Parker-hannifin Corporation · NYSE:PH
Parker-hannifin — Q1 FY2011 Earnings Presentation
15 slides from Parker-hannifin's earnings presentation, Oct 19, 2010
Slide 1: Quarterly Earnings Release 1st Quarter FY2011
Parker Hannifin Corporation Quarterly Earnings Release st Quarter FY2011 October 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 o
Slide 2: Financial Highlights
Financial Highlights Diluted Earnings per Share 1 Quarter $1.51 $.45 $.00 $.20 $.40 $.60 $.80 $1.00 $1.20 $1.40 $1.60 $1.80 $2.00 Q1 FY11 Q1 FY10 st
Slide 3: Slide 3
Slide 4: Segment Reporting: Industrial North America
Segment Reporting Industrial North America Dollars in millions FY2011 % Change FY2010 Sales As reported 1,064 $ 36.0 % $ Acquisitions - -- % Currency 0.4 % Adjusted Sales 1,061 $ 35.6 % Operating Margin As reported $ $ % of Sales 17.8 % 9.7 % 1st Quarter
Slide 5: Segment Reporting: Industrial International
Segment Reporting Industrial International Dollars in millions FY2011 % Change FY2010 Sales As reported 1,093 $ 28.5 % $ Acquisitions - -- % Currency (27) (3.2)% Adjusted Sales 1,120 $ 31.7 % Operating Margin As reported $ $ % of Sales 16.8 % 7.3 % 1st Quarter
Slide 6: Segment Reporting: Aerospace
Segment Reporting Aerospace Dollars in millions FY2011 % Change FY2010 Sales As reported $ 4.8 % $ Acquisitions 0.6 % Currency (1) (0.2)% Adjusted Sales $ 4.4 % Operating Margin As reported $ $ % of Sales 10.0 % 12.7 % 1st Quarter
Slide 7: Segment Reporting: Climate & Industrial Controls
Segment Reporting Climate & Industrial Controls Dollars in millions FY2011 % Change FY2010 Sales As reported $ 25.5 % $ Acquisitions 0.9 % Currency (1) (0.3)% Adjusted Sales $ 24.9 % Operating Margin As reported $ $ % of Sales 9.2 % 5.6 % 1st 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 SEPT '10 JUN '10 SEPT '09 JUN '09 Total Parker 29 % + 35 % + 25 % - 38 % - Industrial North America 31 % + 46 % + 27 % - 4
Slide 9: Strong Cash Flow
Strong Cash Flow Cash from Operating Activities st Quarter $123 $260 $0 $100 $200 $300 $400 $500 $600 FY11 FY10 FY11 Cash from Operating Activities As reported $122,880 Pension plan contribution 200,000 Adjusted $322,880 FY11 Cash from Operating Activities As A % of Sales As reported 4.3% Pension pl
Slide 10: Financial Leverage
Financial Leverage 30.4% 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 FY10 FY11 Debt to Debt Equity 30.4% Debt to Debt Equity (19.9% net Debt)
Slide 11: FY 2011 Earnings Outlook Assumptions
FY 2011 Earnings Outlook Assumptions Segment Sales & Operating Margins FY 2011 Sales change versus FY 2010 Industrial North America 13.4 % -- 16.4 % Industrial International 13.3 % -- 16.3 % Aerospace 4.1 % -- 6.7 % Climate & Industrial Controls 12.3 % -- 15.3 % FY 2011 Operating margin percentages
Slide 12: FY 2011 Earnings Outlook Assumptions
FY 2011 Earnings Outlook Assumptions below Operating Margin (+/- 2.0%) Corporate Admin $161M Interest Expense $ 98M Other Expense (Inc.) $152M Total $411M Tax Rate 29%
Slide 13: Questions & Answers...
Questions & Answers...
Slide 14: Appendix
Appendix Income Statement st Quarter FY2011
Slide 15: Income Statement – Quarter
Income Statement – 1 Quarter st Quarter Dollars in millions % of Sales % of Sales Net Sales 2,829.3 $ 100.0 % 2,237.2 $ 100.0 % Cost of sales 2,137.9 75.6 % 1,801.0 80.5 % Gross profit 691.4 24.4 % 436.2 19.5 % S, G & A 333.6 11.8 % 301.8 13.4 % Interest expense 24.6 .8 % 25.7 1.2 % Other (income),