Exhibit 99.1    
For Release:    Immediately                    

Contact:
Media -
 
 
Aidan Gormley - Director, Corporate Communications
216-896-3258
 
aidan.gormley@parker.com
 
 
Financial Analysts -
 
 
Pamela Huggins, Vice President - Treasurer
216-896-2240
 
phuggins@parker.com
 


Stock Symbol:     PH – NYSE


Parker Announces Consolidation of the Climate and Industrial Controls Group

CLEVELAND, July 30, 2013 -- Parker Hannifin Corporation (NYSE: PH), the global leader in motion and control technologies, today announced that it has consolidated its Climate and Industrial Controls (CIC) group into other existing operating groups within the company's Industrial Segment. As a result of this consolidation and the resulting change in management structure, the company will have two reporting segments beginning with fiscal year 2014, Diversified Industrial (which will continue to include supplemental sales and profitability data for North America and International) and Aerospace Systems.

“We have completed strategic divestitures within the CIC group during this past year, including our previously announced transaction to sell the automotive air conditioning portion of our Mobile Climate Systems Division to ContiTech AG,” said Chairman, CEO and President, Don Washkewicz. “We believe this change in group and management structure will better leverage the natural synergies among our operating groups and will foster greater focus, efficiencies and opportunities for growth. Our new reporting segment names more accurately describe the breadth of our capabilities and the

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position we have achieved as an innovative provider of highly engineered aerospace systems to our customers.”

In fiscal year 2014, the financial results of the CIC group will be reported in the Diversified Industrial Segment. On a geographic basis, approximately 70% of CIC group sales will be reported within Diversified Industrial North America and approximately 30% of CIC group sales will be reported within Diversified Industrial International.

The company also announced that, beginning with the first quarter of fiscal year 2014, it will provide supplemental information, including sales, on three global technology platforms. This supplemental information is expected to provide greater clarity into the operations that comprise the Diversified Industrial Segment. The three global technology platforms are strategically aligned based on complementary technologies and will be called Motion Systems, Flow and Process Control, and Filtration and Engineered Materials.

“This supplemental information will provide greater transparency and showcase the breadth of the technologies that we leverage in unique ways to meet our customers' needs around the world,” added Washkewicz. “We believe that this information will broaden awareness of our competitive strengths and the scope of our global footprint, end markets, sales channels, products and applications.”

Historical sales and operating income for the CIC segment, that will now be included in the Diversified Industrial Segment in North America and International, is included in this press release and will be posted on the company's investor information site at www.phstock.com.

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.


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; ability to realize anticipated benefits of the consolidation of the Climate and Industrial Controls Group; 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.


###





3



 
 
 
 
 
 
 
 
 
PARKER-HANNIFIN CORPORATION
 
 
 
 
 
BUSINESS SEGMENT INFORMATION BY INDUSTRY - REFLECTING CONSOLIDATION OF CIC SEGMENT INTO INDUSTRIAL SEGMENT
 
 
 
 
FY2013
 
 
 
 
 
 
(Unaudited)
 
Three Months Ending
 
Fiscal Year-to-Date
(Dollars in thousands)
 
September 30, 2012

December 31, 2012

March 31, 2013

 
September 30, 2012

December 31, 2012

March 31, 2013

Net sales
 
 
 
 
 
 
 
 
    Industrial:
 
 
 
 
 
 
 
 
       North America
 
 
 
 
 
 
 
 
         North America - as reported
 
$
1,266,047

$
1,197,705

$
1,283,649

 
$
1,266,047

$
2,463,752

$
3,747,401

         CIC North America
 
159,232

119,675

144,781

 
159,232

278,907

423,688

             North America w/CIC
 
1,425,279

1,317,380

1,428,430

 
1,425,279

2,742,659

4,171,089

 
 
 
 
 
 
 
 
 
       International
 
 
 
 
 
 
 
 
         International - as reported
 
1,176,890

1,168,961

1,241,464

 
1,176,890

2,345,851

3,587,315

         CIC International
 
71,683

50,498

59,121

 
71,683

122,181

181,302

             International w/CIC
 
1,248,573

1,219,459

1,300,585

 
1,248,573

2,468,032

3,768,617

 
 
 
 
 
 
 
 
 
    Aerospace
 
541,083

528,656

578,026

 
541,083

1,069,739

1,647,765

Total
 
$
3,214,935

$
3,065,495

$
3,307,041

 
$
3,214,935

$
6,280,430

$
9,587,471

 
 
 
 
 
 
 
 
 
Segment operating income
 
 
 
 
 
 
 
 
    Industrial:
 
 
 
 
 
 
 
 
       North America
 
 
 
 
 
 
 
 
         North America - as reported
 
$
227,192

$
183,914

$
209,048

 
$
227,192

$
411,106

$
620,154

         CIC North America
 
16,883

6,517

15,439

 
16,883

23,400

38,839

             North America w/CIC
 
244,075

190,431

224,487

 
244,075

434,506

658,993

 
 
 
 
 
 
 
 
 
       International
 
 
 
 
 
 
 
 
         International - as reported
 
151,771

123,434

152,309

 
151,771

275,205

427,514

         CIC International
 
4,827

1,613

5,885

 
4,827

6,440

12,325

             International w/CIC
 
156,598

125,047

158,194

 
156,598

281,645

439,839

 
 
 
 
 
 
 
 
 
    Aerospace
 
61,898

52,172

80,080

 
61,898

114,070

194,150

Total segment operating income
 
462,571

367,650

462,761

 
462,571

830,221

1,292,982

Corporate general and administrative expenses
 
39,767

45,401

41,410

 
39,767

85,168

126,578

Income before interest and other
 
422,804

322,249

421,351

 
422,804

745,053

1,166,404

Interest expense
 
23,509

24,216

23,050

 
23,509

47,725

70,775

Other expense
 
63,237

35,404

59,750

 
63,237

98,641

158,391

Income before income taxes
 
$
336,058

$
262,629

$
338,551

 
$
336,058

$
598,687

$
937,238






 
 
 
 
 
 
 
 
 
 
PARKER-HANNIFIN CORPORATION
 
 
 
 
 
 
 
BUSINESS SEGMENT INFORMATION BY INDUSTRY - REFLECTING CONSOLIDATION OF CIC SEGMENT INTO INDUSTRIAL SEGMENT
 
 
 
 
 
FY2012
 
 
 
 
 
 
 
(Unaudited)
Three Months Ending
Fiscal Year-to-Date
(Dollars in thousands)
September 30, 2011

December 31, 2011

March 31, 2012

June 30, 2012

 
September 30, 2011

December 31, 2011

March 31, 2012

June 30, 2012

Net sales
 
 
 
 
 
 
 
 
 
    Industrial:
 
 
 
 
 
 
 
 
 
       North America
 
 
 
 
 
 
 
 
 
         North America - as reported
$
1,204,817

$
1,183,352

$
1,315,357

$
1,337,580

 
$
1,204,817

$
2,388,169

$
3,703,526

$
5,041,106

         CIC North America
165,310

138,030

171,338

192,273

 
165,310

303,340

474,678

666,951

             North America w/CIC
1,370,127

1,321,382

1,486,695

1,529,853

 
1,370,127

2,691,509

4,178,204

5,708,057

 
 
 
 
 
 
 
 
 
 
       International
 
 
 
 
 
 
 
 
 
         International - as reported
1,289,115

1,218,812

1,286,751

1,239,571

 
1,289,115

2,507,927

3,794,678

5,034,249

         CIC International
77,147

70,133

77,357

76,252

 
77,147

147,280

224,637

300,889

             International w/CIC
1,366,262

1,288,945

1,364,108

1,315,823

 
1,366,262

2,655,207

4,019,315

5,335,138

 
 
 
 
 
 
 
 
 
 
    Aerospace
497,492

496,505

542,760

565,990

 
497,492

993,997

1,536,757

2,102,747

Total
$
3,233,881

$
3,106,832

$
3,393,563

$
3,411,666

 
$
3,233,881

$
6,340,713

$
9,734,276

$
13,145,942

 
 
 
 
 
 
 
 
 
 
Segment operating income
 
 
 
 
 
 
 
 
 
    Industrial:
 
 
 
 
 
 
 
 
 
       North America
 
 
 
 
 
 
 
 
 
         North America - as reported
$
223,227

$
195,738

$
226,986

$
249,059

 
$
223,227

$
418,965

$
645,951

$
895,010

         CIC North America
15,556

6,980

16,781

25,925

 
15,556

22,536

39,317

65,242

             North America w/CIC
238,783

202,718

243,767

274,984

 
238,783

441,501

685,268

960,252

 
 
 
 
 
 
 
 
 
 
       International
 
 
 
 
 
 
 
 
 
         International - as reported
208,219

165,940

195,065

163,899

 
208,219

374,159

569,224

733,123

         CIC International
4,236

2,843

6,422

5,531

 
4,236

7,079

13,501

19,032

             International w/CIC
212,455

168,783

201,487

169,430

 
212,455

381,238

582,725

752,155

 
 
 
 
 
 
 
 
 
 
    Aerospace
68,637

70,262

65,925

85,311

 
68,637

138,899

204,824

290,135

Total segment operating income
519,875

441,763

511,179

529,725

 
519,875

961,638

1,472,817

2,002,542

Corporate general and administrative expenses
58,016

46,136

38,377

50,838

 
58,016

104,152

142,529

193,367

Income before interest and other
461,859

395,627

472,802

478,887

 
461,859

857,486

1,330,288

1,809,175

Interest expense
23,221

23,769

22,313

23,487

 
23,221

46,990

69,303

92,790

Other expense
27,053

32,911

49,662

30,061

 
27,053

59,964

109,626

139,687

Income before income taxes
$
411,585

$
338,947

$
400,827

$
425,339

 
$
411,585

$
750,532

$
1,151,359

$
1,576,698


5



 
 
 
 
 
 
 
 
 
 
PARKER-HANNIFIN CORPORATION
 
 
 
 
 
 
 
BUSINESS SEGMENT INFORMATION BY INDUSTRY - REFLECTING CONSOLIDATION OF CIC SEGMENT INTO INDUSTRIAL SEGMENT
 
 
 
 
 
FY2011
 
 
 
 
 
 
 
(Unaudited)
Three Months Ending
 
Fiscal Year-to-Date
(Dollars in thousands)
September 30, 2010

December 31, 2010

March 31, 2011

June 30, 2011

 
September 30, 2010

December 31, 2010

March 31, 2011

June 30, 2011

Net sales
 
 
 
 
 
 
 
 
 
    Industrial:
 
 
 
 
 
 
 
 
 
       North America
 
 
 
 
 
 
 
 
 
         North America - as reported
$
1,064,915

$
1,045,469

$
1,178,714

$
1,227,412

 
$
1,064,915

$
2,110,384

$
3,289,098

$
4,516,510

         CIC North America
166,088

144,692

184,772

192,490

 
166,088

310,780

495,552

688,042

             North America w/CIC
1,231,003

1,190,161

1,363,486

1,419,902

 
1,231,003

2,421,164

3,784,650

5,204,552

 
 
 
 
 
 
 
 
 
 
       International
 
 
 
 
 
 
 
 
 
         International - as reported
1,092,981

1,147,231

1,293,047

1,383,748

 
1,092,981

2,240,212

3,533,259

4,917,007

         CIC International
68,609

69,642

79,764

84,312

 
68,609

138,251

218,015

302,327

             International w/CIC
1,161,590

1,216,873

1,372,811

1,468,060

 
1,161,590

2,378,463

3,751,274

5,219,334

 
 
 
 
 
 
 
 
 
 
    Aerospace
436,680

459,630

503,806

521,868

 
436,680

896,310

1,400,116

1,921,984

Total
$
2,829,273

$
2,866,664

$
3,240,103

$
3,409,830

 
$
2,829,273

$
5,695,937

$
8,936,040

$
12,345,870

 
 
 
 
 
 
 
 
 
 
Segment operating income
 
 
 
 
 
 
 
 
 
    Industrial:
 
 
 
 
 
 
 
 
 
       North America
 
 
 
 
 
 
 
 
 
         North America - as reported
$
189,362

$
159,429

$
189,463

$
207,290

 
$
189,362

$
348,791

$
538,254

$
745,544

         CIC North America
16,449

6,658

18,023

17,654

 
16,449

23,107

41,130

58,784

             North America w/CIC
205,811

166,087

207,486

224,944

 
205,811

371,898

579,384

804,328

 
 
 
 
 
 
 
 
 
 
       International
 
 
 
 
 
 
 
 
 
         International - as reported
183,800

167,776

199,798

202,848

 
183,800

351,576

551,374

754,222

         CIC International
5,103

2,843

4,554

4,850

 
5,103

7,946

12,500

17,350

             International w/CIC
188,903

170,619

204,352

207,698

 
188,903

359,522

563,874

771,572

 
 
 
 
 
 
 
 
 
 
    Aerospace
43,776

63,644

68,984

70,722

 
43,776

107,420

176,404

247,126

Total segment operating income
438,490

400,350

480,822

503,364

 
438,490

838,840

1,319,662

1,823,026

Corporate general and administrative expenses
33,354

37,593

41,734

51,187

 
33,354

70,947

112,681

163,868

Income before interest and other
405,136

362,757

439,088

452,177

 
405,136

767,893

1,206,981

1,659,158

Interest expense
24,633

25,631

24,619

24,821

 
24,633

50,264

74,883

99,704

Other expense
44,139

30,876

24,752

45,966

 
44,139

75,015

99,767

145,733

Income before income taxes
$
336,364

$
306,250

$
389,717

$
381,390

 
$
336,364

$
642,614

$
1,032,331

$
1,413,721