BATESVILLE, Ind. - Hillenbrand, Inc. (NYSE: NYSE:HI), a global provider of engineered processing equipment and solutions, announced the election of Joseph T. Lower as an independent director to its Board of Directors. Lower, who retired as the Executive Vice President and Chief Financial Officer of AutoNation (NYSE:AN), Inc. in 2024, is set to bring his extensive finance and business development expertise to the company.
Lower's career includes a notable tenure as CFO at AutoNation and Office Depot (NASDAQ:ODP), where he played a pivotal role in Office Depot's transformation strategy. He also served as CFO of B/E Aerospace, Inc., contributing to its acquisition by Rockwell Collins (NYSE:COL), Inc. His appointment is part of Hillenbrand's commitment to board development and strategic planning for long-term profitable growth.
In addition to his director role, Lower will serve as Vice Chairperson of the Audit Committee and will be a member of the Nominating/Corporate Governance Committee and Mergers and Acquisitions Committee at Hillenbrand. His more than three decades of experience in financial leadership and mergers and acquisitions are expected to be valuable assets to the Board.
Inderpreet Sawhney, Group General Counsel and Chief Compliance Officer of Infosys (NS:INFY) Ltd., will also take on a new role as Vice Chairperson of the Nominating/Corporate Governance Committee. Sawhney's prior experience includes serving as General Counsel for Wipro (NYSE:WIT) Limited and working at The Chugh Firm. She joined the Hillenbrand Board in 2021.
Both Lower and Sawhney will assume their new roles on Dec. 1, 2024. With Lower's addition, the Hillenbrand Board will consist of 11 directors, 10 of whom are independent.
Hillenbrand's portfolio includes industrial brands serving markets such as plastics, food, and recycling. The company operates in over 100 countries and focuses on delivering solutions that benefit its associates, customers, and stakeholders. This announcement is based on a press release statement.
In other recent news, Hillenbrand Inc . reported a 14% increase in total revenue in the second quarter of fiscal year 2024, primarily due to the acquisition of Schenck Process Food and Performance Materials business. The company revised its full-year revenue forecast to $3.2 billion to $3.3 billion, with adjusted EBITDA between $512 million and $536 million, and adjusted EPS of $3.30 to $3.50. Hillenbrand also sold two Ohio properties for approximately $54.9 million, intending to use the proceeds for general corporate purposes, including the repayment of long-term debt.
Furthermore, Hillenbrand entered into amendments to its credit agreements, which included modifications to the company's leverage ratio and the extension of certain financial covenants. This strategic adjustment in its financial management was made in conjunction with JPMorgan Chase (NYSE:JPM) Bank, N.A., and other lenders party to the agreements. Commerzbank (ETR:CBKG) Aktiengesellschaft also consented to these changes.
In the realm of analyst insights, KeyBanc reduced its price target for Hillenbrand to $45, maintaining an Overweight rating despite potential cyclical challenges. Conversely, DA Davidson downgraded Hillenbrand's stock from Buy to Neutral and revised the price target to $33, citing continued weakness in the company's Advanced Process Solutions segment and sluggishness in the Molding Technology Solutions division. These are the latest developments in the company's ongoing operations.
InvestingPro Insights
As Hillenbrand (NYSE: HI) welcomes Joseph T. Lower to its Board of Directors, investors may find additional context from recent financial data and expert insights. According to InvestingPro, Hillenbrand has demonstrated a commitment to shareholder returns, having raised its dividend for 16 consecutive years and maintained dividend payments for 17 years. This track record aligns with the company's focus on long-term profitable growth mentioned in the article.
However, the company's financial landscape presents a mixed picture. InvestingPro data shows that Hillenbrand's revenue for the last twelve months as of Q3 2024 stood at $3,108 million, with a revenue growth of 16.53%. Despite this growth, the company's profitability has been challenged, as indicated by a negative P/E ratio of -9.38 and a basic EPS of -$2.96 for the same period.
The appointment of Lower, with his extensive financial and M&A experience, comes at a time when Hillenbrand could benefit from strategic financial guidance. This is particularly relevant given that InvestingPro Tips highlight that the company "operates with a significant debt burden" and has "not been profitable over the last twelve months." Lower's expertise may be crucial in addressing these challenges and capitalizing on the expected net income growth for the year, another insight provided by InvestingPro.
Investors considering Hillenbrand should note that the stock has faced significant headwinds, with InvestingPro data showing a 33.63% decline in the three-month price total return as of the latest available data. This context makes the board's strategic decisions, including the new appointments, all the more critical for the company's future direction.
For a more comprehensive analysis, InvestingPro offers 8 additional tips for Hillenbrand, which could provide valuable insights for investors looking to deepen their understanding of the company's prospects.
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