Parker Hannifin Corporation’s (PH) RunWise Advanced Series Hybrid Drive was granted acknowledgement by the United States Environmental Protection Agency (EPA) to be included in the list of technologies, which decreased emissions from heavy-duty diesel engines. The inclusion is a part of EPA’s National Clean Diesel Campaign’s Emerging Technologies program, which encourages development of these technologies through provision of financial support.
With its efficiency to decrease fuel consumption and emissions by about 50% as per the type of usage, Parker’s RunWise Advanced Series Hybrid Drive is the lone drivetrain technology to be included on EPA’s list. The Hybrid Drive is also capable of recovering about 70% of energy that is lost at the time of applying brakes and use it to power the vehicle.
The technology has been applied on reject vehicles in communities in South Florida. The new system is also being considered in cities across South Florida. The Cities of Hialeah, Miami and Miami Dade County have bought eleven trucks in total.
We believe Parker Hannifinis a high-quality company that is showing good execution through its cost-saving efforts. Although Parker Hannifinstands to benefit from any recovery in global manufacturing activity, the company’s increased scale in its international business as well as its meaningful aerospace presence increases its late-cycle exposure relative to the past economic cycles.
However, the company’s domestic and foreign operations are subject to significant competitive pressures. To compete successfully, the company’s Industrial Segment and Climate & Industrial Controls Segment must excel in terms of product quality and innovation, customer service, manufacturing and distribution capability and price competitiveness. Meanwhile, the Aerospace Segment must excel on the basis of technological and engineering capability, quality, delivery and service, and price competitiveness.
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 was incorporated in Ohio in 1938. Major competitors of Parker are Eaton Corporation (ETN) and Honeywell International Inc. (HON).
We currently maintain our Neutral rating on Parker Hannifinfor the long term, with a Zacks #1 Rank (short-term Strong Buy recommendation) over the next one-to-three months.
EATON CORP (ETN): Free Stock Analysis Report
HONEYWELL INTL (HON): Free Stock Analysis Report
PARKER HANNIFIN (PH): Free Stock Analysis Report
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