Parker-Hannifin Corp. F1Q10 (Qtr. End 09/30/2010) Earnings Call

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2009-10-20 13:13:08.0

Tags: Earnings, Question, Sales Strategy, Pricing, Financial Services, Marketing Research, Financial Accounting, Sales, Marketing, Finance, Seeking Alpha, Parker Hannifin Corp.

Question-and-Answer Session

Operator

Thank you. (Operator Instructions) Your first question comes from the line of Joel Tiss of Buckingham Research. Please proceed.

Joel Tiss - Buckingham Research

Wow. I'm shocked. I'm first. How are you doing guys? Two things, fast; Europe, can you talk about if you're seeing improvement there at a faster rate than what you're seeing in the US? And also, in the climate industrial controls, can you talk about any other end markets that you're seeing improvement besides automotive?

Pam Huggins

Well, Joel, just to answer the first part of your question, and then I'll let someone else jump in. One of the things that we are seeing in terms of the international orders is that they are increasing at a higher rate than what you're seeing in some of the other places.

Okay? Now, in terms of Western Europe, we think that's still pretty soft, but international in total, and you're going to see that reflected in the guidance, because obviously Asia-Pacific and Latin America are doing quite well.

Don Washkewicz

Joel, this is Don. As far as the CIC, I believe that was the second part of your question, the CIC Group, the refrigeration is pretty flat overall, is what we're seeing right now. I think the Clunkers Program brought forward some business represented about $16 million in business for us, additional business from the Clunkers that will basically fade away. I think we are stealing from future periods with that.

And then the heavy duty truck, I would say that what we've seen here of late is some uptick on our 312 pressure curves on heavy duty truck, so we think that there is going to be a slight improvement in heavy duty trucks. So, look at those three segments, those three would make up the majority of the CIC business. And so it's a little bit of a mixed bag, but that's how we would see it.

Joel Tiss - Buckingham Research

Okay. Perfect.

Pam Huggins

Thanks, Joel.

Joel Tiss - Buckingham Research

Thank you.

Operator

Your next question comes from the line of Eli Lustgarten of Longbow Securities. Please proceed.

Eli Lustgarten - Longbow Securities

Good morning everyone. Nice quarter.

Pam Huggins

Good morning, Eli.

Eli Lustgarten - Longbow Securities

I look at the comparison of the guidance today versus the end of the year, I mean, the only place you have better [shares] is that is international a less of a decline once you are sort of tweaked up. So what's noticeable is that the profitability of every segment has been improved to some degree, particularly international, 67 or 62 o I think it was (Inaudible) and CIC. Can you tell us what's going on? Is that just the cost controls and better pricing or what's driving, generally better profitability on probably same or little bit lower sales with (Inaudible) internationally.

 

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