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Parker-Hannifin net income plunges, hit by US tax changes

Parker-Hannifin Corp. reported a decline in net income in the second quarter of its fiscal 2018, taking a hit from U.S. tax changes.

Net income came in at $56.2 million, or 41 cents per share, in the quarter ending Dec. 31, 2017, significantly lower than the $241.3 million, or $1.78 per share, recorded in the year-ago period.

During the quarter, Parker-Hannifin recognized a net one-time adjustment to income tax expense of $224.5 million, or $1.65 per share, related to the new tax law.

Total net sales of the motion and control technologies firm grew to $3.37 billion from $2.67 billion a year earlier. By segment, sales of the diversified industrial North America business rose year over year to $1.57 billion from $1.12 billion, while sales of the diversified industrial international business increased to $1.26 billion from $1.01 billion.

The aerospace systems segment, meanwhile, posted sales of $549.7 million in the quarter, up from prior-year sales of $543.8 million.

For the current fiscal year ending June 30, Parker-Hannifin projects earnings per share between $7.38 and $7.78.

The company's fiscal year adjusted EPS forecast is in the range of $9.65 to $10.05. Adjusted EPS in the fiscal second quarter was $2.15, up from $1.91 a year ago.

Parker-Hannifin Chairman and CEO Tom Williams said strong market conditions are expected to continue into the second half of the company's fiscal year.

"We are firmly positioned to build on the financial progress that we have made in recent years and to deliver record sales and earnings in fiscal 2018," Williams said.