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Parker-Hannifin Corporation (PH+0.90%) has submitted its 10-Q filing for the quarterly period ended December 31, 2024.
The filing indicates a decrease in net sales to $4,742,593,000 from $4,820,947,000 in the same quarter of the previous year. This decrease is primarily attributed to lower sales in the Diversified Industrial Segment, partially offset by higher sales in the Aerospace Systems Segment.
The Diversified Industrial Segment reported net sales of $3,252,806,000, down from $3,514,473,000 in the previous year. The decline is due to reduced demand in North America and international markets, as well as the impact of divestitures and currency exchange rates.
Aerospace Systems Segment sales increased to $1,489,787,000 from $1,306,474,000, driven by higher volume in commercial and defense aftermarket and OEM market segments.
The company's gross profit margin improved to 36.3% from 35.7% in the previous year, reflecting favorable product mix, price increases, and cost containment measures.
Selling, general, and administrative expenses decreased to $782,421,000 from $806,802,000, due to lower research and development expenses and benefits from prior-year restructuring and acquisition integration activities.
Net income for the quarter was $948,649,000, up from $682,057,000 in the previous year. The effective tax rate was 18.6%, lower than the U.S. Federal statutory rate, due to tax benefits from share-based compensation and other factors.
Cash provided by operating activities was $1,678,733,000, while cash used in investing and financing activities was $412,007,000 and $2,104,226,000, respectively.
The company repurchased 75,764 shares during the quarter at an average price of $659.94 per share.
Parker-Hannifin's backlog at December 31, 2024, was $10.5 billion, with approximately 74% expected to be recognized as revenue within the next 12 months.
The filing also details divestitures, including the sale of the composites and fuel containment business for net proceeds of $555 million, resulting in a pre-tax gain of $238 million.
This content was summarized by generative artificial intelligence using public filings retrieved from SEC.gov. The original data was derived from the Parker-Hannifin Corporation quarterly 10-Q report dated January 31, 2025. To report an error, please email earnings@qz.com.