UPDATED Earnings Roundup: Parker Hannifin, Flowserve and Milacron

Industrial Distribution staff -- Industrial Distribution, 7/31/2008 6:23:00 AM

Three manufacturers, Parker Hannifin Corp., Flowserve Corp. and Milacron Inc., posted sales and earnings results.

Parker Hannifin
Sales rose 13.3 percent during fiscal 2008 for the power transmission products manufacturer, nearing $12.15 billion compared with $10.72 billion last year.
Net income for Cleveland-based Parker reached $949.5 million, up 14.4 percent compared with $830.1 million during fiscal 2007.
Fourth-quarter sales rose 16.4 percent to $3.35 billion, compared with $2.87 billion during the same period last year. Quarterly net income rose 16.3 percent to $252.6 million, compared with $217.2 million during the fourth quarter of 2007.
“Once again this year we achieved sales growth that exceeded our 10 percent annual goal, and reported record sales of more than $12 billion. Of the 13 percent growth this fiscal year, 5 percent was organic, 3 percent was from strategic acquisitions, and the remainder was from the effects of foreign currency exchange rates. Our sales growth also demonstrates the significant progress we have made in international operations, which helps mitigate the effects of regional economic cycles. … Significantly, Industrial International operating margins exceeded margins in our Industrial North America segment and completed the year as our most profitable operating segment,” chairman, president and CEO Don Washkewicz said. “Acquisitions continued to play a role in our growth strategy, as we strengthened our portfolio by adding 10 companies in fiscal 2008 with nearly $546 million in annualized revenues. We also invested $584 million to repurchase 7.9 million Parker common shares. We remain uniquely positioned to meet the needs of both the OEM and MRO segments in the markets we serve and expect to deliver another record year in fiscal 2009."

Flowserve
Second-quarter sales rose 24.4 percent for the flow control products manufacturer, reaching $1.16 billion compared with $930.7 million during the same period last year.
Net earnings soared 94.4 percent to $122.9 million for Dallas-based Flowserve, compared with $63.2 million during the second quarter of 2007.
Flowserve attributed the increases to strong growth in the power, chemical and oil and gas markets.
“Flowserve is continuing to execute well against both its original equipment and aftermarket strategies,” president and CEO Lewis Kling said, adding that the company is raising its earnings-per-share guidance by roughly 21 percent.

Milacron
Second-quarter sales for the plastics and industrial fluids manufacturer rose 9.3 percent to $215.7 million, compared with $197.3 million during the same period last year.
But Cincinnati-based Milacron's net loss for the quarter increased to $3.1 million, compared with $123,000 during the second quarter of 2007.
Milacron said the net loss included restructuring and other non-recurring charges of $4.3 million.
"Our ongoing efforts to reduce product costs and our overall cost structure are paying off," chairman, president and CEO Ronald Brown said. "This is showing up in significantly improved operating margins, despite rising material costs and difficult market conditions in North America. Our push to increase our presence outside the U.S., Canada and Western Europe continues to show results. Sales to these non-traditional markets in the second quarter were up 25 percent from a year ago and now account for close to 25 percent of our total sales."
Milacron's industrial fluids division, which makes coolants, lubricants and cleaners for machine tooling, posted a record high of $35 million, up 9.4 percent compared with $32 million during the second quarter of 2007. The division's quarterly earnings also rose, reaching $4.6 million compared with $3.2 million during the same period last year, an improvement of 43.8 percent.
"We expect year-over-year improvement in our operating results throughout 2008, despite the ongoing weakness in our North American markets. The significant cost-reduction measures we are executing, combined with strategic sourcing initiatives and price increases of our own, are more than offsetting rising energy and material costs. So, even with the economic headwinds we’re currently facing, we expect 2008 to be a better year for Milacron," Brown said.