Parker-hannifin Corporation · NYSE:PH
Parker-hannifin — Q4 FY2007 Earnings Presentation
11 slides from Parker-hannifin's earnings presentation, Aug 1, 2007
Slide 1: Financial Highlights: EPS from Continuing Operations
Financial Highlights EPS from Continuing Operations th Quarter and Total Year $1.55 $1.84 $7.01 $5.28 $0.00 $1.00 $2.00 $3.00 $4.00 $5.00 $6.00 $7.00 $8.00 Q4 FY07 Q4 FY06 FY07 FY06
Slide 2: Financial Highlights: Sales
Financial Highlights Sales – th Quarter and Total Year Dollars in millions FY2007 % Change FY2006 FY2007 % Change FY2006 Sales As reported 2,874 $ 9.8 % 2,617 $ 10,718 $ 14.2 % 9,386 $ Acquisitions 4.6 % 6.2 % Currency 2.2 % 2.6 % Adjusted Sales 2,695 $ 3.0 % 9,892 $ 5.4 % 4th Quarter YTD
Slide 3: Segment Reporting: Industrial North America
Segment Reporting Industrial North America Dollars in millions FY2007 % Change FY2006 FY2007 % Change FY2006 Sales As reported 1,055 $ (1.6)% 1,072 $ 4,064 $ 1.8 % 3,993 $ Acquisitions 2.0 % 2.5 % Currency 0.2 % 0.1 % Adjusted Sales 1,032 $ (3.8)% 3,962 $ (0.8)% Operating Margin As reported $ $ $ $
Slide 4: Industrial International
Segment Reporting Industrial International Dollars in millions FY2007 % Change FY2006 FY2007 % Change FY2006 Sales As reported 1,083 $ 30.3 % $ 3,901 $ 34.4 % 2,903 $ Acquisitions 10.8 % 14.3 % Currency 6.5 % 7.6 % Adjusted Sales $ 13.0 % 3,264 $ 12.5 % Operating Margin As reported $ $ $ $ % of Sale
Slide 5: Aerospace
Segment Reporting Aerospace Dollars in millions FY2007 % Change FY2006 FY2007 % Change FY2006 Sales As reported $ 5.9 % $ 1,685 $ 12.0 % 1,505 $ Acquisitions 0.6 % 1.0 % Currency 0.7 % 0.8 % Adjusted Sales $ 4.6 % 1,658 $ 10.2 % Operating Margin As reported $ $ $ $ % of Sales 15.1 % 15.3 % 16.0 % 14
Slide 6: Climate & Industrial Controls
Segment Reporting Climate & Industrial Controls Dollars in millions FY2007 % Change FY2006 FY2007 % Change FY2006 Sales As reported $ (0.7)% $ 1,068 $ 8.4 % $ Acquisitions 2.1 % 5.7 % Currency -- -- % 0.3 % Adjusted Sales $ (2.8)% 1,008 $ 2.4 % Operating Margin As reported $ $ $ $ % of Sales 8.7 % 1
Slide 7: Strong Cash Flow
Strong Cash Flow – Cash From Operations $0 $100 $200 $300 $400 $500 $600 $700 $800 $900 $1,000 4.0% 6.0% 8.0% 10.0% 12.0% FY 07 - $955 $161 pension contribution; $61 incremental to FY06 Dollars in millions
Slide 8: Financial Leverage
Financial Leverage Debt to Debt Equity 21.4% 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 Not to exceed 37% over the cycle
Slide 9: FY 2008 Earnings Outlook Assumptions
FY 2008 Earnings Outlook Assumptions Segment Sales & Operating Income FY 2008 Sales change versus FY 2007 Industrial North America .5 % -- 1.5 % Industrial International 8.9 % -- 9.9 % Aerospace 0.0 % -- 1.0 % Climate & Industrial Controls 0.0 % -- 1.0 % FY 2008 Operating margin percentages Industri
Slide 10: Income Statement – 4th Quarter
Income Statement – th Quarter Dollars in millions % of Sales % of Sales Net Sales 2,874.4 $ 100.0 % 2,616.7 $ 100.0 % Cost of sales 2,223.8 77.4 % 2,054.0 78.5 % Gross profit 650.6 22.6 % 562.7 21.5 % S, G & A 333.4 11.6 % 277.1 10.6 % Interest expense 21.5 .7 % 18.7 .7 % Other (income) expense (2.2
Slide 11: Income Statement – Total Year
Income Statement – Total Year Dollars in millions % of Sales % of Sales Net Sales 10,718.1 $ 100.0 % 9,385.9 $ 100.0 % Cost of sales 8,273.0 77.2 % 7,367.6 78.5 % Gross profit 2,445.1 22.8 % 2,018.3 21.5 % S, G & A 1,226.9 11.4 % 1,036.6 11.0 % Interest expense 83.4 .8 % 75.8 .8 % Other (income) exp