Parker Posts Fiscal Second Quarter Results

net income of $55.8 million, or 47 cents per diluted share on sales of $1.59 billion in the same period last year. The current-quarter results include 47 cents per diluted share related to the operations and sale of the company's Wynn Oil specialty chemicals business, which was divested on December 31, 2004, and is now reflected on the company's financial statements as discontinued operations.

The company again reported strong cash from operations in the first half of fiscal 2005 of $352.2 million, or 9.1 percent of sales, compared with $371.2 million, or 11.8 percent of sales in the prior year.

"We are very pleased with our second quarter results, particularly with our 22 percent sales growth, doubling net income from continuing operations, and strong cash flow," said Parker Chairman and CEO Don Washkewicz. "We're still in the early stages of a broad-based, worldwide industrial recovery and we're continuing to see positive results in nearly all of the end markets we serve, notably the recent uptick in Aerospace."

Second Quarter Segment Results

In the North American Industrial segment, operating income improved 105 percent to $99.9 million on sales of $819.2 million. International Industrial units increased operating income 108 percent to $61.6 million on sales of $583.2 million.

In the company's Climate & Industrial Controls segment, second-quarter sales increased 22 percent to $176.5 million and operating income decreased 15 percent to $8.9 million. The decline in operating income is primarily the result of a slowdown in production schedules in the automotive market.

Aerospace reported an increase in operating income of 42 percent to $49.5 million on sales of $327.0 million.

In the "Other" segment, comprised of Astron metal buildings, operating income was $4.7 million on sales of $37.0 million.

Year-to-Date Results

For the first six months of fiscal 2005, the company's net income increased 170 percent to $303.9 million, or $2.52 per diluted share ($2.03 from continuing operations) on sales of $3.86 billion. Net income for the first six months of last year was $112.5 million, or 95 cents per diluted share on sales of $3.16 billion.

Outlook

The company estimates earnings per share for the third quarter of fiscal year 2005 to be between $1.10 and $1.30 per diluted share. Fiscal 2005 full year earnings are estimated to be between $4.75 and $5.15 per diluted share, which includes 49 cents per diluted share from discontinued operations.

"Our Win Strategy continues to drive sales and margin growth and we're staying focused on executing those initiatives," adds Washkewicz. "The results we've seen in the first half of the year, combined with the continued positive trends in monthly order rates, give us confidence that we will deliver our projected results for the remainder of the year."