Filed by the
Registrant ☒ Filed by a party other than the
Registrant ☐
Thomas Williams, CEO Parker Annual Report 2015
History
The history of our great company is an
interesting account of the transformation of technology over a period of 100 years., the evolution of the Parker Appliance Company into Parker Hannifin Corporation illustrates a legacy of innovation. As we celebrate our centennial this year, we
believe our future growth is assured by honoring Parkers tradition of excellence and fair dealings.
Parkers Culture & Values
The
Foundation of Our Success
Our success is founded on fair dealing, hard work, coordination of effort and
quality of products.
- Arthur L. Parker
Founder
Winning culture Passionate people Valued customers Engaged leadership
Parkers Brand Promise
Parker is the global
leader in motion and control technologies, partnering with its customers to increase their productivity and profitability.
Partnering with our distributors, Parker serves customers in 104 countries.
Footprint of a Global Leader
Operating Groups
Aerospace Automation
Engineered Materials Filtration Fluid Connectors Hydraulics Instrumentation
100 Divisions
292 Manufacturing Locations
Worldwide
49,000 Employees
Serving Customers in 104 Countries
$11.4 Billion in Revenue 864,000 Products Sold 444,000 Customers 49,000 Employees 13,200 Distribution/MRO Outlets 1,100 Markets 100 Divisions 292 Manufacturing Plants
49 Countries
Key Facts about Parker FY2016
The Global Leader
in Motion and Control Technologies (NYSE:PH)
Ethics & Integrity
Parkers
reputation and success depends upon the personal commitment that each employee makes to uphold the Parker values in all of our dealings.
Parkers actions are guided by uncompromising honesty, integrity, respect and ethical behavior.
Sustainability
Parkers sustainability
strategy is focused on the positive impact we can have on people and the planet we call share.
Through the
responsible design, manufacture and disposal of our products, we strive to foster the enduring success of our company, customers and communities.
Working at Parker
Parker views personal
development and career satisfaction as critical to our success.
We believe that an empowered, results-oriented
organization excels at engaging highly talented people of different backgrounds and perspectives.
Innovation
The engineering in our products may
not be visible, but every day you experience the results of our work on virtually everything that moves. Through a process we call Winovation,
Parker is focusing our collective efforts on developing products and systems that represent new to the world or new to the market opportunities to help us deliver more value to
customers.
Our focus on solving the worlds greatest engineering challenges sparks our passion for innovation and secures future growth.
Food Water Energy Transportation Defense Environment Infrastructure Life Sciences
IndegoTM Exoskeleton
Human Motion &
Control
SCOUT Compressed Air IoT System
For Factories,
Laboratories and Shops
Battery Energy Storage Systems
For Sustainable
and Reliable Power Grid
Parker Tracking System
For Asset Management
Compact Spiral Hose
Unprecedented
Performance & Flexibility
Unitized Hydrostatic Transmission (UHT)
Zero Turn
Radius Mowers
Product Ads
Parker Services
∎ Solution-based Selling in
Focused Markets ∎ Engineering Expertise ∎ Products as Pull-through ∎ Intimate Customer Engagement
A L
PARKER.
CONTROl SYSTIII FOR AUT0!081LES.
AIPL ICATIO JC fiUO AUG ll, 1 9 14
Patentrd J u no 4, 1918.
3 S HH TS StULl 1
Drawing on our strengths.
PARKER HANNIFIN
CENTENNIAL
PARKER
BEGAN WITH ONLY TWO PEOPLE, ARTHUR PARKER AND CARL KLAMM. THE JOURNEY FROM THAT TWO-PERSON ENTERPRISE TO
A
TECHNOLOGICAL TOUR DE FORCE CONTAINS STAGGERING SETBACKS AND ACHIEVEMENTS, BUT THROUGH IT ALL ONE THING HAS GUIDED
THE COMPANY: THE ENTREPRENEURIAL SPIRIT OF ART PARKER. ART CREATED A CULTURE THAT COMBINED FAMILY AND FAIRNESS WITH INNOVATION AND DETERMINATION. THAT COMPETITIVE AND COMPASSIONATE CULTURE
IS ALIVE AND WELL. ITS WHY PARKER IS THE GLOBAL LEADER IN MOTION AND CONTROL TECHNOLOGIES.
Art Parker
establishes the Parker Appliance Company, a small machine shop in Cleveland, Ohio. The company would build pneumatic brake systems for trucks, trains, buses, industrial machinery and a recent invention called the airplane.
Nearly 10 years before the founding of the company, Art Parker receives a patent for a device
that provides hydraulic control on machinery.
The first of his nearly 160 patents.
Art puts
his dream on hold as he joins the battle in World War I. While at war, Art notes that
the braking systems on
supply trucks are insufficient.
He is inspired to improve them.
Traveling to a trade show where Parker would demonstrate the capabilities of their brake system to several large bus and
truck manufacturers, a trailer carrying Parkers entire inventory falls off a cliff east of Pittsburgh, Pennsylvania.Art is forced into bankruptcy but immediately begins his efforts to rebuild.
1924
DECLARING THEIR
Determination.
In an effort to restart the
company, Art Parker files for a patent for a two-piece flared tube fitting.The
new fitting, which could be
used in thousands of applications, would be the foundation for the new Parker Appliance Company.
Along with
Detroit Edison and Goodyear Tire and Rubber, the U.S. Navy adopts the use of the Parker flared tube fitting.
Art begins his intense study of the aviation industry with aircraft pioneers.They would depend heavily on Parker fittings
and valves.
Charles
Lindbergh makes the first transatlantic flight with Parkers fuel system on board his plane, the Spirit of St. Louis.This historic event marks the beginning of Parkers remarkable relationship with the aerospace industry that continues
today.
Art marries one of his very first employees,
Helen M. Fitzgerald, a progressive and determined woman.
In 1929, within two years of their marriage,
their son Patrick Parker is born. Art and Helen would have three additional children, creating a vibrant, loving family.
Parker
creates an official mascot salesman, Parkie,. in its own foundry
to help sell World
War II bonds.
With 40 patents and sales of $3 million
in 1939,
Parker responds to the countrys call to arms. During World War II, Parker has only one customer: the U.S.
government. A testament to the trust
and innovation in Parker products.
To support the
war effort, Parker grows from
910 employees in 1940 to 2,600 in 1941.Sales from 1940 to
1945 rise
from $3 million to $21.9 million.
On New Years Day 1945, Art Parker dies. To keep Parker running and
against the advice of the board, Helen Parker reinvests the proceeds from her husbands $1 million life insurance policy back into the company. She hires new management, and together they make the visionary decision to diversify.
Once again, Parker becomes a trusted ally of the United States in the Korean War. Parker products, which have been
vastly improved since World War II, are in high demand. These
include new valves for aircraft fuel and hydraulic systems, components for jet engines, and devices that enable faster
refueling of airplanes.
Pat Parker
begins working for the company fu ll time in 1955.
His experience with fighter planes as a U.S. naval supply
officer during the Korean War would serve him well as sales correspondent at Parker.
In 1957. Parker acquires
the Hannifin
Company, a family-founded company and a
leading manufacturer of cylinders and valves. The acquisition allows Parker to supply all of the components of a fluid
power system, a critical capability to the broader industrial world.
Parker
expands dramatically through more and more acquisitions.The company prospers by maintaining its unique culture and decentralized management philosophy.
For the first time, Parkers stock is traded on the New York Stock Exchange. In just two years, Parker is part of the prestigious
Fortune 500. A new era begins as Pat Parker becomes the company president.
He will lead the company with the same innovative vision as his father.
During a
deteriorating economic period, Parker remains strong by becoming a major player in the automotive industry.
Parker introduces its new logo in 1975. The modern design represents
the forward-looking vision of the
company. The logo is still in use today.
Parkar
Ffara. work
PAYS OFF.
After 10
years of strategic growth, Parker reaches
a significant milestone:sales of $1 billion. It is a promising
indicator of things to come.
Led by
President and CEO Duane Collins, Parker commits
to global growth through acquisition and new facilities.
Supported by a robust network of independently owned distributors,
Parker is now serving customers in 120
nations.
In 1993, Parker transforms its value-added services with
the ParkerStoreTH network, which offers walk-up repairs and the HOSE DOCTOR® service, which performs on-site
maintenance. By 2007, it had opened 1,000 retail stores. As of now, there are approximately 3,600 independently owned retail locations.
24 Hour Mobile Hose Replacement
27 27 5374
From 1993
to 1997, Parker reorganizes into global businesses establishing
regional group presidents and a sales company
structure to support local customers with products from multiple divisions. It is a major catalyst for growth:
Sales nearly double, earnings quadruple.
Don
Washkewicz takes over as President and COO.
He charts a new course for the company with his innovative Win
Strategy. Don would travel to the companys global facilities to discover pockets of excellence.
The idea
was to apply these proven tools throughout the
entire enterprise. In a down economy, the Win Strategy would
rally the company to achieve unprecedented growth.
As the Win Strategy gains more momentum, Parker sales grow
to
$8.2 billion in 2005. The approach is now integral to Parkers DNA.
On
July 6, 2005, Pat Parker passes away. Pats leadership had an enormous influence on the company.
His
sense of humor, humility and caring were felt
from the production floor to the paneled offices.
Like his father, he had a passion for innovation, and he was intensely committed to customers as partners and friends.
P
The Parker cu lture continues to reflect the exa mple of its founder Art Parker. A winning culture can only be achieved
with passionate people and engaged leaders who treat valued customers with deep respect.
This is how Parker
conducts business with integrit y.
Parker
leads progress in industrial sensor technology and the Internet of Things; energy grid efficiencies and the development of wearable robotics; and even racing yachts, Formula One cars and electric motorcycles that are setting new speed records.
Chairman
and CEO Tom Williams and President and COO Lee Banks implement a refreshed Win Strategy based on global feedback from team members, customers and even top shareholders. It would set
new goals, re-energize employees and expand Parkers premier customer service model. The strategy securely positions
the company for new levels of success.
Parkar
www.parker.com
Nurturing
a Competitive and Compassionate Culture
blog.parker.com/nurturing-a-competitive-and-compassionate-culture
Since Parker s founding 100 years ago, the company has prided itself on cultivating an environment that
values long-term team members and their unique contributionswith typical career tenures spanning 20 years and beyond.
The companys overall mission of Engineering Your Success, is not only about the technical expertise provided to customers, but the ways in which Parker can personalize
the success of
49,000 team members worldwide. An enduring culture of decentralization that provides engagement
opportunities for each team member is a foresight founder Art Parker initiated in
1917, and his son Pat Parker
continued throughout his 52-year career at the company.
Today, its culture is what continues to set Parker
apart, and one of the primary reasons the company is the worlds leading diversified manufacturer of motion and control technologies and systems, according to Chairman and Chief Executive Officer Tom Williams.
Parker s culture is what attracts people to the company and why they stay. Our team members feel like their
work has a positive impact when they see the results our products and technologies enable.
A Parker
person is both competitive and compassionate. They are competitive with a will and desire to win; theyre resilient, determined and focused. They are also compassionate in that they care about each other, their customers and the communities
they live and work in. Its a very powerful combination.
A powerful portfolio
Parker s unique collection of motion and control capabilities sets the company apart from any other in its industry.
By specializing in a broad set of technologies, Parker s experts thrive on solving problems by delivering unmatched systems capabilities around the world. Williams also recognizes Parker s distribution channel as another long-term
competitive advantage for the company.
Our basket of products and breadth of technologies allow us to do
what nobody else can. If you look at our products, a very high percentage of all those we ship have intellectual property wrapped around them. Either in a patent, trade secret, or the process and material science that makes the product valuable.
Weve worked for decades to build distribution and our channel is second to none. We have a head
start on everybody else, and we want to continue to have a head start globally.
Parker s portfolio
of technologies including hydraulics, automation, fluid connectors, instrumentation, filtration, engineered materials and aerospace, speaks to servicing a wide array of customers.
Sixty percent of our customers buy from four or more of our seven operating groups. Our suite of technologies is
interrelated in a very positive fashion for our customers.
With a long history of performing well in
good and bad times, the companys ability to be relatively consistent is a direct result of each generation of leadershipand Parker s worldwide teamworking to take the company to the
5/2
next
level, explains Williams.
Thats the expectation people have of me. Thats what we expect
every Parker team member to doto think about how they can continue to raise the company up.
Owning
it
To help guide the company into the future the Parker Win Strategy was rolled out in 2001. An
initiative created and organized by then CEO Don Washkewicz, the strategy was a way to implement proven tools to drive operational excellence and growth by empowering team members and focusing on profitable growth. Due to the strategys
success, Williams refreshed the strategy with new measures of success and a renewed focus on the companys most important asset: its people.
The new Win Strategy is about engaging people first. We talk about safety within this, but the whole essence of engaged people is to create owners. I want team members to be owners
of their respective team, their cell, their office or whatever operation theyre a part of.
If
everybody thinks and acts like an owner, the companys performance will be lifted up dramatically. At every Parker location Ive visited, Ive encouraged engagement and a high-performance team process. Thats how Parker is going
to stay around for the next 100 years.
This post is the first in a series of leadership interviews to
commemorate Parkers centennial anniversary. To learn more about Parkers history, visit www.parker.com/centennial.
Related resources:
A New Strategy to Win
Commemorating 50 Years on the NYSE