Summary
Parker-Hannifin Corporation's 2014 10-K filing reveals a diversified manufacturer of motion and control technologies, serving both industrial and aerospace markets. The company reported net sales of $13.2 billion for the fiscal year ended June 30, 2014. The Diversified Industrial segment accounted for the majority of sales (83%), serving a broad range of manufacturing, transportation, and processing industries. The Aerospace Systems segment (17% of sales) focuses on commercial and military aerospace markets. Key operational aspects include a global presence with facilities in 40 US states and 49 other countries, supported by a substantial workforce of approximately 57,450 employees. The company emphasizes its strong backlog of $3.9 billion, with most scheduled for delivery within the next twelve months. Research and development spending remained robust at $410.1 million, underscoring a commitment to innovation. While the company operates in competitive markets, it believes its decentralized structure, systems solutions capabilities, global presence, and distribution network are key competitive advantages.
Financial Highlights
55 data points| Revenue | $13.22B |
| Cost of Revenue | $10.19B |
| Gross Profit | $3.03B |
| R&D Expenses | $410.13M |
| SG&A Expenses | $1.63B |
| Operating Income | $1.79B |
| Interest Expense | $82.57M |
| Net Income | $1.04B |
| EPS (Basic) | $6.98 |
| EPS (Diluted) | $6.87 |
| Shares Outstanding (Basic) | 149.10M |
| Shares Outstanding (Diluted) | 151.44M |
Key Highlights
- 1Total net sales for fiscal year 2014 reached $13.2 billion, with the Diversified Industrial segment comprising 83% and Aerospace Systems comprising 17% of sales.
- 2The company holds a significant backlog of $3.9 billion as of June 30, 2014, with approximately 81% expected to be delivered within the next twelve months.
- 3Research and development (R&D) expenditures were substantial at $410.1 million in fiscal year 2014, indicating a strong focus on product innovation and improvement.
- 4Parker-Hannifin operates a global footprint with facilities in 40 US states and 49 other countries, serving approximately 450,000 customers worldwide.
- 5The company has a broad and diversified customer base, with no single customer accounting for more than 3% of total net sales, mitigating customer concentration risk.
- 6Risk factors highlight potential impacts from global economic conditions, cybersecurity threats, product liability, litigation, and fluctuations in raw material prices and demand.
- 7The company repurchased 403,070 shares of its common stock during the three months ending June 30, 2014, as part of its ongoing share repurchase program.