Parker-hannifin Corporation · NYSE:PH
Parker-hannifin — Q1 FY2009 Earnings Presentation
11 slides from Parker-hannifin's earnings presentation, Oct 16, 2008
Slide 1: Financial Highlights
Financial Highlights Diluted Earnings per Share st Quarter $1.33 $1.50 $.00 $.20 $.40 $.60 $.80 $1.00 $1.20 $1.40 $1.60 Q1 FY09 Q1 FY08
Slide 2: Financial Highlights – Sales 1st Quarter
Financial Highlights Sales – st Quarter Dollars in millions FY2009 % Change FY2008 Sales As reported 3,065 $ 10.0 % 2,787 $ Acquisitions 4.6 % Currency 1.8 % Adjusted Sales 2,889 $ 3.7 % 1st Quarter
Slide 3: Industrial North America
Segment Reporting Industrial North America Dollars in millions FY2009 % Change FY2008 Sales As reported 1,107 $ 10.1 % 1,006 $ Acquisitions 7.6 % Currency (0.1)% Adjusted Sales 1,030 $ 2.4 % Operating Margin As reported $ $ % of Sales 14.5 % 15.4 % 1st Quarter
Slide 4: Industrial International
Segment Reporting Industrial International Dollars in millions FY2009 % Change FY2008 Sales As reported 1,223 $ 11.1 % 1,101 $ Acquisitions 3.3 % Currency 4.3 % Adjusted Sales 1,139 $ 3.5 % Operating Margin As reported $ $ % of Sales 16.6 % 16.7 % 1st Quarter
Slide 5: Aerospace
Segment Reporting Aerospace Dollars in millions FY2009 % Change FY2008 Sales As reported $ 12.0 % $ Acquisitions 3.1 % Currency 0.2 % Adjusted Sales $ 8.7 % Operating Margin As reported $ $ % of Sales 14.2 % 13.4 % 1st Quarter
Slide 6: Climate & Industrial Controls
Segment Reporting Climate & Industrial Controls Dollars in millions FY2009 % Change FY2008 Sales As reported $ 1.1 % $ Acquisitions Currency 0.7 % Adjusted Sales $ 0.4 % Operating Margin As reported $ $ % of Sales 6.1 % 6.1 % 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 moving average FY09 FY08 Total Parker 1 % + 7 % + Industrial North America 2 % + 0 % + Industrial International 4 % - 19 % + Aerospace 9
Slide 8: Strong Cash Flow
Strong Cash Flow Cash from Operating Activities st Quarter $270 $307 $0 $60 $120 $180 $240 $300 $360 FY09 FY08
Slide 9: Financial Leverage
Financial Leverage Debt to Debt Equity 35.0% 16.0% 18.0% 20.0% 22.0% 24.0% 26.0% 28.0% 30.0% 32.0% 34.0% 36.0% 38.0% FY00 FY01 FY02 FY03 FY04 FY05 FY06 FY07 FY08 FY09 YTD Goal - Not to exceed 37% over the cycle 29.1% net Debt to Debt Equity
Slide 10: FY 2009 Earnings Outlook Assumptions
FY 2009 Earnings Outlook Assumptions Segment Sales & Operating Income FY 2009 Operating margin percentages Industrial North America 13.6 % -- 14.0 % Industrial International 15.0 % -- 15.4 % Aerospace 12.8 % -- 13.2 % Climate & Industrial Controls 4.5 % -- 4.9 % FY 2009 Sales change versus FY 2008 I
Slide 11: Income Statement – 1st Quarter
Income Statement – st Quarter Dollars in millions % of Sales % of Sales Net Sales 3,064.7 $ 100.0 % 2,787.3 $ 100.0 % Cost of sales 2,337.2 76.3 % 2,122.3 76.1 % Gross profit 727.5 23.7 % 665.0 23.9 % S, G & A 332.7 10.9 % 325.0 11.7 % Interest expense 28.1 .9 % 22.4 .8 % Other expense (income), net