Supplier Earnings Roundup: Parker, Timken, Ingersoll-Rand & More

We're in another quarterly earnings report season, with many well-known industrial distributors and suppliers sharing their latest fiscal results. Here's how the most recent quarter fared for Parker Hannifin, Timken, Ingersoll-Rand, SKF, Praxair, National Oilwell Varco and Rockwell Automation.

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We're in another quarterly earnings report season, with many well-known industrial distributors and manufacturers sharing their latest fiscal results.

Here's how the most recent quarter fared for Parker Hannifin, Timken, Ingersoll-Rand, SKF, Praxair, National Oilwell Varco and Rockwell Automation.

Parker Hannifin

Cleveland, OH-based motion control technology products supplier Parker Hannfin reported its 2017 first quarter fiscal performance on Thursday, led by a 10.2 percent jump in sales year-over-year. The company had Q1 sales of $3.12 billion, aided by the company's recent acquisitiion of Clarcor, though Parker said organic sales six percent.

Parker's total Q1 profit of $238.8 million spiked 27.6 percent year-over-year.

By business segment:

  • Diversified Industrial
    • North America sales of $1.41 billion increased 13.0 percent year-over-year, while operating profit of $227.4 million increased 12.5 percent
    • International sales of $1.13 billion decreased 10.7 percent year-over-year, while operating profit of $153.0 million increased 45.5 percent
  • Aerospace Systems sales of $577.0 million increased 2.8 percent year-over-year, while operating profit of $80.0 million decreased 5.1 percent.

During Q1, Parker completed acquisitions of actuator supplier Helac Corporation and filtration products supplier Clarcor.

Timken

North Canton, OH-based bearings and mechanical power transmission products supplier Timken reported its Q1 fiscals on Wednesday.

The company posted Q1 sales of $703.8 million, a 2.9 percent year-over-year increase. Timken's Q1 profit of $38.2 million was down from $65.9 million a year earlier, while adjusted profit of $43.7 million was up from $39.9 million.

"We had a solid start to the year, with stronger demand in sectors like industrial distribution and off-highway," Timken president and CEO Richard Kyle said. "We responded well to the increase in demand, improved operating margins and generated solid cash flow, while continuing to advance our strategy across the globe."

On April 7, Timken announced the acquisition of Torsion Control Products, which complements the 2016 addition of couplings maker Lovejoy.

By business segment in Q1:

  • Mobile Industries sales of $383 million were flat year-over-year, with increased demand in the mining and agriculture sectors offset by softness in rail and aerospace.
  • Process Industries sales of $320.8 million increased 6.6 percent year-over-year, with increased demand in industrial distribution, higher sales in marine and the benefit of acquisitions.

Timken also raised its 2017 full-year earnings outlook in its Q1 earnings release.

Ingersoll-Rand

Swords, Ireland-based compressed air systems, tools and pumps manufacturer Ingersoll-Rand posted its Q1 results on Wednesday.

The company posted Q1 total sales of $3.0 billion, up 4 percent year-over-year, while profit of $117.1 million was down from $152.4 million a year earlier. Operating margin was down 60 basis points due to planned restructuring costs, while adjusted operating margin increased 20 points. Operating profit of $205 million decreased 8.9 percent.

Q1 2017 included restructing costs of $32.7 million, compared with $8.4 million a year earlier.

"Focused execution of our business strategy enabled us to deliver another quarter of strong financial and operational performance,” said Michael W. Lamach, Ingersoll-Rand chairman and CEO. "Commercial and Residential HVAC continued to deliver our bookings and revenue growth and our Industrial segment continued to make steady progress with solid order growth and expanding operating margins. Overall, our first-quarter performance was on track and gives us confidence in our full-year 2017 EPS guidance. We are continuing to build a stronger, more durable company over the long term."

The company said Q1 organic sales increased 4 percent year-over-year, with North American organic sales up 6 percent and international organic sales up 2 percent.

Ingersoll-Rand's Industrial segment, had Q1 sales of $676 million — 22.5 percent of total business — down 1 percent year-over-year, while organic sales increased 1 percent. Bookings increased 8 percent, with organic bookings up 9 percent. Operating profit of $65.8 million increased 3 percent, operating margin of grew 0.3 points to 9.7 percent and adjusted operating profit grew 0.6 points to 10.4 percent.

Ingersoll-Rand's Industrial segment includes compressed air and gas systems and services, power tools, material handling systems and fluid management equipment.

The company said its Industrial organic growth was driven by significant aftermarket growth in its Compression Technologies Business. In Industrial Products, bookings were up mid-single digits, with solid performance in the short cycle tools and fluid management businesses and continued weakness in material handling.

SKF

Swiss bearings maker SKF reported Q1 sales of $2.21 billion, up 10.5 percent year-over-year. the company said organic sales increased approximately 8.0 percent, with North America up 7.8 percent, Europe up 5.0 percent, Asia up 12.8 percent, Latin America up 11.4 percent and Middle East & Africa up 9.5 percent. Organic sales in Industrial increased 7.9 percent, and 8.4 percent in Automotive. Overall, Industrial sales increased 9.4 percent year-over-year, and Automotive increased 14.5 percent.

SKF's operating profit of $260 million increased 19.5 percent, with adjusted operating profit of $270 million increasing the same amount.

Total industrial Q1 sales of $1.52 billion were up 9.3 percent year-over-year.

North American Industrial sales were significantly higher year-over-year, with the company reporting strong growth to the energy, industrial distribution, railway, heavy, special and off-highway industries. Sales to aerospace were lower, and sales to industrial general industries were significantly lower.

Praxair

Danbury, CT-based gases supplier Praxair posted Q1 sales of $2.2 billion, up 8.7 percent year-over-year. Excluding higher cost pass-through and positive currency translation effects, sales were up 6 percent. The company said sales growth was primarily driven by higher volumes in North America, Europe and Asia and included new project start-ups. End-market sales growth was led by metals, downstream energy, chemicals and electronics.

Praxair's Q1 profit of $389 million increased 9.2 percent year-over-year.

By geography in Q1:

  • North America sales of $1.45 billion were up 7.7 percent year-over-year, led by stronger volumes to downstream energy, metals, chemicals, food and beverage and healthcare end-markets, as well as higher price.
  • Europe sales of $356 million were up 11.2 percent year-over-year, and up 13 percent excluding negative currency translation effects and positive cost pass-through.
  • South America sales of $369 million increased 18.6 percent year-over-year, but grew only 1 percent excluding positive currency translation.
  • Asia sales of $395 million increased 5 percent, and grew 8 percent excluding currency, cost pass-through and prior-year net divestiture.

Praxair Surface Technologies recorded Q1 sales of $150 million, up 0.6 percent year-over-year.

National Oilwell Varco

Houston-Based National Oilwell Varco (NOV) reported continued year-over-year sales declines in Q1, though not as much Q4. The company's Q1 sales of $1.74 billion were down 20 percent year-over-year, though up 3 percent from Q4 2016. Fourth quarter sales declined 38 percent from the previous year.

Meanwhile, the company took a net loss of $122 million in Q1, and a adjusted net loss of $63 million.

However, NOV Clay Williams was optimistic in the company's earnings release Wedensday.

"The company posted its second consecutive quarter of rising revenues and its third consecutive quarter of rising Adjusted EBITDA,” Williams said. "Our businesses that serve the improving North American land market generated solid sequential improvements in profitability and are growing quickly. This lifted NOV’s consolidated mix of land revenues to 57 percent during the first quarter of 2017."

By business segment in Q1:

  • Rig Systems sales of $393 million decreased 58 percent year-over-year, and decreased 8 percent from Q4
  • Rig Aftermarket sales of $321 million decreased 18 percent year-over-year, and decreased 5 percent form Q4
  • Wellbore Technologies sales of $555 million decreased 12 percent year-over-year, and increased 5 percent from Q4
  • Completion & Production Solutions sales of $648 million increased 16 percent year-over-yera, and increased 8 percent from Q4

Rockwell Automation

Milwaukee, WI-based factory automation equipment maker Rockwell Automation posted Q2 sales of $1.5 billion, up 7.9 pecent year-over-year, with organic sales up 6.8 percent. Total profit of $189.5 million was up from $168.0 million a year earlier.

By business segment in Q1:

  • Architecture & Software sales of $719 million increaed 14.2 percent year-over-year, with organic sales up by 13.7 percent
  • Control Products & Solutions sales of $853 million increased 3.0 percent year-over-year, with organic sales up 1.4 percent
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