Parker Hannifin Corporation (PH) reported fiscal 2010 first quarter net income, which declined 71% to $73.5 million from $250.2 million in the first quarter of fiscal 2009. Earnings per diluted share declined 70% to 45 cents. This was higher than the Zacks Consensus Estimate of 17 cents.
Sales were $2.2 billion in the quarter, a decline of 27% from $3.1 billion in the first quarter a year ago.
In the Industrial North America segment, sales declined 29.3% to $783.1 million and operating income declined 52.5% to $76.2 million, compared with the same period a year ago. In the Industrial International segment, sales declined 30.5% to $850.3 million, and operating income declined 69.5% to $61.8 million compared with the same period a year ago. In the Aerospace segment, sales decreased 12.9% to $416.9 million and operating income declined 22.0% to $53.1 million, compared with the same period a year ago. In the Climate & Industrial Controls segment, sales declined 27.0% to $187.0 million and segment operating income declined 32.3% to $10.5 million, compared with the same period a year ago.
Orders declined 27% in the Industrial North America segment, compared with the same quarter a year ago. Orders declined 25% in the Industrial International segment compared with the same quarter a year ago. Orders declined 23% in the Aerospace segment on a rolling 12 month average basis. Orders declined 17% in the Climate and Industrial Controls segment, compared with the same quarter a year ago.
Cash flow from operations for the first quarter of fiscal 2010 was $260.1 million, or 11.6% of sales, compared with $307.3 million, or 10.0% of sales in the prior year period.
Cash and cash equivalents stood at $189.8 million with long-term debt at $1.8 billion and shareowners’ equity at $4.5 billion at the end of the quarter.
For fiscal 2010, the company has increased its guidance for earnings from continuing operations to the range of $1.55 to $2.05 per diluted share. The current Zacks Consensus Estimate stands at $1.65 per 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, health care and ultra-high-purity applications; besides static and dynamic sealing devices. This segment sells its products primarily to original equipment manufacturers (OEMs) and their replacement markets in various manufacturing and processing industries. The company’s Aerospace segment provides hydraulic, fuel and pneumatic systems and components used for commercial and military airframe and engine programs. Major competitors are Eaton Corporation (ETN) and Honeywell International Inc. (HON).
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