10-KPeriod: FY2011

Parker-Hannifin Corp Annual Report, Year Ended Jun 30, 2011

Filed August 26, 2011For Securities:PH

Summary

Parker-Hannifin Corporation, a global leader in motion and control technologies, reported its fiscal year results ending June 29, 2011. The company generated total net sales of $12.3 billion, with its Industrial segment being the largest contributor at 76% of sales, followed by Aerospace (16%) and Climate & Industrial Controls (8%). The company's diverse product portfolio serves a wide array of industries, with no single customer accounting for more than 3% of total net sales, indicating a well-diversified customer base and reduced reliance on any one entity. Key financial and operational highlights for the fiscal year include a significant increase in backlog to $3.8 billion from $3.1 billion in the prior year, suggesting robust future demand. The company also repurchased a substantial number of its own shares, totaling over 7.2 million shares during the last three months of the fiscal year, demonstrating a commitment to returning value to shareholders. Despite operating in competitive markets and facing various risk factors including economic uncertainty and raw material price fluctuations, Parker-Hannifin maintains a strong global presence and a diversified business model, which are key strengths for navigating the complex industrial landscape.

Financial Highlights

55 data points
Beta

Revenue

$12.35B

24.0% Gross Margin

Net Income

$1.05B

8.5% Net Margin

EPS (Diluted)

$6.37

Total Assets

$10.89B

Cash & Equivalents

$657.47M

Free Cash Flow

$959.64M

Financial Statements
Beta
Revenue$12.35B
Cost of Revenue$9.39B
Gross Profit$2.96B
R&D Expenses$359.46M
SG&A Expenses$1.47B
Operating Income$1.82B
Interest Expense$99.70M
Net Income$1.05B
EPS (Basic)$6.51
EPS (Diluted)$6.37
Shares Outstanding (Basic)161.13M
Shares Outstanding (Diluted)164.80M

Key Highlights

  • 1Generated total net sales of $12.3 billion for the fiscal year ended June 29, 2011.
  • 2The Industrial Segment represented the largest portion of net sales at 76%, followed by Aerospace (16%) and Climate & Industrial Controls (8%).
  • 3No single customer accounted for more than 3% of total net sales, indicating a well-diversified customer base.
  • 4Backlog increased to $3.8 billion at June 30, 2011, from $3.1 billion at June 30, 2010, signaling strong future demand.
  • 5The company repurchased a total of 7,299,423 shares of its common stock during the period April 1, 2011, to June 30, 2011.
  • 6Research and development costs for fiscal year 2011 were $359.5 million.

Frequently Asked Questions

Parker-Hannifin operates through three primary business segments: Industrial, Aerospace, and Climate & Industrial Controls. For the fiscal year ended June 30, 2011, the Industrial segment accounted for 76% of net sales, the Aerospace segment for 16%, and the Climate & Industrial Controls segment for 8%.

Parker-Hannifin has a diversified customer base, with no single customer accounting for more than 3% of the company's total net sales for the fiscal year ended June 30, 2011. This diversification reduces the risk associated with over-reliance on any one customer.

The company's backlog of orders stood at $3.8 billion as of June 30, 2011, an increase from $3.1 billion in the prior year. Approximately 86% of this backlog was scheduled for delivery within the subsequent twelve months, indicating a positive near-term revenue outlook.

Yes, Parker-Hannifin is involved in legal proceedings related to its subsidiary Parker ITR, concerning allegations of price-fixing and bid-rigging in the marine hose market. The company incurred a fine from the European Commission and has appealed it. Additionally, the company is subject to environmental regulations and has reserves for remediation, with potential liabilities estimated between $15.3 million and $72.1 million.