Led by growth in its industrial North America business, Parker Hannifin (NYSE:PH) revealed a stronger second-quarter profit and sales that matched Wall Street expectations.
However, the company says it is noticing business conditions softening internationally that are consistent with global macro-economic indicators.
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Parker Hannifin CEO Don Washkewicz said the weaknesses have “moderated year-over-year revenue growth and affected segment operating margin performance.”
Looking toward 2012, the company anticipates non-GAAP earnings in the range of $6.90 to $7.30 a share, which is below analysts’ consensus of $7.43.
Its shares were down more than 4% to $81.45 on Friday.
The Cleveland-based maker of motion and control technologies reported net income of $242.3 million, or $1.56 a share, up 4.5% compared with $231.8 million, or $1.39, in the same period last year.
The results were below average analyst estimates from a Thomson Reuters poll of $1.62 a share. Revenue for the three months ended Dec. 31 was $3.1 billion, up 8.4% from $2.9 billion a year ago, matching the Street’s view.
The gains were led in the industrial North America segment, which increased 13.2% to $1.2 billion, followed by growth of 6.2% and 8% in its industrial international and aerospace segments, respectively.