Parker Hannifin profit beats; raises forecast

By IBTimes Staff Reporter | January 19 2010 11:40 AM

Parker Hannifin Corp , a maker of motion control technology for manufacturing and aerospace, reported a smaller-than-expected drop in quarterly profit on Tuesday, and said its restructuring supported profits during what is typically its weakest quarter.

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Parker also said sales and orders increased sequentially and raised its full-year earnings forecast, citing signs of an emerging recovery.

Net earnings fell 33 percent to $104.6 million, or 64 cents per share, in the second quarter that ended December 31, from $155.4 million, or 96 cents per share, a year earlier.

Analysts on average expected a profit of 35 cents per share, according to Thomson Reuters I/B/E/S.

Revenue fell 12 percent to $2.35 billion, above Wall Street forecasts of $2.25 billion.

Parker may be one of the first industrial companies to recover along with the U.S. and global economies because it serves early-cycle markets, such as construction equipment, truck and auto industries.

It said it expects fiscal 2010 earnings from continuing operations in a range of $2.40 to $2.80 per share, which is above Wall Street's estimate of $2.02 per share.

(Reporting by Nick Zieminski; Editing by Lisa Von Ahn and Maureen Bavdek)