Parker Hannifin Corporation

Quarterly Earnings Release

3rd Quarter FY 2006

April 18, 2006

.

Exhibit 99.2

Forward-Looking Statements

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 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 and innovation initiatives. A change in economic conditions in

individual markets may have a particularly volatile effect on segment results. 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; the company’s ability to manage costs related

to employee retirement and health care benefits and insurance; and global economic factors, including

manufacturing activity, air travel trends, currency exchange rates, difficulties entering new markets and

general economic conditions such as inflation and interest rates. The company makes these statements

as of the date of this disclosure, and undertakes no obligation to update them.

Non-GAAP Financial Measure

This presentation reconciles sales amounts reported in accordance with

U.S. GAAP to sales amounts adjusted to remove the effects of acquisitions

and divestitures made within the prior four quarters as well as the effects

of

currency

exchange

rates

on

sales.

The

effects

of

acquisitions

and

currency exchange rates are removed to allow investors and the company

to meaningfully evaluate changes in sales on a comparable basis from

period to period.

This presentation contains references to earnings per share amounts

excluding the effect of the adoption of FAS 123R, a litigation settlement,

and a loss recognized on the sale of a division.  The removal of

the FAS

123R effect, the litigation settlement and the loss on the sale of a

division

allows

investors

and

the

company

to

meaningfully

evaluate

performance

on

a

comparable

basis

with

the

prior period, which was not

impacted by FAS 123R, the litigation settlement or the sale of a

division.

Discussion Agenda

Financial Highlights

Outlook

Questions & Answers

CEO Comments

Financial Highlights

EPS –

3rd Quarter and YTD as of March 31st

FY2006

FY2005

FY 2006

FY 2005

EPS as Reported

1.46

$          

1.15

$          

3.97

$          

3.68

$          

Discontinued Operations

-

              

(0.01)

           

0.24

            

0.55

            

EPS from Continuing Operations as reported

1.46

$          

1.16

$          

3.73

$          

3.13

$          

Loss on Sale of Thermoplastics

-

              

-

              

0.08

            

-

              

Litigation Settlement

(0.03)

           

-

              

(0.03)

           

-

              

FAS 123R expense

0.03

            

-

              

0.16

            

-

              

EPS from Continuing Operations Adjusted

1.46

$          

1.16

$          

3.94

$          

3.13

$          

First Nine Months

Third Quarter

Financial Highlights

EPS  from Continuing Operations

3rd Quarter and YTD as of March 31st

$1.16

$3.13

$3.73

$1.46

$0.00

$0.50

$1.00

$1.50

$2.00

$2.50

$3.00

$3.50

$4.00

Q3 FY06

Q3 FY05

YTD FY06

YTD FY05

Influences on Earnings

Increased Volume

Win Strategy

Restructuring/Move to Low Cost Countries

Sales Mix –

Aerospace

Inventory Changes

Financial Highlights

Sales –

3rd Quarter and YTD through March 31st

FY06

FY05

FY06

FY05

Sales

$2,498

$2,112

$6,769

$5,896

% change

18%

15%

Sales from acquisitions & divestitures

$203

$500

Sales without acquisitions & divestitures

$2,295

$2,112

$6,269

$5,896

% change

9%

6%

Currency effects

($37)

($67)

Sales without acquisitions, divestitures & currency

$2,332

$2,112

$6,336

$5,896

% change

10%

7%

3rd  Quarter

YTD

Influences on Sales

Continued Industrial End Market Strength

Aerospace

Commercial OEM

Globalization Trends

Acquisitions

Segment Reporting

Industrial North America

3rd Qtr

YTD

3rd Qtr

YTD

Sales

As reported

$1,063

$2,922

$925

$2,577

% change

15%

13%

Acquisitions

$60

$177

without Acquisitions

$1,003

$2,745

$925

$2,577

% change

8%

7%

Currency effects

$5

$12

without Acquisitions & Currency

$998

$2,733

$925

$2,577

% change

8%

6%

Operating Margin

As reported

$165

$432

$120

$340

% of sales

15%

15%

13%

13%

FY2006

FY2005

Segment Reporting

Industrial Rest of World

3rd Qtr

YTD

3rd Qtr

YTD

Sales

As reported

$774

$2,071

$623

$1,756

% change

24%

18%

Acquisitions

$118

$251

without Acquisitions

$656

$1,820

$623

$1,756

% change

5%

4%

Currency effects

($39)

($74)

without Acquisitions & Currency

$695

$1,894

$623

$1,756

% change

12%

8%

Operating Margin

As reported

$99

$247

$63

$191

% of sales

13%

12%

10%

11%

FY 2006

FY 2005

Segment Reporting

Aerospace

3rd Qtr

YTD

3rd Qtr

YTD

Sales

As reported

$391

$1,085

$337

$995

% change

16%

9%

Acquisitions

without Acquisitions

$391

$1,085

$337

$995

% change

16%

9%

Currency effects

($2)

($4)

without Acquisitions

$393

$1,089

$337

$995

% change

17%

9%

Operating Margin

As reported

$54

$157

$44

$145

% of sales

14%

14%

13%

15%

FY 2006

FY 2005

Segment Reporting

Climate & Industrial Controls

3rd Qtr

YTD

3rd Qtr

YTD

Sales

As reported

$270

$691

$227

$569

% change

19%

22%

Acquisitions

$25

$72

without Acquisitions

$245

$619

$227

$569

% change

8%

9%

Currency effects

($1)

without Acquisitions & Currency

$246

$619

$227

$569

% change

8%

9%

Operating Margin

As reported

$24

$52

$27

$51

% of sales

9%

8%

12%

9%

FY 2006

FY 2005

Fiscal YTD Results

Sales Increased 14.8%

7.4% Organic Growth

Cash flow from operations -9.0% of sales

Earnings from continuing operations per

diluted share of $3.73, up 19.2% from

$3.13 last year

Year over Year Comparisons

Excludes Acquisitions & Currency

Aerospace Calculated on 12-Month Moving Average

Parker New Order Rates

March-06

March-05

March-04

North American Industrial

+3%

+5%

+24%

International Industrial

+2%

+4%

+16%

Aerospace

+23%

+12%

+11%

Climate & Industrial Controls

+14%

-3%

+1%

Strong Cash Flow –

Cash From Operations

FY06 YTD $610M

459

538

529

631

551

662

854

$0

$100

$200

$300

$400

$500

$600

$700

$800

$900

4.0%

6.0%

8.0%

10.0%

12.0%

Financial Leverage

Debt to Debt Equity

27.1%

20.0%

22.0%

24.0%

26.0%

28.0%

30.0%

32.0%

34.0%

36.0%

38.0%

FY99

FY00

FY01

FY02

FY03

FY04

FY05

FY06

Target

Balance Sheet Summary

Cash

Working Capital

Inventory

Accounts Receivable

PP & E

Shareholders Equity

FY 2006  Earnings Outlook Assumptions

Segment Sales & Operating Income

FY 2006 Sales Change versus FY 2005

22.0%

-

20.0%

CIC

9.2%

-

8.8%

Aerospace

18.2%

-

17.5%

Industrial ROW

13.6%

-

13.2%

NA Industrial

FY 2006 Operating Margin Percentages

8.3%

-

8.0%

CIC

14.6%

-

14.4%

Aerospace

12.1%

-

11.9%

Industrial ROW

15.0%

-

14.8%

NA Industrial

FY 2006  Earnings Outlook assumptions

below Operating Margin

Corporate Admin

+18.5% to +19.5%

vs. FY 2005

Interest Expense

+16.0% to  +17.0% vs. FY 2005

Other Exp. (Income) *

+35.0% to +38.0%

vs. FY 2005

Tax Rate

29.0%

*Adoption of FAS 123R by the Company will result in additional expense of no more than $.20 per diluted share in Fiscal

Year 2006 all of which will be reflected in the Other Expense (Income) line.  Loss on Sale of Thermoplastics and income

from litigation settlement are also included in the Other Expense (Income) line.

Earnings Outlook

Low

High

Previous guidance, income from continuing operations

$4.97

$5.22

including loss from divestiture

Revised guidance, income from continuing operations

$5.07

$5.22

including loss from divestiture

Revised guidance, income from continuing operations

$5.15

$5.30

excluding loss from divestiture

Previous guidance, income from continuing operations

$5.05

$5.30

excluding loss from divestiture

Questions & Answers...

Appendix

Income Statements

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Income Statement –

3rd Quarter

% of Sales

% of Sales

Net sales

$2,498.1

100.0%

$2,112.5

100.0%

Cost of sales

1,952.2

78.1%

1,688.8

79.9%

Gross profit

545.9

21.9%

423.7

20.1%

S, G & A

276.7

11.1%

215.2

10.2%

Interest expense

21.0

0.8%

17.1

0.8%

Other expense

(6.9)

-0.3%

2.0

0.1%

Income from Cont'g Operations b/f taxes

255.1

10.2%

189.3

9.0%

Income taxes

77.5

3.1%

48.7

2.3%

Income from Cont'g Operations

$177.5

7.1%

$140.6

6.7%

     Discontinued Operations

0.0%

(1.3)

              

-0.1%

Net Income

$177.5

7.1%

$139.4

6.6%

FY 2006

FY 2005

Income Statement –

3rd Quarter YTD

% of Sales

% of Sales

Net sales

$6,769.2

100.0%

$5,896.3

100.0%

Cost of sales

5,313.6

78.5%

4,683.4

79.4%

Gross profit

1,455.5

21.5%

1,212.9

20.6%

S, G & A

759.6

11.2%

627.5

10.6%

Interest expense

57.1

0.8%

50.5

0.9%

Interest & other income

4.2

0.1%

11.6

0.2%

Income from Cont'g Operations b/f taxes

634.6

9.4%

523.4

8.9%

Income taxes

184.2

2.7%

146.3

2.5%

Income from Cont'g Operations

$450.4

6.7%

$377.1

6.4%

     Discontinued Operations

$28.9

0.4%

$66.2

1.1%

Net Income

$479.3

7.1%

$443.3

7.5%

FY 2006

FY 2005