CLEVELAND (AP) — Parker Hannifin's net income fell 25 percent in its fiscal second quarter, stung by a drop in orders and weakness overseas due to difficult economic conditions. But the company's performance topped analysts' estimates,
Its stock rose more than 2 percent in premarket trading Friday.
Chairman, CEO and President Don Washkewicz said in a statement that the company expects the second half of its fiscal year to be stronger than the first half, which is a traditional pattern for the business.
Parker Hannifin, which makes industrial hoses, airplane wheels and other products, earned $181 million, or $1.19 per share, for the three months ended Dec. 31. That's down from $240.8 million, or $1.56 per share, in the prior-year period.
Analysts predicted earnings of $1.13 per share, according to a FactSet poll.
Revenue dipped 1 percent to $3.07 billion from $3.11 billion, but beat Wall Street's average estimate of $2.93 billion.
Sales fell 4.1 percent for the industrial international unit. An 18.3 percent sales decline posted by the climate and controls segments was mostly due to the sale of a business. Industrial North American sales increased 1.2 percent, while aerospace sales climbed 6.5 percent.
Total orders slipped 2 percent. The company reported a 6 percent decline in orders for its industrial North America segment and a 5 percent drop in orders for its industrial international business. Orders rose 1 percent for both its aerospace and climate and industrial controls divisions.
Parker Hannifin Corp. still expects fiscal 2013 earnings of $6.15 to $6.75 per share.
Analysts forecast earnings of $6.41 per share.
The Cleveland company's shares gained $2.23, or 2.4 percent, to $93.59 about a half-hour before the market open.