Currency Headwinds Drag Down Parker Hannifin Q1 Sales, Profit

Sales were down by double digit percentages in the company's North American and International Industrial segments, both attributed mostly to currency headwinds.

Cleveland, Ohio-based motion control technology manufacturer Parker Hannifin reported its 2016 first quarter financial earnings on Thursday for the period ended Sept. 30, posting considerable decreases in both sales and profit.

The company reported Q1 sales of $2.87 billion, a 12.3 percent decrease over last year. Profit had a much lager drop, as Q1's $195 million was 30.4 percent down from a year ago.

In Parker's Industrial segment, North American Q1 sales of $1.3 billion were down 13 percent from last year, while International sales slumped 18 percent to $1.0 billion. The company said the majority of the decline was due to foreign currency headwinds. North American operating income of $212.7 million was down from last year's $264.2 million, while International operating income of $129.3 million was down from last year's $189.8 million.

Parker's Aerospace segment Q1 sales of $544.6 million increased 2 percent over last year, while operating income of $74.0 million was up from last year's $65.3 million.

Parker said company-wide orders decreased 11 percent in Q1, with decreases of 12 percent in Industrial North America, 8 percent in Industrial International, and 16 percent in Aerospace.

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