Parker-hannifin Corporation · NYSE:PH
Parker-hannifin — Q1 FY2012 Earnings Presentation
12 slides from Parker-hannifin's earnings presentation, Oct 18, 2011
Slide 1: Financial Highlights
Financial Highlights Diluted Earnings per Share st Quarter $1.91 $1.79 $1.51 $.00 $.30 $.60 $.90 $1.20 $1.50 $1.80 $2.10 $2.40 Q1 FY12 Q4 FY11 Q1 FY11
Slide 2: Financial Highlights
Financial Highlights Sales – st Quarter Dollars in millions FY2012 % Change FY2011 Sales As reported 3,234 $ 14.3 % 2,829 $ Acquisitions 0.8 % Currency 3.0 % Adjusted Sales 3,126 $ 10.5 % Operating Margin As reported $ $ % of Sales 16.1 % 15.5 % 1st Quarter
Slide 3: Segment Reporting: Industrial North America
Segment Reporting Industrial North America Dollars in millions FY2012 % Change FY2011 Sales As reported 1,205 $ 13.1 % 1,064 $ Acquisitions 1.1 % Currency 0.4 % Adjusted Sales 1,190 $ 11.6 % Operating Margin As reported $ $ % of Sales 18.5 % 17.8 % 1st Quarter
Slide 4: Segment Reporting: Industrial International
Segment Reporting Industrial International Dollars in millions FY2012 % Change FY2011 Sales As reported 1,289 $ 17.9 % 1,093 $ Acquisitions 0.9 % Currency 7.0 % Adjusted Sales 1,202 $ 10.0 % Operating Margin As reported $ $ % of Sales 16.2 % 16.8 % 1st Quarter
Slide 5: Segment Reporting: Aerospace
Segment Reporting Aerospace Dollars in millions FY2012 % Change FY2011 Sales As reported $ 13.9 % $ Acquisitions 0.0 % Currency 0.2 % Adjusted Sales $ 13.7 % Operating Margin As reported $ $ % of Sales 13.8 % 10.0 % 1st Quarter
Slide 6: Segment Reporting: Climate & Industrial Controls
Segment Reporting Climate & Industrial Controls Dollars in millions FY2012 % Change FY2011 Sales As reported $ 3.3 % $ Acquisitions 0.3 % Currency 1.8 % Adjusted Sales $ 1.2 % Operating Margin As reported $ $ % of Sales 8.2 % 9.2 % 1st Quarter
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 rolling average SEPT '11 JUN '11 SEPT '10 JUN '10 Total Parker 9 % + 15 % + 29 % + 35 % + Industrial North America 16 % + 11 % + 31 % + 4
Slide 8: Strong Cash Flow
Strong Cash Flow Cash from Operating Activities st Quarter Cash From Operating Activities Q1 '12 Q1 '11 As Reported $ 309M $123M As Reported % Sales 9.6% 4.3%
Slide 9: Financial Leverage
Financial Leverage 20.0% 22.0% 24.0% 26.0% 28.0% 30.0% 32.0% 34.0% 36.0% 38.0% 40.0% 42.0% FY01 FY02 FY03 FY04 FY05 FY06 FY07 FY08 FY09 FY10 FY11 FY12 YTD Debt to Debt Equity 25.8% Debt to Debt Equity (20.9% net Debt) 25.8%
Slide 10: FY 2012 Earnings Outlook Assumptions
FY 2012 Earnings Outlook Assumptions Segment Sales & Operating Margins FY 2012 Sales change versus FY 2011 Industrial North America 6.5 % -- 10.0 % Industrial International 5.9 % -- 9.4 % Aerospace 7.1 % -- 10.1 % Climate & Industrial Controls 1.1 % -- 4.6 % FY 2012 Operating margin percentages Indu
Slide 11: Earnings Outlook – FY12
Earnings Outlook – FY12 Low Midpoint High Diluted Earnings Per Share 7.25 $ 7.55 $ 7.85 $ Questions & Answers... *********** *********** *********** *********
Slide 12: Income Statement – 1st Quarter
Income Statement – st Quarter Quarter Dollars in millions % of Sales % of Sales Net Sales 3,233.9 $ 100.0 % 2,829.3 $ 100.0 % Cost of sales 2,414.5 74.7 % 2,137.9 75.6 % Gross profit 819.4 25.3 % 691.4 24.4 % S, G & A 386.5 12.0 % 333.6 11.8 % Interest expense 23.2 .7 % 24.6 .8 % Other (income), net