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Parker Hannifin Sales Grow 26.5% in Fiscal 2011 First Quarter

Demand levels continued to improve across many markets, CEO says.

Parker Hannifin Corp. (NYSE: PH), Cleveland, OH, manufacturer of motion and control technologies, reported results for the fiscal 2011 first quarter ending Sept. 30, 2010. Fiscal 2011 first quarter sales were $2.8 billion, an increase of 26.5 percent from the same quarter a year ago. Profit was $249 million compared with $74 million in the first quarter of fiscal 2010.

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"Demand levels continued to improve across many markets as reflected in a significant increase in sales for the first quarter," said CEO and President Don Washkewicz. "Sales improved in every segment, with total sales increasing 27 percent organically, while foreign currency translation negatively impacted sales by 1 percent. Order rates also increased in all segments.

"We are particularly pleased with our ability to leverage improved top line performance into record level operating margins and earnings. Our total segment operating margin performance was at an all-time record level of 15.5 percent, led by record Industrial North America segment margins of 17.8 percent and record Industrial International segment margins of 16.8 percent. We also continued to deliver strong operating cash flow, which gave us the flexibility to make a discretionary contribution to our pension plan."

  • In the Industrial North America segment, first-quarter sales increased 36 percent to $1.1 billion, and operating income was $189.4 million compared with $76.2 million in the same period a year ago.
  • In the Industrial International segment, first-quarter sales increased 28.5 percent to $1.1 billion, and operating income was $183.8 million compared with $61.8 million in the same period a year ago.
  • In the Aerospace segment, first-quarter sales increased 4.8 percent to $436.7 million, and operating income was $43.8 million compared with $53.1 million in the same period a year ago.
  • In the Climate and Industrial Controls segment, first-quarter sales increased 25.5 percent to $234.7 million, and operating income was $21.6 million compared with $10.5 million in the same period a year ago.

Parker reported an increase of 29 percent in total orders for the quarter ending Sept. 30, 2010, compared with the same quarter a year ago. The company reported the following orders by operating segment:

  • Orders increased 31 percent in the Industrial North America segment, compared with the same quarter a year ago.
  • Orders increased 34 percent in the Industrial International segment, compared with the same quarter a year ago.
  • Orders increased 16 percent in the Aerospace segment on a rolling 12-month average basis.
  • Orders increased 23 percent in the Climate and Industrial Controls segment, compared with the same quarter a year ago.

Parker Hannifin employs 55,000 people in 46 countries.

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