Parker Reports First Quarter
Parker Hannifin reported record first quarter sales and all time records for income from continuing operations and earnings per share.
For the first quarter of fiscal-year 2007, sales were $2.6 billion, up 20.7 percent, as compared to sales of $2.1 billion during the same period last year. Income from continuing operations was $210.6 million, an increase of 46.4 percent from the $143.8 million posted in the same period last year. Earnings per diluted share from continuing operations were $1.75, an all time quarterly record, versus the $1.19 reported in the same period a year ago. Cash flow from operations was $114.5 million after discretionary contributions of $111.0 million to the company's employee pension funds. Total segment operating margin was 14.9 percent.
"Clearly, our current results are demonstrating that Parker's Win Strategy is working," said Chairman and CEO Don Washkewicz. "Our employees around the world have fundamentally changed the company through their continued dedication and hard work. Our focus on premier customer service, financial performance, and profitable growth continues to deliver powerful results for Parker shareholders."
First Quarter Segment Results
In the North American Industrial segment, first quarter operating income improved 11.7 percent over the prior year to $153.1 million, on sales of $1.0 billion.
In the International Industrial segment, first quarter operating income increased 58.5 percent over the prior year to $127.5 million, on sales of $877.7 million.
In the Aerospace segment, first quarter operating income increased 25.3 percent over the prior year to $68.6 million, on sales of $402.4 million.
In the Climate & Industrial Controls segment, first quarter operating income increased 65.6 percent over the prior year to $30.8 million, on sales of $270.7 million.
"The 14.9 percent operating margin we produced this quarter is right at our corporate goal, and is a level we have not seen in almost ten years," said Washkewicz. "On a year over year basis, the Climate & Industrial Controls and the Industrial International segments improved their margins substantially, while the North America Industrial and Aerospace segments also improved on what were already very strong performances. We attribute our margin improvement to the relentless global execution of our Win Strategy."
Washkewicz also noted strong sales in Europe and Asia coupled with solid growth in North America. "We continue to grow the company at a double digit rate through our proven mix of globalization, organic growth and strategic acquisitions," said Washkewicz. "We generated organic growth of over eight percent this quarter. Customer service, innovative products, system solutions and our global network of thousands of distribution partners continue to be the drivers of our successful revenue growth."
The company completed two strategic acquisitions during the quarter, Acofab, a leading European supplier of EMI shielding and thermal management products, and Acal Air Conditioning and Refrigeration, a global sales and service organization.
"Our cash flow from operations remained strong, enabling us to make discretionary contributions of $111.0 million to our employees' pension funds," Washkewicz continued. "Cash was also used to repurchase $195.7 million of stock during the quarter."
The company raised its annual earnings guidance for fiscal year 2007 to a range of $6.05 to $6.45 per diluted share.
"Ultimately, it is our ability to partner with our customers to increase their productivity and profitability, in hundreds of markets and thousands of applications, that bodes well for our continued success," said Washkewicz.
Source: Parker Hannifin Corp