Summary
Parker-Hannifin Corporation, a diversified manufacturer of motion and control technologies, reported net sales of $13.1 billion for the fiscal year ended June 29, 2012. The company's operations are primarily divided into three segments: Industrial (77% of sales), Aerospace (16% of sales), and Climate & Industrial Controls (7% of sales). The Industrial segment serves a wide array of manufacturing, transportation, and processing industries with products like pneumatic and electromechanical components, filtration systems, fluid connectors, hydraulics, instrumentation, and seals. The Aerospace segment focuses on flight control, hydraulic, fuel, and engine systems for commercial and military aircraft. The Climate & Industrial Controls segment supplies systems for refrigeration, air conditioning, and fluid control applications. The company operates globally with a significant portion of its sales (approximately 45%) derived from international markets. Parker-Hannifin's business is characterized by a broad product portfolio, with no single product accounting for more than 1% of total net sales, and no single customer exceeding 3% of total net sales, indicating diversification. The company emphasizes research and development, investing $365.7 million in fiscal year 2012. While the company faces competition across its diverse markets, it believes its core technologies, decentralized structure, global presence, and strong distribution network are key competitive advantages. The company also actively repurchases its shares, demonstrating a commitment to returning value to shareholders.
Financial Highlights
54 data points| Revenue | $13.15B |
| Cost of Revenue | $9.96B |
| Gross Profit | $3.19B |
| R&D Expenses | $365.70M |
| SG&A Expenses | $1.52B |
| Operating Income | $2.00B |
| Interest Expense | $92.79M |
| Net Income | $1.15B |
| EPS (Basic) | $7.62 |
| EPS (Diluted) | $7.45 |
| Shares Outstanding (Basic) | 151.22M |
| Shares Outstanding (Diluted) | 154.66M |
Key Highlights
- 1Total net sales reached $13.1 billion for the fiscal year ended June 29, 2012.
- 2The Industrial segment is the largest revenue contributor, accounting for 77% of net sales.
- 3Aerospace and Climate & Industrial Controls segments represent 16% and 7% of net sales, respectively.
- 4The company operates globally, with approximately 45% of net sales generated outside the United States.
- 5Diversified customer base, with no single customer accounting for more than 3% of total net sales.
- 6Significant investment in Research and Development, with $365.7 million spent in fiscal year 2012.
- 7Company actively engaged in share repurchases, with 1,549,304 shares repurchased in the quarter ending June 30, 2012.