) reported earnings per share of $2.01 per share in the third
quarter of fiscal 2012, compared to $1.68 in the year-ago quarter,
easily beating the Zacks Consensus Estimate of $1.72.
Parker-Hannifin posted sales of $3.4 billion, up 4.7% from the
year-ago quarter. Organic sales growth came in at 6% driven by
double-digit growth in the Industrial segment in North America.
However, currency translation adversely impacted sales by 1% in the
quarter. Orders increased 2% year over year.
On a segment basis, Revenues from the Industrial segment in
North America increased by 11.6% to $1.3 billion. Industrial
International segment declined by 0.5% year over year to $1.3
Aerospace revenue increased by 7.7% year over year to $542.8
million. Climate and Industrial Controls segment revenues declined
by 6.0% to $248.7 million.
Orders increased by 7% in Industrial North America segment, 1%
in Industrial International segment, increased 4% in the Aerospace
segment but declined 6% in Climate and Industrial Controls
Income and Expenses
Net income for the quarter was $312.7 million, an increase of
11.0% year over year. Total segment operating margin reached a
quarterly record of 15.1%, up from 14.2% in the previous quarter,
propelled by strong operating margin in Industrial North
SG&A expense was $377.5 million in the quarter compared with
$375.0 million in the third quarter of fiscal 2012.
Balance Sheet and Cash Flow
Cash and cash equivalents were $773.5 million at the end of the
third quarter, compared to $1,107.9 million at the end of the
year-ago quarter. Long-term debt came in at $1.5 billion, down from
$1.7 billion in the previous quarter.
The company generated cash flow from operations of $1,006.5
million in the first nine months of fiscal 2012 compared with cash
flow from operations of $799.9 million in the year-ago period.
Driven by strong results in the first nine months of fiscal
2012, Parker-Hannifin increased its fiscal 2012 earnings per share
guidance in the range of $7.30 - $7.50 from $6.90 - $7.30. The
company adjusted its guidance based on the prevailing business
Parker-Hannifin Corporation is a leading worldwide full-line
diversified manufacturer of motion and control technologies and
systems, including fluid power systems, electromechanical controls
and related components. In addition to motion and control products,
the company is also a leading worldwide producer of fluid
purification, fluid and fuel control, process instrumentation, air
conditioning, refrigeration, electromagnetic shielding and thermal
management products and systems.
The company continues to build a robust financial position,
maintaining a strong cash flow generation for the company.
We continue to maintain a Neutral recommendation on
Parker-Hannifin for the long term. The company has a Zacks #2 Rank
which translates into a short-term rating of Buy.
PARKER HANNIFIN (
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