Parker-Hannifin CEO sees room to grow; company preparing for upturn

By Jennifer Lanning Drey

Savannah, Ga., Oct. 4 - Parker-Hannifin Corp. has plenty of headroom to grow the business given its current debt ratio and cash-generating abilities, Donald Washkewicz, its chief executive officer, said during the company's European investor meeting held Monday.

Parker-Hannifin generated $1.22 billion of cash in fiscal 2010, which ended June 30.

"Cash is fact, and the fact here is that we've done a tremendous job on cash flow, especially during this downturn," Washkewicz said.

Parker-Hannifin's management priorities include maintaining a strong balance sheet, investing in growth opportunities and preparing for the upturn.

"We're actively in the upturn, and we want to make sure that we capitalize on the opportunities there," Washkewicz said.

The CEO also said acquisitions remain a core means of growth for Parker-Hannifin, although the company isn't look to grow just for the sake of growth.

"We have the liquidity and we have the strong balance sheet to be able to execute [on acquisitions]," Pam Huggins, Parker-Hannifin's vice president and treasurer, said during the presentation.

The company's acquisition objectives include enhancing its geographic footprint, expanding technology capability, entering into new growth markets and building systems capabilities.

Momentum is also building for organic growth opportunities, Washkewicz said.

Organic growth will come through innovation, global expansion, system solutions and targeted markets, Huggins said.

Parker-Hannifin is a Cleveland-based manufacturer of motion-control products.

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