Parker-Hannifin's (PH) Aerospace Business Clinches 3 Deals
Zacks Investment Research | Jun 19, 2017 09:21PM ET
Parker-Hannifin Corporation’s (NYSE:PH) operating arm, Parker Aerospace, recently announced that it has clinched three new deals to supply aircraft parts for leading aviation service providers. These deals are expected to fortify Parker Aerospace’s footprint in high-technology markets that it serves. We believe that the gradual recovery of maintenance, repair and operations (MRO) focused Industrial businesses will help the company secure similar deals going forward, boosting its top line in the process.
The Deals in Detail
Parker-Hannifin will provide main wheels, brakes and nosewheels for Cessna Denali single engine turboprop aircraft, manufactured by Textron Inc.’s subsidiary, Textron Aviation Inc. (NYSE:TXT) . In addition, the company will supply pneumatic equipment, engine build-up unit, and oil and combustion sub-systems to Rolls-Royce (LON:RR) Trent 7000 engine (which will power Airbus A330neo). Also, its fuel atomization nozzle and manifold subsystem, which are already utilized by Rolls-Royce’s Trent 1000, will be used for the Trent 7000.
Parker-Hannifin remains confident that its state-of-the-art technology will help Trent 7000 engines to absorb and dampen the effects of engine vibration, boosting service lifecycle and slashing costs. This apart,General Electric Company's (NYSE:GE) operating arm, GE Aviation, has selected Parker Aerospace to provide lubrication and scavenge pump for the 1,300–2,000 shaft-horsepower small turboprop engine. Parker Aerospace is joining forces with its Czech-based component supplier, Jihostroj, to produce the pumps.
Bright Long-Term Prospects
Over the past one year, Parker-Hannifin’s shares have returned an admirable 44.5%, outperforming the Zacks classified Zacks Investment Research
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