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CLEVELAND, November 5, 2020 -- Parker Hannifin Corporation (NYSE: PH), the global leader in motion and control technologies, today reported results for the fiscal 2021 first quarter ended September 30, 2020. Fiscal 2021 first quarter sales were $3.23 billion, compared with $3.33 billion in the prior year quarter. Net income was $321.4 million, compared with $338.9 million in the first quarter of fiscal 2020. Fiscal 2021 first quarter earnings per share were $2.47, compared with $2.60 in the prior year quarter. Adjusted earnings per share were $3.07, compared with adjusted earnings per share of $3.05 in the first quarter of fiscal 2020. Fiscal year-to-date cash flow from operations was a first quarter record at $737.4 million and reached 22.8% of sales, compared with $449.1 million or 13.5% of sales in the prior year period. A reconciliation of non-GAAP measures is included in the financial tables of this press release.

“Thanks to the dedication of our global team executing The Win Strategy™, Parker continues to deliver excellent results in the midst of the ongoing challenging market conditions,” said Chairman and Chief Executive Officer, Tom Williams. “We generated record operating cash flow and impressive margins in the quarter, reflecting both the near-term measures we have put in place to manage our cost structure and the portfolio and performance actions we have taken to strengthen our business. Notably, adjusted total segment operating margin increased 110 basis points compared with the prior year to 19.9% and adjusted EBITDA margin increased 100 basis points to 20.1% in the quarter, despite an organic sales decline of 13%. During the quarter, the balance sheet was further strengthened with debt repayment of

For the fiscal year ending June 30, 2021, the company has increased guidance for earnings per share to the range of $9.93 to $10.53, or $11.70 to $12.30 on an adjusted basis. Guidance assumes an organic sales decline in the range of 9% to 6%. Fiscal year 2021 guidance is adjusted on a pre-tax basis for expected business realignment expenses of approximately $60 million, costs to achieve of approximately $18 million, acquisition-related intangible asset amortization of approximately $322 million and a gain on the sale of land of approximately $101 million, which closed in October, 2020. A reconciliation of forecasted earnings per share to adjusted forecasted earnings per share is included in the financial tables of this press release.

Williams added, “Given our strong first quarter performance, we are updating our previously issued guidance but remain cautious about performance trends for the remainder of this fiscal year. While there are indicators that the worst of the economic downturn is behind us, the COVID-19 pandemic is likely to continue to create headwinds in the global environment. We are confident in our ability to perform in FY21 and in the future, driven by the Win Strategy 3.0 as our business system."

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 % change in orders for Diversified Industrial North America and Diversified Industrial International, and the year-over-year 12-month rolling average of orders for the Aerospace Systems Segment.

This press release contains references to non-GAAP financial information including (a) adjusted earnings per share; (b) adjusted total segment operating margin; EBITDA margin; and adjusted EBITDA margin. The adjusted earnings per share and total segment operating margin measures are presented to allow investors and the company to meaningfully evaluate changes in earnings per share and total segment operating margin on a comparable basis from period to period. This press release also contains references to EBITDA, EBITDA margin and adjusted EBITDA margin. EBITDA is defined as earnings before interest, taxes, depreciation and amortization. Although EBITDA, EBITDA margin and adjusted EBITDA margin are not measures of performance calculated in accordance with GAAP, we believe that they are useful to an investor in evaluating the results of this quarter versus the prior period. A reconciliation of non-GAAP measures is included in the financial tables of this press release.

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. These statements may be identified from the use of forward-looking terminology such as “anticipates,” “believes,” “may,” “should,” “could,” “potential,” “continues,” “plans,” “forecasts,” “estimates,” “projects,” “predicts,” “would,” “intends,” “expects,” “targets,” “is likely,” “will,” or

the negative of these terms and similar expressions, and include all statements regarding future performance, earnings projections, events or developments. Parker cautions readers not to place undue reliance on these 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. Additionally, the actual impact of changes in tax laws in the United States and foreign jurisdictions and any judicial or regulatory interpretation thereof on future performance and earnings projections may impact the company’s tax calculations. 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: the impact of the global outbreak of COVID-19 and governmental and other actions taken in response; 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 integration of CLARCOR, LORD Corporation or Exotic Metals; the ability to successfully divest businesses planned for divestiture and realize the anticipated benefits of such divestitures; 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; ability to implement successfully capital allocation initiatives, including timing, price and execution of share repurchases; availability, limitations or cost increases of raw materials, component products and/or commodities that cannot be recovered in product pricing; ability to manage costs related to insurance and employee retirement and health care benefits; compliance costs associated with environmental laws and regulations; potential labor disruptions; threats associated with and efforts to combat terrorism and cyber-security risks; uncertainties surrounding the ultimate resolution of outstanding legal proceedings, including the outcome of any appeals; global competitive market conditions, including global reactions to U.S. trade policies, and resulting effects on sales and pricing; 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, as well as uncertainties associated with the timing and conditions surrounding the return to service of the Boeing 737 MAX. 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 - SEPTEMBER 30, 2020		Exhibit 99.1
CONSOLIDATED STATEMENT OF INCOME
(Unaudited)	Three Months Ended September 30,
(Dollars in thousands, except per share amounts)			2020		2019
Net sales			$	3,230,540	$	3,334,511
Cost of sales			2,384,328		2,479,741
Selling, general and administrative expenses			369,851		399,179
Interest expense			65,958		69,956
Other (income), net			(4,892)		(47,521)
Income before income taxes			415,295		433,156
Income taxes			93,578		94,115
Net income			321,717		339,041
Less: Noncontrolling interests			308		143
Net income attributable to common shareholders			$	321,409	$	338,898

Earnings per share attributable to common shareholders:
Basic earnings per share			$	2.50	$	2.64
Diluted earnings per share			$	2.47	$	2.60

Average shares outstanding during period - Basic			128,707,745		128,463,992
Average shares outstanding during period - Diluted			130,294,223		130,130,076


CASH DIVIDENDS PER COMMON SHARE
(Unaudited)	Three Months Ended September 30,
(Amounts in dollars)			2020		2019
Cash dividends per common share			$	0.88	$	0.88

RECONCILIATION OF EARNINGS PER DILUTED SHARE TO ADJUSTED EARNINGS PER DILUTED SHARE
(Unaudited)	Three Months Ended September 30,
(Amounts in dollars)			2020		2019
Earnings per diluted share			$	2.47	$	2.60
Adjustments:
Acquired intangible asset amortization expense			0.63		0.38
Business realignment charges			0.12		0.04
Lord costs to achieve			0.03		0.03
Exotic costs to achieve			—		0.01
Acquisition-related expenses			—		0.14
Tax effect of adjustments1			(0.18)		(0.15)

Adjusted earnings per diluted share			$	3.07	$	3.05

1This line item reflects the aggregate tax effect of all non-tax adjustments reflected in the preceding line items of the table. We estimate the tax effect of each adjustment item by applying our overall effective tax rate for continuing operations to the pre-tax amount, unless the nature of the item and/or the tax jurisdiction in which the item has been recorded requires application of a specific tax rate or tax treatment, in which case the tax effect of such item is estimated by applying such specific tax rate or tax treatment.


PARKER HANNIFIN CORPORATION - SEPTEMBER 30, 2020					Exhibit 99.1
RECONCILIATION OF EBITDA TO ADJUSTED EBITDA
(Unaudited)	Three Months Ended September 30,
(Dollars in thousands)		2020				2019
Net sales		$	3,230,540			$	3,334,511

Net income		$	321,717			$	339,041
Income taxes		93,578				94,115
Depreciation and amortization		148,442				109,071
Interest expense		65,958				69,956
EBITDA		629,695				612,183
Adjustments:
Business realignment charges		15,701				4,723

Lord costs to achieve		3,615				3,414
Exotic costs to achieve		332				595
Acquisition-related expenses		—				17,449
Adjusted EBITDA		$	649,343			$	638,364

EBITDA margin		19.5		%		18.4		%
Adjusted EBITDA margin		20.1		%		19.1		%


PARKER HANNIFIN CORPORATION - SEPTEMBER 30, 2020				Exhibit 99.1
BUSINESS SEGMENT INFORMATION
(Unaudited)	Three Months Ended September 30,
(Dollars in thousands)		2020			2019
Net sales
Diversified Industrial:
North America		$	1,528,111		$	1,624,605
International		1,129,251			1,078,850
Aerospace Systems		573,178			631,056
Total net sales		$	3,230,540		$	3,334,511
Segment operating income
Diversified Industrial:
North America		$	268,833		$	275,192
International		186,901			168,573
Aerospace Systems		86,766			122,980
Total segment operating income		542,500			566,745
Corporate general and administrative expenses		36,735			48,902
Income before interest expense and other expense		505,765			517,843
Interest expense		65,958			69,956
Other expense		24,512			14,731
Income before income taxes		$	415,295		$	433,156



RECONCILIATION OF TOTAL SEGMENT OPERATING MARGIN TO ADJUSTED TOTAL SEGMENT OPERATING MARGIN

(Unaudited)	Three Months Ended				Three Months Ended
(Dollars in thousands)	September 30, 2020				September 30, 2019
	Operating income		Operating margin		Operating income		Operating margin
Total segment operating income	$	542,500	16.8	%	$	566,745	17.0	%
Adjustments:
Acquired intangible asset amortization expense	81,703				49,433
Business realignment charges	14,523				4,718
Lord costs to achieve	3,615				3,414
Exotic costs to achieve	332				595
Acquisition-related expenses	—				2,519
Adjusted total segment operating income	$	642,673	19.9	%	$	627,424	18.8	%


PARKER HANNIFIN CORPORATION - SEPTEMBER 30, 2020					Exhibit 99.1
CONSOLIDATED BALANCE SHEET
(Unaudited)	September 30,		June 30,		September 30,
(Dollars in thousands)	2020		2020		2019
Assets
Current assets:
Cash and cash equivalents	$	742,394	$	685,514	$	3,627,393
Marketable securities and other investments	33,463		70,805		282,102
Trade accounts receivable, net	1,860,324		1,854,398		1,983,242
Non-trade and notes receivable	273,991		244,870		288,762
Inventories	1,795,779		1,814,631		1,790,044
Prepaid expenses and other	163,533		214,986		166,536
Total current assets	4,869,484		4,885,204		8,138,079
Plant and equipment, net	2,292,880		2,292,735		1,880,157
Deferred income taxes	129,751		126,839		145,476
Investments and other assets	778,591		764,563		892,508
Intangible assets, net	3,743,314		3,798,913		2,693,756
Goodwill	7,971,897		7,869,935		5,818,613
Total assets	$	19,785,917	$	19,738,189	$	19,568,589

Liabilities and equity
Current liabilities:
Notes payable and long-term debt payable within one year	$	884,450	$	809,529	$	1,736,779
Accounts payable, trade	1,264,991		1,111,759		1,287,420
Accrued payrolls and other compensation	332,110		424,231		310,417
Accrued domestic and foreign taxes	196,429		195,314		188,571
Other accrued liabilities	650,243		607,540		634,141
Total current liabilities	3,328,223		3,148,373		4,157,328
Long-term debt	7,057,723		7,652,256		7,366,912
Pensions and other postretirement benefits	1,864,506		1,887,414		1,261,493
Deferred income taxes	413,891		382,528		178,454
Other liabilities	577,325		539,089		501,610
Shareholders' equity	6,528,964		6,113,983		6,096,616
Noncontrolling interests	15,285		14,546		6,176
Total liabilities and equity	$	19,785,917	$	19,738,189	$	19,568,589


PARKER HANNIFIN CORPORATION - SEPTEMBER 30, 2020			Exhibit 99.1
CONSOLIDATED STATEMENT OF CASH FLOWS
(Unaudited)	Three Months Ended September 30,
(Dollars in thousands)	2020		2019
Cash flows from operating activities:
Net income	$	321,717	$	339,041
Depreciation and amortization	148,442		109,071
Share incentive plan compensation	58,461		52,633

Gain on plant and equipment	(498)		(10,269)
(Gain) loss on marketable securities	(340)		201
Gain on investments	(970)		(498)
Net change in receivables, inventories and trade payables	194,350		53,526
Net change in other assets and liabilities	4,207		(77,794)
Other, net	12,005		(16,780)
Net cash provided by operating activities	737,374		449,131
Cash flows from investing activities:
Acquisitions (net of cash of $8,179 in 2019)	—		(1,696,456)
Capital expenditures	(42,117)		(50,345)
Proceeds from sale of plant and equipment	6,590		19,284

Purchases of marketable securities and other investments	(10,726)		(159,984)
Maturities and sales of marketable securities and other investments	49,107		26,477
Other	1,054		8,070
Net cash provided by (used in) investing activities	3,908		(1,852,954)
Cash flows from financing activities:
Net payments for common stock activity	(21,750)		(71,985)

Net (payments for) proceeds from debt	(557,442)		2,023,714
Dividends paid	(113,542)		(113,352)
Net cash (used in) provided by financing activities	(692,734)		1,838,377
Effect of exchange rate changes on cash	8,332		(26,928)
Net increase in cash and cash equivalents	56,880		407,626
Cash and cash equivalents at beginning of year	685,514		3,219,767
Cash and cash equivalents at end of period	$	742,394	$	3,627,393



PARKER HANNIFIN CORPORATION - SEPTEMBER 30, 2020						Exhibit 99.1
RECONCILIATION OF FORECASTED EARNINGS PER DILUTED SHARE TO ADJUSTED FORECASTED EARNINGS PER DILUTED SHARE

(Unaudited)
(Amounts in dollars)						Fiscal Year 2021
Forecasted earnings per diluted share						$9.93 to $10.53
Adjustments:
Business realignment charges						0.46
Costs to achieve						0.14
Acquisition-related intangible asset amortization expense						2.47
Gain on sale of land						(0.77)
Tax effect of adjustments1						(0.53)
Adjusted forecasted earnings per diluted share						$11.70 to $12.30

1This line item reflects the aggregate tax effect of all non-tax adjustments reflected in the preceding line items of the table. We estimate the tax effect of each adjustment item by applying our overall effective tax rate for continuing operations to the pre-tax amount, unless the nature of the item and/or the tax jurisdiction in which the item has been recorded requires application of a specific tax rate or tax treatment, in which case the tax effect of such item is estimated by applying such specific tax rate or tax treatment.


For Release:	Immediately	Exhibit 99.1

Contact:	Media -
	Aidan Gormley - Director, Global Communications and Branding	216-896-3258
	aidan.gormley@parker.com

	Financial Analysts -
	Robin J. Davenport, Vice President, Corporate Finance	216-896-2265
	rjdavenport@parker.com

Stock Symbol:	PH - NYSE