Parker Hannifin Corporation (NYSE: PH), the global leader in motion and control technologies, today reported results for the fiscal 2013 fourth quarter and year ended June 30, 2013. Fiscal 2013 sales were $13.0 billion, compared with $13.1 billion in fiscal 2012. Net income for the year was $948.8 million, compared with $1,155.5 million in fiscal 2012. Fiscal 2013 earnings per diluted share were $6.26, compared with $7.45 in the previous year, and included an increase in domestic qualified pension expense of approximately $0.35 per diluted share due to accounting regulations which required the use of a lower discount rate due to market conditions. Cash flow from operations for fiscal 2013 was $1.2 billion, or 9.1 percent of sales, compared with cash flow from operations of $1.5 billion, or 11.6 percent of sales, in the prior year. Cash flow from operations in fiscal 2013 included a $225.6 million discretionary contribution to the company’s pension plan. Excluding this contribution, cash flow from operations as a percent of sales was 10.9 percent for fiscal 2013.
Fiscal 2013 fourth quarter sales were a record at $3.43 billion compared with $3.41 billion in the same quarter a year ago. Net income for the fiscal 2013 fourth quarter was $271.1 million, compared with $302.3 million in the fourth quarter of fiscal 2012. Earnings per diluted share for the fiscal 2013 fourth quarter were $1.78, compared with $1.96 in last year’s fourth quarter. Earnings per diluted share were less than expected due to reduced volumes, and greater than anticipated inventory, acquisition, integration and related expenses.
“Our performance in fiscal year 2013 largely reflects challenging global macro-economic conditions and integration and acquisition related costs,” said Chairman, CEO and President, Don Washkewicz. “As the year progressed, we continued to adapt to weak conditions and drive stronger operational performance finishing positively with record fourth quarter sales and our highest quarterly segment operating margin for the fiscal year at 14.5 percent. For the year, we were able to deliver high levels of segment operating margin and operating cash flows.”