By Lisa Beilfuss
Parker-Hannifin Corp. said its profit in its latest quarter rose
18%, though its revenue declined thanks to lower orders and the
stronger dollar.
Shares dropped 3.5% to $120.50 during premarket trading and are
down 4% this year through Monday's close.
Parker trimmed its profit outlook for the year ending in June to
$7.55 to $7.75 a share, down from its earlier projection of $7.90
to $8.30 a share.
Earlier this year, the Cleveland-based industrial conglomerate
replaced its retiring chief executive with Thomas Williams, who had
been chief operating officer since 2006.
"Our third quarter order rates and unfavorable currency trends
have had a significant influence on our outlook for the fourth
quarter," he said, referring to a 4% decline in orders.
The century-old company, which supplies parts to Caterpillar
Inc. and Boeing Co., said it experienced significant currency
headwinds during the quarter. In its international business, where
a stronger U.S. dollar makes its products more expensive, sales
fell 15% to $1.15 billion. Meanwhile, North American sales in the
company's diversified industrial unit fell 1% to $1.44 billion.
Parker's aerospace systems segment, however, reported a 5% sales
increase to $572.4 million.
In all, Parker posted a profit of $285.5 million, or $2.02 a
share, up from $242.5 million, or $1.60 a share, a year earlier.
Excluding restructuring costs, earnings climbed $2.06 a share from
$1.88.
Revenue declined about 6% to $3.16 billion, mostly due to
changes in foreign-currency rates.
Analysts were looking for $1.99 a share in profit on $3.3
billion in revenue.
Write to Lisa Beilfuss at lisa.beilfuss@wsj.com
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