Exhibit 99.1

PARKER PROFIT IMPROVES DESPITE FLAT SALES; CASH FLOW REMAINS STRONG

Cleveland, Ohio: July 29, 2003—Parker Hannifin Corporation (NYSE: PH) today reported fourth-quarter net income for the period ended June 30, 2003 of $49.1 million, or 42 cents per diluted share, on sales of $1.66 billion. Net income during the quarter was reduced by six cents per share in realignment costs, partially offset by a gain of four cents per share on the sale of a non-core business. For the same period last year, the company reported a quarterly net loss of $11.9 million—10 cents per diluted share—on sales of $1.66 billion. Last year’s fourth-quarter net loss included 44 cents per diluted share in business-realignment costs and asset impairments.

Net income for the full year were up 51 percent, at $196.3 million, or $1.68 per diluted share, including the four-cent per share divestiture gain and 16 cents per share in realignment costs. The company posted record revenues of $6.41 billion for the full year, although without acquisitions, divestitures made in fiscal-year 2002 and a favorable currency effect from business outside the United States, sales would have been down by one percent. In fiscal-year 2002, net income was $130.2 million, or $1.12 per diluted share, including a reduction of 25 cents per share in realignment costs and 32 cents per share in goodwill impairment.

“It was another difficult year in our industrial and aerospace markets, and we again absorbed a substantial increase in pension, insurance and medical costs,” said Parker CEO Don Washkewicz. “Yet we still achieved margin improvement this year in all segments except aerospace. Clearly, execution of our Win Strategy is beginning to pay off, and we expect it to make another positive contribution to profitability in the coming year.”

The company again had strong cash flow from operations, running at a rate of 10 percent of sales, and used a portion of cash generated during the year to contribute $108 million to its pension plans, consistent with its commitment to maintaining well funded plans for employees. Robust cash flow also enabled the company to pay down $146 million of debt and continue its 47-year record of returning higher dividends to shareholders. As of year end, the company

had $246 million in cash, and is well positioned to invest in growth.

“We’re managing our cash-to-cash cycle very well, and with our lean enterprise initiatives, we further reduced the number of days’ inventory and capital expenditures this year,” Washkewicz said. “In terms of realigning the business during the recession, we’ve closed more than 80 facilities in the past three years.”

Operating Results

Industrial, mobile and aerospace demand remained severely depressed, with recent weakening in agriculture and air-conditioning markets. In aerospace, the company noted that JetBlue’s recent order for 100 Embraer-190 jets is a positive for the company, as was another order by US Airways in May for regional jets. “In the aerospace business, we’re concentrating on taking care of our customers, and engineering the best systems,” said Washkewicz. “We continue to enjoy success by first positioning ourselves as a global engineering partner and systems integrator, and serving our customers well in the aftermarket, evidenced by Parker’s recent top-five ranking among 35 different Airbus suppliers.”

In the North American Industrial units, fourth-quarter operating income of $34.6 million was 11.6 percent lower than last year, while sales were 6.8 percent lower, at $716 million, consistent with the decline since March in North American order trends. Full-year operating income in this segment was up 10 percent, at $155.3 million on marginally higher revenues of $2.84 billion, for an operating margin of 5.5 percent.

In the International Industrial businesses, fourth-quarter operating income was $23.5 million on sales of $428.4 million, for an operating margin of 5.5 percent. For the year, the international businesses recorded sales of $1.58 billion, with operating income of $96.3 million, a 6.1-percent operating margin.

In the company’s Climate & Industrial Controls business, which previously was included in the “Other” segment, fourth-quarter operating income was $19.1 million on sales of $181.4 million, a 10.5 percent return on sales. The business generated full-year operating income of $63.4 million on sales of $665.6 million, a return on sales of 9.5 percent.

Parker Aerospace saw a 3.5-percent drop in fourth-quarter sales to $276.8 million, while operating income fell nine percent to $34 million, for a return on sales of 12.3 percent. For the year, operating income for the aerospace business was $157.3 million on sales of $1.11 billion, a 14.2-percent return on sales.

In the “Other” segment, comprised of the Wynn Specialty Chemical and Astron metal buildings units, quarterly operating income was $4.6 million on $58 million in sales, for an operating margin of 8.0 percent. Full-year sales were $210.3 million, and operating income was $11.6 million, for a return on sales of 5.5 percent.

Outlook

In the future, the company will provide guidance using a range of expected rate-of-change percentages (up or down from the prior year) for revenue and operating income by segment, in addition to assumptions for non-operating items such as administrative costs, interest expense and tax rates. The aim is for investors to supplement this information with real-time economic data, including the company’s monthly disclosure of order rates, to factor into analytical models.

For fiscal-year 2004, the company said it expects sales to grow marginally, while further improvement in operating margins is expected for every segment except aerospace. A new table entitled “Outlook” is attached to provide detail on sales and operating-margin expectations by business segment, in addition to assumptions regarding non-operating items.

Washkewicz said the company has assumed no economic recovery in its plans for the new fiscal year. “So far, the only bright spots are the strong growth rates we’re seeing in Asia and Latin America. Going forward, now that the financial performance initiatives of our Win Strategy are in place throughout our business worldwide, we will be placing additional emphasis on the growth goal of the Win Strategy.” He noted that the company has established new funding priorities and incentive measures to stimulate investment in and increase its yield from organic growth, with a stronger focus on innovation.

In addition to the information provided herein, Parker advises shareholders to note order trends, for which the company makes a disclosure several business days after the conclusion of each month. This information is available on the company’s investor information web site, at www.phstock.com.

With annual sales exceeding $6 billion, 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 commercial, mobile, industrial and aerospace markets. The company employs more than 45,000 people in 44 countries around the world. For more information, visit the company’s web site at www.parker.com, or its investor information site at www.phstock.com.

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 and individual segments may differ materially from current expectations, depending on economic conditions within both its industrial and aerospace markets, and the company’s ability to achieve anticipated benefits associated with announced realignment activities, strategic initiatives to improve operating margins, and growth initiatives. A change in economic conditions in individual markets may have a particularly volatile effect on segment projections. Among the other factors which may affect future performance are: changes in business relationships with and purchases by or from major customers or suppliers, including delays or cancellations in shipments; uncertainties surrounding timing, successful completion or integration of acquisitions; threats associated with and efforts to combat terrorism; competitive market conditions and resulting effects on sales and pricing; increases in raw-material costs that cannot be recovered in product pricing; and global economic factors, including currency exchange rates, difficulties entering new markets and general economic conditions such as interest rates. The company makes these statements as of the date of this disclosure, and undertakes no obligation to update them.

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PARKER HANNIFIN CORPORATION—JUNE 30, 2003

CONSOLIDATED STATEMENT OF INCOME

Note: Certain prior period amounts have been reclassified to conform to the current year presentation.

PARKER HANNIFIN CORPORATION—JUNE 30, 2003

CONSOLIDATED BALANCE SHEET

CONSOLIDATED STATEMENT OF CASH FLOWS