By Dow Jones Business News,
January 22, 2014, 08:16:00 AM EDT
By Everdeen Mason
Parker Hannifin Corp.'s ( PH ) fiscal second-quarter earnings rose 40% as the maker of motion and control equipment's
orders continued to grow and gains from a joint venture agreement with General Electric Co. (GE) offset a costly write-
Chief Executive Don Washkewicz said adjusted earnings were ahead of expectations, yet the company lowered its per-
share earnings estimate for the year to $6.20 to $6.60, compared with October's view of $7.78 to $8.38. The new outlook
includes a restructuring charge of 47 cents a share.
The company has posted mixed revenue results on softer international business conditions, and Parker has been cutting
costs and adjusting its planned capital expenditures in an attempt to offset those challenges.
The company's product lines include components for hydraulic and pneumatic gear used in construction equipment,
aircraft parts, components for commercial trucks, and refrigeration and air-conditioning equipment. In November 2012,
the company formed a joint venture, Advanced Atomization Technologies LLC, with GE aviation to develop and manufacture
commercial aircraft engine fuel nozzles.
For the quarter ended Dec. 31, Parker Hannifin reported earnings of $253.3 million, or $1.66 a share, up from $181
million, or $1.19 a share, a year earlier. Excluding aviation and asset write-downs and the gain from its joint venture
with GE Aviation, adjusted earnings were $1.24 a share.
Revenue climbed 13% to $3.11 billion as orders rose 5%.
Analysts polled by Thomson Reuters projected earnings of $1.23 a share on revenue of $3.15 billion.
Gross margin widened to 22.1% from 21%.
In the industrial North America segment, sales increased to $1.33 billion from $1.32 billion, while industrial
international segment sales increased 4.7% to $1.28 billion.
Shares closed Tuesday at $126.82 and were inactive premarket. The stock is up 36% in the past 12 months.
Write to Everdeen Mason at firstname.lastname@example.org
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