Hillenbrand Reports Q1 EPS of $.44 vs. $.45

Hillenbrand, Inc. HI For the first quarter of fiscal 2011, which ended December 31, 2010, Hillenbrand reported revenue of $211 million, a $49.5 million (31 percent) increase over the prior year, resulting primarily from the April 1, 2010, acquisition of K-Tron International. K-Tron generated revenue of $51.1 million, which was 17 percent above results it reported separately in the prior year, and Batesville's revenue declined slightly less than 1 percent to $159.9 million. Consolidated gross profit margin was 43.2 percent in the quarter, a decline from 44.6 percent in the prior year, due primarily to increased commodity costs in the Batesville segment, particularly for steel and fuel. Both net income ($27.1 million) and earnings per share ($0.44) decreased 8 percent, primarily as a result of increased interest expense and amortization connected with the K-Tron acquisition, and a 36 percent quarterly tax rate, representing an increase of 200 basis points over prior year. Operating expense was also affected by last year's recovery of $4.1 million in overpaid sales tax, compared to recovery of $600,000 in the first quarter of 2011.