CLEVELAND, Jan. 20, 2012 /PRNewswire/ -- Parker
Hannifin Corporation (NYSE: PH), the global leader in motion and
control technologies, today reported results for the fiscal 2012
second quarter ended December 31,
2011. Fiscal 2012 second quarter sales were
$3.1 billion, a second quarter record
and an increase of 8.4 percent from $2.9
billion in the prior year quarter. Net income was also a
second quarter record at $242.3
million, an increase of 4.5 percent compared with
$231.8 million in the second quarter
of fiscal 2011. Fiscal 2012 second quarter earnings per
diluted share were a second quarter record at $1.56, an increase of 12.2 percent compared with
$1.39 in the prior year
quarter. Cash flow from operations for the first six months
of fiscal 2012 was $563.4 million, or
8.9 percent of sales, compared with $408.2
million, or 7.2 percent of sales, for the first six months
of fiscal 2011.
(Logo: http://photos.prnewswire.com/prnh/19990816/PHLOGO )
"We are pleased to deliver strong organic growth and second
quarter record sales, net income and earnings," said Chairman, CEO
and President, Don Washkewicz. "We
generated 8 percent sales growth in the quarter, substantially all
of which was organic, led by double-digit revenue growth in our
Industrial North America business segment. Internationally, we are
seeing some softening in business conditions consistent with global
macro-economic indicators, which moderated our year over year
revenue growth and affected segment operating margin performance.
However, strong operating margin performance in the Industrial
North America segment contributed to an overall increase in total
segment operating margins, which reached 14.2 percent for the
quarter and exceeded 15 percent year to date."
Segment Results
In the Industrial North America segment, second quarter
sales increased 13.2 percent to $1.2
billion, and operating income was $195.7 million compared with $159.4 million in the same period a year
ago.
In the Industrial International segment, second quarter sales
increased 6.2 percent to $1.2
billion, and operating income was $165.9 million compared with $167.8 million in the same period a year
ago.
In the Aerospace segment, second quarter sales increased 8.0
percent to $496.5 million, and
operating income was $70.3 million
compared with $63.6 million in the
same period a year ago.
In the Climate and Industrial Controls segment, second quarter
sales declined 2.9 percent to $208.2
million, and operating income was $9.8 million compared with $9.5 million in the same period a year
ago.
Orders
Parker reported an increase of 3 percent in orders for the
quarter ending December 31, 2011,
compared with the same quarter a year ago. The company
reported the following orders by operating segment:
- Orders increased 8 percent in the Industrial North America
segment, compared with the same quarter a year ago.
- Orders increased 1 percent in the Industrial International
segment, compared with the same quarter a year ago.
- Orders remained unchanged in the Aerospace segment on a rolling
12-month average basis.
- Orders declined 5 percent in the Climate and Industrial
Controls segment, compared with the same quarter a year ago.
Outlook
For fiscal 2012, the company has adjusted its guidance for
earnings from continuing operations to the range of $6.90 to $7.30 per diluted share.
Washkewicz added, "We have made an adjustment in our earnings
range to reflect business conditions internationally, while
continued strength in North
America will allow Parker to deliver an all-time record
fiscal year in diluted earnings per share."
NOTICE OF CONFERENCE CALL: Parker
Hannifin's conference call and slide presentation to discuss
its fiscal 2012 second quarter results are available to all
interested parties via live webcast today at 10:00 a.m. ET, on the company's investor
information web site at www.phstock.com. To access the call, click
on the "Live Webcast" link. From this link, users also may complete
a pre-call system test and register for e-mail notification of
future events and information available from Parker. A replay
of the conference call will also be available at www.phstock.com
for one year after the call.
With annual sales exceeding $12
billion in fiscal year 2011, Parker
Hannifin is the world's leading diversified manufacturer of
motion and control technologies and systems, providing
precision-engineered solutions for a wide variety of mobile,
industrial and aerospace markets. The company employs approximately
58,000 people in 47 countries around the world. Parker has
increased its annual dividends paid to shareholders for 55
consecutive fiscal years, among the top five longest-running
dividend-increase records in the S&P 500 index. For more
information, visit the company's web site at www.parker.com, or its
investor information web site at www.phstock.com.
Notes on Orders
Orders provide near-term perspective on the company's
outlook, particularly when viewed in the context of prior and
future quarterly order rates. However, orders are not in themselves
an indication of future performance. All comparisons are at
constant currency exchange rates, with the prior year restated to
the current-year rates. All exclude acquisitions until they can be
reflected in both the numerator and denominator. Aerospace
comparisons are rolling 12-month average computations. The total
Parker orders number is derived from a weighted average of the
year-over-year quarterly percent change in orders for the
Industrial North America, Industrial International, and Climate and
Industrial Controls segments, and the year-over-year 12-month
rolling average of orders for the Aerospace segment.
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 performance, earnings projections, events or
developments are forward-looking statements. It is possible that
the future performance and earnings projections of the company,
including its individual segments, may differ materially from
current expectations, depending on economic conditions within its
mobile, industrial and aerospace markets, and the company's ability
to maintain and achieve anticipated benefits associated with
announced realignment activities, strategic initiatives to improve
operating margins, actions taken to combat the effects of the
current economic environment, and growth, innovation and global
diversification initiatives. A change in the economic conditions in
individual markets may have a particularly volatile effect on
segment performance. Among other factors which may affect future
performance are: changes in business relationships with and
purchases by or from major customers, suppliers or distributors,
including delays or cancellations in shipments, disputes regarding
contract terms or significant changes in financial condition,
changes in contract cost and revenue estimates for new development
programs and changes in product mix; ability to identify acceptable
strategic acquisition targets; uncertainties surrounding timing,
successful completion or integration of acquisitions; ability to
realize anticipated cost savings from business realignment
activities; threats associated with and efforts to combat
terrorism; uncertainties surrounding the ultimate resolution of
outstanding legal proceedings, including the outcome of any
appeals; competitive market conditions and resulting effects on
sales and pricing; increases in raw material costs that cannot be
recovered in product pricing; the company's ability to manage costs
related to insurance and employee retirement and health care
benefits; and global economic factors, including manufacturing
activity, air travel trends, currency exchange rates, difficulties
entering new markets and general economic conditions such as
inflation, deflation, interest rates and credit availability. The
company makes these statements as of the date of this disclosure,
and undertakes no obligation to update them unless otherwise
required by law.
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|
|
|
|
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PARKER
HANNIFIN CORPORATION - DECEMBER 31, 2011
|
|
|
CONSOLIDATED STATEMENT OF INCOME
|
|
|
|
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended December
31,
|
|
Six Months Ended December 31,
|
|
|
|
|
|
(Dollars
in thousands except per share amounts)
|
|
2011
|
|
2010
|
|
2011
|
|
2010
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
sales
|
|
$
3,106,832
|
|
$
2,866,664
|
|
$
6,340,713
|
|
$
5,695,937
|
|
|
|
|
|
Cost of
sales
|
|
2,381,322
|
|
2,195,728
|
|
4,795,764
|
|
4,333,602
|
|
|
|
|
|
Gross
profit
|
|
725,510
|
|
670,936
|
|
1,544,949
|
|
1,362,335
|
|
|
|
|
|
Selling,
general and administrative expenses
|
|
368,690
|
|
345,679
|
|
755,156
|
|
679,263
|
|
|
|
|
|
Interest
expense
|
|
23,769
|
|
25,631
|
|
46,990
|
|
50,264
|
|
|
|
|
|
Other
(income), net
|
|
(5,896)
|
|
(6,624)
|
|
(7,729)
|
|
(9,806)
|
|
|
|
|
|
Income
before income taxes
|
|
338,947
|
|
306,250
|
|
750,532
|
|
642,614
|
|
|
|
|
|
Income
taxes
|
|
96,604
|
|
74,432
|
|
210,031
|
|
161,766
|
|
|
|
|
|
Net
income
|
|
242,343
|
|
231,818
|
|
540,501
|
|
480,848
|
|
|
|
|
|
Less:
Noncontrolling interests
|
|
1,577
|
|
1,638
|
|
2,717
|
|
3,497
|
|
|
|
|
|
Net
income attributable to common shareholders
|
|
$
240,766
|
|
$
230,180
|
|
$
537,784
|
|
$
477,351
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per share attributable to common
shareholders:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
earnings per share
|
|
$
1.59
|
|
$
1.42
|
|
$
3.55
|
|
$
2.96
|
|
|
|
|
|
Diluted
earnings per share
|
|
$
1.56
|
|
$
1.39
|
|
$
3.47
|
|
$
2.90
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average
shares outstanding during period - Basic
|
|
150,960,202
|
|
161,701,219
|
|
151,699,614
|
|
161,486,878
|
|
|
|
|
|
Average
shares outstanding during period - Diluted
|
|
154,717,211
|
|
166,101,535
|
|
155,024,479
|
|
164,790,789
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash
dividends per common share
|
|
$
.37
|
|
$
.29
|
|
$
.74
|
|
$
.56
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
BUSINESS SEGMENT INFORMATION BY
INDUSTRY
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Unaudited)
|
|
Three Months Ended December 31,
|
|
Six Months Ended December 31,
|
|
|
|
|
|
(Dollars
in thousands)
|
|
2011
|
|
2010
|
|
2011
|
|
2010
|
|
|
|
|
|
Net
sales
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Industrial:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
North
America
|
|
$
1,183,352
|
|
$
1,045,469
|
|
$
2,388,169
|
|
$
2,110,384
|
|
|
|
|
|
International
|
|
1,218,812
|
|
1,147,231
|
|
2,507,927
|
|
2,240,212
|
|
|
|
|
|
Aerospace
|
|
496,505
|
|
459,630
|
|
993,997
|
|
896,310
|
|
|
|
|
|
Climate & Industrial Controls
|
|
208,163
|
|
214,334
|
|
450,620
|
|
449,031
|
|
|
|
|
|
Total
|
|
$
3,106,832
|
|
$
2,866,664
|
|
$
6,340,713
|
|
$
5,695,937
|
|
|
|
|
|
Segment
operating income
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Industrial:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
North
America
|
|
$
195,738
|
|
$
159,429
|
|
$
418,965
|
|
$
348,791
|
|
|
|
|
|
International
|
|
165,940
|
|
167,776
|
|
374,159
|
|
351,576
|
|
|
|
|
|
Aerospace
|
|
70,262
|
|
63,644
|
|
138,899
|
|
107,420
|
|
|
|
|
|
Climate & Industrial Controls
|
|
9,823
|
|
9,501
|
|
29,615
|
|
31,053
|
|
|
|
|
|
Total
segment operating income
|
|
441,763
|
|
400,350
|
|
961,638
|
|
838,840
|
|
|
|
|
|
Corporate
general and administrative expenses
|
|
46,136
|
|
37,593
|
|
104,152
|
|
70,947
|
|
|
|
|
|
Income
before interest and other
|
|
395,627
|
|
362,757
|
|
857,486
|
|
767,893
|
|
|
|
|
|
Interest
expense
|
|
23,769
|
|
25,631
|
|
46,990
|
|
50,264
|
|
|
|
|
|
Other
expense
|
|
32,911
|
|
30,876
|
|
59,964
|
|
75,015
|
|
|
|
|
|
Income
before income taxes
|
|
$
338,947
|
|
$
306,250
|
|
$
750,532
|
|
$
642,614
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CONSOLIDATED BALANCE SHEET
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Unaudited)
|
|
December
31,
|
|
June,
30
|
|
December
31,
|
|
|
|
|
|
|
|
(Dollars
in thousands)
|
|
2011
|
|
2011
|
|
2010
|
|
|
|
|
|
|
|
Assets
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Current
assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash and
cash equivalents
|
|
$
487,984
|
|
$
657,466
|
|
$
808,736
|
|
|
|
|
|
|
|
Accounts
receivable, net
|
|
1,828,117
|
|
1,977,856
|
|
1,636,905
|
|
|
|
|
|
|
|
Inventories
|
|
1,452,664
|
|
1,412,153
|
|
1,361,457
|
|
|
|
|
|
|
|
Prepaid
expenses
|
|
129,439
|
|
111,934
|
|
106,416
|
|
|
|
|
|
|
|
Deferred
income taxes
|
|
144,819
|
|
145,847
|
|
130,426
|
|
|
|
|
|
|
|
Total
current assets
|
|
4,043,023
|
|
4,305,256
|
|
4,043,940
|
|
|
|
|
|
|
|
Plant and
equipment, net
|
|
1,691,162
|
|
1,797,179
|
|
1,764,558
|
|
|
|
|
|
|
|
Goodwill
|
|
2,879,169
|
|
3,009,116
|
|
2,910,729
|
|
|
|
|
|
|
|
Intangible
assets, net
|
|
1,101,020
|
|
1,177,722
|
|
1,178,912
|
|
|
|
|
|
|
|
Other
assets
|
|
613,210
|
|
597,532
|
|
720,705
|
|
|
|
|
|
|
|
Total
assets
|
|
$
10,327,584
|
|
$
10,886,805
|
|
$
10,618,844
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities and equity
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Current
liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Notes
payable
|
|
$
78,375
|
|
$
75,271
|
|
$
101,293
|
|
|
|
|
|
|
|
Accounts
payable
|
|
1,069,503
|
|
1,173,851
|
|
960,567
|
|
|
|
|
|
|
|
Accrued
liabilities
|
|
821,335
|
|
909,147
|
|
730,011
|
|
|
|
|
|
|
|
Accrued
domestic and foreign taxes
|
|
150,896
|
|
232,774
|
|
148,997
|
|
|
|
|
|
|
|
Total
current liabilities
|
|
2,120,109
|
|
2,391,043
|
|
1,940,868
|
|
|
|
|
|
|
|
Long-term
debt
|
|
1,659,434
|
|
1,691,086
|
|
1,742,464
|
|
|
|
|
|
|
|
Pensions
and other postretirement benefits
|
|
838,644
|
|
862,938
|
|
1,328,893
|
|
|
|
|
|
|
|
Deferred
income taxes
|
|
147,123
|
|
160,035
|
|
150,069
|
|
|
|
|
|
|
|
Other
liabilities
|
|
306,371
|
|
293,367
|
|
241,957
|
|
|
|
|
|
|
|
Shareholders' equity
|
|
5,158,126
|
|
5,383,854
|
|
5,113,261
|
|
|
|
|
|
|
|
Noncontrolling interests
|
|
97,777
|
|
104,482
|
|
101,332
|
|
|
|
|
|
|
|
Total
liabilities and equity
|
|
$
10,327,584
|
|
$
10,886,805
|
|
$
10,618,844
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CONSOLIDATED STATEMENT OF CASH
FLOWS
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Unaudited)
|
|
Six Months Ended December 31,
|
|
|
|
|
|
|
|
|
|
(Dollars
in thousands)
|
|
2011
|
|
2010
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash
flows from operating activities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
income
|
|
$
540,501
|
|
$
480,848
|
|
|
|
|
|
|
|
|
|
Depreciation and amortization
|
|
164,131
|
|
170,293
|
|
|
|
|
|
|
|
|
|
Stock
incentive plan compensation
|
|
44,462
|
|
41,331
|
|
|
|
|
|
|
|
|
|
Net change
in receivables, inventories, and trade payables
|
|
(94,532)
|
|
(62,540)
|
|
|
|
|
|
|
|
|
|
Net change
in other assets and liabilities
|
|
(75,129)
|
|
(257,071)
|
|
|
|
|
|
|
|
|
|
Other,
net
|
|
(16,017)
|
|
35,296
|
|
|
|
|
|
|
|
|
|
Net
cash provided by operating activities
|
|
563,416
|
|
408,157
|
|
|
|
|
|
|
|
|
|
Cash
flows from investing activities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Acquisitions (net of cash of $6,802 in 2011 and $1 in
2010)
|
|
(90,545)
|
|
(43,359)
|
|
|
|
|
|
|
|
|
|
Capital
expenditures
|
|
(96,897)
|
|
(109,795)
|
|
|
|
|
|
|
|
|
|
Proceeds
from sale of plant and equipment
|
|
11,179
|
|
17,243
|
|
|
|
|
|
|
|
|
|
Other,
net
|
|
(14,498)
|
|
(9,369)
|
|
|
|
|
|
|
|
|
|
Net
cash (used in) investing activities
|
|
(190,761)
|
|
(145,280)
|
|
|
|
|
|
|
|
|
|
Cash
flows from financing activities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
(payments for) proceeds from common stock activity
|
|
(308,747)
|
|
4,863
|
|
|
|
|
|
|
|
|
|
Net
(payments for) proceeds from debt
|
|
(1,089)
|
|
19,673
|
|
|
|
|
|
|
|
|
|
Dividends
|
|
(119,031)
|
|
(90,907)
|
|
|
|
|
|
|
|
|
|
Net
cash (used in) financing activities
|
|
(428,867)
|
|
(66,371)
|
|
|
|
|
|
|
|
|
|
Effect of
exchange rate changes on cash
|
|
(113,270)
|
|
36,704
|
|
|
|
|
|
|
|
|
|
Net (decrease)
increase in cash and cash equivalents
|
|
(169,482)
|
|
233,210
|
|
|
|
|
|
|
|
|
|
Cash and
cash equivalents at beginning of period
|
|
657,466
|
|
575,526
|
|
|
|
|
|
|
|
|
|
Cash
and cash equivalents at end of period
|
|
$
487,984
|
|
$
808,736
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
SOURCE Parker Hannifin Corporation