Batesville-based Hillenbrand Inc. (NYSE: HI) is reporting second quarter net income of $26.1 million, down slightly from $30.7 million during the same period last year. The manufacturer continues to battle what Chief Executive Officer Joe Raver calls "market headwinds."
The manufacturer recently closed on its $132 million acquisition of Red Valve Co. Inc., which is part of diversification efforts. The company says it is also progressing with expanded restructuring measures it says will eventually lead to savings of $10 million a year. The initiative is on pace to save $4 million in fiscal 2016.
Raver says "end markets for the Process Equipment Group and Batesville continue to be challenged. While we do not anticipate meaningful improvement in market conditions this fiscal year, we continue to take proactive measures to protect our profitability and prepare the business to respond to our customers’ needs as demand returns. Our results continue to demonstrate our focus on what we can control, evidenced by the margin improvement in both segments in the face of continued market headwinds."
Hillenbrand reports a 4 percent dip in revenue to $387 million, driven by lower demand in the industrial equipment and funeral services markets. It is keeping its fiscal 2016 guidance unchanged, but expects it to finish on the lower ends of the revenue and EPS projections.