- Fiscal 2012 Full Year Diluted Earnings per Share a Record at $7.45
- Company Generates Strong Annual Operating Cash Flow of $1.5 billion
- Issues Guidance for Record Full Year Earnings in Fiscal 2013, Including Increased Pension Expense of Approximately $0.35 per Diluted Share
(Logo: http://photos.prnewswire.com/prnh/19990816/PHLOGO )
Fiscal 2012 fourth quarter sales of
"I am very pleased that we were able to achieve record performance in fiscal year 2012, despite moderate growth in the global economy," said Chairman, CEO and President,
"Our fourth quarter performance exceeded expectations largely on the strength of our business in
Fourth Quarter Segment Results
In the
In the
In the Aerospace segment, fourth quarter sales increased 8.5 percent to
In the Climate and Industrial Controls segment, fourth quarter sales decreased 3.0 percent to
Orders
Parker reported a decrease of 1 percent in orders for the quarter ended
- Orders increased 4 percent in the
Industrial North America segment, compared with the same quarter a year ago. - Orders decreased 9 percent in the
Industrial International segment, compared with the same quarter a year ago. - Orders increased 7 percent in the Aerospace segment on a rolling 12-month average basis.
- Orders increased 1 percent in the Climate and Industrial Controls segment, compared with the same quarter a year ago.
Fiscal 2013 Outlook
For fiscal 2013, the company has issued guidance for earnings from continuing operations in the range of
Washkewicz added, "Our earnings guidance for fiscal 2013 anticipates another record year for Parker at the midpoint of our guidance range and continued stronger operational performance, despite an expected increase in pension expense. We will continue to stay the course with a strong focus on the fundamentals of the Win Strategy, which will allow us to deliver another strong year of performance as we continue to invest in profitable growth through new product and systems innovation, strategic acquisitions, and continued expansion of our distribution network."
NOTICE OF CONFERENCE CALL:
With annual sales exceeding
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
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.
PARKER HANNIFIN CORPORATION - JUNE 30, 2012 |
|||||||||||
CONSOLIDATED STATEMENT OF INCOME |
|||||||||||
Three Months Ended June 30, |
Twelve Months Ended June 30, |
||||||||||
(Dollars in thousands except per share amounts) |
2012 |
2011 |
2012 |
2011 |
|||||||
Net sales |
$ 3,411,666 |
$ 3,409,830 |
$ 13,145,942 |
$ 12,345,870 |
|||||||
Cost of sales |
2,572,258 |
2,590,772 |
9,958,337 |
9,387,457 |
|||||||
Gross profit |
839,408 |
819,058 |
3,187,605 |
2,958,413 |
|||||||
Selling, general and administrative expenses |
386,681 |
413,441 |
1,519,316 |
1,467,773 |
|||||||
Interest expense |
23,487 |
24,821 |
92,790 |
99,704 |
|||||||
Other expense (income), net |
3,901 |
(594) |
(1,199) |
(22,785) |
|||||||
Income before income taxes |
425,339 |
381,390 |
1,576,698 |
1,413,721 |
|||||||
Income taxes |
123,037 |
86,736 |
421,206 |
356,571 |
|||||||
Net income |
302,302 |
294,654 |
1,155,492 |
1,057,150 |
|||||||
Less: Noncontrolling interests |
337 |
2,464 |
3,669 |
8,020 |
|||||||
Net income attributable to common shareholders |
$ 301,965 |
$ 292,190 |
$ 1,151,823 |
$ 1,049,130 |
|||||||
Earnings per share attributable to common shareholders: |
|||||||||||
Basic earnings per share |
$ 2.01 |
$ 1.83 |
$ 7.62 |
$ 6.51 |
|||||||
Diluted earnings per share |
$ 1.96 |
$ 1.79 |
$ 7.45 |
$ 6.37 |
|||||||
Average shares outstanding during period - Basic |
150,470,993 |
159,369,296 |
151,222,033 |
161,125,869 |
|||||||
Average shares outstanding during period - Diluted |
154,155,617 |
163,688,610 |
154,664,510 |
164,798,221 |
|||||||
Cash dividends per common share |
$ .41 |
# |
$ .37 |
$ 1.54 |
$ 1.25 |
||||||
BUSINESS SEGMENT INFORMATION BY INDUSTRY |
|||||||||||
Three Months Ended June 30, |
Twelve Months Ended June 30, |
||||||||||
(Dollars in thousands) |
2012 |
2011 |
2012 |
2011 |
|||||||
Net sales |
|||||||||||
Industrial: |
|||||||||||
North America |
$ 1,337,580 |
$ 1,227,412 |
$ 5,041,106 |
$ 4,516,510 |
|||||||
International |
1,239,571 |
1,383,748 |
5,034,249 |
4,917,007 |
|||||||
Aerospace |
565,990 |
521,868 |
2,102,747 |
1,921,984 |
|||||||
Climate & Industrial Controls |
268,525 |
276,802 |
967,840 |
990,369 |
|||||||
Total |
$ 3,411,666 |
$ 3,409,830 |
$ 13,145,942 |
$ 12,345,870 |
|||||||
Segment operating income |
|||||||||||
Industrial: |
|||||||||||
North America |
$ 249,059 |
$ 207,290 |
$ 895,010 |
$ 745,544 |
|||||||
International |
163,899 |
202,848 |
733,123 |
754,222 |
|||||||
Aerospace |
85,311 |
70,722 |
290,135 |
247,126 |
|||||||
Climate & Industrial Controls |
31,456 |
22,504 |
84,274 |
76,134 |
|||||||
Total segment operating income |
529,725 |
503,364 |
2,002,542 |
1,823,026 |
|||||||
Corporate general and administrative expenses |
50,838 |
51,187 |
193,367 |
163,868 |
|||||||
Income before interest and other |
478,887 |
452,177 |
1,809,175 |
1,659,158 |
|||||||
Interest expense |
23,487 |
24,821 |
92,790 |
99,704 |
|||||||
Other expense |
30,061 |
45,966 |
139,687 |
145,733 |
|||||||
Income before income taxes |
$ 425,339 |
$ 381,390 |
$ 1,576,698 |
$ 1,413,721 |
|||||||
CONSOLIDATED BALANCE SHEET |
|||||||||||
June 30, |
June, 30 |
||||||||||
(Dollars in thousands) |
2012 |
2011 |
|||||||||
Assets |
|||||||||||
Current assets: |
|||||||||||
Cash and cash equivalents |
$ 838,317 |
$ 657,466 |
|||||||||
Accounts receivable, net |
1,992,284 |
1,977,856 |
|||||||||
Inventories |
1,400,732 |
1,412,153 |
|||||||||
Prepaid expenses |
137,429 |
111,934 |
|||||||||
Deferred income taxes |
129,352 |
145,847 |
|||||||||
Total current assets |
4,498,114 |
4,305,256 |
|||||||||
Plant and equipment, net |
1,719,968 |
1,797,179 |
|||||||||
Goodwill |
2,925,856 |
3,009,116 |
|||||||||
Intangible assets, net |
1,095,218 |
1,177,722 |
|||||||||
Other assets |
931,126 |
597,532 |
|||||||||
Total assets |
$ 11,170,282 |
$ 10,886,805 |
|||||||||
Liabilities and equity |
|||||||||||
Current liabilities: |
|||||||||||
Notes payable |
$ 225,589 |
$ 75,271 |
|||||||||
Accounts payable |
1,194,684 |
1,173,851 |
|||||||||
Accrued liabilities |
911,931 |
909,147 |
|||||||||
Accrued domestic and foreign taxes |
153,809 |
232,774 |
|||||||||
Total current liabilities |
2,486,013 |
2,391,043 |
|||||||||
Long-term debt |
1,503,946 |
1,691,086 |
|||||||||
Pensions and other postretirement benefits |
1,909,755 |
862,938 |
|||||||||
Deferred income taxes |
88,091 |
160,035 |
|||||||||
Other liabilities |
276,747 |
293,367 |
|||||||||
Shareholders' equity |
4,896,515 |
5,383,854 |
|||||||||
Noncontrolling interests |
9,215 |
104,482 |
|||||||||
Total liabilities and equity |
$ 11,170,282 |
$ 10,886,805 |
|||||||||
CONSOLIDATED STATEMENT OF CASH FLOWS |
|||||||||||
Twelve Months Ended June 30, |
|||||||||||
(Dollars in thousands) |
2012 |
2011 |
|||||||||
Cash flows from operating activities: |
|||||||||||
Net income |
$ 1,155,492 |
$ 1,057,150 |
|||||||||
Depreciation and amortization |
321,929 |
339,800 |
|||||||||
Stock incentive plan compensation |
80,935 |
73,238 |
|||||||||
Net change in receivables, inventories, and trade payables |
(59,732) |
(170,650) |
|||||||||
Net change in other assets and liabilities |
86,407 |
(156,080) |
|||||||||
Other, net |
(54,646) |
23,475 |
|||||||||
Net cash provided by operating activities |
1,530,385 |
1,166,933 |
|||||||||
Cash flows from investing activities: |
|||||||||||
Acquisitions (net of cash of $19,161 in 2012 and $385 in 2011) |
(156,256) |
(60,227) |
|||||||||
Capital expenditures |
(218,817) |
(207,294) |
|||||||||
Proceeds from sale of plant and equipment |
20,404 |
32,289 |
|||||||||
Other, net |
(21,099) |
(9,706) |
|||||||||
Net cash (used in) investing activities |
(375,768) |
(244,938) |
|||||||||
Cash flows from financing activities: |
|||||||||||
Net (payments for) common stock activity |
(430,263) |
(624,411) |
|||||||||
Acquisition of noncontrolling interests |
(147,441) |
- |
|||||||||
Net (payments for) debt |
(5,162) |
(85,283) |
|||||||||
Dividends |
(240,654) |
(206,084) |
|||||||||
Net cash (used in) financing activities |
(823,520) |
(915,778) |
|||||||||
Effect of exchange rate changes on cash |
(150,246) |
75,723 |
|||||||||
Net increase in cash and cash equivalents |
180,851 |
81,940 |
|||||||||
Cash and cash equivalents at beginning of period |
657,466 |
575,526 |
|||||||||
Cash and cash equivalents at end of period |
$ 838,317 |
$ 657,466 |
SOURCE
Media - Christopher M. Farage - Vice President, Communications & External Affairs, +1-216-896-2750, cfarage@parker.com, or Financial Analysts - Pamela Huggins, Vice President - Treasurer, +1-216-896-2240, phuggins@parker.com