Summary
Parker-Hannifin Corporation's 2010 10-K filing highlights a robust business model as a diversified manufacturer of motion and control technologies. The company serves a wide array of industries including industrial, aerospace, and climate control, with a strong global presence across 39 states and 45 foreign countries. Despite operating in competitive markets, Parker-Hannifin demonstrates resilience, with a significant portion of sales derived from replacement equipment, offering a degree of stability. The company's strategic focus on innovation and system solutions, leveraging nine core technologies, positions it well for sustained growth. Financially, for the fiscal year ended June 29, 2010, Parker-Hannifin reported net sales of approximately $10 billion. The company proactively managed its cost structure during a period of global economic uncertainty, which began showing signs of recovery in the latter half of fiscal 2010. Key operational strengths include a decentralized structure enabling quick market response and a broad customer base with no single customer exceeding 3% of total net sales, mitigating concentration risk. While facing competition and potential risks from economic conditions and raw material price fluctuations, the company's diversification and strategic initiatives appear to be effective in navigating these challenges.
Financial Highlights
55 data points| Revenue | $9.99B |
| Cost of Revenue | $7.85B |
| Gross Profit | $2.15B |
| R&D Expenses | $316.18M |
| SG&A Expenses | $1.28B |
| Operating Income | $1.14B |
| Interest Expense | $103.60M |
| Net Income | $554.07M |
| EPS (Basic) | $3.44 |
| EPS (Diluted) | $3.40 |
| Shares Outstanding (Basic) | 160.91M |
| Shares Outstanding (Diluted) | 162.90M |
Key Highlights
- 1Parker-Hannifin reported net sales of approximately $9.99 billion for the fiscal year ended June 29, 2010, showcasing its significant scale in the motion and control technology sector.
- 2The company operates across three main segments: Industrial (74% of net sales), Aerospace (18%), and Climate & Industrial Controls (8%), demonstrating a diversified revenue base.
- 3A broad customer base is served, with no single customer accounting for more than 3% of total net sales, reducing dependency on any one client.
- 4The company maintained a substantial backlog of $3.14 billion as of June 30, 2010, with approximately 85% scheduled for delivery within the next twelve months, indicating strong forward visibility.
- 5Research and development expenses for fiscal year 2010 were $316.18 million, underscoring a commitment to innovation and product improvement.
- 6The company is subject to significant litigation related to its Parker ITR subsidiary concerning alleged price-fixing and market allocation in the marine hose business, resulting in fines and ongoing legal proceedings in various jurisdictions.