Parker-hannifin Corporation · NYSE:PH
Parker-hannifin — Q2 FY2004 Earnings Presentation
28 slides from Parker-hannifin's earnings presentation, Jan 20, 2004
Slide 1: Quarterly Earnings Release
Exhibit 99.2 Quarter FY 2004 January 20, 2004 nd Parker Hannifin Corporation Quarterly Earnings Release 2
Slide 2: Forward Looking Statements
Forward Looking Statements The company makes these statements as of the date of this disclosure, and Forward-Looking Statements: Forward-looking statements contained in this and other written and oral reports are made based on known events and circumstances at the time of release, and as such, are s
Slide 3: Today's Agenda
EPS Acquisition/Divestiture Update Financial Results Fiscal Year 2004 Outlook Questions & Answers Today’s Agenda
Slide 4: The Non-GAAP Financial Measure
The Non-GAAP Financial Measure This presentation reconciles sales amounts reported in accordance with U.S. GAAP to sales amounts adjusted to remove the effects of acquisitions and divestitures made within the prior four quarters as well as the effects of currency exchange rates on sales. effects of
Slide 5: EPS - 2nd Quarter
EPS - 2nd Quarter$0.32 2Q FY03 charges. FY03 2Q EPS was Quarter $0.47 2Q FY04 st 1 FY04 2Q EPS was reduced by $0.02 for business realignment EPS—$0.60 $0.55 $0.50 $0.45 $0.40 $0.35 $0.30 $0.25 $0.20 reduced by $0.03 for business realignment charges and $0.02 for an equity investment adjustment. Note
Slide 6: EPS - YTD as of December 31, 2003
$0.84 FY03 FY03 EPS was YTD as of December 31, 2003 $0.95 FY04 FY04 EPS was reduced by $0.06 for business realignment charges. EPS – $1.00 $0.95 $0.90 $0.85 $0.80 $0.75 reduced by $0.04 for business realignment charges and $0.02 for an equity investment adjustment. Note:
Slide 7: Acquisitions/Divestitures
Description Hydraulic pumps & motors Sales $180M Date Pending Acquisitions/Divestitures Name Denison International
Slide 8: 2nd Quarter Sales
FY 2003 $1,517.2 $6.0 $1,511.2 $1,511.2 $1,621.0 6.8% $8.4 $1,612.6 6.7% $79.0 $1,533.6 1.5% FY 2004 Quarter nd 2 Sales – Sales % change Sales from acquisitions & divestitures Sales without acquisitions & divestitures % change Currency effects Sales without acquisitions, divestitures & currency % ch
Slide 9: Income Statement - 2nd Quarter
$4.7 (4.7) 2.6 0.0 0.0 0.0 (7.3) (1.7) ($5.6) Business Realignment & Equity Adj. FY 2003 % of Sales 100.0% 83.0% 17.0% 11.7% -1.3% -0.3% -1.5% 3.8% 1.4% 2.5% Quarter $1,517.2 1,258.8 258.4 177.1 (19.4) (3.8) (23.2) 58.1 20.5 $37.6 $3.5 (3.5) 0.1 0.0 0.0 0.0 (3.6) (1.2) ($2.4) nd 2 Business Realignme
Slide 10: YTD Sales
FY 2003 $3,103.1 $10.6 $3,092.5 $3,092.5 $3,207.9 3.4% $13.4 $3,194.5 3.3% $136.4 $3,058.1 -1.1% FY 2004 YTD Sales – Sales % change Sales from acquisitions & divestitures Sales without acquisitions & divestitures % change Currency effects Sales without acquisitions, divestitures & currency % change
Slide 11: Income Statement - YTD
$6.2 (6.2) 3.5 0.0 0.0 0.0 (9.7) (2.4) ($7.3) Business Realignment & Equity Adj. FY 2003 % of Sales 100.0% 82.5% 17.5% 11.4% -1.3% -0.1% -1.3% 4.8% 1.6% 3.2% $3,103.1 2,558.7 544.4 353.4 (39.1) (2.2) (41.3) 149.7 51.2 $98.5 YTD Business Realignment $10.4 (10.4) 0.2 0.0 (0.2) (0.2) (10.8) (3.6) ($7.2
Slide 12: Industrial North America
$0.0 $0.0 $78.5 5.6% $2.9 YTD $1,397.5 $1,397.5 $1,397.5 FY 2003 $0.0 $0.0 $27.4 4.1% $2.1 2nd Qtr $669.9 $669.9 $669.9 -0.7% $9.9 -1.4% $7.8 -1.9% $99.5 7.2% $6.3 YTD $1,388.4 $1,378.5 $1,370.7 FY 2004 5.0% $5.3 4.2% $4.7 3.5% $52.9 7.5% $2.6 2nd Qtr $703.1 $697.8 $693.1 Sales Operating Margin Indu
Slide 13: Industrial Rest of World
$739.6 $0.0 $739.6 $0.0 $739.6 $48.9 6.6% $3.0 YTD FY 2003 $0.0 $0.0 $22.3 6.0% $2.2 2nd Qtr $373.9 $373.9 $373.9 $863.7 16.8% $3.6 $860.1 16.3% $105.1 $755.0 2.1% $60.9 7.1% $3.3 YTD FY 2004 18.1% $3.1 17.3% $60.7 1.0% $29.6 6.7% $0.2 2nd Qtr $441.6 $438.5 $377.8 Sales Operating margin Industrial R
Slide 14: Aerospace
$552.7 $10.6 $542.1 $0.0 $542.1 $85.2 15.4% $0.9 ($0.8) YTD FY 2003 $6.0 $0.0 $42.7 15.5% $0.5 ($1.0) 2nd Qtr $275.4 $269.4 $269.4 $538.8 -2.5% $0.0 $538.8 -0.6% $3.3 $535.5 -1.2% $64.8 12.0% $0.1 YTD FY 2004 -1.3% $0.0 0.9% $1.8 0.3% $0.0 $30.8 11.3% 2nd Qtr $271.9 $271.9 $270.1 Sales Operating mar
Slide 15: Climate & Industrial Controls
$309.1 $0.0 $309.1 $0.0 $309.1 $25.0 8.1% $0.3 YTD 2nd Qtr $144.4 $0.0 $144.4 $0.0 $144.4 $10.0 6.9% $0.3 $300.7 -2.7% $0.0 $300.7 -2.7% $6.6 $294.1 -4.9% $28.0 9.3% $0.4 YTD $144.7 0.2% $0.0 $144.7 0.2% $3.9 $140.8 -2.5% $10.4 7.2% $0.3 2nd Qtr Sales Operating margin Climate & Industrial Controls A
Slide 16: Other
$104.2 $0.0 $104.2 $0.0 $104.2 $6.3 6.0% $0.0 YTD FY 2003 $53.6 $0.0 $53.6 $0.0 $53.6 $2.5 4.7% $0.0 2nd Qtr $116.4 11.7% $0.0 $116.4 11.7% $13.6 $102.8 -1.3% $9.9 8.5% $0.4 YTD FY 2004 $59.7 11.4% $0.0 $59.7 11.4% $7.7 $52.0 -3.0% $4.2 7.0% $0.4 2nd Qtr Sales Operating margin Other As reported % ch
Slide 17: Balance Sheet - Assets
102.7 27.5 (58.8) (1.7) 15.6 85.3 (42.0) 60.3 6.1 98.6 208.3 Change $ $ $ 35.3 898.9 1,058.6 41.3 87.5 2,121.6 1,674.8 1,079.8 54.5 660.5 5,591.2 2002 $ $ $ 138.0 926.4 999.8 39.6 103.1 2,206.9 1,632.8 1,140.1 60.6 759.1 5,799.5 2003 $ $ $ as of December 31 Balance SheetAssets Assets Current Assets:
Slide 18: Balance Sheet - Liabilities & Shareholders' Equity
Change (544.7) 72.3 38.6 33.0 (400.8) 201.5 427.5 (75.4) 22.3 33.2 208.3 $ $ $ 580.8 371.8 409.1 55.0 1,416.7 773.7 510.2 90.6 128.9 2,671.1 5,591.2 2002 $ $ $ 36.1 444.1 447.7 88.0 1,015.9 975.2 937.7 15.2 151.2 2,704.3 5,799.5 2003 $ $ $ equity as of December 31 shareholders’ and Current liabiliti
Slide 19: Statement of Cash Flows
98.5 129.8 52.6 (31.9) 11.5 260.5 (2.0) (79.1) 10.4 (70.7) 2.2 (162.6) (41.7) (202.1) 1.3 (11.0) 2002 $ $ $ $ $ $ $ 112.5 127.7 135.3 6.6 (3.9) 378.2 (6.9) (70.7) 11.0 (66.6) 32.6 (409.0) (44.4) (420.8) 1.5 (107.7) 2003 $ $ $ $ $ $ $ for the six months ended December 31 Net cash (used in) financing
Slide 20: Financial Leverage
27.2% FY04 2Q FY03 FY02 Debt to Debt Equity FY01 Target FY00 FY99 Financial Leverage 38.0% 36.0% 34.0% 32.0% 30.0% 28.0% 26.0% 24.0% 22.0% 20.0%
Slide 21: Parker New Order Rates - Industrial North America
O 17 J A J 0 3 O J A J 0 2 O J A J 0 1 O J A J 0 0 O J A J 9 9 O J Current month vs. prior year A J 9 8 O Industrial North America J A J 9 7 O J A J 9 6 O J Parker New Order Rates 30 20 10 0 -10 -20 -30 -40
Slide 22: Parker New Order Rates - Industrial R.O.W.
O 5 J A J 0 3 O J A J 0 2 O J A J 0 1 O J A J 0 0 O J A J 9 9 O J Current month vs. prior year A Industrial R.O.W. J 9 8 O J A J 9 7 O J A J 9 6 O J Parker New Order Rates 30 25 20 15 10 5 0 -5 -10 -15
Slide 23: Parker New Order Rates - Aerospace
O 0 J A J 0 3 O J A J 0 2 O J A J 0 1 O J A J 0 0 O J A J 9 9 O Aerospace J A J 9 8 O J A J 9 7 Average last 12 months orders to previous 12 months orders O J A J 9 6 O J Parker New Order Rates 30 20 10 0 -10 -20 -30
Slide 24: Parker New Order Rates - Climate & Industrial Controls
-9 O J A J 0 3 O J Current month vs. prior year A Climate & Industrial Controls J 0 2 O J Parker New Order Rates 30 25 20 15 10 5 0 -5 -10 -15 -20
Slide 25: FY 2004 Outlook - Sales Growth by Segment
0.0% 16.0% - -2.0% -2.0% 7.0% to to to to to 1.0% 13.0% -5.0% -5.0% 4.0% Industrial North America Industrial ROW Aerospace Climate & Industrial Controls Other Sales Growth versus FY 2003 FY 2004 OutlookBusiness Segment
Slide 26: FY 2004 Outlook - Operating Income Change
47.0% 45.0% - -15.0% 10.0% 75.0% to to to to to 37.0% 35.0% -25.0% 0.0% 65.0% Industrial North America Industrial ROW Aerospace Climate & Industrial Controls Other Operating Income change versus FY 2003 FY 2004 OutlookBusiness Segment
Slide 27: FY 2004 Outlook - Corporate Items
vs. FY 2003 vs. FY 2003 same as FY 2003 + 15% to 20% 5% 32.0% + or—Other Expense (Income) FY 2004 Outlook Corporate Admin. Interest Expense Tax Rate Business Segment
Slide 28: Questions & Answers
Questions & Answers... anythingmente Possible: