Parker Hannifin Corporation (PH) reported second quarter 2010 earnings per share of 64 cents, beating the Zacks Consensus Estimate of 34 cents. Its fiscal second-quarter profit fell to $104.5 million, or 64 cents a share, from $155.4 million, or 96 cents a share, in the year-ago quarter.
Fiscal 2010 second quarter revenues were $2.4 billion, an increase of 5.3% compared with the first quarter of fiscal 2010 and a decline of 12.4% from $2.7 billion in the second quarter in the year-ago period. Parker also reported a decline of 7% in total orders for the quarter ending Dec. 31, 2009, compared with the same quarter a year ago.
Orders declined 3% in the Industrial North America segment, compared with the same quarter a year ago. Orders were unchanged in the Industrial International segment, compared with the same quarter a year ago. Orders declined 27% in the Aerospace segment on a rolling 12-month average basis. Orders increased 6% in the Climate and Industrial Controls segment, compared with the same quarter a year ago.
In the Industrial North America segment, second quarter sales declined 14.7% to $847.2 million and operating income increased 6.3% to $114.4 million compared with the same period a year ago. In the Industrial International segment, second quarter sales declined 10.6% to $932.1 million, and operating income declined 28.2 % to $82.6 million compared with the same period a year ago.
In the Aerospace segment, second quarter sales declined 15.4% to $400.6 million, and operating income declined 41.1% to $41.0 million compared with the same period a year ago. In the Climate & Industrial Controls segment, second quarter sales declined 2.4% to $174.9 million, and operating income increased 147.9% to $6.1 million compared with the same period a year ago.
For fiscal 2010, the company has increased its guidance for earnings from continuing operations by 44% to be between $2.40 to $2.80 per diluted share.
Parker-Hannifin Corporation manufactures fluid power systems, electromechanical controls and related components. Its Industrial segment offers pneumatic and electromechanical components and systems; filters, systems, and instruments to monitor and remove contaminants from fuel, air, oil, water, and other liquids and gases; connectors which control, transmit, and contain fluid; hydraulic components and systems for builders and users of industrial and mobile machinery, and equipment; critical flow components for process instrumentation, healthcare, and ultra-high-purity applications; and static and dynamic sealing devices. Major competitors include Honeywell International Inc (HON) and Eaton Corporation (ETN).
We currently have a Neutral recommendation on PH.
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