Parker Hannifin Profit Rises as Orders Turn Positive

   By Imani Moise 
 

Parker Hannifin Corp. (PH) reported a 7.8% rise in profit as the company saw an uptick in orders for the first time in years.

The motion and control technology manufacturer said its orders increased 2% company-wide, while its aerospace segment orders jumped 14%, and international business rose 3%. Orders for the company's North American industrial business slipped 4%.

"Quarterly order rates turned positive for the first time since the December 2014 quarter, reinforcing our previous view that we are progressing towards stabilization in many of our key end markets," Chief Executive Tom Williams said.

The Cleveland-based company supplies industrial giants including Caterpillar Inc. (CAT) and Boeing Co. (BA) Like many manufacturers, Parker has contended with lower business investment and adverse exchange rates that make its exports less competitive, and the company is in the midst of a restructuring effort meant to support earnings as customer orders sag. Caterpillar, for its part, has recently said it doesn't see a rebound this year for its own equipment.

Parker Hannifin on Friday reported a profit of $210.1 million, or $1.55 a share, up from $195 million, or $1.41, a year earlier. Excluding items such as business realignment charges, earnings rose to $1.61 a share from $1.52.

Sales dropped 4.4% to $2.74 billion.

Analysts polled by Thomson Reuters had forecast earnings of $1.57 a share on $2.78 billion in revenue.

Gross margin edged down to 23.2% from 23.3%.

Shares closed at $122.80 and were inactive premarket. The stock has risen 9.4% in the past three months.

Write to Imani Moise at [e-mail]

(END) Dow Jones Newswires

October 21, 2016 08:53 ET (12:53 GMT)

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