Parker Hannifin Thursday unveiled a new indicator that may offer manufacturers another view of where the industry stands, and where it may be headed.
The new survey, Total Parker Orders, is derived from a weighted average of the year-over-year monthly percent change in orders for the company’s three business segments – Industrial North America, Industrial International, and Climate and Industrial Control – and the year-over-year 12-month rolling average of orders in the Aerospace segment.
The company, the world’s largest diversified manufacturer of motion and control technologies and systems, posted an increase of 14 percent in total orders for July, compared with the same month a year ago. By segment, Parker said orders in Industrial North America rose by 14 percent, Industrial International increased by 12 percent, Aerospace increased 17 percent (on a rolling 12-month basis), and orders in Climate and Industrial Controls increased by 19 percent.
The company pointed out that orders provide near-term perspective on its outlook, but are not in themselves an indication of future performance.
The chart displays fiscal 2006's previously disclosed orders by operating segment and adds 12 months of history for Total Parker Orders.
Industrial
Parker - North Industrial -
Total America* International* Aerospace* Climate*
FY06 Aug 7% 7% 5% 6% 20%
FY06 Sep 6% 8% 4% 8% 4%
FY06 Oct 9% 7% 5% 12% 31%
FY06 Nov 8% 8% 5% 11% 11%
FY06 Dec 14% 13% 14% 13% 20%
FY06 Jan 8% 11% (1)% 18% 8%
FY06 Feb 13% 9% 11% 21% 20%
FY06 Mar 7% 3% 2% 23% 14%
FY06 Apr 17% 13% 23% 18% 19%
FY06 May 13% 11% 16% 12% 17%
FY06 June 11% 7% 8% 15% 30%
FY07 July 14% 14% 12% 17% 19%
*Previously disclosed numbers
Caris & Co. analyst Mary Anne Sudol said that while Parker’s new indictor is not comparable with the Institute for Supply Management’s monthly reading on manufacturing activity, “Parker’s survey offers a more global view of trends in the capital goods sector.”
She says the latest reading supports the prospects for companies with broad exposure to the capital goods and aerospace markets in particular. Of the companies she follows, that includes: GE, Eaton, Honeywell, ITT, Kennametal, Boeing, Rockwell Collins, and Ladish.