Parker-Hannifin said net sales for the quarter ended December 31, 2023 rose on higher sales in the Aerospace Systems Segment, partially offset by lower sales in the Diversified Industrial Segment. Currency exchange rate changes increased sales by approximately $25 million, and divestiture activity decreased sales by approximately $13 million.

10-QQuarterly reportFiled Feb 6, 2024Period of report Dec 31, 2023Summary published (UTC) Oct 24, 2026

Key points

AI summary

Parker-Hannifin said net sales for the quarter ended December 31, 2023 rose on higher sales in the Aerospace Systems Segment, partially offset by lower sales in the Diversified Industrial Segment. Currency exchange rate changes increased sales by approximately $25 million, and divestiture activity decreased sales by approximately $13 million.
The company said gross profit margin rose in the quarter and the first 6 months, driven by price increases, product mix and moderating material costs in both segments. Cost of sales in the prior-year quarter included $112 million of amortization for the step-up in inventory to fair value from the Meggitt acquisition, and the first 6 months of the prior year included $130 million of the same.
The company said operating cash flow for the first 6 months of fiscal 2024 was $1,352 million, compared with $1,076 million for the same period a year earlier, an increase of $276 million. It attributed the change mainly to net changes in cash from working capital items.
The company said Aerospace Systems Segment backlog as of December 31, 2023 increased from June 30, 2023 amount of $6.2 billion. It said orders exceeded shipments across all businesses, especially the commercial aftermarket business.

Key figures

Quarter ended December 31, 2023

Revenue: $4.8B
Operating income: $966M
Net income: $682M
EPS: $5.23

From the XBRL financial data filed with the SEC · not processed by AI.

Summary

AI-written

Analysis scope · Management's discussion (MD&A)We analyzed the Management's Discussion and Analysis (MD&A) section. Other sections of the report, such as the notes to the financial statements and risk factors, were not reviewed.

Drivers of Quarterly Net Sales Change

Parker-Hannifin said net sales for the quarter ended December 31, 2023 rose on higher sales in the Aerospace Systems Segment, partially offset by lower sales in the Diversified Industrial Segment. Currency exchange rate changes increased sales by approximately $25 million, and divestiture activity decreased sales by approximately $13 million.

Source · Based on the MD&A text of the filing

Gross Margin and Meggitt Inventory Amortization

The company said gross profit margin rose in the quarter and the first 6 months, driven by price increases, product mix and moderating material costs in both segments. Cost of sales in the prior-year quarter included $112 million of amortization for the step-up in inventory to fair value from the Meggitt acquisition, and the first 6 months of the prior year included $130 million of the same.

Source · Based on the MD&A text of the filing

6-Month Operating Cash Flow

The company said operating cash flow for the first 6 months of fiscal 2024 was $1,352 million, compared with $1,076 million for the same period a year earlier, an increase of $276 million. It attributed the change mainly to net changes in cash from working capital items.

Source · Based on the MD&A text of the filing

Aerospace Systems Backlog

The company said Aerospace Systems Segment backlog as of December 31, 2023 increased from June 30, 2023 amount of $6.2 billion. It said orders exceeded shipments across all businesses, especially the commercial aftermarket business.

Source · Based on the MD&A text of the filing

AI summarized the filing and translated the summary into English; it may differ from the original. For reference only, not investment advice. AI translated the published Korean report into English. Figures are copied as filed, not recalculated.

Original filing

The filing as submitted to SEC EDGAR. You can check the figures and statements of this summary against it.

View the original filing on SEC EDGAR ↗

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