Parker-hannifin Corporation · NYSE:PH
Parker-hannifin — Q4 FY2012 Earnings Presentation
23 slides from Parker-hannifin's earnings presentation, Aug 2, 2012
Slide 1: Quarterly Earnings Release 4th Quarter and Total Year FY2012
Parker Hannifin Corporation Quarterly Earnings Release 4th Quarter and Total Year FY2012 August 2, 2012 Exhibit 99.2
Slide 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 of release, and as such, are subject in the future to unforeseen uncertainties and risks. All statements regarding future performanc
Slide 3: Non-GAAP Financial Measures
Non-GAAP Financial Measures This presentation reconciles sales amounts reported in accordance with U.S. GAAP to sales amounts adjusted to remove the effects of acquisitions made within the prior four quarters and the effects of currency exchange rates. This presentation also reconciles cash flow fro
Slide 4: Discussion Agenda
Discussion Agenda CEO 4th Quarter and Total Year Highlights Key Performance Measures & Outlook Questions & Answers CEO Closing Comments Slide 4
Slide 5: 4th Quarter & Total Year FY12 Highlights
4th Quarter & Total Year FY12 Highlights 4th Quarter FY12: Sales Growth: Record Sales of $3.4B, including a negative 4% from Foreign Currency Translation Net Income: Achieved Record Net Income, EPS and Net Income/Sales Operating Margins: Record Total Segment Operating Margin of 15.5% Strong
Slide 6: Financial Highlights: Diluted Earnings per Share
Financial Highlights Diluted Earnings per Share 4th Quarter and Total Year Slide 6 $1.96 $1.79 $7.45 $6.37 $.00 $1.00 $2.00 $3.00 $4.00 $5.00 $6.00 $7.00 $8.00 Q4 FY12 Q4 FY11 FY12 FY11
Slide 7: Influences on 4th Quarter Earnings
Influences on 4th Quarter Earnings Diluted Earnings Per Share Increased Year-over-Year by $.17 or 9.5% Driven By: Improved Segment Operating Margins to 15.5% from 14.8% ($.12 EPS Impact) driven by Industrial North America, Aerospace and Climate & Industrial Controls Lower Expense Below Segment O
Slide 8: Financial Highlights: Sales
Financial Highlights Sales – 4th Quarter and Total Year Slide 8 Total Parker Dollars in millions FY2012 % Change FY2011 FY2012 % Change FY2011 Sales As reported 3,412$ 0.1 % 3,410$ 13,146$ 6.5 % 12,346$ Acquisitions 33 1.0 % 72 0.6 % Currency (146) (4.3)% (102) (0.8)% Adjusted Sales 3,525$ 3.4 % 13,
Slide 9: Segment Reporting: Industrial North America
Segment Reporting Industrial North America Slide 9 North America Dollars in millions FY2012 % Change FY2011 FY2012 % Change FY2011 Sales As reported 1,338$ 9.0 % 1,227$ 5,041$ 11.6 % 4,517$ Acquisitions 27 2.2 % 45 1.0 % Currency (11) (0.9)% (14) (0.3)% Adjusted Sales 1,322$ 7.7 % 5,010$ 10.9 % Oper
Slide 10: Segment Reporting: Industrial International
Segment Reporting Industrial International Slide 10 International Dollars in millions FY2012 % Change FY2011 FY2012 % Change FY2011 Sales As reported 1,239$ (10.4)% 1,384$ 5,034$ 2.4 % 4,917$ Acquisitions 6 0.5 % 26 0.5 % Currency (125) (9.0)% (79) (1.6)% Adjusted Sales 1,358$ (1.9)% 5,087$ 3.5 % Op
Slide 11: Segment Reporting: Aerospace
Segment Reporting Aerospace Slide 11 Aerospace Dollars in millions FY2012 % Change FY2011 FY2012 % Change FY2011 Sales As reported 566$ 8.5 % 522$ 2,103$ 9.4 % 1,923$ Acquisitions - -- % - -- % Currency (2) (0.4)% (2) (0.1)% Adjusted Sales 568$ 8.9 % 2,105$ 9.5 % Operating Margin As reported 85$ 71$
Slide 12: Segment Reporting: Climate & Industrial Controls
Segment Reporting Climate & Industrial Controls Slide 12 CIC Dollars in millions FY2012 % Change FY2011 FY2012 % Change FY2011 Sales As reported 269$ (3.0)% 277$ 968$ (2.3)% 990$ Acquisitions - -- % 1 0.1 % Currency (8) (2.9)% (7) (0.7)% Adjusted Sales 277$ (0.1)% 974$ (1.7)% Operating Margin As rep
Slide 13: Parker Order Rates
Parker Order Rates Slide 13 JUN '12 MAR '12 JUN '11 MAR '11 Total Parker 1 %- 2 %+ 15 %+ 24 %+ Industrial North America 4 %+ 7 %+ 11 %+ 20 %+ Industrial International 9 %- 1 %- 18 %+ 22 %+ Aerospace 7 %+ 4 %+ 27 %+ 44 %+ Climate & Industrial Controls 1 %+ 6 %- 1 %+ 14 %+ Three Month Rolling at Perio
Slide 14: Balance Sheet Summary
Balance Sheet Summary Cash Working capital Accounts receivable Inventory Accounts payable Slide 14
Slide 15: Strong Cash Flow 4th Quarter and Total Year
Strong Cash Flow 4th Quarter and Total Year Slide 15 Cash Flow From Operating Activities Q4 '12 Q4 '11 As Reported $524M $367M As Reported % Sales 15.4% 10.8% Pension Plan Contribution $0M $200M Adjusted Cash From Operating Activities $524M $567M Adjusted % Sales 15.4% 16.6% FY '12 FY '11 As Reporte
Slide 16: Financial Leverage
Financial Leverage Slide 16 20.0% 22.0% 24.0% 26.0% 28.0% 30.0% 32.0% 34.0% 36.0% 38.0% FY09 FY10 FY11 FY12 Debt to Debt Equity 26.1% Debt to Debt Equity (15.4% Net Debt) 26.1%
Slide 17: FY 2013 Earnings Outlook Assumptions: Segment Sales & Operating Margins
FY 2013 Earnings Outlook Assumptions Segment Sales & Operating Margins Slide 17 FY 2013 Sales Change versus FY 2012 Industri l North America 5.1 % -- 9.1 % Industrial International (2.0)% -- 2.0 % Aerospace 4.4 % -- 7.4 % Climate & Industrial Controls 2.1 % -- 6.2 % FY 2013 Operating Margin Percenta
Slide 18: FY 2013 Earnings Outlook Assumptions below Operating Income
FY 2013 Earnings Outlook Assumptions below Operating Income (+/-2.7%) Expenses Below Segment Operating Income* $489M at Midpoint Tax Rate = 28.0% *Corporate Admin, Interest and Other Expense (Income) Slide 18
Slide 19: FY 2013 EPS Guidance at Midpoint
FY 2013 EPS Guidance at Midpoint Slide 19 Low Midpoint High Diluted Earnings Per Share 7.10$ 7.50$ 7.90$ $7.45 $0.45 $0.06 $0.03 $-0.14 $-0.35 $7.50 6 7 7 8 8 9 9 FY2012 EPS Actual Segment Operating Income Corp G&A Share Impact Tax Pension FY2013 EPS Guidance at Midpoint FY12 Actual EPS vs FY13 EPS
Slide 20: Questions & Answers...
Questions & Answers... Slide 20
Slide 21: Appendix: Income Statement
Appendix Income Statement 4th Quarter FY2012 Total Year FY2012
Slide 22: Income Statement – 4th Quarter
Income Statement – 4th Quarter Slide 22 Quarter Dollars in millions % of Sales % of Sales Net Sales 3,411.7$ 100.0 % 3,409.8$ 100.0 % Cost of sales 2,572.3 75.4 % 2,590.8 76.0 % Gross profit 839.4 24.6 % 819.0 24.0 % S, G & A 386.7 11.3 % 413.4 12.1 % Interest expense 23.5 .7 % 24.8 .7 % Other expen
Slide 23: Income Statement – Total Year
Income Statement – Total Year Slide 23 Total Year Dollars in millions % of Sales % of Sales Net Sales 13,145.9$ 100.0 % 12,345.9$ 100.0 % Cost of sales 9,958.3 75.8 % 9,387.5 76.0 % Gross profit 3,187.6 24.2 % 2,958.4 24.0 % S, G & A 1,519.3 11.5 % 1,467.8 11.9 % Interest expense 92.8 .7 % 99.7 .8 %