Parker Hannifin Corporation

Quarterly Earnings Release

4

th

Quarter and Total Year FY2011

August 2, 2011

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, including its individual

segments, may differ materially from 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

diversification

initiatives.

A

change

in

economic conditions in individual markets may have a particularly volatile effect on segment

performance. Among other factors which may affect future performance are: 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; uncertainties surrounding timing,

successful

completion

or

integration

of

acquisitions;

ability

to

realize

anticipated

cost

savings

from business realignment activities; threats associated with and efforts to combat terrorism;

uncertainties

surrounding

the

ultimate

resolution

of

outstanding

legal

proceedings,

including

the

outcome of any appeals; 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 insurance and employee retirement and health

care benefits; 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. The company makes these

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

unless otherwise required by law.

Slide 2

Non-GAAP Financial Measures

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

and

the

effects

of

currency exchange rates on sales.  This presentation also reconciles

cash flow from operating activities as a percent of sales in accordance

with U.S. GAAP to cash flow from operating activities as a percent of

sales without the effect of a discretionary pension plan contribution.

The effects of acquisitions, currency exchange rates and the

discretionary pension plan contribution are removed to allow investors

and the company to meaningfully evaluate changes in sales and cash

flow from operating activities as a percent of sales on a comparable

basis from period to period.

Slide 3

Slide 4

Discussion Agenda

CEO 4

th

Quarter and Total Year Highlights

Key Performance Measures & Outlook

Questions & Answers

CEO Closing Comments

4th Quarter & Total Year FY11 Highlights

Total Year FY11:

Sales

Growth:

All-time

Record

Sales

of

$12.3B,

increased

23.5%

Year-

over-Year

Operating

Margins:

All-time

Record

Total

Segment

Operating

Margin

of

14.8%

Net

Income

&

EPS:

Achieved

All-time

Record

Net

Income,

EPS

increased 87%

4

Quarter

FY11:

Sales

Growth:

Q4

Record

Sales,

an

Increase

of

22%

Year-over-Year

Net

Income:

Achieved

All-time

Record

Net

Income,

EPS

and

Net

Income/Sales

Operating

Margins:

Total

Segment

Operating

Margin

of

14.8%

Continued Strong Cash Flow:

FY11 Operating Cash Flow/Sales of 9.5%; 12.7% Excluding $400M

Discretionary Pension Plan Contribution

Increased Dividend Payout by 42% and Share Repurchase Totaled 

$693M in FY11

Slide 5

th

Slide 6

Financial Highlights

Diluted Earnings per Share

4

th

Quarter and Total Year

$1.79

$1.35

$6.37

$3.40

$.00

$1.00

$2.00

$3.00

$4.00

$5.00

$6.00

$7.00

Q4 FY11

Q4 FY10

FY11

FY10

Influences

on

4

Quarter

Earnings

Diluted Earnings Per Share Increase of $.44 Year-over-Year

Driven By:

Increased Sales of 22%

Improved Segment Operating Income ($.54 EPS Impact)

Margins Improved to 14.8% from 13.9% Year-over-Year

Lower Corporate Tax Rate ($.02 EPS Impact)

Fewer Shares Outstanding ($.01 EPS Impact)

Offset by:

Net

Increase

in

Expenses

Below

Segment

Operating

Income

($.12 EPS Impact)

Higher Non-controlling Interests ($.01 EPS Impact)

Slide 7

th

Influences on Total Year FY11 Earnings

Diluted Earnings Per Share Increase of $2.97 Year-over-

Year Driven By:

Increased Sales of 24%

Improved Segment Operating Income ($3.08 EPS Impact)

Margins Improved to 14.8% from 11.4% Year-over-Year

Lower Corporate Tax Rate ($.09 EPS Impact)

Offset by:

Net

Increase

in

Expenses

Below

Segment

Operating

Income

($.10 EPS Impact)

Increased Diluted Shares Outstanding ($.07  EPS Impact)

Higher Non-controlling Interests ($.03 EPS Impact)

Slide 8

Slide 9

Financial Highlights

Sales –

4

th

Quarter  and Total Year

Dollars in millions

FY2011

%

Change

FY2010

FY2011

%

Change

FY2010

Sales

As reported

3,410

$       

22.4 %

2,786

$      

12,346

$

23.5 %

9,993

$      

Acquisitions

21

0.7 %

54

0.5 %

Currency

185

6.7 %

205

2.0 %

Adjusted Sales

3,204

$       

15.0 %

12,087

$

21.0 %

Operating Margin

As reported

503

$          

388

$         

1,823

$ 

1,143

$      

% of Sales

14.8 %

13.9 %

14.8 %

11.4 %

4th Quarter

Total Year

Slide 10

Segment Reporting

Industrial North America

Dollars in millions

FY2011

%

Change

FY2010

FY2011

%

Change

FY2010

Sales

As reported

1,227

$       

18.6 %

1,034

$      

4,517

$ 

24.6 %

3,624

$      

Acquisitions

11

1.0 %

24

0.7 %

Currency

9

0.9 %

24

0.6 %

Adjusted Sales

1,207

$       

16.7 %

4,469

$ 

23.3 %

Operating Margin

As reported

207

$          

163

$         

746

$     

487

$         

% of Sales

16.9 %

15.7 %

16.5 %

13.4 %

4th Quarter

Total Year

Slide 11

Segment Reporting

Industrial International

Dollars in millions

FY2011

%

Change

FY2010

FY2011

%

Change

FY2010

Sales

As reported

1,384

$       

33.8 %

1,034

$      

4,917

$ 

29.0 %

3,811

$      

Acquisitions

7

0.6 %

15

0.4 %

Currency

164

15.9 %

168

4.4 %

Adjusted Sales

1,213

$       

17.3 %

4,734

$ 

24.2 %

Operating Margin

As reported

203

$          

140

$         

754

$     

394

$         

% of Sales

14.7 %

13.6 %

15.3 %

10.3 %

4th Quarter

Total Year

Slide 12

Segment Reporting

Aerospace

Dollars in millions

FY2011

%

Change

FY2010

FY2011

%

Change

FY2010

Sales

As reported

522

$          

9.3 %

478

$         

1,922

$ 

10.2 %

1,744

$      

Acquisitions

0

0.0 %

3

0.2 %

Currency

2

0.4 %

0

0.0 %

Adjusted Sales

520

$          

8.9 %

1,919

$ 

10.0 %

Operating Margin

As reported

71

$             

64

$            

247

$     

208

$         

% of Sales

13.6 %

13.4 %

12.9 %

11.9 %

4th Quarter

Total Year

Slide 13

Segment Reporting

Climate & Industrial Controls

Dollars in millions

FY2011

%

Change

FY2010

FY2011

%

Change

FY2010

Sales

As reported

277

$          

15.2 %

240

$         

990

$     

21.7 %

814

$         

Acquisitions

3

1.4 %

12

1.5 %

Currency

10

4.1 %

13

1.6 %

Adjusted Sales

264

$          

9.7 %

965

$     

18.6 %

Operating Margin

As reported

23

$             

21

$            

76

$       

53

$            

% of Sales

8.1 %

8.5 %

7.7 %

6.6 %

4th Quarter

Total Year

Slide 14

Parker Order Rates

Excludes Acquisitions & Currency

3-month year-over-year comparisons of total dollars, except Aerospace

Aerospace is calculated using a 12-month moving average

JUN '11

MAR '11

JUN '10

MAR '10

Total Parker

15 %

+

24 %

+

35 %

+ 

23 %

+ 

Industrial North America

11 %

+

20 %

+

46 %

+ 

30 %

+ 

Industrial International

18 %

+

22 %

+

46 %

+ 

42 %

+ 

Aerospace

27 %

+

44 %

+

3 %

-

22 %

-

Climate & Industrial Controls

1 %

+  

14 %

+

35 %

+ 

38 %

+ 

Three Month Rolling at Period End

Slide 15

Balance Sheet Summary

Cash

Working capital

-

Accounts receivable

-

Inventory

-

Accounts payable

Strong Cash Flow

Cash from Operating Activities

4

Quarter

and

Total

Year

Slide 16

th

Q4 Cash From Operating Activities

Q4 '11

Q4 '10

As Reported

$367M

$377M

As Reported % Sales

10.8%

13.5%

Pension Plan Contribution

$200M

-0-

Adjusted Cash From Operating Activities

$567M

$377M

Adjusted % Sales

16.6%

13.5%

Full Year Cash from Operating Activities:

FY '11

FY '10

As Reported

$1,167M

$1,219M

As Reported % Sales

9.5%

12.2%

Pension Plan Contribution

$400M

$100M

Adjusted Cash From Operating Activities

$1,567M

$1,319M

Adjusted % Sales

12.7%

13.2%

Slide 17

Financial Leverage

24.7% 

Debt to Debt Equity

24.7%

16.0%

18.0%

20.0%

22.0%

24.0%

26.0%

28.0%

30.0%

32.0%

34.0%

36.0%

38.0%

40.0%

42.0%

FY00

FY01

FY02

FY03

FY04

FY05

FY06

FY07

FY08

FY09

FY10

FY11

Debt to Debt Equity

Slide 18

FY 2012  Earnings Outlook Assumptions

Segment Sales & Operating Margins

  FY 2012 Sales change versus FY 2011

  Industrial North America

4.2 %

  -- 

8.2 %

  Industrial International

8.6 %

  -- 

12.6 %

  Aerospace

3.0 %

  -- 

6.0 %

  Climate & Industrial Controls

3.6 %

  -- 

7.6 %

  FY 2012 Operating margin percentages

  Industrial North America

16.5 %

  -- 

17.1 %

  Industrial International

15.2 %

  -- 

15.8 %

  Aerospace

13.0 %

  -- 

13.3 %

  Climate & Industrial Controls

8.8 %

  -- 

9.3 %

Slide 19

FY 2012 Earnings Outlook Assumptions

below Operating Margin (+/-

4.0%)

Expenses Below Segment Operating Margin*

$425M at Midpoint

Tax Rate = 28%

*Corporate Admin, Interest and Other Expense (Income)

Slide 20

Earnings Outlook –

FY12

Low

High

Diluted earnings per share

6.70

$ 

7.50

$

Slide 21

Questions & Answers...

Appendix

Income Statement

4

th

Quarter FY2011

Total Year FY2011

Slide 23

Income Statement –

4

Quarter

Dollars in millions

% of Sales

% of Sales

Net Sales

3,409.8

$ 

100.0 %

2,786.5

$ 

100.0 %

Cost of sales

2,590.8

76.0 %

2,114.2

75.9 %

Gross profit

819.0

24.0 %

672.3

24.1 %

S, G & A

413.4

12.1 %

349.3

12.5 %

Interest expense

24.8

.7 %

26.9

1.0 %

Other (income) expense, net

(.6)

(.0)%

3.9

.1 %

Income before taxes

381.4

11.2 %

292.2

10.5 %

Income taxes

86.7

2.5 %

69.1

2.5 %

Net income

294.7

$     

8.7 %

223.1

$    

8.0 %

Less: Noncontrolling interests

2.5

$         

.1 %

.9

$           

.0 %

Net income attributable to common

shareholders

292.2

$     

8.6 %

222.2

$    

8.0 %

FY 2011

FY 2010

th

Slide 24

Income Statement –

Total Year

Dollars in millions

% of Sales

% of Sales

Net Sales

12,345.9

$

100.0 %

9,993.2

$ 

100.0 %

Cost of sales

9,387.5

76.0 %

7,847.1

78.5 %

Gross profit

2,958.4

24.0 %

2,146.1

21.5 %

S, G & A

1,467.8

11.9 %

1,277.1

12.8 %

Interest expense

99.7

.8 %

103.6

1.0 %

Other (income) expense, net

(22.8)

(.2)%

10.6

.1 %

Income before taxes

1,413.7

11.5 %

754.8

7.6 %

Income taxes

356.6

2.9 %

198.4

2.0 %

Net income

1,057.1

$ 

8.6 %

556.4

$    

5.6 %

Less: Noncontrolling interests

8.0

$         

.1 %

2.3

$         

.1 %

Net income attributable to common

shareholders

1,049.1

$ 

8.5 %

554.1

$    

5.5 %

FY 2011

FY 2010