10-KPeriod: FY2013

Parker-Hannifin Corp Annual Report, Year Ended Jun 30, 2013

Filed August 29, 2013For Securities:PH

Summary

Parker-Hannifin Corporation, a diversified manufacturer of motion and control technologies, reported significant global operations in its 2013 10-K filing. With $13 billion in net sales for the fiscal year ended June 29, 2013, the company serves a wide array of mobile, industrial, and aerospace markets. The Industrial segment was the largest contributor to sales, accounting for 76%, followed by the Aerospace segment at 18%, and Climate & Industrial Controls at 6%. Notably, the company announced the consolidation of its Climate & Industrial Controls businesses into the Industrial Segment, effective July 1, 2013, creating two reporting segments (Diversified Industrial and Aerospace Systems) for fiscal year 2014. Parker-Hannifin operates globally with facilities in 40 U.S. states and 48 other countries, serving approximately 452,000 customers. A key highlight from the filing is the substantial investment in research and development, with $406.6 million spent in fiscal year 2013, underscoring a commitment to innovation. The company also demonstrated a proactive approach to capital allocation through share repurchases, buying back 545,243 shares during the reported period. Despite a strong operational footprint, the company faces various risks, including economic uncertainties, competitive pressures, and regulatory compliance, particularly concerning environmental regulations.

Financial Highlights

55 data points
Beta

Revenue

$13.02B

22.5% Gross Margin

Net Income

$948.43M

7.3% Net Margin

EPS (Diluted)

$6.26

Total Assets

$12.54B

Cash & Equivalents

$1.78B

Free Cash Flow

$925.04M

Financial Statements
Beta
Revenue$13.02B
Cost of Revenue$10.09B
Gross Profit$2.93B
R&D Expenses$406.61M
SG&A Expenses$1.55B
Operating Income$1.79B
Interest Expense$91.55M
Net Income$948.43M
EPS (Basic)$6.36
EPS (Diluted)$6.26
Shares Outstanding (Basic)149.22M
Shares Outstanding (Diluted)151.59M

Key Highlights

  • 1Total net sales reached $13 billion for the fiscal year ended June 29, 2013.
  • 2The Industrial Segment was the largest revenue driver, contributing 76% of net sales.
  • 3The company is restructuring into two reporting segments for fiscal year 2014: Diversified Industrial and Aerospace Systems, consolidating the Climate & Industrial Controls business.
  • 4Parker-Hannifin has a significant global presence, with operations in 40 U.S. states and 48 other countries.
  • 5Research and development expenses totaled $406.6 million in fiscal year 2013, reflecting a commitment to innovation.
  • 6The company actively repurchased shares, with 545,243 shares bought back during the fiscal year.
  • 7No single customer accounted for more than 3% of total net sales, indicating customer diversification.

Frequently Asked Questions

For the fiscal year ended June 29, 2013, Parker-Hannifin operated through three primary segments: Industrial (76% of net sales), Aerospace (18% of net sales), and Climate & Industrial Controls (6% of net sales). The company announced plans to consolidate its Climate & Industrial Controls business into the Industrial Segment for fiscal year 2014, resulting in two reporting segments: Diversified Industrial and Aerospace Systems.

Parker-Hannifin has a substantial global footprint, with manufacturing, service, sales, distribution, and administrative facilities in 40 states within the United States and in 48 other countries. The company serves a broad customer base of approximately 452,000 customers across various manufacturing, transportation, and processing industries, with no single customer representing more than 3% of total net sales.

Parker-Hannifin demonstrated a strong commitment to innovation, with total research and development costs amounting to $406.6 million in fiscal year 2013. This investment is crucial for developing new products and improving existing ones to maintain a competitive edge in its diverse markets.

Key risks identified by Parker-Hannifin include uncertainties in global and regional economic conditions, risks associated with its information technology systems, potential product liability claims, litigation and regulatory proceedings, challenges related to organizational changes (acquisitions and divestitures), fluctuations in demand and supply of its products, raw material price and supply volatility, risks related to acquisitions and joint ventures, and the competitive environment. Additionally, the company noted risks related to its significant non-U.S. operations, tax rate changes, and the development of new products and technologies.