Exhibit 99.1    
For Release:    Immediately                    

Contact:
Media -
 
 
Christopher M. Farage - Vice President, Communications & External Affairs
216-896-2750
 
cfarage@parker.com
 
 
Financial Analysts -
 
 
Pamela Huggins, Vice President - Treasurer
216-896-2240
 
phuggins@parker.com
 
 
 
 
Stock symbol:
PH - NYSE
 


Parker Reports Fiscal 2013 Third Quarter Results and Increases Dividend

Third quarter diluted earnings per share $1.68
Company maintains fiscal 2013 earnings guidance midpoint
Board approves second consecutive quarterly dividend increase, totaling 10 percent this year

CLEVELAND, April 25, 2013 -- Parker Hannifin Corporation (NYSE: PH), the global leader in motion and control technologies, today reported results for the fiscal 2013 third quarter ended March 31, 2013 and announced a 5 percent increase in its quarterly cash dividend. Fiscal 2013 third quarter sales were $3.30 billion compared with $3.39 billion in the prior year quarter. Acquisitions contributed 4 percent which was offset by a 6 percent reduction in organic sales. Net income was $256.6 million in the current quarter compared with $312.7 million in the third quarter of fiscal 2012. Fiscal 2013 third quarter earnings per diluted share were $1.68 compared with $2.01 in the prior year quarter.
Cash flow from operations for the first nine months of fiscal 2013 was $718.8 million, or 7.5 percent of sales, compared with $1,006.5 million, or 10.3 percent of sales for the first nine months of fiscal 2012. Cash flow from operations for the first nine months of fiscal 2013 included a $225.6 million discretionary contribution to the company's pension plan. Excluding this contribution, cash flow from operations as a percent of sales was 9.9 percent for the first nine months of fiscal 2013.






The Board of Directors increased the company's regular quarterly cash dividend to 45 cents per share of common stock and declared a dividend payable June 7, 2013 to shareholders of record as of May 10, 2013. This represents a 5 percent increase over the previous quarterly dividend of 43 cents per common share and is the second consecutive increase this year. This is the company's 252nd consecutive quarterly dividend, resulting in a total distribution to shareholders of approximately $67 million.

“The fundamentals of our business remain very strong despite a mediocre global economic environment,” said Chairman, CEO and President, Don Washkewicz. “I am particularly pleased that we were able to deliver such strong total segment operating margins of 14 percent this quarter. We also continue to drive high levels of operating cash flow, which has allowed us the flexibility to announce our second consecutive quarterly dividend increase this year. This puts our fiscal 2013 dividend increase at 10 percent. We have now extended our long-standing annual dividend increase record to 57 consecutive fiscal years, which is among the top five longest running dividend-increase records in the S&P 500 index, and we have more than doubled our annual payout in the past five years.”

Segment Results
In Industrial North America, third quarter sales decreased 2.4 percent to $1.28 billion, and operating income was $209.0 million compared with $227.0 million in the same period a year ago.

In Industrial International, third quarter sales decreased 3.5 percent to $1.24 billion, and operating income was $152.3 million compared with $195.1 million in the same period a year ago.

In Aerospace, third quarter sales increased 6.5 percent to $578.0 million, and operating income was $80.1 million compared with $65.9 million in the same period a year ago.
   
In Climate and Industrial Controls, third quarter sales decreased 18.0 percent to $203.9 million, and operating income was $21.3 million compared with $23.2 million in the same period a year ago. These





results reflect the impact of a business divestiture in the fiscal 2013 second quarter.

Orders
Parker reported a decrease of 7 percent in orders for the quarter ending March 31, 2013, compared with the same quarter a year ago. The company reported the following orders:
Orders declined 10 percent in Industrial North America compared with the same quarter a year ago.
Orders declined 7 percent in Industrial International compared with the same quarter a year ago.
Orders were unchanged in Aerospace on a rolling 12-month average basis.
Orders declined 1 percent in Climate and Industrial Controls compared with the same quarter a year ago.

Outlook
For the fiscal year ending June 30, 2013, the company has maintained the midpoint and narrowed the range of guidance for earnings from continuing operations to $6.25 to $6.65 per diluted share. Fiscal 2013 guidance includes an expected year-over-year increase in domestic qualified pension expense of approximately $0.35 per diluted share due to accounting regulations which require the use of a lower discount rate based on current market conditions.

Washkewicz added, “We are not anticipating any meaningful change in global economic conditions through the remainder of the fiscal year. We will continue to take actions to drive operating cash flow while at the same time position ourselves for ongoing profitable growth and strong shareholder returns.”

NOTICE OF CONFERENCE CALL: Parker Hannifin's conference call and slide presentation to discuss its fiscal 2013 third 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 $13 billion in fiscal year 2012, 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 60,000 people in 48 countries around the world. Parker has increased its annual dividends paid to shareholders for 57 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 Industrial North America, Industrial International, and Climate and Industrial Controls, and the year-over-year 12-month rolling average of orders for Aerospace.


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.

###











 
 
 
 
 
 
 
 
Exhibit 99.1

PARKER HANNIFIN CORPORATION - MARCH 31, 2013
 
 
 
 
 
 
CONSOLIDATED STATEMENT OF INCOME
 
 
 
 
 
 
 
(Unaudited)
 
Three Months Ended March 31,
 
Nine Months Ended March 31,
(Dollars in thousands except per share amounts)
2013

 
2012

 
2013

 
2012

 
 
 
 
 
 
 
 
 
Net sales
 
$
3,307,041

 
$
3,393,563

 
$
9,587,471

 
$
9,734,276

Cost of sales
 
2,569,189

 
2,590,315

 
7,468,608

 
7,386,079

Gross profit
 
737,852

 
803,248

 
2,118,863

 
2,348,197

Selling, general and administrative expenses
379,690

 
377,479

 
1,141,912

 
1,132,635

Interest expense
 
23,050

 
22,313

 
70,775

 
69,303

Other (income), net
 
(3,439
)
 
2,629

 
(31,062
)
 
(5,100
)
Income before income taxes
 
338,551

 
400,827

 
937,238

 
1,151,359

Income taxes
 
81,959

 
88,138

 
259,584

 
298,169

Net income
 
256,592

 
312,689

 
677,654

 
853,190

Less: Noncontrolling interests
 
32

 
615

 
391

 
3,332

Net income attributable to common shareholders
$
256,560

 
$
312,074

 
$
677,263

 
$
849,858

 
 
 
 
 
 
 
 
 
Earnings per share attributable to common shareholders:
 
 
 
 
 
 
 
   Basic earnings per share
 
$
1.72

 
$
2.07

 
$
4.54

 
$
5.61

   Diluted earnings per share
 
$
1.68

 
$
2.01

 
$
4.46

 
$
5.49

 
 
 
 
 
 
 
 
 
Average shares outstanding during period - Basic
149,287,628

 
151,017,910

 
149,191,583

 
151,472,380

Average shares outstanding during period - Diluted
152,360,612

 
154,944,246

 
151,853,522

 
154,904,549

 
 
 
 
 
 
 
 
 
Cash dividends per common share
$
0.43

 
$
0.39

 
$
1.25

 
$
1.13

 
 
 
 
 
 
 
 
 
BUSINESS SEGMENT INFORMATION BY INDUSTRY
 
 
 
 
 
 
 
(Unaudited)
 
Three Months Ended March 31,
 
Nine Months Ended March 31,
(Dollars in thousands)
 
2013

 
2012

 
2013

 
2012

Net sales
 
 
 
 
 
 
 
 
    Industrial:
 
 
 
 
 
 
 
 
       North America
 
$
1,283,649

 
$
1,315,357

 
$
3,747,401

 
$
3,703,526

       International
 
1,241,464

 
1,286,751

 
3,587,315

 
3,794,678

    Aerospace
 
578,026

 
542,760

 
1,647,765

 
1,536,757

    Climate & Industrial Controls
203,902

 
248,695

 
604,990

 
699,315

Total
 
$
3,307,041

 
$
3,393,563

 
$
9,587,471

 
$
9,734,276

Segment operating income
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
    Industrial:
 
 
 
 
 
 
 
 
       North America
 
$
209,048

 
$
226,986

 
$
620,154

 
$
645,951

       International
 
152,309

 
195,065

 
427,514

 
569,224

    Aerospace
 
80,080

 
65,925

 
194,150

 
204,824

   Climate & Industrial Controls
 
21,324

 
23,203

 
51,164

 
52,818

Total segment operating income
462,761

 
511,179

 
1,292,982

 
1,472,817

Corporate general and administrative expenses
41,410

 
38,377

 
126,578

 
142,529

Income before interest expense and other expense
421,351

 
472,802

 
1,166,404

 
1,330,288

Interest expense
 
23,050

 
22,313

 
70,775

 
69,303

Other expense
 
59,750

 
49,662

 
158,391

 
109,626

Income before income taxes
 
$
338,551

 
$
400,827

 
$
937,238

 
$
1,151,359






 
 
 
 
Exhibit 99.1
 
PARKER HANNIFIN CORPORATION - MARCH 31, 2013
 
 
 
 
 
CONSOLIDATED BALANCE SHEET
 
 
 
 
 
 
(Unaudited)
 
March 31,

 
June 30,

 
March 31,

(Dollars in thousands)
 
2013

 
2012

 
2012

Assets
 
 
 
 
 
 
Current assets:
 
 
 
 
 
 
Cash and cash equivalents
 
$
1,677,319

 
$
838,317

 
$
773,459

Accounts receivable, net
 
2,017,126

 
1,992,284

 
2,061,501

Inventories
 
1,473,072

 
1,400,732

 
1,429,014

Prepaid expenses
 
136,268

 
137,429

 
100,336

Deferred income taxes
 
134,724

 
129,352

 
132,991

Total current assets
 
5,438,509

 
4,498,114

 
4,497,301

Plant and equipment, net
 
1,829,715

 
1,719,968

 
1,721,970

Goodwill
 
3,229,827

 
2,925,856

 
2,926,311

Intangible assets, net
 
1,313,990

 
1,095,218

 
1,096,306

Other assets
 
859,731

 
931,126

 
647,236

Total assets
 
$
12,671,772

 
$
11,170,282

 
$
10,889,124

 
 
 
 
 
 
 
Liabilities and equity
 
 
 
 
 
 
Current liabilities:
 
 
 
 
 
 
Notes payable
 
$
1,527,696

 
$
225,589

 
$
273,907

Accounts payable
 
1,162,125

 
1,194,684

 
1,148,939

Accrued liabilities
 
838,376

 
911,931

 
872,547

Accrued domestic and foreign taxes
 
120,352

 
153,809

 
193,907

Total current liabilities
 
3,648,549

 
2,486,013

 
2,489,300

Long-term debt
 
1,496,026

 
1,503,946

 
1,515,217

Pensions and other postretirement benefits
 
1,693,048

 
1,909,755

 
848,521

Deferred income taxes
 
127,159

 
88,091

 
141,467

Other liabilities
 
294,582

 
276,747

 
308,151

Shareholders' equity
 
5,409,058

 
4,896,515

 
5,577,592

Noncontrolling interests
 
3,350

 
9,215

 
8,876

Total liabilities and equity
 
$
12,671,772

 
$
11,170,282

 
$
10,889,124

 
 
 
 
 
 
 
 
 
 
 
 
 
 





 
 
 
 
Exhibit 99.1
PARKER HANNIFIN CORPORATION - MARCH 31, 2013
 
 
 
 
 
CONSOLIDATED STATEMENT OF CASH FLOWS
 
 
 
 
 
(Unaudited)
 
Nine Months Ended March 31,
 
(Dollars in thousands)
 
2013

 
2012

 
 
 
 
 
 
 
Cash flows from operating activities:
 
 
 
 
 
Net income
 
$
677,654

 
$
853,190

 
Depreciation and amortization
 
250,574

 
244,403

 
Stock incentive plan compensation
 
65,516

 
64,102

 
Net change in receivables, inventories, and trade payables
 
(13,743
)
 
(191,071
)
 
Net change in other assets and liabilities
 
(258,332
)
 
85,060

 
Other, net
 
(2,870
)
 
(49,223
)
 
Net cash provided by operating activities
 
718,799

 
1,006,461

 
Cash flows from investing activities:
 
 
 
 
 
Acquisitions (net of cash of $33,932 in 2013 and $6,802 in 2012)
 
(620,647
)
 
(31,004
)
 
Capital expenditures
 
(214,061
)
 
(154,097
)
 
Proceeds from sale of plant and equipment
 
24,321

 
15,560

 
Proceeds from sale of business
 
72,190

 

 
Other, net
 
(9,375
)
 
(16,381
)
 
Net cash (used in) investing activities
 
(747,572
)
 
(185,922
)
 
Cash flows from financing activities:
 
 
 
 
 
Net payments for common stock activity
 
(125,325
)
 
(312,545
)
 
Acquisition of noncontrolling interests
 
(1,072
)
 
(147,441
)
 
Net proceeds from debt
 
1,186,679

 
47,763

 
Dividends
 
(187,705
)
 
(178,606
)
 
Net cash provided by (used in) financing activities
 
872,577

 
(590,829
)
 
Effect of exchange rate changes on cash
 
(4,802
)
 
(113,717
)
 
Net increase in cash and cash equivalents
 
839,002

 
115,993

 
Cash and cash equivalents at beginning of period
 
838,317

 
657,466

 
Cash and cash equivalents at end of period
 
$
1,677,319

 
$
773,459