Parker-hannifin Corporation · NYSE:PH
Parker-hannifin — Q1 FY2004 Earnings Presentation
25 slides from Parker-hannifin's earnings presentation, Oct 15, 2003
Slide 1: Parker Hannifin Corporation Quarterly Earnings Release 1st Quarter FY 2004
Parker Hannifin Corporation Quarterly Earnings Release 1 st Quarter FY 2004 Exhibit 99.2 October 15, 2003
Slide 2: Forward Looking Statements
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 of release, and as such, are subject in the future to unforeseen uncertainties and risks. All statements
Slide 3: Today's Agenda
Today’s Agenda EPS Acquisition/Divestiture Update Financial Results Fiscal Year 2004 Outlook Questions & Answers
Slide 4: Non-GAAP Financial Measure
Non-GAAP Financial Measure This presentation reconciles sales amounts reported in accordance with U.S. GAAP to sales amounts adjusted to remove the effects of acquisitions and divestitures made within the prior four quarters as well as the effects of currency exchange rates on sales. The effects of
Slide 5: EPS: 1Q FY04 vs 1Q FY03
$0.60 $0.55 $0.50 $0.45 $0.40 $0.35 $0.30 1Q FY04 1Q FYO3 Possible:
Slide 6: Acquisitions/Divestitures
Acquisitions/Divestitures Name Date Sales Description N/A this period
Slide 7: Sales – 1st Quarter
Sales – 1 st Quarter FY 2004 FY 2003 Sales $1,586.9 $1,585.9 % change 0.1% Sales from acquisitions & divestitures $5.1 $4.6 Sales without acquisitions & divestitures $1,581.8 $1,581.3 % change 0.0% Currency effects $57.6 Sales without acquisitions, divestitures & currency $1,524.2 $1,581.3 % change
Slide 8: Income Statement – 1st Quarter
Income Statement – 1 st Quarter % of Sales % of Sales Net sales $1,586.9 100.0% $1,585.9 100.0% Cost of sales 1,298.8 81.8% 1,299.9 82.0% Gross profit 288.1 18.2% 286.0 18.0% S, G & A 180.2 11.4% 176.2 11.1% Goodwill impairment loss 0.0 0.0% 0.0 0.0% Other income (deductions) Interest expense (21.8)
Slide 9: Industrial North America
Industrial North America 1st Qtr YTD 1st Qtr YTD Sales As reported $685.3 $685.3 $727.6 $727.6 % change -5.8% -5.8% Acquisitions $4.6 $4.6 $0.0 $0.0 without Acquisitions $680.7 $680.7 $727.6 $727.6 % change -6.4% -6.4% Currency effects $3.1 $3.1 $0.0 $0.0 without Acquisitions & Currency $677.6 $677.
Slide 10: Industrial Rest of World
Industrial Rest of World 1st Qtr YTD 1st Qtr YTD Sales As reported $422.0 $422.0 $365.7 $365.7 % change 15.4% 15.4% Acquisitions $0.5 $0.5 $0.0 $0.0 without Acquisitions $421.5 $421.5 $365.7 $365.7 % change 15.3% 15.3% Currency effects $44.5 $44.5 $0.0 $0.0 without Acquisitions & Currency $377.0 $37
Slide 11: Aerospace
Aerospace 1st Qtr YTD 1st Qtr YTD Sales As reported $266.8 $266.8 $277.3 $277.3 % change -3.8% -3.8% Acquisitions $0.0 $0.0 $4.6 $4.6 without Acquisitions $266.8 $266.8 $272.7 $272.7 % change -2.2% -2.2% Currency effects $1.4 $1.4 $0.0 $0.0 without Acquisitions & Currency $265.4 $265.4 $272.7 $272.7
Slide 12: Climate & Industrial Controls
Climate & Industrial Controls 1st Qtr YTD 1st Qtr YTD Sales As reported $156.0 $156.0 $164.7 $164.7 % change -5.3% -5.3% Acquisitions $0.0 $0.0 $0.0 $0.0 without Acquisitions $156.0 $156.0 $164.7 $164.7 % change -5.3% -5.3% Currency effects $2.7 $2.7 $0.0 $0.0 without Acquisitions & Currency $153.3
Slide 13: Other
Other 1st Qtr YTD 1st Qtr YTD Sales As reported $56.7 $56.7 $50.6 $50.6 % change 12.1% 12.1% Acquisitions $0.0 $0.0 $0.0 $0.0 without Acquisitions $56.7 $56.7 $50.6 $50.6 % change 12.1% 12.1% Currency effects $5.9 $5.9 $0.0 $0.0 without Acquisitions & Currency $50.8 $50.8 $50.6 $50.6 % change 0.4% 0
Slide 14: Balance Sheet – Assets
Balance Sheet Assets as of September 30 2003 2002 Change Assets Current Assets: Cash and cash equivalents 205.4 45.7 159.7 Accounts receivable, net 967.9 945.9 22.0 Inventories 991.3 1,046.3 (55.0) Prepaid exepenses 38.9 45.0 (6.1) Deferred income taxes 102.5 80.4 22.1 Total current assets 2,306.0 2
Slide 15: Balance Sheet – Liabilities & Shareholders' Equity
Balance Sheet Liabilities & Shareholders’ Equity as of September 30 2003 2002 Change Liabilities and shareholders' equity Current liabilities: Notes payable 289.0 453.1 (164.1) Accounts payable 415.4 413.9 1.5 Accrued liabilities 466.5 418.7 47.8 Accrued domestic and foreign taxes 85.5 51.4 34.1 Tot
Slide 16: Statement of Cash Flows
Statement of Cash Flows for the quarters ended September 30 2003 2002 Net income 56.7 61.0 Depreciation & amortization 63.4 64.1 Net change in receivables, inventory & payables 26.5 26.8 Net change in other assets & liabilities 3.0 (22.3) Other, net (5.6) 15.6 Net cash provided by operating activiti
Slide 17: Debt to Debt Equity
B0% 35.0% 4.0% 2.0% 0.0% 78.0% 75.0% 74.0% 72.0% 70.0% Debt to Debt Equity Fya9 FYO1 Foz FYD3 Fy0a 1a
Slide 18: Industrial North America New Order Rates
Industrial North America Current month vs. prior year +1 Parker New Order Rates
Slide 19: Industrial R.O.W. New Order Rates
Industrial R.O.W. Current month vs. prior year +4 Parker New Order Rates
Slide 20: Aerospace New Order Rates
Aerospace Average last 12 months orders to previous 12 months orders +11 Parker New Order Rates
Slide 21: Climate & Industrial Control New Order Rates
Climate & Industrial Control Current month vs. prior year -2 Parker New Order Rates
Slide 22: FY 2004 Outlook – Sales Growth
FY 2004 Outlook Business Segment Sales Growth versus FY 2003 Industrial North America 2.0% to 5.0% Industrial ROW 5.0% to 8.0% Aerospace -8.0% to -5.0% Climate & Industrial Controls -3.0% to 0.0% Other 2.0% to 5.0%
Slide 23: FY 2004 Outlook – Operating Income Change
FY 2004 Outlook Business Segment Operating Income change versus FY 2003 Industrial North America 20.0% to 30.0% Industrial ROW 20.0% to 30.0% Aerospace -30.0% to -15.0% Climate & Industrial Controls 0.0% to 10.0% Other 10.0% to 20.0%
Slide 24: FY 2004 Outlook – Corporate Items and Tax Rate
FY 2004 Outlook Business Segment Corporate Admin. + 5% to 10% vs. FY 2003 Interest Expense + or - 5% vs. FY 2003 Other Expense (Income) same as FY 2003 Tax Rate 33.0%
Slide 25: anythingmannes
anythingmannes Possible: