UNITED STATES
              SECURITIES AND EXCHANGE COMMISSION
                   WASHINGTON, D.C.  20549

                          FORM 10-Q



[X]          QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d)
             OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended December 31, 1998

                             OR

[ ]          TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d)
             OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from _______________ to ________________

Commission File number 1-4982



                    PARKER-HANNIFIN CORPORATION                   
        (Exact name of registrant as specified in its charter)


             OHIO                         34-0451060    
       (State or other                   (IRS Employer
       jurisdiction of                    Identification No.)
       incorporation)


       6035 Parkland Blvd., Cleveland, Ohio        44124-4141
      (Address of principal executive offices)     (Zip Code)



Registrant's telephone number, including area code:  (216) 896-3000



Indicate by check mark whether Registrant (1) has filed all reports 
required to be filed by Section 13 or 15(d) of the Securities Exchange Act 
of 1934 during the preceding 12 months, and (2) has been subject to such 
filing requirements for the past 90 days.


                  Yes  X .         No.


Number of Common Shares outstanding at December 31, 1998  108,473,704

 

PART I - FINANCIAL INFORMATION PARKER-HANNIFIN CORPORATION CONSOLIDATED STATEMENT OF INCOME (Dollars in thousands, except per share amounts) (Unaudited) Three Months Ended Six Months Ended December 31, December 31, ______________________ _______________________ 1998 1997 1998 1997 __________ __________ __________ __________ Net sales $1,199,021 $1,114,948 $2,417,745 $2,198,117 Cost of sales 943,167 862,209 1,890,474 1,689,348 _________ __________ __________ _________ Gross profit 255,854 252,739 527,271 508,769 Selling, general and administrative expenses 141,370 132,961 275,528 258,236 __________ __________ __________ _________ Income from operations 114,484 119,778 251,743 250,533 Other income (deductions): Interest expense (17,341) (13,082) (33,416) (23,519) Interest and other income, net (333) 3,868 (406) 4,885 __________ _________ _________ _________ (17,674) (9,214) (33,822) (18,634) __________ _________ _________ _________ Income before income taxes 96,810 110,564 217,921 231,899 Income taxes 33,278 39,250 76,272 82,324 __________ _________ _________ _________ Net income $ 63,532 $ 71,314 $ 141,649 $ 149,575 ========== ========== ========== ========= Earnings per share - Basic $ .59 $ .64 $ 1.30 $ 1.34 Earnings per share - Diluted $ .58 $ .63 $ 1.29 $ 1.33 Cash dividends per common share $ .15 $ .15 $ .30 $ .30 See accompanying notes to consolidated financial statements. -2-

PARKER-HANNIFIN CORPORATION CONSOLIDATED BALANCE SHEET (Dollars in thousands) (Unaudited) December 31, June 30, 1998 1998 __________ __________ ASSETS Current assets: Cash and cash equivalents $ 39,940 $ 30,488 Accounts receivable, net 661,261 699,179 Inventories: Finished products 506,290 416,034 Work in process 361,907 392,880 Raw materials 143,526 135,357 __________ __________ 1,011,723 944,271 Prepaid expenses 20,628 22,035 Deferred income taxes 87,567 84,102 __________ __________ Total current assets 1,821,119 1,780,075 Plant and equipment 2,487,666 2,345,109 Less accumulated depreciation 1,296,372 1,209,884 __________ __________ 1,191,294 1,135,225 Other assets 708,939 609,521 __________ __________ Total assets $3,721,352 $3,524,821 ========== ========== LIABILITIES Current liabilities: Notes payable $ 350,604 $ 265,485 Accounts payable, trade 282,166 338,249 Accrued liabilities 290,818 350,662 Accrued domestic and foreign taxes 26,266 34,374 __________ __________ Total current liabilities 949,854 988,770 Long-term debt 634,203 512,943 Pensions and other postretirement benefits 280,415 265,675 Deferred income taxes 38,055 29,739 Other liabilities 49,078 44,244 __________ __________ Total liabilities 1,951,605 1,841,371 SHAREHOLDERS' EQUITY Serial preferred stock, $.50 par value; authorized 3,000,000 shares; none issued - - Common stock, $.50 par value; authorized 600,000,000 shares; issued 111,812,025 shares at December 31 and June 30 55,906 55,906 Additional capital 137,102 139,726 Retained earnings 1,740,265 1,631,316 Accumulated other comprehensive income (35,335) (60,026) __________ __________ 1,897,938 1,766,922 Common stock in treasury at cost; 3,338,321 shares at December 31 and 1,938,762 shares at June 30 (128,191) (83,472) __________ __________ Total shareholders' equity 1,769,747 1,683,450 __________ __________ Total liabilities and shareholders' equity $3,721,352 $3,524,821 ========== ========== See accompanying notes to consolidated financial statements. -3-

PARKER-HANNIFIN CORPORATION CONSOLIDATED STATEMENT OF CASH FLOWS (Dollars in thousands) (Unaudited) Six Months Ended December 31, _____________________ 1998 1997 ________ ________ CASH FLOWS FROM OPERATING ACTIVITIES Net income $141,649 $149,575 Adjustments to reconcile net income to net cash provided by operations: Depreciation 85,636 79,906 Amortization 19,146 13,079 Deferred income taxes (4,454) (16,111) Foreign currency transaction (gain) loss (3,752) 1,171 Loss (gain) on sale of plant and equipment 794 (766) Changes in assets and liabilities: Accounts receivable, net 68,054 30,376 Inventories (39,916) (84,278) Prepaid expenses 5,430 2,008 Other assets (15,381) (20,674) Accounts payable, trade (69,408) (20,106) Accrued payrolls and other compensation (58,234) (21,347) Accrued domestic and foreign taxes (5,990) (6,135) Other accrued liabilities (15,494) 8,220 Pensions and other postretirement benefits 10,116 5,418 Other liabilities 4,649 6,602 ________ ________ Net cash provided by operating activities 122,845 126,938 CASH FLOWS FROM INVESTING ACTIVITIES Acquisitions (excluding cash of $2,609 in 1998) (89,865) (143,546) Capital expenditures (114,650) (112,000) Proceeds from sale of plant and equipment 2,364 2,983 Other 1,045 (3,053) ________ ________ Net cash used in investing activities (201,106) (255,616) CASH FLOWS FROM FINANCING ACTIVITIES Payments for common share activity (47,863) (44,732) Proceeds from notes payable, net 75,569 132,021 Proceeds from long-term borrowings 206,621 50,086 Payments of long-term borrowings (115,895) (6,213) Dividends (32,700) (33,407) ________ ________ Net cash provided by financing activities 85,732 97,755 Effect of exchange rate changes on cash 1,981 (1,393) ________ ________ Net increase (decrease) in cash and cash equivalents 9,452 (32,316) Cash and cash equivalents at beginning of year 30,488 68,997 ________ ________ Cash and cash equivalents at end of period $ 39,940 $ 36,681 ======== ======== See accompanying notes to consolidated financial statements. -4-

PARKER-HANNIFIN CORPORATION BUSINESS SEGMENT INFORMATION BY INDUSTRY (Dollars in thousands) (Unaudited) Parker operates in two industry segments: Industrial and Aerospace. The Industrial Segment is the largest and includes a significant portion of International operations. Industrial - This segment produces a broad range of motion-control and fluid systems and components used in all kinds of manufacturing, packaging, processing, transportation, mobile construction, and agricultural and military machinery and equipment. Sales are made directly to major original equipment manufacturers (OEMs) and through a broad distribution network to smaller OEMs and the aftermarket. Aerospace - This segment designs and manufactures products and provides aftermarket support for commercial, military and general-aviation aircraft, missile and spacecraft markets. The Aerospace Segment provides a full range of systems and components for hydraulic, pneumatic and fuel applications. Results by Business Segment: Three Months Ended Six Months Ended December 31, December 31, _______________________ ______________________ 1998 1997 1998 1997 __________ __________ _________ __________ Net sales, including intersegment sales Industrial: North America $ 609,074 $ 595,442 $1,235,963 $1,180,941 International 312,144 280,926 622,514 545,324 Aerospace 278,232 239,071 560,210 472,625 Intersegment sales (429) (491) (942) (773) __________ __________ _________ __________ Total $1,199,021 $1,114,948 $2,417,745 $2,198,117 ========== ========== ========== ========== Income from operations before corporate general and administrative expenses Industrial: North America $ 65,310 $ 82,781 $ 144,898 $ 172,463 International 22,178 18,691 47,935 38,842 Aerospace 41,822 35,405 86,185 72,321 __________ __________ _________ __________ Total 129,310 136,877 279,018 283,626 Corporate general and administrative expenses 14,826 17,099 27,275 33,093 __________ __________ _________ __________ Income from operations $ 114,484 $ 119,778 $ 251,743 $ 250,533 ========== ========== ========== ========== See accompanying notes to consolidated financial statements. -5-

PARKER-HANNIFIN CORPORATION NOTES TO CONSOLIDATED FINANCIAL STATEMENTS Dollars in thousands, except per share amounts _______________ 1. Management Representation In the opinion of the Company, the accompanying unaudited consolidated financial statements contain all adjustments (consisting of only normal recurring accruals) necessary to present fairly the financial position as of December 31, 1998, the results of operations for the three and six months ended December 31, 1998 and 1997 and cash flows for the six months then ended. 2. Earnings per share The following table presents a reconciliation of the numerator and denominator of basic and diluted earnings per share for the three and six months ended December 31, 1998 and 1997. Three Months Ended Six Months Ended December 31, December 31, _______________________ ________________________ 1998 1997 1998 1997 __________ ___________ ___________ __________ Numerator: Net income applicable to common shares $ 63,532 $71,314 $ 141,649 $149,575 Denominator: Basic - weighted average common shares 108,541,603 111,128,438 108,953,828 111,365,904 Increase in weighted average from dilutive effect of exercise of stock options 880,609 1,052,499 821,286 952,230 __________ ___________ ___________ __________ Diluted - weighted average common shares, assuming exercise of stock options 109,422,212 112,180,937 109,775,114 112,318,134 =========== =========== =========== =========== Basic earnings per share $ .59 $ .64 $ 1.30 $ 1.34 Diluted earnings per share $ .58 $ .63 $ 1.29 $ 1.33 3. Stock repurchase program The Board of Directors has approved a program to repurchase the Company's common stock on the open market, at prevailing prices. The repurchase will primarily be funded from operating cash flows and the shares will initially be held as treasury stock. During the three-month period ended December 31, 1998 the Company purchased 540,000 shares of its common stock at an average price of $35.155 per share. Year-to-date the Company has purchased 1,500,000 shares at an average price of $32.459 per share. - 6 -

4. Comprehensive income On July 1, 1998, the Company adopted SFAS No. 130, "Reporting Comprehensive Income". SFAS No. 130 establishes new standards for reporting comprehensive income and its components. The Company's only item of other comprehensive income is foreign currency translation adjustments recorded in shareholders' equity. Comprehensive income for the three and six months ended December 31, 1998 and 1997 is as follows: Three Months Ended Six Months Ended December 31, December 31, __________________ _____________________ 1998 1997 1998 1997 ________ ________ _________ _________ Net income $ 65,532 $ 71,314 $ 141,649 $ 149,575 Foreign currency Translation adjustments (508) (18,981) 24,691 (22,836) ________ ________ _________ _________ Comprehensive income $ 65,024 $ 52,333 $ 166,340 $ 126,739 ======== ======== ========= ========= 5. Acquisitions In July 1998 the Company acquired the stock of B.A.G. Acquisition Ltd., the parent company of Veriflo Corporation, located in Richmond, California and Carson City, Nevada. Veriflo, with calendar year 1997 revenues of $65 million, manufactures high-purity regulators and valves for precision gas delivery. In August 1998 the Company acquired Fluid Power Systems of Lincolnshire, Illinois, a manufacturer of hydraulic valves and electrohydrualic systems and controls. Fluid Power Systems, with estimated calendar year 1998 revenues of $42 million, serves the construction, aerial reach and agricultural markets. Total purchase price for these businesses was approximately $85.2 million in cash. Both acquisitions are being accounted for by the purchase method. - 7 -

PARKER-HANNIFIN CORPORATION FORM 10-Q MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS FOR THE THREE AND SIX MONTHS ENDED DECEMBER 31, 1998 AND COMPARABLE PERIODS ENDED DECEMBER 31, 1997 CONSOLIDATED STATEMENT OF INCOME Net sales increased 7.5 percent for the second quarter of fiscal 1999 and 10.0 percent for the six-month period ended December 31, 1998. Without acquisitions, the increases would have been 4.0 percent and 5.5 percent, respectively. Excluding acquisitions, these increases primarily result from the continuing strength of the Aerospace operations. Income from operations was $114.5 million for the current second quarter and $251.7 million for the current six months, a decrease of 4.4 percent for the quarter and an increase of .5 percent for the six months. As a percent of sales, Income from operations declined to 9.5 percent from 10.7 percent for the quarter and to 10.4 percent from 11.4 percent for the six months. Cost of sales as a percent of sales increased to 78.7 percent from 77.3 percent for the quarter and to 78.2 percent from 76.9 percent for the six months. The declining margins are the result of lower volume and a change in product mix in the Industrial North American operations. Selling, general and administrative expenses, as a percent of sales, declined slightly, improving to 11.8 percent of sales from 11.9 percent for the quarter and to 11.4 percent from 11.7 percent for the six months. The slight improvement in selling, general and administrative expenses is the result of lower incentive compensation. Interest expense increased $4.3 million for the quarter ended December 31, 1998, from the same period ended December 31, 1997, due to increased borrowings related to acquisitions completed in the last 12 months. Interest expense for the current six months increased $9.9 million compared to the same period in the prior year. Interest and other income for both the prior-year quarter and six months included $3.3 million in income related to the relocation of the corporate headquarters. Net income declined 10.9 percent for the quarter, and 5.3 percent for the half, as compared to the prior year. As a percent of sales, Net income declined to 5.3 percent from 6.4 percent for the quarter and to 5.9 percent from 6.8 percent for the six months. Backlog was $1.61 billion at December 31, 1998 compared to $1.64 billion in the prior year and at June 30, 1998. The flat level of backlog reflects the slowing of orders as many customers adjust to the current economic environment. -8-

RESULTS BY BUSINESS SEGMENT INDUSTRIAL - The Industrial Segment operations achieved the following Net sales increases in the current year when compared to the equivalent prior- year period: Period ending December 31, Three Months Six Months Industrial North America 2.3 % 4.7 % Industrial International 11.1 % 14.2 % Total Industrial 5.1 % 7.7 % Without the effect of currency-rate changes, International sales would have increased 10.4 percent for the quarter, but the increase remains at 14.2 percent for the six months. Without the effect of acquisitions completed within the past 12 months, the changes in Net sales would have been: Period ending December 31, Three Months Six Months Industrial North America (.9) % .8 % Industrial International 3.7 % 4.7 % Total Industrial .6 % 2.0 % Operating income for the Industrial segment was down 13.8 percent for the quarter and 8.7 percent for the six months. Industrial North America Operating income decreased 21.1 percent for the quarter and 16.0 percent for the six months while Industrial International results increased 18.7 percent for the quarter and 23.4 percent for the six months. Without acquisitions, total Industrial Segment Operating income would have decreased 12.8 percent for the quarter and 8.9 percent for the six months. As a percent of sales, Industrial North American Operating income decreased to 10.7 percent from 13.9 percent for the quarter and to 11.7 percent from 14.6 percent for the six months. Industrial International Operating income increased to 7.1 percent from 6.7 percent for the quarter and to 7.7 percent from 7.1 percent for the six months. Order demand has been declining for many of the North American Industrial operations, especially those supporting the agricultural equipment, semiconductor manufacturing, factory automation and construction equipment industries. Margins for the second quarter and first six months of fiscal 1999 were adversely affected by lower volume (resulting in the under- absorption of fixed costs), a change in product mix (with a greater percentage of sales being made in lower margin businesses) and the operating impact of integrating recent acquisitions. Higher volume in Europe provided the revenue growth in the Industrial International operations and, along with a more favorable product mix, helped improve profitability. Total Industrial Segment backlog increased 1.5 percent compared to December 31, 1997 and decreased .1 percent since June 30, 1998. Without acquisitions, backlog would have decreased 1.8 percent compared to December 31, 1997 and 3.9 percent since June 30, 1998. The decline in backlog is due to declining order rates being experienced in most of the Industrial Segment markets. Management anticipates most Industrial North American markets to remain soft for the balance of the fiscal year resulting in slight revenue growth and increased pressure on margins due to the underabsorption of fixed costs. For the second half of the year, business conditions for the European operations are expected to be consistent with the conditions experienced in the first half but uncertainty surrounds the second half business conditions in Latin America, especially Brazil. AEROSPACE - Aerospace Net sales were up 16.4 percent for the quarter and 18.5 percent for the six months. Continuing strong commercial aircraft activity accounted for much of the sales growth. -9-

Operating income for the Aerospace Segment increased 18.1 percent for the quarter and 19.2 percent for the six-month period. As a percent of sales, Operating income increased to 15.0 percent from 14.8 percent for the quarter and to 15.4 percent from 15.3 percent for the six-month period. The increase in the margins was the result of the sales growth. Backlog for the Aerospace Segment decreased 2.9 percent from December 31, 1997 and 3.0 percent since June 30, 1998. The decline in backlog reflects a slowdown in order rates. A change to heavier OEM volume in future product mix could also result in lower margins. BALANCE SHEET Working capital increased to $871.3 million at December 31, 1998 from $791.3 million at June 30, 1998 with the ratio of current assets to current liabilities increasing to 1.9 to 1. The increase was primarily due to an increase in Inventories and decreases in Accounts payable, trade and Accrued liabilities, partially offset by a decrease in Accounts receivable and an increase in Notes payable. Accounts receivable were lower on December 31, 1998 than on June 30, 1998 primarily due to the holiday induced lower level of sales in the month of December. Days sales outstanding have increased to 49 days at December 31, 1998 from 46 days at June 30, 1998. Inventories increased since June 30, 1998 primarily as a result of acquisitions within the Industrial segment. Accounts payable, trade decreased $56.1 million since June 30, 1998 with the reduction occurring consistently throughout the operations. A portion of the decrease was the result of lower production in the month of December. Accrued liabilities decreased $59.8 million since June 30, 1998 primarily as a result of lower incentive compensation accruals occurring throughout most of the operations. The debt to debt-equity ratio increased to 35.8 percent at December 31, 1998 from 31.6 percent at June 30, 1998 as a result of increases in Notes payable and Long-term debt, both of which were utilized to finance recent acquisitions. STATEMENT OF CASH FLOWS Net cash provided by operating activities was $122.8 million for the six months ended December 31, 1998, as compared to $126.9 million for the same six months of 1997. Net income for fiscal 1999 included non-cash Depreciation and Amortization expenses of $104.8 million as compared to $93.0 million in fiscal 1998. Net income also included a net foreign currency transaction gain of $3.8 million in fiscal 1999 as compared to a net loss of $1.2 million in fiscal 1998. Activity within the working capital items - Accounts receivable, Inventories, Accounts payable, Accrued payrolls and Prepaid expenses - used cash of $94.1 million in fiscal 1999 compared to using cash of $93.3 million in fiscal 1998. Other accrued liabilities used cash of $15.5 million in the current year compared to providing cash of $8.2 million in the prior year and deferred income taxes used cash of $4.5 million in fiscal 1999 versus using cash of $16.1 million in fiscal 1998. Net cash used in investing activities declined to $201.1 million for fiscal 1999 compared to $255.6 million for fiscal 1998 primarily due to a reduction in the amount spent on acquisitions. Financing activities provided cash of $85.7 million for the six months ended December 31, 1998 compared to providing cash of $97.8 million for the same period in 1997. The change resulted primarily from net debt borrowings providing cash of $166.3 million in fiscal 1999 compared to $175.9 million in the prior year. -10-

QUANTITATIVE AND QUALITATIVE DISCLOSURE ABOUT MARKET RISK The Company enters into forward exchange contracts and cross-currency swap agreements to reduce its exposure to fluctuations in related foreign currencies. These contracts are with major financial institutions and the risk of loss is considered remote. The Company does not hold or issue derivative financial instruments for trading purposes. In addition, the Company's foreign locations, in the ordinary course of business, enter into financial guarantees through financial institutions which enable customers to be reimbursed in the event of nonperformance by the Company. The total value of open contracts and any risk to the Company as a result of these arrangements is not material to the Company's financial position, liquidity or results of operations. YEAR 2000 CONSIDERATONS The Company has taken action to assure that its computerized products and systems and all external interfaces are Year 2000 compliant. These actions are part of a formal information technology initiative which the Company began several years ago. As a result, none of the Company's significant information technology projects have been delayed due to the year 2000 issue. The Company expects to have all internal standard application systems, including all information systems plus any equipment or embedded systems which may be impacted, compliant by July 1999 by modifying present systems, installing new systems and monitoring third-party interfaces. The cost for these actions is not material to the Company's results of operations. The Company will continue to reassess the need for alternative actions based on its progress towards being year 2000 compliant by July 1999 but at this time anticipates that no such actions will be required. In addition, the Company contacted its key suppliers, customers, distributors and financial service providers regarding their Year 2000 status. Follow-up inquiries and audits with such key third parties will be conducted as warranted. The Company expects assurance that key third parties are year 2000 compliant by July 1999. If it is determined that any key third party may not be year 2000 compliant on a timely basis, the Company will execute a contingency plan that has been developed to ensure its operations are not affected by such key third party's year 2000 noncompliance. While management does not expect that the consequences of any failure of the Company or any key third party to be fully compliant by 2000 would significantly affect the financial position, liquidity, or results of operations of the Company, there can be no assurance that any such failure to be fully compliant by 2000 would not have an adverse impact on the Company. EURO PREPARATIONS The Company has completed an upgrade of its systems to accommodate the Euro currency. The cost of this upgrade was immaterial to the Company's financial results. Although difficult to predict, any competitive implications and any impact on existing financial instruments are expected to be immaterial to the Company's results of operations, financial position or liquidity. FORWARD-LOOKING STATEMENTS This Report on Form 10-Q and other written reports and oral statements made from time to time by the Company may contain "forward-looking statements", all of which are subject to risks and uncertainties. All statements which address operating performance, events or developments that the Company expects or anticipates will occur in the future, including statements relating to growth, operating margin performance, earnings per share or statements expressing general opinions about future operating results, are forward-looking statements. -11-

These forward-looking statements rely on a number of assumptions concerning future events, and are subject to a number of uncertainties and other factors, many of which are outside the Company's control, that could cause actual results to differ materially from such statements. Such factors include: * continuity of business relationships with and purchases by major customers, including among others, orders and delivery schedules for aircraft components, * ability of suppliers to provide materials as needed, * uncertainties surrounding timing, successful completion or integration of acquisitions, * competitive pressure on sales and pricing, * increases in material and other production costs which cannot be recovered in product pricing, * uncertainties surrounding the year 2000 issues and the new Euro currency, * difficulties in introducing new products and entering new markets, and * uncertainties surrounding the global economy and global market conditions, including among others, the economy of the Asia Pacific and Latin America regions and the potential devaluation of currencies. Any forward-looking statements are based on known events and circumstances at the time. The Company undertakes no obligation to update or publicly revise these forward-looking statements to reflect events or circumstances that arise after the date of the filing of this Form 10-Q. -12-

PARKER-HANNIFIN CORPORATION PART II - OTHER INFORMATION Item 2. Change in Securities and Use of Proceeds. _______ _________________________________________ During the quarter ended December 31, 1998, in reliance upon Section 4(2) of the Securities Act of 1933, as amended, the Registrant issued the following shares of Common Stock, $.50 par value: (a) 8,151 shares valued at $35.47 per share to four Directors of the Registrant in lieu of fees pursuant to the Registrant's Non-Employee Directors Stock Plan; and (b) 4,280 shares valued at $46.76 per share to Dynamic Valves,Inc. as the final installment of the purchase price in the acquisition of substantially all of its assets. Item 6. Exhibits and Reports on Form 8-K. ______ _________________________________ (a) The following documents are furnished as exhibits and are numbered pursuant to Item 601 of Regulation S-K: Exhibit 27 - Financial Data Schedule (b) No reports on Form 8-K have been filed during the quarter for which this Report is filed. SIGNATURE Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized. PARKER-HANNIFIN CORPORATION (Registrant) Michael J. Hiemstra Michael J. Hiemstra Vice President - Finance and Administration and Chief Financial Officer Date: February 12, 1999 - 13 -

EXHIBIT INDEX Exhibit No. Description of Exhibit ___________ ______________________ 27 Financial Data Schedule - 14 -

  


5 THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM PARKER-HANNIFIN CORPORATION'S REPORT ON FORM 10-Q FOR ITS QUARTERLY PERIOD ENDED DECEMBER 31, 1998 AND IS QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH FINANCIAL STATEMENTS. 1,000 6-MOS JUN-30-1999 DEC-31-1998 39,940 0 611,392 10,452 1,011,723 1,821,119 2,487,666 1,296,372 3,721,352 949,854 639,838 55,906 0 0 1,713,841 3,721,352 2,417,745 2,417,745 1,890,474 1,890,474 0 584 33,416 217,921 76,272 141,649 0 0 0 141,649 1.30 1.29