Hillenbrand Inc. (NYSE: HI) leaders reported results Nov. 25 for the fourth quarter ended Sept. 30. Revenue was $441 million, representing 74 percent growth over the prior year.
The Process Equipment Group reported revenue of $291 million, a 186 percent increase due primarily to the acquisition of Coperion last December. For the rest of the Process Equipment Group, revenue decreased 13 percent due to lower demand for equipment used in certain end markets, principally potash and proppants. Order backlog increased 6 percent to $604 million. Batesville revenue was $150 million, a 1 percent decrease driven by the increased rate at which consumers opted for cremation, according to the news release.
Joe Raver, Hillenbrand Inc. president and chief executive officer, said, “We are encouraged by order activity throughout the Process Equipment Group, with order backlog at a record-high level this past quarter. This increase was driven by strong demand from the North American polyolefin market.”
“We will continue to execute the growth strategy which has transformed Hillenbrand into a global diversified industrial company,” he reported. “With the substantial investments we have made over the past three years, we are well-positioned to deliver long-term growth and shareholder value.”
Company executives expect 2014 revenue to be approximately $1.7 billion. Revenue from the Process Equipment Group is projected to be about $1.1 billion and Batesville is anticipated to deliver approximately $600 million in revenue.
Given current foreign exchange rates, management expects minimal translation impact to revenue compared to 2013.
Both revenue and adjusted diluted earnings per share results for the year were within the range of guidance provided in early December. For the year ended Sept. 30, Hillenbrand Inc.’s revenue increased 58 percent to $1.55 billion.
Net income decreased 40 percent to $63 million ($1.01 per diluted share). On an adjusted basis, net income increased 8 percent to $118 million ($1.88 per diluted share).
Adjusted earnings before interest, taxes, depreciation and amortization increased 19 percent to $248 million, and as a percentage of revenue, was 16 percent compared to 21 percent in the prior year, the news release stated.