Parker-hannifin Corporation · NYSE:PH
Parker-hannifin — Q4 FY2008 Earnings Presentation
11 slides from Parker-hannifin's earnings presentation, Jul 31, 2008
Slide 1: Financial Highlights
Financial Highlights Sales – th Quarter and Total Year Dollars in millions FY2008 % Change FY2007 FY2008 % Change FY2007 Sales As reported 3,347 $ 16.4 % 2,874 $ 12,146 $ 13.3 % 10,718 $ Acquisitions 4.4 % 3.5 % Currency 5.6 % 5.0 % Adjusted Sales 3,059 $ 6.4 % 11,229 $ 4.8 % 4th Quarter Total Year
Slide 2: Segment Reporting: Industrial North America
Segment Reporting Industrial North America Dollars in millions FY2008 % Change FY2007 FY2008 % Change FY2007 Sales As reported 1,166 $ 10.5 % 1,055 $ 4,250 $ 4.6 % 4,064 $ Acquisitions 6.7 % 3.0 % Currency 0.7 % 0.6 % Adjusted Sales 1,088 $ 3.1 % 4,103 $ 1.0 % Operating Margin As reported $ $ $ $ %
Slide 3: Segment Reporting: Industrial International
Segment Reporting Industrial International Dollars in millions FY2008 % Change FY2007 FY2008 % Change FY2007 Sales As reported 1,382 $ 27.6 % 1,083 $ 5,006 $ 28.3 % 3,901 $ Acquisitions 3.6 % 5.4 % Currency 13.2 % 12.2 % Adjusted Sales 1,200 $ 10.8 % 4,316 $ 10.7 % Operating Margin As reported $ $ $
Slide 4: Aerospace
Segment Reporting Aerospace Dollars in millions FY2008 % Change FY2007 FY2008 % Change FY2007 Sales As reported $ 14.7 % $ 1,838 $ 9.0 % 1,685 $ Acquisitions 3.8 % 2.3 % Currency 0.7 % 0.5 % Adjusted Sales $ 10.2 % 1,789 $ 6.2 % Operating Margin As reported $ $ $ $ % of Sales 14.3 % 15.1 % 13.6 % 16
Slide 5: Climate & Industrial Controls
Segment Reporting Climate & Industrial Controls Dollars in millions FY2008 % Change FY2007 FY2008 % Change FY2007 Sales As reported $ (0.8)% $ 1,051 $ (1.6)% 1,068 $ Acquisitions Currency 2.9 % 2.9 % Adjusted Sales $ (3.7)% 1,020 $ (4.5)% Operating Margin As reported $ $ $ $ % of Sales 7.0 % 8.7 % 5
Slide 6: 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 FY08 FY07 Total Parker 8 % + 3 % + Industrial North America 4 % + 3 % - Industrial International 8 % + 14 % + Aerospace 23
Slide 7: Strong Cash Flow
Strong Cash Flow Cash from Operating Activities Total Year $957 $1,317 $0 $200 $400 $600 $800 $1,000 $1,200 $1,400 FY08 FY07
Slide 8: Financial Leverage
Financial Leverage Debt to Debt Equity 28.3% 16.0% 18.0% 20.0% 22.0% 24.0% 26.0% 28.0% 30.0% 32.0% 34.0% 36.0% 38.0% FY99 FY00 FY01 FY02 FY03 FY04 FY05 FY06 FY07 FY08 Goal - Not to exceed 37% over the cycle
Slide 9: FY 2009 Earnings Outlook Assumptions
FY 2009 Earnings Outlook Assumptions Segment Sales & Operating Income FY 2009 Sales change versus FY 2008 Industrial North America 5.1 % -- 5.5 % Industrial International 6.5 % -- 6.9 % Aerospace 3.7 % -- 4.1 % Climate & Industrial Controls (2.5)% -- (2.1)% FY 2009 Operating margin percentages Indus
Slide 10: Income Statement – 4th Quarter
Income Statement – th Quarter Dollars in millions % of Sales % of Sales Net Sales 3,346.8 $ 100.0 % 2,874.4 $ 100.0 % Cost of sales 2,575.4 77.0 % 2,223.8 77.4 % Gross profit 771.4 23.0 % 650.6 22.6 % S, G & A 373.1 11.1 % 333.4 11.6 % Interest expense 25.0 .7 % 21.5 .7 % Other expense (income), net
Slide 11: Income Statement – Total Year
Income Statement – Total Year Dollars in millions % of Sales % of Sales Net Sales 12,145.6 $ 100.0 % 10,718.1 $ 100.0 % Cost of sales 9,339.1 76.9 % 8,273.0 77.2 % Gross profit 2,806.5 23.1 % 2,445.1 22.8 % S, G & A 1,364.1 11.2 % 1,226.9 11.4 % Interest expense 99.0 .8 % 83.4 .8 % Other expense (in