Parker-hannifin Corporation · NYSE:PH
Parker-hannifin — Q2 2010 Earnings Presentation
16 slides from Parker-hannifin's earnings presentation, Jan 19, 2010
Slide 1: Quarterly Earnings Release 2nd Quarter FY 2010
Parker Hannifin Corporation Quarterly Earnings Release 2nd Quarter FY 2010 January 19, 2010 Exhibit 99.2 Forward-Looking Statements 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
Slide 2: Financial Highlights: Diluted Earnings per Share
Financial Highlights Diluted Earnings per Share 2 Quarter $.64 $.96 $1.10 $2.47 $.00 $.50 $1.00 $1.50 $2.00 $2.50 $3.00 Q2 FY10 Q2 FY09 YTD10 YTD09 nd
Slide 3: Financial Highlights: Sales
Financial Highlights Sales – nd Quarter Dollars in millions FY2010 % Change FY2009 Sales As reported 2,355 $ (12.4)% 2,689 $ Acquisitions 0.3 % Currency 3.8 % Adjusted Sales 2,246 $ (16.5)% 2nd Quarter
Slide 4: Segment Reporting: Industrial North America
Segment Reporting Industrial North America Dollars in millions FY2010 % Change FY2009 Sales As reported $ (14.7)% $ Acquisitions 0.4 % Currency 0.7 % Adjusted Sales $ (15.8)% Operating Margin As reported $ $ % of Sales 13.5 % 10.8 % 2nd Quarter
Slide 5: Segment Reporting: Industrial International
Segment Reporting Industrial International Dollars in millions FY2010 % Change FY2009 Sales As reported $ (10.6)% 1,043 $ Acquisitions 0.3 % Currency 8.3 % Adjusted Sales $ (19.2)% Operating Margin As reported $ $ % of Sales 8.9 % 11.0 % 2nd Quarter
Slide 6: Segment Reporting: Aerospace
Segment Reporting Aerospace Dollars in millions FY2010 % Change FY2009 Sales As reported $ (15.4)% $ Acquisitions Currency 0.6 % Adjusted Sales $ (16.0)% Operating Margin As reported $ $ % of Sales 10.2 % 14.7 % 2nd Quarter
Slide 7: Segment Reporting: Climate & Industrial Controls
Segment Reporting Climate & Industrial Controls Dollars in millions FY2010 % Change FY2009 Sales As reported $ (2.4)% $ Acquisitions Currency 2.6 % Adjusted Sales $ (5.0)% Operating Margin As reported $ (13) $ % of Sales 3.5 % (7.2)% 2nd Quarter
Slide 8: 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 DEC '09 SEPT '09 DEC '08 SEPT '0 Total Parker 7 % - 25 % - 20 % - 1 % + Industrial North America 3 % - 27 % - 18 % - 2 % +
Slide 9: Strong Cash Flow
Strong Cash Flow Cash from Operating Activities 1 Half FY10 $606 $445 $0 $100 $200 $300 $400 $500 $600 $700 $800 YTD FY10 YTD FY09 st
Slide 10: Financial Leverage
Financial Leverage 29.9% Debt to Debt Equity (27.3% net Debt)
Slide 11: FY 2010 Earnings Outlook Assumptions
FY 2010 Earnings Outlook Assumptions Segment Sales & Operating Margins FY 2010 Sales change versus FY 2009 Industrial North America (6.3)% -- (10.3)% Industrial International (1.4)% -- (6.4)% Aerospace (7.9)% -- (8.7)% Climate & Industrial Controls (4.3)% -- (6.7)% FY 2010 Operating margin percentag
Slide 12: FY 2010 Earnings Outlook Assumptions
FY 2010 Earnings Outlook Assumptions below Operating Margin (+/- 3.0%) Corporate Admin $142M Interest Expense $101M Other Expense (Inc.) $150M Total $393M Tax Rate 29 %
Slide 13: Questions & Answers...
Questions & Answers...
Slide 14: Appendix
Appendix Income Statement Quarter FY2010 1 Half FY2010 nd st
Slide 15: Income Statement – Quarter
Income Statement – 2 Quarter Quarter Dollars in millions % of Sales % of Sales Net Sales 2,354.7 $ 100.0 % 2,688.6 $ 100.0 % Cost of sales 1,869.5 79.4 % 2,121.4 78.9 % Gross profit 485.2 20.6 % 567.2 21.1 % S, G & A 309.8 13.2 % 337.2 12.5 % Interest expense 25.0 1.1 % 30.3 1.1 % Other expense, net
Slide 16: Income Statement – 1st Half and Total Year
Income Statement – 1st Half Total Year Dollars in millions % of Sales % of Sales Net Sales 4,591.9 $ 100.0 % 5,753.3 $ 100.0 % Cost of sales 3,670.4 79.9 % 4,458.6 77.5 % Gross profit 921.5 20.1 % 1,294.7 22.5 % S, G & A 611.7 13.3 % 669.9 11.6 % Interest expense 50.8 1.1 % 58.4 1.0 % Other expense,