Parker Hannifin Fiscal Third-Quarter Sales Up 23.9%

Parker Hannifin Corp. (NYSE: PH), Cleveland, OH, manufacturer of motion and control technologies, reported sales for the fiscal 2011 third quarter ended March 31, 2011, were $3.2 billion, up 23.9 percent from the same quarter a year ago. Profit was at $281.6 million.

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"Our third quarter performance reflects the continued strength that we see across our end markets and regions and our ability to leverage that strength into higher operating margins and record quarterly earnings per share," said CEO and President Don Washkewicz. "Customer orders also increased significantly in the quarter."

All segments reported a double-digit increase in sales and order levels. Organic sales increased 21 percent in the quarter with acquisitions contributing 1 percent and currency contributing 2 percent. Margin performance was also positive as total segment operating margin was a third quarter record of 14.8 percent, led by Industrial North America segment margin of 16.1 percent and Industrial International segment margin of 15.5 percent.

In the Industrial North America segment, third-quarter sales increased 23 percent to $1.2 billion, and operating income was $189.5 million compared with $133.6 million in the same period a year ago.

In the Industrial International segment, third-quarter sales increased 29.9 percent to $1.3 billion, and operating income was $199.8 million compared with $109.3 million in the same period a year ago.

In the Aerospace segment, third-quarter sales increased 12.1 percent to $503.8 million, and operating income was $69.0 million compared with $49.8 million in the same period a year ago.

In the Climate and Industrial Controls segment, third-quarter sales increased 24.9 percent to $264.5 million, and operating income was $22.6 million compared with $16.3 million in the same period a year ago.

Orders
Parker reported an increase of 24 percent in orders for the quarter ended March 31, 2011, compared with the same quarter a year ago. The company reported the following orders by operating segment:

• Orders increased 20 percent in the Industrial North America segment, compared with the same quarter a year ago.
• Orders increased 22 percent in the Industrial International segment, compared with the same quarter a year ago.
• Orders increased 44 percent in the Aerospace segment on a rolling 12-month average basis.
• Orders increased 14 percent in the Climate and Industrial Controls segment, compared with the same quarter a year ago.