Parker Hannifin (NYSE: PH), makers of motion and control technologies, was just awarded $2 billion in contracts to supply fuel and hydraulic systems for the new A350 aricraft. Parker's aerospace division will supply the entire fuel management system for the wide body aircraft. Likewise, Parker aerospace will supply hydraulic power and distribution components and measurement controls for the A350.

News of these awards comes immediately following Parker Hannifin's posting a record 2Q2008 sales revenue of $2.8 billion, an increase of almost 13%. A healthy 5% of this growth was organic, 3% resulted from four separate acquisitions the company made during the quarter. Net income increased just under 10% to $212 million, and cash flow increased more than 8% to $473 million. As a result, diluted EPS increased 13% to $1.23.

Parker Hannifin reported great results in its international segment. Revenue increased 28% to $1.2 billion, while operating income increased 44% to $175 million. These results helped make up for some softness in the domestic industrial market. While the domestic aerospace segment posted a 7% increase in sales, operating income dropped by 23%. The same is true of the climate control segment which posted a 22% drop in operating income.

On a more positive note, total orders are running 10% ahead of last year, with both industrial and aerospace segments posting 16-19% increases. CEO Don Washkewicz forecasts good order growth throughout all of 2008. As a result, he boosted earnings guidance modestly to the $5.15-$5.40 range.

Parker Hannifin forecasts a number of new product launches in 2008, with more products in the development pipeline. The company has increased its annual dividend for 51 consecutive years and shows no signs of breaking with tradition. The stock currently trades just under $62.