corp. (PH) reported fourth quarter net income of $179.6 million, compared to $301.2 million in the prior year quarter. Earnings per share were $1.27, compared with $1.98. Adjusted earnings per share were $1.43, for the quarter.

"We continue to feel the effects of changes in currency rates and have been taking actions to adjust to weak macro-economic and end market conditions. We continue to see opportunities to reduce costs around the world. We are also launching our Simplification initiative as part of the refreshed Win Strategy," said Tom Williams, CEO.

On average, 16 analysts polled by Thomson Reuters expected the company to report profit per share of $1.87 for the quarter. Analysts' estimates typically exclude special items.

Sales were $3.14 billion, compared with $3.53 billion in the same period a year ago, reflecting the effect of currency rate changes and weak end market demand. Analysts expected revenue of $3.19 billion for the quarter.

For the fiscal year ending June 30, 2016, the company issued guidance for earnings from continuing operations in the range of $6.15 to $6.85 per share, or $6.65 to $7.35 per share on an adjusted basis. Analysts expect the company to report earnings per share of $7.69.

The company noted that its fiscal 2016 guidance is adjusted for expected business realignment expenses of approximately $0.50 per share, of which $0.30 per share relates to the Simplification initiatives.