Parker-hannifin Corporation · NYSE:PH
Parker-hannifin — Q3 FY2009 Earnings Presentation
17 slides from Parker-hannifin's earnings presentation, Apr 16, 2009
Slide 1: Parker Hannifin Corporation Quarterly Earnings Release 3rd Quarter FY 2009
Parker Hannifin Corporation Quarterly Earnings Release 3rd Quarter FY 2009 April 16, 2009 Exhibit 99.2
Slide 2: Discussion Agenda
Discussion Agenda CEO 3 Quarter Highlights Key Performance Measures & Outlook Questions & Answers CEO Closing Comments rd
Slide 3: Financial Highlights
Financial Highlights Diluted Earnings per Share 3 Quarter $1.49 $.33 $2.81 $4.05 $.00 $.50 $1.00 $1.50 $2.00 $2.50 $3.00 $3.50 $4.00 $4.50 Q3 FY09 Q3 FY08 FY09 YTD FY08 YTD rd
Slide 4: Financial Highlights
rd Financial Highlights Sales – Quarter and YTD as of March 31 Dollars in millions FY2009 % Change FY2008 FY2009 % Change FY2008 Sales As reported 2,345 $ (26.3)% 3,183 $ 8,098 $ (8.0)% 8,799 $ Acquisitions 4.6 % 5.1 % Currency (218) (6.9)% (338) (3.9)% Adjusted Sales 2,417 $ (24.0)% 7,986 $ (9.2)%
Slide 5: Segment Reporting
Segment Reporting Industrial North America Dollars in millions Sales As reported Acquisitions Currency Adjusted Sales Operating Margin As reported % of Sales FY2009 % Change FY2008 FY2009 % Change FY2008 $ (21.2)% 1,087 $ 2,957 $ (4.1)% 3,084 $ 7.2 % 7.8 % (20) (1.8)% (38) (1.2)% $ (26.6)% 2,754 $ (
Slide 6: Segment Reporting
Segment Reporting Industrial International Dollars in millions FY2009 % Change FY2008 FY2009 % Change FY2008 Sales As reported $ (37.8)% 1,346 $ 3,103 $ (14.4)% 3,624 $ Acquisitions 5.0 % 5.2 % Currency (176) (13.1)% (262) (7.2)% Adjusted Sales $ (29.7)% 3,174 $ (12.4)% Operating Margin As reported
Slide 7: Segment Reporting
Segment Reporting Aerospace Dollars in millions FY2009 % Change FY2008 FY2009 % Change FY2008 Sales As reported $ 2.1 % $ 1,432 $ 7.9 % 1,328 $ Acquisitions 1.4 % Currency (8) (1.7)% (12) (0.9)% Adjusted Sales $ 3.8 % 1,426 $ 7.4 % Operating Margin As reported $ $ $ $ % of Sales 13.7 % 14.5 % 14.2 %
Slide 8: Segment Reporting
Segment Reporting Climate & Industrial Controls Dollars in millions FY2009 % Change FY2008 FY2009 % Change FY2008 Sales As reported $ (38.9)% $ $ (20.5)% $ Acquisitions Currency (15) (5.3)% (25) (3.3)% Adjusted Sales $ (33.6)% $ (17.2)% Operating Margin As reported (7) $ $ (5) $ $ % of Sales (4.3)%
Slide 9: 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 MAR DEC MAR DEC Total Parker 34 % - 20 % - 9 % + 10 % + Industrial North America 35 % - 18 % - 2 % + 4 % + Indus
Slide 10: Strong Cash Flow
Strong Cash Flow Cash from Operating Activities rd Quarter Year to Date $864 $716 $0 $60 $120 $180 $240 $300 $360 $420 $480 $540 $600 $660 $720 $780 $840 $900 FY09 FY08 11.6% Q3 $272M
Slide 11: Financial Leverage
Financial Leverage Debt to Debt Equity 36.8% 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 36.8% Debt to Debt Equity (35.2% net Debt)
Slide 12: FY 2009 Earnings Outlook Assumptions
FY 2009 Earnings Outlook Assumptions Segment Sales & Operating Margins FY 2009 Sales change versus FY 2008 Industrial North America (13.4)% -- (13.2)% Industrial International (22.7)% -- (22.5)% Aerospace 2.3 % -- 2.5 % Climate & Industrial Controls (26.8)% -- (26.6)% FY 2009 Operating margin percen
Slide 13: Earnings Outlook – FY09
Earnings Outlook – FY09 Low High Diluted earnings per share $2.95 $3.15
Slide 14: Questions & Answers...
Questions & Answers...
Slide 15: Appendix
Appendix Income Statements 3 Quarter FY2009 3 Quarter YTD FY2009 rd rd
Slide 16: Income Statement – Quarter
Income Statement – Quarter Dollars in millions % of Sales % of Sales Net Sales 2,344.7 $ 100.0 % 3,182.5 $ 100.0 % Cost of sales 1,908.6 81.4 % 2,447.2 76.9 % Gross profit 436.1 18.6 % 735.3 23.1 % S, G & A 318.0 13.6 % 347.0 10.9 % Interest expense 28.4 1.2 % 25.5 .8 % Other expense (income), net 2
Slide 17: Income Statement – Quarter YTD
rd Income Statement – 3 Quarter YTD Dollars in millions % of Sales % of Sales Net Sales 8,098.1 $ 100.0 % 8,798.9 $ 100.0 % Cost of sales 6,367.3 78.6 % 6,763.7 76.9 % Gross profit 1,730.8 21.4 % 2,035.2 23.1 % S, G & A 987.9 12.2 % 990.9 11.3 % Interest expense 86.8 1.0 % 74.0 .8 % Other expense (i