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Parker Hannifin Corporation, Cleveland, OH, reported $1.95 billion in fiscal first-quarter sales for the period ended Sept. 30, 2004, up from $1.59 billion in the same period the year before. Net income increased 134 percent to $132.8 million, compared with last year's quarterly net income of $56.7 million.
Parker's North American Industrial units posted first-quarter sales of $832.3 million, up 25 percent from last year. Operating income in the current quarter was $119.8 million, for an operating margin of 14.4 percent, compared with 6.4 percent last year.
The International Industrial businesses achieved first-quarter operating income of $66.5 million and an operating margin of 12.1 percent, compared with 7.4 percent last year. Sales increased 30 percent to $549 million, with acquisitions and currency translation contributing more than half of the increase.
Parker Aerospace sales increased 16 percent over the prior year to $331.1 million. First-quarter operating income improved to $51.3 million, for a 15.5-percent operating margin, compared with 13.2 percent a year ago.
The Climate & Industrial Controls business posted first-quarter operating income of $15.8 million on sales of $165.5 million, for an operating margin of 9.6 percent, compared with 11.2 percent last year.
In the "Other" unit, comprised of Wynn Specialty Chemicals and Astron metal buildings, quarterly operating income was $10 million on $69.3 million in sales, an operating margin of 14.4 percent, versus 10.1 percent a year ago.
The company generated $160 million in cash from operations during the quarter, or 8.2 percent of sales, compared with $144 million, or 9.1 percent of sales a year ago. "Our balance sheet remains strong and we will continue to invest in growth opportunities, including acquisitions that are expected to be accretive to earnings such as our recent announcement welcoming Sporlan Valve Company to the Parker family," said Parker CEO Don Washkewicz.
"Thanks to our employees executing our Win Strategy, Parker is winning on many fronts. Outside of North America, we achieved operating profitability exceeding 10 percent this quarter, and our acquisitions are doing very well," added Washkewicz. "We're rapidly improving our financial performance, while focusing on four areas of growth: (1) Growing our market share in Total Parker Systems; (2) Growing globally with our customers in emerging markets; (3) Adding strategic acquisitions that bring great technology to our motion and control portfolio; and (4) Cultivating innovation to accelerate internal growth."
"We're encouraged by continued strength in the global economy and improvements we've seen in most segments of our business, including industrial international and the up tick in aerospace aftermarket," said Washkewicz. "Our main concerns at this point in the recovery are inflationary pressures from oil and raw material shortages and the prospects for higher interest rates."