Parker-Hannifin Corporation (PH) Q3 2023 Earnings Call Transcript

For the period ending March 31, 2023

May 4, 2023 11:00 a.m. ET

Prepared Remarks

Questions and Answers

Call Participants

Prepared Remarks：

Operator

Good day, and thank you for standing by. Welcome to the Parker-Hannifin’s Fiscal 2023 Third Quarter Earnings Conference Call and Webcast. At this time, all participants are in a listen-only mode. After the speakers’ presentation, there will be a question-and-answer session. [Operator Instructions] Please be advised that today’s conference is being recorded.

I would now like to hand the conference over to Todd Leombruno, Chief Financial Officer. Please go ahead.

Todd Leombruno

Thank you, Chris. And good morning, everyone, and thank you for joining Parker’s fiscal year 2023 Q3 earnings release webcast. As Chris said, this is Todd Leombruno, Chief Financial Officer, speaking. And joining me today is Jennifer Parmentier, our Chief Executive Officer; and Lee Banks, our Vice Chairman and President.

Our third quarter results were released this morning. And just a reminder, today we will be addressing forward projections and non-GAAP financial measures. On Slide 2 of this presentation you will find further details to our disclosure in these areas. Actual results may vary from our projections based on some of the details that are listed on this slide. Our press release, this presentation and all reconciliations of non-GAAP financial measures are available under our Investors section at parker.com, and they will remain available for one year.

We're going to begin the call today with Jenny addressing highlights of the third quarter and really touching on how Parker is so well positioned for the future. I will follow with a brief financial summary and then review the increase to our guidance that we released this morning. Jenny will then wrap up with summary comments, and then Jenny, Lee and myself will address any questions from the queue.

I will all ask you now to address yourself to Slide 3. And Jenny, I'll hand over to you.

Jennifer Parmentier

Thank you, Todd. Good morning to everyone and thank you for joining our call today. Q3 was a quarter of outstanding performance across all of Parker. Starting with safety. We remain in the top quartile with a 17% reduction in recordable incidents. Safety has been and will continue to be our top priority.

We had record sales of $5.1 billion in the quarter, a 24% increase over prior year with organic growth of 12%. The Win Strategy and portfolio changes have clearly delivered record performance, driving a full year guidance increase. We are increasing the quarterly dividend 11% over last year, and we are happy to report today that the Meggitt integration and synergies are ahead of schedule for fiscal year 2023.