Parker reports 14 percent sales drop
Parker Hannifin Corporation reported fiscal 2016 second quarter sales were $2.71 billion, compared with $3.13 billion in the prior year quarter.
Sales decreased 14%, with 4% due to currency, and a 10% organic sales decline.
Net income was $183.1 million, compared with $267.3 million in the second quarter of fiscal 2015. Fiscal 2016 second quarter earnings per share were $1.33, compared with $1.80 in the prior year quarter.
“We have taken purposeful action in managing our cost structure to reflect challenging global market conditions,” said chairman and chief officer Tom Williams. “Continued weakness, stemming from natural resource related end markets such as oil and gas, construction, mining and agriculture, continues to impact sales and order rates. Our global teams have adapted quickly to these changes allowing us to deliver solid margin performance with decremental marginal returns of 17.2% on an adjusted basis. We are executing our previously announced restructuring actions and have made significant progress with Simplification initiatives to reduce complexity, increase speed, reduce costs and better serve our customers. We remain well positioned to weather the current downturn.”
Diversified Industrial Segment: North American second quarter sales decreased 16% to $1.2 billion and operating income was $153.6 million compared with $226.9 million in the same period a year ago. International second quarter sales decreased 16% to $1.0 billion, the majority of the decline in sales was the result of changes in foreign currency rates. International operating income was $95.4 million compared with $136.5 million in the same period a year ago.
Aerospace Systems Segment: Second quarter sales decreased 1% to $552.4 million, and operating income increased 22% to $81.8 million, compared with $66.8 million in the same period a year ago.
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