) reported its second-quarter of fiscal 2013 earnings results
before the market opened today. Earnings per share were $1.19 in
the reported quarter, 6.3% above the Zacks Consensus Estimate of
$1.12. However, earnings for the quarter declined 23.7% from
$1.56 in the year ago quarter.
Total revenue in the second quarter declined 1.3% year over
year to $3.1 billion, down from $3.11 billion in the prior-year
quarter. Weak international markets and not very good returns
from the American market continued to affect revenue in the
The company reported a revenue increase in two of its three
Parker's Industrial Salessegment comprises two sub segments -
Industrial North America
Industrial International segment. Industrial North
segment sales inched up 1.2% year over year to $1.2 billion.
segment sales were down by 4.1% to $1.16 billion. The decline in
industrial sales (contributed 76.6% of revenues for the fiscal
year 2012) was attributable to recessionary conditions in Europe,
moderating growth in Asia, negative currency translations and
lower organic sales.
Further, Parker witnessed continued declined in orders in its
Industrial sales segment, which was partially offset by the other
two segments. Cancellations and rescheduling of orders in the
reported quarter affected the segment.
However, revenues in the
segment grew 6.5% year over year to
$528 million. In addition, overall orders also grew 14% for the
Revenues in the
Climate and Industrial Controls
decreased 18.3% year over year to $170.2 million. The segment
also witnessed a 1% decline in orders for the reported
Income & Expenses
Net income was $181.1 million compared with $242.3 million in
the prior-year quarter. Selling, general and administrative
expenses were $381.1 million compared with $368.7 million.
For the first half of fiscal 2013, cash and cash equivalents
were $497.6 million with long-term debt of $1.5 billion and a
debt to capitalization ratio of 22.1%. Further, net cash from
operating activities declined 38.4% year over year to $347.3
million due to higher working capital requirements. Capital
expenditures, year to date were $140 million.
The company reiterated its guidance for earnings from
continuing operations in the range of $6.15 to $6.75 per diluted
Parker-Hannifin Corporation is a leading diversified
manufacturer of motion and control technologies and systems,
including fluid power systems, electromechanical controls and
Parker's shares carry a Zacks Rank #3 (Hold), so it may not be
the ideal investment right now. However, you could consider these
Zacks Rank #1 stocks which are Parker's peer group -
Altra Holding Inc.
Metso Cp. ADS
) that are expected to beat estimates when they report later this
ALTRA HOLDINGS (AIMC): Free Stock Analysis
METSO CORP -ADR (MXCYY): Free Stock Analysis
PARKER HANNIFIN (PH): Free Stock Analysis
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