Parker Hannifin, Cleveland, OH, reported sales of $2.7 billion for fiscal 2009 second quarter ending Dec. 31, 2008, a decline of 5% from the same quarter a year ago. Profit declined 26.7% to $155.4 million.
"Current quarter results reflect the fact that the global recession has deepened and widened in recent months and creates some uncertainty for the remainder of our fiscal year and throughout calendar 2009," said Don Washkewicz, president and CEO.
Segment Results In the Industrial North America segment, second-quarter sales increased slightly to $993 million, and operating income declined 24% to $107.6 million, compared with the same period a year ago.
In the Industrial International segment, second-quarter sales declined 11.5% to $1 billion, and operating income declined 34.3% to $115.1 million.
Aerospace segment sales increased 10% to $473.7 million, and operating income increased 34.2% to $69.7 million.
In the Climate & Industrial Controls segment, second-quarter sales were $179.2 million, a decline of 21.8%. The segment recorded an operating loss of $12.8 million, compared with an operating profit of $5.4 million in the same period a year ago.
Orders In addition to financial results, Parker also reported a decline of 20% in total orders for the quarter ending Dec. 31, 2008, compared with the same quarter a year ago.
Orders declined 18% in the Industrial North America segment, compared with the same quarter a year ago.
In the Industrial International segment, orders declined 28%, compared with the same quarter a year ago.
Orders increased 2% in the Aerospace segment on a rolling 12 month average basis.
Orders declined 28% in the Climate and Industrial Controls segment, compared with the same quarter a year ago.
Outlook "While the outlook holds many challenges, Parker has a seasoned management team that has experience managing through a downturn," Washkewicz said. "Workforce and expense reductions have been implemented throughout the company and contingency plans are in place should further actions become necessary. In short, we are prepared to adjust our costs appropriately to reflect changing demand levels. At the same time, we will stay vigilantly focused on long-term growth and are confident that we will emerge in an even stronger position as demand in our end markets improves."