Parker Hannifin Corporation
Quarterly Earnings Release
1
st
Quarter FY 2007
October 18, 2006
Exhibit 99.2

Slide 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 maintain and 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 or
significant changes in financial condition; 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.

Slide 3
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
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.

Slide 4
Discussion Agenda
CEO 1
st
quarter highlights
Key performance measures & outlook
Questions & answers
CEO closing comments

Slide 5
First Quarter Highlights
Sales increased 21% to $2.6 billion for the
quarter
8% organic growth
Segment operating income margins
improved from 13.8% last year to 14.9%,
including the effects of acquisitions
Repurchased 2.6 million shares with
available cash

Slide 6
$1.19
$1.75
$ .24     
$0.00
$0.20
$0.40
$0.60
$0.80
$1.00
$1.20
$1.40
$1.60
$1.80
$2.00
Q1 FY07
Q1 FY06
Financial Highlights
EPS –
1st Quarter
Earnings from
continuing
operations
Earnings from
discontinued
operations

Slide 7
Influences on Earnings
Increased volume
Win Strategy -
Gross profit up 200 bps
Repurchased shares
Lower “Other”
expense
-
Litigation
-
Pensions

Financial Highlights
Sales –
1st Quarter
Dollars in millions
FY2007
FY2006
Sales
2,552
$ 
2,114
$ 
  % change
21%
Sales from acquisitions
228
      
Sales w/o acquisitions
2,324
   
2,114
   
  % change
10%
Currency effects
40
         
Sales without acquisitions & currency
2,284
$ 
2,114
$ 
  % change
8%
1st Quarter
Slide 8

Influences on Sales
Continued Industrial end market strength
Distributors
OEM
Emerging markets
Acquisitions
Aerospace
Commercial
Slide 9

Segment Reporting
Industrial North America
Dollars in millions
FY2007
FY2006
Sales
As reported
1,001
$  
929
$     
  % change
8 %
Acquisitions
40
          
Without acquisitions
961
       
929
       
  % change
3 %
Currency effects
3
            
Without acquisitions & currency
958
$     
929
$     
  % change
3 %
Operating Margin
As reported
153
$     
137
$     
  % of Sales
15 %
15 %
1st Quarter
Slide 10

Segment Reporting
Industrial International
Dollars in millions
FY2007
FY2006
As reported
878
$     
621
$     
  % change
41 %
Acquisitions
156
       
Without acquisitions
722
       
621
       
  % change
16 %
Currency effects
32
          
Without acquisitions & currency
690
$     
621
$     
  % change
11 %
As reported
128
$     
80
$       
  % of Sales
15 %
13 %
1st Quarter
Sales
Operating Margin
Slide 11

Segment Reporting
Aerospace
Dollars in millions
FY2007
FY2006
As reported
402
$     
349
$     
  % change
15 %
Acquisitions
5
            
Without acquisitions
397
       
349
       
  % change
14 %
Currency effects
2
            
Without acquisitions & currency
395
$     
349
$     
  % change
13 %
As reported
69
$       
55
$       
  % of Sales
17 %
16 %
1st Quarter
Sales
Operating Margin
Slide 12

Slide 13
Segment Reporting
Climate & Industrial Controls
Dollars in millions
FY2007
FY2006
As reported
271
$     
215
$     
  % change
26 %
Acquisitions
27
          
Without acquisitions
244
       
215
       
  % change
13 %
Currency effects
3
            
Without acquisitions & currency
241
$     
215
$     
  % change
12 %
As reported
31
$       
19
$       
  % of Sales
11 %
9 %
1st Quarter
Sales
Operating Margin

Slide 14
Parker New Order rates
Excludes Acquisitions & Currency
Year over year comparisons
Aerospace is calculated using a 12-month moving average
FY07
FY06
FY05
Total Parker
10 %
+
6 %
+   
--
Industrial North America
7 %
+   
8 %
+   
18 %
+
Industrial International
17 %
+
4 %
+   
12 %
+
Aerospace
18 %
+
8 %
+   
19 %
+
Climate & Industrial Controls
13 %
- 
4 %
+   
2 %
+   
September

Slide 15
Balance Sheet Summary
Cash
Working capital
Inventory
Accounts receivable

Slide 16
Strong Cash Flow –
Cash From Operations
459
538
529
631
662
854
558
955
$0
$100
$200
$300
$400
$500
$600
$700
$800
$900
$1,000
4.0%
6.0%
8.0%
10.0%
12.0%
FY 07 YTD -
$115
$111 pension contribution
Dollars in millions

Slide 17
Financial Leverage
Debt to Debt Equity
23.6%
16.0%
18.0%
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
FY07
Not to exceed 37% over the cycle

Slide 18
FY 2007  Earnings Outlook Assumptions Segment
Sales & Operating Income
FY 2007 Sales change versus FY 2006
Industrial North America
3.8 %
--
4.5 %
Industrial International
19.4 %
--
20.0 %
Aerospace
7.1%
--
7.7 %
Climate & Industrial Controls
5.0 %
--
5.6 %
FY 2007 Operating margin percentages
Industrial North America
15.0 %
--
15.6 %
Industrial International
12.4 %
--
13.0 %
Aerospace
14.8 %
--
15.4 %
Climate & Industrial Controls
10.1 %
--
10.7
%

Slide 19
FY 2007  Earnings Outlook Assumptions
below Operating Margin
Corporate Admin
+  5.0% to + 8.0%
vs. FY 2006
Interest Expense
-
7.0% to -
8.0%  vs. FY 2006
Other Exp. (Income) 
-
6.0% to -
7.0%
vs. FY 2006
Tax Rate
30.0%

Slide 20
Earnings Outlook –
FY07
Low
High
EPS from continuing operations
6.05
$
6.45
$

Slide 21
Questions & Answers...

Appendix
Income Statement
*
*
*
*
*
*

Slide 23
Income Statement –
1
st
Quarter
Dollars in millions
% of Sales
% of Sales
Net Sales
2,551.6
$
100.0 %
2,113.6
$
100.0 %
Cost of sales
1,947.4
   
76.3 %
1,655.8
  
78.3 %
Gross profit
604.2
      
23.7 %
457.8
      
21.7 %
S, G & A
292.0
      
11.4 %
237.0
      
11.2 %
Interest expense
17.2
        
.7 %
16.5
        
.8 %
Other (income) expense
(6.6)
         
(.3)%
.3
            
.0 %
Income from cont'g operations before taxes
301.6
      
11.9 %
204.0
      
9.7 %
Income taxes
91.1
        
3.6 %
60.2
        
2.8 %
Income from cont'g operations
210.5
      
8.3 %
143.8
      
6.8 %
  Discontinued operations
28.9
        
1.4 %
Net income
210.5
$    
8.3 %
172.7
$   
8.2 %
FY 2007
FY 2006