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CLEVELAND, August 5, 2021 -- Parker Hannifin Corporation (NYSE: PH), the global leader in motion and control technologies, today reported results for the fiscal 2021 fourth quarter and full year ended June 30, 2021. Fiscal 2021 fourth quarter sales were an all-time quarterly record at $3.96 billion, an increase of 25% compared with $3.16 billion in the fourth quarter of fiscal 2020. Net income was also a record at $504.8 million, an increase of 74% compared with $289.5 million in the prior year quarter. Fiscal 2021 fourth quarter earnings per share were also an all-time quarterly record at $3.84, an increase of 72% compared with $2.23 in the fourth quarter of fiscal 2020. Adjusted earnings per share increased 46% to $4.38 compared with adjusted earnings per share of $2.99 in the prior year quarter. A reconciliation of non-GAAP measures is included in the financial tables of this press release.

“We had an outstanding fourth quarter that capped off a record year for Parker,” said Chairman and Chief Executive Officer, Tom Williams. "Despite extraordinary challenges, we generated record financial performance in fiscal 2021, setting all-time highs for sales, net income, earnings per share, segment operating margins and cash flow from operations. Notably, our full year adjusted segment operating margins reached 21.1%, a 220 basis point improvement versus the prior year. Our continued execution of The Win Strategy™ is taking our performance to new heights. My thanks to all Parker team members for their contributions to a great year.”

For the full year, fiscal 2021 sales were a record at $14.35 billion, an increase of 5% compared with $13.70 billion in fiscal 2020. Net income was a record at $1.75 billion, a 45% increase compared with $1.20 billion in the prior year period. Fiscal 2021 earnings per share increased 44% to a record $13.35 compared with $9.26 in fiscal 2020. Adjusted earnings per share increased 21% to $15.04 compared with $12.44 in fiscal 2020. Fiscal 2021 cash flow from operations was an all-time record at $2.58 billion, or 17.9% of sales, compared with $2.07 billion, or 15.1% of sales in the prior year period.

For the fiscal year ending June 30, 2022, the company has issued guidance for earnings per share to the range of $14.08 to $14.88, or $16.20 to $17.00 on an adjusted basis. Guidance assumes organic sales growth of approximately 5% to 9% compared with the prior year. Fiscal year 2022 guidance is adjusted on a pre-tax basis for expected business realignment expenses of approximately $35 million, LORD costs to achieve of approximately $7 million and acquisition-related intangible asset amortization of approximately $320 million. A reconciliation of forecasted earnings per share to adjusted forecasted earnings per share is included in the financial tables of this press release.

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; (c) EBITDA margin; and (d) 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. Often but not always, 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. Neither Parker nor any of its respective associates or directors, officers or advisers, provides any representation, assurance or guarantee that the occurrence of the events expressed or implied in any forward-looking statements in this press release will actually occur. 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 past performance or 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

The risks and uncertainties in connection with such forward-looking statements related to the proposed acquisition of Meggitt include, but are not limited to, the occurrence of any event, change or other circumstances that could delay the closing of the proposed acquisition; the possibility of non-consummation of the proposed Acquisition; the failure to satisfy any of the conditions to the proposed acquisition (including the satisfaction of the conditions detailed in the Rule 2.7 announcement); the possibility that a governmental entity may prohibit the consummation of the proposed acquisition or may delay or refuse to grant a necessary regulatory approval in connection with the proposed acquisition, or that in order for the parties to obtain any such regulatory approvals, conditions are imposed that adversely affect the anticipated benefits from the proposed acquisition or cause the parties to abandon the proposed acquisition; adverse effects on Parker’s common stock because of the failure to complete the proposed acquisition; Parker’s business experiencing disruptions due to acquisition-related uncertainty or other factors making it more difficult to maintain relationships with employees, business partners or governmental entities; the possibility that the expected synergies and value creation from the proposed acquisition will not be realized or will not be realized within the expected time period; the parties being unable to successfully implement integration strategies; and significant transaction costs related to the proposed acquisition. Readers should consider these forward-looking statements in light of risk factors discussed in Parker’s Annual Report on Form 10-K for the fiscal year ended June 30, 2020 and other periodic filings made with the SEC.

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 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; legal and regulatory developments and changes; 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; local and global political and economic conditions; inability to obtain, or meet conditions imposed for, required governmental and regulatory approvals; changes in consumer habits and preferences; foreign exchange rate fluctuations and interest rate fluctuations (including those from any potential credit rating decline); government actions and natural phenomena such as floods, earthquakes, hurricanes and pandemics; and success of business and operating initiatives.


PARKER HANNIFIN CORPORATION - JUNE 30, 2021							Exhibit 99.1
CONSOLIDATED STATEMENT OF INCOME
(Unaudited)	Three Months Ended June 30,				Twelve Months Ended June 30,
(Dollars in thousands, except per share amounts)	2021		2020*		2021		2020*
Net sales	$	3,958,869	$	3,160,603	$	14,347,640	$	13,695,520
Cost of sales	2,832,281		2,365,531		10,449,680		10,292,291
Selling, general and administrative expenses	414,048		352,793		1,527,302		1,656,553
Interest expense	60,258		74,549		250,036		308,161
Other (income) expense, net	(4,269)		5,374		(126,335)		(68,339)
Income before income taxes	656,551		362,356		2,246,957		1,506,854
Income taxes	151,582		72,879		500,096		304,522
Net income	504,969		289,477		1,746,861		1,202,332
Less: Noncontrolling interests	176		(21)		761		362
Net income attributable to common shareholders	$	504,793	$	289,498	$	1,746,100	$	1,201,970

Earnings per share attributable to common shareholders:
Basic earnings per share	$	3.91	$	2.25	$	13.54	$	9.36
Diluted earnings per share	$	3.84	$	2.23	$	13.35	$	9.26

Average shares outstanding during period - Basic	129,192,426		128,523,334		128,999,879		128,418,495
Average shares outstanding during period - Diluted	131,554,199		129,993,001		130,834,478		129,805,034


CASH DIVIDENDS PER COMMON SHARE
(Unaudited)	Three Months Ended June 30,				Twelve Months Ended June 30,
(Amounts in dollars)	2021		2020		2021		2020
Cash dividends per common share	$	1.03	$	0.88	$	3.67	$	3.52

RECONCILIATION OF EARNINGS PER DILUTED SHARE TO ADJUSTED EARNINGS PER DILUTED SHARE
(Unaudited)	Three Months Ended June 30,				Twelve Months Ended June 30,
(Amounts in dollars)	2021		2020*		2021		2020*
Earnings per diluted share	$	3.84	$	2.23	$	13.35	$	9.26
Adjustments:
Acquired intangible asset amortization expense	0.62		0.62		2.49		2.19
Business realignment charges	0.06		0.37		0.36		0.59
Lord costs to achieve	0.01		0.02		0.08		0.16
Exotic costs to achieve	—		—		—		0.01
Acquisition-related expenses	0.03		0.03		0.03		1.45
Gain on sale of land	—		—		(0.77)		—
Tax effect of adjustments1	(0.18)		(0.23)		(0.50)		(1.03)
Favorable tax settlement	—		(0.05)		—		(0.19)
Adjusted earnings per diluted share	$	4.38	$	2.99	$	15.04	$	12.44

*Prior periods have been adjusted to reflect the change in inventory accounting method, as described in the attached press release.

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 - JUNE 30, 2021										Exhibit 99.1
RECONCILIATION OF EBITDA TO ADJUSTED EBITDA
(Unaudited)	Three Months Ended June 30,						Twelve Months Ended June 30,
(Dollars in thousands)	2021			2020*			2021			2020*
Net sales	$	3,958,869		$	3,160,603		$	14,347,640		$	13,695,520

Net income	$	504,969		$	289,477		$	1,746,861		$	1,202,332
Income taxes	151,582			72,879			500,096			304,522
Depreciation and amortization	146,582			146,582			595,390			537,531
Interest expense	60,258			74,549			250,036			308,161
EBITDA	863,391			583,487			3,092,383			2,352,546
Adjustments:
Business realignment charges	7,792			47,601			47,862			75,614

Lord costs to achieve	1,727			2,166			11,222			20,669
Exotic costs to achieve	20			338			719			1,908
Acquisition-related expenses	3,549			4,437			3,549			188,518
Gain on sale of land	—			—			(100,893)			—
Adjusted EBITDA	$	876,479		$	638,029		$	3,054,842		$	2,639,255

EBITDA margin	21.8		%	18.5		%	21.6		%	17.2		%
Adjusted EBITDA margin	22.1		%	20.2		%	21.3		%	19.3		%

*Prior periods have been adjusted to reflect the change in inventory accounting method, as described in the attached press release.


PARKER HANNIFIN CORPORATION - JUNE 30, 2021							Exhibit 99.1
BUSINESS SEGMENT INFORMATION
(Unaudited)	Three Months Ended June 30,				Twelve Months Ended June 30,
(Dollars in thousands)	2021		2020*		2021		2020*
Net sales
Diversified Industrial:
North America	$	1,823,078	$	1,440,263	$	6,676,449	$	6,456,298
International	1,505,835		1,096,380		5,283,710		4,504,587
Aerospace Systems	629,956		623,960		2,387,481		2,734,635
Total net sales	$	3,958,869	$	3,160,603	$	14,347,640	$	13,695,520
Segment operating income
Diversified Industrial:
North America	$	360,378	$	219,785	$	1,247,419	$	985,944
International	306,513		175,420		988,054		674,763
Aerospace Systems	123,097		105,441		402,895		476,900
Total segment operating income	789,988		500,646		2,638,368		2,137,607
Corporate general and administrative expenses	54,883		37,999		178,427		170,903
Income before interest expense and other expense	735,105		462,647		2,459,941		1,966,704
Interest expense	60,258		74,549		250,036		308,161
Other expense (income)	18,296		25,742		(37,052)		151,689
Income before income taxes	$	656,551	$	362,356	$	2,246,957	$	1,506,854

*Prior periods have been adjusted to reflect the change in inventory accounting method, as described in the attached press release.


PARKER HANNIFIN CORPORATION - JUNE 30, 2021							Exhibit 99.1
RECONCILIATION OF TOTAL SEGMENT OPERATING MARGIN TO ADJUSTED TOTAL SEGMENT OPERATING MARGIN

(Unaudited)	Three Months Ended				Three Months Ended
(Dollars in thousands)	June 30, 2021				June 30, 2020
	Operating income		Operating margin		Operating income		Operating margin
Total segment operating income	$	789,988	20.0	%	$	500,646	15.8	%
Adjustments:
Acquired intangible asset amortization expense	81,254				80,737
Business realignment charges	7,347				46,619
Lord costs to achieve	1,727				2,166
Exotic costs to achieve	20				338

Adjusted total segment operating income	$	880,336	22.2	%	$	630,506	19.9	%

	Twelve Months Ended				Twelve Months Ended
	June 30, 2021				June 30, 2020
	Operating income		Operating margin		Operating income		Operating margin
Total segment operating income	$	2,638,368	18.4	%	$	2,137,607	15.6	%
Adjustments:
Acquired intangible asset amortization expense	325,447				284,632
Business realignment charges	45,237				74,389
Lord costs to achieve	11,222				20,669
Exotic costs to achieve	719				1,908
Acquisition-related expenses	—				69,304
Adjusted total segment operating income	$	3,020,993	21.1	%	$	2,588,509	18.9	%


PARKER HANNIFIN CORPORATION - JUNE 30, 2021			Exhibit 99.1
CONSOLIDATED BALANCE SHEET
(Unaudited)	June 30,		June 30,
(Dollars in thousands)	2021		2020*
Assets
Current assets:
Cash and cash equivalents	$	733,117	$	685,514
Marketable securities and other investments	39,116		70,805
Trade accounts receivable, net	2,183,594		1,854,398
Non-trade and notes receivable	326,315		244,870
Inventories	2,090,642		1,964,195
Prepaid expenses and other	243,966		214,986
Total current assets	5,616,750		5,034,768
Property, plant and equipment, net	2,266,476		2,292,735
Deferred income taxes	104,251		126,839
Investments and other assets	774,239		764,563
Intangible assets, net	3,519,797		3,798,913
Goodwill	8,059,687		7,869,935
Total assets	$	20,341,200	$	19,887,753

Liabilities and equity
Current liabilities:
Notes payable and long-term debt payable within one year	$	2,824	$	809,529
Accounts payable, trade	1,667,878		1,111,759
Accrued payrolls and other compensation	507,027		424,231
Accrued domestic and foreign taxes	236,384		195,314
Other accrued liabilities	682,390		607,540
Total current liabilities	3,096,503		3,148,373
Long-term debt	6,582,053		7,652,256
Pensions and other postretirement benefits	1,055,638		1,887,414
Deferred income taxes	553,981		418,851
Other liabilities	639,355		539,089
Shareholders' equity	8,398,307		6,227,224
Noncontrolling interests	15,363		14,546
Total liabilities and equity	$	20,341,200	$	19,887,753

*Prior periods have been adjusted to reflect the change in inventory accounting method, as described in the attached press release.


PARKER HANNIFIN CORPORATION - JUNE 30, 2021			Exhibit 99.1
CONSOLIDATED STATEMENT OF CASH FLOWS
(Unaudited)	Twelve Months Ended June 30,
(Dollars in thousands)	2021		2020*
Cash flows from operating activities:
Net income	$	1,746,861	$	1,202,332
Depreciation and amortization	595,390		537,531
Share incentive plan compensation	121,483		111,375

Gain on property, plant and equipment	(109,332)		(1,850)
Gain on marketable securities	(11,570)		(587)
Gain on investments	(12,616)		(2,084)
Net change in receivables, inventories and trade payables	142,673		415,025
Net change in other assets and liabilities	150,136		(211,049)
Other, net	(48,024)		20,256
Net cash provided by operating activities	2,575,001		2,070,949
Cash flows from investing activities:
Acquisitions (net of cash of $82,192 in 2020)	—		(5,076,064)
Capital expenditures	(209,957)		(232,591)
Proceeds from sale of property, plant and equipment	140,590		26,345

Purchases of marketable securities and other investments	(34,809)		(194,742)
Maturities and sales of marketable securities and other investments	79,419		275,483
Other	24,744		177,576
Net cash used in investing activities	(13)		(5,023,993)
Cash flows from financing activities:
Net payments for common stock activity	(214,134)		(213,426)
Acquisition of noncontrolling interests	—		(1,200)
Net (payments for) proceeds from debt	(1,934,031)		1,117,774
Dividends paid	(475,174)		(453,838)
Net cash (used in) provided by financing activities	(2,623,339)		449,310
Effect of exchange rate changes on cash	95,954		(30,519)
Net increase (decrease) in cash and cash equivalents	47,603		(2,534,253)
Cash and cash equivalents at beginning of year	685,514		3,219,767
Cash and cash equivalents at end of period	$	733,117	$	685,514

*Prior periods have been adjusted to reflect the change in inventory accounting method, as described in the attached press release.



PARKER HANNIFIN CORPORATION - JUNE 30, 2021						Exhibit 99.1
RECONCILIATION OF FORECASTED EARNINGS PER DILUTED SHARE TO ADJUSTED FORECASTED EARNINGS PER DILUTED SHARE

(Unaudited)
(Amounts in dollars)						Fiscal Year 2022
Forecasted earnings per diluted share						$14.08 to $14.88
Adjustments:
Business realignment charges						0.27
Costs to achieve						0.05
Acquisition-related intangible asset amortization expense						2.43

Tax effect of adjustments1						(0.63)
Adjusted forecasted earnings per diluted share						$16.20 to $17.00

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 - JUNE 30, 2021							Exhibit 99.1
LIFO ACCOUNTING CHANGE
(Unaudited)

During the fourth quarter of fiscal 2021, the company voluntarily changed its method of accounting for certain domestic inventory previously valued by the LIFO method to the FIFO method. The effects of the change in accounting principle from LIFO to FIFO have been retrospectively applied to all periods presented in the table below. The impact of this accounting change for fiscal 2021 caused a $0.11 increase in earnings per share.



Recast Results
	Three Months Ended
Dollars in thousands, except per share amounts	September 30, 2020		December 31, 2020		March 31, 2021			June 30, 2021
Consolidated Statements of Income
Cost of sales	$	2,386,449	$	2,518,165	$	2,712,785		$	2,832,281
Income before income taxes	413,174		577,892		599,340			656,551
Income tax expense	93,063		129,350		126,101			151,582
Net income	320,111		448,542		473,239			504,969
Net income attributable to common shareholders	319,803		448,351		473,153			504,793

Earnings per share attributable to common shareholders:
Basic	$	2.48	$	3.48	$	3.67		$	3.91
Diluted	$	2.45	$	3.42	$	3.60		$	3.84

	Three Months Ended
Dollars in thousands, except per share amounts	September 30, 2019		December 31, 2019		March 31, 2020			June 30, 2020
Consolidated Statements of Income
Cost of sales	$	2,480,992	$	2,686,131	$	2,759,637		$	2,365,531
Income before income taxes	431,905		251,380		461,213			362,356
Income tax expense	93,811		49,331		88,501			72,879
Net income	338,094		202,049		372,712			289,477
Net income attributable to common shareholders	337,951		201,925		372,596			289,498

Earnings per share attributable to common shareholders:
Basic	$	2.63	$	1.57	$	2.90		$	2.25
Diluted	$	2.60	$	1.55	$	2.87		$	2.23


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