(By Mani) Parker Hannifin Corp. (NYSE: PH) reported better-than-expected results for the second quarter, though profit for the diversified manufacturer of motion and control technologies fell 25 percent from last year on lower organic sales and orders.
Shares of Cleveland, Ohio-based Parker Hannifin were up $2.07, or 2 percent, in the pre-market hours to $93.45. They closed Thursday's regular trading session at $91.36 on the NYSE.
Net income was $181.1 million, or $1.19 a share, compared with $242.3 million, or $1.56 a share, in the second quarter of fiscal 2012.
Quarterly sales fell 1 percent to $3.07 billion. Acquisitions contributed 4 percent to sales which was largely offset by a reduction in organic sales, particularly internationally.
Wall Street expected earnings of $1.11 a share on revenue of $2.93 billion, according to analysts polled by Thomson Reuters.
In Industrial North America, second quarter sales increased 1.2 percent to $1.2 billion, while sales decreased 4.1 percent at International unit to $1.17 billion
In Aerospace, second quarter sales increased 6.5 percent to $528.7 million, while sales at Climate and Industrial Controls fell 18.3 percent to $170.2 million.
Parker Hannifin reported a decrease of 2 percent in orders for the quarter ending De. 31, 2012, with the most decline in Aerospace unit followed by Industrial North America and International units.
Cash flow from operations for the first six months of fiscal 2013 was $347.3 million, or 5.5 percent of sales, compared with $563.4 million, or 8.9 percent of sales for the first six months of fiscal 2012.
For the fiscal year ending June 30, 2013, the company still sees earnings from continuing operations in the range of $6.15 to $6.75 a share. Street expects earnings of $6.40 a share.
The company said its second half of the fiscal year would be stronger than the first half due to the natural, annual cycle of its business.
Fiscal 2013 outlook includes an expected year-over-year increase in domestic qualified pension expense of about 35 cents a share due to accounting regulations which require the use of a lower discount rate based on current market conditions.