Hillenbrand profit dips in Q1
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Batesville-based Hillenbrand Inc. (NYSE: HI) is reporting fiscal first quarter net income of $45.5 million, down from $49 million during the same period the previous year. CEO Kim Ryan said the company had a “solid start” to the fiscal year driven largely by “healthy demand” and recent acquisitions.
Hillenbrand completed acquisitions of Herbold Meckesheim GmbH in Germany, France-based LINXIS Group and the Peerless Food Equipment division of Illinois Tool Works Inc. (NYSE: ITW) in 2022.
The company said revenue from continuing operations increased 16% to $656 million for the first quarter, primarily due to the acquisitions.
“We remain in a challenging macroeconomic environment, with continued delays in customer decisions impacting orders within our Molding Technology Solutions segment,” Ryan said in a news release. “As we navigate this period of macro uncertainty, we remain focused on deploying the Hillenbrand Operating Model to manage costs and drive operational improvements.”
Part of that effort includes the recently-completed sale of the former Batesville Casket Co. division. The subsidiary, now known as Batesville Services LLC, was sold to Connecticut-based LongRange Capital for $761 million.
Hillenbrand said it expects to receive net proceeds after tax of $530 million from the sale, which will be used to further pay down debt.
The company also updated its annual guidance for fiscal year 2023 as a result of the sale. You can view the full earnings report by clicking here.
Hillenbrand has two main divisions – Advanced Process Solutions and Molding Technology Solutions – which manufacture processing equipment, systems and aftermarket parts for a variety of industries, including plastics, automotive and food.
Hillenbrand is the 18th largest public company in Indiana with $2.9 billion in revenue in 2021, according to IBJ research. The company has a total of more than 10,000 employees.