Parker Hannifin, the global industrial hardware store for all the major metal bashers like Boeing and Caterpillar reported results this morning. In a word – impressive.
All we care about is the orders trend. Parker supplies to global top tier firms around the world in pneumatics, hydraulics, pumps, solenoids, valves, actuators, linear motion, factory automation controls and so on. Think of it as a Bunnings Warehouse for multinational industrial corporations. Parker’s order book is a great read across on the state of global industrial production.
Orders for the quarter ending March 31, 2020, compared with the same quarter a year ago were as follows:
· Orders decreased 2% for total Parker
· Orders decreased 7% in the Diversified Industrial North America businesses
· Orders decreased 2% in the Diversified Industrial International businesses
· Orders increased 12% in the Aerospace Systems Segment on a rolling 12-month average basis.
Given COVID19, that is a pretty strong result on orders. Having said that, the next quarter maybe slightly more challenging and the company has pulled 2020 guidance.
At first glance, this is a pretty good outcome. The shares have retraced 50% from the recent lows.