CLEVELAND, March 19 /PRNewswire/ -- On the heels of a broad-based decline
in North American industrial activity, including recent sharp drops in the
semiconductor and telecommunications markets, Parker Hannifin Corporation
(NYSE: PH) today issued revised earnings projections for its fiscal third
quarter ending March 30, as well as for the fiscal year.
(Photo: http://www.newscom.com/cgi-bin/prnh/19990816/PHLOGO )
The company said it expects quarterly earnings to range from $0.70 to
$.80 per diluted share without unusual or extraordinary items, which
include a charge of $0.03 per share for the early retirement of debt
completed in February.
Results for the fiscal year ending June 30 are expected to range from
$3.00 to $3.25 per diluted share, excluding extraordinary items.
Parker said it considers these ranges prudent given continued economic
uncertainty. Recent declines observed in the company's North American
industrial orders suggest that markets for capital goods will remain soft
through the rest of the calendar year. The company noted that strong demand in
its aerospace segment and growth in its international-industrial markets
should partially offset the North American manufacturing recession.
In addition to ongoing restructuring activities, Parker said it is placing
greater emphasis on immediate actions to address the domestic downturn,
including reductions in both inventories and workforce in the businesses
affected. While these adjustments will adversely affect near-term operating
margins, they also will generate higher cash flows and position the company
for stronger performance on the upside of the cycle.
In addition to providing earnings estimates, the company makes a monthly
disclosure of orders several business days after the conclusion of each month.
This information is available on the company's investor information web site,
at www.phstock.com .
With annual sales of $6 billion, Parker Hannifin is the world's leading
diversified manufacturer of motion and control technologies and systems,
providing precision-engineered solutions for a wide variety of commercial,
mobile, industrial and aerospace markets. The company employs more than 45,000
people in 46 countries around the world. For more information, visit the
company's web site at www.parker.com , or its investor information site at
Forward-looking statements contained in this and other written and oral
reports are made based on known events and circumstances at the time of
release, and as such, are subject in the future to unforeseen uncertainties
and risks. All statements regarding future performance, earnings projections,
events or developments are forward-looking statements. It is possible that the
company's future performance and earnings projections may differ materially
from current expectations, depending on economic conditions in North American
industrial markets and aerospace aftermarket, the company's ability to achieve
anticipated benefits associated with announced inventory and workforce
reductions. Among the other factors which may affect future performance are:
changes in business relationships with and purchases by or from major
customers or suppliers, including delays or cancellations in shipments;
competitive market conditions and resulting effects on sales and pricing;
increases in raw-material costs that cannot be recovered in product pricing;
and global economic factors, including currency exchange rates, difficulties
entering new markets and general economic conditions such as interest rates.
In each quarterly earnings report, the company intends to provide a range
stating expected earnings per share for the succeeding quarter and full fiscal
year, reflecting these ranges as estimates of diluted earnings per share
before unusual items. The company makes these statements as of the date of
this disclosure, and while it undertakes no obligation to update them,
reserves the right to update its earnings projections for any reason during
the quarter, including the occurrence of material events.
SOURCE Parker Hannifin Corporation
CONTACT: Media, Lorrie Paul Crum, VP - Corp. Communications,
216-896-2750, or firstname.lastname@example.org, or Financial Analysts, Timothy K. Pistell,
Treasurer, 216-896-2130, or email@example.com, both of Parker Hannifin