6309 Monarch Park Place, Suite 203
Niwot, CO 80503, USA
Phone (303) 443-5060
Toll free (888) 742-5060
"We're in the final stages of our planned realignment activities," said Parker CEO Don Washkewicz. "Our cash flow was strong again this quarter, and working capital and capital expenditures are down materially from two years ago. We remain focused on our 'Win Strategy' initiatives to further enhance our prospects for future growth and profitability."
Working off of backlog, Parker Aerospace recorded an operating margin of 15.5 percent for the quarter, with a 4.5-percent decline in sales. The company noted stability in commercial aviation, but expects its aerospace unit to contend with margin pressure for the foreseeable future.
Both the North American and International Industrial units increased sales and operating income during the second quarter. With help from recent acquisitions and currency, sales were up 29 percent in the company's International Industrial businesses, and the operating margin was 6.0 percent. The North American Industrial margin was 4.1 percent, on a four-percent increase in sales.
In the "Other" segment, sales decreased seven percent after last year's divestiture of a non-core business, while the operating margin improved to 6.3 percent. Included in this segment is Climate and Industrial Controls, which posted higher sales and profits.
For the first six months of fiscal 2003, the company recorded net income of $98.5 million, or 84 cents per diluted share (90 cents before realignment charges and an investment write-down) on sales of $3.10 billion. Income is up 10 percent over last year's $89.6 million, or 77 cents per diluted share (88 cents excluding realignment costs and an investment write-down), earned on sales of $2.91 billion.
"Historically, our post-recession rebound has been very strong. When the industrial recession ends, we're confident the company will be positioned to resume more robust growth and margin improvement," said Washkewicz.
Excluding realignment costs, the company's earnings in the third quarter of fiscal year 2003 are expected to be between 55 and 65 cents per share, while earnings for the full year are expected to range from $2.10 to $2.30 per share.