Parker-Hannifin Corp Q1 2024 Earnings Call Summary

The following is excerpted from the question-and-answer section of the transcript.

Question: Nathan Hardie Jones - Stifel, Nicolaus & Company, Incorporated, Research Division - Analyst : I'll add my congratulations on retirement to Lee and (inaudible). I'm going to ask David and Julian's question a little bit of a different way. Parker has been through many order downturns over the years. And while every downturn is different, the math always tends to be the same. You see 3 to 5, maybe 6 quarters of negative order rates. The magnitude of those declines are either a mid-cycle pause or a recession. As we've got to the point where we're now 3 to 5 quarters of negative order rates. Is this starting to feel more like a mid-cycle pause than the recession we've been trying to talk ourselves into for the last 18 months? And maybe just any comments around the feelings you guys have about this downturn relative to the downturns that you've seen previously.

Question: Nathan Hardie Jones - Stifel, Nicolaus & Company, Incorporated, Research Division - Analyst : Yes. I was just talking about the industrial businesses, but I understand that there's price dynamic. And then just one on Meggitt. You guys have talked about that outperforming. I think it's clearly seeing better growth, the market seeing better growth likely leading to some better margins here. You had targeted year 5 high single-digit ROI. Is the double-digit ROI on this business with the outperformance now within reach in year 5?

Question: Nathan Hardie Jones - Stifel, Nicolaus & Company, Incorporated, Research Division - Analyst : Okay. We'll wait for the upgrade of that target.