Parker-hannifin Corporation · NYSE:PH
Parker-hannifin — Q2 FY2011 Earnings Presentation
13 slides from Parker-hannifin's earnings presentation, Jan 20, 2011
Slide 1: Financial Highlights
Financial Highlights Diluted Earnings per Share nd Quarter $1.39 $.64 $2.90 $1.10 $.00 $.50 $1.00 $1.50 $2.00 $2.50 $3.00 $3.50 Q2 FY11 Q2 FY10 FY11 FY10
Slide 2: Financial Highlights
Financial Highlights Sales – nd Quarter Dollars in millions FY2011 % Change FY2010 FY2011 % Change FY2010 Sales As reported 2,867 $ 21.7 % 2,355 $ 5,696 $ 24.0 % 4,592 $ Acquisitions 0.4 % 0.3 % Currency (21) (0.9)% (47) (1.0)% Adjusted Sales 2,878 $ 22.2 % 5,729 $ 24.7 % 2nd Quarter Total Year
Slide 3: Segment Reporting: Industrial North America
Segment Reporting Industrial North America Dollars in millions FY2011 % Change FY2010 FY2011 % Change FY2010 Sales As reported 1,046 $ 23.4 % $ 2,110 $ 29.4 % 1,630 $ Acquisitions 0.5 % 0.2 % Currency 0.5 % 0.5 % Adjusted Sales 1,037 $ 22.4 % 2,098 $ 28.7 % Operating Margin As reported $ $ $ $ % of
Slide 4: Segment Reporting: Industrial International
Segment Reporting Industrial International Dollars in millions FY2011 % Change FY2010 FY2011 % Change FY2010 Sales As reported 1,147 $ 23.1 % $ 2,240 $ 25.7 % 1,782 $ Acquisitions 0.1 % 0.1 % Currency (25) (2.6)% (52) (2.9)% Adjusted Sales 1,171 $ 25.6 % 2,291 $ 28.5 % Operating Margin As reported $
Slide 5: Segment Reporting: Aerospace
Segment Reporting Aerospace Dollars in millions FY2011 % Change FY2010 FY2011 % Change FY2010 Sales As reported $ 14.7 % $ $ 9.7 % $ Acquisitions 0.2 % 0.4 % Currency (1) (0.2)% (2) (0.2)% Adjusted Sales $ 14.7 % $ 9.5 % Operating Margin As reported $ $ $ $ % of Sales 13.8 % 10.2 % 12.0 % 11.5 % 2nd
Slide 6: Segment Reporting: Climate & Industrial Controls
Segment Reporting Climate & Industrial Controls Dollars in millions FY2011 % Change FY2010 FY2011 % Change FY2010 Sales As reported $ 22.6 % $ $ 24.1 % $ Acquisitions 2.2 % 1.3 % Currency (0.0)% (1) (0.0)% Adjusted Sales $ 20.4 % $ 22.8 % Operating Margin As reported $ $ $ $ % of Sales 4.4 % 3.5 % 6
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 DEC '10 SEPT '10 DEC '09 SEPT '09 Total Parker 29 % + 29 % + 7 % - 25 % - Industrial North America 26 % + 31 % + 3 % - 27
Slide 8: Strong Cash Flow
Strong Cash Flow Cash from Operating Activities nd Quarter FY11 Cash from Operating Activities As reported $408 M Pension plan contribution M Adjusted $608 M FY11 Cash from Operating Activities As A % of Sales As reported 7.2% Pension plan contribution 3.5% Adjusted 10.7%
Slide 9: Financial Leverage
Financial Leverage 26.5% 16.0% 18.0% 20.0% 22.0% 24.0% 26.0% 28.0% 30.0% 32.0% 34.0% 36.0% 38.0% 40.0% 42.0% FY00 FY01 FY02 FY03 FY04 FY05 FY06 FY07 FY08 FY09 FY10 FY11 Debt to Debt Equity 26.5% Debt to Debt Equity
Slide 10: FY 2011 Earnings Outlook Assumptions
FY 2011 Earnings Outlook Assumptions Segment Sales & Operating Margins FY 2011 Sales change versus FY 2010 Industrial North America 19.8 % -- 21.8 % Industrial International 18.6 % -- 20.6 % Aerospace 6.7 % -- 8.7 % Climate & Industrial Controls 14.6 % -- 15.6 % FY 2011 Operating margin percentages
Slide 11: FY 2011 Earnings Outlook Assumptions
FY 2011 Earnings Outlook Assumptions below Operating Margin (+/- 1.0%) Corporate Admin $157M Interest Expense $ 98M Other Expense (Inc.) $133M Total $388M Tax Rate 27%
Slide 12: Income Statement – 2nd Quarter
Income Statement – nd Quarter Dollars in millions % of Sales % of Sales Net Sales 2,866.6 $ 100.0 % 2,354.7 $ 100.0 % Cost of sales 2,195.7 76.6 % 1,869.5 79.4 % Gross profit 670.9 23.4 % 485.2 20.6 % S, G & A 345.7 12.1 % 309.8 13.2 % Interest expense 25.6 .9 % 25.0 1.1 % Other (income) expense, ne
Slide 13: Income Statement – 1st Half
Income Statement – st Half Dollars in millions % of Sales % of Sales Net Sales 5,695.9 $ 100.0 % 4,591.9 100.0 % Cost of sales 4,333.6 76.1 % 3,670.4 79.9 % Gross profit 1,362.3 23.9 % 921.5 20.1 % S, G & A 679.2 11.9 % 611.7 13.3 % Interest expense 50.3 .9 % 50.8 1.1 % Other (income) expense, net (