Parker Hannifin 1Q Profit Down 71%; But Lifts Full-Year View
DOW JONES NEWSWIRES
Parker Hannifin Corp.'s (PH) fiscal first-quarter profit slid 71% as orders
slumped and revenue fell across all of the hydraulic equipment maker's segments.
But the company also raised its full-year target for earnings from continuing
operations 30 cents to $1.55 to $2.05 a share.
Chairman and Chief Executive Don Washkewicz said some markets the company
served have flattened out, while others are beginning to show modest sequential
improvement.
Shares jumped 4.2% to $57.60 in premarket trading. The stock through Monday
was up 30% this year.
Parker Hannifin has been cutting costs to counter a sharp decline in sales
across most business lines, which include components for hydraulic and pneumatic
gear, aircraft parts and refrigeration and air conditioning equipment.
For the quarter ended Sept. 30, Parker Hannifin reported earnings of $74
million, or 45 cents a share, down from $251.8 million, or $1.50 a share, a year
earlier. Revenue slid 27% to $2.24 billion, as sales fell by double-digits
across all four segments. The largest decline was at the industrial
international segment, which was down 31%.
Analysts polled by Thomson Reuters expected per-share earnings of 17 cents on
revenue of $2.17 billion.
Gross margin declined to 19.5% from 23.7%.
Orders fell 25%, with the largest decline in its industrial North America
segment.
-By John Kell, Dow Jones Newswires; 212-416-2480; john.kell@dowjones.com
(END) Dow Jones Newswires
10-20-090843ET
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