Hillenbrand profit up 17 percent after Rotex deal

  • Comments
  • Print
Listen to this story

Subscriber Benefit

As a subscriber you can listen to articles at work, in the car, or while you work out. Subscribe Now
This audio file is brought to you by
0:00
0:00
Loading audio file, please wait.
  • 0.25
  • 0.50
  • 0.75
  • 1.00
  • 1.25
  • 1.50
  • 1.75
  • 2.00

Hillenbrand Inc. said Monday its profit grew 17 percent in the fiscal fourth quarter after it acquired Rotex Global LLC.

Hillenbrand said its profit increased to $23.5, million, or 38 cents per share, from $20.1 million, or 32 cents per share. Its revenue picked up 9 percent, to $231.2 million from $212 million.

Analysts expected the Batesville-based company to earn 36 cents per share on average, according to FactSet.

The company has two main businesses: Batesville, a maker of caskets and other related products, and its Process Equipment Group, which makes equipment and systems used in industrial processing applications.

Hillenbrand bought Rotex, which makes dry material separation machines and replacement parts, for $240 million in a deal that closed Sept. 1. Rotex became part of the Process Equipment Group, and the company said revenue for that business rose 32 percent, to $76.4 million, over the three months ended Sept. 30.

In fiscal 2011 Hillenbrand said its profit rose 15 percent, to $106.1 million, or $1.71 per share, from $92.3 million, or $1.49 per share, in fiscal 2010. Its revenue increased 18 percent, to $883.4 million from $749.2 million.

The company forecast an adjusted profit of $1.82 to $1.92 per share in fiscal 2012. It said revenue will rise 13 to 17 percent, implying a range of $998.2 million to $1.03 billion. Hillenbrand says revenue for the Process Equipment Group should grow more than 10 percent and revenue from its Batesville unit should increase by a low single-digit percentage.

Analysts are expecting a profit of $1.77 per share on revenue of $954.1 million on average.

Shares of Hillenbrand gained 86 cents, or 4.1 percent, to $22 in aftermarket trading following the release of the earnings report. They had ended the regular session up 7.9 percent at $21.14.

Please enable JavaScript to view this content.

Editor's note: You can comment on IBJ stories by signing in to your IBJ account. If you have not registered, please sign up for a free account now. Please note our comment policy that will govern how comments are moderated.

Get the best of Indiana business news. ONLY $1/week Subscribe Now

Get the best of Indiana business news. ONLY $1/week Subscribe Now

Get the best of Indiana business news. ONLY $1/week Subscribe Now

Get the best of Indiana business news. ONLY $1/week Subscribe Now

Get the best of Indiana business news.

Limited-time introductory offer for new subscribers

ONLY $1/week

Cancel anytime

Subscribe Now

Already a paid subscriber? Log In

Get the best of Indiana business news.

Limited-time introductory offer for new subscribers

ONLY $1/week

Cancel anytime

Subscribe Now

Already a paid subscriber? Log In

Get the best of Indiana business news.

Limited-time introductory offer for new subscribers

ONLY $1/week

Cancel anytime

Subscribe Now

Already a paid subscriber? Log In

Get the best of Indiana business news.

Limited-time introductory offer for new subscribers

ONLY $1/week

Cancel anytime

Subscribe Now

Already a paid subscriber? Log In