Parker Hannifin Profit Rises as Orders Turn Positive
October 21 2016 - 8:08AM
Dow Jones News
By Imani Moise
Parker Hannifin Corp. (PH) reported a 7.8% rise in profit as the
company saw an uptick in orders for the first time in years.
The motion and control technology manufacturer said its orders
increased 2% company-wide, while its aerospace segment orders
jumped 14%, and international business rose 3%. Orders for the
company's North American industrial business slipped 4%.
"Quarterly order rates turned positive for the first time since
the December 2014 quarter, reinforcing our previous view that we
are progressing towards stabilization in many of our key end
markets," Chief Executive Tom Williams said.
The Cleveland-based company supplies industrial giants including
Caterpillar Inc. (CAT) and Boeing Co. (BA) Like many manufacturers,
Parker has contended with lower business investment and adverse
exchange rates that make its exports less competitive, and the
company is in the midst of a restructuring effort meant to support
earnings as customer orders sag. Caterpillar, for its part, has
recently said it doesn't see a rebound this year for its own
equipment.
Parker Hannifin on Friday reported a profit of $210.1 million,
or $1.55 a share, up from $195 million, or $1.41, a year earlier.
Excluding items such as business realignment charges, earnings rose
to $1.61 a share from $1.52.
Sales dropped 4.4% to $2.74 billion.
Analysts polled by Thomson Reuters had forecast earnings of
$1.57 a share on $2.78 billion in revenue.
Gross margin edged down to 23.2% from 23.3%.
Shares closed at $122.80 and were inactive premarket. The stock
has risen 9.4% in the past three months.
Write to Imani Moise at imani.moise@wsj.com
(END) Dow Jones Newswires
October 21, 2016 08:53 ET (12:53 GMT)
Copyright (c) 2016 Dow Jones & Company, Inc.
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