Parker-hannifin Corporation · NYSE:PH
Parker-hannifin — Q1 FY2016 Earnings Presentation
24 slides from Parker-hannifin's earnings presentation, Oct 22, 2015
Slide 1: 1st Quarter Fiscal Year 2016 Earnings Release
1st Quarter Fiscal Year 2016 Earnings Release Parker Hannifin Corporation October 22, 2015 Exhibit 99.2
Slide 2: Forward-Looking Statements and Non-GAAP Financial Measures Safe Harbor
Forward-Looking Statements and Non-GAAP Financial Measures Safe Harbor Forward-looking statements contained in this and other written and oral reports are made based on known events and circumstances at the time of release, and as such, are subject in the future to unforeseen uncertainties and risks
Slide 3: Agenda
Agenda 3 • CEO Comments • Results & Outlook • Questions and Answers
Slide 4: Highlights 1st Quarter FY2016
Highlights 1st Quarter FY2016 • Responding Well in a Challenging Environment • First Quarter Sales of $2.9B • Adjusted Segment Operating Margins 15.3% • As Reported Segment Operating Margins 14.5% • Adjusted Earnings per Share of $1.52 • As Reported Earnings per Share of $1.41 • New Win Strategy Dri
Slide 5: Diluted Earnings Per Share 1st Quarter FY2016
Diluted Earnings Per Share 1st Quarter FY2016 5 *Adjusted for Business Realignment Charges
Slide 6: Influences on Adjusted Earnings Per Share 1st Quarter FY2016 vs. FY2015
Influences on Adjusted Earnings Per Share 1st Quarter FY2016 vs. 1st Quarter FY2015 6 *Adjusted for Business Realignment Charges
Slide 7: Sales & Segment Operating Margin Total Parker
Sales & Segment Operating Margin Total Parker 7 $ in millions 1st Quarter FY2016 % Change FY2015 Sales As Reported 2,869$ (12.3)% 3,270$ Acquisitions 12 0.4 % Currency (187) (5.7)% Organic Sales 3,044$ (7.0)% FY2016 % of Sales FY2015 % of Sales Segment Operating Margin As Reported 416$ 14.5 % 519$ 1
Slide 8: Sales & Segment Operating Margin Diversified Industrial North America
Sales & Segment Operating Margin Diversified Industrial North America 8 $ in millions 1st Quarter FY2016 % Change FY2015 Sales As Reported 1,286$ (12.6)% 1,472$ Acquisitions 3 0.2 % Currency (23) (1.5)% Organic Sales 1,306$ (11.3)% FY2016 % of Sales FY2015 % of Sales Segment Operating Margin As Repo
Slide 9: Sales & Segment Operating Margin Diversified Industrial International
Sales & Segment Operating Margin Diversified Industrial International 9 $ in millions 1st Quarter FY2016 % Change FY2015 Sales As Reported 1,038$ (17.8)% 1,263$ Acquisitions 9 0.7 % Currency (161) (12.7)% Organic Sales 1,190$ (5.8)% FY2016 % of Sales FY2015 % of Sales Segment Operating Margin As Rep
Slide 10: Sales & Segment Operating Margin Aerospace Systems
Sales & Segment Operating Margin Aerospace Systems 10 $ in millions 1st Quarter FY2016 % Change FY2015 Sales As Reported 545$ 1.9 % 535$ Acquisitions - - % Currency (3) (0.6)% Organic Sales 548$ 2.5 % FY2016 % of Sales FY2015 % of Sales Segment Operating Margin As Reported 74$ 13.6 % 65$ 12.2 % Busi
Slide 11: Order Rates
Order Rates 11 Excludes Acquisitions, Divestitures & Currency 3-month year-over-year comparisons of total dollars, except Aerospace Systems Aerospace Systems is calculated using a 12-month rolling average Sep 2015 Jun 2015 Sep 2014 Jun 2014 Total Parker 11 %- 9 %- 5 %+ 4 %+ Diversified Industrial No
Slide 12: Adjusted Cash Flow from Operating Activities
Adjusted Cash Flow from Operating Activities FY2016 Q1 12 1st Quarter Full Year FY 2016 % of Sales FY 2015 % of Sales As Reported Cash Flow From Operating Activities 5 0.2% 261 8.0% Discretionary Pension Plan Contribution 200 Adjusted Cash Flow From Operating Activities 205 7.1% 261 8.0%
Slide 13: FY2016 Guidance
FY2016 Guidance Adjusted EPS Revised to $6.10 Midpoint 13 FY16 Adjusted Segment Operating Margins exclude FY16 Business Realignment Charges FY16 Adjusted Earnings Per Share excludes FY16 Business Realignment Charges Sales Growth vs. Prior Year Diversified Industrial North America (14.1%) - (10.1%) D
Slide 14: FY2016 Guidance Reconciliation to Prior Guidance
FY2016 Guidance Reconciliation to Prior Guidance 14 *Adjusted for Business Realignment Charges
Slide 15: AIWA
PH AIWA
Slide 16: Appendix
Appendix • Consolidated Statement of Income • Reconciliation of EPS • Business Segment Information • Reconciliation of Segment Operating Income & Segment Operating Margin • Consolidated Balance Sheet • Consolidated Statement of Cash Flows • Reconciliation of Forecasted EPS • Supplemental Sales Infor
Slide 17: Consolidated Statement of Income (Unaudited)
Consolidated Statement of Income 17 (Unaudited) Three Months Ended September 30, (Dollars in thousands except per share amounts) 2015 2014 Net sales 2,869,348$ 3,269,932$ Cost of sales 2,200,904 2,459,865 Gross profit 668,444 810,067 Selling, general and administrative expenses 370,214 400,840 Inter
Slide 18: Reconciliation of EPS (Unaudited)
Reconciliation of EPS 18 (Unaudited) 2015 2014 Earnings per diluted share 1.41$ 1.85$ Adjustments: Business realignment charges 0.11 0.04 Adjusted earnings per diluted share 1.52$ 1.89$ Three Months Ended September 30,
Slide 19: Business Segment Information (Unaudited)
Business Segment Information 19 (Unaudited) Three Months Ended September 30, (Dollars in thousands) 2015 2014 Net sales Diversif ied Industrial: North America 1,286,330$ 1,471,812$ International 1,038,447 1,263,497 Aerospace Systems 544,571 534,623 Total 2,869,348$ 3,269,932$ Segment operating incom
Slide 20: Reconciliation of Segment Operating Income & Segment Operating Margin
Reconciliation of Segment Operating Income & Segment Operating Margin 20 (Unaudited) Operating income Margin As reported segment operating income 416,046$ 14.5% Adjustments: Business realignment charges 21,788 Adjusted segment operating income 437,834$ 15.3% Three Months Ended September 30, 2015
Slide 21: Consolidated Balance Sheet (Unaudited)
Consolidated Balance Sheet 21 (Unaudited) (Unaudited) September 30, June 30, September 30, (Dollars in thousands) 2015 2015 2014 Assets Current assets: Cash and cash equivalents 974,268$ 1,180,584$ 1,092,137 Marketable securities and other investments 815,483 733,490 945,431 Trade accounts receivabl
Slide 22: Consolidated Statement of Cash Flows (Unaudited)
Consolidated Statement of Cash Flows 22 (Unaudited) Three Months Ended September 30, (Dollars in thousands) 2015 2014 Cash flows from operating activities: Net income 195,026$ 280,171$ Depreciation and amortization 78,222 81,768 Stock incentive plan compensation 35,381 40,559 Gain on sale of busines
Slide 23: Reconciliation of Forecasted EPS (Unaudited)
Reconciliation of Forecasted EPS 23 (Unaudited) (Amounts in dollars) Fiscal Year 2016 Forecasted earnings per diluted share $5.30 to $5.90 Adjustments: Business realignment charges .50 Adjusted forecasted earnings per diluted share $5.80 to $6.40
Slide 24: Supplemental Sales Information Global Technology Platforms
Supplemental Sales Information Global Technology Platforms 24 (Unaudited) (Dollars in thous nds) Three Months Ended Sept 30, 2015 2014 Net sales Diversif ied Industrial: Motion Systems 802,495$ 947,264$ Flow and Process Control 881,911 1,055,885 Filtration and Engineered Materials 640,371 732,160 Ae