Parker-hannifin Corporation · NYSE:PH
Parker-hannifin — Q2 FY2012 Earnings Presentation
13 slides from Parker-hannifin's earnings presentation, Jan 20, 2012
Slide 1: Financial Highlights
Financial Highlights Diluted Earnings per Share nd Quarter and Year-to-Date $1.56 $1.39 $3.47 $2.90 $.00 $.50 $1.00 $1.50 $2.00 $2.50 $3.00 $3.50 $4.00 $4.50 $5.00 Q2 FY12 Q2 FY11 FY12 FY11
Slide 2: Financial Highlights
Financial Highlights Sales – nd Quarter Dollars in millions FY2012 % Change FY2011 FY2012 % Change FY2011 Sales As reported 3,107 $ 8.4 % 2,867 $ 6,340 $ 11.3 % 5,696 $ Acquisitions 0.3 % 0.6 % Currency 0.0 % 1.5 % Adjusted Sales 3,097 $ 8.1 % 6,222 $ 9.2 % Operating Margin As reported $ $ $ $ % of
Slide 3: Segment Reporting: Industrial North America
Segment Reporting Industrial North America Dollars in millions FY2012 % Change FY2011 FY2012 % Change FY2011 Sales As reported 1,183 $ 13.2 % 1,046 $ 2,388 $ 13.2 % 2,110 $ Acquisitions 0.4 % 0.7 % Currency (3) (0.3)% 0.1 % Adjusted Sales 1,182 $ 13.1 % 2,372 $ 12.4 % Operating Margin As reported $
Slide 4: Segment Reporting: Industrial International
Segment Reporting Industrial International Dollars in millions FY2012 % Change FY2011 FY2012 % Change FY2011 Sales As reported 1,219 $ 6.2 % 1,147 $ 2,508 $ 12.0 % 2,240 $ Acquisitions 0.5 % 0.7 % Currency 0.4 % 3.6 % Adjusted Sales 1,209 $ 5.3 % 2,411 $ 7.7 % Operating Margin As reported $ $ $ $ %
Slide 5: Segment Reporting: Aerospace
Segment Reporting Aerospace Dollars in millions FY2012 % Change FY2011 FY2012 % Change FY2011 Sales As reported $ 8.0 % $ $ 10.9 % $ Acquisitions 0.0 % 0.0 % Currency 0.0 % 0.1 % Adjusted Sales $ 8.0 % $ 10.8 % Operating Margin As reported $ $ $ $ % of Sales 14.2 % 13.8 % 14.0 % 12.0 % 2nd Quarter Y
Slide 6: Segment Reporting: Climate & Industrial Controls
Segment Reporting Climate & Industrial Controls Dollars in millions FY2012 % Change FY2011 FY2012 % Change FY2011 Sales As reported $ (2.9)% $ $ 0.4 % $ Acquisitions 0.0 % 0.2 % Currency (1) (0.5)% 0.7 % Adjusted Sales $ (2.4)% $ (0.5)% Operating Margin As reported $ $ $ $ % of Sales 4.7 % 4.4 % 6.6
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 rolling average DEC '11 SEPT '11 DEC '10 SEPT '10 Total Parker 3 % + 9 % + 29 % + 29 % + Industrial North America 8 % + 16 % + 26 % + 31
Slide 8: Strong Cash Flow
Strong Cash Flow Cash from Operating Activities nd Quarter and Year-To- Date Cash From Operating Activities Q2 '12 Q2 '11 As Reported $ 254M $285M As Reported % Sales 8.2% 10.0% Year-to-Date Cash from Operating Activities: YTD '12 YTD '11 As Reported $563M $408M As Reported % Sales 8.9% 7.2%
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 25.2% Debt to Debt Equity (19.5% net Debt) 25.2%
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 8.4 % -- 10.4 % Industrial International 1.9 % -- 3.9 % Aerospace 7.1 % -- 9.1 % Climate & Industrial Controls (2.7) % -- .3 % FY 2012 Operating margin percentages Indu
Slide 11: Earnings Outlook – FY12
Low Midpoint High Diluted Earnings Per Share 6.90 $ $ 7.10 $ 7.30 Earnings Outlook – FY12 Questions & Answers... ************************************************ ************************************************ ************************************************ ****************************************
Slide 12: Income Statement – 2nd Quarter
Income Statement – nd Quarter Quarter Dollars in millions % of Sales % of Sales Net Sales 3,106.8 $ 100.0 % 2,866.6 $ 100.0 % Cost of sales 2,381.3 76.6 % 2,195.7 76.6 % Gross profit 725.5 23.4 % 670.9 23.4 % S, G & A 368.7 11.9 % 345.7 12.1 % Interest expense 23.8 .8 % 25.6 .9 % Other (income), net
Slide 13: Income Statement – 1st Half
Income Statement – st Half Dollars in millions % of Sales % of Sales Net Sales 6,340.7 $ 100.0 % 5,695.9 $ 100.0 % Cost of sales 4,795.8 75.6 % 4,333.6 76.1 % Gross profit 1,544.9 24.4 % 1,362.3 23.9 % S, G & A 755.1 11.9 % 679.2 11.9 % Interest expense 47.0 .8 % 50.3 .9 % Other (income), net (7.7)