Parker braces for challenging months ahead

Mayfield Heights, Ohio – Parker Hannifin Corp. has reported marginal Covid-19 impact on its results for the quarter ending 31 March, but expects a more challenging environment in the coming months. 

Sales for the fiscal 2020 third quarter were $3.70 billion (€3.4 million), up marginally from $3.69 billion reported in the prior-year quarter, the supplier of motion and control technologies announced 30 April.

Net income was $367.3 million, or $2.83 per share, down from $411.2 million, or $3.14 per share, in the three months to end of March.

"The third quarter was a strong quarter for Parker during the early stages of this historic period of global disruption," chairman and CEO Tom Williams said in a statement. 

Despite an organic sales decline of 7.4%, Williams said, "we delivered strong adjusted total segment operating margin, and earnings (adjusted EBITDA) margin was 19.3%, an improvement of 60 basis points compared with the same quarter a year ago."

He noted that Parker products "are being used in countless applications to combat the spread and support the treatment of Covid-19."

However, Williams said Parker expects the months ahead "will be much more challenging as April order trends have become more negative with the current global economy.” 

As a result, he went on to say, Parker has implemented cost reduction and cash preservation measures that include global salary cuts, reduced work schedules, a global hiring freeze and a reduction in capex.

Parker has withdrawn its earnings guidance for fiscal year 2020, starting July, saying the current environment makes it difficult to forecast results with any reasonable amount of accuracy.