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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