Skip to content

PH · Parker-Hannifin Corp

31 filings

10-K

PH 10-K Annual Reports

Parker-Hannifin Corp - 31 annual reports

Filing record · 2016–202610-K1110-Q328-K110

2026
Parker-Hannifin Corp Annual Report, Year Ended Jun 30, 2026
Parker-Hannifin Corporation's 2026 Form 10-K highlights a year of robust growth and strategic expansion, underscored by an 8.3% increase in net sales to $21.5 billion, driven by strong organic growth in both its Diversified Industrial and Aerospace Systems segments. The company's commitment to its "Win Strategy 3.0" continues to shape its operations, focusing on engaged people, customer experience, and profitable growth. The report details significant strategic acquisitions, including Curtis Instruments and the completion of Filtration Group Corporation (FGC), alongside the pending acquisition of CIRCOR Aerospace, demonstrating a clear intent to expand its market reach and technological capabilities. Financially, the company maintained a strong liquidity position and continued its history of returning capital to shareholders through dividends and share repurchases, while also managing its debt effectively with a focus on maintaining an investment-grade credit profile.
Aug 21, 2026
2025
Parker-Hannifin Corp Annual Report, Year Ended Jun 30, 2025
Parker-Hannifin Corporation's 10-K filing for the fiscal year ended June 29, 2025, highlights a robust performance in its Aerospace Systems segment, which saw increased sales driven by strength in both commercial and defense markets. While the Diversified Industrial segment experienced a slight decrease in net sales primarily due to divestitures and lower demand in certain sectors, overall gross profit margin improved year-over-year, attributed to effective pricing strategies, favorable product mix, and ongoing cost containment efforts aligned with "The Win Strategy 3.0." The company demonstrated strong cash generation from operations, supporting its commitment to returning capital to shareholders through dividends and share repurchases. The company is strategically positioning itself for future growth, underscored by the announced acquisition of Curtis Instruments, Inc. Parker-Hannifin continues to emphasize its core values of safety, customer experience, and operational excellence, while navigating global economic uncertainties and supply chain complexities. Investments in organic growth and potential strategic acquisitions remain key priorities, alongside disciplined capital deployment. The company's diversified end markets and global footprint provide resilience, though it remains vigilant regarding macroeconomic factors and geopolitical risks.
Aug 22, 2025
2024
Parker-Hannifin Corp Annual Report, Year Ended Jun 30, 2024
Parker-Hannifin Corporation (PH) reported its fiscal year 2024 results, showcasing a robust increase in net sales to $19.9 billion, up from $19.1 billion in fiscal year 2023. This growth was primarily driven by a strong performance in the Aerospace Systems segment, fueled by increased demand in both commercial and defense markets, and aided by the acquisition of Meggitt plc. The Diversified Industrial segment experienced a slight decrease in net sales, impacted by softer demand in several key markets like HVAC, transportation, and off-highway, though price increases and operational efficiencies helped improve gross profit margins across both segments. The company demonstrated solid financial health, with a significant increase in operating cash flow to $3.4 billion, enabling continued investment in organic growth and strategic capital deployment, including share repurchases and dividends. The successful integration of Meggitt appears to be progressing well, contributing positively to the Aerospace segment. Investors can find comfort in Parker-Hannifin's consistent dividend payouts and its strategic focus on innovation and customer experience, underpinning its 'Win Strategy 3.0' business system. Despite some market-specific headwinds in the Diversified Industrial segment, the overall outlook remains positive, supported by a strong backlog and a diversified business model.
Aug 22, 2024
2023
Parker-Hannifin Corp Annual Report, Year Ended Jun 30, 2023
Parker-Hannifin Corporation's 2023 10-K filing highlights a year of significant growth and strategic acquisition, primarily driven by the acquisition of Meggitt plc. The company reported a substantial increase in net sales to $19.1 billion, up from $15.9 billion in the prior year. This growth was bolstered by higher volumes in both the Diversified Industrial and Aerospace Systems segments, with the Meggitt acquisition contributing approximately $2.1 billion to sales. Financially, the company demonstrated resilience despite inflationary pressures and supply chain disruptions. Gross profit margin saw a slight increase, supported by higher volumes and continuous improvement initiatives. However, the integration of Meggitt led to increased SG&A expenses and specific acquisition-related charges, impacting operating margins, particularly in the Aerospace Systems segment. The company also highlighted its strong cash flow generation, enabling continued investment in organic growth, dividend increases, and strategic acquisitions, while maintaining a solid balance sheet and investment-grade credit profile.
Aug 24, 2023
2022
Parker-Hannifin Corp Annual Report, Year Ended Jun 30, 2022
Parker-Hannifin Corporation's fiscal year 2022 (ending June 30, 2022) filing indicates a strong performance with net sales reaching $15.9 billion, an increase from the prior year, driven by higher volumes in both its Diversified Industrial and Aerospace Systems segments. Despite facing challenges from inflationary pressures, supply chain disruptions, and labor market constraints, the company demonstrated resilience. Key financial metrics show improved gross profit margins due to higher sales volumes, continuous improvement initiatives, and price increases, though these were partially offset by rising costs. The company is strategically positioning itself for future growth, highlighted by its pending acquisition of Meggitt plc, which is expected to significantly expand its Aerospace Systems Segment. Parker-Hannifin also continues to prioritize operational efficiency, innovation, and a commitment to its workforce through robust human capital management strategies, including safety initiatives and talent development programs. The company maintains a strong liquidity position and is focused on shareholder returns through consistent dividend increases and share repurchases.
Aug 24, 2022
2021
Parker-Hannifin Corp Annual Report, Year Ended Jun 30, 2021
Parker-Hannifin Corporation, a global leader in motion and control technologies, presents its 2021 10-K filing, detailing a year marked by recovery and strategic growth initiatives. The company demonstrated resilience, with net sales increasing to $14.3 billion, driven by strong performance in its Diversified Industrial Segment, which constitutes 83% of total sales, and a notable recovery in the Aerospace Systems Segment. Despite ongoing economic uncertainties and the lingering effects of the COVID-19 pandemic, Parker-Hannifin achieved a 9.1% increase in its Diversified Industrial Segment net sales, benefiting from both organic growth and strategic acquisitions, alongside favorable currency impacts. The company's financial health remained robust, supported by strong cash flow from operations and a manageable debt profile. Looking ahead, Parker-Hannifin is strategically positioned for future growth, underscored by its pending acquisition of Meggitt plc, which is expected to significantly enhance its Aerospace Systems Segment. The company's commitment to its 'Win Strategy 3.0,' focused on engaged people, customer experience, profitable growth, and financial performance, continues to guide its operations. Investors can find comfort in the company's consistent dividend payments and a strong commitment to operational efficiency and innovation across its diverse markets.
Aug 25, 2021
2020
Parker-Hannifin Corp Annual Report, Year Ended Jun 30, 2020
Parker-Hannifin Corporation's fiscal year 2020 (ending June 29, 2020) filings reflect a company navigating a challenging global environment, particularly the impact of the COVID-19 pandemic. Net sales decreased to $13.7 billion from $14.3 billion in the prior year, primarily due to lower volumes across both the Diversified Industrial and Aerospace Systems segments. The company proactively took measures to preserve cash and reduce costs, including salary reductions, reduced work schedules, and a suspension of its share repurchase program. Despite these headwinds, Parker-Hannifin successfully integrated two significant acquisitions (Lord and Exotic) which contributed positively to sales, though also increased SG&A expenses and intangible asset amortization. Looking ahead, the company remains focused on strategic growth opportunities in sectors like energy, water, food, environment, defense, life sciences, infrastructure, and transportation. The company's diversified product portfolio and global reach provide resilience, and its commitment to innovation and customer service positions it to capitalize on market recoveries. Investors should note the increased debt levels resulting from acquisitions and the ongoing efforts to manage operational complexities and costs in a dynamic economic landscape.
Aug 26, 2020
2019
Parker-Hannifin Corp Annual Report, Year Ended Jun 30, 2019
Parker-Hannifin Corporation's 2019 10-K report highlights a year of stable net sales, totaling $14.3 billion, with slight growth driven by the Aerospace Systems segment, partially offset by currency headwinds. The company demonstrated improved profitability with a higher gross profit margin, attributed to operational efficiencies in the Diversified Industrial Segment and increased aftermarket and OEM volume in Aerospace. Significant strategic developments include the announcement of two major acquisitions: LORD Corporation and Exotic Metals Forming Company LLC, signaling a strong focus on growth through strategic M&A. The company's financial health remains robust, evidenced by strong operating cash flow and a healthy liquidity position. While long-term debt increased due to financing for acquisitions, Parker-Hannifin maintains its investment-grade credit profile. The report also details ongoing efforts in business realignment and simplification initiatives, aimed at enhancing operational efficiency and driving future profitability. Investors can look to Parker-Hannifin's diversified market exposure, commitment to innovation, and strategic acquisitions as key drivers for future performance, balanced against global economic uncertainties and integration risks.
Aug 23, 2019
2018
Parker-Hannifin Corp Annual Report, Year Ended Jun 30, 2018
Parker-Hannifin Corporation, a diversified manufacturer of motion and control technologies, reported strong net sales of $14.3 billion for the fiscal year ending June 29, 2018. This represented a significant 18.9% increase over the prior year, driven by volume growth in its Diversified Industrial segment and contributions from acquisitions made in 2017. The company operates across two primary segments: Diversified Industrial (84% of net sales) and Aerospace Systems (16% of net sales), serving a broad range of mobile, industrial, and aerospace markets globally. Financially, the company demonstrated improved profitability with a higher gross profit margin and increased net income attributable to common shareholders. Despite facing headwinds such as rising raw material costs and inefficiencies from manufacturing consolidations, strategic initiatives like simplification and realignment efforts helped to offset these pressures. The company also continued its commitment to shareholder returns through share repurchases and consistent dividend payments. Looking ahead, Parker-Hannifin is focused on profitable growth in key sectors like energy, water, and transportation, while carefully considering strategic acquisitions.
Aug 24, 2018
2017
Parker-Hannifin Corp Annual Report, Year Ended Jun 30, 2017
Parker-Hannifin Corporation's 2017 10-K filing reveals a year of significant strategic acquisition activity, most notably the purchase of Clarcor, which substantially increased the company's asset base and goodwill. This acquisition contributed significantly to the reported increase in net sales for fiscal year 2017. Despite the integration challenges and expenses associated with this acquisition, the company demonstrated resilience, with improvements in gross profit margin driven by cost-saving initiatives and restructuring. The company operates across two main segments: Diversified Industrial and Aerospace Systems. The Diversified Industrial segment, which accounts for the majority of sales, saw growth driven by both acquisitions and increased volume in international operations, particularly in the Asia Pacific region. The Aerospace Systems segment showed more modest growth, with mixed performance across military and commercial sub-segments. Looking ahead, the company projects continued sales growth in the Diversified Industrial segment, largely driven by ongoing acquisition contributions, while maintaining its focus on operational efficiencies and strategic growth areas.
Aug 25, 2017
2016
Parker-Hannifin Corp Annual Report, Year Ended Jun 30, 2016
Parker-Hannifin Corporation's (PH) 2016 10-K filing reveals a company navigating a challenging economic environment, evidenced by a notable decline in net sales and net income compared to the prior year. The company's core business remains diversified, with the Diversified Industrial segment constituting the vast majority of sales (80%), followed by the Aerospace Systems segment (20%). Despite the sales downturn, driven primarily by decreased volume in North America and international industrial markets and amplified by currency headwinds, Parker-Hannifin maintained a focus on operational efficiency and financial strength through cost management and balance sheet discipline. The company operates globally with a significant portion of its revenue generated outside the U.S., exposing it to currency fluctuations and geopolitical risks. While R&D spending saw a slight decrease, Parker-Hannifin continues to invest in innovation and strategic acquisitions to support future growth. The report also highlights ongoing efforts in business realignment and cost reduction initiatives, which, while impacting short-term results, are intended to enhance long-term profitability and competitiveness. Investors should note the company's commitment to shareholder returns, demonstrated by consistent dividend payments and share repurchase programs.
Aug 26, 2016
2015
Parker-Hannifin Corp Annual Report, Year Ended Jun 30, 2015
Parker-Hannifin's fiscal 2015 (year ended June 30, 2015) was a year of top-line contraction driven by currency, with underlying operations roughly flat. Net sales fell 3.8% to $12.71 billion from $13.22 billion, but excluding a roughly $547 million currency headwind and about $14 million of acquisition contribution, sales were essentially unchanged. Gross margin improved to 24.0% from 22.9%, helped by lower business realignment charges ($19.4 million vs. $63.6 million in cost of sales) and lower Aerospace product support costs. Diluted EPS rose to $6.97 from $6.87, but this was flattered by the absence of the prior year's $189 million goodwill impairment and the $413 million deconsolidation gain (booked in 2014), so the reported comparison overstates underlying improvement. Net income attributable to common shareholders was $1.01 billion, essentially flat with 2014. The balance sheet shifted meaningfully toward leverage as a capital allocation choice. Management repurchased 11.1 million shares for $1.39 billion and issued $1.5 billion of medium-term notes in 2015, which pushed the debt-to-debt-plus-equity ratio to 36.6% from 25.9%, approaching the company's stated 37% ceiling. Cash fell to $1.91 billion, shareholders' equity dropped to $5.10 billion from $6.66 billion (largely from $765 million of currency translation losses and the buybacks), and the company remains rated with a goal of maintaining no less than an "A" senior debt rating. Dividends were raised to an annualized $2.52 per share, extending a streak of 59 consecutive annual increases. Forward-looking guidance for fiscal 2016 points to continued pressure in Diversified Industrial International (sales down 2% to 6%), a stable North American segment (down 3% to up 1%), and Aerospace growth of 1% to 3% with margins of 14.2% to 14.8%. Management expects roughly $100 million in business realignment charges in 2016, and the Parker ITR marine hose cartel matter remains open at the European Court level. Investors should weigh the strong cash generation and dividend record against weaker organic growth, a tighter balance sheet, and currency headwinds.
Aug 26, 2015
2014
Parker-Hannifin Corp Annual Report, Year Ended Jun 30, 2014
Parker-Hannifin's fiscal 2014 (year ended June 30, 2014) showed modest top-line growth with net sales of $13.2 billion, up 1.5% from $13.0 billion in fiscal 2013, and operating performance pressured by one-time charges. Diluted EPS was $6.87, up from $6.26, but that increase was flattered by a $413 million pre-tax non-cash gain on the deconsolidation of a subsidiary tied to a 50/50 joint venture with GE Aviation. Excluding that gain, goodwill and intangible impairments of roughly $189 million (mainly the Worldwide Energy Products Division), and rising business realignment charges (about $101 million in the Diversified Industrial Segment), underlying profitability was weaker. The effective tax rate rose to 33.1% from 27.6%, and Diversified Industrial International segment margins fell to 10.8% from 11.8%. The balance sheet strengthened meaningfully. Cash and marketable securities reached about $2.2 billion, the debt-to-capital ratio fell to 25.9% from 33.0%, and shareholders' equity rose to $6.66 billion. Operating cash flow was $1.39 billion, and management repurchased $200 million of stock while paying $278 million in dividends. Backlog grew to $3.9 billion, with about 81% scheduled for delivery within twelve months, which supports near-term revenue visibility. Management guided to continued growth in fiscal 2015, with Diversified Industrial North American sales up 3% to 7% and Aerospace sales up 2% to 3%, while expecting about $55 million in additional realignment charges. Investors should weigh the headline EPS improvement against the one-time nature of the deconsolidation gain and the impairment and restructuring costs. Key ongoing risks include Western European economic weakness, exposure to non-U.S. markets (about 44% of sales), a $1.4 billion-plus unfunded pension and postretirement liability, and a pending European Commission marine hose cartel appeal involving Parker ITR.
Aug 22, 2014
2013
Parker-Hannifin Corp Annual Report, Year Ended Jun 30, 2013
Parker-Hannifin's fiscal 2013 (year ended June 30, 2013) was a year of modest top-line contraction and margin pressure, offset by strong cash generation and a much stronger balance sheet position from acquisition spending. Net sales were $13.0 billion, down 1.0% from $13.1 billion in fiscal 2012. Excluding a roughly $448 million contribution from acquisitions and a roughly $140 million currency headwind, organic sales fell 3.3%, driven mainly by lower volume in the Industrial Segment. Diluted EPS declined to $6.26 from $7.45, and net income attributable to common shareholders fell to $948 million from $1,152 million. Gross margin compressed to 22.5% from 24.2%, reflecting higher defined benefit pension costs, Industrial operating inefficiencies, and higher Aerospace engineering development spending. Aerospace was the bright spot, with sales up 7.8% to $2.27 billion, though its margin also eased. Capital deployment was the defining theme. Parker completed eight acquisitions for about $621 million in cash plus $114 million of assumed debt, and it repurchased roughly 3.0 million shares for $257 million. Operating cash flow was $1.19 billion, down from $1.53 billion, partly because of $226 million in voluntary pension contributions. Total debt rose to $2.83 billion, and the debt-to-debt-plus-equity ratio climbed to 33.0% from 26.1%, still below management's 37% ceiling. Cash on hand more than doubled to $1.78 billion, although $1.66 billion of it sits in foreign subsidiaries. Pension funded status improved sharply, with the underfunded amount falling to about $1.29 billion from $1.81 billion. Looking forward, management is reorganizing the company. Effective July 1, 2013, the Climate & Industrial Controls Segment was folded into the Industrial Segment, and beginning in fiscal 2014 Parker will report two segments, Diversified Industrial and Aerospace Systems. The company also plans a joint venture with GE Aviation, cleared by regulators in July 2013, and expects about $95 million of Industrial realignment charges in fiscal 2014. Guidance calls for flat to modestly higher Industrial North American sales and a fiscal 2014 Aerospace sales range of flat to up 4%. Investors should weigh the near-term margin pressure and the reorganization against the company's long dividend record (252 consecutive quarterly payments, with a $1.80 annualized rate), its acquisition-led growth strategy, and the ongoing marine hose antitrust exposure in Brazil and the EU.
Aug 29, 2013
2012
Parker-Hannifin Corp Annual Report, Year Ended Jun 30, 2012
Parker-Hannifin's fiscal 2012 (year ended June 30, 2012) was a strong year on the top line and earnings. Net sales rose 6.5% to $13.1 billion, and net income attributable to common shareholders climbed about 10% to $1.15 billion, with diluted EPS of $7.45 versus $6.37 in fiscal 2011. Growth was led by the Industrial Segment (about 77% of sales) and Aerospace (about 16%, up 9.4%), while Climate & Industrial Controls (about 7%) declined 2.3%. Gross margin improved to 24.2% and North American Industrial operating margins expanded to 17.8%, though International Industrial margins compressed as European and Asia Pacific growth slowed. Management guided to 2013 sales growth of roughly 2%-9% across segments, with North American Industrial sales expected to rise 5.1%-9.1%. Cash generation and capital returns were also notable. Operating cash flow reached $1.53 billion, up from $1.17 billion, helped by the absence of $400 million in voluntary pension contributions made in 2011. The company repurchased about 6.4 million shares for $455 million and paid $241 million in dividends, extending a streak of 248 consecutive quarterly dividend payments. Total debt was $1.73 billion, with a debt-to-capitalization ratio of 26.1% against a 37% internal ceiling, and $1.5 billion of undrawn revolving credit capacity. The main investor concerns are balance sheet and legal items. Pension and postretirement liabilities jumped to $1.91 billion from $863 million, and shareholders' equity fell to $4.90 billion from $5.38 billion, largely due to a $598 million pension-related hit to other comprehensive income. The company also faces an ongoing Parker ITR marine hose antitrust matter in Brazil and a €8.32 million EU fine it is appealing, along with a pending False Claims Act suit against Parker ITR. Separately, a planned divestiture of the Mobile Climate Systems automotive business, announced August 13, 2012, is expected to produce a pre-tax gain of about $30 million.
Aug 24, 2012
2011
Parker-Hannifin Corp Annual Report, Year Ended Jun 30, 2011
Parker-Hannifin's fiscal 2011 (year ended June 30, 2011) was a strong recovery year. Net sales rose 23.5% to $12.35 billion from $9.99 billion, driven by higher volume in all segments, with the Industrial Segment (76% of sales) leading. Gross margin expanded to 24.0% from 21.5%, and diluted EPS more than doubled to $6.37 from $3.40. Net income attributable to common shareholders reached $1.05 billion, versus $554 million in fiscal 2010. Management attributes the improvement to rising global industrial demand, operating leverage from higher volume, lower business realignment charges ($16.5 million in 2011 versus $48.5 million in 2010), and currency tailwinds of roughly $205 million on sales. Backlog grew to $3.8 billion from $3.1 billion, with about 86% scheduled for delivery within twelve months, which supports near-term revenue visibility. The balance sheet strengthened over the year. The debt-to-debt-plus-equity ratio fell to 24.7% from 28.9%, against a company goal of no more than 37%. Shareholders' equity rose to $5.38 billion, and the company repurchased about 8.0 million shares for roughly $693 million at an average of $86.54. Operating cash flow was $1.17 billion, slightly below the prior year, mainly because the company made $400 million of voluntary contributions to its domestic pension plans and absorbed higher working capital needs. Dividends were raised to an annual rate of $1.48 and have been paid for 244 consecutive quarters. Management guided to continued growth in fiscal 2012, with Industrial North American sales expected to rise 4.2% to 8.2%, Industrial International sales 8.6% to 12.6%, Aerospace 3% to 6%, and Climate & Industrial Controls 3.6% to 7.6%. Key risks for investors include a legal matter involving Parker ITR, a subsidiary acquired in 2002 that faces a Brazilian competition investigation and a European Commission fine that the company is appealing, along with a False Claims Act suit still pending against the subsidiary. The company also has an environmental reserve of $15.3 million, with a possible range of up to $72.1 million, and it carries roughly $863 million in pension and postretirement liabilities. Because 46% of sales come from outside the United States, currency and global economic conditions remain material sensitivities. Overall, the filing shows a company that rebounded sharply on volume, margin recovery, and disciplined capital management.
Aug 26, 2011
2010
Parker-Hannifin Corp Annual Report, Year Ended Jun 30, 2010
Parker-Hannifin's fiscal 2010 (year ended June 30, 2010) was a year of contraction followed by early recovery. Net sales fell 3.1% to $9.99 billion from $10.31 billion, while net income attributable to common shareholders rose 9% to $554 million (diluted EPS $3.40 vs. $3.13). The earnings improvement came despite lower volume, driven by cost reduction, business realignment savings and a gross margin expansion to 21.5% from 20.6%. Management reported signs of recovery in the second half of the year, with order rates and backlog improving in the Industrial and Climate & Industrial Controls segments, though Aerospace remained soft in commercial OEM and aftermarket volume. Balance sheet and cash generation were a clear strength. Operating cash flow was $1.22 billion, capital spending was cut to $129 million, and management used cash to repay debt, reducing total debt from $2.32 billion to $1.78 billion. The debt-to-debt-plus-equity ratio improved to 28.9% from 35.2%, comfortably inside the company's 37% target. The dividend was raised for the 54th consecutive year, to $1.08 annualized, and share repurchases were sharply reduced to about $25 million. Investors should weigh several risks: a $1.5 billion pension and postretirement liability (up from $1.23 billion), a legal overhang from the Parker ITR marine hose cartel matters in the U.S., Europe, Brazil and Australia, and a goodwill cushion on several reporting units that the company described as not significantly in excess of carrying value. Management guided to higher sales in fiscal 2011 across all segments, with Industrial North American sales up 5.7% to 9.7% and Aerospace up 2.5% to 5.5%.
Aug 26, 2010
2009
Parker-Hannifin Corp Annual Report, Year Ended Jun 30, 2009
Parker-Hannifin's fiscal 2009 (year ended June 30, 2009) was a sharp cyclical downturn. Net sales fell 15.1% to $10.31 billion from $12.15 billion, and net income dropped 46% to $508.5 million from $949.5 million. Diluted EPS was $3.13, down from $5.53. Gross margin compressed to 20.6% from 23.1%, driven by lower volume, manufacturing inefficiencies, and $40.9 million of business realignment charges in cost of sales. The Industrial and Climate & Industrial Controls segments bore most of the weakness, while Aerospace grew sales 2.5% to $1.88 billion and maintained a 13.9% operating margin. Management expects recessionary-like conditions to persist in fiscal 2010, though at a slower rate of decline. Balance sheet and cash flow remain solid but weaker than the prior year. Operating cash flow was $1.13 billion, down from $1.32 billion, helped by a $598 million reduction in receivables. Total debt rose to $2.32 billion, and the debt-to-debt-equity ratio increased to 35.2% from 28.3%, approaching the company's 37% internal ceiling. Shareholders' equity fell to $4.28 billion from $5.26 billion, largely due to a $494.5 million currency translation hit and $481 million in retirement-benefit funding adjustments. Parker continued its dividend, now $1.00 per share, and repurchased about $448 million of stock. It also completed nine acquisitions with roughly $532 million in aggregate annual revenue. Backlog declined 21% to $2.89 billion. Key risks for investors include continued end-market weakness in industrial and commercial markets, currency exposure (about 44% of sales came from outside the U.S.), rising pension obligations (the pension liability roughly tripled to $1.23 billion), and an ongoing antitrust matter involving the Parker ITR marine hose business. That matter has resulted in U.S., European, and other investigations and class actions, with a settlement of the U.S. class action pending court approval.
Aug 27, 2009
2008
Parker-Hannifin Corp Annual Report, Year Ended Jun 30, 2008
Parker-Hannifin's fiscal 2008 (year ended June 30, 2008) was a record year on the top line and bottom line. Net sales rose 13.3% to $12.15 billion, net income climbed 14.4% to $949.5 million, and diluted EPS reached $5.53 versus $4.68 in fiscal 2007. Growth was driven largely by strong demand in the Industrial International businesses (Europe and Asia Pacific), acquisitions (about 26% of the sales increase, including Scan Subsea and Vansco Electronics, with roughly $546 million of acquired annual sales across 10 deals), and a weaker U.S. dollar, which added about $544 million to sales. Gross margin improved to 23.1% from 22.8%, and operating cash flow rose to $1.32 billion, or 10.8% of sales. The filing also shows a more leveraged balance sheet and a few risk items. Long-term debt rose to $1.95 billion from $1.09 billion after the company issued $775 million of medium-term notes, largely to fund its $500 million accelerated share repurchase and acquisitions. The debt-to-debt-equity ratio increased to 28.3% from 21.4%, still below the company's 37% internal ceiling. Management flagged a recessionary-like slowdown in North American industrial markets, weaker Climate & Industrial Controls results, and softer aftermarket demand expected in aerospace. Legal exposure grew as well: the company established a $20 million reserve tied to the marine oil and gas hose antitrust investigations and class actions, and its environmental reserve is $16.0 million, with a possible range up to $79.6 million. For investors, the key questions are whether the international and acquisition-driven growth can offset North American weakness, how quickly the newly acquired businesses integrate, and whether margins hold as the company absorbs higher debt costs and possible litigation outcomes. The company guided to continued growth in Industrial International and Aerospace OEM sales in fiscal 2009, flat North American industrial performance, and a decline in Climate & Industrial Controls sales.
Aug 28, 2008
2007-A
Parker-Hannifin Corp Annual Report (Amendment), Year Ended Jun 30, 2007
Parker-Hannifin's fiscal 2007 (year ended June 30, 2007) results show a company operating at a high level of growth and profitability. Net sales rose 14.2% to $10.72 billion, driven by higher volume across all segments, with acquisitions contributing roughly 45% of the increase and favorable currency effects adding about $241 million. Net income climbed 23% to $830 million, and diluted EPS rose to $7.01 from $5.57 in fiscal 2006 (which included discontinued operations). Gross margin expanded to 22.8% from 21.5%, though SG&A grew faster than sales at 18.3%, and the effective tax rate fell to 28.4%. Operating cash flow was roughly flat at $955 million, and the company returned substantial capital through $364 million of net common share activity, including repurchases of 5.4 million shares. The outlook is mixed by segment. Aerospace and Industrial International are expected to remain strong, while Industrial North America and Climate & Industrial Controls face soft end-markets, notably automotive, heavy-duty truck and construction. Management guides fiscal 2008 Industrial North America sales about 1% higher and Industrial International about 9.5% higher, with a 3-for-2 stock split payable October 1, 2007 and an accelerated $500 million share repurchase announced in August 2007. The balance sheet remains sound, with a debt-to-debt-equity ratio of 21.4% against a 37% policy ceiling, a current ratio of 1.76, and an A-rated senior debt objective. Investors should note the pending legal exposure from the marine oil and gas hose investigations (DOJ grand jury subpoena, JFTC, and European Commission inquiries plus class actions), for which the company cannot estimate potential loss, and the significant reduction in pension liabilities following adoption of FAS 158. This filing is Amendment No. 1 to the original 10-K filed August 29, 2007. It corrects a typographical error in a Note 10 table and fixes exhibit cross-references, and it does not restate the financial results.
Sep 7, 2007
2007
Parker-Hannifin Corp Annual Report, Year Ended Jun 30, 2007
Parker-Hannifin's fiscal 2007 (year ended June 30, 2007) was a record year. Net sales rose 14.2% to $10.72 billion, driven by higher volume across all segments and acquisitions, with currency adding about $241 million. Net income increased 23% to $830.0 million, and diluted EPS from continuing operations reached $7.01, up from $5.28. Gross margin expanded to 22.8% from 21.5%, though SG&A grew faster (18.3%), and the effective tax rate fell to 28.4%. The company completed 11 acquisitions with roughly $260 million in aggregate incremental annual revenue, and it ended the year with a backlog of about $2.94 billion, 87% of which was scheduled for delivery within twelve months. The outlook is mixed by segment. Management expects continued strength in Industrial International and Aerospace, while Industrial North America (especially automotive, heavy-duty truck and construction) and Climate & Industrial Controls are expected to remain soft. Cash from operations was $955 million, and the company returned capital to shareholders through $433 million of share repurchases and dividends of $1.04 per share. Management also announced a 3-for-2 stock split effective October 1, 2007, and a $500 million accelerated share repurchase in August 2007, funded partly by commercial paper. The key risk flagged in the filing is a legal and regulatory matter involving its Parker ITR subsidiary's marine oil and gas hose business. The company faces a grand jury subpoena in the Southern District of Florida, Japan Fair Trade Commission and European Commission inquiries, and class action antitrust suits alleging price-fixing over at least eight years. The company says it cannot reasonably estimate potential losses. Environmental exposure is also notable, with a reserve of about $17.8 million and an estimated liability range of up to $73.1 million across 34 facilities and several Superfund-related sites.
Aug 29, 2007
2006
Parker-Hannifin Corp Annual Report, Year Ended Jun 30, 2006
Parker-Hannifin's fiscal 2006 (year ended June 30, 2006) was a record year driven by strong industrial demand and acquisitions. Net sales rose 16.3% to $9.39 billion, while net income climbed 11.3% to $673.2 million, or $5.57 diluted EPS (income from continuing operations was $638.3 million, or $5.28 diluted EPS). Growth was broad across all three segments, with roughly half of the sales increase attributable to acquisitions. The company completed 13 acquisitions with aggregate annual revenues of about $983 million, funded largely by $835.98 million in net cash outflows for acquisitions and new debt, and operating cash flow of $955 million (10.2% of sales) comfortably covered capital spending and dividends. Profitability improved meaningfully. Gross margin expanded to 21.5% from 20.8%, and Industrial North America operating margin reached 15.0%. Partially offsetting these gains, the company absorbed $33.4 million of pre-tax stock-based compensation expense following its adoption of FAS 123R, which reduced net income by $21.8 million ($0.18 per share). The effective tax rate rose to 29.1% from 27.8%, and defined benefit pension expense is a continuing headwind, though management expects a roughly $19 million reduction in 2007. Shareholders' equity grew to $4.24 billion, and the debt-to-debt-equity ratio improved to 21.1% from 22.5%. Looking forward, management guided to mid-single-digit sales growth in most segments for fiscal 2007, with Industrial International sales expected to rise about 18%. Key risks highlighted in the filing include foreign operations (about 37% of sales from outside the U.S.), raw material cost pressure, rising interest rates that could slow industrial production, exposure to the automotive market, acquisition integration, and environmental liabilities (reserves of $18.4 million against a potential range up to $71.9 million).
Sep 6, 2006
2005
Parker-Hannifin Corp Annual Report, Year Ended Jun 30, 2005
Parker-Hannifin's fiscal 2005 (year ended June 30, 2005) was a strong year marked by a sharp recovery in volumes and a major step up in profitability. Net sales rose 17.4% to $8.2 billion, driven by higher volume across all segments, roughly one-third from acquisitions and about 15 percent from currency effects. Gross margin expanded to 20.8% from 19.0%, and income from continuing operations jumped 63% to $548 million, or $4.55 diluted EPS. Including the $57 million gain-related discontinued operations income from the Wynn's Specialty Chemical divestiture, net income was $605 million, or $5.02 per diluted share, versus $2.91 a year earlier. Operating cash flow of $872 million (10.6% of sales) was a record, even after $83 million of discretionary pension and benefit contributions. Balance sheet strength improved. The debt-to-debt-plus-equity ratio fell to 22.5% from 24.9%, and the company remains well within its covenant limit of 60%. Management spent heavily on growth: 10 acquisitions with roughly $410 million of combined annual revenue, and about $558 million of net acquisition cash outflow. Goodwill rose to $1.44 billion. Management guides to mid-single-digit sales growth in Industrial North America and Aerospace in fiscal 2006, roughly 10% growth in Industrial International, and double-digit growth in Climate & Industrial Controls, though it flags rising pension expense (an additional $18 million expected), raw material cost pressure, and interest rate sensitivity as headwinds. Risk factors to monitor include a $1.06 billion pension liability on the balance sheet, $819 million of unamortized actuarial losses, and environmental reserves of about $20.6 million against a potential range up to $66.5 million across 31 facilities. Backlog reached $2.36 billion, with 87% scheduled for delivery within twelve months, which supports near-term visibility. The filing also notes that the Astron custom-building business was sold to Lindab AB, closing August 31, 2005, which is a minor divestiture relative to the group.
Sep 2, 2005
2004
Parker-Hannifin Corp Annual Report, Year Ended Jun 30, 2004
Parker-Hannifin's fiscal 2004 10-K (year ended June 30, 2004) shows a sharp earnings recovery. Net sales rose 10.9% to $7.107 billion, driven mainly by higher volume in the Industrial North American and International operations, plus the Denison acquisition and currency effects. Gross margin expanded to 19.2% from 17.2%, and net income nearly doubled to $345.8 million ($2.91 diluted EPS) from $196.3 million ($1.68), with net margin reaching 4.9%. Interest expense fell to $73.4 million as debt was paid down, and the effective tax rate dropped to 30.0% from 34.0% on a capital loss and an IRS audit settlement. Note that the 2004 net income includes a roughly $30 million additional pension expense, and management guides to about $13 million more in 2005. Balance sheet strength improved materially. Total debt fell to $989 million from $1,391 million, reducing the debt-to-debt-equity ratio to 24.9% from 35.6%, well below the 50% covenant. Operating cash flow hit a record $662 million despite $146 million in discretionary pension and benefit contributions. Backlog rose to $2.20 billion from $1.80 billion, with 82.2% scheduled for delivery within twelve months, which supports the company's outlook for higher sales and operating income in fiscal 2005. Shareholders' equity grew to $2.98 billion, and the company has paid dividends for 216 consecutive quarters, with a current annual rate of $0.76 per share. Key risks to monitor include rising raw material costs that may not be recoverable through pricing, persistent pension and health care cost pressure, and environmental remediation exposure, with a reserve of $20.4 million against an estimated range of $20.4 million to $60.4 million across 28 facilities and several off-site sites. Acquisition activity increased, with $200 million in net cash outflow in 2004, and management says more acquisitions are being pursued, which could affect future capital allocation and integration results.
Sep 3, 2004
2003
Parker-Hannifin Corp Annual Report, Year Ended Jun 30, 2003
Parker-Hannifin's fiscal 2003 (year ended June 30, 2003) was a year of modest top-line recovery but mixed profitability. Net sales rose 4.3% to $6.41 billion, driven entirely by acquisitions and currency effects, while underlying demand in North American Industrial and Aerospace markets stayed weak. Gross margin improved to 17.2% from 16.8%, helped by financial performance initiatives and lower business realignment charges ($24.6 million in 2003 versus $37.4 million in 2002). Net income rose 50.8% to $196.3 million, or $1.68 diluted EPS, but this comparison benefits from the non-recurring $39.5 million goodwill impairment in 2002, and the 2003 result absorbed roughly $16.9 million of incremental domestic pension expense. The balance sheet and cash flow picture shows both strength and a notable drag. Operating cash flow fell to $557.5 million from $631.0 million because of a $108.0 million discretionary pension contribution. Management used cash to reduce commercial paper and net debt fell by about $146 million, bringing the debt-to-debt-equity ratio to 35.6% against a 34-37% target. However, the pension funded status deteriorated sharply: the minimum pension liability charge reduced other comprehensive income by $297.5 million after tax, and pension and postretirement liabilities rose 81% to $920.4 million. Shareholders' equity declined to $2.52 billion, and book value per share fell to $21.63. Management guided to flat sales in North American Industrial operations for fiscal 2004, continued weakness in commercial aerospace (OEM and aftermarket), and expected a further $30.0 million increase in domestic pension expense, with additional realignment charges possible. Investors should weigh the earnings recovery against the lack of organic growth, the pension burden on future cash flows and earnings, and the reliance on cost-reduction programs to sustain margins.
Aug 29, 2003
2002
Parker-Hannifin Corp Annual Report, Year Ended Jun 30, 2002
Parker-Hannifin's fiscal 2002 (year ended June 30, 2002) was a sharply weaker year driven by a severe industrial downturn. Net sales rose 2.8% to $6.15 billion, but that increase was entirely due to acquisitions; excluding them, sales fell 9.5%. Gross margin compressed from 20.9% to 16.8%, and net income fell 61.8% to $130.2 million (2.1% of sales), or $1.12 diluted EPS versus $2.96 the prior year. The decline reflected lower volume across Industrial and Aerospace, underabsorption of manufacturing costs, a $39.5 million goodwill impairment, $37.4 million in business realignment charges, and a higher effective tax rate of 40.3% driven by non-deductible goodwill. The balance sheet remained solid. Debt-to-debt-equity rose to 36.8% from 35.7%, operating cash flow improved to $631.0 million from $532.2 million mainly through working capital reduction, and capital expenditures fell to $206.6 million from $334.7 million. Management guided to flat volume in North American and European Industrial operations through the first half of fiscal 2003, with modest improvement in the second half, a continued downturn in commercial aerospace OEM and aftermarket, and about $23 million of additional realignment costs in 2003. Dividends were held at an annual rate of $0.72, extending a streak of 208 consecutive quarterly payments. For investors, the key issues are the depth of the cyclical trough, the margin recovery timeline, and whether the company can keep cash generation and the dividend intact while leverage is near its target range. The filing also discloses a $13.4 million environmental reserve against a potential liability of up to $34.9 million, and it reports no material legal proceedings.
Aug 14, 2002
2001
Parker-Hannifin Corp Annual Report, Year Ended Jun 30, 2001
Parker-Hannifin's fiscal 2001 (year ended June 30, 2001) was a year of top-line growth driven almost entirely by acquisitions, against a sharp deterioration in North American industrial demand. Net sales rose 11.0% to $5.98 billion, but all of that increase came from acquisitions (Wynn's, Invensys pneumatics, Miller Fluid Power/Wilkerson, Commercial Intertech, Gresen), while organic demand fell in heavy-duty trucks, factory automation and machine tools. Net income declined 7.5% to $340.8 million, and diluted EPS was $2.96 versus $3.31 a year earlier. Margins compressed: gross margin fell to 20.9% from 22.3%, and North American Industrial operating margin (excluding realignment charges) dropped to 11.4% from 15.3%. Earnings were partly cushioned by a $55.5 million pre-tax gain on sale of Southern California real property, which flatters the reported figures. The balance sheet took on meaningful leverage to fund roughly $583 million of acquisitions and $335 million of capital expenditures. Debt-to-debt-equity rose to 35.7% from 31.0%, at the upper end of management's 34-37% target, and commercial paper and EUR 300 million Euro Notes funded the deals. Operating cash flow held steady at $532 million, and management stated it does not anticipate additional borrowings in fiscal 2002 for buybacks, capex or working capital. The company also discontinued goodwill amortization under SFAS 142 from July 1, 2001, which management estimates will add roughly $51 million (about $0.44 per share) to fiscal 2002 net income, though goodwill is now subject to impairment testing. Looking forward, management guided to soft North American Industrial volumes through the first half of fiscal 2002, with a recovery expected in the second half, while Aerospace continues to benefit from regional jet and aftermarket strength and the Asia Pacific and Latin American businesses keep expanding. The company also announced it would suspend the planned sale of the Wynn's Specialty Chemical Group and consolidate it from fiscal 2002. Investors should weigh the acquisition-driven growth, the margin pressure in North America, the higher leverage, and the one-time gain that supported fiscal 2001 earnings.
Sep 27, 2001
1996
Parker-Hannifin Corp Annual Report, Year Ended Jun 30, 1996
Parker-Hannifin's fiscal 1996 (year ended June 30, 1996) was a year of strong top-line growth driven mainly by acquisitions. Net sales rose 11.6% to $3.59 billion, with acquisitions contributing nearly 60% of the increase, including the Abex NWL aerospace business and VOAC Hydraulics. Net income grew 9.8% to $239.7 million, and EPS reached $3.23 versus $2.96 in fiscal 1995. Gross margin compressed to 23.1% from 23.8%, as newly acquired operations carried lower margins and integration costs were incurred. Operating income rose 6% to $404.7 million, and the Aerospace segment showed particularly strong momentum with sales up 19.2% and operating margin improving to 13.7%. The balance sheet absorbed a significant acquisition program. Total assets grew to $2.89 billion from $2.30 billion, and long-term debt more than tripled to roughly $440 million, pushing the debt-to-debt-equity ratio to 30.7% from 21.9%. This is near the top of management's 30-33% target range. Operating cash flow improved to $338 million, which covered capital expenditures of $202 million and dividends of $53 million, while acquisitions consumed $366 million. Management said no additional borrowings are expected for capex or buybacks in fiscal 1997, though acquisitions may still be funded with debt. The company also reported a $200 million Abex NWL deal and a $163 million VOAC purchase, and it guided to double-digit growth for the next year. For investors, the key questions are whether acquired businesses can restore margins toward the 1995 level and whether leverage stays within the company's stated range as acquisition activity continues. Backlog reached $1.33 billion, up about 30%, which supports near-term visibility. The company also carries a modest environmental reserve of $9.4 million and reports no material legal proceedings.
Sep 30, 1996
1995
Parker-Hannifin Corp Annual Report, Year Ended Jun 30, 1995
Parker-Hannifin Corporation's fiscal 1995 (year ended June 30, 1995) was a record year. Net sales rose 24.8% to $3.21 billion from $2.58 billion, with acquisitions contributing roughly one-quarter of the growth. Net income more than quadrupled to $218.2 million, or $2.96 per share, from $47.7 million in 1994, which had been depressed by $56.5 million of restructuring, impairment and downsizing charges. Income before extraordinary items reached 6.8% of sales, up from 2.0% in 1994. The improvement reflects a strong North American Industrial recovery, a rebound in European and Latin American industrial markets, and margin gains in Aerospace from prior-year restructuring. Gross margin expanded to 23.8% from 20.3%. The balance sheet strengthened over the year. Shareholders' equity grew to $1.19 billion (book value of $16.10 per share), and the debt-to-debt-equity ratio was 21.9%, within the company's 30-33% target range and below the prior year's 22.7%. Working capital rose to $593 million, though the current ratio slipped to 1.9 from 2.0. Operating cash flow was $240 million, slightly lower than the prior year's $259 million, because inventories and receivables absorbed $139 million of cash to support volume growth. Capital expenditures increased to $152 million, and acquisitions cost $127 million. The company paid dividends for 180 consecutive quarters and raised its dividend for the 39th straight year. It also executed a 3-for-2 stock split in June 1995. Key risks are limited. Aerospace sales were flat and remain a concern, although the segment's margins improved sharply. The company is a Superfund potentially responsible party, with an environmental reserve of $11.4 million against an estimated liability range of $10.7 million to $27.1 million. A $22.4 million deferred tax asset for German net operating losses carries no valuation allowance. Management reports no material legal proceedings and expects to remain a major beneficiary of the North American and international industrial recovery.
Sep 28, 1995
1994-A
Parker-Hannifin Corp Annual Report (Amendment), Year Ended Jun 30, 1994
This is Amendment No. 1 (Form 10-K/A) to Parker-Hannifin Corporation's annual report for the fiscal year ended June 30, 1994, filed December 20, 1994. The excerpt is very limited: the amendment omits pages 2 through 14, and the financial statements, business description, and MD&A are not included. The available text covers the cover page and a fragment referencing a charge recorded in the quarter ended March 31, 1994, to reduce the value of certain long-term assets and to recognize downsizing and relocation activities. Full financial analysis, including revenue, earnings, margins, and cash flow, is not possible from this excerpt. The cover page shows that Parker-Hannifin is an Ohio corporation headquartered at 17325 Euclid Avenue, Cleveland, with Common Shares ($.50 par value) listed on the New York Stock Exchange. The aggregate market value of voting stock held by non-affiliates was $1,958,010,570 as of August 18, 1994, and 48,966,848 common shares were outstanding on that date. The filing incorporates the Annual Report to Shareholders into Parts I, II, and IV and the 1994 Proxy Statement into Part III, so much of the substantive financial detail resides in documents not provided here. For investors, the key takeaway from this excerpt is the restructuring-type charge taken in the March 1994 quarter. The amount, segment impact, and any effect on future earnings cannot be determined from the text provided. Investors should obtain the complete original 10-K and the referenced Annual Report to Shareholders before drawing conclusions about the company's financial performance.
Dec 20, 1994
1994
Parker-Hannifin Corp Annual Report, Year Ended Jun 30, 1994
Parker-Hannifin's fiscal 1994 10-K (year ended June 30, 1994) shows a company whose top line grew but whose earnings fell sharply under the weight of restructuring and asset write-downs. Net sales rose 3.5% to $2.58 billion (5.7% excluding the extra International month included in fiscal 1993), driven by record North American Industrial volume in heavy-duty truck, construction/farm equipment and machine-tool markets. Net income, however, fell 26.8% to $47.7 million ($0.98 per share, versus $1.34 in 1993), because of $56.5 million in special charges: a $35.5 million impairment of long-term operating assets (mainly goodwill in the Aerospace heat-transfer product line), $18.8 million of business restructuring costs, and a $19.6 million loss on disposal of assets, largely idle properties. The effective tax rate jumped to 53.6%, and a $4.5 million extraordinary charge came from early retirement of $100 million of 9.45% debentures. The underlying picture is mixed. The Industrial segment's operating income rose 38.8% and its margin improved to 9.2%, while the Aerospace segment's operating income fell 66.1% and its sales dropped 12.1% as defense and commercial aircraft markets contracted. International (European and Latin American) industrial operations remained loss-making, although losses narrowed. Management expects aerospace markets to decline into 1995 with recovery in 1996, while signaling that International markets may be recovering. The balance sheet strengthened. Debt fell by roughly $181 million (total debt of about $284 million versus $465 million), the debt-to-debt-plus-equity ratio improved to 22.7% from 33.3%, cash declined to $81.6 million, and the current ratio eased to 2.0 from 2.3. Operating cash flow rose to $259 million, and capital expenditures were $99.9 million. The company has paid dividends for 176 consecutive quarters, with the annual rate at $1.00 per share. Share repurchases were ongoing, and management plans no new borrowing in fiscal 1995 except possibly for acquisitions. Recent acquisitions included Telemecanique's electro-pneumatic division and Atlas Copco's automation division, and the company divested its Metal Bellows operations.
Sep 28, 1994