Parker-Hannifin eyes debt reduction to ensure ratings, access to cash

By Jennifer Lanning Drey

Portland, Ore., May 29 - Parker-Hannifin Corp. is focused on paying down debt in an effort to maintain its current debt ratings and to ensure access to cash when needed, Don Washkewicz, chief executive officer of Parker-Hannifin, said Friday during a presentation at the Sanford C. Bernstein & Co. Strategic Decisions Conference in New York.

The company targets leverage below 40% and thinks leverage below 37% is most appropriate, he said.

"A lot of what we're doing today as we're managing for cash is we're paying down some of this debt even further," Washkewicz said.

The CEO also noted that the company is committed to continuing to increase its dividend as it has done for nearly 53 years.

Parker-Hannifin looks to achieve 10% annual growth divided evenly between internally generated growth and acquisitions, he said.

The company has already done all of the acquisitions it intended to do this year, he said.

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

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