Parker-hannifin Corporation · NYSE:PH
Parker-hannifin — Q4 FY2010 Earnings Presentation
13 slides from Parker-hannifin's earnings presentation, Aug 3, 2010
Slide 1: Financial Highlights
Financial Highlights Diluted Earnings per Share th Quarter and Total Year $1.35 $.31 $3.40 $3.13 $.00 $.50 $1.00 $1.50 $2.00 $2.50 $3.00 $3.50 $4.00 Q4 FY10 Q4 FY09 FY10 FY09
Slide 2: Financial Highlights: Sales – 4th Quarter and Total Year
Financial Highlights Sales – th Quarter and Total Year Dollars in millions FY2010 % Change FY2009 FY2010 % Change FY2009 Sales As reported 2,786 $ 26.0 % 2,211 $ 9,993 $ (3.1)% 10,309 $ Acquisitions (0.0)% 0.8 % Currency (14) (0.6)% 1.2 % Adjusted Sales 2,799 $ 26.6 % 9,783 $ (5.1)% 4th Quarter Tota
Slide 3: Segment Reporting: Industrial North America
Segment Reporting Industrial North America Dollars in millions FY2010 % Change FY2009 FY2010 % Change FY2009 Sales As reported 1,034 $ 33.1 % $ 3,624 $ (3.0)% 3,735 $ Acquisitions - -- % 0.6 % Currency 0.9 % 0.5 % Adjusted Sales 1,027 $ 32.2 % 3,581 $ (4.1)% Operating Margin As reported $ $ $ $ % of
Slide 4: Segment Reporting: Industrial International
Segment Reporting Industrial International Dollars in millions FY2010 % Change FY2009 FY2010 % Change FY2009 Sales As reported 1,034 $ 30.4 % $ 3,811 $ (2.2)% 3,896 $ Acquisitions - -- % 1.5 % Currency (20) (2.5)% 2.6 % Adjusted Sales 1,054 $ 32.9 % 3,652 $ (6.3)% Operating Margin As reported $ (6)
Slide 5: Segment Reporting: Aerospace
Segment Reporting Aerospace Dollars in millions FY2010 % Change FY2009 FY2010 % Change FY2009 Sales As reported $ 5.9 % $ 1,744 $ (7.4)% 1,883 $ Acquisitions 0.3 % 0.1 % Currency (1) (0.3)% 0.1 % Adjusted Sales $ 5.9 % 1,741 $ (7.6)% Operating Margin As reported $ $ $ $ % of Sales 13.4 % 13.0 % 11.9
Slide 6: Segment Reporting: Climate & Industrial Controls
Segment Reporting Climate & Industrial Controls Dollars in millions FY2010 % Change FY2009 FY2010 % Change FY2009 Sales As reported $ 27.0 % $ $ 2.4 % $ Acquisitions - -- % Currency - -- % 0.7 % Adjusted Sales $ 27.0 % $ 1.7 % Operating Margin As reported $ $ $ (4) $ % of Sales 8.5 % 0.5 % 6.6 % (0.
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 JUN '10 MAR '10 JUN '09 MAR '09 Total Parker 35 % + 23 % + 38 % - 34 % - Industrial North America 46 % + 30 % + 40 % - 35
Slide 8: Strong Cash Flow
Strong Cash Flow Cash from Operating Activities Total Year
Slide 9: Financial Leverage
Financial Leverage 28.9% 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 Debt to Debt Equity 28.9% Debt to Debt Equity (21.6% net Debt)
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 5.7 % -- 9.7 % Industrial International 1.6 % -- 4.6 % Aerospace 2.5 % -- 5.5 % Climate & Industrial Controls 3.7 % -- 7.7 % FY 2011 Operating margin percentages Indust
Slide 11: FY 2011 Earnings Outlook Assumptions
FY 2011 Earnings Outlook Assumptions below Operating Margin (+/- 1.0%) Corporate Admin $160M Interest Expense $100M Other Expense (Inc.) $160M Total $420M Tax Rate 30 %
Slide 12: Income Statement – 4th Quarter
Income Statement – th Quarter Quarter Dollars in millions % of Sales % of Sales Net Sales 2,786.5 $ 100.0 % 2,211.0 $ 100.0 % Cost of sales 2,114.2 75.9 % 1,814.1 82.0 % Gross profit 672.3 24.1 % 396.9 18.0 % S, G & A 349.3 12.5 % 302.5 13.7 % Interest expense 26.9 1.0 % 25.3 1.1 % Other expense, ne
Slide 13: Income Statement – Total Year
Income Statement – Total Year Total Year Dollars in millions % of Sales % of Sales Net Sales 9,993.2 $ 100.0 % 10,309.0 100.0 % Cost of sales 7,847.1 78.5 % 8,181.3 79.4 % Gross profit 2,146.1 21.5 % 2,127.7 20.6 % S, G & A 1,277.1 12.8 % 1,290.4 12.5 % Interest expense 103.6 1.0 % 112.1 1.1 % Other