Parker Hannifin (PH), which manufactures motion and control technologies for industrial and aerospace customers, is soaring out of the recession. For the first quarter of 2011, Parker Hannifin revenue rose 24 percent to $3.24 billion. Net income for the quarter hit a record high $281.6 million, or $1.68 per share, up 82 percent from the same period last year, when net income was $154.4 million, or $0.94 per share.
"All segments reported a double-digit increase in sales and order levels. Total organic sales increased 21 percent in the quarter with acquisitions contributing 1 percent and currency contributing 2 percent," Chairman, President and CEO Don Washkewicz says in an earnings statement.
Not only is the company paying dividends, but it's increasing the amount of dividends it's paying. The company raised its quarterly dividend by 16 percent to 37 cents per share from 32 cents.
Standard and Poor's analyst John Sico has described the company as "a global leader in the manufacture of motion-control products serving industrial and aerospace markets" with "a modest financial risk profile which is characterized by its conservative financial policy."
Looking abroad
Parker Hannifin, meanwhile, is expanding. It recently bought for an undisclosed sum SSD Korea, a motion technology company. Asia figures big in the company’s future.
"Parker sees significant opportunities for growth in the Asia Pacific region and the acquisition of SSD Korea will help extend our channel and technical capabilities in local markets here," Michael Chung, President of Parker's Asia Pacific Group, says in a statement.
KeyBanc Capital Markets and Deutsche Bank both upgraded the stock to buy from hold. Zacks Investment Research maintains a neutral rating on the company for the long term but has assigned a short-term strong buy recommendation for the next three months.
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