Parker Declines Most Since June as Europe Damps Forecast
Stock Chart for Parker Hannifin Corp (PH)
Parker Hannifin Corp. (PH) fell the most in seven weeks after the maker of fluid power systems and air- conditioning products forecast annual earnings lower than some analysts’ estimates amid a demand slump in Europe.
Per-share profit for its fiscal year ending June 30 is expected to be $7.10 to $7.90, Cleveland-based Parker said in a statement today. The average of estimates compiled by Bloomberg was for $7.89. The company said its forecast includes increased pension expenses of 35 cents a share.
“We’ve seen some softness in Europe in the latter part of this year,” Treasurer Pamela Huggins said on a conference call on fiscal fourth-quarter earnings. “As we head into next year, we’re going to continue to see that in the first half,” with some growth after that.
Demand in Europe, the main market for Parker’s Industrial International unit, has declined because of a debt crisis. The euro area economy this year is expected to contract 0.4 percent, according to data compiled by Bloomberg.
Parker in a slide presentation forecast annual sales for the international unit ranging from a 2 percent decline to a 2 percent gain, while projecting an increase of 5.1 percent to 9.1 percent for the North American industrial unit.
During the fourth quarter, the international unit’s revenue fell 10 percent to $1.24 billion from a year earlier. Parker reported earnings per share of $1.96 for the quarter, beating the $1.91 average of 14 estimates.
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