Fluid power systems manufacturer Parker Hannifin Corp. (PH: Quote) reported Friday a profit for the second quarter that declined 25 percent from last year, reflecting lower organic sales volumes. However, both earnings per share and quarterly revenues topped analysts’ expectations. The company also reaffirmed its earnings forecast for the full-year 2013.
“We performed well in the second quarter considering continued economic weakness across all the regions we operate in,” Chairman, President and CEO Don Washkewicz said in a statement.
The Cleveland, Ohio-based company reported net income of $180.96 million or $1.19 per share for the second quarter, down from $240.77 million or $1.56 per share in the prior-year quarter.
On average, 13 analysts polled by Thomson Reuters expected the company to report earnings of $1.11 per share in the second quarter. Analysts’ estimates typically exclude special items.
Net sales for the quarter edged down 1.3 percent to $3.07 billion from $3.11 billion in the same quarter last year, and topped eleven Wall Street analysts’ consensus estimate of $2.93 billion.
Acquisitions contributed 4 percent to sales which was largely offset by a reduction in organic sales, particularly internationally.
Industrial North American business reported a 1.2 percent sales growth to $1.20 billion from last year, while the industrial international business generated $1.17 billion in sales, a 4.1 percent decline over last year.
Sales for the company’s aerospace business increased 6.5 percent to $528.66 million from the year-ago quarter, and climate & industrial controls business posted sales of $170.17 million, a decline of 18.3 percent from the prior-year quarter, reflecting the impact of a business divestiture.
Parker Hannifin reported a 2 percent drop in total orders for the second quarter, compared to the year-ago quarter.
“Although economic conditions may improve, we continued to take prudent actions to strengthen profitability and cash flow as we enter the second half of the year, including cost reduction initiatives and adjustments to planned capital expenditures,” Washkewicz added.
Washkewicz noted that the second half will be stronger than the first half following the natural, annual cycle of the company’s business.
Looking ahead to fiscal 2013, the company reaffirmed its earnings from continuing operations guidance in the range of $6.15 to $6.75 per share, which includes about $0.35 per share of expected year-over-year increase in domestic qualified pension expense. Street is currently looking for full-year 2013 earnings of $6.40 per share.
PH closed Thursday’s regular trading session at $91.36, up $1.36 on a volume of 2.33 million shares.
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by RTT Staff Writer
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