Hillenbrand reports strong fourth quarter revenue, income still falls
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Rebounding from earlier this year when it saw a drop in revenue from one of its primary business segments, Batesville-based Hillenbrand Inc. reported a strong fourth quarter and overall fiscal year growth.
In its earnings report published this week, the industrial equipment maker reported profits of $14.6 million over the summer months. For the full year, however, the industrial equipment maker posted a $211 million loss.
“I am proud of our team’s resiliency and determination in delivering a strong finish to the year in the face of persistent macroeconomic challenges,” said Hillenbrand CEO Kim Ryan in the earnings report. “We accelerated cost saving and working capital initiatives, diligently managed discretionary costs and made significant progress on our integrations. As a result of these efforts, we drove strong cash generation in the fourth quarter and exceeded our goal for FPM’s margins in the year.”
The company’s full-year revenue increased by about 12% over 2023. However, Hillenbrand’s operating expenses increased by 23%. That’s on top of a reported $265 million in impairment charges.
Hillenbrand posted $3 billion in revenue, making it one of Indiana’s 20 largest companies, per IBJ research. The company’s stock was up about 8% the day after the report was released.
The past few years have seen Hillenbrand acquire several other companies while divesting its casket business. In September, Hillenbrand entered into a $55 million sale-leaseback agreement for two industrial properties in Ohio. In May 2023, the company acquired the Missouri-based Food and Performance Materials business, or FPM, from Schenck Process in a $730 million deal.
In February 2023, the company sold its Batesville casket segment for $761.5 million to an affiliate of private investment firm LongRange Capital.
In February 2024, Hillenbrand undertook a 5% workforce reduction in its Molding Technology Solutions unit. Over the summer, Ryan told IBJ that Hillenbrand is now focused on durable plastics, food recycling and advanced materials processing.
The full earnings report can be viewed here.
