Parker Hannifin Expects Lower Than Anticipated Second Quarter

10 December 1998

Parker Hannifin Expects Lower Than Anticipated Second Quarter Earnings

    CLEVELAND--Dec. 9, 1998--Parker Hannifin Corporation announced today that it expects its financial results for the second quarter ending December 31st to be lower than anticipated due to a significant decline in customer orders. In line with the reduction in orders, the Company's diluted earnings per share are expected to be 10-15 percent below the $.63 per diluted share reported in last year's record second quarter.
    President and Chief Executive Officer Duane E. Collins said, "The further slowing of orders from our major customers reflects a number of factors, including the continuing softness in semiconductor manufacturing, automation, petrochemical and agricultural equipment markets along with economic uncertainties in Asia, Latin America and Europe.
    "As for the remainder of the fiscal year, our outlook is cautious. With the current financial market volatility, moderating order rates and changing customer expectations, we are working to achieve fiscal year earnings equal to or exceeding last year's record.
    "Parker management is committed to doing its utmost to achieve the best results possible given the present unsettled business conditions that exist worldwide. We remain focused on customer service while implementing cost reductions, tightening inventories and reducing employment levels."
    Parker Hannifin expects to release its second quarter financial results on January 19. During last year's record second quarter, Parker sales were $1.11 billion and income was $71.3 million.
    The forward-looking statements contained in this news release rely on a number of assumptions concerning future events, and are subject to a number of uncertainties and other factors, many of which are outside the Company's control, that could cause actual results to differ materially from such statements, including uncertainties surrounding the global economy and global market conditions, continuity of business relationships with and purchases by major customers and competitive pressure on sales and pricing.
    Parker Hannifin is a worldwide leader in the production of motion, control, instrumentation and fluid flow components and systems for thousands of industrial and aerospace markets. For more information about Parker, visit the Company Web site at www.parker.com.