Stock Focus: Parker Hannifin (PH)
Posted on May 12, 2008 in the Stocks category
.The falling U.S. dollar has many investors looking for U.S. stocks with large international footprints. One such stock is Cleveland-based Parker Hannifin (PH).
Company Profile:
Parker Hannifin Corporation manufactures fluid power systems, electromechanical controls, and related components worldwide.
Background:
In 2001, international industrial sales made up about 21% of Parker Hannifin’s net sales. Today that number is 42% and some analysts think even that number is understated. North American industrial sales make up about 34% of net sales; aerospace, 15%; and climate and industrial controls, 9%.
Earnings:
Earnings jumped 30% in fiscal Q3 ended in March while sales grew 14%. Growth is particularly strong in Asia and Latin America. The only negative I can see is that the weak dollar is helping to boost sales. Six percentage points of Parker’s 14% sales increase in fiscal Q3 were tied to currency exchange. If the U.S. dollar strengths, then some of these gains will away.
Parker Hannifin’s dividend yield is 1%, and the annual payout has risen for 51 consecutive years.
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