Batesville-based Hillenbrand Inc. (NYSE: HI) is reporting a second quarter net loss of $21.9 million, compared to net income of $33.4 million during the same period last year. The industrial manufacturer says, despite the drop, overall revenue grew 14 percent to $452 million.
Hillenbrand says the net loss was driven by a one-time, $63 million non-cash impairment charge related to a reporting unit of its Process Equipment Group business. The unit, according to the company, was adversely affected by decreased demand for equipment and parts used in the coal mining and power industries. The Process Equipment Group itself is reporting a 23 percent increase in revenue.
A spokesperson says adjusted earnings also grew 23 percent based on the company’s revenue growth. Hillenbrand has also raised its projected revenue growth and adjusted earnings guidance for the fiscal year.
"We remain committed to the strategy and long term financial targets we laid out at our investor day in December, which we believe will lead to profitable growth and increasing shareholder value," said Joe Raver, chief executive officer of Hillenbrand. "Our capital allocation priorities are to reinvest in the business, both organically and through acquisitions, while returning cash to shareholders in the form of dividends and share repurchases."
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