Parker-hannifin Corporation · NYSE:PH
Parker-hannifin — Q2 FY2008 Earnings Presentation
12 slides from Parker-hannifin's earnings presentation, Jan 17, 2008
Slide 1: Financial Highlights
Financial Highlights Diluted Earnings per Share nd Quarter and 1 st Half $2.26 $2.56 $1.23 $1.09 $0.00 $0.50 $1.00 $1.50 $2.00 $2.50 $3.00 Q2 FY08 Q2 FY07 1st Half FY08 1st Half FY07
Slide 2: Financial Highlights: Sales – 2nd Quarter and 1st Half
Financial Highlights Sales – nd Quarter and 1 st Half Dollars in millions FY2008 % Change FY2007 FY2008 % Change FY2007 Sales As reported 2,829 $ 12.7 % 2,511 $ 5,616 $ 10.9 % 5,063 $ Acquisitions 2.9 % 2.7 % Currency 4.9 % 4.1 % Adjusted Sales 2,635 $ 4.9 % 5,270 $ 4.1 % 2nd Quarter YTD
Slide 3: Segment Reporting: Industrial North America
Segment Reporting Industrial North America Dollars in millions FY2008 % Change FY2007 FY2008 % Change FY2007 Sales As reported $ 3.3 % $ 1,997 $ 1.9 % 1,960 $ Acquisitions 1.9 % 2.3 % Currency 0.7 % 0.6 % Adjusted Sales $ 0.7 % 1,942 $ (1.0)% Operating Margin As reported $ $ $ $ % of Sales 14.3 % 14
Slide 4: Segment Reporting: Industrial International
Segment Reporting Industrial International Dollars in millions FY2008 % Change FY2007 FY2008 % Change FY2007 Sales As reported 1,178 $ 27.7 % $ 2,279 $ 26.6 % 1,800 $ Acquisitions 5.2 % 4.6 % Currency 11.2 % 10.2 % Adjusted Sales 1,026 $ 11.3 % 2,013 $ 11.8 % Operating Margin As reported $ $ $ $ % o
Slide 5: Segment Reporting: Aerospace
Segment Reporting Aerospace Dollars in millions FY2008 % Change FY2007 FY2008 % Change FY2007 Sales As reported $ 7.1 % $ $ 6.7 % $ Acquisitions 2.0 % 1.0 % Currency 0.5 % 0.5 % Adjusted Sales $ 4.6 % $ 5.2 % Operating Margin As reported $ $ $ $ % of Sales 12.1 % 16.9 % 12.7 % 17.0 % 2nd Quarter YTD
Slide 6: Segment Reporting: Climate & Industrial Controls
Segment Reporting Climate & Industrial Controls Dollars in millions FY2008 % Change FY2007 FY2008 % Change FY2007 Sales As reported $ 0.8 % $ $ (3.2)% $ Acquisitions Currency 3.1 % 2.5 % Adjusted Sales $ (2.3)% $ (5.7)% Operating Margin As reported $ $ $ $ % of Sales 2.4 % 3.1 % 4.3 % 7.6 % 2nd Quar
Slide 7: Parker Order Rates
Parker Order Rates Excludes Acquisitions & Currency 3-month year-over-year comparisons, except Aerospace Aerospace is calculated using a 12-month moving average FY08 FY07 Total Parker 10 % + 5 % + Industrial North America 4 % + 1 % - Industrial International 16 % + 13 % + Aerospace 19 % + 10 % + Cli
Slide 8: Strong Cash Flow
$308 $474 $0 $100 $200 $300 $400 $500 $600 FY08 FY07 Strong Cash Flow Cash from Operating Activities nd Quarter YTD
Slide 9: Financial Leverage
Financial Leverage Debt to Debt Equity 29.7% 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 10: FY 2008 Earnings Outlook Assumptions
FY 2008 Earnings Outlook Assumptions Segment Sales & Operating Income FY 2008 Sales change versus FY 2007 Industrial North America 1.5 % -- 1.9 % Industrial International 19.3 % -- 19.7 % Aerospace 3.6 % -- 4.0 % Climate & Industrial Controls (4.5)% -- (4.1)% FY 2008 Operating margin percentages Ind
Slide 11: Income Statement – 2nd Quarter
Income Statement – nd Quarter Dollars in millions % of Sales % of Sales Net Sales 2,829.1 $ 100.0 % 2,511.2 $ 100.0 % Cost of sales 2,194.1 77.6 % 1,938.0 77.2 % Gross profit 635.0 22.4 % 573.2 22.8 % S, G & A 319.0 11.3 % 292.9 11.7 % Interest expense 26.0 .9 % 22.3 .9 % Other (income) (6.2) (.3)%
Slide 12: Income Statement – 1st Half
Income Statement – st Half Dollars in millions % of Sales % of Sales Net Sales 5,616.3 $ 100.0 % 5,062.7 $ 100.0 % Cost of sales 4,316.4 76.9 % 3,885.4 76.7 % Gross profit 1,299.9 23.1 % 1,177.3 23.3 % S, G & A 643.9 11.5 % 584.9 11.6 % Interest expense 48.4 .8 % 39.4 .8 % Other (income) (6.4) (.2)%