Parker Hannifin Corporation, the global leader in motion and control technologies, has reported results for the fiscal 2012 third quarter ended March 31, 2012. Fiscal 2012 third quarter sales were $3.4 billion, a third quarter record and an increase of 4.7% from $3.2 billion in the prior year quarter. Net income was an all-time quarterly record at $312.7 million, an increase of 11.0% compared with $281.6 million in the third quarter of fiscal 2011. Fiscal 2012 third quarter earnings per diluted share were an all-time quarterly record at $2.01, an increase of 19.6% compared with $1.68 in the prior year quarter. Cash flow from operations for the first nine months of fiscal 2012 was $1,006.5 million, or 10.3% of sales, compared with $799.9 million, or 9.0% of sales, for the first nine months of fiscal 2011.
"This quarter's results benefitted, in part, from the favorable resolution of prior year tax filings, however, all-time record quarterly earnings were largely achieved as a result of strong operating performance in North America," says Chairman, CEO and President, Don Washkewicz. "Our organic sales growth was 6%, led by a double-digit increase in the North America Industrial segment, while currency translation negatively affected sales by 1%. Internationally, results outpaced expectations for the quarter and market conditions remain stable. Total company segment operating margin remained strong and represented a third quarter record at 15.1%, primarily driven by record third quarter operating margins in the Industrial North America segment. Year-to-date, operating cash flow is very strong at 10.3% of sales and we continue to invest for growth including our recently completed acquisition of Snap-tite Incorporated to expand our presence in fluid power and process control markets."
Segment Results
In the Industrial North America segment, third quarter sales increased 11.6% to $1.3 billion, and operating income was $227.0 million compared with $189.5 million in the same period a year ago.
In the Industrial International segment, third quarter sales declined 0.5% to $1.3 billion, and operating income was $195.1 million compared with $199.8 million in the same period a year ago.
In the Aerospace segment, third quarter sales increased 7.7% to $542.8 million, and operating income was $65.9 million compared with $69.0 million in the same period a year ago.
In the Climate and Industrial Controls segment, third quarter sales declined 6.0% to $248.7 million, and operating income was $23.2 million compared with $22.6 million in the same period a year ago.
Orders
Parker reported an increase of 2% in orders for the quarter ending March 31, 2012, compared with the same quarter a year ago. The company reported the following orders by operating segment:
- Orders increased 7% in the Industrial North America segment, compared with the same quarter a year ago.
- Orders declined 1% in the Industrial International segment, compared with the same quarter a year ago.
- Orders increased 4% in the Aerospace segment on a rolling 12-month average basis.
- Orders declined 6% in the Climate and Industrial Controls segment, compared with the same quarter a year ago.
Outlook
For fiscal 2012, the company has increased its guidance for earnings from continuing operations to the range of $7.30 to $7.50 per diluted share.
Washkewicz adds, "Reflecting our strong outperformance relative to guidance, Parker is increasing our earnings outlook for the year. The company remains on pace to deliver an all-time record year in fiscal 2012."
