Parker-hannifin Corporation · NYSE:PH
Parker-hannifin — Q3 FY2008 Earnings Presentation
13 slides from Parker-hannifin's earnings presentation, Apr 22, 2008
Slide 1: Financial Highlights – Diluted Earnings per Share
Financial Highlights Diluted Earnings per Share rd Quarter and YTD as of March 31 $3.45 $4.05 $1.49 $1.19 $0.00 $0.50 $1.00 $1.50 $2.00 $2.50 $3.00 $3.50 $4.00 $4.50 Q3 FY08 Q3 FY07 Q3 FY08 YTD Q3 FY07 YTD
Slide 2: Financial Highlights – Sales
Financial Highlights Sales – rd Quarter and YTD as of March 31 Dollars in millions FY2008 % Change FY2007 FY2008 % Change FY2007 Sales As reported 3,183 $ 14.4 % 2,781 $ 8,799 $ 12.2 % 7,844 $ Acquisitions 4.0 % 3.1 % Currency 6.1 % 4.9 % Adjusted Sales 2,900 $ 4.3 % 8,170 $ 4.2 % 3rd Quarter YTD
Slide 3: Segment Reporting – Industrial North America
Segment Reporting Industrial North America Dollars in millions FY2008 % Change FY2007 FY2008 % Change FY2007 Sales As reported 1,087 $ 3.7 % 1,048 $ 3,084 $ 2.5 % 3,009 $ Acquisitions 0.6 % 1.7 % Currency 0.7 % 0.6 % Adjusted Sales 1,073 $ 2.4 % 3,015 $ 0.2 % Operating Margin As reported $ $ $ $ % o
Slide 4: Segment Reporting – Industrial International
Segment Reporting Industrial International Dollars in millions FY2008 % Change FY2007 FY2008 % Change FY2007 Sales As reported 1,346 $ 32.2 % 1,018 $ 3,624 $ 28.6 % 2,818 $ Acquisitions 9.0 % 6.2 % Currency 14.8 % 11.8 % Adjusted Sales 1,103 $ 8.4 % 3,116 $ 10.6 % Operating Margin As reported $ $ $
Slide 5: Segment Reporting – Aerospace
Segment Reporting Aerospace Dollars in millions FY2008 % Change FY2007 FY2008 % Change FY2007 Sales As reported $ 7.7 % $ 1,328 $ 7.0 % 1,241 $ Acquisitions 3.2 % 1.8 % Currency 0.6 % 0.5 % Adjusted Sales $ 3.9 % 1,299 $ 4.7 % Operating Margin As reported $ $ $ $ % of Sales 14.5 % 15.2 % 13.4 % 16.3
Slide 6: Segment Reporting – Climate & Industrial Controls
Segment Reporting Climate & Industrial Controls Dollars in millions FY2008 % Change FY2007 FY2008 % Change FY2007 Sales As reported $ 0.5 % $ $ (1.8)% $ Acquisitions Currency 3.6 % 3.0 % Adjusted Sales $ (3.1)% $ (4.8)% Operating Margin As reported $ $ $ $ % of Sales 6.5 % 6.9 % 5.1 % 7.3 % 3rd Quar
Slide 7: Parker Order Rates
Parker Order Rates Excludes Acquisitions & Currency 3-month year-over-year comparisons of total dollars, except Aerospace Aerospace is calculated using a 12-month moving average FY08 FY07 Total Parker 9 % + 2 % + Industrial North America 2 % + 2 % - Industrial International 11 % + 11 % + Aerospace 2
Slide 8: Strong Cash Flow
Strong Cash Flow Cash from Operating Activities rd Quarter YTD $537 $864 $0 $100 $200 $300 $400 $500 $600 $700 $800 $900 FY08 FY07
Slide 9: Financial Leverage
Financial Leverage Debt to Debt Equity 26.1% 16.0% 18.0% 20.0% 22.0% 24.0% 26.0% 28.0% 30.0% 32.0% 34.0% 36.0% 38.0% FY99 FY00 FY01 FY02 FY03 FY04 FY05 FY06 FY07 FY08 Goal - Not to exceed 37% over the cycle
Slide 10: FY 2008 Earnings Outlook Assumptions
FY 2008 Earnings Outlook Assumptions Segment Sales & Operating Income FY 2008 Sales change versus FY 2007 Industrial North America 3.7 % -- 4.1 % Industrial International 25.0 % -- 25.4 % Aerospace 7.3 % -- 7.7 % Climate & Industrial Controls (2.8)% -- (2.4)% FY 2008 Operating margin percentages Ind
Slide 11: Appendix
Appendix Income Statements rd Quarter rd Quarter YTD
Slide 12: Income Statement – 3rd Quarter
Income Statement – rd Quarter Dollars in millions % of Sales % of Sales Net Sales 3,182.5 $ 100.0 % 2,781.0 $ 100.0 % Cost of sales 2,447.2 76.9 % 2,163.8 77.8 % Gross profit 735.3 23.1 % 617.2 22.2 % S, G & A 347.0 10.9 % 308.6 11.1 % Interest expense 25.5 .8 % 22.4 .8 % Other expense (income), net
Slide 13: Income Statement – 3rd Quarter YTD
Income Statement – rd Quarter YTD Dollars in millions % of Sales % of Sales Net Sales 8,798.9 $ 100.0 % 7,843.7 $ 100.0 % Cost of sales 6,763.7 76.9 % 6,049.2 77.1 % Gross profit 2,035.2 23.1 % 1,794.5 22.9 % S, G & A 990.9 11.3 % 893.4 11.4 % Interest expense 74.0 .8 % 61.9 .8 % Other (income), net