Parker Hannifin Corporation

Quarterly Earnings Release

3rd Quarter FY 2007

April 24, 2007

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 3

rd

quarter highlights

Key performance measures & outlook

Questions & answers

CEO closing comments

Slide 5

Third Quarter Highlights

Sales increased 11% to $2.8 billion for the

quarter –

an all time record

5% organic growth

Quarterly fully diluted earnings per share

increased 22% -

a strong quarter

Inventories were reduced $52 million

during the quarter

Slide 6

Third Quarter Highlights

Industrial International Sales grew 32%

and margins increased to 13.8%

Cash flow

remains strong

Industrial International Sales and margins

almost equal to Industrial North America

Total Parker orders remain at a high level

and continue to increase year over year

Slide 7

$1.46

$1.78

$5.17

$3.73

$0.00

$1.00

$2.00

$3.00

$4.00

$5.00

$6.00

Q3 FY07

Q3 FY06

YTD FY07

YTD FY06

Financial Highlights

EPS from Continuing Operations

3

rd

Quarter and YTD as of March 31

Slide 8

Influences on Earnings for the Quarter

Sales increased 11% -

5% organic

Win Strategy

Gross profit improved 13%

Higher Interest expense

Higher Other income

Gain on sale of facility

Higher income taxes

Tax rate –

from 30% last year to 29%

5.2 million shares repurchased in FY07

Slide 9

Financial Highlights

Sales –

3

rd

Quarter and YTD through March 31

st

Dollars in millions

FY2007

%

Change

FY2006

FY2007

%

Change

FY2006

Sales

As reported

2,781

$

11.3 %

2,498

$

7,844

$

15.9 %

6,769

$

Acquisitions

99

        

4.0 %

465

      

6.9 %

Currency

64

        

2.5 %

182

      

2.7 %

Adjusted Sales

2,618

$

4.8 %

7,197

$

6.3 %

3rd Quarter

YTD

Slide 10

Influences on Sales

Continued end market strength

Industrial International

Aerospace

Emerging markets

Acquisitions

Slide 11

Segment Reporting

Industrial North America

Dollars in millions

FY2007

%

Change

FY2006

FY2007

%

Change

FY2006

Sales

As reported

1,048

$

(1.3)%

1,063

$

3,009

$

3.0 %

2,922

$

Acquisitions

16

        

1.6 %

77

        

2.6 %

Currency

(2)

         

(0.2)%

2

          

0.1 %

Adjusted Sales

1,034

$

(2.7)%

2,930

$

0.3 %

Operating Margin

As reported

147

$   

165

$   

434

$   

432

$   

  % of Sales

14.0 %

15.5 %

14.4 %

14.8 %

3rd Quarter

YTD

Slide 12

Segment Reporting

Industrial International

Dollars in millions

FY2007

%

Change

FY2006

FY2007

%

Change

FY2006

Sales

As reported

1,018

$

31.5 %

774

$   

2,818

$

36.0 %

2,071

$

Acquisitions

73

        

9.4 %

325

      

15.7 %

Currency

68

        

8.8 %

168

      

8.1 %

Adjusted Sales

877

$   

13.3 %

2,325

$

12.2 %

Operating Margin

As reported

140

$   

99

$      

390

$   

247

$   

  % of Sales

13.8 %

12.8 %

13.8 %

11.9 %

3rd Quarter

YTD

Slide 13

Segment Reporting

Aerospace

Dollars in millions

FY2007

%

Change

FY2006

FY2007

%

Change

FY2006

Sales

As reported

436

$   

11.6 %

391

$   

1,241

$

14.4 %

1,085

$

Acquisitions

4

          

1.0 %

13

        

1.2 %

Currency

2

          

0.7 %

9

          

0.9 %

Adjusted Sales

430

$   

9.9 %

1,219

$

12.3 %

Operating Margin

As reported

66

$      

54

$      

203

$   

157

$   

  % of Sales

15.2 %

13.9 %

16.3 %

14.4 %

3rd Quarter

YTD

Slide 14

Segment Reporting

Climate & Industrial Controls

Dollars in millions

FY2007

%

Change

FY2006

FY2007

%

Change

FY2006

Sales

As reported

278

$   

2.8 %

270

$   

776

$   

12.3 %

691

$   

Acquisitions

5

          

1.9 %

50

        

7.2 %

Currency

(5)

         

(1.8)%

3

          

0.5 %

Adjusted Sales

278

$   

2.7 %

723

$   

4.6 %

Operating Margin

As reported

19

$      

24

$      

57

$      

52

$      

  % of Sales

6.9 %

8.8 %

7.3 %

7.6 %

3rd Quarter

YTD

Slide 15

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

3 %

+   

7 %

+   

--

Industrial North America

2 %

-    

3 %

+   

5 %

+   

Industrial International

15 %

+

2 %

+   

4 %

+   

Aerospace

2 %

+   

23 %

+

12 %

+

Climate & Industrial Controls

15 %

- 

14 %

+

3 %

-    

March

Slide 16

Balance Sheet Summary

Cash

Working capital

Inventory

Accounts receivable

Slide 17

Strong Cash Flow –

Cash From Operations

FY 07 YTD -

$537

$161 pension contribution; 

$61 incremental to FY06

Dollars in millions

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%

Slide 18

Financial Leverage

Debt to Debt Equity

23.8%

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 YTD

Not to exceed 37% over the cycle

Slide 19

FY 2007  Earnings Outlook Assumptions

Segment Sales & Operating Income

  FY 2007 Sales change versus FY 2006

  Industrial North America

1.7 %

  -- 

1.9 %

  Industrial International

32.9 %

  -- 

33.1 %

  Aerospace

10.5 %

  -- 

10.7 %

  Climate & Industrial Controls

7.3 %

  -- 

7.5 %

FY 2007 Operating margin percentages

Industrial North America

14.3 %

--

14.5 %

Industrial International

13.8 %

--

14.0 %

Aerospace

15.8 %

--

16.0 %

Climate & Industrial Controls

7.3 %

--

7.5 %

Slide 20

FY 2007  Earnings Outlook Assumptions

below Operating Margin

Corporate Admin

+ 20% to + 23% vs. FY 2006

Interest Expense

+ 12% to + 14% vs. FY 2006

Other Exp. (Income) 

-

54% to  -

51% vs. FY 2006

Tax Rate

29 %

Slide 21

Earnings Outlook –

FY07

Low

High

EPS from continuing operations

6.80

$ 

7.00

$ 

Slide 22

Questions & Answers...

*

*

*

*

*

*

Slide 23

Appendix

Income Statements

3

rd

Quarter

3

rd

Quarter YTD

Slide 24

Income Statement –

3

rd

Quarter

Dollars in millions

% of Sales

% of Sales

Net Sales

2,781.0

$  

100.0 %

2,498.1

$

100.0 %

Cost of sales

2,163.8

     

77.8 %

1,952.2

  

78.1 %

Gross profit

617.2

        

22.2 %

545.9

      

21.9 %

S, G & A

308.6

        

11.1 %

276.7

      

11.1 %

Interest expense

22.4

          

.8 %

21.0

        

.8 %

Other (income) expense

(8.7)

           

(.3)%

(6.9)

         

(.3)%

Income from cont'g operations before taxes

294.9

        

10.6 %

255.1

      

10.2 %

Income taxes

85.6

          

3.1 %

77.6

        

3.1 %

Income from cont'g operations

209.3

        

7.5 %

177.5

      

7.1 %

  Discontinued operations

Net income

209.3

$      

7.5 %

177.5

$   

7.1 %

FY 2007

FY 2006

Slide 25

Income Statement –

3

rd

Quarter YTD

Dollars in millions

% of Sales

% of Sales

Net Sales

7,843.7

$  

100.0 %

6,769.2

$

100.0 %

Cost of sales

6,049.2

     

77.1 %

5,313.6

  

78.5 %

Gross profit

1,794.5

     

22.9 %

1,455.6

  

21.5 %

S, G & A

893.4

        

11.4 %

759.6

      

11.2 %

Interest expense

61.9

          

.8 %

57.1

        

.8 %

Other (income) expense

(22.2)

         

(.3)%

4.3

          

.1 %

Income from cont'g operations before taxes

861.4

        

11.0 %

634.6

      

9.4 %

Income taxes

248.5

        

3.2 %

184.2

      

2.7 %

Income from cont'g operations

612.9

        

7.8 %

450.4

      

6.7 %

  Discontinued operations

28.9

        

.4 %

Net income

612.9

$      

7.8 %

479.3

$   

7.1 %

FY 2007

FY 2006