Summary
Parker-Hannifin Corporation's 2009 10-K filing reveals a diversified manufacturer of motion and control technologies serving industrial, aerospace, and climate control markets. Despite a substantial revenue of over $10 billion for the fiscal year ended June 30, 2009, the company is navigating a challenging economic environment characterized by "extended deterioration in worldwide economic conditions and the resulting volatility in and tightening of the capital and credit markets." Management is actively addressing this by adjusting costs, including workforce reductions and salary freezes, to align with changing demand. The company's global operations, accounting for 44% of sales outside the U.S., are subject to various risks including currency fluctuations and geopolitical instability. A significant legal proceeding involves alleged price-fixing and market allocation in its marine hose business unit, Parker ITR, resulting in a substantial fine from the European Commission and ongoing investigations and lawsuits in multiple jurisdictions. While a settlement has been reached for U.S. class action litigation, the full impact of these legal matters remains a key area of focus for investors.
Financial Highlights
55 data points| Revenue | $10.31B |
| Cost of Revenue | $8.18B |
| Gross Profit | $2.13B |
| R&D Expenses | $338.91M |
| SG&A Expenses | $1.29B |
| Operating Income | $1.00B |
| Interest Expense | $112.07M |
| Net Income | $508.51M |
| EPS (Basic) | $3.15 |
| EPS (Diluted) | $3.13 |
| Shares Outstanding (Basic) | 161.56M |
| Shares Outstanding (Diluted) | 162.72M |
Key Highlights
- 1For the fiscal year ended June 30, 2009, Parker-Hannifin reported net sales of $10,309,015,127.
- 2The company operates across three main segments: Industrial (74% of sales), Aerospace (18%), and Climate & Industrial Controls (8%).
- 3A significant legal challenge involves Parker ITR (a subsidiary) facing allegations of price-fixing and market allocation in its marine hose business, leading to a €25.61 million fine from the European Commission and ongoing investigations globally.
- 4The company is actively managing costs in response to adverse global economic conditions, including workforce reductions, salary freezes, and short work weeks.
- 5Approximately 44% of net sales were derived from customers outside the United States, exposing the company to foreign operational risks such as currency fluctuations and political instability.
- 6The backlog at June 30, 2009, stood at $2,885,284,015, down from $3,651,285,185 a year prior, with about 80% scheduled for delivery within the next twelve months.
- 7Research and development costs for fiscal year 2009 were $338,907,820, reflecting ongoing investment in product innovation.