Parker-hannifin Corporation · NYSE:PH
Parker-hannifin — Q2 FY2009 Earnings Presentation
12 slides from Parker-hannifin's earnings presentation, Jan 20, 2009
Slide 1: Financial Highlights
Financial Highlights Diluted Earnings per Share 2 Quarter nd $2.56 $2.47 $.96 $1.23 $.00 $.50 $1.00 $1.50 $2.00 $2.50 $3.00 Q2 FY09 Q2 FY08 FY09 YTD FY08 YTD
Slide 2: Financial Highlights: Sales – Quarter and Half
Financial Highlights Sales – Quarter and 1 Half Dollars in millions FY2009 % Change FY2008 FY2009 % Change FY2008 Sales As reported 2,689 $ (5.0)% 2,829 $ 5,753 $ 2.4 % 5,616 $ Acquisitions 6.3 % 5.4 % Currency (170) (6.0)% (119) (2.1)% Adjusted Sales 2,680 $ (5.3)% 5,568 $ (0.9)% 2nd Quarter Year T
Slide 3: Segment Reporting: Industrial North America
Segment Reporting Industrial North America Dollars in millions FY2009 % Change FY2008 FY2009 % Change FY2008 Sales As reported $ 0.2 % $ 2,100 $ 5.2 % 1,997 $ Acquisitions 8.7 % 8.1 % Currency (19) (1.9)% (19) (0.9)% Adjusted Sales $ (6.6)% 1,957 $ (2.0)% Operating Margin As reported $ $ $ $ % of Sa
Slide 4: Segment Reporting: Industrial International
Segment Reporting Industrial International Dollars in millions FY2009 % Change FY2008 FY2009 % Change FY2008 Sales As reported 1,043 $ (11.5)% 1,178 $ 2,266 $ (0.6)% 2,279 $ Acquisitions 7.4 % 5.4 % Currency (133) (11.4)% (86) (3.8)% Adjusted Sales 1,089 $ (7.5)% 2,229 $ (2.2)% Operating Margin As r
Slide 5: Segment Reporting: Aerospace
Segment Reporting Aerospace Dollars in millions FY2009 % Change FY2008 FY2009 % Change FY2008 Sales As reported $ 10.0 % $ $ 11.0 % $ Acquisitions 1.2 % 2.1 % Currency (5) (1.2)% (4) (0.5)% Adjusted Sales $ 10.0 % $ 9.4 % Operating Margin As reported $ $ $ $ % of Sales 14.7 % 12.1 % 14.5 % 12.7 % 2n
Slide 6: Segment Reporting: Climate & Industrial Controls
Segment Reporting Climate & Industrial Controls Dollars in millions FY2009 % Change FY2008 FY2009 % Change FY2008 Sales As reported $ (21.8)% $ $ (9.8)% $ Acquisitions - - Currency (12) (5.1)% (10) (2.1)% Adjusted Sales $ (16.7)% $ (7.7)% Operating Margin As reported (13) $ $ $ $ % of Sales (7.2)% 2
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 DEC SEPT DEC SEPT Total Parker 20 % - 1 % + 10 % + 7 % + Industrial North America 18 % - 2 % + 4 % + 0% Industri
Slide 8: Strong Cash Flow
Strong Cash Flow Cash from Operating Activities Quarter $474 $445 $0 $60 $120 $180 $240 $300 $360 $420 $480 $540 $600 FY09 FY08 nd
Slide 9: Financial Leverage
Slide17 Financial Leverage Debt to Debt Equity 38.8% 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 YTD 38.8% Debt to Debt Equity (36.6% net Debt)
Slide 10: FY 2009 Earnings Outlook Assumptions
FY 2009 Earnings Outlook Assumptions Segment Sales & Operating Income FY 2009 Sales change versus FY 2008 Industrial North America (8.8)% -- (8.4)% Industrial International (17.3)% -- (16.9)% Aerospace 3.2 % -- 3.6 % Climate & Industrial Controls (17.3)% -- (16.9)% FY 2009 Operating margin percentag
Slide 11: Income Statement – Quarter
Income Statement – 2 Quarter nd Dollars in millions % of Sales % of Sales Net Sales 2,688.7 $ 100.0 % 2,829.1 $ 100.0 % Cost of sales 2,121.5 78.9 % 2,194.1 77.6 % Gross profit 567.2 21.1 % 635.0 22.4 % S, G & A 337.2 12.5 % 319.0 11.3 % Interest expense 30.3 1.1 % 26.0 .9 % Other expense (income),
Slide 12: Income Statement – Half
Income Statement – 1 Half ST Dollars in millions % of Sales % of Sales Net Sales 5,753.3 $ 100.0 % 5,616.3 $ 100.0 % Cost of sales 4,458.6 77.5 % 4,316.4 76.9 % Gross profit 1,294.7 22.5 % 1,299.9 23.1 % S, G & A 669.9 11.6 % 643.9 11.5 % Interest expense 58.4 1.0 % 48.4 .8 % Other expense (income),