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 Reports Fiscal 2013 Fourth Quarter and Year End Results

Fiscal 2013 Fourth Quarter Sales a Record at $3.43 Billion
Achieves Fiscal 2013 Full Year Diluted Earnings per Share of $6.26
Issues Guidance for Fiscal 2014 Full Year Earnings

CLEVELAND, August 6, 2013 -- Parker Hannifin Corporation (NYSE: PH), the global leader in motion and control technologies, today reported results for the fiscal 2013 fourth quarter and year ended June 30, 2013. Fiscal 2013 sales were $13.0 billion, compared with $13.1 billion in fiscal 2012. Net income for the year was $948.8 million, compared with $1,155.5 million in fiscal 2012. Fiscal 2013 earnings per diluted share were $6.26, compared with $7.45 in the previous year, and included an increase in domestic qualified pension expense of approximately $0.35 per diluted share due to accounting regulations which required the use of a lower discount rate due to market conditions. Cash flow from operations for fiscal 2013 was $1.2 billion, or 9.1 percent of sales, compared with cash flow from operations of $1.5 billion, or 11.6 percent of sales, in the prior year. Cash flow from operations in 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 10.9 percent for fiscal 2013.


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Fiscal 2013 fourth quarter sales were a record at $3.43 billion compared with $3.41 billion in the same quarter a year ago. Net income for the fiscal 2013 fourth quarter was $271.1 million, compared with $302.3 million in the fourth quarter of fiscal 2012. Earnings per diluted share for the fiscal 2013 fourth quarter were $1.78, compared with $1.96 in last year's fourth quarter. Earnings per diluted share were less than expected due to reduced volumes, and greater than anticipated inventory, acquisition, integration and related expenses.

“Our performance in fiscal year 2013 largely reflects challenging global macro-economic conditions and integration and acquisition related costs,” said Chairman, CEO and President, Don Washkewicz. “As the year progressed, we continued to adapt to weak conditions and drive stronger operational performance finishing positively with record fourth quarter sales and our highest quarterly segment operating margin for the fiscal year at 14.5 percent. For the year, we were able to deliver high levels of segment operating margin and operating cash flows.”

Fourth Quarter Segment Results
In Industrial North America, fiscal 2013 fourth quarter sales decreased 2.6 percent to $1.3 billion, and operating income was $225.1 million compared with $249.1 million in the same period a year ago.

In Industrial International, fourth quarter sales increased 3.3 percent to $1.28 billion, and operating income was $156.2 million compared with $163.9 million in the same period a year ago.

In Aerospace, fourth quarter sales increased 9.5 percent to $620.0 million, and operating income was $86.1 million compared with $85.3 million in the same period a year ago.
   
In Climate and Industrial Controls, fourth quarter sales decreased 16.3 percent to $224.6 million, and operating income was $31.1 million compared with $31.5 million in the same period a year ago. These results reflect the impact of business divestitures completed in fiscal 2013.







Orders
Parker reported orders that were flat for the quarter ended June 30, 2013, compared with the same quarter a year ago. The company reported the following orders:
Orders decreased 5 percent in Industrial North America, compared with the same quarter a year ago.
Orders increased 3 percent in Industrial International, compared with the same quarter a year ago.
Orders increased 3 percent in Aerospace on a rolling 12-month average basis.
Orders were flat in Climate and Industrial Controls, compared with the same quarter a year ago.

Fiscal 2014 Outlook
For fiscal 2014, the company has issued guidance for earnings from continuing operations in the range of $7.35 to $8.15 per diluted share. Fiscal 2014 guidance includes an expected gain of approximately $1.50 per diluted share associated with a previously announced joint venture agreement between Parker Aerospace and GE Aviation and expenses related to possible restructuring of approximately $100 million.

Washkewicz added, “Our current outlook is that throughout fiscal 2014, global macro-economic conditions will remain relatively flat. As a result, we plan to spend approximately $100 million to right size our global operations, which we believe is prudent given these conditions. We will continue to manage our business accordingly while executing the Win Strategy by investing in new product development, expansion in emerging markets, and acquisitions to strengthen our portfolio. These operational actions, combined with our dividend, are expected to deliver strong returns for our shareholders.”

NOTICE OF CONFERENCE CALL: Parker Hannifin's conference call and slide presentation to discuss its fiscal 2013 fourth quarter and full year results are available to all interested parties via live webcast today at 11:00 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

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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 of $13 billion in fiscal year 2013, 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 49 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 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 and similar transactions, including the anticipated closing of the previously announced joint venture with GE Aviation; the determination to undertake business realignment activities and the expected costs thereof and, if undertaken, the ability to complete such activities and realize the anticipated cost savings from such activities; the 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.

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PARKER HANNIFIN CORPORATION - JUNE 30, 2013
 
 
 
 
 
CONSOLIDATED STATEMENT OF INCOME
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Three Months Ended June 30,
 
Twelve Months Ended June 30,
(Dollars in thousands except per share amounts)
 
2013

 
2012

 
2013

 
2012

 
 
 
 
 
 
 
 
 
Net sales
 
$
3,428,233

 
$
3,411,666

 
$
13,015,704

 
$
13,145,942

Cost of sales
 
2,618,067

 
2,572,258

 
10,086,675

 
9,958,337

Gross profit
 
810,166

 
839,408

 
2,929,029

 
3,187,605

Selling, general and administrative expenses
 
413,061

 
386,681

 
1,554,973

 
1,519,316

Interest expense
 
20,777

 
23,487

 
91,552

 
92,790

Other expense (income), net
 
2,565

 
3,901

 
(28,497
)
 
(1,199
)
Income before income taxes
 
373,763

 
425,339

 
1,311,001

 
1,576,698

Income taxes
 
102,633

 
123,037

 
362,217

 
421,206

Net income
 
271,130

 
302,302

 
948,784

 
1,155,492

Less: Noncontrolling interests
 
(34
)
 
337

 
357

 
3,669

Net income attributable to common shareholders
 
$
271,164

 
$
301,965

 
$
948,427

 
$
1,151,823

 
 
 
 
 
 
 
 
 
Earnings per share attributable to common shareholders:
 
 
 
 
 
 
 
 
   Basic earnings per share
 
$
1.82

 
$
2.01

 
$
6.36

 
$
7.62

   Diluted earnings per share
 
$
1.78

 
$
1.96

 
$
6.26

 
$
7.45

 
 
 
 
 
 
 
 
 
Average shares outstanding during period - Basic
 
149,298,277

 
150,470,993

 
149,218,257

 
151,222,033

Average shares outstanding during period - Diluted
 
152,115,402

 
154,155,617

 
151,588,031

 
154,664,510

 
 
 
 
 
 
 
 
 
Cash dividends per common share
 
$
0.45

 
$
0.41

 
$
1.70

 
$
1.54

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
BUSINESS SEGMENT INFORMATION BY INDUSTRY
 
 
 
 
 
 
 
 
 
 
Three Months Ended June 30,
 
Twelve Months Ended June 30,
(Dollars in thousands)
 
2013

 
2012

 
2013

 
2012

Net sales
 
 
 
 
 
 
 
 
    Industrial:
 
 
 
 
 
 
 
 
       North America
 
$
1,303,203

 
$
1,337,580

 
$
5,050,604

 
$
5,041,106

       International
 
1,280,443

 
1,239,571

 
4,867,758

 
5,034,249

    Aerospace
 
619,950

 
565,990

 
2,267,715

 
2,102,747

    Climate & Industrial Controls
 
224,637

 
268,525

 
829,627

 
967,840

Total
 
$
3,428,233

 
$
3,411,666

 
$
13,015,704

 
$
13,145,942

 
 
 
 
 
 
 
 
 
Segment operating income
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
    Industrial:
 
 
 
 
 
 
 
 
       North America
 
$
225,071

 
$
249,059

 
$
845,225

 
$
895,010

       International
 
156,233

 
163,899

 
583,747

 
733,123

    Aerospace
 
86,136

 
85,311

 
280,286

 
290,135

   Climate & Industrial Controls
 
31,063

 
31,456

 
82,227

 
84,274

Total segment operating income
 
498,503

 
529,725

 
1,791,485

 
2,002,542

Corporate general and administrative expenses
 
59,189

 
50,838

 
185,767

 
193,367

Income before interest and other
 
439,314

 
478,887

 
1,605,718

 
1,809,175

Interest expense
 
20,777

 
23,487

 
91,552

 
92,790

Other expense
 
44,774

 
30,061

 
203,165

 
139,687

Income before income taxes
 
$
373,763

 
$
425,339

 
$
1,311,001

 
$
1,576,698







 
 
 
 
 
PARKER HANNIFIN CORPORATION - JUNE 30, 2013
 
 
 
 
CONSOLIDATED BALANCE SHEET
 
 
 
 
 
 
June 30,

 
June, 30

(Dollars in thousands)
 
2013

 
2012

Assets
 
 
 
 
Current assets:
 
 
 
 
Cash and cash equivalents
 
$
1,781,412

 
$
838,317

Accounts receivable, net
 
2,062,745

 
1,992,284

Inventories
 
1,377,405

 
1,400,732

Prepaid expenses
 
182,669

 
137,429

Deferred income taxes
 
126,955

 
129,352

Total current assets
 
5,531,186

 
4,498,114

Plant and equipment, net
 
1,808,240

 
1,719,968

Goodwill
 
3,223,515

 
2,925,856

Intangible assets, net
 
1,290,499

 
1,095,218

Other assets
 
687,458

 
931,126

Total assets
 
$
12,540,898

 
$
11,170,282

 
 
 
 
 
Liabilities and equity
 
 
 
 
Current liabilities:
 
 
 
 
Notes payable
 
$
1,333,826

 
$
225,589

Accounts payable
 
1,156,002

 
1,194,684

Accrued liabilities
 
894,296

 
911,931

Accrued domestic and foreign taxes
 
136,079

 
153,809

Total current liabilities
 
3,520,203

 
2,486,013

Long-term debt
 
1,495,960

 
1,503,946

Pensions and other postretirement benefits
 
1,372,437

 
1,909,755

Deferred income taxes
 
102,920

 
88,091

Other liabilities
 
307,897

 
276,747

Shareholders' equity
 
5,738,426

 
4,896,515

Noncontrolling interests
 
3,055

 
9,215

Total liabilities and equity
 
$
12,540,898

 
$
11,170,282


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PARKER HANNIFIN CORPORATION - JUNE 30, 2013
 
 
 
 
CONSOLIDATED STATEMENT OF CASH FLOWS
 
 
 
 
 
 
Twelve Months Ended June 30,
(Dollars in thousands)
 
2013

 
2012

 
 
 
 
 
Cash flows from operating activities:
 
 
 
 
Net income
 
$
948,784

 
$
1,155,492

Depreciation and amortization
 
335,624

 
321,929

Stock incentive plan compensation
 
84,996

 
80,935

Net change in receivables, inventories, and trade payables
 
11,230

 
(59,732
)
Net change in other assets and liabilities
 
(195,938
)
 
86,407

Other, net
 
6,239

 
(54,646
)
Net cash provided by operating activities
 
1,190,935

 
1,530,385

Cash flows from investing activities:
 
 
 
 
Acquisitions (net of cash of $33,932 in 2013 and $19,161 in 2012)
 
(621,144
)
 
(156,256
)
Capital expenditures
 
(265,896
)
 
(218,817
)
Proceeds from sale of plant and equipment
 
25,047

 
20,404

Proceeds from sale of businesses
 
73,515

 

Other, net
 
(21,367
)
 
(21,099
)
Net cash (used in) investing activities
 
(809,845
)
 
(375,768
)
Cash flows from financing activities:
 
 
 
 
Net payments for common stock activity
 
(159,773
)
 
(430,263
)
Acquisition of noncontrolling interests
 
(1,091
)
 
(147,441
)
Net proceeds from (payments for) debt
 
992,047

 
(5,162
)
Dividends
 
(255,009
)
 
(240,654
)
Net cash provided by (used in) financing activities
 
576,174

 
(823,520
)
Effect of exchange rate changes on cash
 
(14,169
)
 
(150,246
)
Net increase in cash and cash equivalents
 
943,095

 
180,851

Cash and cash equivalents at beginning of period
 
838,317

 
657,466

Cash and cash equivalents at end of period
 
$
1,781,412

 
$
838,317