Parker Hannifin Lifts Full-year View As Q1 Profit Beats Estimates - Update

(RTTNews) - Fluid power systems manufacturer Parker Hannifin Corp. (PH) Friday reported a higher first-quarter profit, reflecting lower tax expenses. There was marginal increase in sales. Earnings per share topped analysts' expectations.

The firm also lifted its fiscal 2014 earnings guidance, citing a higher than anticipated earnings in the first quarter and a larger than expected gain related to GE Aviation joint venture.

Don Washkewicz, chairman, CEO and president of the company said, "Our order growth this quarter and near-term improvements in several key macroeconomic indicators support our revised guidance."

Parker reported a 5 percent increase in orders for the first quarter.

In the first quarter, net income attributable to shareholders increased to $244.32 million or $1.61 per share from $239.74 million or $1.57 per share in the previous year.

The company said its recent-quarter earnings included $0.06 per share in expenses associated with its restructuring initiatives. Excluding item, earnings totaled $1.67 per share.

On average, 11 analysts polled by Thomson Reuters expected the company to report profit per share of $1.48 for the quarter. Analysts' estimates typically exclude special items.

Income tax expenses were $79.77 million, lower than $96.11 million a year earlier.

Net sales for the quarter increased to $3.23 billion from $3.21 billion a year ago, while analysts' expected revenues of $3.26 billion.

For the fiscal year ending June 30, 2014, the company now expects earnings from continuing operations to be in the range of $7.78 to $8.38 per share, up from the prior guidance of $7.35 to $8.15 per share.

Parker noted that its outlook includes expenses of $100 million or $0.47 per share associated with its previously announced restructuring and an expected gain of $1.68 per share related to a joint venture agreement between Parker Aerospace and GE Aviation to be recorded in the second quarter.

Analysts expect the company to report fiscal year profit per share of $6.53.

PH closed Thursday's regular trading at $106.82 on the NYSE. In the pre-market activity, the shares are up 3.58 percent.