Parker Reports Record Sales, Net Income and Earnings per Share for the Fiscal 2012 Third Quarter - Sales Reached a Third Quarter Record of $3.4 billion

- Earnings Per Diluted Share Increased 20 percent to All-Time Quarterly Record of $2.01

- Operating Cash Flow Year-to-Date Exceeded $1 billion

- Company Exceeds Guidance and Increases Outlook for Full Year Earnings

CLEVELAND, April 24, 2012 /PRNewswire/ -- Parker Hannifin Corporation (NYSE: PH), the global leader in motion and control technologies, today reported results for the fiscal 2012 third quarter ended March 31, 2012.  Fiscal 2012 third quarter sales were $3.4 billion, a third quarter record and an increase of 4.7 percent from $3.2 billion in the prior year quarter. Net income was an all-time quarterly record at $312.7 million, an increase of 11.0 percent compared with $281.6 million in the third quarter of fiscal 2011.  Fiscal 2012 third quarter earnings per diluted share were an all-time quarterly record at $2.01, an increase of 19.6 percent compared with $1.68 in the prior year quarter.  Cash flow from operations for the first nine months of fiscal 2012 was $1,006.5 million, or 10.3 percent of sales, compared with $799.9 million, or 9.0 percent of sales, for the first nine months of fiscal 2011.  

(Logo: http://photos.prnewswire.com/prnh/19990816/PHLOGO )

"This quarter's results benefitted, in part, from the favorable resolution of prior year tax filings, however, all-time record quarterly earnings were largely achieved as a result of strong operating performance in North America," said Chairman, CEO and President, Don Washkewicz. "Our organic sales growth was 6 percent, led by a double-digit increase in the North America Industrial segment, while currency translation negatively affected sales by 1 percent. Internationally, results outpaced expectations for the quarter and market conditions remain stable.  Total company segment operating margin remained strong and represented a third quarter record at 15.1 percent, primarily driven by record third quarter operating margins in the Industrial North America segment. Year-to-date, operating cash flow is very strong at 10.3 percent of sales and we continue to invest for growth including our recently completed acquisition of Snap-tite Incorporated to expand our presence in fluid power and process control markets."

Segment Results

In the Industrial North America segment, third quarter sales increased 11.6 percent to $1.3 billion, and operating income was $227.0 million compared with $189.5 million in the same period a year ago.  

In the Industrial International segment, third quarter sales declined 0.5 percent to $1.3 billion, and operating income was $195.1 million compared with $199.8 million in the same period a year ago. 

In the Aerospace segment, third quarter sales increased 7.7 percent to $542.8 million, and operating income was $65.9 million compared with $69.0 million in the same period a year ago.

In the Climate and Industrial Controls segment, third quarter sales declined 6.0 percent to $248.7 million, and operating income was $23.2 million compared with $22.6 million in the same period a year ago.   

Orders

Parker reported an increase of 2 percent in orders for the quarter ending March 31, 2012, compared with the same quarter a year ago.  The company reported the following orders by operating segment: 

  • Orders increased 7 percent in the Industrial North America segment, compared with the same quarter a year ago.
  • Orders declined 1 percent in the Industrial International segment, compared with the same quarter a year ago.
  • Orders increased 4 percent in the Aerospace segment on a rolling 12-month average basis.
  • Orders declined 6 percent in the Climate and Industrial Controls segment, compared with the same quarter a year ago.

Outlook

For fiscal 2012, the company has increased its guidance for earnings from continuing operations to the range of $7.30 to $7.50 per diluted share.

Washkewicz added, "Reflecting our strong outperformance relative to guidance, Parker is increasing our earnings outlook for the year. The Company remains on pace to deliver an all-time record year in fiscal 2012."

NOTICE OF CONFERENCE CALL: Parker Hannifin's conference call and slide presentation to discuss its fiscal 2012 third quarter results are available to all interested parties via live webcast today at 10:00 a.m. ET, on the company's investor information web site at www.phstock.com. To access the call, click on the "Live Webcast" link. From this link, users also may complete a pre-call system test and register for e-mail notification of future events and information available from Parker.  A replay of the conference call will also be available at www.phstock.com for one year after the call.

With annual sales exceeding $12 billion in fiscal year 2011, 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 mobile, industrial and aerospace markets. The company employs approximately 58,000 people in 47 countries around the world. Parker has increased its annual dividends paid to shareholders for 55 consecutive fiscal years, among the top five longest-running dividend-increase records in the S&P 500 index. For more information, visit the company's web site at www.parker.com, or its investor information web site at www.phstock.com.

Notes on Orders

Orders provide near-term perspective on the company's outlook, particularly when viewed in the context of prior and future quarterly order rates. However, orders are not in themselves an indication of future performance. All comparisons are at constant currency exchange rates, with the prior year restated to the current-year rates. All exclude acquisitions until they can be reflected in both the numerator and denominator. Aerospace comparisons are rolling 12-month average computations. The total Parker orders number is derived from a weighted average of the year-over-year quarterly percent change in orders for the Industrial North America, Industrial International, and Climate and Industrial Controls segments, and the year-over-year 12-month rolling average of orders for the Aerospace segment.

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 the 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; ability to identify acceptable strategic acquisition targets; 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.

  



PARKER HANNIFIN CORPORATION - MARCH 31, 2012


CONSOLIDATED STATEMENT OF INCOME


(Unaudited)



Three Months Ended March 31, 


Nine Months Ended March 31,


(Dollars in thousands except per share amounts)





2012


2011


2012


2011















Net sales





$  3,393,563


$   3,240,103


$   9,734,276


$  8,936,040


Cost of sales





2,590,315


2,463,083


7,386,079


6,796,685


Gross profit





803,248


777,020


2,348,197


2,139,355


Selling, general and administrative expenses





377,479


375,069


1,132,635


1,054,332


Interest expense





22,313


24,619


69,303


74,883


Other expense (income), net





2,629


(12,385)


(5,100)


(22,191)


Income before income taxes





400,827


389,717


1,151,359


1,032,331


Income taxes





88,138


108,069


298,169


269,835


Net income





312,689


281,648


853,190


762,496


Less:  Noncontrolling interests





615


2,059


3,332


5,556


Net income attributable to common shareholders





$     312,074


$     279,589


$      849,858


$    756,940















Earnings per share attributable to common shareholders:













   Basic earnings per share 





$           2.07


$           1.72


$            5.61


$          4.68


   Diluted earnings per share





$           2.01


$           1.68


$            5.49


$          4.58















Average shares outstanding during period - Basic





151,017,910


162,160,426


151,472,380


161,711,394


Average shares outstanding during period - Diluted





154,944,246


166,690,347


154,904,549


165,270,482















Cash dividends per common share





$             .39


$             .32


$            1.13


$            .88




























BUSINESS SEGMENT INFORMATION BY INDUSTRY


(Unaudited)





Three Months Ended March 31, 


Nine Months Ended March 31,


(Dollars in thousands)


2012


2011


2012


2011


Net sales













    Industrial:













       North America





$  1,315,357


$  1,178,714


$  3,703,526


$  3,289,098


       International





1,286,751


1,293,047


3,794,678


3,533,259


    Aerospace





542,760


503,806


1,536,757


1,400,116


    Climate & Industrial Controls





248,695


264,536


699,315


713,567


Total





$  3,393,563


$    3,240,103


$  9,734,276


$ 8,936,040


Segment operating income


























    Industrial:













       North America





$    226,986


$    189,463


$   645,951


$   538,254


       International





195,065


199,798


569,224


551,374


    Aerospace





65,925


68,984


204,824


176,404


   Climate & Industrial Controls





23,203


22,577


52,818


53,630


Total segment operating income





511,179


480,822


1,472,817


1,319,662


Corporate general and administrative expenses





38,377


41,734


142,529


112,681


Income before interest and other 





472,802


439,088


1,330,288


1,206,981


Interest expense





22,313


24,619


69,303


74,883


Other expense





49,662


24,752


109,626


99,767


Income before income taxes





$   400,827


$   389,717


$  1,151,359


$ 1,032,331









































CONSOLIDATED BALANCE SHEET




(Unaudited)





 March 31, 


June, 30


 March 31, 




(Dollars in thousands)





2012


2011


2011




Assets













Current assets:













Cash and cash equivalents





$     773,459


$   657,466


$  1,107,955




Accounts receivable, net





2,061,501


1,977,856


1,950,980




Inventories





1,429,014


1,412,153


1,390,862




Prepaid expenses





100,336


111,934


89,692




Deferred income taxes





132,991


145,847


151,840




Total current assets





4,497,301


4,305,256


4,691,329




Plant and equipment, net





1,721,970


1,797,179


1,788,377




Goodwill





2,926,311


3,009,116


2,976,232




Intangible assets, net





1,096,306


1,177,722


1,191,072




Other assets





647,236


597,532


729,852




Total assets





$10,889,124


$  10,886,805


$ 11,376,862

















Liabilities and equity













Current liabilities:













Notes payable





$     273,907


$ 75,271


$   173,233




Accounts payable





1,148,939


1,173,851


1,085,126




Accrued liabilities





872,547


909,147


844,852




Accrued domestic and foreign taxes





193,907


232,774


237,209




Total current liabilities





2,489,300


2,391,043


2,340,420




Long-term debt





1,515,217


1,691,086


1,683,731




Pensions and other postretirement benefits





848,521


862,938


1,341,920




Deferred income taxes





141,467


160,035


159,777




Other liabilities





308,151


293,367


267,285




Shareholders' equity





5,577,592


5,383,854


5,481,908




Noncontrolling interests





8,876


104,482


101,821




Total liabilities and equity





$10,889,124


$  10,886,805


$11,376,862











































CONSOLIDATED STATEMENT OF CASH FLOWS




(Unaudited)





 

Nine Months Ended March 31,






(Dollars in thousands)





2012


2011



















Cash flows from operating activities:













Net income





$   853,190


$  762,496






Depreciation and amortization





244,403


254,125






Stock incentive plan compensation





64,102


56,792






Net change in receivables, inventories, and trade payables





(191,071)


(239,968)






Net change in other assets and liabilities





85,060


(35,202)






Other, net





(49,223)


1,690






Net cash provided by operating activities





1,006,461


799,933






Cash flows from investing activities:













Acquisitions (net of cash of $6,802 in 2012 and $385 in 2011) 





(31,004)


(60,227)






Capital expenditures





(154,097)


(158,455)






Proceeds from sale of plant and equipment





15,560


23,818






Other, net





(16,381)


(8,251)






Net cash (used in) investing activities





(185,922)


(203,115)






Cash flows from financing activities:













Net (payments for) proceeds from common stock activity





(312,545)


4,198






Acquisition of noncontrolling interests





(147,441)


-






Net proceeds from debt





47,763


15,035






Dividends





(178,606)


(142,906)






Net cash (used in) financing activities





(590,829)


(123,673)






Effect of exchange rate changes on cash





(113,717)


59,284






Net increase in cash and cash equivalents





115,993


532,429






Cash and cash equivalents at beginning of period





657,466


575,526






Cash and cash equivalents at end of period





$  773,459


$  1,107,955



















SOURCE Parker Hannifin Corporation



RELATED LINKS
http://www.phstock.com

More by this Source

Best of Content We Love 2014 


Custom Packages

Browse our custom packages or build your own to meet your unique communications needs.

Start today.

 

PR Newswire Membership

Fill out a PR Newswire membership form or contact us at (888) 776-0942.

Learn about PR Newswire services

Request more information about PR Newswire products and services or call us at (888) 776-0942.