Summary
Parker-Hannifin Corporation, a diversified manufacturer of motion and control technologies, reported $12.7 billion in net sales for the fiscal year ended June 29, 2015. The company operates through two main segments: Diversified Industrial (82% of sales) and Aerospace Systems (18% of sales), serving a vast array of mobile, industrial, and aerospace markets globally. Despite a broad product portfolio, no single product accounted for more than 1% of total net sales, indicating a diversified revenue stream. The company's extensive global presence across 40 U.S. states and 49 other countries, supported by a large network of direct sales employees and independent distributors, positions it to serve approximately 445,000 customers.
Financial Highlights
55 data pointsBeta
Financial Statements
Beta
| Revenue | $12.71B |
| Cost of Revenue | $9.66B |
| Gross Profit | $3.06B |
| R&D Expenses | $403.08M |
| SG&A Expenses | $1.54B |
| Operating Income | $1.84B |
| Interest Expense | $118.41M |
| Net Income | $1.01B |
| EPS (Basic) | $7.08 |
| EPS (Diluted) | $6.97 |
| Shares Outstanding (Basic) | 142.93M |
| Shares Outstanding (Diluted) | 145.11M |
Key Highlights
- 1Parker-Hannifin generated $12.7 billion in net sales for the fiscal year ended June 29, 2015.
- 2The company operates with a diversified business model, with 82% of sales from the Diversified Industrial segment and 18% from the Aerospace Systems segment.
- 3No single customer accounted for more than 4% of total net sales, and no single product contributed more than 1%, indicating low customer and product concentration risk.
- 4The company has a significant global footprint, with manufacturing, service, sales, distribution, and administrative facilities in 40 U.S. states and 49 other countries.
- 5Research and development costs for fiscal year 2015 were $403.1 million, demonstrating a commitment to innovation.
- 6The company's backlog at June 30, 2015, was $3.3 billion, with approximately 81% scheduled for delivery within the next twelve months.
- 7Parker-Hannifin's common stock is listed on the New York Stock Exchange under the ticker symbol 'PH'.
Frequently Asked Questions
Parker-Hannifin operates through two primary segments: Diversified Industrial, which accounted for 82% of net sales in fiscal year 2015, and Aerospace Systems, which accounted for 18% of net sales. The Diversified Industrial segment serves a wide range of mobile, industrial, and processing markets, while the Aerospace Systems segment focuses on commercial and military aerospace applications.
No, the company appears to have low customer concentration risk. The filing states that no single customer accounted for more than 4% of the company's total net sales for the fiscal year ended June 30, 2015. This diversification across a large customer base of approximately 445,000 customers mitigates the impact of any single customer's business fluctuations.
Parker-Hannifin invests significantly in research and development to drive innovation and improve existing products. For fiscal year 2015, R&D costs amounted to $403.1 million. This investment is spread across various development laboratories and testing facilities worldwide, employing a diverse team of scientists and engineers.
The company identifies several key risks, including the impact of global and regional economic conditions, risks associated with its extensive non-U.S. operations (such as currency fluctuations and geopolitical instability), integration risks from acquisitions and organizational changes, IT system disruptions, fluctuations in demand and supply of its products, raw material price and supply volatility, competitive pressures, and potential product liability claims and litigation.