Parker Hannifin buoyed by rebound in orders

Cleveland, Ohio – Parker Hannifin Corp. has reported an 8% year-on-year increase in net income, to $210.2 million (€193.0 million) for the first quarter (to 30 Sept) of its 2017 fiscal year, on sales of $2.87 billion – 4.5% lower the prior-year first quarter.

“This was another solid quarter for Parker,” chairman and CEO Tom Williams declared on 21 Oct. “Despite a decline in sales, we were able to deliver strong decremental marginal return on sales and segment operating margins of 15.0%, reflecting improved performance in the Industrial segment.”

Williams was also cheered by quarterly order rates, which he said “turned positive for the first time since the December 2014 quarter, reinforcing our previous view that we are progressing towards stabilisation in many of our key end markets.”

At Parker’s Diversified Industrial Segment: first quarter sales in North America fell 9 percent to $1.2 billion, while operating income fell by around 6% to $200.6 million. This compared to a 2-percent dip in sales to $1.0 billion and a 6% rise in operating income to $137.2 million for its “international” business.

Orders at the Diversified Industrial Segment fell 4% in in North America but increased 3% overall outside of the region.

In the Aerospace Systems Segment, first quarter sales increased 3% to $561.2 million, and operating income was almost level with the same period a year ago at $73.3 million. Orders increased 14% on a rolling 12-month average basis.

With annual sales of $11 billion in fiscal year 2016, Parker Hannifin is a manufacturer of motion and control technologies and systems for a wide variety of mobile, industrial and aerospace markets.

This year, Parker Hannifin was eighth in ERJ’s annual ranking, by sales, of global non-tire rubber part manufacturers.