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Parker Executive Details Long-Term Growth Strategy
CLEVELAND -- Parker Hannifin Corp. plans to reach $10 billion in saleswith a 20% share of the $50 billion global motion and control market,Chief Operating Officer Nickolas Vande Steeg said at the LehmanBrothers Industrial Select Conference in Miami yesterday. Today, hesaid, Parker has a 14% market share and posts more than $7 billion inannual sales."Our profitable growth plan includes 10% compounded annual revenuegrowth, with 5% coming from acquisitions and 5% organically throughglobal expansion, innovation and increased sales in total Parkersystems," Vande Steeg said.Vande Steeg highlighted the following key growth drivers:Strategic Acquisitions. "Ouracquisition focus is on higher return, less-cyclical businesses thatbring Parker smart or expanded technologies, global presence, near-termsynergies, and after-market content," Vande Steeg said, noting thatParker's recent acquisition of Sporlan, a market leader inrefrigeration and air conditioning components and systems, is a goodexample of the company's acquisition strategy because refrigeration isa growing market with very low cyclicality. "We've identified potentialacquisitions in Europe, Asia Pacific and North America that areavailable to us and would be a good use of our cash."Innovation. "We've assigned aTechnology & Innovation vice president to each of our eightoperating groups exclusively dedicated to advancing Parkerinnovations," he said. "We are forming market-focused business unitssuch as life sciences and fuel cells that are uniquely positioned toserve those markets with Parker-engineered customer solutions. We'reproviding corporate funding for breakthrough projects and we'recollaborating with government and academia groups so that Parker is atthe forefront of some of the world's most innovative technologies."Total System Products and Services.Vande Steeg defined systems with the example of Parker technologiesonboard the Airbus A-380. "It means we provide the fuel systems, galleycooling systems, and ground-service connectors onboard for a total of$1 million of Parker components per plane, and there's more to come,"he said. "We like to have all of the hydraulic, pneumatic and fuelsystems on an airplane."Globalization. Parker continuesto capture global market share with a No. 1 market position in LatinAmerica, No. 1 or No. 2 in Eastern Europe and No. 3 in Asia Pacific."We're really focused on Asia Pacific, primarily China and India, aswell as Japan," Vande Steeg concluded.Parker Hannifin employs more than 48,000 in 46 countries. Visit Parker Hannifin Corp.: www.parker.com"