Parker-Hannifin Inks 5-Year Distribution Deal With Aviall
Recently, Parker Aerospace — a business segment of Parker-Hannifin Corporation PH — signed a five-year master distributor contract with Aviall Services, a subsidiary concern of The Boeing Company BA.
Per the agreement, Parker Aerospace’s Aircraft Wheel & Brake Division’s (AWBD) Cleveland Wheels & Brakes products will be stored and marketed by Aviall. Notably, Aviall will dispense the products through its own as well as AWBD’s direct distributor network.
Aviall Services is regarded as the prime solutions provider of aftermarket supply-chain supervision services for the defense and aerospace industries. The company distributes products to more than 250 manufacturers across the globe from nearly 40 customer service centers in Europe, Asia Pacific and North America.
The aforementioned distribution agreement is expected to expand the worldwide stock availability of AWBD’s Cleveland Wheels & Brakes product line. Additionally, Parker-Hannifin stated that this deal will aid in reducing lead times and ensure greater convenience of ordering for the fixed-base operator and repair stations.
Parker-Hannifin is a global leader of control and motion technologies. The company’s aerospace segment provides hydraulic, flight control, fluid conveyance, fuel and inerting, lubrication, and pneumatic systems and components for aerospace, as well as other high-technology markets across the world. Parker-Hannifin is poised to grow on the back of its revamped Win Strategy, ongoing restructuring initiatives, along with the CLARCOR acquisition (March 2017).
However, the company currently carries an unfavorable Zacks Rank #4 (Sell). Over the past month, shares of the company have lost 4.7%, wider than the 1.4% loss recorded by the industry.
Parker-Hannifin's realignment plan is expected to bear fruit over the long run but might affect its near-term financials. For instance, the estimated $50-million business-realignment expenses and synergy costs of $58 million to be incurred for the CLARCOR buyout will impact the company’s bottom-line performance in fiscal 2018 (ended June 2018). Also, input price inflation and persistent softness in emerging markets’ business are other causes of concern for Parker-Hannifin.
A few better-ranked stocks from the same space are listed below:
Chart Industries, Inc. GTLS sports a Zacks Rank #1 (Strong Buy). The company’s earnings per share (EPS) are predicted to grow 26.90% in the next three to five years. You can see the complete list of today’s Zacks #1 Rank stocks here.
Graco Inc. GGG holds a Zacks Rank of 2 (Buy). The company’s EPS is projected to rise 10.33% over the next three to five years.
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