Parker Hannifin Corp. (NYSE: PH), Cleveland, OH, manufacturer of motion and control technologies, reported sales for the fiscal 2010 first quarter ended Sept. 30, 2009, were $2.2 billion, a decline of 27% from a year ago. Profit fell 71% to $73.5 million.
Organic sales fell 28%. Acquisitions contributed 2% to sales.
"Our results this quarter continue to reflect the impact of the global recession on our business, coupled with the fact that we are comparing current results with the record performance we achieved in the first quarter a year ago," said CEO and President Don Washkewicz. "We were pleased to note that orders, although down year-over-year, have steadily improved sequentially from the levels we witnessed in the June quarter, and our actions to reduce costs have begun to have a positive effect on margins."
Segment Results
In the Industrial North America segment, first quarter sales declined 29.3% to $783.1 million, and operating income declined 52.5% to $76.2 million, compared with the same period a year ago.
In the Industrial International segment, first quarter sales declined 30.5% to $850.3 million, and operating income declined 69.5% to $61.8 million compared with the same period a year ago.
In the Aerospace segment, first quarter sales decreased 12.9% to $416.9 million, and operating income declined 22% to $53.1 million, compared with the same period a year ago.
In the Climate & Industrial Controls segment, first quarter sales declined 27% to $187 million, and segment operating income declined 32.3% to $10.5 million, compared with the same period a year ago.
Orders
Parker also reported a decline of 25% in total orders for the quarter ending Sept. 30, 2009, compared with the same quarter a year ago. Parker reported the following orders by operating segment:
- Orders declined 27% in the Industrial North America segment, compared with the same quarter a year ago.
- Orders declined 25% in the Industrial International segment, compared with a year ago.
- Orders declined 23% in the Aerospace segment on a rolling 12-month average basis.
- Orders declined 17% in the Climate and Industrial Controls segment, compared with the same quarter a year ago.
Outlook
Washkewicz said: "The major markets we serve present a mixed picture in terms of customer demand with some markets flattening out while others are beginning to show modest sequential improvement. While we do not believe we will see material changes in trends for the remainder of the calendar year 2009, we are cautiously optimistic that we are at the bottom of the cycle."
Parker Hannifin had annual sales of more than $10 billion in fiscal year 2009.
